Federal Reserve Bulletin, 1976-11

NOVEMBER 1976 FEDERAL RESERVE BULLETIN i -i i ! i i 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN NUMBER 11 • VOLUME 62 • NOVEMBER 1976 CONTENTS 885 Domestic Financial Developments A1 Financial and Business Statistics in the Third Quarter of 1976 A1 Contents 892 New Estimates A2 U.S. Statistics of Capacity Utilization: A58 International Statistics Manufacturing and Materials A76 Board of Governors and Staff 906 Statements to Congress A78 Open Market Committee and Staff; 916 Record of Policy Actions Federal Advisory Council of the Federal Open Market Committee A79 Federal Reserve Banks and Branches 928 Law Department A80 Federal Reserve Board Publications 973 Announcements A82 Index to Statistical Tables 978 Industrial Production A84 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation and Statistical Releases PUBLICATIONS COMMITTEE Lyle E. Gramley Joseph R. Coyne John M. Denkler 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

Domestic Financial Developments in the Third Quarter of 1976 This report, which was sent to the Joint Eco- usually high annual rate of 8.4 per cent in the nomic Committee of the U.S. Congress on No- second quarter to 4.1 per cent in the third. vember 12, 1976, highlights the important de- Nevertheless, expansion in the broader monevelopments in financial markets during the tary aggregates, which include interest-bearing summer and early fall. deposits, continued at a relatively rapid pace; M and M grew at annual rates of 9.2 and 11.6 2 3 The volume of funds raised in financial markets per cent, respectively. Changes in financial increased slightly, on a seasonally adjusted technology that have occurred in recent years basis, from the second to the third quarter of continued to induce the public to place in sav- 1976. However, the supply of credit remained ings deposits some of the transactions and preample, with especially strong flows of funds cautionary balances that would otherwise have through financial institutions, and interest rates been held in demand accounts. In addition, registered modest declines. By early October inflows into time and savings accounts other both short- and long-term market rates of inter- than large certificates of deposit (CD's) est were lA to of a percentage point below strengthened at both commercial banks and their levels of late June, and bond rates gener- thrift institutions as declining open market ally were at or near their lowest levels in 2Vi yields enhanced the attractiveness of these deyears. posits relative to other investment alternatives. Growth in M —currency and demand depos- Large deposit inflows permitted savings and x its held by the public—slowed from an un- loan associations to acquire a record volume of Interest rates NOTES: Monthly averages except for F.R. discount rate and conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; Conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; Aaa utility bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's Investors Service and adjusted to Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality) Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 Federal Reserve Bulletin • November 1976 Yields on U.S. Government securities relative new home mortgages in the third quarter, and to deposit rate ceilings at commercial banks the flow of funds to all mortgage markets comand major thrift institutions bined rose sharply to a 3-year high. Meanwhile, Per cent per annum the growth in total loans and investments of commercial banks picked up from the sluggish pace of the preceding 2 years. Nearly all major Ceilings at S&L's and MSB's components of bank credit—the most notable Yield curve exception being Treasury security holdings— June 30, 1976 grew more rapidly than in the second quarter. Yield curve The outstanding amount of short-term busi- September 30, 1976 ness credit remained essentially unchanged on balance during the third quarter, while public bond offerings by domestic corporations Ceilings at commercial banks dropped more than seasonally. Much of the decline in the issuance of long-term debt reflected a lower volume of public issues by WSmmmsmSBa^mSmm industrial corporations; such firms had made 2 3 4 5 Years to maturity substantial progress in improving their liquidity positions through the funding of short-term debt Deposit ceilings are the maximum interest rates payable on in 1975 and early 1976, and their needs for deposits of varying maturities under $100,000, as determined by the various Federal regulatory agencies. Yield curves are external funds to finance new investment rebased on selected U.S. Government securities yields, all of mained moderate. New stock offerings also which are calculated on an investment basis. TABLE 1 Changes in selected monetary aggregates In per cent, seasonally adjusted annual rates 1975 1976 IItteemm 11997744 11997755 NOTES: Q4 Qi Q2 Q3 1M1 is currency plus private de- Member bank reserves: mand deposits adjusted. Total 6.8 -.2 .6 -3.8 .8 3.0 M2 is Mi plus bank time and Nonborrowed 7.6 3.2 2.7 -3.2 .5 3.0 savings deposits adjusted other than large CD's. Concepts of money1: M M M2 X 3 7 7 5 . . . 1 7 0 1 4 8 1 . . . 3 4 1 9 6 2 . . . 4 4 3 1 9 2 1 . . . 7 7 2 1 1 8 0 2 . . . 4 8 0 1 9 4 1 . . . 1 2 6 l s o a a v M n in s 3 g i a s s n M d b 2 a c n r p e k l d u s i s t d a u e n n p d i o o s n i s t a s s v h a i a n t r g m e s s u . tu an al d M 4 10.6 6.5 6.7 5.4 6.6 5.9 M4 is M2 plus large negotiable M 5 9.0 9.7 9.4 8.4 9.3 9.4 CD's. M5 is M3 plus large negotiable Time and savings deposits at: CD's. Comm la e r r g c e i a C l D b ' a s n ) ks (other than 10.1 11.7 9.8 15.3 12.5 13.2 2 Savings and loan associations, Savings 6.5 17.0 14.4 28.3 21.7 13.4 mutual savings banks, and credit Other time 12.7 8.0 6.6 5.6 5.1 12.7 unions. Thrift institutions2 6.1 15.8 14.2 13.7 14.0 15.4 3 Total member bank deposits plus funds provided by Euro-dollar Bank credit proxy3 9.8 4.3 6.0 2.3 2.4 3.8 borrowings and bank-related commercial paper. NOTE.—Changes are calculated MEMO (change in billions of from the average amounts outdollars, seasonally adjusted): Large CD's 23.4 -5.3 1.9 -6.0 -5.8 -4.6 standing in each quarter. Annual U.S. Govt, demand deposits at all rates of change in reserve measures member banks -1.7 -.2 .5 -.7 .2 .7 have been adjusted for changes in reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1976 887 were lower, and stock prices remained generally Changes in the income velocity of Mj and M 2 unchanged over most of the summer before Percentage rate of change declining slightly late in September. Treasury borrowing increased about season- •20 ally from the second-quarter rate. The Treasury continued to lengthen the maturity of its outstanding debt by financing the third-quarter deficit almost entirely with coupon issues. State and local government offerings of new longterm issues, after adjustment for normal seasonal variation, remained near the heavy volume of the first half of the year. MONETARY AGGREGATES AND BANK RESERVES The quarterly-average growth rate of the narrowly defined money stock, M during the u summer was somewhat below the average pace of the first half of 1976 and brought the growth rate for the first three quarters of the year to 5.1 per cent. The deceleration in the third quarter reflected mainly a very sluggish performance in September when there was a slight absolute Data are at seasonally adjusted annual rates of growth. decline. However, growth of M subsequently x rebounded sharply in October. During Sep- ation in deposit growth at both types of institutember and early October, weekly movements tions accompanied a decline in market rates of in Mi displayed exceptional volatility, ap- interest—especially in the 1- to 4-year maturity parently resulting in some degree from the tran- range—that made interest-bearing deposits at sitory effects of large week-to-week swings in financial institutions more competitive with Treasury deposits at commercial banks and at open market instruments. the Federal Reserve Banks. Preliminary estimates indicate that gross na- The growth rates of M and M decreased tional product (GNP) rose at an 8V2 per cent 2 3 only slightly in the third quarter as the rapid rate in the third quarter; consequently, the inexpansion of the time and savings deposit com- come velocity of M —that is, the ratio of GNP 1 ponents of these measures remained quite to M —increased by more than 4 per cent at x strong. At commercial banks, growth in time an annual rate. The rise in M velocity during x and savings deposits (other than negotiable the current economic upswing has been sub- CD's at large banks), measured on a quarterly- stantially larger than in other postwar recovaverage basis, increased slightly on balance eries, even though short-term interest rates from 12.5 per cent in the second quarter to 13.2 generally have fallen since the cyclical trough per cent in the third. Deposits at savings and (in contrast to the cumulative increases of interloan associations, mutual savings banks, and est rates in most of the upswings in the postwar credit unions advanced at a 15.4 per cent annual period). The income velocity of M , on the other 2 rate during the summer months, a somewhat hand, fell during the quarter and is now roughly higher rate of growth than the 14.0 per cent in line with its historical cyclical pattern. increase of the previous quarter. The acceler- Several factors have contributed to the diver- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 Federal Reserve Bulletin • November 1976 gent patterns of change in these two velocity Components of Major categories of measures over the course of the current recov- bank credit bank loans ery. First, since the mid-1940's the velocity of Change, billions of dollars Mi has tended to rise faster than the velocity TREASURY SECURITIES „ BUSINESS of M , as money holders have continued to 12 2 expand their interest-bearing deposits while •JUL- o LJ economizing on transactions balances that do 4 not pay interest. Second, recent regulatory 1 n» T .. o changes have established several interest-bear- REAL ESTATE OTHER SECURITIES ing alternatives to demand deposits—such as n n n n ,n negotiable orders of withdrawal (NOW) ac- JUL counts and savings accounts for businesses and CONSUMER State and local government units—that may be n n,n n fl n used for transactions balances and that are included in the broader monetary aggregates but NONBANK FINANCIAL not in Mi. In recent quarters, utilization of these financial alternatives continued to spread. Fi- |-J U ^ u u {9 nally, as market interest rates fell to levels near Q3 Q4 Q1 Q2 Q3 Q3 Q4 Ql Q2 Q3 1975 1976 1975 1976 or below the maximum rates allowed on interest-bearing deposits, the time and savings de- Seasonally adjusted. Total loans and business loans adjusted for transfers between banks and their holding companies, posit components of the broader aggregates beaffiliates, subsidiaries, or foreign branches. came more attractive for investment purposes. Both total reserves and nonborrowed reserves of member banks increased at a 3.0 per cent Bank holdings of municipal and other securiannual rate over the quarter. This moderate ties increased significantly in the third quarter, increase in reserves was sufficient to support after declining on balance during the previous substantial growth in the money stock mainly year. The renewed interest by banks in tax-exbecause the volume of large negotiable CD's empt issues probably reflects their stronger outstanding continued to decline, thereby re- profit positions, as well as some dissipation of leasing reserves to support the expansion of the uncertainty surrounding the financial condiother deposits. tion of several State and local units. Holdings of Treasury securities—which have accounted for most of the growth in bank credit in recent BANK CREDIT periods—were unchanged for the quarter, although banks lengthened the maturity of their AND COMMERCIAL PAPER Treasury portfolios. At large banks, for ex- Total loans and investments at commercial ample, acquisitions of coupon issues and a conbanks expanded at a 7 per cent annual rate temporaneous liquidation of bills raised the during the third quarter (on an end-of-month proportion of Treasury securities maturing in 1 basis) as all major types of loans except those year or more to about 60 per cent of total to nonbank financial institutions increased. Treasury holdings at the end of September— Business loans expanded at a 3.5 per cent annual considerably higher than the 50 per cent rate in the third quarter, in contrast to the proportion in late 1975, but still below the 65 declines registered in earlier quarters this year; to 70 per cent range that had prevailed during some of this increase was associated with ac- the preceding decade. quisitions of highly liquid bankers acceptances Although commercial banks lowered the rate in September by large money center banks, on loans to prime borrowers lA of a percentage partly for end-of-quarter statement purposes. point in July and again in late September (to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1976 889 TABLE 2 new mortgage credit at a record pace without significantly eroding their liquidity positions. By Rate spreads and changes in the end of September, moreover, outstanding business loans and commercial paper commitments at these institutions had risen to an all-time high of $22.5 billion. As in previous Change quarters, savings and loan associations domi- RRRaaattteee Busi- Commer- nated the market for conventional home mortsssppprrreeeaaaddd111 ness cial Total AAnnnnuuaall gages. In the Federally underwritten mortgage PPPeeerrriiioooddd (((bbbaaasssiiisss loans2 paper3 rraattee ffoorr pppoooiiinnntttsss))) ttoottaall sector, extensions of credit via purchases of ((ppeerr pass-through securities guaranteed by the Gov- In billions of dollars, cceenntt)) seasonally adjusted ernment National Mortgage Association (GNMA) were the major source of strength. 1975— Together, conventional loans by savings and Q1 .. 237 -2.4 .8 -1.6 -3.2 Q2 .. 170 -4.0 -1.5 -5.5 -11.1 loan associations and acquisitions of GNMA Q3 .. 121 -1.4 -.3 -1.7 -3.5 Q4.. 192 .3 -1.6 -1.3 -2.7 securities accounted for well over three-fourths of the over-all increase in residential mortgage 1976— Q1 •• 194 -3.3 .8 -2.5 -5.3 credit during the summer. Federal and related Q2 .. 171 -1.0 1.9 .9 1.9 Q3 .. 193 1.5 -1.2 .3 .6 agencies sold slightly more mortgages in the secondary market than they acquired, as flows July 196 .8 .1 .9 5.8 Aug. 191 -.3 .1 -.2 -1.3 of funds to private sources of mortgage finance Sept. 191 1.0 -1.4 -.4 -2.6 continued to be strong. 1 Prime rate less 30- to 59-day commercial paper rate. Interest rates on new commitments for home 2 At all commercial banks based on last-Wednesday-ofmortgages in the primary market fluctuated in month data, adjusted for outstanding amounts of loans sold to affiliates. a narrow range around 9 per cent throughout 3Nonfinancial company paper measured from end-of-month to end-of-month. most of the third quarter, but declined somewhat 63A per cent), the spread between the prime rate and the commercial paper rate remained rela- TABLE 3 tively wide. Even so, commercial paper issued by nonfinancial firms declined in the third quar- Net change in mortgage debt outstanding ter, thus offsetting most of the modest increase In billions of dollars, seasonally adjusted annual rates in business loans and leaving short-term business credit outstanding only slightly higher on 1975 1976 balance. Business demands for short-term credit CChhaannggee—— continued to be limited by the moderate size Q3 Q4 Ql Q2 Q3e of external funds requirements and by the pref- By type of debt: erence for long-term financing. Total 63 71 72 75 83 Residential 46 53 56 58 64 Other1 17 18 16 17 19 By type of holder: Commercial banks 3 9 11 9 10 MORTGAGE MARKETS Savings and loans 35 39 36 44 49 Mutual savings banks 3 3 2 3 4 Life insurance cos 2 1 3 (2) 1 Total mortgage debt outstanding rose sharply FNMA-GNMA 5 6 1 -5 (2) during the third quarter. Lending on 1- to 4- Other3 15 13 19 24 19 family homes again accounted for the bulk of 1 Includes commercial and other nonresidential as well as the increase, as the multifamily and nonresi- farm properties. dential components remained weak. 2Less than $500 million. 3 Includes net changes in securities guaranteed by the Gov- Strong deposit growth during the summer ernment National Mortgage Association, some of which may have been purchased by the institutions shown separately. enabled savings and loan associations to extend ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

890 Federal Reserve Bulletin • November 1976 after mid-September. Yields in the secondary public debt offerings, the Board's index of market fell more significantly during the quarter yields on newly issued Aaa-rated utility bonds and in the first half of October, registering a declined during the quarter to 8.29 per cent—the total decline of nearly Vi of a percentage point. lowest level since February 1974. Lower short- Reflecting these declines, the maximum rate term interest rates and changing expectations of permitted on loans insured by the Federal market participants about the course of future Housing Administration or guaranteed by the rate movements may also have contributed to Veterans Administration was reduced from SVz lower corporate bond yields. Average price per cent to 8 per cent on October 18. levels in the stock market fluctuated narrowly during most of the third quarter, but declined Deposits slightly in late September and then more mark- Savings and bans and mutual savings banks edly during early October. 16 TABLE 4 Offerings of new securities issues 8 In billions of dollars, seasonally adjusted annual rates 1975 1976 0 TTyyppee ooff iissssuuee Q3 Q4 QL Q2 Q3 Q3 Q4 Ql Q2 Q3e 1975 1976 Seasonally adjusted quarterly averages at annual rates. Corporate securities: total rrr444777 rrr555000 rrr555222 555333 444555 Bonds 333777 rrr333999 rrr333888 444111 333666 Stock 999 111000 111444 111222 999 SECURITIES MARKETS Foreign securities 777 111000 111222 111000 999 State and local govt, bonds 333666 222666 333333 rrr333555 333555 In the third quarter, gross long-term debt and equity financing by U.S. corporations dropped Estimated. rRe vised. to a seasonally adjusted annual rate of $45 billion from the relatively high $53 billion pace State and local governments continued to that had prevailed over the first half. Most of borrow heavily in long-term markets, at a pace the reduction in gross bond offerings can be little changed from the previous two quarters. attributed to a decline in the volume of public This high volume resulted in part from the issues, especially by prime-rated industrial con- funding of short-term obligations and the acticerns; private placements are reported to have vation of borrowing programs that had been continued at an unusually high level. The de- postponed during the adverse market conditions cline in stock offerings was more evenly distri- that had prevailed during most of 1975 and early buted among industry groups. Many corpora- 1976. Despite the large volume of long-term tions apparently accelerated their long-term fi- borrowing, the Bond Buyer index of tax-exempt nancing plans in the first and second quarters yields declined over the quarter to reach a level when it was widely expected that tighter credit of 6.33 per cent by early October. This reducconditions would prevail late in the year. The tion in yields accompanied a strong demand by funds thus raised, when combined with the institutional investors in general and by propsustained flow of resources generated internally, erty/casualty insurance companies in particular. evidently reduced the dependence of many firms These companies had reduced their acquisitions on external sources of finance during the quar- of tax-exempt securities in 1975, when they ter. experienced financial losses. With a rebound in Partly as a result of the lighter calendar of profits this year, they are again providing a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1976 891 TABLE 5 Federal Government borrowing and cash balance Quarterly totals, in billions of dollars, not seasonally adjusted 1975 1976 IItteemm Q2 Q3 Q4 Q1 Q2 Q3 Treasury financing: Budget surplus, or deficit -12.0 -18.5 -26.6 -22.7 2.2 -12.7 Off-budget deficit1 -2.6 -.8 -2.6 -3.8 -.7 -2.0 Net cash borrowings, or repayments (—) 16.6 23.5 25.9 24.1 9.4 18.0 Other means of financing2 ... -1.0 -1.1 1.2 2.0 -4.0 -.7 Change in cash balance 1.0 2.9 -2.1 -.4 6.8 2.6 Federally sponsored credit agencies, net cash borrowings3 -.1 .8 1.8 .3 .5 1.8 1 Includes outlays of the Export-Import Bank, Pension Ben- 3 Includes debt of the Federal Home Loan Mortgage Corefit Guaranty Corporation, Postal Service Fund, Rural Electri- poration, Federal home loan banks, Federal land banks, Federal fication and Telephone Revolving Fund, Rural Telephone intermediate credit banks, banks for cooperatives, Federal Bank, Housing for the Elderly or Handicapped Fund, and National Mortgage Association (including discount notes and Federal Financing Bank. securities guaranteed by the Government National Mortgage 2Checks issued less checks paid, accrued items, and other Association), and farm credit banks. transactions. significant source of demand for State and local outstanding debt. In the regular midquarter resecurities. financing, the Treasury raised $6.4 billion in net Net borrowing by the U.S. Treasury nearly new cash, largely through a 10-year note sold doubled as the unified budget swung from a by means of a fixed-price subscription offering. modest surplus in the second quarter to a deficit Government spending proceeded at a less-thanof $13.2 billion in the third quarter. Of the total anticipated rate during the transitional quarter $18.0 billion in net new funds raised, only $300 to a new fiscal year, and as a result, the cash million came from the bill market as the Treas- balance advanced $2.6 billion to a record $17.4 ury continued to lengthen the maturity of its billion by the end of September. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 New Estimates of Capacity Utilization: Manufacturing and Materials The Federal Reserve has developed new esti- ity, and capacity utilization covering manufacmates of capacity utilization rates for manufac- turing, mining, and utilities. Capacity utilization turing and for industrial materials.1 The revision rates will then be published for total industrial of the manufacturing series—the first since production and for the major market and in- 1971—has raised considerably the estimates of dustry groupings shown in the IP indexes. The capacity utilization for 1971-76 and lowered basic data to be used in the contemplated system those for 1948-55. The new industrial materials will be the IP indexes and the figures on capacity series, which cover the entire materials grouping utilization rates published yearly by the U.S. in the Federal Reserve's industrial production Bureau of the Census in its Survey of Plant (IP) indexes, are much broader in scope than Capacity. The introduction of such an integrated the formerly published "major" materials system will require some time because the series, but the levels of utilization rates for both Census Bureau did not begin to collect utilizathe new total materials series and the major tion rate data until the fourth quarter of 1973. materials series have generally been similar. Utilization rate figures from two or three more This article describes the new series and ex- Census surveys are needed before it will be plains the methods employed in estimating ca- possible to derive an adequate time series of pacity utilization, presents some statistical find- capacity and capacity use for many individual ings, and provides a tabulation of the historical industries. data. More detailed descriptions of the methodologies for the manufacturing and the materials capacity utilization series will be included in a OVERVIEW publication that is expected to be available in the spring. The analytical importance of capacity utilization Publication of these revised rates of capacity rates and the different views of how they should utilization for manufacturing and materials rep- be measured have led a number of public and resents the completion of an interim step in a private organizations to publish such rates. As major effort to improve the Board's statistical of late 1976 there were six sets of estimates measures of capacity utilization. According to covering all manufacturing and one set covering present plans, these two distinct sets of esti- industrial materials.2 Four of these series have mates will be replaced in the future by a single been introduced in the last 3 years—indicating integrated system of measures of output, capac- a growing interest in measures of capacity utilization. NOTE.—Richard D. Raddock and Lawrence R. Forest of the Board's Division of Research and Statistics prepared this article. 2 The seven capacity utilization series include the 1A11 Federal Reserve utilization rates in this article materials series published by the Board of Governors are derived from seasonally adjusted industrial produc- of the Federal Reserve System (Federal Reserve) and tion indexes. the six manufacturing or total industrial series pub- Current estimates for total manufacturing and ad- lished, respectively, by McGraw-Hill Publishing Comvanced and primary processing are published in the pany; Wharton Econometric Forecasting Associates; the Federal Reserve statistical release " Capacity Utilization Federal Reserve; the Bureau of Economic Analysis in Manufacturing" (E.5). The nine materials series, (BEA) and the Bureau of the Census of the U.S. which were introduced in July, are shown on page 3 Department of Commerce; and Rinfret-Boston Assoof the 4 4 Industrial Production" statistical release ciates. Publication of the Federal Reserve series for (G.12.3). Selected series will be published in the BUL- materials and of the BEA, Census, and Rinfret series LETIN each month. has occurred only during the past 3 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 893 1. Output, capacity, and utilization Ratio scale, 1967 output=100 MANUFACTURING MATERIALS Capacity Capacity Output Output Per cent Seasonally adjusted quarterly data. This heightened interest can be attributed in versally accepted definitions nor comprehensive part to a concern that shortages such as those tabulations of capacity for the production faciliin 1973-74 might reoccur as the economy ties of the economy, timely utilization rate estimoves closer to full utilization of capacity. This mates have to be developed from the limited concern has been aroused by reports that esca- data that are available. lating costs of expanding capacity have made Some of the available utilization rate series it too expensive for private enterprise to allevi- —such as the BEA series published by the ate the bottlenecks that were evident in the Department of Commerce—are based solely on 1973-74 period. Those bottlenecks were con- company surveys in which businessmen are centrated in the basic materials industries. asked to provide estimates of their operating Among the many materials reported in short rates as a per cent of capacity. One series is supply were metals, petrochemicals, fuels, based almost entirely on the Federal Reserve paper, and cotton. It may be noted, however, indexes of industrial production.4 Monthly estithat the current levels of the Federal Reserve's mates published by the Federal Reserve and by utilization rate series for materials do not indi- the McGraw-Hill Publishing Company combine cate that capacity to produce industrial materials information that is obtained from monthly prois a constraint on production at the present time. duction indexes and from less frequent utiliza- Differences among the various estimates of tion rate surveys. industrial utilization rates are indicative of the Each of the utilization rate estimates that basic problems in measuring capacity. These the Board publishes is calculated by dividing differences can be explained largely in terms of an IP index, seasonally adjusted, by a related the different methods that are used to quantify estimate of capacity (Chart 1). In our view, this such elusive concepts as capacity and capacity procedure has two advantages: (1) It provides utilization.3 Inasmuch as there are neither unithat a plant can achieve within the framework of a realistic work pattern, assuming a normal product mix and an expansion of operations that can be reasonably 3 The Federal Reserve generally accepts the concept attained in the particular locality and considering only of capacity implicit in the various surveys of utilization equipment in place. rates. For the most part it is thought that a concept 4 In deriving the Wharton index of capacity utilizaof practical maximum capacity is used by most respon- tion, industry utilization is calculated as the ratio of dents to surveys. For example, the Census Bureau the current production index to a trend through the major defines practical capacity as the greatest level of output peaks in the production index for an industry. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 Federal Reserve Bulletin • November 1976 more current estimates of utilization rates than lated and extrapolated series (Chart 1) are based do existing surveys because the IP indexes are in part on estimates of deflated capital stocks available monthly about 15 days after the end that are derived from investment expenditure of the month; and (2) the estimates appear to data adjusted for estimated scrappage of old reflect the cyclical movements in production equipment. In other words, the Federal Remore accurately than do rates based solely on serve's capacity estimates reflect long-term proavailable surveys of business judgments of uti- duction trends, businessmen's judgments conlization rates. cerning the degree of utilization of their facili- The Board's derived utilization rates have two ties, and the pattern of real investment over the general properties: (1) The cyclical movements course of the business cycle. These estimated approximate those of the IP indexes with the capacity indexes appear to be reasonably good growth trend removed; and (2) the average measures of production capabilities over time, levels of utilization rates over time and the but they should not be considered to be accurate long-term movements in such rates are deter- indicators of short-term changes in capacity. mined primarily by the estimates of utilization The estimates of manufacturing capacity are rates as reported in various surveys. It should based primarily on the IP indexes and the Mcbe noted that the Federal Reserve conducts no Graw-Hill survey of utilization rates. Estimates surveys either of capacity or of capacity utiliza- of materials capacity too are based on IP indexes tion rates. In fact, there are no comprehensive but in this instance the utilization rates used are surveys that collect consistent capacity and pro- derived from data published by various trade duction data, although such data exist for some associations such as the American Iron and Steel basic commodities. In deriving the Board's uti- Institute or data collected and published by the lization rate series, capacity indexes are esti- Census Bureau in its Survey of Plant Capacity mated indirectly in a manner that makes them (actually a survey of utilization rates). Thus, generally consistent with IP indexes and with although they are constructed in much the same independently conducted surveys of capacity way, the estimates of manufacturing and of utilization rates. This consistency cannot always materials capacity are partially independent of be maintained in the short term because the each other because they depend on data obtained short-term movements in IP and in the utiliza- from different surveys. Moreover, the estimates tion survey data often differ, but it is achieved differ because of coverage: Manufacturing enon average over time. compasses finished products as well as most The over-all levels and the long-term move- industrial materials, but some materials are proments of the Federal Reserve capacity estimates duced by mines or utilities that are not part of are determined primarily by production indexes manufacturing. divided by utilization rate data as reported in For the period since 1955 the method of various surveys. The resulting IP/utilization rate calculating the revised utilization rates for manratios are then combined into capacity time ufacturing—including the subtotals for primary series that are smoothed to eliminate frequent and advanced processing industries—is much irregularities.5 The relatively smooth interpo- the same as that used when the series were introduced in the BULLETIN in November 1966, 5 There are a number of possible sources of the except that the revisions have been calculated inconsistencies between movements in IP indexes and in more detail. Nevertheless, the use of Mcin survey-based utilization rates that cause the observed Graw-Hill survey data available since the last irregularities in the IP/utilization rate ratios. For exrevision in 1971 and of newly revised IP indexes ample, the utilization rate data may be based on relatively small samples of companies while the production has resulted in the re-estimation of manufacdata are usually establishment- or product-based. In addition, there may be a lack of correspondence between the time periods covered by the two sets of data. contain an element of guesswork and that some respon- Moreover, in our opinion, the recessionary cutbacks in dents view a temporary plant shutdown as a loss in capacity sometimes implied by the IP/utilization rate capacity. Treating a temporary shutdown as a loss in ratios are unrealistic. Although it is conceivable that capacity understates true production capabilities, as some small reduction in over-all capacity may occur most shutdown plants are likely to be reopened in the in a recession, it is likely that the survey "judgments" next expansion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 895 1. Capacity utilization series Rates (in per cent) 1967 Series Value-added proportion 1973 1975 1976 of total IP Average Monthly Monthly Q3 for period high low 1955-75 Manufacturing 87.95 83.2 88.0 69.6 80.9 Advanced processing 57.36 82.3 85.4 70.5 79.3 Primary processing 30.59 85.0 93.6 67.8 82.4 1967-75 Materials 39.29 85.9 93.1 69.7 81.3 Durable goods materials 20.35 82.7 92.5 64.3 78.3 Basic metal materials 5.57 86.4 97.7 66.1 81.7 Nondurable goods materials ... 10.47 88.1 94.6 67.8 85.2 Textile, paper, and chemical 7.62 87.6 94.5 65.5 84.1 Textile materials 1.85 87.6 94.4 58.0 81.9 Paper materials 1.62 93.8 100.5 71.8 90.2 Chemical materials 4.15 85.6 93.8 64.7 83.0 Energy materials 8.48 91.4 94.6 82.7 84.4 turing capacity and in substantial upward revi- though the estimates for 1948-54 are believed sions in manufacturing capacity utilization for to have been improved considerably, it should the period since 1970. be recognized that they are inherently less firmly In addition, methodological changes have re- based than those for later periods for which the sulted in new manufacturing capacity extrapo- McGraw-Hill data for utilization rates in manulations for the 1948-54 period. The capacity facturing are available. estimates prior to 1955 can be derived only by Table 1 includes 1967 value-added proporextrapolating backward in time because Mc- tions (total IP = 100) for the published series for Graw-Hill made no surveys of company utiliza- manufacturing and materials and their compotion rates prior to year-end 1954. In the old nents. The nine series for materials include all series capacity had been extrapolated backward 96 detailed materials series in IP; as the table almost exclusively on the basis of capital stock shows, they represent about two-fifths of value data using the relationship between capacity and added in manufacturing, mining, and utilities, capital observed after 1954. In this revision whereas the old major materials represented less capacity extrapolations are based on capital than one-tenth of industrial value added.6 stock estimates that have been retrended to Within manufacturing, the advanced and prireflect the results of an analysis of pre-1955 data mary processing groupings are aggregations of relating to production peaks in various industries all two-digit SIC groupings of manufacturing and of physical unit output and capacity data industries, which represent about nine-tenths of for certain materials. This analysis indicated that industrial value added.7 the previously published figures for utilization rates had been too high and hence that the 6A detailed listing of the components of materials (for previous estimates of capacity had been too low. further industrial processing) will appear in the forth- The figures in Table 3, presented in the section coming Industrial Production, 1976 Edition. An apon "Statistical Findings," show that the old proximate listing is presently available in Industrial Production, 1971 Edition; however, the new grouping major materials series, which is based on physfor energy materials has been significantly expanded ical output and capacity data, support the new from the industrial fuel and power series previously primary processing figures and show that the shown. 7Advanced processing includes the following indusrevisions in advanced processing are similar in tries: food, tobacco, apparel, furniture, printing, chemmagnitude to those in primary processing. Al- ical products such as drugs and toiletries, leather, ma- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

896 Federal Reserve Bulletin • November 1976 2. Comparison of utilization rate series Per cent % t f t « i i i t * * t t < t i » i i i i i t t i f t i 1948 1952 1956 1960 1964 1968 1972 1976 Seasonally adjusted quarterly averages. Major materials (old) utilization rates are based on the IP indexes available prior to the July 1976 revision. The new estimates of capacity to produce justment had been made to the former major industrial materials reflect not only increased materials, and none has as yet been made to coverage but also adjustments that serve as a the revised manufacturing estimates.9 means of converting the initial estimates of Two factors in particular have affected the "peak-load" capacity into estimates that better new estimates of capacity utilization rates for represent annual productive capacity.8 The re- materials: One is that the new series include sult of these adjustments has been to reduce many processed materials that typically have estimated capacity relative to output and to raise lower utilization rates than the major materials. final estimates of utilization rates. No such ad- The other is that they incorporate data from the Census survey, which covers smaller plants; such plants tend to have lower utilization rates chinery, transportation equipment, instruments, miscellaneous manufacturing, and ordnance. than the large companies reporting to McGraw- Primary processing, which incorporates many of the Hill. For the materials series the effects of same manufacturing industries that are represented in increased coverage of establishments are apmaterials, includes textiles, lumber, paper, industrial chemicals, petroleum refining, rubber and plastics, proximately offset by the adjustment for annual stone, clay and glass, and primary and fabricated capacity, so the over-all level of capacity utilimetals. zation in the new total series, as shown in Chart 8 The adjustments were made in an attempt to remove 2 (and Table 3), is almost the same as for the from the (industrial production/survey operating rate) ratios the amount of indicated capacity that could not former major materials series and the new pribe realized (economically) over the course of a year mary processing series. because of seasonable variability in attainable production. The adjustments to an annual capacity concept were based on the maximum monthly seasonal factors of the associated production series in those cases where it was judged that the original estimates represented STATISTICAL FINDINGS measures of peak-load capacity. In most cases the conversions to annual capacity were based on the fol- For the third quarter of 1976, capacity utilizalowing: tion in manufacturing was 81 per cent, accord- Annual capacity = peak-load capacity (peak ing to the revised estimates shown in Table 1. monthly capacity output/average monthly capacity output) = peak-load capacity + (peak month's output/average month's 9Annual capability adjustments will be made to the output) manufacturing capacity series when the more detailed ~ peak-load capacity/maximum sea- Census survey data are used in deriving the estimates sonal adjustment factor of manufacturing capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 897 Although up substantially from the 1975 low of capacity appears to have been slow by hisof 70 per cent, this rate was still well below torical standards. the 1973 peak of 88 per cent. This reflects the The new third-quarter capacity utilization rate fact that in the 3 years since that peak, manu- for manufacturing is about 7 percentage points facturing capacity has grown by roughly 10 per above the 74 per cent formerly published. As cent whereas over the same period manufac- shown in Chart 3, the new rates for recent years turing output fell 17 per cent to a low in March are progressively higher than the unrevised data; 1975 and has only recently recovered its 1973 the rates for the 1955-70 period are little diflevels. Within the manufacturing sector durable ferent; and those for the 1948-54 period have goods output is still below its 1973-74 peak been lowered. The result is that the range of because of the incomplete recovery in equip- the cyclical peaks in manufacturing utilization ment production. Consequently, recent capacity rates is much narrower than it had been. utilization rates for advanced and primary pro- Not surprisingly, peak rates of utilization in cessing industries and for industrial materials excess of 90 per cent, which occurred in 1953 are below their average levels. Thus there seems and 1966 during the wars in Korea and Vietnam, to be a relatively ample margin of capacity at are somewhat higher than the major peacetime present even though the recent rate of growth peaks in 1955 and 1973. This is primarily be- 3. Manufacturing capacity utilization rates Per cent t i i i i iiiiii—i i t HHHHHHHHiHi 8 wmmmmmmmmmmmmmmmmtmm ADVANCED PROCESSING 100 90- V. / \ New S N—i 80 V/ 70 91V ' i H HI mm H HHHHHH 1 : 1 wmtmm wtmmmmm wm » Wm PRIMARY PROCESSING 1948 1960 1964 1968 1972 1976 Seasonally adjusted quarterly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 Federal Reserve Bulletin • November 1976 cause wartime production led to much higher early post-World-War-II years, capacity growth utilization rates in those advanced processing relative to growth in the private capital stock industries that produce aircraft and other defense may have been reduced by (1) private purchases equipment. of existing capacity from the Government, (2) As described earlier, the use of new data in large-scale expenditures primarily for the purre-estimating the relationships between capacity pose of replacing aging and worn-out equipment and capital for the pre-1955 and the post-1970 that had not been replaced during the Great subperiods led to substantial revisions in esti- Depression or World War II, and (3) an inmated capacity. It appears that during 1947-53 creased rate of substitution of equipment for and 1970-76—both periods that were charac- labor. terized by high inflation rates—constant-dollar investment spending resulted in less capacity PRODUCTS AND MATERIALS The disaggregation of manufacturing capacity 2. Capacity utilization rates utilization rates into primary and advanced proin manufacturing cessing industries is a rough approximation for Three Vintages of Federal Reserve Series1 manufacturing of the finer split of all the IP In per cent indexes into groupings for materials and products.11 The lack of adequate historical informa- Original tion on capacity utilization for more detailed Quarterly 1966 1971 1976 peaks estimates estimates revisions classification has so far precluded a more refined split of the manufacturing utilization rates. 1948 88 94.4 83.9 As shown in Chart 4, capacity utilization rates 1951 96 98.1 88.3 1953 96 98.0 91.3 for primary processing industries show more 1955 91 91.3 88.6 cyclical movement than those for advanced 1960 84 84.1 84.5 processing—just as output of industrial materi- 1966 91 92.3 91.6 als is typically more cyclical than that of prod- 1973 n.a. 83.3 87.8 1976—Q3 .... n.a. 73.6 80.9 ucts. Materials production rises especially rapidly in an expansion because final demand pres- 1 The dates in the column headings reflect the introduction sures from a variety of sources tend to converge of the estimates in the Federal Reserve BULLETIN articles by deLeeuw (November 1966), Edmonson (October 1971), and on metals, chemical materials, and other pri- Raddock and Forest (November 1976). mary products. Moreover, business users tend n.a. not available. to build up stocks of necessary materials during growth than one would have expected based on a boom, when lead times lengthen and comthe relationship among the data for 1953-69. modity prices escalate, necessitating higher This variability indicates (1) how difficult it is production levels. Conversely, in a recession, to make accurate extrapolations of capacity and businesses buy less materials than they use, (2) that revisions of current extrapolations thereby cutting into their stocks and causing should be made more often than in the past. materials output to fall more sharply than mate- In the 1970's significant percentages of in- rials use. vestment expenditures have been devoted to meeting Government safety and pollution con- businessmen to reduce their estimates of practical capacity during the 1973-74 boom. With more normal trol regulations. Such regulations probably price relationships and with more adequate availability caused some reduction in capacity growth per of materials, over-all capacity might appear to grow deflated investment dollar.10 Similarly, in the more rapidly in the next expansion. 11 The materials group includes those industrial goods, such as raw steel, that are used for the most part as 10Capacity is an ambiguous concept and can be inputs by manufacturing and mining establishments and measured only roughly. It is possible that price controls, utilities. Products include primarily consumer goods and devaluation of the dollar, and worldwide hoarding, equipment, but also some intermediate products such which led to shortages of many materials, influenced as fertilizer that are used by nonindustrial firms. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 899 Furthermore, as Table 3 indicates, peak rates primary materials were much higher than those in primary processing are typically higher than for advanced products. In 1973, capacity utilithose in advanced processing. This is in part zation in primary processing (and materials) because of the more varied content of the ad- industries reached a quarterly peak of about 93 vanced processing category, which includes not per cent. In contrast, capacity utilization in only consumer durable and nondurable goods advanced processing industries reached only 85 but also defense and business equipment. The per cent. peaks in these series are often less synchronized In light of the 1973-74 shortages of materials than those for primary processing. For instance, and in light also of the great concern about the auto production often peaks well before equip- shortage of capital for expanding materials cament production, whereas raw steel produc- pacity, it is interesting that—as shown in Table tion—buoyed by inventory demand—is likely 3—both the new primary processing and the old to remain at relatively high levels during a major materials utilization rates at the 1973 peak period that begins with a boom in consumer were rather similar to other major peaks since durable goods and lasts until equipment pro- World War II. This would seem to indicate that duction weakens. If fears of shortages lead to manufacturers have typically not found it profexcessive inventory accumulation during such itable to invest in sufficient materials-producing sustained booms, then many basic materials are capacity to meet both the convergence of likely to reach peaks concurrently. derived demands for materials and the build-up In 1973-74 the absence of war and the of stocks that occur only at important peaks. dispersion of consumer and investor demand More publicity has usually been given to rates held down the utilization rates for advanced of utilization in manufacturing than to such rates processing industries. Moreover, shortages of in materials industries, even though the capacity industrial materials—caused to some extent by to produce various materials is often the most hoarding—probably impeded production further significant constraint on production. Recogdownstream, so that peak utilization rates for nizing the strategic importance of materials ca- 4. Production and utilization by stage of processing INDUSTRIAL PRODUCTION Materials Products CAPACITY UTILIZATION RATES Primary processing Advanced processing Seasonally adjusted quarterly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 Federal Reserve Bulletin • November 1976 3. Capacity utilization rates in primary and advanced processing Old and New Series In per cent Primary processing Advanced processing QQuuaarrtteerrllyy OOlldd mmaajjoorr ppeeaakkss mmaatteerriiaallss Old New Difference Old New Difference 1948 87.1 99.6 88.3 -11.3 91.7 81.7 -10.0 1951 92.9 103.8 93.6 -10.2 95.1 85.5 -9.6 1953 90.0 97.6 92.4 -5.2 98.4 91.1 -7.3 1955 91.1 95.3 93.9 -1.4 89.1 85.6 -3.5 1960 84.3 86.4 86.6 .2 82.9 83.4 .5 1966 93.0 92.9 92.0 -.9 92.2 91.5 -.7 1973 93.5 90.1 93.0 2.9 79.7 85.2 5.5 1976—Q3 e83.0 77.5 82.4 4.9 71.3 79.3 8.0 e Estimated. pacity in limiting over-all industrial production, indicates a reduction in the growth of final the Federal Reserve had previously estimated demand and a very high rate of inventory liquicapacity utilization rates for major materials. dation. Now, the current revision provides more com- Since the 1975 low in economic activity, prehensive estimates for the period since 1967. sales have expanded and manufacturers have As shown in Chart 5, the cyclical movements increased their inventories again. As a result, in utilization were very large in 1973-75. After production of nondurable materials recovered having reached peaks of well over 90 per cent, sharply; in fact, it rose more than output of such rates fell sharply in 1974 in both durable durable goods materials, which has been reand nondurable goods materials. In comparison strained by the slow recovery in equipment with the 1969-70 and other postwar recessions, production. In contrast, production of energy the 1974-75 decline in utilization rates in non- materials has continued weak, reflecting in part durable goods materials was extraordinary. This the effect of higher prices on demand. 5. Capacity utilization rates for industrial materials Per cent Total Nondurable Textile Seasonally adjusted quarterly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 901 6. Capacity utilization, inflation, and unemployment Utilization rate, per cent Annual rate of change, per cent ! 30 Intermediate materials prices- —Primary processing utilization IHHHHHHHHHHHIiiHHiiHHHiiil 11 m • • • • • • • • • • • • • •• Per cent Inverted scale, per cent + Seasonally adjusted quarterly data. The U.S. Bureau of Labor Statistics is the source of the wholesale price and manufacturing unemployment data. Most recently, the recoveries in the output unemployment rates in the manufacturing secof both durable and nondurable goods materials tor. have stalled, leaving the utilization rates at Some of the presently available estimates of levels far below the 1973 peak values. This capacity utilization in manufacturing are shown indicates that materials capacity is not likely to in Chart 7. The Wharton index of capacity be a significant constraint on economic growth utilization is generally the highest because in in the near future unless business investment in that index peak production in major industry plant, equipment, and inventories picks up dra- groups is defined as 100. Most other series, matically. which depend on data reported in surveys, are at a somewhat lower level. The Census Bureau's survey (not shown) yields the lowest rates be- COMPARISONS WITH OTHER SERIES cause it is an establishment survey and includes Relationships between capacity utilization in large plants and also relatively small plants that primary processing industries and prices of in- tend to operate at lower rates. The Federal termediate industrial materials are shown on the Reserve estimates tend to average about the upper panel of Chart 6. It is apparent that there same as those from the BEA and from the is a rough correlation between these two series, McGraw-Hill surveys of relatively large combut that factors other than utilization rates are panies; however, the cyclical pattern of the also important in determining price behavior. Federal Reserve estimates is generally more For instance, the relaxing of price controls dur- volatile than surveys of utilization rates would ing a worldwide commodities boom led to an show. The cyclical patterns of the Federal Reexplosion in prices of materials in early 1974. serve and the Wharton estimates are most alike On the other hand, the lower panel of Chart because IP indexes determine the short-term 6 shows that—as would be expected—the re- movements of both. • vised estimates of capacity utilization in manufacturing are closely and inversely related to Chart 7 appears on page 902. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 Federal Reserve Bulletin • November 1976 7. Manufacturing capacity utilization series Per cent 1952 1956 1960 1964 1968 1972 1976 Seasonally adjusted. Quarterly data except for the once-a-year McGraw-Hill survey. Sources: McGraw-Hill Publishing Company, Wharton Econometric Forecasting Associates, Inc., U.S. Dept. of Commerce (Bureau of Economic Analysis). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 903 Historical Data A. Manufacturing Utilization rate (per cent) Utilization rate (per cent) CCaappaacciittyy CCaappaacciittyy OOuuttppuutt ((ppeerr cceenntt OOuuttppuutt ((ppeerr cceenntt ((11996677 == ooff 11996677 Primary Ad- PPeerriioodd ((11996677 == ooff 11996677 Primary Ad- 110000)) oouuttppuutt)) Total process- vanced 110000)) oouuttppuutt)) Total process- vanced ing process- ing processing ing Quarterly Quarterly 40.7 48.5 83.9 88.1 81.7 1962—Q3 71.8 88.0 81.6 80.7 82.2 41.0 49.2 83.3 88.3 80.5 Q4 72.4 88.7 81.6 81.3 82.0 41.2 50.0 82.5 88.0 79.6 4400..88 50.7 80.4 84.7 78.2 1963—Q1 73.7 89.5 82.3 81.8 82.9 Q2 75.7 90.4 83.8 85.0 83.2 39.5 51.4 76.9 80.3 75.2 Q3 76.2 91.2 83.6 83.6 83.6 38.1 51.9 73.5 74.4 73.2 Q4 77.5 92.1 84.2 84.8 84.0 38.7 52.4 73.8 75.4 73.1 3388..44 52.9 72.4 74.7 71.4 1964—Q1 78.6 93.0 84.5 85.7 84.0 Q2 80.4 94.0 85.5 87.1 84.8 40.4 53.5 75.6 80.7 73.0 Q3 81.8 95.1 86.1 88.7 84.7 43.9 54.1 81.1 87.0 77.9 Q4 83.1 96.1 86.5 89.8 84.9 47.5 54.6 87.0 92.6 83.9 4488..33 55.2 87.5 93.5 84.3 1965— Q1 86.7 97.5 88.9 91.0 87.8 Q2 88.7 99.2 89.4 91.2 88.5 49.3 55.8 88.3 93.6 85.5 Q3 90.8 101.0 89.9 91.7 89.1 49.3 56.4 87.4 93.5 84.1 Q4 92.4 102.7 90.0 90.2 90.0 47.9 57.0 84.1 88.6 81.5 4488..11 57.6 83.5 85.3 82.5 1966—Q1 95.3 104.5 91.1 91.8 91.0 Q2 97.5 106.4 91.6 92.0 91.5 49.2 58.2 84.6 85.5 84.2 Q3 98.9 108.3 91.2 91.9 91.0 48.8 58.9 82.9 79.7 84.9 Q4 99.9 110.2 90.6 90.1 90.9 50.2 59.6 84.2 83.5 84.8 5544..11 60.3 89.8 90.7 89.6 1967—Q1 99.0 112.1 88.2 87.0 88.9 Q2 98.8 114.0 86.6 84.3 87.9 55.4 60.9 91.0 91.3 91.1 Q3 99.6 115.9 85.9 84.7 86.7 56.1 61.5 91.3 92.4 91.0 Q4 102.4 117.8 86.9 86.7 87.0 55.9 62.1 90.0 90.4 89.7 53.1 62.7 84.7 83.5 85.6 1968—Q1 104.2 119.6 87.1 86.9 87.2 Q2 106.0 121.3 87.4 88.5 86.8 51.1 63.3 80.8 79.6 81.6 Q3 106.8 123.0 86.8 87.4 86.7 50.9 63.9 79.7 79.8 79.7 Q4 108.2 124.7 86.8 87.8 86.4 51.0 64.4 79.1 79.7 79.0 5522..66 65.0 80.8 83.3 79.7 1969—Q1 110.1 126.3 87.2 88.9 86.3 Q2 110.6 127.9 86.5 88.4 85.4 55.5 65.7 84.5 88.3 82.4 Q3 112.0 129.6 86.4 88.6 85.2 58.1 66.4 87.4 92.4 84.6 Q4 111.2 131.2 84.8 88.4 82.9 58.8 67.2 87.5 93.4 84.3 6600..22 67.9 88.6 93.9 85.6 1970— Q1 108.0 132.6 81.4 84.7 79.7 Q2 107.2 133.8 80.1 83.1 78.5 60.2 68.7 87.6 92.8 84.6 Q3 106.6 134.9 79.0 82.8 76.9 60.2 69.6 86.5 90.7 84.3 Q4 103.9 136.1 76.3 80.6 74.0 59.3 70.5 84.2 85.0 83.7 6611..66 71.4 86.3 89.2 84.9 1971—Q1 106.3 137,2 77.5 81.7 75.3 Q2 107.6 138.1 77.9 82.9 75.2 62.4 72.1 86.5 88.2 85.7 Q3 108.1 139.1 77.8 81.1 75.9 61.6 72.8 84.6 85.4 84.2 Q4 110.6 140.0 79.0 82.4 77.1 61.6 73.5 83.9 85.3 83.3 58.9 74.2 79.4 80.0 79.2 1972—Q1 114.2 141.1 80.9 85.2 7788..66 Q2 117.3 142.3 82.4 87.2 79.8 55.4 74.8 74.1 72.6 75.1 Q3 119.8 143.6 83.4 88.6 80.6 54.6 75.4 72.4 71.1 73.3 Q4 124.2 144.8 85.8 91.1 83.1 57.4 76.1 75.4 11A 74.4 6600..00 76.7 78.2 80.8 76.9 1973—Q1 127.2 146.1 87.1 91.8 84.5 Q2 129.2 147.5 87.6 92.1 85.2 62.9 77.3 81.4 84.8 79.6 Q3 130.7 149.0 87.8 92.7 85.0 66.0 78.0 84.6 89.5 82.1 Q4 131.8 150.4 87.7 93.0 85.0 63.3 78.7 80.5 77.8 82.3 6633..66 79.4 80.1 79.8 80.4 1974—Q1 130.1 151.8 85.7 90.5 83.0 Q2 131.3 153.1 85.8 90.0 83.4 67.7 80.2 84.5 86.6 83.4 Q3 132.1 154.4 85.5 89.0 83.6 66.0 81.1 81.3 80.9 81.7 Q4 124.1 155.7 79.7 80.4 79.3 64.8 82.1 78.9 78.0 79.6 6633..00 83.0 75.8 73.7 77.2 1975—Q1 111.2 156.8 70.9 69.5 71.5 Q2 112.4 157.7 71.3 70.0 72.1 61.9 83.8 73.8 71.9 75.1 Q3 119.4 158.6 75.3 75.8 75.0 64.5 84.5 76.4 76.5 76.6 Q4 122.5 159.5 76.8 78.1 76.1 66.8 85.1 78.4 80.7 77.4 69.2 85.8 80.6 82.6 79.7 1976—Q1 126.7 160.4 79.0 80.2 7788..22 Q2 129.4 161.3 80.2 81.6 79.3 70.2 86.5 81.2 82.9 80.5 Q3*> 131.2 162.3 80.9 82.4 79.3 70.9 87.2 81.3 81.1 81.8 Seasonally adjusted data. NOTE.—New manufacturing capacity and utilization rate data for the 1948-54 period are extrapolations and are shown in italics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 Federal Reserve Bulletin • November 1976 A. Manufacturing—Continued Utilization rate (per cent) Utilization rate (per cent) CCaappaacciittyy CCaappaacciittyy OOuuttppuutt ((ppeerr cceenntt OOuuttppuutt ((ppeerr cceenntt Period ((11996677 == ooff 11996677 Primary Ad- PPeerriioodd ((11996677 == ooff 11996677 Primary Ad- 110000)) oouuttppuutt)) Total process- vanced 110000)) oouuttppuutt)) Total process- vanced ing process- ing processing ing Monthly Monthly 1973—Jan.. 125.7 145.7 86.3 91.0 83.8 1975- 113.4 156.5 72.5 71.2 72.7 Feb. 127.6 146.1 87.3 92.1 84.7 Feb 110.8 156.8 70.6 69.6 71.2 Mar. 128.3 146.6 87.5 92.2 85.0 109.3 157.1 69.6 67.8 70.5 Apr. 128.3 147.1 87.2 91.8 84.9 110.9 157.4 70.4 68.9 71.3 May 129.6 147.5 87.8 92.3 85.4 111.8 157.7 70.9 69.7 71.9 June 129.8 148.0 87.7 92.1 85.1 114.6 158.0 72.5 71.4 73.1 July. 130.6 148.5 88.0 93.0 85.1 July 117.0 158.3 73.9 73.4 74.2 Aug. 130.4 149.0 87.5 92.6 84.8 Aug 119.7 158.6 75.5 76.0 75.3 Sept. 131.2 149.4 87.8 92.4 85.2 Sept 121.4 158.9 76.4 78.1 75.5 Oct.. 131.6 149.9 87.8 92.6 85.1 121.2 159.2 76.1 77.8 75.3 Nov. 132.0 150.4 87.8 93.6 85.4 122.7 159.5 76.9 78.5 76.1 Dec. 131.9 150.8 87.4 92.8 84.5 Dec 123.6 159.8 77.4 78.1 77.0 1974—Jan.. 130.1 151.3 86.0 91.1 83.1 1976- 125.2 160.1 78.2 78.8 77.3 Feb. 129.8 151.8 85.5 90.2 82.9 Feb 127.0 160.4 79.2 80.8 78.6 Mar. 130.4 152.2 85.7 90.2 83.1 127.9 160.7 79.6 81.0 78.7 Apr. 130.3 152.6 85.4 89.8 82.5 128.5 161.0 79.8 81.2 78.8 May 131.5 153.1 85.9 89.9 83.7 129.6 161.3 80.3 81.4 79.6 June 132.2 153.5 86.1 90.1 83.8 130.2 161.6 80.5 82.1 79.3 July. 132.1 154.0 85.8 89.6 83.6 July 131.0 162.0 80.9 82.1 79.7 Aug. 132.1 154.4 85.6 89.0 83.6 Aug 131.7 162.3 81.2 82.2 79.8 Sept. 132.1 154.9 85.3 88.4 83.5 131.0 162.6 80.5 82.9 78.3 Oct.. 129.5 155.3 83.4 85.6 82.1 Octe 113300..00 116622..99 7799..88 Nov. 124.6 155.7 80.0 81.1 79.8 Dec. 118.1 156.1 75.7 74.4 76.1 B. Industrial Materials Utilization rate (per cent) Output Capacity Durable Nondurable Period (1967 = (per cent 100) of 1967 output) Total Textile, paper, and chemical Energy Total Basic metals Total Total Textile Paper Chemical Quarterly 1967—Ql 99.6 114.1 87.3 86.2 88.2 87.8 87.8 89.4 94.8 84.7 89.5 Q2. 98.4 115.3 85.3 83.2 83.1 87.0 86.1 91.2 91.8 82.2 88.7 Q3. 99.6 116.4 85.5 83.2 82.1 86.2 85.3 90.2 90.8 81.5 90.4 Q4. 102.4 117.6 87.1 84.4 82.4 89.0 88.3 93.0 91.5 85.2 91.3 1968—Ql. 104.2 118.8 87.7 85.9 82.7 88.3 89.0 93.3 92.8 86.0 91.5 Q2. 106.6 120.1 88.8 87.2 87.9 89.9 89.8 93.5 94.7 86.5 91.4 Q3 107.1 121.2 88.4 86.1 85.8 90.9 90.4 92.8 95.6 87.7 90.8 Q4. 108.4 122.5 88.5 86.8 86.7 90.3 89.6 89.6 95.3 87.7 90.4 1969—Ql, 110.6 123.8 89.4 87.9 90.7 91.0 90.5 91.4 96.8 88.3 91.1 Q2, 111.8 124.8 89.6 87.7 90.2 91.2 91.3 91.0 96.8 89.5 92.4 Q3. 113.7 125.8 90.4 89.4 95.0 90.7 90.9 91.6 97.6 88.4 92.2 Q4, 113.8 127.0 89.6 88.2 96.9 89.8 89.7 90.8 97.3 86.8 93.2 1970—Ql. 110.5 128.0 86.3 82.6 89.7 88.2 87.4 87.8 95.7 84.7 93.5 Q2 109.0 129.0 84.5 79.9 87.8 86.5 85.7 85.4 94.3 83.1 93.3 Q3 109.9 130.1 84.5 80.2 89.6 85.8 84.7 84.9 92.4 82.1 94.1 Q4 107.4 131.2 81.9 74.8 84.3 85.4 84.3 86.0 92.4 81.2 95.4 1971—Ql 110.3 132.1 83.5 78.3 84.6 84.7 83.9 84.6 93.7 80.6 94.9 Q2 112.0 133.4 83.9 78.9 85.0 86.0 85.2 86.4 93.9 82.1 94.5 Q3 110.4 134.5 82.1 75.6 74.2 86.9 86.5 87.3 94.8 83.6 92.7 Q4 112.2 135.6 82.8 77.4 76.9 88.1 88.2 87.6 96.7 85.9 89.3 1972—Ql 117.3 136.9 85.7 80.4 82.1 90.0 89.9 88.2 97.3 88.1 93.9 Q2 120.7 138.3 87.3 82.5 86.3 91.4 91.2 89.9 97.6 89.7 94.4 Q3 123.4 139.6 88.4 84.1 88.8 91.8 91.6 90.2 97.9 90.1 94.8 Q4 127.7 141.0 90.6 87.7 92.5 92.8 92.7 91.4 98.8 91.3 94.9 1973—Ql 131.3 142.5 92.1 90.6 95.6 93.9 94.1 92.8 98.4 93.2 93.8 Q2 133.4 144.2 92.5 91.6 97.2 93.6 93.7 92.7 99.5 92.4 93.4 Q3 135.4 145.8 92.9 92.3 97.5 93.4 93.9 93.4 98.8 92.5 94.1 Q4 135.7 147.4 92.1 91.4 96.8 93.7 93.7 93.9 98.2 92.4 92.0 Seasonally adjusted data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Estimates of Capacity Utilization 905 B. Industrial Materials—Continued Utilization rate (per cent) Output Capacity Durable Nondurable (1967 = (per cent 110000)) of 1967 oouuttppuutt)) Total Textile, paper, and chemical Energy Total Basic metals Total Total Textile Paper Chemical Quarterly—Continued 134.6 148.9 90.4 88.5 94.7 94.0 93.6 92.9 97.9 92.5 90.5 134.6 150.3 89.6 87.4 93.9 93.0 93.2 89.6 98.4 92.7 90.3 135.2 151.8 89.1 87.7 92.0 91.4 91.9 84.5 97.0 92.7 89.4 125.2 153.3 81.7 79.9 86.0 81.4 81.0 69.3 89.9 82.1 87.0 110.7 154.8 71.5 66.9 75.2 69.9 67.8 60.1 78.3 67.2 86.8 110.4 156.1 70.7 64.6 67.0 72.4 70.3 70.5 73.5 69.4 85.2 118.2 157.7 74.9 69.0 70.1 79.8 78.2 81.5 81.2 76.5 84.4 122.8 159.2 77.1 70.6 69.4 84.3 83.8 86.2 86.4 82.3 85.2 127.0 160.6 79.1 73.5 72.8 85.6 85.1 84.3 89.1 84.2 85.3 130.3 161.7 80.6 76.2 77.4 85.9 85.0 83.1 90.9 84.0 84.8 132.7 163.1 81.3 78.3 81.7 85.2 84.1 81.9 90.2 83.0 84.4 Monthly 129.9 142.0 91.5 89.6 93.5 93.0 93.4 92.8 98.0 92.3 94.3 131.7 142.5 92.4 90.8 96.3 94.0 94.2 92.4 98.6 93.6 94.3 132.3 143.1 92.5 91.3 96.8 94.6 94.5 93.3 98.7 93.8 92.8 132.4 143.5 92.3 91.3 97.0 93.3 93.5 92.5 98.8 92.3 93.2 133.5 144.2 92.6 91.7 97.4 93.9 93.8 92.4 100.5 92.3 93.2 134.3 144.6 92.9 92.0 97.2 93.6 93.9 93.2 99.3 92.5 93.8 135.1 145.2 93.0 92.5 97.7 93.0 93.7 93.2 99.3 92.2 94.6 135.8 145.8 93.1 92.4 97.4 94.1 94.5 93.6 98.8 93.5 94.0 135.4 146.3 92.5 91.9 97.2 93.0 93.5 93.6 98.3 91.9 93.8 135.2 146.9 92.0 91.2 96.7 93.2 93.4 93.9 98.4 91.8 93.1 136.0 147.4 92.3 91.8 96.9 93.9 93.9 94.4 98.5 92.5 91.2 136.0 147.8 92.0 91.1 96.6 93.9 93.8 93.4 97.9 92.8 91.7 134.9 148.4 90.9 89.6 95.8 94.0 93.9 92.2 97.8 93.3 90.2 134.4 148.9 90.3 88.1 94.5 94.0 93.6 93.5 97.6 92.4 90.7 134.5 149.4 90.0 87.8 93.9 93.8 93.2 92.7 98.4 92.0 90.7 132.9 149.8 88.7 86.4 93.7 93.1 93.0 89.9 98.5 92.3 88.6 135.2 150.3 90.0 87.6 93.5 93.3 93.5 90.3 98.6 92.9 91.4 135.7 150.8 90.0 88.3 94.6 92.5 92.9 88.7 98.2 92.8 91.2 135.4 151.3 89.5 88.1 92.5 92.7 93.1 87.5 97.9 93.4 88.6 134.8 151.8 88.8 87.2 90.3 91.0 91.1 83.6 96.1 92.0 89.9 135.4 152.4 88.8 87.7 93.4 90.6 91.6 82.5 97.1 92.8 89.5 132.4 152.9 86.6 85.4 91.5 87.0 87.3 75.1 93.0 89.5 89.2 125.2 153.3 81.7 80.0 86.6 81.7 80.9 70.3 90.3 81.5 86.1 118.0 153.8 76.7 74.1 80.1 75.5 74.8 62.4 86.2 75.4 85.6 113.7 154.4 73.6 69.9 78.3 71.9 69.9 58.0 82.3 70.0 87.1 110.1 154.8 71.1 66.3 75.7 70.0 68.0 60.2 80.4 67.0 86.3 108.3 155.3 69.7 64.7 71.6 67.8 65.5 62.2 72.4 64.7 86.8 108.8 155.7 69.9 64.6 68.6 70.3 67.7 66.1 71.8 67.1 84.2 109.8 156.1 70.3 64.3 66.5 72.2 70.0 69.9 72.0 69.4 84.3 112.6 156.6 71.8 64.9 66.1 74.6 73.2 75.4 76.7 71.6 86.9 114.5 157.2 72.8 66.6 67.5 76.8 74.6 78.3 78.4 72.6 84.7 119.0 157.6 75.5 69.9 71.9 79.2 77.7 79.4 81.0 76.3 85.7 121.0 158.1 76.5 70.6 70.8 83.3 82.4 86.7 84.3 80.5 82.7 122.0 158.6 76.9 70.5 70.4 83.9 83.2 85.7 85.0 81.9 84.4 123.1 159.1 77.3 70.6 70.2 84.2 83.7 86.3 86.7 82.1 86.1 123.3 159.6 77.2 70.7 67.7 84.7 84.3 86.4 87.5 82.9 85.1 125.3 160.1 78.2 72.1 71.6 84.6 83.8 85.4 87.7 82.2 86.2 127.3 160.5 79.3 74.0 73.8 85.9 85.3 84.0 89.9 84.3 84.6 128.2 160.9 79.7 74.3 72.9 86.3 86.1 83.4 89.8 86.0 85.0 129.2 161.3 80.1 75.4 75.5 86.2 85.6 82.2 90.9 85.2 84.2 130.6 161.6 80.8 76.6 79.1 85.5 84.6 83.7 90.1 83.3 85.2 131.1 162.3 80.8 76.5 77.7 86.0 84.8 83.3 91.9 83.4 84.9 132.2 162.7 81.2 78.5 81.9 84.9 83.8 82.2 90.2 82.6 83.9 132.9 163.0 81.5 78.7 83.3 84.7 83.6 81.3 90.4 82.3 84.5 132.9 163.5 81.3 77.7 79.9 85.9 84.8 82.2 89.9 84.1 84.7 113322..33 116633..99 8800..77 7777..22 8844..88 8833..77 8844..44 Seasonally adjusted data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 Statements to Congress Statement by Arthur F. Burns, Chairman, economic activity has moderated. The gross Board of Governors of the Federal Reserve national product during the past two quarters System, before the Committee on Banking, rose at an average annual rate of AXA per cent, Housing and Urban Affairs, [/.S. Senate, No- and industrial production advanced at a 6V2 per vember 11, 1976. cent rate. Employment continued to move up by W2 million; but there was also a large I am pleased to meet once again with this increase in the labor force, and the unemploydistinguished committee to present the report of ment rate drifted higher over the summer the Federal Reserve Board on the condition of months. the national economy and the course of mone- Indeed, the growth of the civilian labor force tary policy. has been exceptionally large during the past During the first year of recovery from the year, amounting to over 2 million persons. severe recession of 1974-75, the pace of eco- Some pick-up in the rate of growth in the labor nomic growth was rapid. The physical volume force is fairly common during a cyclical recovof total production rose by IV2 per cent. The ery because improving employment opportulevel of industrial production—that is, the out- nities tend to attract men and women into the put of our factories, mines, and power plants— job market. In the present instance, however, increased by 12 per cent. Employment across the persistent pressure on family budgets caused the Nation rose by 2 million, and the unem- by inflation has accelerated the rise in labor ployment rate fell by more than a percentage force participation and has thus slowed the repoint—to IVi per cent. duction of unemployment. At a time of infla- A substantial part of the gain in the gross tion, the cost of living increases for everyone; national product during the first year of recovery the like, however, is not true of incomes. Many was attributable to inventory investment—that individuals are earning no more today than they is, a turnaround from extensive liquidation of did 6 months or a year ago, and some are inventories to a moderate rate of accumulation. earning less. As a consequence, more and more The remaining and basic part of our gross na- households have found it necessary for additional product—that is, the purchase of goods tional family members to work outside the home and services by the consuming public, by our in order to make ends meet. This has been governmental units, by foreigners, and by busi- reflected in a sharp rise during the past year in ness firms apart from their inventory adjust- the proportion of adult women and teenagers ments—grew AV2 per cent in physical terms who are working or looking for work. during the first year. The slowdown in the rate of economic ex- These final sales have continued to advance pansion since last spring has been widely noted, during the past two quarters about as rapidly but it is useful to keep in mind that a roughly as in the initial year of recovery. But inventory parallel development occurred in earlier postwar investment did not add to the growth of physical recoveries. During the previous five cyclical output after the first quarter of this year. upswings, the physical volume of the Nation's In the absence of further stimulus from in- total production rose, on average, by 8 per cent ventory accumulation, the growth of over-all in the first year and 4 per cent in the second. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 907 In those earlier postwar expansions, as in the we have been experiencing, is also under way present one, the diminished pace of expansion in other industrial countries. The inflation that during the second year reflected a reduced stim- played havoc with our economy was worldwide ulus from rebuilding of inventories. in scope, and so was the subsequent recession. Although the broad outlines of the current Businessmen around the world are tending to expansion thus resemble earlier recoveries, be cautious in making major long-term investthere has been a notable difference in the be- ment commitments. Recovery has been slow or havior of the capital goods sector. Expressed only moderate in Germany, France, Japan, and in constant dollars, business outlays for new other industrial nations. Weakness in business plants, machinery, and other equipment typi- capital outlays has been rather widespread, and cally begin to move up at about the same time most industrial countries have experienced a or soon after the upturn in general business pause in economic expansion similar to our activity. Throughout last year, however, these own. outlays either continued to decline or failed to The key to releasing the productive energies rise. Since then, a moderate rate of advance has of our people, as well as the people of other resumed. Nevertheless, business fixed invest- industrial nations, lies in a further rebuilding ment in the third quarter of this year was only of confidence—that is, renewed hope of busi- 2 lA per cent above its physical level in the first nessmen, investors, and consumers in their 3 months of 1975, when general business activ- own and their nation's economic future. That ity reached its trough. At the comparable stage process, I believe, is generally continuing. of previous postwar upswings, business fixed True, some recent surveys in our country suginvestment had risen, on average, by about 15 gest that consumers have of late become someper cent. what more cautious. Yet, they are still adding The sluggish advance of business capital to their purchases of goods and services. The spending in this recovery is a consequence in personal savings rate fell last quarter to 6V2 per large part of the impact of the recession of cent—the lowest level in several years. Rising 1974-75 on the psychology of the business disposable income and the strengthened liquidcommunity. Not many of the current generation ity position of American families should, I of business managers had ever before experi- believe, provide the basis for advances in conenced an economic decline of comparable se- sumer spending over the remainder of this year verity. In recent times, the view has spread in and on into 1977. business circles, as it already had in the aca- In the business sector, too, there are indicademic community, that the old-fashioned busi- tions of a growing willingness to make commitness cycle was dead—that any recession that ments for the future. New orders for nondefense might occur would prove to be brief and mild, capital goods increased in 7 of the first 8 months since governmental policies could be relied of this year; they again increased, by 3 per cent, upon to keep the economy moving forward at in September and are now about 20 per cent a rather steady pace. Businessmen were cer- above their level last December. In recent tainly unprepared for the slump in sales and months, the volume of contracts awarded for production in 1974 and early 1975 that resulted commercial and industrial construction has been from an inflationary process that got out of running well above the average level in the early control and undermined the strength of the months of this year. The formation of new economy. In the aftermath of this hard experi- businesses has continued to grow. Moreover, ence, it should not be surprising that the re- the latest McGraw-Hill survey of investment building of confidence needed for a new surge intentions indicates that businesses plan to inof investment activity has proceeded rather crease expenditures on plant and equipment by slowly. 13 per cent next year. A gradual restoration of confidence, such as Historically, such surveys have tended to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 Federal Reserve Bulletin • November 1976 underestimate capital expenditures when eco- further in Western Europe and Japan. Although nomic activity was expanding. Both corporate our imports will also generally move up in profits and the utilization of industrial capacity response to our own economic expansion, the have improved this year. Under such conditions, beginning of oil flows through the Alaskan business firms are apt to move ahead energeti- pipeline should moderate the rise in oil imports cally with their capital expenditure programs. in 1977. Although such a development has been delayed All in all, it seems entirely reasonable to in the present expansion, the traditional pattern expect a pick-up in the tempo of economic now seems to be emerging, so that business activity in the near future. Certainly, conditions capital outlays should be an important stimulus in financial markets remain conducive to conto economic activity next year. tinued economic expansion. Housing activity has been moving up at a The Federal Reserve has pursued a moderate good pace in recent months, and this should also monetary policy during the course of this rehelp to strengthen the rate of economic expan- covery, seeking to foster financial conditions sion. Some slowdown appears to have occurred that would facilitate a good expansion in ecorecently in the rising price of new homes. This nomic activity without aggravating in any way is an encouraging development in a sector where the troublesome problem of inflation. That is rising costs have squeezed out many potential still our basic policy. buyers. Residential building permits have ad- In my report to this committee last Novanced rather rapidly of late, and are now at vember, I announced the ranges of growth for the highest level in 3 years. New housing starts the major monetary aggregates that the Federal are moving up for both single-family and multi- Open Market Committee had projected for the family units. Sales of new homes are increasing. year ending with the third quarter of 1976. In With mortgage credit in ample supply in practi- the case of M—that is, the money stock defined x cally all parts of the country, a continued ad- so as to include only currency and demand vance in homebuilding activity may reasonably deposits—a range of 5 to IVi per cent was be expected. projected. For M —which also includes time 2 Activity in the major sectors of the private and savings deposits other than large certificates economy thus seems poised for further ad- of deposit at commercial banks—the range was vances. The recovery has proceeded in an or- set at 1V2 to 10V2 per cent; and for M —which 3 derly fashion, and there have been few signs encompasses, besides the components of M , 2 of the speculative excesses that often develop the deposits at savings banks, credit unions, and in the course of a business-cycle expansion. The savings and loan associations—a range of 9 to basic sources of strength underlying the expan- 12 per cent was set. sion of economic activity do not appear to have Looking back over the past year, we find that been weakened by the recent pause in the pace the actual pace of monetary expansion was of expansion. Final sales are still increasing and broadly in line with the specified ranges. During should continue to register good gains in the the year ended in the third quarter of 1976, M 1 months ahead. Some imbalances in inventories grew 4.4 per cent, somewhat below the lower that were a problem earlier this year—particu- end of the projected range. On the other hand, larly in the nondurable goods industries—are M rose 9.3 per cent, a little above the midpoint 2 being corrected. The depressing effect of strikes of its range, while M grew 11.5 per cent, or 3 in the rubber and auto industries on industrial close to the top end of its range. production, employment, and personal income The shortfall in the growth of Mi from the is now behind us, and the recent steep decline projected rate reflects innovations in financial of farm income may also be nearing an end. technology that spread through the financial Furthermore, foreign demand for our exports system more rapidly than we anticipated. For should increase as business activity expands example, the spread of overdraft facilities at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 909 banks has tended to reduce the volume of de- of interest rates during this recovery is the mand deposits held by the public for transac- gradual lessening of inflationary fears and the tions purposes. So also has the growth of Ne- consequent reduction in the inflation premium gotiable Order of Withdrawal (NOW) accounts built into interest rates—particularly the longin the New England region, the development term rates. of telephonic transfers of funds from savings The financial climate that has prevailed during to checking accounts, and the growing use of the recovery has permitted lenders and borsavings deposits to settle monthly bills for utili- rowers alike to strengthen their financial condities, mortgage obligations, and other recurring tion. Commercial banks have rebuilt their liquiitems. Moreover, recent regulatory changes, dity, and the condition of the banking system which permitted commercial banks to accept has been further strengthened through widesavings deposits by business corporations and spread additions to retained earnings and some State and local governments, have resulted in new issues of common stock. a substantial increase in savings accounts. A The liquidity of savings banks and savings significant part of these deposits effectively and loan associations has also improved marserve as transactions balances. kedly. The flow of savings to these institutions The Board's staff has sought to estimate the has remained abundant, and they have continued effect of innovations of this kind on the recent to increase their mortgage lending. Outstanding growth of M. These estimates are necessarily mortgage loan commitments of savings and loan t rough. They suggest, however, that growth of associations—the leading suppliers of home M over the past year would have been 2 per- mortgage credit—are now at the highest dollar x centage points higher—or about 6V2 instead of figure in history. 4Vi per cent—in the absence of these develop- Our Nation's business enterprises have likements. wise taken advantage of the prevailing financial A year ago there was some concern among climate to improve their financial condition. the members of the Congress and other inter- During the past 2 years, corporations have isested citizens that the growth ranges of the sued a huge volume of long-term bonds, and monetary aggregates we had projected would they have used much of the proceeds to repay lead to a marked tightening of credit conditions. short-term debt and to acquire liquid assets. That has not occurred. Interest rates usually Since early this year, many lower-rated firms begin to rise at about the time general business have found a more receptive public market for activity turns up. In the present instance, how- their debt issues, and others have met their need ever, market interest rates have generally re- for long-term funds through private placements mained below their level in the spring of 1975, with life insurance companies and other instituwhen the economic recovery began. Indeed, tional lenders. interest rates on short-term securities are about These accomplishments in financial markets as low now as at any time in the past 4 years. indicate, I believe, that the course of moderation In longer-term markets, yields on high-grade in monetary policy pursued over the past year corporate bonds are about 1V2 percentage points has significantly aided the process of recovery below their level at the beginning of the recov- in economic activity. ery. In fact, they are lower than at any time We at the Federal Reserve remain deeply in the past 2V2 years. concerned about the high level of unemploy- The downward tendency of interest rates dur- ment that still exists in our country. We recoging the current economic expansion stems, in nize the need to regain more prosperous ecopart, from the fact that private credit demand— nomic conditions. We also recognize, as especially the demand by business firms for thoughtful Americans generally do, that lasting short-term funds—has remained moderate. The prosperity will not be achieved until our country main cause, however, of the unusual behavior solves its chronic problem of inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 Federal Reserve Bulletin • November 1976 The inflation that is still damaging our econ- Reserve can now make to the achievement of omy and troubling our people began over a our Nation's basic economic objectives is to decade ago—largely as a consequence of loose adhere to a course of moderation in monetary fiscal policies. During the early 1970's, the policy. With that in mind, the Federal Reserve underlying inflationary trend was aggravated by has made several adjustments over the past year a variety of special factors—poor crop harvests in its projected long-run growth ranges for the here and abroad, a worldwide boom in eco- monetary aggregates. These adjustments were nomic activity, devaluation of the dollar in in large part designed to take account of the international exchange markets, and an enor- changes in financial technology that I discussed mous run-up in the prices of gasoline, fuel oil, earlier, but by pointing gradually downward and other energy items brought on by the Orga- they also moved in a direction consistent with nization of Petroleum Exporting Countries an eventual return to general price stability. (OPEC) cartel. By 1974 the general price level The Federal Open Market Committee has was rising at an explosive rate. now adopted ranges for the year ending in the In 1975 our Nation finally succeeded in re- third quarter of 1977 that differ only a little from ducing the rate of inflation—with the increase those announced last July. For M , the upper x of consumer prices slowing to 7 per cent from boundary of the projected growth range was the 12 per cent rise recorded in 1974. Most of reduced by Vi of a percentage point, so that the this notable progress occurred in the first half new range is 4V2 to 6V2 per cent. This reduction of 1975. reflects the fact that changes in financial tech- Since then, there has been little further im- nology are likely to continue reducing the provement in the underlying rate of inflation. proportion of transactions balances held by the Thus, consumer prices have risen during the public in the form of currency and demand past several months at an average annual rate deposits. Therefore, an increase of M as large x of around 6 per cent, and the advance of as 7 per cent over the next year would not be wholesale prices of industrial commodities has needed to finance a continued good recovery— been still faster. Energy prices are again rising and it might well contribute to a revival of rapidly; since April the cost of energy items to inflationary expectations. The change thus conconsumers has increased at an annual rate of stitutes one more small but prudent step toward 15 per cent. achievement of a monetary growth trend con- Last quarter, the average level of prices of sistent with a gradual return to general price all items included in the gross national product stability. rose less than in the second quarter. This im- For technical reasons, the upper boundary of provement, however, mainly reflected technical the ranges for the broader measures of money factors. With the underlying rate of increase in has been raised by xh of a percentage point. the general price level still around 6 per cent, The projected range for M is now 7V2 to 10 2 inflation continues to erode the purchasing per cent, and for M the range is 9 to IP/2 per 3 power of the wages and savings of our people cent. These adjustments were dictated by the at a disconcerting rate. fact that market interest rates have recently Continued progress in unwinding inflation declined, while those paid by banks and thrift must remain a major objective of public policy, institutions on time and savings deposits (other along with re-establishment of reasonably full than large certificates of deposit) have generally employment and reasonably full utilization of remained at regulatory ceilings. The diversion our industrial capacity. Experience around the of savings funds from market instruments to world indicates that these goals are insepa- deposits at these institutions has therefore been rable—that lasting prosperity cannot be attained unexpectedly large, so that growth rates of M 2 in a highly inflationary environment. and M have of late tended to exceed their 3 The principal contribution that the Federal longer-run ranges. We cannot be sure that these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 911 higher growth rates of M and Af will continue, counter difficulties in handling still larger or 2 3 but there is no reason at present to be seriously more widespread balance of payments deficits. concerned about them. These considerations must be kept sternly in Let me take this opportunity to state un- mind by the political and financial leaders of equivocally once again that further reductions both the oil-exporting and the oil-importing nain the growth ranges of all the major monetary tions. aggregates will continue to be needed if the As we at the Federal Reserve Board now United States is to succeed in unwinding the observe the world scene, there is a clear need inflation that still plagues our economy. We at for expansion in the economies of both the the Federal Reserve are mindful of this basic industrialized and the developing nations. Both consideration. here and abroad, the recovery from the deep In the course of this review of economic and recession of 1974-75 has been incomplete. financial developments, I have tried to indicate The participants in the recent meetings of the that our Nation has made considerable progress International Monetary Fund in Manila wisely over the past year and a half in restoring pros- recognized the dilemma presently faced by ecoperous conditions. Much remains to be accom- nomic policy-makers throughout the world. In plished, however. In recent months the rate of today's environment of deeply ingrained inflaeconomic expansion has been retarded, new tionary expectations, traditional policies of ecojobs have not been created at a sufficient pace, nomic stimulation might well be counterproand unemployment has risen. ductive. Fears of inflation would intensify, and I remain entirely optimistic about our Na- the seeds of another recession may be sown. tion's ability to deal successfully with these As the Interim Committee of the International problems. There are, however, uncertainties at Monetary Fund observed this October, . . the present time that cloud the prospects for a in present circumstances the restoration of a strong recovery of economic activity next year. reasonable degree of price stability will be nec- One concern is the possibility that the pace essary to establish the basis for sustained ecoof inflation may accelerate. Over the past 3 nomic growth and the reduction of unemploymonths, wholesale prices of industrial com- ment." modities have risen at an annual rate of 11 per The Federal Reserve Board continues to becent. Continuation of anything like that rate lieve that structural changes in our economy would erode confidence and induce businesses would enhance the prospects for returning to and consumers to reduce their spending com- reasonably full employment without releasing a mitments. new wave of inflation. Part of our recent prob- A related concern is the threat of a further lem of continuing inflation amidst widespread increase of OPEC oil prices. If the OPEC cartel unemployment stems from a failure to attend raises prices an additional 10 to 15 per cent, sufficiently to modernization and improvement as has been rumored, the adverse effects on the of our Nation's industrial plant. There is a need recovery of business activity could be serious— in our country for a larger volume of business in other countries as well as our own. An capital investment and for greater reliance by increase of that magnitude would add to the business firms on equity funds in financing their strains that have already been brought on in capital expenditures. These objectives could be international markets by the continuance of high promoted by an overhaul of the structure of rates of inflation in numerous countries. Banks Federal taxation. and other private lenders here and abroad may Governmental practices and programs affectbe unable to extend a sizable volume of addi- ing labor markets also have to be reviewed in tional loans to foreign borrowers without going any serious search for lasting measures to reduce beyond the boundaries of prudent management. unemployment. For example, the Federal mini- International financial mechanisms may en- mum wage law is still pricing many teenagers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 Federal Reserve Bulletin • November 1976 out of the job market, and our present programs sector, the monopoly of first-class mail by the for unemployment compensation may be pro- Postal Service, and the mass of governmental viding benefits on such a generous scale as to regulations that impede the competitive process blunt incentives to work. We would also benefit and run up costs for business enterprises. from more effective job banks, more practical There are numerous structural measures betraining programs, and other realistic labor sides those I have mentioned that could aid in market policies. the restoration of general prosperity. For ex- Structural changes in other areas are also ample, there is a large contribution to be made needed to enhance the prospects for expanded by serious efforts on the part of business manemployment, while at the same time reducing agers, trade union leaders, officials of local the pressures on costs and prices. We need to governments, and other public-minded citizens gather the courage to reassess the nature and to work cooperatively together to help train enforcement of our laws directed against re- unskilled workers and find them jobs, to stimustraint of trade by business firms; also the late new businesses in the central cities, to various restrictions on entry into the profes- restore the pride of Americans in their local sions, the wage standards in the Davis-Bacon communities, and to deal on a broad front with Act, the proper role of trade unions in the public the vast problem of urban decay. • Statement by Stephen S. Gardner, Vice Chair- staff papers on economic and monetary policy man, Board of Governors of the Federal Re- implications of EFTS, the cost of the current serve System, at the public hearings of the payments mechanism, the question of sharing Providers Committee of the National Commis- EFT facilities, and other topics will be made sion on Electronic Fund Transfers, November available to the Commission when they are 11-12, 1976. (Although not congressional tes- completed. As you know, we have had under timony, this statement reflects the views of the way a comprehensive appraisal of pricing of and Board of Governors of the Federal Reserve access to Federal Reserve payments mechanism System.) services, and when this work is completed, we shall be pleased to share it with the Commis- Mr. Chairman, members of the Commission, sion. I appreciate the opportunity to present the views Since its origin in 1913, the Federal Reserve of the Board of Governors of the Federal Re- System has been an active participant in the serve System on the important question of the Nation's payments mechanism. Currently, the role of Government in Electronic Fund Transfer Federal Reserve System provides clearing and Systems (EFTS). The Board follows the work settlement facilities for the exchange of payof this Commission very carefully and will ments among depositary institutions in paper benefit from proceedings before the Commission form and on magnetic tape. The System also and hopefully contribute to its deliberations. provides currency and coin services to its mem- The Board's positions on the questions with ber banks and the facilities for the wire transfer which the Commission is concerned are still of reserve account balances and transactions in under development. Board staff papers on some Government securities. A brief summary of the of these questions, for example, consumer System's statutory responsibilities in these areas issues, competitive effects of terminals, and the may be useful. Federal Reserve's current activities in the pay- Prior to the enactment of the Federal Reserve ments mechanism area, have already been for- Act, checks were exchanged in this country warded to the Commission. Additional Board through a system of clearing houses (or ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 913 changes). Often exchange charges were levied important electronic-based substitutes for curby the bank that finally paid the check, and since rency, paper checks, and other traditional forms the checks were not paid in full, the practice of funds transfer. It may be beneficial to clarify was termed "nonpar banking." The exchange the role of the Federal Reserve in automated charge was generally xk of 1 per cent of the clearinghouse operations in order to insure that face value of the check paid, and many banks we are proceeding from a common understandengaged in circuitous routing of checks to avoid ing. such exchange charges. This resulted in check More often than not the term "automated collection being slow, cumbersome, and costly, clearinghouse" has been incorrectly interpreted and the system had an adverse effect on com- as being synonomous with the facilities promerce and economic growth. Sections 13 and vided by Reserve Banks in such operations. 16 of the Federal Reserve Act changed these Rather, the term "automated clearinghouse" relationships because commercial banks were encompasses much more and extends to the required to pay for checks presented to them activities of all of the participants and the many by Reserve Banks at par, and the Reserve Banks operations required in the processing of transfers were authorized to collect the checks of com- from origination to final settlement. The Federal mercial banks. Reserve's role in such operations essentially With respect to currency and coin services, parallels its role in the check-clearing operation Section 16 of the Federal Reserve Act author- except that the payment information is exized the issuance and redemption of Federal changed on magnetic tape in lieu of paper Reserve notes. The Federal Reserve Banks have checks. issued and redeemed such notes since 1914, In ACH operations, financial institutions and, as you know, Federal Reserve notes are create computer tapes of credit and debit items now the primary legal tender in the United based upon customer instructions and deliver the States. On May 29, 1920, the Congress author- tapes to their local Federal Reserve automated ized the Secretary of the Treasury to transfer clearing and settlement facility, just as those to the Federal Reserve Banks the duties and institutions would deliver checks to the Federal functions of the Assistant Treasurers in connec- Reserve's check-clearing and settlement faciltion with the exchange of paper currency and ity. A Federal Reserve computer—which is also coin in the United States (41 Stat. 654). Ac- used for other operational purposes—reads, cordingly, Reserve Banks have been authorized edits, and balances the information on the tapes, and directed by the Treasury to make in all cases sorts according to the receiving financial orgaan equitable and impartial distribution of avail- nization, and makes the credit and debit entries able supplies of currency and coin directly to in member bank reserve accounts for settlement member banks and to nonmember commercial for both the originating and the receiving finanbanks (see 31 CFR 100). cial organization. The System has also provided the facilities When the processing has been completed, the for the wire transfer of reserve account balances computer creates output consisting of magnetic and transactions in Government securities since tapes and descriptive paper listings. The Federal 1915. These facilities are integral to the main- Reserve delivers the output material to the retenance of reserve account balances that are ceiving financial organization, using the same required by the Federal Reserve Act and to courier system that is used for delivering providing a viable Federal funds market. checks. Currently, the System provides the Much of the discussion of the role of the clearing and settlement facilities for such Federal Reserve in an electronic payments operations in 25 offices. It is important to note mechanism has centered on the automated that in this entire process the Federal Reserve clearinghouse (ACH) operations and the point- interacts only with financial institutions for purof-sale system. Both have the potential to be poses of effecting clearing and settlement. All Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 Federal Reserve Bulletin • November 1976 other organizational, operational, and legal re- clearing and settlement facilities for this alterquirements are between the participating finan- native payments arrangement, the Federal Recial institutions and their customers. serve provided the payments mechanism infra- At the invitation of its member banks, the structure that the private sector may not have Federal Reserve System agreed to provide the been organized to provide and assume. And in clearing and settlement facilities necessary for doing so, the System expects to realize econoautomated clearinghouse operations. The two mies both of financial and of real resources. primary factors considered in agreeing to this Federal Reserve provision of automated operational role were (1) the cost savings op- clearing facilities was not intended to preclude portunity that electronic funds transfer provided private sector development and operation of and (2) a consumer alternative to the traditional similar facilities any more than its operation of methods of receiving and making payment. check-clearing facilities preempts correspondent There is very little volume emanating from the or other clearings of paper checks. To the concommercial end of the operation, although trary, two privately operated automated clear- Government volume is increasing quite rapidly . inghouse facilities that have recently been es- In common with other electronic payments tablished use the Federal Reserve's settlement technologies, the automated clearinghouse system and will use its check courier delivery operation must afford customers a level of serv- system. These initiatives, in combination with ice or other reward that they cannot otherwise the announcement in January 1976 (41 FR 3097) obtain, and such benefits must be paid for from to study the basis for pricing System payments cost savings over the paper-based alternative. mechanism services, emphasize the System's If these benefits are realized, I believe that the policy of encouraging private sector alternatives automated clearinghouse operation can be a to Federal Reserve operated automated clearing progressive and cost-effective alternative to the and settlement facilities. paper system. In addition, the automated clear- On the question of a national exchange capaing and settlement facility for these operations bility in the ACH operation, the Federal Reserve is well suited to Reserve Bank participation for System has agreed to cooperate with the Natwo reasons. First, and most importantly, the tional Automated Clearing House Association Federal Reserve System has operated the Na- in a pilot study to test the feasibility of extion's settlement system since 1913. Regardless changing payments among six regions. Five of of how EFTS develops, it is unlikely that mem- these regions use Reserve Bank automated ber banks will choose to duplicate the existing clearing and settlement facilities, and one uses facilities for settlement purposes. The reserve a privately operated clearing facility and the balances of our member banks are turned over local Reserve Bank's settlement and delivery repeatedly each day in transferring funds among systems. Under the pilot test proposal, the Fedmember banks and their customers in making eral Reserve would use its wire network to final settlement for the Nation's commercial transmit the payment instructions contained on transactions. Like check transactions, ACH magnetic tape among the six regions. The autotransactions are also settled among financial mated clearing and settlement facilities would institutions through the reserve accounts of then be used to sort, clear, and settle for the member banks of the Federal Reserve System. payments received by wire. Whether or not the Secondly, and perhaps less importantly, the Federal Reserve System will provide such incheck courier network that is leased by the terchange capability nationwide on a continuing Federal Reserve is also employed in delivering basis will depend upon the Board's appraisal ACH transactions; and our computer systems, of the broad issues concerned with Government installed and used primarily for other purposes, participation in an electronic payments mechaare also used for sorting the payment instruc- nism. As you know, this question was raised tions on magnetic tape. In making available the in the Board's Subparts B and C of the proposed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 915 changes to Regulation J that were published for has been successful in Europe and that such a comment most recently in January of this year system might be accommodated by use of ex- (41 FR 3097). To refresh our memories, Sub- isting facilities. Although some attention has parts B and C would provide the regulatory been given to Giro payments, the industry has framework for two types of funds transfer ac- been much more interested in an electronic tivity. First, they would set forth the rules and mode of payment whereby a customer at a retail procedures—now contained in Reserve Bank establishment would use an electronic terminal operating circulars—for the transfer of reserve to arrange for the instantaneous transfer of funds account balances on our wire network, an ac- from the customer to the retailer—what has tivity we have been performing on behalf of our become known as the on-line-point-of-sale sysmember banks since 1915. Secondly, the sub- tem. While interest has focused on the on-lineparts would establish the regulatory framework point-of-sale system, off-line systems that accufor the automated clearing and settlement of mulate information concerned with financial payments exchanged on magnetic tape nation- transactions for batched processing, clearing, wide. and deferred settlement are beginning to receive In essence, the proposed subparts would de- serious consideration. An off-line system apfine the rights of payors, payees, and their pears to offer most of the advantages of the banks, and are intended to provide uniform and on-line system, including consumer convenmutual protection from unauthorized transfers. ience, at substantially reduced costs. Moreover, In the broadest sense, the subparts would require such a system would accommodate the debiting financial intermediaries to manage their respon- of consumer accounts on a schedule paralleling sibilities to their customers and to other financial the current paper-based payments mechanism— institutions in the payments mechanism. The while providing for simultaneous settlement subparts are not conceptually different, there- among the financial institutions. fore, from the Board's current Regulation J The role of all participants in an electronic concerning transactions with paper checks. The payments mechanism is, as yet, unclear. As I current Regulation J reinforces the Uniform have stated earlier, the Federal Reserve has not Commercial Code, a system of law that required arrived at specific positions on questions related nearly 10 years to draft and pass the various to its role in the electronic payments mechanism State legislatures. As you know, the Board has and has been studying this issue for some time. given extended and continued consideration to In determining its role, the Board will consider proposed Subparts B and C and has invited such factors as competitive developments in the extensive public comment, including that of this electronic payments mechanism, the positive Commission. However, the Board has not made encouragement of the private sector, the presera final determination in this matter, and we look vation of consumer options and the willingness forward to receiving the views of this Commis- of the private sector to innovate and provide sion. services beneficial to consumers, the preser- We are monitoring other developments. For vation of equity among classes of financial inexample, we are cognizant that a Giro1 system stitutions, and the maintenance of a viable and efficient payments mechanism. • 1 Giro is the term used to describe the credit transfer payment system in use in European countries. Instead tor. As a result, the financial institution initiates a credit of sending a check to a creditor, a consumer provides transfer on behalf of the consumer and debits the conhis financial institution with instructions to pay a credi- sumer's account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON SEPTEMBER 21, 1976 1. Domestic Policy Directive The information reviewed at this meeting suggested that growth in real output of goods and services in the third quarter had remained close to the pace in the second quarter, now indicated by revised estimates of the Commerce Department to have been at an annual rate of 4.5 per cent. The rise in the fixed-weighted price index for gross domestic business product in the third quarter also appeared to have changed little from that in the second quarter, now estimated by the Commerce Department to have been at an annual rate of 5.2 per cent. Final purchases of goods and services appeared to have increased more rapidly in the third quarter than in the second. According to staff estimates, however, growth in real output had been restrained by adjustments in business inventory investment in response to the slackening in the expansion of consumer spending during the second quarter and to an accumulation of inventories of nondurable goods to levels in excess of those desired. Staff projections suggested that growth in real GNP would pick up somewhat in the fourth quarter and would remain at a good rate well into 1977. The projections also suggested that average prices would continue to rise at about the recent pace. The index of industrial production, which after revision showed a somewhat larger increase in July than had been indicated a month earlier, continued to expand in August. In the 2 months—and also over the 5-month period April through August—the over-all production index rose at an annual rate of about 6 per cent, compared with a rate of about 12 per cent over the first 3 months of the year. In August, as in the preceding 4 months, output of nondurable goods was about unchanged, reflecting the earlier build-up in inventories and the sluggishness of consumer spending for such goods in the second quarter. Among durable goods, output of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 917 materials, construction supplies, and business equipment continued to rise; output of automotive products and other consumer goods was about unchanged. Retail sales rose vigorously in August after having changed little on balance from April through July. Gains were widespread and were largest among stores selling automobiles, furniture and appliances, and other goods for which consumers may exercise considerable discretion in their spending decisions. Sales of new automobiles in August, at an annual rate of 10V2 million units, equaled the levels reached in April and June, even though some of the popular 1976 models were in short supply. Sales of domestic models apparently rose further in early September. Payroll employment in nonfarm establishments, which had risen substantially in July after 2 months of little change, rose appreciably further in August. The number of jobs in manufacturing increased somewhat, but most of the growth continued to be in retail trade, services, and State and local government. As indicated by the survey of households, both total employment and the civilian labor force changed little in August, and the unemployment rate edged up further from 7.8 to 7.9 per cent. Growth in personal income—after having accelerated in July, in part because of a bulge in transfer payments attributable to a cost-of-living increase in social security payments—slowed in August, as growth in transfer payments subsided, income of farm proprietors declined, and expansion in wage and salary payments moderated. Nevertheless, total personal income in August was nearly 10 per cent higher than a year earlier. The latest Department of Commerce survey of business plans for plant and equipment expenditures in 1976, conducted in late July and early August, indicated a 7.4 per cent increase over outlays in 1975—almost the same year-to-year increase as had been indicated by the survey taken in May. Actual expenditures in the second quarter appeared to have fallen short of the expectations recorded in the earlier survey, but plans for the rest of 1976 called for larger increases than had been the case in May. A strengthening in the outlook for plant and equipment outlays was suggested by monthly indicators. New orders for nondefense capital goods rose by an unusually large amount in July, marking the seventh consecutive month of advance. While orders in real Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 Federal Reserve Bulletin • November 1976 terms were still below the pre-recession peak in the summer of 1974, they were substantially above the level of last December. In July unfilled orders for such goods showed the first significant increase of the current business expansion. Contract awards for commercial and industrial buildings—measured in terms of floor space—edged down in July, but the trend of awards had been upward since the beginning of the year. Private housing starts declined in July but then rose by a somewhat larger amount in August; the average for the 2 months was slightly above the rate in the second quarter. Residential building permits increased in both months, and the average rate for the 2 months—the highest since the first quarter of 1974—was up substantially from the second-quarter rate. Throughout the summer months mortgage terms changed little, and sales of both new and existing houses were relatively strong. In July outstanding mortgage commitments at savings and loan associations advanced to a near-record level. Furthermore, some support for residential construction in the period ahead was provided by release of the remaining $2 billion in GNMA funding to purchase mortgages on multifamily structures at yields below market interest rates and by enactment of legislation that revised and extended authorization for several FHA subsidy programs. The rise in the index of average hourly earnings for private nonfarm production workers, which had accelerated slightly in July, slowed again in August. Over the first 8 months of this year the rise in the index was somewhat below the rapid rate of increase during 1975. The wholesale price index for all commodities was about unchanged in August, after having risen at a moderate rate in the preceding 3 months. Average prices of farm and food products declined appreciably—reflecting decreases in prices of grains, soybeans, manufactured animal feeds, hogs, pork, and raw cotton that were offset only in part by increases in prices of cattle, beef, and some other commodities. Prices of industrial commodities, as in July, rose at a faster pace than they had earlier in the year. Increases were widespread and were largest for fuels, lumber and wood products, rubber products, and transportation equipment. The consumer price index advanced at an annual rate of 6 per cent in both July and August, the same as the average monthly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 919 rate in the second quarter. Average retail prices of foods increased little in the latest 2 months, while average retail prices of other commodities and of services rose at an annual rate of about 7 per cent. Increases were relatively large for gasoline and other fuels, for apparel, and for used cars. The average value of the dollar against leading foreign currencies remained relatively steady over the 5 weeks between the August and September meetings of the Committee. The dollar declined somewhat against most of those currencies, but it rose against the pound sterling. On September 1 the Mexican peso—which had been pegged to the U.S. dollar at the same rate for 22 years—was allowed to float, and the peso immediately depreciated more than 40 per cent. On September 12 the Finance Minister announced that as long as possible the Bank of Mexico would hold the peso at a rate equivalent to a 37 per cent depreciation against the dollar but that maintenance of this rate did not represent a return to a fixed parity. The U.S. foreign trade deficit rose sharply in July to a level considerably above the average monthly deficit in the first half of the year. The value of exports continued to expand in July, but the value of imports rose substantially more—reflecting sizable increases in the physical quantity of industrial supplies and consumer goods and in prices of coffee. Imports of fuels, which had surged upward in June, changed little in July. Staff projections for the period through the second quarter of 1977 suggested that growth in real output of goods and services would be at a somewhat higher rate than in the second and third quarters of 1976. It was expected that expansion in business fixed investment would accelerate and that business investment in inventories would increase as manufacturers and distributors endeavored to maintain stocks in line with rising sales. It was also anticipated that personal consumption expenditures would grow at a faster rate than they had in the second and third quarters of 1976; that residential construction activity would continue to increase; and that State and local government expenditures would expand at a moderate pace. Total bank credit rose further during August. However, most of the increase was associated with the Treasury's huge August financing; banks acquired a substantial volume of the new Treasury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 Federal Reserve Bulletin • November 1976 issues and substantially increased their loans to securities dealers. Business loans at banks contracted again, following the modest increase in July. Moreover, the outstanding volume of commercial paper of nonfinancial businesses rose little, even though the spread between the bank prime rate and market interest rates continued to favor business borrowing in the commercial paper market. With business demands for short-term credit remaining slack, two large banks lowered their prime rate from 7 to 63A per cent in mid-September. It was anticipated that business loan demands at banks would remain sluggish in the weeks immediately ahead and that banks would continue to use a substantial part of their time and savings deposit inflows to increase holdings of Treasury coupon issues. At the same time banks were likely to permit the outstanding volume of CD's to decline further. The narrowly defined money stock (Afi) grew at a seasonally adjusted annual rate of just under 6 per cent during August, somewhat below the rate of 63A per cent in July. Demand deposits had increased sharply during the first half of August, before payment on the new issues offered in the Treasury's financing. But they declined after the payment date for these new issues. Growth in M also slowed in August from the strong pace in 2 July. The slackening reflected in part the behavior of M but in l9 addition, expansion in the time deposit component of M slowed 2 sharply. On the other hand, savings deposit inflows at banks accelerated. Inflows of deposits to savings and loan associations and to mutual savings banks also accelerated, and growth in M 3 remained rapid. Over the first 8 months of this year—from December 1975 to August 1976—M grew at a rate near the midpoint of the Commit- 1 tee's longer-run range for that aggregate. However, growth in M 2 and M was high relative to the Committee's longer-term ranges. 3 The relatively rapid growth in the broader aggregates resulted mainly from lower-than-expected short-term interest rates associated with slower-than-expected expansion in nominal GNP and in credit demands. The rate of increase in M thus far in 1976 was consistent with x the view that the downward shift in the demand for currency and demand deposits that was so evident in 1975 may have slowed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 921 As a result, the velocity of M increased on the average over the 1 second and third quarters of 1976 at a much slower rate than over the preceding three quarters, when it had risen at a rate of almost 9V4 per cent. System open market operations since the August meeting had been guided by the Committee's decision to maintain prevailing bank reserve and money market conditions, provided that M and x M appeared to be growing at about the rates then expected. Since 2 incoming data indicated that in the August-September period the aggregates would grow at rates well within the projected ranges, open market operations continued to be directed toward maintaining reserve conditions consistent with a Federal funds rate of about 5lA per cent—the rate prevailing at the time of the August meeting. During the inter-meeting period the Federal funds rate deviated little from the per cent midpoint of the operating range that had been specified by the Committee. However, most other interest rates declined further—by amounts ranging to nearly 20 basis points in short-term markets and to as much as 30 basis points in intermediate- and long-term markets. A relatively light calendar of new corporate bond issues for the months immediately ahead and a shading of market forecasts of the fourth-quarter volume of Treasury cash borrowing contributed to the declines in rates. In addition, market participants apparently interpreted incoming economic data as indicative of slower expansion in output and less rise in prices than they had anticipated earlier. The Treasury raised another $3.2 billion of new money during the inter-meeting period—by adding $1.1 billion to the auction of 2-year notes in late August and by issuing $2.1 billion of a new 4-year note on which payment was made in mid-September. The Treasury also announced that it would raise $820 million of new money when it rolled over a 2-year note that would mature at the end of September. Because of these operations, and also because Federal spending had fallen short of earlier expectations, it now seemed likely that the Treasury cash balance at the end of September would be quite high—possibly in excess of $15 billion. The further general decline of bond yields carried indexes of yields on State and local government issues to the lowest levels since February 1975. Municipal borrowers took advantage of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 Federal Reserve Bulletin • November 1976 reduced interest costs by maintaining their bond offerings in July and August at a relatively high rate for that time of year, but the offerings were readily absorbed. Fire and casualty insurance companies contributed importantly to the strengthened demands for municipal bonds. Average interest rates for new commitments on primary home mortgages changed little over the inter-meeting period, but yields in the more sensitive secondary market edged down in response to the further decline in bond yields. The over-all volume of funds raised in residential mortgage markets remained large. Most of the new residential mortgages continued to be absorbed by savings and loan associations or into pools of mortgages used by GNMA as collateral for new issues of guaranteed securities. Savings and loan associations acquired nearly a fifth of these new issues. During the Committee's discussion of the economic situation at this meeting no member expressed substantial disagreement with the staff projection of stronger growth in real GNP over the quarters immediately ahead. However, two members expressed uncertainty about the timing with which the anticipated strengthening in economic activity would actually develop, and it was suggested that the chances of a shortfall from the projected rates of growth appeared to have increased recently. One member questioned whether the strike under way in the automobile industry might not have a significantly adverse effect on expansion in aggregate output, at least over the near term—although others stated that in the past the bulk of output losses resulting from major strikes had generally tended to be made up within a short period. Also, uncertainties about the course of prices—in particular, concern that cost pressures might push prices up at a more rapid rate—were seen as a possible dampening influence on business spending plans. Other members expressed the view that recent economic statistics justified optimism about the outlook. The index of industrial production had been revised upward to show a significant increase in July, and it had continued to rise at the same pace in August. Figures on retail sales—which had appeared sluggish for a time— had been revised upward for June and July, sales were reported to have expanded sharply in August, and weekly estimates suggested that they had remained strong in early September. And while the advance in personal income was reported to have slowed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 923 appreciably in August, the slowing was attributable in part to estimates of a decline in farm proprietors' income, figures for which were highly conjectural. The situation with respect to business income also appeared to have been healthy recently. It was also emphasized that the behavior of new orders for nondefense capital goods and of other advance indicators suggested that a more rapid increase in business fixed investment was in the making. With respect to business inventories, some significant adjustments had been made, no troublesome excesses were apparent, and attitudes remained appropriately cautious. Residential construction activity was not so strong as one might wish, but a slow uptrend was in progress; the August figures for housing starts and building permits were reassuring. At its July meeting the Committee had agreed that from the second quarter of 1976 to the second quarter of 1977 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M 4% to 1? 7 per cent; M , IV2 to 9V2 per cent; and M , 9 to 11 per cent. 2 3 The associated range for growth in the bank credit proxy was 5 to 8 per cent. It was agreed that the longer-term ranges, as well as the particular aggregates for which such ranges were specified, would be subject to review and modification at subsequent meetings. It also was understood that short-run factors might cause growth rates from month to month to fall outside the ranges contemplated for annual periods. As to policy for the period immediately ahead, Committee members in general advocated continuation of the current stance. Interest rates, especially on long-term debt, had been adjusting downward, it was observed, in good measure because of improving confidence that the rate of inflation was being reduced, and also because of stability in the Federal funds rate. One or two members, taking note of uncertainties in the outlook for economic activity, suggested that open market operations in pursuit of the Committee's objectives for the period immediately ahead might be conducted so that any deviations would be on the side of ease. At the same time, other members felt that any marked easing in the near term might be misinterpreted in the market. In considering the ranges for M and M to be specified for x 2 the September-October period, the Committee took account of, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 Federal Reserve Bulletin • November 1976 among other things, the relatively rapid growth in the time and savings deposit component of M that appeared to be materializing 2 for September, given the attractiveness of rates offered on time and savings deposits in relation to market interest rates. There was near unanimity in the preferences expressed for ranges of growth in the monetary aggregates over the September-October period. The members favored a 2-month range of 4 to 8 per cent for Mi and either 8 to 12 or 9 to 13 per cent for M . It was suggested 2 that the relatively rapid growth in M ought to be accommodated. 2 At the same time, two members cited the rapid growth in M in 2 recent months as an argument for specifying the lower of the two ranges. One member suggested giving greater weight to M than 2 to Mx in assessing the implications of the behavior of the aggregates for System open market operations. With respect to the Federal funds rate, the members agreed that it would be appropriate to maintain the prevailing level of 5 lA per cent so long as the monetary aggregates were growing at about the rates expected. They differed, however, in their preferences for the width of the range for the funds rate. Some members advocated retention of the 5 to 5V2 per cent range that had been specified at the August meeting. Others advocated a range of 43A to 53A per cent—and one favored a still wider range. Others proposed a range that was not symmetrical around the prevailing rate of 5XA per cent—specifically, a range of 43A to 5V2 per cent. In support of that proposal, it was suggested that because of the recent sluggishness in the economic expansion, it would be appropriate to permit more easing in money market conditions in response to indications of unexpected weakness in growth of the aggregates than tightening in response to unexpected strength. It was observed that, if the Committee specified a wider range for the Federal funds rate than it had at the August meeting, it would be appropriate to place greater emphasis than at that meeting on the behavior of the aggregates in formulating the operating instructions contained in the last paragraph of the domestic policy directive issued to the Federal Reserve Bank of New York. One member suggested that, because of the uncertainties about the economic situation and outlook, it would be appropriate for the Committee to emphasize steady growth in the monetary aggregates—just as uncertainties about the changing demand function Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 925 for money around the beginning of the year had made it appropriate, in his view, to place more emphasis on interest rate stability. At the conclusion of the discussion the Committee decided to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the period ahead. Specifically, the Committee concluded that growth in M and M 1 2 over the September-October period at annual rates within ranges of 4 to 8 per cent and 8 to 12 per cent, respectively, would be appropriate. The Committee also decided that, in assessing the behavior of the aggregates, the Manager should continue to give approximately equal weight to the behavior of M and of M . x 2 It was agreed that until the next meeting the weekly-average Federal funds rate might be expected to vary in an orderly way within a range of 43A to 5V2 per cent. It was also agreed that the Manager should continue to aim for a Federal funds rate of 5 XA per cent, unless growth in the monetary aggregates appeared to be deviating significantly from the midpoints of the specified ranges. As customary, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee's various objectives. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that growth in real output of goods and services has remained moderate in the current quarter. In August industrial production continued to expand at about the average rate in the preceding 4 months. Retail sales apparently rose vigorously, after having changed little on balance since April. Payroll employment in nonfarm establishments rose appreciably further, but according to household survey data, the unemployment rate edged up from 7.8 to 7.9 per cent. The wholesale price index for all commodities was about unchanged in August, as a substantial decline in average prices of farm products and foods offset another large increase in average prices of industrial commodities. So far this year the advance in the index of average wage rates has been somewhat below the rapid rate of increase during 1975. The average value of the dollar against leading foreign currencies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 Federal Reserve Bulletin • November 1976 has remained relatively steady in recent weeks, declining somewhat against most of these currencies but rising against the pound sterling. The Mexican peso was allowed to depreciate on September 1 and in recent days has been about 37 per cent below its old value against the dollar. In July the U.S. foreign trade deficit increased sharply. M and M grew at moderate rates in August. Inflows of the x 2 time and savings deposits included in M were relatively strong, 2 although they slackened from the high rate in July. Inflows of deposits to nonbank thrift institutions accelerated, however, and growth in M remained rapid. Most market interest rates have 3 declined somewhat further in recent weeks. 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 inflationary 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, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Wallich, and Winn. Votes against this action: None. Absent and not voting: Mr. Partee. 2. Financing Arrangements with Mexico On the day before this meeting it was announced that the U.S. Treasury Department and the Federal Reserve had made arrangements with the Government of Mexico under which up to $600 million would be available to the Bank of Mexico to counter disorderly exchange-market conditions during a transition period pending the receipt of medium-term financing from the International Monetary Fund. Following the devaluation of the peso on August 31, 1976, the Mexican Government had developed a detailed economic program designed to cope with Mexico's balance of payments problem. Subsequently, the Managing Director of the International Monetary Fund had advised the Mexican authorities that he found the program adequate to deal with Mexico's balance of payments problem and was prepared to recommend that the Fund's Executive Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 927 authorize drawings by Mexico under the Extended Fund Facility and other facilities of the Fund. At the time these arrangements were made, the Bank of Mexico had outstanding drawings of $360 million on its swap line with the Federal Reserve. These drawings were due to mature in early October. The arrangements provided that, at the option of the Mexican Government, the Federal Reserve would make available amounts repaid in advance of maturity under the existing swap line, up to $180 million. The remaining amounts would be made available by the Treasury through the Exchange Stabilization Fund. These arrangements were approved on behalf of the Federal Open Market Committee by the Foreign Currency Subcommittee, consisting of Messrs. Burns, Volcker, Gardner, and Wallich. 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

928 Law Department Statutes, regulations, interpretations, and decisions Securities of Member State Banks traordinary items and cumulative effect of a change in accounting, net income, and per share data The Board of Governors has amended its Regubased upon such income for each full quarter lation F to make it substantially similar to comwithin the two most recent fiscal years and any parable rules and regulations issued by the Securisubsequent interim period for which income stateties and Exchange Commission. ments are presented. (2) When the data required by the preceding Section 206.7(c)(10) is amended by adding the paragraph vary from the amounts previously refollowing new paragraph: ported on the Form F-4 filed for any quarter, such Section 206.7—Form and as would be the case when a pooling of interests Content of Financial Statements occurs or where an error is corrected, reconcile the amounts given with those previously reported describing the reason for the difference. ( ) * * * (3) Describe the effect of any unusual or infrec quently occurring items recognized in each full (10) * * * quarter within the two most recent fiscal years and (vii) Disclosure of selected quarterly financial any subsequent interim period for which income data in notes to financial statements.1 statements are presented, as well as the aggregate Exemption. This rule shall not apply to any effect and the nature of year-end or other adjustregistrant that does not meet the following condi- ments that are material to the results of that quartions: ter. (a) The bank (1) has securities registered (4) Where this note is part of audited financial pursuant to Section 12(b) of the Securities Ex- statements, it may be designated "unaudited." change Act of 1934 or (2) has securities registered Instruction: If the financial statements are covpursuant to Section 12(g) of that Act that also (i) ered by an independent public accountant's report, are quoted on the National Association of Securi- and the note required by the above paragraph (vii) ties Dealers Automated Quotation System and (ii) is designated as "unaudited," it shall be presumed meet the requirements for continued inclusion on that appropriate professional standards and procethe list of OTC margin stocks set forth in Section dures with respect to the data in the note have 220.8(i) of Regulation T of the Board of Gover- been followed by the independent accountant who nors of the Federal Reserve System; and is associated with the unaudited footnote by virtue (b) The bank and its consolidated subsidiaries of reporting on the financial statements in which (1) have had a net income after taxes but before it is included. extraordinary items and the cumulative effect of a change in accounting, of at least $250,000 for Bank Holding Companies each of the last three fiscal years; or (2) had total assets of at least $200,000,000 as of the end of By notice of proposed rulemaking published in the last fiscal year. the Federal Register on April 10, 1974 (39 F.R. (1) Disclosure shall be made in a note to finan- 13007), the Board of Governors proposed, in cial statements of total operating income, income connection with an application filed pursuant to before security gains (losses), income before ex- § 4(c)(8) of the Bank Holding Company Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board's Regulation Y (12 CFR § 225.4(b)(2)), to 1Copies of revised forms F-4 and F-9 are available from any Federal Reserve Bank. add to the list of activities that it has determined Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 929 to be closely related to banking or managing or Notwithstanding the foregoing conclusion, the controlling banks (§ 225.4(a) of Regulation Y) the Board believes that developments occurring since following: the issuance of the proposed rulemaking in this matter warrant deferral of a decision to adopt the . . . underwriting and dealing in such obliproposed amendment to Regulation Y. In 1975, gations of the United States, general obligations of any State and of any political subdi- subsequent to the notice of the proposed rulemakvision thereof, and other obligations that ing in this matter, Congress amended the Securi- State member banks of the Federal Reserve ties Exchange Act of 1934 to subject, for the first System may from time to time be authorized time, municipal securities dealers to extensive to underwrite and deal in. regulation. As part of a comprehensive scheme of The Board has considered all comments re- regulation, the 1975 Amendments created the ceived. After considering all relevant aspects of Municipal Securities Rulemaking Board (MSRB) the proposal to add the above activity to the list and authorized it to promulgate rules governing of permissible activities for bank holding compa- the activities of bank and nonbank municipal senies, the Board has determined not to adopt the curities dealers. Under the statute, the MSRB is proposed amendment at the present time and to required, among other things, to propose and adopt suspend further consideration of the activity at this rules that: time. In order for the Board to approve an activity "[are] designed . .. to promote just and as permissible for a bank holding company under equitable principles of trade ... to remove impediments to and perfect the mechanism § 4(c)(8) of the Bank Holding Company Act, the of a free and open market in municipal Board must find that the activity satisfies two securities, and, in general, to protect invesdistinct tests. The activity must be determined (1) tors and the public interest [and must] not to be closely related to banking or managing or be designed to permit unfair discrimination controlling banks; and (2) to be a proper incident between customers . . . [and that] establish the terms and conditions under which any thereto. The second test involves a weighing of municipal securities dealer may sell, or propublic benefits that may be expected to flow from hibit any municipal securities dealer from a bank holding company engaging in the activity selling, any part of a new issue of municipal against the possible adverse effects. securities to a municipal securities portfolio during the underwriting period."2 On the basis of the information in the record, the Board believes that there is support for a The MSRB is currently in the process of prodetermination that the activity is ''closely related mulgating regulations governing the conduct of to banking." National banks and State member municipal securities dealers. Without the benefit banks are specifically authorized under 12 U.S.C. of a thorough consideration of the impact that the §§24, Paragraph Seventh and 335, to engage in MSRB's actions may have on the municipal sethe activity directly and many banks do, in fact, curities industry and in light of the specific Conengage in the activity. At the present time, banks gressional mandate that the MSRB has received are a major competitive factor in the industry. To to act in this area, the Board believes that action date, only two courts have considered the "closely by it to adopt the proposed amendment at this time related" language in Section 4(c)(8) of the Act, would be premature. and both courts concluded, inter alia, that an Possible regulatory changes that may be brought activity generally engaged in by banks directly about by actions of the Municipal Securities Rulewould seem to qualify as "closely related" to making Board may significantly alter present banking or managing or controlling banks within practices and operations of bank-related and nonthe meaning of the statute.1 Accordingly, the bank-related municipal securities underwriters and Board is of the view that the proposed activity dealers. In light of this uncertainty, any findings is "closely related" to banking. of public benefits deriving from bank holding company performance of the instant activity or of possible adverse effects of such performance would necessarily be speculative at best. Applica- 1 National Courier Association v. Board of Governors of the Federal Reserve System, 516 F. 2d 1229 (D.C. Cir. 1975); and Alabama Association of Insurance Agents v. Board of Governors of the Federal Reserve System, 533 F. 2d 224 (5th 2Section 15B(b)(2)(C) and (K) of the Securities Exchange Cir. June 10, 1976). Act of 1934, as amended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 Federal Reserve Bulletin • November 1976 tion of the balancing test necessary to determine was held before available members of the Board, that the instant activity is a proper incident to Governor Jackson presiding. Participants were banking or managing or controlling banks would permitted to file additional materials until April be even more uncertain at this time. 23, 1976. For the foregoing reasons, the Board has deter- The Board has considered all comments remined not to adopt the proposed amendment at ceived prior to the oral presentation, the record this time, and to suspend further consideration of of the oral presentation, and all written statements the activity, either by order or by regulation, as submitted in connection with and subsequent to permissible for bank holding companies, for a the oral presentation. Although bank holding period of twelve months, unless prior to that time companies have been permitted to engage in autoactions of the Municipal Securities Rulemaking mobile leasing since 1974 under the Board's gen- Board lead the Board in its judgment to reconsider eral personal property leasing regulation, section the deferral of action on this matter. 225.4(a)(6)(d) of Regulation Y, the Board has By order of the Board of Governors, effective considered the issue of the permissibility of auto- October 19, 1976. mobile leasing on a de novo basis and has based its findings only upon the record of this proceed- Automobile Leasing as an ing.1 After studying the record herein, the Board has determined that automobile leasing should Activity for Bank Holding Companies continue to be a permissible activity for bank Effective April 17, 1974, the Board of Gover- holding companies and should continue to be innors amended section 225.4(a)(6) of its Regulation cluded within the scope of the Board's existing Y, 12 CFR 225.4(a)(6), to permit bank holding personal property leasing regulation. companies to engage in the leasing of real and In order to authorize a bank holding company personal property subject to certain conditions. to engage in a nonbanking activity pursuant to The National Automobile Dealers Association Section 4(c)(8) of the Bank Holding Company Act (NADA) sought judicial review of this leasing ("Act"), the Board must first determine whether regulation insofar as it permitted bank holding the activity is closely related to banking or mancompanies to engage in the leasing of automobiles. aging or controlling banks. Such a determination The Board requested the court to remand the is usually made by the Board, as here, by regulamatter to the Board for reconsideration of the tion in adding the proposed activity to the list of specific issue of whether automobile leasing should permissible activities set forth in Regulation Y. continue to be a permissible activity for bank The second determination required by the statute holding companies. On October 25, 1975, the is that the activity is a "proper incident" to court granted the Board's request and remanded banking. That is, that performance of the activity the matter to the Board. by a bank holding company "can reasonably be On November 11, 1975, the Board issued notice expected to produce benefits to the public . . . (published in the Federal Register on November that outweigh possible adverse effects. . . ."As 17, 1975, 40 Federal Register 53272), of a pro- set forth below, in adopting and determining in posed rulemaking on whether automobile leasing this action to retain the regulation the Board has should continue to be a permissible activity for made a general finding that the activity is a proper bank holding companies and, if so, under what incident to banking. However, as provided for in conditions or limitations. The Board received the Board's regulations and procedures, in many written comments from approximately 100 inter- cases, this issue is reconsidered in light of factors ested parties, including automobile dealers, auto- peculiar to individual applications at the time such mobile leasing companies, banks, bank holding applications are submitted. companies, and various trade associations. In response to several requests for an opportunity to I. The Closely Related to Banking Test present views orally and for a formal hearing, the Board announced on January 20, 1976 (published There are a number of tests that the Board in the Federal Register on January 28, 1976, 41 applies to proposed new activities and, if an activ- Federal Register 4022), a schedule for oral pre- ity qualifies under any one of these, it may be sentation of views and additional written submissions. On March 23, 1976, the informal hearing 1See p. 943 for all footnotes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 931 determined to be closely related to banking and of leasing competitor is the financing affiliate of added to the list of activities in Regulation Y that the auto manufacturer such as Ford Motor Credit are permissible for bank holding companies if also Corporation and General Motors Acceptance Corfound to be a proper incident. It appears on the poration. These organizations use their own netbasis of the record that automobile leasing quali- work of auto dealers to conduct their leasing fies under at least two of these tests. operations. Finally, certain large retail corpora- The first of these tests is a strictly factual test tions have entered or may enter the market. Most of whether banks generally have provided and do notably, Sears, Roebuck and Company, the Naprovide the proposed service.2 Although automo- tion's largest retail corporation, has begun to exbile leasing is a relatively new activity, banks pand its automobile leasing operation nationwide. engage in the activity on a widespread basis. National banks have been engaged in automo- Moreover, banks have been engaged in leasing of bile leasing since the 1963 ruling of the Compother types of personal property for a much greater troller of the Currency that such activity was period of time,3 and the Board considers these properly incidental to banking. In addition, 31 legitimate precedents for automobile leasing since States have specific statutes permitting banks to it does not appear that the basic nature of the lease personal property, and in other States the activity is altered by the type of item leased. bank supervisory authority permits State banks by The relevant period to consider bank involve- regulation to engage in the activity.8 In 1968 there ment in automobile leasing is the last 25 years, were 267 national banks engaged in auto leasing; since it is only within that period that leasing of by 1974 the number rose to 590 national banks. vehicles to individuals as well as to businesses Another survey, that included State banks, showe4 began to develop. Banks began to engage in auto- 680 banks engaged in automobile leasing in the mobile leasing at a relatively early stage of the early 1970's, with lease outstandings of $400 industry's development even though the actual million.9 It appears that the number of banks length of time that banks have been involved in involved in automobile leasing is continuing to automobile leasing has not been great. grow. Automobile leasing has spread nationwide On the basis of (1) the historical involvement within the last 12 to 15 years. Leasing of automo- of banks in the leasing of personal property such biles to individuals has tripled within the last as railroad stock and ships, (2) the large and decade and accounts for 10 per cent of the new growing number of banks that lease automobiles, car market nationwide.4 Total automobile leasing (3) the fact that banks entered the automobile including commercial fleet leasing in 1974 was 2.8 leasing industry at an early stage and are now a million vehicles, about 26 per cent of new car significant component of the industry, (4) the fact production.5 Some projections indicate that this that the Comptroller of the Currency and over rate of growth will continue and that by 1980, two-thirds of the States have determined that au- 40 per cent of new car registrations will be for tomobile leasing is a permissible activity for leased automobiles.6 In California, where leasing banks, and (5) the likelihood that the number of first developed, two out of every five automobiles banks engaging in automobile leasing will conpresently in use are leased.7 tinue to grow, the Board concludes that automobile The record in this proceeding indicates that five leasing is closely related to banking. types of entities compete in the leasing industry The second test pursuant to which the Board today. First, there is the independent leasing orga- finds automobile leasing to be closely related to nization which engages solely in leasing rather banking is a functional test, i.e., whether banks than selling automobiles. The second type of entity generally provide services that are functionally or is the auto dealership which, in addition to selling operationally similar to the proposed service and automobiles, has the potential to lease vehicles if are thus qualified to provide the proposed service. it can obtain adequate financing. The larger deal- The parties to this proceeding argued strenuously erships lease vehicles in much the same way as about whether automobile leasing is functionally independent leasing companies, frequently obtain- equivalent to other banking services. ing financing from a bank. The third type of lessor Those parties to the proceeding in favor of the is the bank or bank holding company that may performance of the activity by bank holding comlease vehicles directly or through a network of panies (generally hereafter ''proponents") argued smaller automobile dealerships. The fourth kind that leasing is essentially a financial transaction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 Federal Reserve Bulletin • November 1976 since it is an alternate method of financing the the collateral involved to determine its value over purchase of an automobile without the necessity the term of the lease. In fact, since the amount of a large initial down payment. Thus, to the financed is larger in the case of a lease than in customer it is a means of obtaining the possession the case of a loan, the credit criteria are usually and use of an automobile through deferred pay- a little more stringent. ment. To the bank it is another in a spectrum of The opponents argue, however, that the Board's methods of new car financing that includes instal- regulation which allows reliance by a lessor upon ment credit transactions, floor planning and com- a residual value of 20 per cent in computing a mercial lending to independent lessors.10 full-payout recovery permits speculation in prop- Those parties to the proceeding opposed to the erty and alters the character of the transaction from performance of the activity by bank holding com- that of a loan.13 They point out that a lender does panies (generally hereafter "opponents") argued not generally have an equity interest in the propthat automobile leasing is essentially a merchan- erty being financed.14 Further, the Federal District dising activity in which reliance on the residual Court for the Western District of Washington or resale value of the leased vehicle upon the determined in M&M Leasing Corporation v. completion of the lease term is the critical element. Seattle-First National Bank15 that any lease in They argue that the need for the lessor to estimate which the bank bears any risk of loss is not the and thus to speculate on the resale value of a new equivalent of a loan. automobile three years hence makes automobile The record of the proceeding reflects that the leasing different from an extension of credit or resale value of automobiles at the conclusion of other types of personal property leasing.11 a two- to three-year lease is generally between 20 On the basis of the record, the Board has con- and 55 per cent of a vehicle's acquisition cost.16 cluded that automobile leasing, if conducted by By setting a maximum residual value of 20 per a bank holding company in accordance with the cent, the Board is recognizing that, on an empirical Board's existing personal property regulation, is basis, automobiles have a useful life in excess of essentially a financial transaction that is function- the lease term. On the other hand, the figure is ally equivalent to a bank's lending function. The a small enough percentage of the original price leases written by a bank holding company in the of the automobile to ensure that the holding comlease of an automobile have many similarities to pany will be truly financing a lessee's acquisition a secured loan. In each case there is a sum certain and use of a vehicle rather than conducting a in amount. This sum includes the acquisition cost short-term rent-a-car operation. The record in this of the vehicle and the cost of financing and is proceeding reflects that in 90 to 98 per cent of recovered through a schedule of noncancellable leases the vehicle is worth more than the residual deferred payments. The term of the payment pe- value at the conclusion of the lease and is therefore riod in both cases is 24 to 36, or recently to 48 purchased by the lessee,17 and, even with respect months. The vehicle serves as a type of collateral to those vehicles returned at the end of the lease to guarantee payment on both the instalment loan there is frequently no deficiency.18 Thus, the Board and the lease. Both forms of financing are applied finds that the risk of loss in a lease transaction to a specific automobile that is chosen prior to cannot be said to be significantly greater than in preparation of the document. In the case of a lease a loan transaction and a bank holding company the bank is required by the Board's Regulation lessor cannot be said to be speculating in the value Y, section 225.4(a)(6)(a)(/0, to acquire the auto- of property. mobile specifically for an individual transaction. While, as indicated above, a lease in which the All attributes of ownership pass to the lessee who lessor relies on a residual value of up to 20 per is responsible for servicing, insurance, and depre- cent of the initial value of the property to calculate ciation. payments that provide for a "full payout" is In addition to the above, the proponents have equivalent to and a substitute for an extension of testified that they use the same skills in leasing credit, the record in the proceeding reflects that a vehicle as they do in financing it through an banks and bank holding companies presently eninstalment loan.12 They assess the credit worthi- gaging in leasing activities uniformly write openness of the lessee, examining his record on repay- end leases in which the lessee guarantees the ment of earlier obligations and reviewing his abil- estimated residual value. If upon resale at the end ity to meet the payment schedule. They examine of the lease term, the vehicle does not bring the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 933 estimated residual value, the lessee agrees to re- leasing by eliminating any possibility that they imburse the lessor for the deficiency. If the ve- could rely upon a lessee guarantee.23 In fact, the hicle's actual resale price exceeds the estimate, legislation was specifically designed to ensure that the lessee receives the surplus. the "estimated residual value shall be a reasonable The Board's existing personal property leasing approximation of the fair market value of the regulation, section 225.4(a)(6)(a)(/v)(4) of Regu- property on lease expiration." Reasonableness in lation Y, permits the lessor bank holding company the estimating of residual value is required by the to rely upon residual value up to 60 per cent of Board's regulation and is one reason for imposing the acquisition cost of the vehicle if the residual a 60 per cent ceiling on the guarantee provision. value is unconditionally guaranteed by a finan- If the guarantee is reasonable then there is no ban cially qualified third party. This 60 per cent figure on reliance upon it under the Consumer Leasing corresponds to the maximum residual value for Act. The Report of the Senate Committee on most vehicles after a two- or three-year lease,19 Banking, Housing and Urban Affairs, in reporting and the Board believes such a ceiling prevents out the version of Section 183 of the Consumer speculation on residual value and preserves the Leasing Act that ultimately was enacted, recoglease as the functional equivalent of an extension nized that the lessee bears the risk of loss upon of credit. The court in M&M Leasing20 found this which lessors may rely. traditional automobile lease with the guarantee of The lessor's obligation under this language residual value to be the functional equivalent of (of section 183) is to make a good faith and a loan. rational estimate of future residual value based on circumstances and information Subsequent to the Board's adoption of the guaravailable at the time the lease was written. antee provisions, on March 23, 1976, Congress If the lessor does so the lessee bears the risk enacted the Consumer Leasing Act21 which pro- of unanticipated fluctuations in market value vides, in part, that with respect to a guarantee of and the lessor is assured of full recovery residual value a lessee is obligated to pay the under the lease.23A difference between the projected residual value and The Board believes that, even in light of the the actual resale price only if the estimate of the Consumer Leasing Act, an automobile lease residual value is reasonable and made in good wherein the bank holding company lessor relies faith. The estimate is presumed unreasonable if upon a reasonably estimated residual value it exceeds the actual resale value by more than guaranteed by the lessee remains functionally three times the lessee's average monthly rental equivalent to a loan. If anything, the Consumer payments. Except in the case of unreasonable wear Leasing Act eliminates possible speculation on and use or a mutually agreeable final adjustment, residual values and forces the lessor to adopt very the lessor can recover an additional sum only by conservative residual values. The bank holding filing suit and by demonstrating to a court that company looks to the lessee for rental payments the estimate of residual value was reasonable and and in the event of default, particularly in the early made in good faith. stages of a lease when most defaults occur24 and The opponents argue that the Consumer Leasing when resale value of the automobile does not equal Act effectively prevents reliance by bank holding the lessor's costs. The lessor also relies upon the company lessors upon the lessee guarantees of lessee for reimbursement in the event of deficienresidual value. In their view, such a guarantee is cies between estimated and actual resale value, no longer unconditional as required by the Board's particularly when such deficiencies are less than regulation, as the lessor is compelled to rely upon three monthly rental payments.25 It stands to reathe resale value of the vehicle rather than the credit son that, as in the case of a loan, a bank holding worthiness of the lessee. This, they argue, destroys company lessor would prefer to rely upon payment the equivalency of the lease to a loan.22 by a lessee/debtor rather than to attempt to dispose Initially, it is clear from the legislative history of the leased item/collateral. of the Consumer Leasing Act that Congress in- The risk of fluctuation of residual value remains tended this legislation to protect the consumer with the lessee, and even the small risk borne by from liability for unreasonable balloon payments the bank holding company that a court may find at the end of a lease term. The legislation was the estimate of residual value unreasonable is no not intended to indirectly prohibit banks and bank greater than the risk always present in making a holding companies from engaging in automobile secured loan. As in the case of reliance upon an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 Federal Reserve Bulletin • November 1976 unguaranteed residual value of 20 per cent or less, lessee deals with an automobile dealer rather than a minimal risk of loss does not destroy the lease's a bank or bank holding company directly. The equivalency to an extension of credit. bank or holding company merely purchases the Furthermore, the Board does not consider the vehicle selected from the dealer after the dealer Consumer Leasing Act to impose a "condition" and lessee have agreed upon the make and model, upon a guarantee for purposes of its personal the accessories to be included and the date of property leasing regulation. The need to follow delivery. The lessor's role is the traditional bankcertain statutory procedures to enforce the provi- ing function of credit analysis and approval of the sions of a document such as a lease or a secured written financing agreement. Since the dealer is loan does not necessarily "condition" that docu- responsible for delivery, the vehicle may never ment. Nor does the need to prove that the estimate even be seen by the lessor.27 of residual value is reasonable impose a condition The bank holding companies and banks do upon recovery within the contemplation of the prepare a schedule of leasing fees for dealers in regulation. The Board has required the estimate their network, and this includes a projection of of residual value to be reasonable upon the signing residual values. The proponents testified that they of the lease. All conditions to recover upon the project residuals on the basis of the Kelly Blue lease have been fulfilled at that time and the Book of wholesale prices and similar auto industry document is subject to enforcement. projections, conservatively tempered by a safety An additional argument that the opponents raise factor and without any reliance upon the inflation to establish that leasing of automobiles is not that has marked the used car market in recent functionally equivalent to financing is that it more years.28 closely resembles the merchandising of used cars The projection of residual value draws upon the since the bank holding company lessor must esti- same knowledge and expertise with regard to the mate the vehicle's residual value, must purchase value of collateral that banks rely upon when the vehicle and must dispose of it upon completion making secured loans. Banks have traditionally of the lease term. They argue that the need to appraised property before accepting it as collateral estimate, and to rely upon, the residual value of for a mortgage loan, refusing the loan if the the vehicles leased transforms the leasing of auto- purchase price exceeds the bank's estimated resale mobiles into something more than a financial value of the property. On various types of secured transaction, particularly since automobile leasing loans banks have traditionally required down payis the only type of personal property leasing that ments that are a certain percentage of the purchase relies to such a significant degree upon the factor price of the item financed as protection in the event of residual value.26 of early default and repossession. These banking These possible aspects of the activity have been functions require a level of competence in assessof concern to the Board and it has imposed certain ing the value of collateral. The estimate of residual conditions designed to avoid any merchandising values in automobile leasing is considered by the aspects of leasing and to preserve its financial Board to be equivalent to existing banking funccharacter. The regulation requires that the bank tions. holding company acquire the item to be leased In the case of direct leasing the bank or holding specifically for the transaction under consideration company is more involved than in the case of (section 225.4(a)(6)(a)(/i)) and that at the end of indirect leasing since it deals directly with the the lease term the holding company release the lessee, and thus greater concerns are raised as to item or dispose of it within two years (section "merchandising." However, the banks and bank 225.4(a)(6)(a)(vi)). Both of these provisions are holding companies have testified that they do not designed to prevent the stockpiling or inventorying counsel or advise the prospective lessee as to the of property, activities that indicate a commercial make or model of vehicle he may wish to lease, or merchandising operation. The bank holding or even suggest that he lease rather than buy.29 company may purchase an automobile only as They may merely put the lessee in contact with already selected by an individual lessee and must a dealer who is conveniently located to provide dispose of that vehicle promptly, if it is returned servicing and maintenance.30 Frequently, as in the rather than purchased or otherwise disposed of by case of indirect leasing, the holding company the lessee. never even has possession or contol of the vehicle which is delivered from dealer to lessee. In the case of indirect leasing, the prospective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 935 As an additional safeguard to prevent bank chandising automobiles rather than financing or holding company lessors from becoming too in- extending credit. This literature emphasized such volved in the commercial aspects of automobile services as locating the vehicle of the customer's leasing, the Board's regulation (section 225.4(a) choice, purchasing it on favorable terms, deliver- 06)(a)(iii)) requires the leases be written on a ing it without cost and disposing of it at the nonoperating basis. This means that the bank conclusion of the lease term. holding company may not provide for servicing Such advertising is likely to be used only in and maintenance of the vehicle or for similar the case of direct leasing, according to testimony functions. The bank holding company administers by the proponents, since in the case of indirect the lease as it would administer a loan. leasing these services are performed by the auto The opposing parties additionally charge that dealer with whom the prospective lessee negotidisposal of the vehicle at the end of the lease forces ates.36 If the advertising is prepared by the bank the holding company into the merchandising of holding company for use by all of the dealers in used cars. The experience of banks and bank its network and merely demonstrates the dealers' holding companies, however, demonstrates that services as opposed to those of the holding comthis activity is very limited because only a small pany, the Board believes no issue as to merchanpercentage of the vehicles are returned to the dising by the holding company is raised. lessors. In addition to the earlier cited testimony When such advertising emphasizes certain incithat between 90 and 98 per cent of all vehicles dental leasing services of the bank holding comleased by banks are disposed of by the lessee, both pany itself, however, such advertising still does Alameda Bancorporation and Wells Fargo Bank not alter the basic nature of the lease transaction. testified that only 2 per cent of their leased vehicles It appears customary to obtain lending or leasing were returned for resale.31 First National Bank of business by emphasizing the automobile such a San Jose has had to dispose of fewer than 5 per loan or lease will secure. The Board also notes cent of its leased vehicles,32 and Seattle-First Na- that the Consumer Leasing Act has an express tional Bank has had to dispose of only two vehicles provision regulating the advertising of leases,37 wholesale out of a total of 345 normally terminated and that this will provide the necessary safeguards leases since April 1973.33 against deceptive advertising. Such figures tend to demonstrate empirically However, in order to insure that leasing of that the banks are not engaged in the merchandis- automobiles by bank holding companies remains ing of used automobiles but are merely incidentally essentially a financing transaction and does not disposing of a few vehicles as they would in the take on the character of merchandising, the Board case of repossession on a secured auto loan. In- believes it appropriate to define more fully the deed, Seattle-First testified that it repossessed 147 requirement of the existing regulation that bank vehicles during the same period that it disposed holding company leasing be conducted on a of two leased vehicles.34 Wells Fargo "repos- nonoperating basis. Accordingly, the Board is sessed" approximately 370 leased vehicles in 1975 amending its personal property leasing regulation (out of a total of 17,000) for failure to make by adding the following footnote. payments, but only 30 additional automobiles were For purposes of the leasing of automoreturned at the close of the lease period.35 Even biles, the requirement that the lease be on if the number of leased vehicles returned to the a nonoperating basis means that the bank bank lessors was significantly greater, the disposal holding company may not, directly or indirectly, provide for the servicing, repair or of such vehicles wholesale, or through auction on maintenance of the leased vehicle during the the same basis as repossessed vehicles in the case lease term; purchase parts and accessories of a secured loan, is merely a necessary incident in bulk or for an individual vehicle after the to automobile leasing. It is conducted in a routine lessee has taken delivery of the vehicle; manner and does not involve bank holding com- provide for the loan of an automobile during servicing of the leased vehicle; purchase panies in merchandising to any significant degree. insurance for the lessee; or provide for the One opposing party has presented a series of renewal of the vehicle's license merely as brochures advertising the leasing activities of some a service to the lessee where the lessee could banks and a very small number of bank holding renew the license without authorization from the lessor. companies in an attempt to show that banks themselves view automobile leasing in terms of mer- With this additional safeguard and the other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 Federal Reserve Bulletin • November 1976 limitations on the automobile leasing activities of dealers and leasing subsidiaries.38 They allege that bank holding companies already contained in the in some instances leasing subsidiaries of bank regulation, the Board concludes that the essence holding companies may borrow funds from their of automobile leasing will remain the financing parent corporations without interest.39 Further, of the use and control of a vehicle by a lessee. they contend that the financial resources of holding It is the equivalent of a loan and thus meets a companies allow them to set the residual value second of the tests for establishing that an activity on leased vehicles artificially high, thereby creatis closely related to banking. ing smaller monthly payments coupled with a large balloon payment at the end of the lease term. Independents are unable to match these lower II. The Proper Incident to Banking Test monthly payments because it would mean a nega- The determination that automobile leasing by tive cash flow.40 bank holding companies is "closely related to The proponents contend that holding companies banking or managing or controlling banks" re- generally borrow funds at approximately the same solves the first portion of the two-part test of rates as the independent lessors.41 They state fur- Section 4(c)(8). Resolution of the second issue, ther that Section 23A of the Federal Reserve Act whether bank holding company automobile leasing effectively prohibits holding companies from bor- "can reasonably be expected to produce benefits rowing from their banking subsidiaries and that to the public . . . that outweigh possible adverse holding companies must borrow their funds from effects," is usually achieved through the consid- other banks. They thus contend that leasing suberation of the individual applications of bank sidiaries of holding companies are, therefore, in holding companies to engage in automobile leas- the same position as independent lessors vis-a-vis ing. This is the case since the public benefits or access to funds.42 Moreover, if one bank were to adverse effects may vary considerably with each set the price of funds for independent lessors artiapplication depending on such factors as the size ficially high, other banks would find it profitable and condition of the applicant and the competi- to offer funds at a lower rate and thereby acquire tiveness of the relevant market. Nevertheless, be- new customers.43 Almost all of the banking parfore placing a nonbanking activity on the list of ties testified that, although involved in auto leasing, activities that have been found to be "closely they continue to provide funds to independent related to banking or managing or controlling lessors, and that there is an adequate number of banks," the Board finds it desirable to make a banks competing to provide such financing.44 generalized examination of the activity and to The Board finds that large independent lessors determine, as a general matter, whether the bal- have approximately the same cost for borrowed ance of reasonably expected public benefits and funds as holding companies. It appears that the possible adverse effects is such that it would be disparity between the cost of borrowed funds for in the public interest for bank holding companies holding companies and small independent lessors to enter the industry in question. Particularly in is based primarily on the relative size of holding the case of uncontested applications to engage de companies rather than advantages gained from novo in the proposed activity, the public benefits affiliation with the banking subsidiaries. Indeed, findings made during the rulemaking proceeding large independent lessors appear to have a similar may prove helpful or perhaps dispositive. advantage over small independent lessors with With respect to the question whether bank regard to the cost of borrowed funds. Further, the holding company performance of leasing activities record demonstrates that holding companies obtain may lead to possible unfair competition, opponents at least a portion of their funds by borrowing from contend that independent lessors are unable to unaffiliated banks.45 It is the Board's judgment that compete with either the direct or indirect leasing access to the securities market or a lower cost of programs of bank holding companies because of borrowed funds resulting from the size of holding significant differentials in the cost of funds. Since companies does not represent an unfair competibanks are the source of funds for the independent tive advantage, nor does it represent an attempt lessors, the opposing parties claim that bank hold- to use the assets of the subsidiary banks to obtain ing companies can and do require the independent a unique competitive status. lessors to pay interest rates that make it impossible The opponents argue that unfair competition for them to be competitive with bank-affiliated between bank holding companies and the inde- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 937 pendent lessors that must borrow from the subsid- available. Although the misuse of confidential iniary banks of the same holding companies extends formation is a possible adverse effect of allowing beyond the cost of funds. They allege that holding bank holding company entry into the leasing field, companies have access to significant confidential the Board concludes that such possibility should information regarding potential competitors, both not be accorded significant adverse weight. independents and small dealers that are part of the The opposing parties also contend that certain holding company's indirect network of dealers. intrinsic qualities of the banking business also Indeed, the opponents suggest, although present- allow holding companies an unfair advantage. ing no evidence to so demonstrate, that indirect Banking has associated with it a shield of respectleasing programs may simply be a means of mak- ability that no other business may obtain53 and ing contact with the customers of small dealers banks can offer such inducements to prospective so that they may later be transferred to the holding lessees as free checking accounts or safe deposit company's direct leasing system.46 Additionally, boxes.54 The proponents respond that, to the extent they state that by auditing the books of the inde- consumers desire a lease package that includes pendent lessors to which loans are granted the maintenance and repair work, independent lessors holding companies may acquire confidential infor- have a significant advantage over bank holding mation concerning the independent lessor's busi- companies as the latter are not permitted to offer ness. As similar information with regard to the such services.55 bank holding companies is not available to the Although the Board is concerned about subsidiindependent lessors, the opponents state that they ary banks offering their holding company affiliates are placed at a competitive disadvantage.47 services without compensation and has, in fact, The American Bankers Association (ABA) re- directed its staff to prepare a general study of this sponded that it has taken a "strong position" with issue for Board consideration, the competitive regard to protecting such information. The ABA effect of free checking or free safe deposit boxes also commented upon the fact that the leasing as an inducement to lease an automobile appears parties did not present a single example of misuse de minimis. Bank holding companies are not perof such information.48 The California Bankers mitted to offer a variety of services provided by Association (CBA) stated that financial informa- independent lessors such as maintenance and tion obtained from independent lessors is not, as repair work, the provision of "loaner" automoa matter of law, entitled to the same amount of biles while the leased vehicle is being repaired, protection as is individual consumer credit infor- the purchase of insurance for the lessee, the sale mation. Absent "improper use" of such informa- of auto accessories, and the maintenance of intion concludes CBA, bank disclosure of such in- ventories of vehicles. When compared to these formation to a leasing affiliate is not unlawful.49 services, the offer of free checking or a free safe Moreover, the proponents indicated that lines of deposit box would not appear to give a holding credit and interest rates are reported in the annual company an unfair competitive advantage. Furreports of bank holding companies,50 and inde- thermore, the Board notes that such services appendent lessors as well aware of the lease terms parently are offered only in isolated instances, being offered by banks and bank holding compa- most likely when the bank itself leases and not nies through discussions with lessees and bank the bank holding company. advertising.51 The opponents claim that holding companies The record reflects that independent lessors have may tie leasing services to other banking services. the option of obtaining financing from banks The proponents contend that the participation of whose affiliates are not engaged in auto leasing.52 holding companies in the leasing market may, in Even borrowing from a bank subsidiary of a hold- fact, prevent tying by other entities. As an exing company that is so engaged results only in ample, it is said that auto dealers may be tempted divulging information to that particular bank. Ab- to write leases requiring that all maintenance work sent some sort of information pooling agreement, be performed by that dealer. Further, small dealers other bank holding companies would not have may be required to finance their leasing activities access to this data. There has been no allegation with funds obtained from auto manufacturers. that such a pooling arrangement exists. Substantial These manufacturers could tie the provision of amounts of information concerning the leasing such credit to other financial services such as floor operations of bank holding companies are publicly plan financing for the dealer's inventory. Thus, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 Federal Reserve Bulletin • November 1976 it is said, allowing holding companies to engage holding companies has increased with such speed in leasing will provide an alternative source of in California, where much of the Nation's auto financing and thereby discourage this type of leasing occurs, that in a short time several banks tying.56 The proponents also note that Section 106 have acquired a larger market share than any of the Bank Holding Company Act prohibits the independent lessor has after 30 years of operation, tying of services by banks and bank holding com- according to the leasing parties.60 In the State of panies.57 Washington, Seattle-First National Bank has The Board is of the view that it is not necessary achieved a sizable market share after only two for holding companies to engage in auto leasing years.61 in order to act as an alternative source of financing The opponents further contend that rapid exand thereby discourage tying in other segments of pansion by holding companies has stifled the vigthe industry. Such an effect could just as well be orous competition that existed beforehand. They achieved through more traditional forms of ex- state that in San Jose, California, bank lessors have tending credit. Consequently, it does not appear virtually driven the independent lessors out of that any public benefits will be generated in this business.62 It is asserted that independent lessors regard through holding company entry. With re- in San Jose were able to match the overall price spect to possible adverse effects, Section 106 of offered to consumers if the residual value factor the Bank Holding Company Act provides a deter- were included but that they were unable to offer rent to holding company tying as it enables any monthly payments as low as those offered by person injured by such tying to bring a civil action banks.63 Opponents contend that the auto leasing for treble damages plus reasonable attorney's fees. market share of California bank holding compa- Furthermore, the record of this proceeding is de- nies, 49 per cent, coupled with their predatory void of any examples of such tying and the Board pricing tactics, will result in the destruction of the believes that the unsubstantiated possibility of such independents. Thereafter, it is said, holding comtying does not constitute a significant adverse panies will raise their prices and obtain monopoly effect of bank holding company entry to this field. profits. Finally, responding to claims that holding With respect to the question whether perform- companies must engage in leasing in order to ance of the activity may lead to decreased compe- preserve their share of the auto financing market, tition, the opponents point out that bank economic the opponents state that businesses that merchanforecasters predicted in 1973 that entry of bank dise autos must obtain their financing from banks holding companies into the auto leasing field whether those businesses sell or lease autos.64 would produce a high mortality rate among smaller The proponents dispute the assertion that the independent lessors. They contend that these small independent lessors will be driven out of the marindependent auto dealers offer true competitive ket. They point out that the history of the provision alternatives in contrast to the automobile dealers of consumer credit does not indicate that banks involved in indirect leasing that offer the same have displaced other consumer credit granting ensingle bank leasing program and are merely "eco- tities. After years of financing the sale of automonomic vassals" of bank holding companies.58 The biles, banks in California finance only 49 per cent opponents argue that, if holding companies of those sold. By analogy one would not expect seriously wish to encourage competition, they independent lessors to be displaced as a general have but to make their wholesale lease financing matter.65 The banking parties also allege that, lines available to the smaller auto dealers, thus although a considerable number of bank holding allowing such dealers to compete independently companies have entered the leasing field, the without relying on a holding company's indirect growth of such leasing by banks and bank holding leasing program. Holding companies are unlikely companies has not kept pace with that of indeto offer wholesale lease financing to small dealers, pendent lessors.66 however, if holding companies are permitted to The proponents argue that, in order to control engage in leasing themselves.59 Rather than al- the auto leasing market and drive out independent lowing smaller dealers to compete as independent lessors, bank holding companies would be relessors, the opponents contend that bank holding quired to engage in a conspiracy to deny funds companies have entered the direct and indirect to independent lessors. In fact, one bank engaged leasing fields on a massive scale and have ex- in leasing stated that in 1975 it helped to finance panded rapidly. The presence of banks and bank the operations of 97 independent lessors with loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 939 of $195 million.67 Further, unless accompanied by of consumer finance suggests that it is extremely a withdrawal of alternative sources of funds such unlikely that banks will charge independent lessors as General Motors Acceptance Corporation, any artificially high rates of interest or refuse to make conspiracy to deprive independents of funding funds available to independents. For example, would be ineffective.68 The proponents argue that, while banks have routinely and traditionally made although NADA has contended for a number of direct extensions of credit to consumers for the years that independent lessors will be driven out purchase of autos, they continue to make such of the market, it has produced no evidence to loans indirectly through auto dealer intermediaries support this claim.69 by discounting the notes that dealers have accepted As noted above, the Board has determined that from consumers. large independent lessors have approximately the The record does indicate that the automobile same cost for borrowed funds as bank holding leasing industry as whole has grown with considcompanies; that any disparity between the cost of erable rapidity in recent years and that some holdsuch funds for holding companies and small inde- ing company operations have become quite large. pendent lessors is probably based on the relative However, the statement by the opponents that size of holding companies, and that neither the holding companies now control 49 per cent of the lower cost of borrowed funds for large businesses leasing market in California appears to represent such as holding companies or large independents, a misunderstanding of the observation that after nor the ability of holding companies to avoid many years of financing the sale of new cars banks borrowing funds by resorting to the securities have only 49 per cent of that segment of the market, represents an unfair competitive advan- financial industry. tage. In view of the above, the Board believes that Inefficient holding companies will doubtless find independent lessors will continue to exist as strong themselves unable to compete with large, well- competitors in the automobile leasing market. managed independent lessors over the long run. Further, there is no evidence of record to suggest Furthermore, even small independent lessors may that bank holding companies are not competing have the capacity to be quite competitive because among themselves in this area, just as they do in of the restrictions placed on bank holding compa- other banking and nonbanking fields. The Board nies by the personal property leasing regulation, concludes that automobile leasing by bank holding as modified above. Most significantly, holding companies, or banks, has not had anticompetitive companies may not provide maintenance or repairs effects in the past and is unlikely to result in for the vehicles they lease. They may not maintain decreased competition in the future. inventories of cars, sell auto accessories, purchase The record does not provide sufficient data for insurance for their lessees, or provide "loaner" the Board to conclude that bank holding company cars while the leased vehicle is being repaired. automobile leasing has had large procompetitive A segment of the leasing market may well desire effects in the past. Nevertheless, the Board conthese services and the record indicates that inde- cludes that the addition to the total number of pendent lessors provide all of these services.70 competitors that results from bank holding com- The contentions of the leasing parties that inde- pany entry as well as the innovation and increased pendent lessors will be driven from the leasing competition which bank holding companies may market with a resultant decrease in the level of offer can be reasonably expected to have procomcompetition appears to be based in part on the petitive results, and there is some evidence of assumption that independent lessors face a group lower lease rates as a result of bank holding of holding companies that are acting in concert company entry.71 to eliminate their competitors by charging artifi- With respect to the issue of whether performcially low prices to their lessees, by unreasonably ance of the activity by bank holding companies raising interest rates on loans made to independent will lead to possible unsound banking practices, lessors, or by simply refusing to make loans to the opponents state that, notwithstanding claims independent lessors. There is no evidence of that bank holding company lessors are protected record to indicate that banks or bank holding by their analysis of the creditworthiness of the companies are in fact engaged in such a conspir- lessee and the guarantee provision of open-end acy. Further, as the proponents have noted, the leases, the major factor in the success of an auto history of the involvement of banks in the area leasing business is the accurate projection of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 Federal Reserve Bulletin • November 1976 residual value of leased vehicles. It is said that To the extent the estimated residual value exceeds even open-end leases involve a substantial risk if the actual residual value by more than three the lessor makes an overly optimistic estimate of monthly payments, the Act creates a rebuttable the residual value.72 A considerable amount of presumption that the estimate is unreasonable and expertise is required to make such estimates accu- was not made in good faith. The Act further rately, and this expertise is normally not possessed provides that such excess liability may not be by bank holding companies. Consequently, auto collected except by mutual agreement or through leasing is said to involve a high degree of risk litigation and that in such litigation the lessor is that endangers the capital adequacy of banks and required to pay the lessee's reasonable attorney's holding companies.73 fees unless the reason for the failure to accurately The opponents state that holding companies project the residual value is due to excessive wear make unreasonable estimates of residual values so and use of the vehicle by the lessee. that the consumer's monthly payments may be It does not appear that the provisions of this artificially reduced.74 They contend that since the Act will result in unsound banking practices, Consumer Leasing Act shifts all of the risk in- however, as they will substantially reduce any volved in estimating the residual value to the tendency to overestimate residual value in order lessor, the failure of holding companies to estimate to create lower monthly payments. The low level residual value reasonably represents an unsound of losses historically associated with bank and banking practice.75 Even absent the Consumer bank holding company leasing also diminishes the Leasing Act, the leasing parties state that it is possibility that the Consumer Leasing Act will difficult to enforce a lessee guarantee provision due have significant adverse effects on the automobile to the costs involved in litigation and the hesitancy leasing operations of bank holding companies and of courts to rule in favor of the lessor in view support statements by the banking parties that of his superior knowledge of probable residual residual values are estimated in a conservative values.76 manner. The Board finds that the estimation of The proponents contend that holding companies residual values is not an inherently unsafe activity utilize higher standards in assessing the credit- and that holding companies have made such estiworthiness of potential lessees than is the case with mates in a reasonable manner that cannot be said those who wish to finance the purchase of an to represent an unsound banking practice. auto.77 Residual values are estimated conserva- The opponents further contend that the low rates tively, using the same basic methods applied by of interest at which holding companies provide banks in all secured lending involving autos.78 funds to their leasing subsidiaries represent an Banks with up to 12 years experience in auto unsound banking practice. If fair interest rates leasing indicated that their percentage of delin- were charged, they argue, the supposed profits of quent accounts, total dollar losses per repossessed leasing subsidiaries would be deflated and might vehicle, and total number of autos repossessed has even become losses. been relatively low, in most cases roughly compa- The Board is unable to discern how the use of rable with their auto sales financing operations.79 low interest rates for intracompany transfers of The proponents state that any tempation to re- funds could represent an unsound banking pracduce the lessee's monthly payment by estimating tice. First, the subsidiary banks themselves are an imprudently high residual vaue is counter- protected from abuse by the provisions of Section balanced by the associated reduction in the lessor's 23A of the Federal Reserve Act. Secondly, low yield. Finally, proponents contend that the lessee's interest loans by the holding company to subsidiliability is not limited by the Consumer Leasing aries cannot significantly alter the appearance of Act if the lessor makes a reasonable estimate of consolidated financial statements for purposes of the residual value based on information available determining profit and loss. at the time the lease is written.80 With respect to the question whether bank It is the Board's judgment that the Consumer holding company performance of leasing activities Leasing Act has a significant effect on the potential can be reasonably expected to produce benefits to for abuse associated with an automobile leasing the public such as increased convenience, the transaction. As discussed above, this Act provides opponents contend that, if properly performed, that lessors are required to make a reasonable auto leasing involves the provision of a variety estimate of the residual value of leased property. of services to accompany the leasing transaction.81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 941 These services include consumer counseling, purchase for lease because to do so would have maintenance and repair work, arranging for insur- an adverse effect on the quality of the warranty ance coverage, provision of free "loaner" cars work performed for the lessor by the automobile while the leased vehicle is being repaired, sale of dealer that sells it.85 Proponents further argue that auto accessories, sale and purchase of used ve- they have not overestimated residual values, and hicles, and generally keeping abreast of market offer examples from their own experience to demdevelopments to assure consumers that they re- onstrate that their estimates have been reasonceive the best possible price. The opponents argue able.86 Furthermore, even if such practice had that bank holding companies are either not allowed existed, the Consumer Leasing Act would have to offer these services or, in the case of consumer the effect of severely restricting it. counseling, not qualified, and conclude that hold- The Board believes that consumers should be ing company lessors are not adequately serving allowed to choose between lease plans that provide the needs of their customers.82 differing amounts of additional or incidental serv- The Board concludes that the fact that holding ices and determine how many or how few services companies are not permitted to offer certain serv- to pay for. Such an increase in selection provides ices does not indicate that their participation in positive benefits to the consumer and it is reasonthe market does not lead to greater convenience ably expected that performance by bank holding for the public. The Board regards holding com- companies of the activity will lead to such benepany leasing as representing an alternative to, fits. rather than a replacement of, the type of leasing With further reference to the questions of inperformed by independent lessors. Allowing bank creased convenience and competition, the oppoholding companies to offer leasing services will nents state in response to claims that the indirect create more leasing outlets for the consumer. The leasing programs of bank holding companies benelimination of the limited type of leasing transac- efit small automobile dealers and create additional tion offered by holding companies would be par- sources of leasing services, that any benefits which ticularly undesirable in areas that have no inde- may accrue to dealers that are enabled to engage pendent lessors or whose needs are not adequately in leasing through indirect leasing programs are served by existing independent lessors. undermined to the extent that the same holding The questionable nature of the claim that the company is permitted to engage in direct leasing limited type of leasing offered by holding compa- in competition with the independents.87 Further, nies does not adequately serve the public is em- they contend that the individual dealer in an indiphasized by the fact that holding company leasing rect leasing program is not a separate competitor is intended to be the functional equivalent of an providing an alternative source of leasing services extension of credit. It has not been suggested, for to the consumer because the holding company example, that bank financing of auto sales is funding the indirect leasing program is the only somehow inadequate because it does not include actual competitor.88 the type of services provided by auto dealers. The proponents contend that holding company Thus, the Board concludes that performance of the leasing has markedly increased the number of auto activity by bank holding companies will have dealers that are able to offer leasing and, thus, benefits to the consumer in terms of increased the number of leasing outlets. Seattle-First Naconvenience. tional Bank states that 300 of the approximately The opponents contend that some holding com- 480 new car dealers in the State of Washington panies do not attempt to purchase autos at the utilize its indirect leasing program,89 while Wells lowest available price and consequently, do not Fargo Bank states that in 1975 it was providing offer consumers the full benefits of leasing.83 indirect lease financing through 750 dealerships Conversely, holding companies are said to deceive that wrote a total of 17,000 leases.90 The propoconsumers by offering lower monthly payments on nents argue that were it not for this type of leasing the basis of artificially high residual values with arrangement small dealers would be unable to the result that consumers are required to make a provide auto leasing and the public's alternatives substantial deficiency payment at the end of the would be significantly diminished.91 lease term.84 Proponents contend that some hold- Furthermore, proponents state that holding ing companies purposefully avoid paying the company leasing has not precluded other types of lowest possible price for the automobiles they auto financing; that banking subsidiaries continue Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 Federal Reserve Bulletin • November 1976 to extend credit to finance both new car sales and holding company leasing, whether of the direct the operations of independent lessors.92 Moreover, or indirect type, provides a significant public bendealers that utilize indirect leasing programs re- efit in terms of greater convenience for the comceive their profit more rapidly than is the case with munity to be served, and provides a benefit in conventional financing.93 They contend that by terms of increased competition. providing an alternative to conventional financing, With regard to the issue of whether holding leasing also allows dealers to garner increased company auto leasing will create gains in effisales.94 Additional public benefits arise through ciency, the opponents contend that bank holding holding company leasing in rural areas that would companies are not leasing experts and therefore otherwise have no leasing outlets.95 Finally, pro- cannot create such gains. Proponents respond that ponents state that in some areas of the country by using the centralized facilities of a bank holding holding company leasing has resulted, or is company, small auto dealers are able to substanexpected to result, in lower costs to con- tially reduce the cost of administering a leasing sumers.96 program and that the resulting savings may be In the Board's judgment, in view of the history passed on to the consumer. of the involvement of banks in the area of con- The Board is of the view that the contention sumer finance, it is unlikely that a holding com- of the opponents that holding companies cannot pany's addition of a direct leasing plan to an create greater efficiencies because they are inexindirect program will have a negative impact on perienced in leasing is dubious in view of the fact dealers participating in the indirect program. that national banks have been permitted to engage Banks have demonstrated that they are prepared in auto leasing since 1963, and many have experito utilize several methods of financing the same ence that can be transferred to their parent holding type of transaction and it seems reasonable to companies. Moreover, holding companies have expect that they will do so in the leasing area also. been involved in the related field of auto finance The record indicates that in practice direct and for decades. Accordingly, the Board concludes indirect methods of holding company leasing are that banks and bank holding companies have had not incompatible.97 Moreover, allowing direct significant experience in the administration of auleasing provides additional locations at which a tomobile leasing and automobile sales financing lease may be obtained and is therefore more con- programs and that gains in efficiency can reasonavenient for the consumer. Direct leasing by bank bly be expected to result from making this experholding companies also adds a completely inde- tise available to small automobile dealers through pendent competitor to the market. indirect leasing programs. The contentions of opponents that auto dealers On the basis of the foregoing, the Board conparticipating in indirect leasing plans are not inde- cludes that automobile leasing is closely related pendent competitors are undermined by the fact to banking or managing or controlling banks. The that dealers may participate in several plans at Board has further determined that performance of once. It does, however, appear reasonable to as- this activity by an affiliate of a holding company sume that dealers involved in only one such plan can reasonably be expected to produce benefits to are not independent competitors and might be the public which outweigh possible adverse effects more accurately described as agents for a particular and that the activity is, therefore, a proper incident holding company. Despite this, it must be noted to banking or managing or controlling banks. The that even in this instance, the holding company Board has therefore determined that bank holding is added to the number of competitors in the companies should be allowed tq continue to conmarket served by the dealer. By participating in duct automobile leasing activities in a manner several indirect leasing programs, the dealer may consistent with the Board's personal property gain a certain degree of independence and addi- leasing regulation. The Board has, however, detional holding companies may become competitors termined in accordance with the above discussion, in the dealer's market area. that it would be appropriate to provide a further More significantly, the large number of leasing definition of the requirement that a lease be on outlets associated with an indirect leasing plan is a nonoperating basis. Accordingly, pursuant to clearly more convenient for the public, particularly Section 4(c) (8) of the Bank Holding Company in areas that cannot support an independent leasing Act, the Board has decided herein to amend its operation. Thus the Board is of the view that bank personal property leasing regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 943 Footnotes: 32Tr., p. 72. 33Tr., p. 11. lrThe Board has considered all submissions of the parties 34Tr., p. 11. to this proceeding. It has considered all suggestions for changes 35Letter from Wells Fargo Bank, p. 13, March 12, 1976. in the Board's existing personal property leasing regulation 36Tr., p. 76. as applied to the lease of automobiles. In this Order, the Board 37Section 184, 90 Stat. 259, 15 U.S.C. 1667(c) (1976). has summarized and dealt specifically with the major arguments 38Tr., p. 48; SW December 15, 1975, p. 8. and suggestions of all parties in adopting a regulation permit- 39SW, April 21, 1976, p. 1. ting bank holding companies to continue to engage in automo- 40Tr., p. 58. bile leasing. To the extent that any arguments and suggestions 41 Tr., pp. 169, 190. opposing the regulation are not treated individually in this 42Tr., pp. 169, 180-81. Order, they have been considered and dismissed as without 43Tr., p. 53. merit. 44Tr., pp. 201-202. 2 See the Board's Order of November 15, 1973, adding 45Tr., pp. 169, 190. courier activities to the list of activities in the Board's Reg. 46Tr., p. 137. Y that are permissible for bank holding companies. 1973 47Tr., p. 224. Federal Reserve Bulletin 892. See also National Courier As- 48ABA, April 23, 1976, p. 1. sociation v. Board of Governors, 516 F. 2d 1229, 1237 (D.C. 49CBA, April 23, 1976, pp. 14-16. Cir. 1975). 50Tr., p. 169. 3Testimony of Professor Bower: Letter, dated March 12, 51 Tr., p. 232; NADA, April 23, 1976, Appendix A; Cali- 1976, pp. 5-8 and Transcript (hereinafter abbreviated Tr.), pp. fornia Doctors Leasing Service, Inc., April 23, 1976. 154-56; California Bankers Assoc. (hereinafter "CBA"), 52Tr., pp. 153, 181, Dick Bullis Car Lease Corp., December March 12, 1976, p. 7. 15, 1975. 4Tr., p. 68; 1975 Federal Reserve Bulletin 414. 53American Imported Automobile Dealers Assoc., April 22, 5Federal Reserve Bank of Chicago December 22, 1976, p. 1976, p. 7. 2, citing 1975 Federal Reserve Bulletin 414. 54SW, December 15, 1975, p. 8. 6Tr., p. 68; Trust Company of Georgia, March 4, 1976, 55Seattle-First National Bank, April 20, 1976, p. 5. and United States National Bank of Oregon, December 22, 56Tr., p. 86. 1975. 57Tr., p. 87. 7CBA, March 12, 1976, p. 1. 58NADA, December 22, 1975, pp. 21-22. 8Tr., p. 66. 59NADA, April 23, 1976, p. 19. 9Fulton Bank, Lancaster, Pennsylvania, December 2, 1975, 60SW, December 15, 1975, p. 8. and Boatman's Bank, St. Louis, Missouri, December 19, 1975. 61 Ibid. 10See, for example, Tr., pp. 6, 8-9, 156-159, 182, 184; 62Tr., p. 222. CBA, March 12, 1976, pp. 8-11. 63Tr., p. 123. 11 See, for example, Tr., pp. 39, 42, 110-119, 220; NADA, 64Tr., p. 153. December 22, 1975, pp. 9-19, Southwest Leasing Corp. 65Tr., p. 196. ("SW"), December 15, 195, pp. 3-4. 66Tr., p. 75. 12Tr., pp. 8-9, 77-78; Seilon, Inc., Toledo, Ohio, December 67Tr., p. 172. 16, 1975. 68Tr., p. 181. 13Tr. pp. 104-106. 69Seattle-First National Bank, March 12, 1976, pp. 18-20. 14Tr., pp. 40, 117-118. 70Tr., pp. 43, 216-218. 15391 F. Supp. 1290 (W.D. Wash. 1975). 71Tr., p. 188. 16Tr., pp. 19, 90, 104, 106, 126. 72NADA, December 22, 1975, pp. 22-23. 17Tr., pp. 11, 45, 56-58, 62, 72, 89, 95, 165, 176, 180. 73Id., pp. 21-23. 18Tr., pp. 11, 176, 180. 74Tr., pp. 42, 58. 19See note 16. 75NADA, April 23, 1976, pp. 19-20. 20 See note 15. 76Tr., pp. 51-52. 2190 Stat. 257, codified as 15 U.S.C. 1667 (1976). 77Tr., p. 12. 22NADA, April 23, 1976, pp. 9-13, and American Imported 78Tr., pp. 8-18, 71-72, 175. Automobile Dealers Assn., April 22, 1976, and SW, April 79Tr., pp. 12, 74, 165, 176, 178. 13, 1976. 80Seattle-First National Bank, April 20, 1976. 23House Report, No. 544, 94th Cong., 1st Sess., 1975; 121 81 Tr., pp. 212-220. Cong. Record, H10308-10312. 82NADA, April 23, 1976, p. 14; SW, December 15, 1976. 23AS. Rep. No. 590, 94th Cong., 2d Sess., 1973. 83Tr., pp. 213-214. 24Tr., p. 31. 84Tr., p. 238. 25The Board believes in light of the "safety factors" used 85Tr., p. 99. by banks and bank holding companies in estimating residual 86Tr., pp. 9, 72. values, it is likely that any deficiency will be less than the 87Tr., p. 114. average of three monthly rental payments. See Tr., pp. 9, 72, 88NADA, April 23, 1976, pp. 18-19. 166. 89Tr., p. 8. 26Tr., pp. 41, 104-105, 111-113, 117-119, NADA, De- 90Tr., p. 173. cember 22, 1975. 91 Seattle-First National Bank, March 12, 1976, pp. 18-20. 27Tr., pp. 8-10, 71-72, Seilon, Inc., supra, and First Hawaii 92Tr., pp. 13, 171-73, 201-202. Bank, December 17, 1975. 93Tr., p. 16. 28Tr., pp. 9, 71, 166, 175, 180. 94Tr., p. 83. 29Tr., pp. 10, 77, CBA, March 12, 1976. 95Tr., p. 80. 30Tr., p. 96. 96Tr., pp. 26, 188. 31 Tr., pp. 165, 176. 97Tr., p. 71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 Federal Reserve Bulletin • November 1976 AMENDMENT TO REGULATION Y must comply" and by adding the following sentence before the last sentence of the paragraph: (1) Effective October 13, 1976, section 225.4(a) * * * This Part is also designed to assure that (6) is hereby amended by adding a new footnote lessees of personal property are given meaningful 4 at the end of paragraph 225.4(a) (6) (iii) to read disclosures of lease terms, to delimit the ultimate as follows: liability of lessees in leasing personal property and Section 225.4—Nonbanking Activities to require meaningful and accurate disclosures of lease terms in advertisements. * * * (а) Activities closely related to banking or man- 3. In paragraph 226.1(b)(1) by inserting a aging or controlling banks. * * * comma after the word "creditors," deleting the word "and" between the words "creditors" and "credit" and inserting the words "and lessors" (б)(a) Leasing personal property or acting as between the words "issuers" and "is." agent, broker or adviser in leasing such property 4. By amending paragraph 226.1(c) to read as provided: follows: (c) Penalties and liabilities. Section 112 of the Act provides criminal liability for willful and (iii) the lease is on a nonoperating basis;4 knowing failure to comply with any requirement (2) As an incident to this amendment, footnotes imposed under the Act and this Part. Section 134 4 to 12 are redesignated 5 to 13. provides for criminal liability for certain fraudulent activities related to credit cards. Section 130 pro- 4For purposes of the leasing of automobiles, the requirement vides for civil liability in individual or class actions that the lease be on a nonoperating basis means that the bank for any creditor or lessor who fails to comply with holding company may not, directly or indirectly, provide for the servicing, repair or maintenance of the leased vehicle any requirement imposed under Chapter 2, Chapduring the lease term; purchase parts and accessories in bulk ter 4 or Chapter 5 of the Act and the corresponding or for an individual vehicle after the lessee has taken delivery of the vehicle; provide for the loan of an automobile during provisions of this Part. Section 130 also provides servicing of the leased vehicle; purchase insurance for the creditors or lessors a defense against civil and lessee; or provide for the renewal of the vehicle's license criminal liability under Sections 130 and 112 for merely as a service to the lessee where the lessee could renew the license without authorization from the lessor. any act done or omitted in good faith in conformity with the provisions of this Part or any interpreta- Truth in Lending tion thereof by the Board, or with any interpretations or approvals issued by a duly authorized The Board of Governors has adopted amend- official or employee of the Federal Reserve Sysments to Regulation Z implementing the Consumer tem, notwithstanding that after such act or omis- Leasing Act of 1976 (41 FR 28313). sion has occurred, such rule, regulation, interpre- Effective March 23, 1977, Part 226 is amended tation or approval is amended, rescinded or otheras follows: wise determined to be invalid for any reason. Section 226.1— Section 130 further provides that a multiple failure to disclose in connection with a single account or Authority, Scope, Purpose, etc. single consumer lease shall permit but a single 1. By revising the last sentence of paragraph recovery. Section 115 provides for civil liability 226.1(a)(1) to read as follows: for an assignee of an original creditor where the (a)(1) * * * Except as otherwise provided original creditor has violated the disclosure reherein, this Part, within the context of its related quirements and such violation is apparent on the provisions, applies to all persons who are credi- face of the instrument assigned, unless the assigntors, as defined in paragraph(s) of § 226.2, and ment is involuntary. Section 185(b) provides for in the case of consumer leases, as defined in civil liability under § 130 for any lessor who fails paragraph (mm) of § 226.2, to all persons who to comply with any requirement imposed under are lessors, as defined in paragraph (oo) of § § 184 to any person who suffers actual damage 226.2. from the violation. Pursuant to § 108 of the Act, 2. In paragraph 226.1(a)(2) by inserting the violations of the Act or this Part constitute violawords "and consumer lease" between the words tions of other Federal laws which may provide "Advertising of consumer credit" and "terms further penalties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 945 Section 226.2 is amended as follows: or arranges for the leasing of personal property under a consumer lease. Section 226.2— (pp) Personal property means any property Definitions and Rules of Construction which is not real property under the law of the State where is is located at the time it is offered 1. In paragraph (d) by inserting the words "or or made available for lease. lessee or prospective lessee" between the words (qq) Realized value means (1) the price re- "prospective customer" and "in." ceived by the lessor for the leased property at 2. By amending paragraph 226.2(h) to read as disposition, (2) the highest offer for disposition, follows: or (3) the fair market value at the end of the lease (h) Arrange for the extension of credit or for term. lease of personal property means to provide or (rr) Total lease obligation equals the total of offer to provide consumer credit or a lease which (1) the scheduled periodic payments under the is or will be extended by another person under lease, (2) any nonrefundable cash payment rea business or other relationship pursuant to which quired of the lessee or agreed upon by the lessor the person arranging such credit or lease and lessee or any trade-in allowance made at (1) Receives or will receive a fee, compensaconsummation, and (3) the estimated value of the tion, or other consideration for such service, or leased property at the end of the lease term. (2) Has knowledge of the credit or lease terms (ss) Value at consummation equals the cost and participates in the preparation of the contract to the lessor of the leased property including, if documents required in connection with the extenapplicable, any increase or markup by the lessor sion of credit or the lease. It does not include prior to consummation. honoring a credit card or similar device where no finance charge is imposed at the time of that Section 226.3 is amended by adding a new § transaction. 226.3(f) to read as follows: 3. In paragraph 226.2(jj) by deleting the word Section 226.3— "and" after the words "consumer loan" and Exempted Transactions adding the words "and 'lease' to mean 'consumer lease' " after the words "consumer credit transac- (f) Certain lease transactions. Lease transaction." tions of personal property which are incident to 4. In paragraph 226.2(kk) by inserting the words the lease of real property and which provide that "or a lessor and lessee" between the words "cus- (1) the lessee has no liability for the value of the tomer" and "irrespective." property at the end of the lease term except for 5. By adding the following after paragraph abnormal wear and tear, and (2) the lessee has 226.2 (11): no option to purchase the leased property. (mm) Consumer lease means a contract in the Section 226.6 is amended as follows: form of a bailment or lease for the use of personal property by a natural person primarily for per- Section 226.6— sonal, family or household purposes, for a period General Disclosure Requirements of time exceeding four months, for a total contractual obligation not exceeding $25,000, whether 1. By adding a new § 226.6(b)(3) to read as or not the lessee has the option to purchase or follows: otherwise become the owner of the property at the (b)(3)(i) A State law which is similar in nature, expiration of the lease. It does not include a lease purpose, scope, intent, effect or requisites to a which meets the definition of a credit sale in § section of Chapter 5 of the Act is not inconsistent 226.2(t), nor does it include a lease for agricul- with the Act or this Part within the meaning of tural, business or commercial purposes or one § 186(a) of the Act if the lessor can comply with made to an organization. the State law without violating this Part. If a lessor (nn) Lessee means a natural person who leases cannot comply with a State law without violating under, or who is offered, a consumer lease. a provision of this Part which implements a section (oo) Lessor means a person who in the ordinary of Chapter 5 of the Act, such State law is inconcourse of business regularly leases, offers to lease sistent with the requirements of the Act and this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 Federal Reserve Bulletin • November 1976 Part within the meaning of § 186(a) of the Act and the creditor or lessor has made a reasonable and is preempted. effort to ascertain it, the creditor or lessor may (ii) A State, through its Governor, Attorney use an estimated amount or an approximation of General, or other appropriate official having pri- the information, provided the estimate or approximary enforcement or interpretative responsibilities mation is clearly identified as such, is reasonable, for its consumer leasing law, may apply to the is based on the best information available to the Board for a determination that the State law offers creditor or lessor and is not used for the purpose greater protection and benefit to lessees than a of circumventing or evading the disclosure recomparable provision(s) of Chapter 5 of the Act quirements of this Part. and its implementing provisions(s) in this Part, or Notwithstanding the requirement of this parais otherwise not inconsistent with Chapter 5 of the graph that the estimate be based on the best infor- Act and this Part, or for a determination with mation available, a lessor is not precluded in a respect to any issues not clearly covered by § purchase option lease from understating the esti- 226.6(b)(3)(i) as to the consistency or inconsis- mated value of the leased property at the end of tency of a State law with Chapter 5 of the Act the term in computing the total lease obligation or its implementing provisions in this Part. as required in § 226.15(b)(15)(i). 2. In paragraph 226.6(c) by inserting the words 4. By revising the footnote to paragraph 226.6 "or lessor's" between the words "creditor's" and (g) to read as follows: "option" and by inserting the words "or lessee" between the words "customer" and "or" in the 6Such acts, occurrences, or agreements include the failure of the customer or lessee to perform his obligations under the first sentence, and by inserting the words "or contract and such actions by the creditor or lessor as may be lessor" between the words "creditor" and "who proper to protect his interests in such circumstances. Such elects" in the second sentence. failure may result in the liability of the customer or lessee to pay delinquency charges, collection costs, or expenses of 3. By revising paragraphs 226.6 (d), (e) and the creditor or lessor for perfection or acquisition of any (f) to read as follows: security interest or amounts advanced by the creditor or lessor on behalf of the customer or lessee in connection with insur- (d) Multiple creditors or lessors; joint discloance, repairs to or preservation of collateral. sure. If there is more than one creditor or lessor in a transaction, each creditor or lessor shall be 5. In paragraph 226.6 (i) by inserting the words clearly identified and shall be responsible for "or lessor" between the words "creditor" and making only those disclosures required by this Part "for" in the first sentence and between the words which are within his knowledge and the purview "creditor" and "shall" in the last sentence. of his relationship with the customer or lessee. If two or more creditors or lessors make a joint Section 226.10 is amended by redesignating the disclosure, each creditor or lessor shall be clearly introductory text of § 226.10(a) as § 226.10(a)(1), identified. The disclosures required under para- § 226.10(a)(1) as § 226.10(a)(l)(i) and § graphs (b) and (c) of § 226.8 shall be made by 226.10(a)(2) as § 226.10(a)(l)(ii), and by adding the seller if he extends or arranges for the extennew §§ 226.10(a)(2), 226.10(g) and 226.10(h). sion of credit. Otherwise disclosures shall be made Section 226.10 reads as follows: as required under paragraphs (b) and (d) of § 226.8 and paragraph (b) of § 226.15. Section 226.10— (e) Multiple customers or lessees; disclosure Advertising Credit and Lease Terms to one. In any transaction other than a credit transaction which may be rescinded under the (a) General rule. *** provisions of § 226.9, if there is more than one (2) No advertisement to aid, promote or assist customer or lessee, the creditor or lessor need directly or indirectly any consumer lease may state furnish a statement of disclosures required by this that a specific lease of any property at specific Part to only one of them other than an endorser, amounts or terms is available unless the lessor comaker, guarantor, or a similar party. usually and customarily leases or will lease such (f) Unknown information estimate. If at the property at those amounts or terms. time disclosures must be made, an amount or other (b) Catalogs and multi-page advertisements. item of information required to be disclosed, or If a catalog or other multiple-page advertisement needed to determine a required disclosure, is un- sets forth or gives information in sufficient detail known or not available to the creditor or lessor to permit determination of the disclosures required Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 947 by this section in a table or schedule of credit or tain such additional disclosures, provided it clearly lease terms, such catalog or multiple-page adver- and conspicuously refers to a sign or display which tisement shall be considered a single advertisement is prominently posted in the lessor's showroom. provided: Such sign or display shall contain a table or (1) The table or schedule and the disclosures schedule of those items of information to be dismade therein are set forth clearly and conspic- closed under § 226.10(g). uously; and (2) Any statement of credit or lease terms ap- Section 226.12 is amended to read as follows: pearing in any place other than in that table or Section 226.12—Exemption schedule of credit or lease terms clearly and conof Certain State Regulated Transactions spicuously refers to the page or pages on which that table or schedule appears, unless that state- (a) Exemption for State regulated transacment discloses all of the credit or lease terms tions. In accordance with the provisions of Suprequired to be stated under this section. For the plements II, IV, V, and VI to Regulation Z, any purpose of this subparagraph, cash price is not a State may make application to the Board for excredit term. emption of any class of transactions within the State from the requirements of Chapters 2, 4 or 5 of the Act and the corresponding provisions of (g) Advertising of consumer leases. No ad- this Part, Provided that: vertisement to aid, promote or assist directly or (1) The Board determines that under the law indirectly any consumer lease shall state the of that State, that class of transactions is subject amount of any payment, the number of required to requirements substantially similar to those impayments, or that any or no downpayment or other posed under Chapter 2 or Chapter 4 of the Act, payment is required at consummation of the lease or both, or under Chapter 5, and the corresponding unless the advertisement also states clearly and provisions of this Part; or in the case of Chapter conspicuously each of the following items of in- 4, the consumer is afforded greater protection than formation as applicable: is afforded under Chapter 4 of the Act, or in the (1) That the transaction advertised is a lease. case of Chapter 5, the lessee is afforded greater (2) The total amount of any payment such as protection and benefit than is afforded under a security deposit or capitalized cost reduction Chapter 5 of the Act, and required at the consummation of the lease, or that (2) There is adequate provision for enforceno such payments are required. ment. (3) The number, amounts, due dates or periods (b) Procedures and criteria. The procedures of scheduled payments, and the total of such and criteria under which any State may apply for payments under the lease. the determination provided for in paragraph (a) of (4) A statement of whether or not the lessee this section are set forth in Supplement II to has the option to purchase the lease property and Regulation Z with respect to disclosure and reat what price and time. The method of determining scission requirements (sections 121-131 of Chapter the price may be substituted for disclosure of the 2), Supplement IV with respect to the prohibition price. of the issuance of unsolicited credit cards and the (5) A statement of the amount or method of liability of the cardholder for unauthorized use of determining the amount of any liabilities the lease a credit card (sections 132-133 of Chapter 2), in imposes upon the lessee at the end of the term Supplement V with respect to fair credit billing and a statement that the lessee shall be liable for requirements (sections 161-171 of Chapter 4) and the difference, if any, between the estimated value in Supplement VI with respect to consumer leasing of the lease property and its realized value at the (sections 181-186 of Chapter 5). end of the lease term, if the lessee has such liability. (h) Multiple-item leases; merchandise tags. If A new section 226.15 is added to read as a merchandise tag for an item normally included follows: in a multipe-item lease sets forth information Section 226.15—Consumer Leasing which would require additional disclosures under § 226.10(g), such merchandise tag need not con- (a) General requirements. Any lessor shall, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 Federal Reserve Bulletin • November 1976 accordance with § 226.6 and to the extent appli- the lessor or manufacturer with respect to the cable, make the disclosures required by paragraph leased property. (b) of this section with respect to any consumer (8) An identification of the party responsible for lease. Such disclosures shall be made prior to the maintaining or servicing the leased property toconsummation of the lease on a dated written gether with a brief description of the responstatement which identifies the lessor and the lessee, sibility, and a statement of reasonable standards and a copy of such statement shall be given to for wear and use, if the lessor sets such standards. the lessee at that time. All of the disclosures shall (9) A description of any security interest, other be made together on either than a security deposit disclosed under § (1) The contract or other instrument evidencing 226.15(b)(2), held or to be retained by the lessor the lease on the same page and above the place in connection with the lease and a clear identificafor the lessee's signature; or tion of the property to which the security interest (2) A separate statement which identifies the relates. lease transaction. (10) The amount or method of determining the In any lease of multiple items, the description amount of any penalty or other charge for delinrequired by § 226.15(b)(1) may be provided on quency, default or late payments. a separate statement or statements which are in- (11) A statement of whether or not the lessee corporated by reference in the disclosure statement has the option to purchase the leased property and, required by § 226.15(a). if at the end of the lease term, at what price, and, (b) Specific disclosure requirements. In any if prior to the end of the lease term, at what time lease subject to this section the following items, and the price or method of determining the price. as applicable, shall be disclosed: (12) A statement of the conditions under which (1) A brief description of the leased property, the lessee or lessor may terminate the lease prior sufficient to identify the property to the lessee and to the end of the lease term and the amount or lessor. method of determining the amount of any penalty (2) The total amount of any payment, such as or other charge for early termination. a refundable security deposit paid by cash, check (13) A statement that the lessee shall be liable or similar means, advance payment, capitalized for the difference between the estimated value of cost reduction or any trade-in allowance, appro- the property and its realized value at early termipriately identified, to be paid by the lessee at nation or the end of the lease term, if such liability consummation of the lease. exists. (3) The number, amount and due dates or pe- (14) Where the lessee's liability at early termiriods of payments scheduled under the lease and nation or at the end of the lease term is based the total amount of such periodic payments. on the estimated value of the leased property, a (4) The total amount paid or payable by the statement that the lessee may obtain at the end lessee during the lease term for official fees, regis- of the lease term or at early termination, at the tration, certificate of title, license fees or taxes. lessee's expense, a professional appraisal of the (5) The total amount of all other charges, indi- value which could be realized at sale of the leased vidually itemized, payable by the lessee to the property by an independent third party agreed to lessor, which are not incuded in the periodic by the lessee and the lessor, which appraisal shall payments. This total includes the amount of any be final and binding on the parties. liabilities the lease imposes upon the lessee at the (15) Where the lessee's liability at the end of end of the term, but excludes the potential dif- the lease term is based upon the estimated value ference between the estimated and realized values, of the leased property: required to be disclosed under § 226.15(b)(15)(i). (i) The value of the property at consummation (6) A brief identification of insurance in con- of the lease, the itemized total lease obligation at nection with the lease including (i) if provided or the end of the lease term, and the difference paid for by the lessor, the types and amounts of between them. coverages and cost to the lessee, or (ii) if not (ii) That there is a rebuttable presumption that provided or paid for by the lessor, the types and the estimted value of the leased property at the amounts of coverages required of the lessee. end of the lease term is unreasonable and not in (7) A statement identifying any express warran- good faith to the extent that it exceeds the realized ties or guarantees available to the lessee made by value by more than three times the average pay- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 949 ment allocable to a monthly period, and that the is extended for not more than six months on a lessor cannot collect the amount of such excess month-to-month basis or otherwise. liability unless the lessor brings a successful action Credit by Banks for the Purpose in court in which the lessor pays the lessee's of Purchasing or Carrying Margin Stocks attorney's fees, and that this provision regarding the presumption and attorney's fees does not apply Notice of additional postponement of effective to the extent the excess of estimated value over date of adoption of revised Federal Reserve Form realized value is due to unreasonable wear or use, U-l, "Statement of Purpose of a Stock-Secured or excessive use. Extension of Credit by a Bank." (iii) A statement that the requirements of § Pursuant to the authority of Section 7 of the 226-15(b)(15)(ii) do not preclude the right of a Securities Exchange Act (15 U.S.C. 78g), the willing lessee to make any mutually agreeable final Board of Governors, on August 21, 1976 (41 F.R. adjustment regarding such excess liability. 35477), published notice of postponement of the (c) Renegotiations or extensions. If any exist- effective date of Federal Reserve Form U-l, ing lease is renegotiated or extended, such rene- "Statement of Purpose of a Stock-Secured Extengotiation or extension shall be considered a new sion of Credit by a Bank," until November 1, lease subject to the disclosure requirements of this 1976. Because questions relating to operational Part, except that the requirements of this paragraph difficulties in complying with certain requirements shall not apply to (1) a lease of multiple items of revised Form U-l which were raised by some where a new item(s) is provided or a previously banks require further review and consideration, the leased item(s) is returned, and the average pay- Board hereby postpones the effective date of the ment allocable to a monthly period is not changed revision to January 1, 1977 in order to permit by more than 25 per cent, or (2) a lease which sufficient time to address these questions. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS Orders Under Section 3 Applicant, a nonoperating corporation with no of Bank Holding Company Act subsidiaries, was organized for the purpose of becoming a bank holding company through the Charter Clarendon Bancorporation, Inc., acquisition of Bank. Bank holds deposits of $31.4 Northfield, Illinois million1 and is the 173rd largest bank in the Chicago banking market,2 controlling approxi- Order Approving mately 0.08 per cent of the total deposits in com- Formation of Bank Holding Company mercial banks in the market. Upon acquisition of Charter Clarendon Bancorporation, Inc., Bank, Applicant would control approximately Northfield, Illinois has applied for the Board's 0.05 per cent of the total commercial deposits in approval under § 3(a)(1) of the Bank Holding the State of Illinois. Company Act (12 U.S.C. § 1842(a)(1)) of forma- Principals of Applicant are also affiliated with tion of a bank holding company through acquisi- three other one-bank holding companies in the tion of 80 percent or more of the voting shares Chicago market that control the Bank of Wheaton, of Bank of Clarendon Hills, Clarendon Hills, the Bank of Northfield, and the Bank of Winfield, Illinois ("Bank"). respectively. These three banks are, respectively Notice of the application, affording opportunity nine miles northwest, 24 miles north and 13 miles for interested persons to submit comments and northwest of Bank and there are several intervenviews, has been given in accordance with § 3(b) ing alternative banking organizations between of the Act. The time for filing comments and views Bank and each of them. The aggregate of Bank's has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. *A11 banking data are as of June 30, 1975. 2 The Chicago banking market is approximated by Cook § 1842(c)). County, DuPage County, and portions of Lake County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 Federal Reserve Bulletin • November 1976 deposits and the deposits of these three banks effective date of this Order, unless such period amounts to less than 0.5 per cent of the commer- is extended for good cause by the Board, or by cial bank deposits in the market. Accordingly, the Federal Reserve Bank of Chicago pursuant to consummation of the proposal would not appear delegated authority. to eliminate any significant existing or potential By order of the Board of Governors, effective competition nor would it significantly increase the October 26, 1976. concentration of banking resources in the market. Voting for this action: Chairman Burns and Gover- Therefore, competitive considerations are consistnors Gardner, Wallich, Coldwell, Jackson, Partee, and ent with approval of the application. Lilly. The Board has previously stated that it would (Signed) GRIFFITH L. GARWOOD, apply multibank holding companies standards in assessing the managerial and financial resources [SEAL] Deputy Secretary of the Board. of an applicant seeking to become a one-bank holding company where the principals of the ap- Stepp, Inc., plicant are engaged in establishing a series or chain Mission Hills, Kansas of one-bank holding companies.3 The three other one-bank holding companies and their respective Order Approving Formation of Bank Holding subsidiary banks with which Applicant's principals Company and Deferring Action on Retention of are associated appear to be in satisfactory condi- A. F. Stepp Investments, Inc. tion, which suggests that Applicant's principals Stepp, Inc., Mission Hills, Kansas has applied would conduct the operations of the proposed for the Board's approval under § 3(a)(1) of the holding company and of Bank in a satisfactory Bank Holding Company Act (12 U.S.C. § manner. In addition, Applicant has committed to 1842(a)(1)) to become a bank holding company inject $400,000 in new capital funds into Bank through acquisition of 65 per cent of the voting within sixty to ninety days after consummation of shares of Quindaro Bancshares, Inc., Kansas City, the proposal. Although Applicant will incur some Kansas ("Quindaro"), a one-bank holding comdebt in connection with this proposal, it appears pany that owns 83.3 per cent of the shares of that income from Bank will provide sufficient Arrowhead State Bank of Kansas City, Kansas revenue to service the debt adequately without City, Kansas ("Bank"). Quindaro is solely enadversely affecting the financial condition of either gaged in holding shares of Bank. Applicant has Applicant or Bank. Accordingly, considerations also applied pursuant to § 4(c)(8) of the Act (12 relating to the financial and managerial resources U.S.C. § 1843(c)(8)) for permission to retain and future prospects of Applicant and Bank are shares of A. F. Stepp Investments, Inc., a comconsistent with and lend some weight in favor of pany engaged in government securities underwritapproval. ing activities. Such activities have not heretofore Although consummation of the transaction been determined by the Board by regulation to be would have no immediate effect on area banking closely related to banking. needs, considerations relating to the convenience Notice of the applications, affording opportunity and needs of the community to be served are for interested persons to submit comments and consistent with approval of the application. It is vieews, has been given in accordance with §§3 the Board's judgment that consummation of the and 4 of the Act (41 Federal Register 14334). proposed transaction would be consistent with the The time for filing comments and views has expublic interest and that the application should be pired, and the Board has considered the applicaapproved. tions and all comments received in light of the On the basis of the record, the application is factors set forth in § 3(c) of the Act and the approved for the reasons summarized above. The considerations specified in § 4(c)(8) of the Act. transaction shall not be made (a) before the thir- Applicant is a corporation that presently controls tieth calendar day following the effective date of one subsidiary, A. F. Stepp Investments, Inc., this Order or (b) later than three months after the Kansas City, Missouri ("Stepp Investments"). The purpose of the proposed transaction is to effect a transfer of ownership of shares of Quindaro from Applicant's sole shareholder to Applicant. Bank 3 See the Board's Order of June 14, 1976 denying the has total deposits of approximately $12.8 million, application of Nebraska Banco, Inc., Ord, Nebrasks (62 Fed. representing 0.3 per cent of total deposits in the Res. Bulletin 638 (1976)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 951 Kansas City banking market,1 and is the 90th 20, 1976, announced its decision not to adopt the largest banking organization in that market.2 Since proposed amendment at the present time and to Applicant has no existing subsidiary banks and the suspend temporarily further consideration of the proposal represents merely a restructuring of the activity, either by order or by regulation. The existing ownership of Quindaro, consummation of reasons for that decision are summarized in that the proposed transaction would not have any ad- Statement. verse effects on existing or potential competition, Consistent with its decision to suspend action nor would it increase the concentration of banking on the general activity, the Board hereby defers resources or have an adverse effect upon other consideration of Applicant's application under banks in the relevant market. Accordingly, the section 4(c)(8) of the Act, for a period of twelve Board concludes that competitive considertions are months, unless prior to that time actions of the consistent with approval of the application. Municipal Securities Rulemaking Board lead the The financial and managerial resources and fu- Board in its judgment to reconsider the deferral ture prospects of Applicant, which are dependent of action on the general activity. upon those same factors as they apply to Bank Notwithstanding the decision to defer action on and Stepp Investments, are regarded as generally the general activity, the application of Stepp, Inc., satisfactory and consistent with approval. Accord- to become a bank holding company is approved ingly, considerations relating to the banking fac- for the reasons summarized herein.3 The acquisitors are regarded as consistent with approval of tion of shares of Quindaro shall not be made (a) the application. Although consummation of the before the thirtieth calendar day following the proposal would have no immediate effect on the effective date of this Order; nor (b) later than three banking services offered by Bank, considerations months after the effective date of this Order unless relating to the convenience and needs of the com- such period is extended for good cause by the munity to be served are consistent with approval Board or by the Federal Reserve Bank of Kansas of the application. It is the Board's judgment that City pursuant to delegated authority. consummation of the proposed transaction, to the By order of the Board of Governors, effective extent it relates to acquisition of shares of Quin- October 22, 1976. daro, would be consistent with the public interest Voting for this action: Vice Chairman Gardner and and that the application to that extent should be Governors Wallich, Cold well, Jackson, Partee, and approved. Lilly. Absent and not voting: Chairman Burns. Applicant has also applied to the Board to retain (Signed) GRIFFITH L. GARWOOD, shares of Stepp Investments, a company that en- [SEAL] Assistant Secretary of the Board. gages in underwriting and dealing in such obligations of the United States, obligations of various States and of political subdivisions thereof and 3 Under section 4(a)(2) of the Act, Applicant may, in any other obligations that State member banks of the event, retain shares of Stepp Investments for two years after the date Applicant becomes a bank holding company. The Federal Reserve System may from time to time Board is authorized, upon application by Applicant, to extend be authorized to deal in under sections 24 (Para- the two-year period from time to time for not more than one graph Seventh) and 335 of Title 12 of the United year at a time if, in the Board's judgment, such an extension would not be detrimental to the public interest. Such extensions States Code. By notice of proposed rulemaking may not in the aggregate exceed three years. published in the Federal Register on April 10, 1974, (39 F.R. 13007), the Board of Governors proposed to add this activity to the list of activities Union Holding Company, that it has determined to be "so closely related Halliday, North Dakota to banking or managing or controlling banks as to be a proper incident thereto" (§ 225.4(a) of Order Denying Formation the Board's Regulation Y). The Board, on October of Bank Holding Company Union Holding Company, Halliday, North Dakota, has applied for the Board's approval under § 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) of formation of a bank 1 The Kansas City banking market is approximated by Johnson and Wyandotte Counties in Kansas, and Clay, Jackson, holding company through acquistion of 80 per cent and Platte Counties, and the northern half of Cass County in (or more) of the voting shares of The Union Bank, Missouri. 2All banking data are as of December 31, 1975. Halliday, North Dakota ("Bank"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 Federal Reserve Bulletin • November 1976 Notice of the application, affording opportunity turns. Based upon the Board's analysis of Bank's for interested persons to submit comments and operating history, Applicant's financial projections views, has been given in accordance with § 3(b) appear to be overly optimistic, and in the Board's of the Act. The time for filing comments and views view Applicant's debt servicing requirements has expired, and the Board has considered the would result in a further deterioration of Bank's application and all comments received in light of present capital position and would tend to limit the factors set forth in § 3(c) of the Act (12 U.S.C. Applicant's ability to act as a source of financial § 1842(c)). strength to Bank in the future. In concluding that Applicant is a nonoperating corporation organ- Applicant's debt servicing requirement would ized for the purpose of becoming a bank holding constitute an undue strain on Bank, the Board has company through the acquisition of Bank. Upon not disregarded certain commitments made by acquisition of Bank, Applicant would hold . 13 per Applicant's principals to contribute to Bank the cent of the total deposits in commercial banks in commission income earned from credit life and North Dakota. Bank, with deposits of approxi- credit health and accident insurance during the mately 3.9 million,1 is the smaller of two banking debt amortization period by their individorganizations in the relevant banking market2 and ually-owned insurance agency. While these conhold 42 per cent of market deposits. Inasmuch as tributions would provide some assistance, it is the this proposal represents essentially a reorganiza- Board's view that they would not significantly tion of existing ownership interests whereby the lighten the proposed debt burden of Applicant. principals of Bank will shift the ownership of Bank Accordingly, on the basis of its analysis of the to a corporation owned by them, the acquisition facts of record, the Board finds that considerations of Bank by Applicant would have no significant relating to financial and managerial resources and adverse effects upon either existing or potential future prospects weigh against approval of the competition within the relevant market. application. The Board has indicated on previous occasions Although Applicant indicates that some minor that it believes that a holding company should improvements in Bank's services will result from constitute a source of financial and managerial the proposed transaction, the Board does not view strength to its subsidiary bank(s), and that the such considerations as lending any significant Board will closely examine the condition of an weight toward approval of the application, and in applicant in each case with this consideration in any event they do not outweigh the adverse finanmind. The principals of Applicant acquired control cial and managerial considerations that the Board of Bank in 1969 and the record indicates that the finds present in the proposal. overall condition of Bank has declined somewhat On the basis of the circumstances concerning under their management since that time. In view this application, the Board concludes that the of the history of Bank's operations under the banking considerations involved in this proposal management of Applicant's principals and inas- present adverse factors bearing upon the managemuch as no management changes are contemplated rial and financial resources and future prospects by Applicant in connection with this proposal, the of both Applicant and Bank. Such adverse factors Board is unable to conclude that managerial con- are not outweighed by any procompetitive effects siderations are consistent with approval. or by benefits that would result in better serving With respect to financial considerations, the the convenience and needs of the community. Board notes that Applicant would incur a sizable Accordingly, it is the Board's judgment that the debt in connection with the proposed acquisition. application should be denied. Applicant proposes to service this debt over a On the basis of the facts of record, the applica- 12-year period through dividends declared by tion is denied for the reasons summarized above. bank, as well as cash payments made by Bank By order of the Board of Governors, effective and retained by Applicant to the extent that they October 20, 1976. represent savings from filing consolidated tax re- Voting for this action: Vice Chairman Gardner and Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. 1A11 banking data are as of December 31, 1975. 2 The relevant banking market is approximated by Dunn (Signed) GRIFFITH L. GARWOOD, County. [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 953 Utica Agency, Inc., individuals, and Applicant has no banking subsid- Utica, Kansas iaries, consummation of the proposal would eliminate neither existing nor potential competition, Order Approving Formation of Bank Holding nor would it increase the concentration of banking Company and Retention of Credit-Related Insur- resources or have an adverse effect on other banks ance Activities in the relevant market. Two principals of Appli- Utica Agency, Inc., Utica, Kansas ("Appli- cant also have ownership interests in Consolidated cant") has applied for the Board's approval under Insurance, Inc., a one-bank holding company in section 3(a)(1) of the Bank Holding Company Act Hill City, Kansas. The subsidiary bank of this (12 U.S.C. § 1842(a)(1)), to become a bank hold- holding company does not compete with Bank ing company through the acquisition of 80 per cent because it is located in a separate banking market, or more of the voting shares of The Citizens State sixty-five miles from Bank. Accordingly, compet- Bank of Utica, Utica, Kansas ("Bank"). The itive considerations are consistent with approval factors that are considered in acting on this appli- of the application. cation are set forth in § 3(c) of the Act (12 U.S.C. The financial and managerial resources and fu- § 1842(c)). Applicant has also applied, pursu- ture prospects of Applicant, which are largely ant to Section 4(c)(8) of the Act (12 U.S.C. dependent upon those of Bank, are considered § 1843(c)(8)) and section 225.4(b)(2) of Regulation generally satisfactory and consistent with ap- Y, for permission to retain its credit-related insur- proval. The debt to be incurred by Applicant ance agency activities which are presently con- appears to be serviceable from the income to be ducted through Horn Insurance Agency upon the derived from its insurance operations and from premises of Bank. Such activities have been de- Bank without having an adverse effect on the termined by the Board to be closely related to financial condition of either Applicant or Bank. banking (12 C.F.R. § 225.4(a)(9)(ii)(a)). Therefore, considerations relating to banking factors are regarded as being consistent with ap- Notice of the applications, affording an opporproval. tunity for interested persons to submit comments and views, has been given in accordance with Although consummation of the transaction would effect no changes in the banking services sections 3 and 4 of the Act (41 Federal Register 24429). The time for filing comments and views offered by Bank, considerations relating to the has expired, and the applications and all comments convenience and needs of the community to be received have been considered in light of the served are consistent with approval. It has been factors set forth in section 3(c) of the Act (12 determined that consummation of the proposal to U.S.C. § 1842(c)), and the considerations speci- form a bank holding company would be consistent fied in section 4(c)(8) of the Act (12 U.S.C. § with the public interest and the application should 1843(c)(8)). be approved. In connection with the application to become Applicant is a corporation recently formed for a bank holding company, Applicant also proposes the purposes of becoming a bank holding company to retain the credit-related insurance agency busithrough the acquisition of Bank and of conducting ness that operates on Bank's premises. Prior to credit-related insurance activities. Upon acquisi- Applicant's purchase of the agency, it was tion of Bank (deposits of $2.8 million), Applicant operated as a sole proprietorship by one of Bank's would control the 559th largest bank in Kansas, officers. Applicant's retention of the business holding approximately .03 of one per cent of total deposits in commercial banks in the State.1 Bank would result in the continued provision of a convenient source of insurance services to residents is the smallest of four banks operating in the of the Utica area, which factor is in the public relevant banking market, which is approximated interest. There is no evidence in the record indiby Ness County, and controls approximately 10.0 cating that retention of the insurance agency busiper cent of total market deposits. Inasmuch as the ness would result in any undue concentration of purpose of the transaction is to facilitate the resources, unfair competition, conflicts of interest, transfer of the ownership interests of Bank from unsound banking practices, or other adverse efindividuals to a corporation owned by the same fects on the public interest. Based on the foregoing and other considerations XA11 banking data are as of December 31, 1975. reflected in the record, it has been determined that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 Federal Reserve Bulletin • November 1976 the considerations affecting the competitive factors applications and all comments received in light of under section 3(c) of the Act and the balance of the factors set forth in § 3(c) of the Act (12 U.S.C. the public interest factors set forth in section § 1842(c)). 4(c)(8) both favor approval of Applicant's propos- In June of 1972, Applicant, a one-bank holding als. company by virtue of its ownership of 31 per cent Accordingly, the applications are approved for of the outstanding voting shares of Bank, acquired the reasons summarized above. The acquisition of an additional 8 per cent of Bank's shares without Bank shall not be made before the thirtieth calen- the Board's prior approval.1 Applicant now seeks dar day following the effective date of this Order the Board's approval to retain these shares and or later than three months after the effective date to acquire an additional 16.9 per cent of Bank's of this Order, unless such period is extended for stock. Bank ($28.4 million in deposits) is the 28th good cause by the Board, or by the Federal Re- largest banking organization in Colorado, controlserve Bank of Kansas City pursuant to delegated ling 0.38 per cent of the total deposits in commerauthority. The determination as to Applicant's cial banks in the State.2 insurance activities is subject to the conditions set Bank ranks 16th in the Denver banking market forth in section 225.4 of Regulation Y and to the (which is approximated by Adams, Arapahoe, authority of the Board of Governors to require Denver and Jefferson Counties and the city of reports by, and make examinations of, holding Broomfield) and holds 0.74 per cent of market companies and their subsidiaries and to require deposits.3 As Applicant has no other banking subsuch modifications or termination of the activities sidiaries, and the proposal involves only the reof a bank holding company or any of its subsidi- tention and acquisition of additional stock interests aries as the Board finds necessary to assure com- in Bank, which, at all times pertinent hereto, was pliance with the provisions and purposes of the controlled by Applicant, approval of the applica- Act and the Board's regulations and orders issued tion will not result in any adverse competitive thereunder, or to prevent evasion thereof. effects. It will eliminate neither existing nor po- By order of the Secretary of the Board, acting tential competition, nor increase the concentration pursuant to delegated authority from the Board of of banking resources in any relevant area. Thus, Governors, effective October 21, 1976. competitive considerations are consistent with approval of the application. (Signed) GRIFFITH L. GARWOOD, The financial and managerial resources and fu- [SEAL] Assistant Secretary of the Board. ture prospects of Applicant and Bank are satisfactory and it appears that Applicant will be able to service the debt associated with this application Bank Land Company, while adequately maintaining Bank's capital posi- Denver, Colorado tion. Thus, banking factors are consistent with approval. Order Approving Acquisition and There is no indication that the convenience and Retention of Stock Interests in Bank needs of the community to be served are not Bank Land Company, Denver, Colorado ("Ap- currently being met. Although there will be no plicant"), a bank holding company within the meaning of the Bank Holding Company Act ("Act"), has applied for the Board's approval under § 3(a)(3) of the Act (12 U.S.C. § *It appears from the facts of record that the acquisition of the shares of State Bank was based on a misunderstanding 1842(a)(3)) to acquire an additional 16.9 per cent of the applicable statutes and regulations relating to the acquiof the outstanding voting shares of Southwest State sition of the voting stock of banks by bank holding companies. Applicant took prompt action to comply with the Act by Bank, Denver, Colorado ("Bank"), and to retain applying for Board approval upon being advised that its actions 8 per cent of the outstanding voting shares of constituted a violation of the Act. In accord with the Board's Bank. position with respect to violations of the Act, the Board has scrutinized the underlying facts surrounding the acquisition of Notice of the applications, affording opportunity the shares of State Bank. Upon examination of all the facts for interested persons to submit comments and of record, the board is of the view that the facts surrounding views, has been given in accordance with § 3(b) the violation are not such as would call for denial of the application. of the Act. The time for filing comments and views 2As of December 31, 1975. has expired, and the Board has considered the 3As of March 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 955 immediate increase in the services offered by of the Act. The time for filing comments and views Bank, convenience and needs considerations are has expired, and the Board has considered the consistent with approval. Therefore, it is the application and all comments received in light of Board's judgment that the retention and acquisition the factors set forth in § 3(c) of the Act (12 U.S.C. of the shares of Bank would be in the public § 1842(c)). interest and that the applications should be ap- Applicant, a one-bank holding company, presproved. ently owns 31.6 per cent of the shares of Bank.2 On the basis of the record, the applications are Bank, with total deposits of approximately $10.3 approved for the reasons summarized above. Ac- million,3 controls approximately 0.1 of one per quisition of the shares of Bank shall not be made cent of the total deposits in commercial banks in (a) before the thirtieth calendar day following the Oklahoma and is the only bank in the relevant effective date of this Order or (b) later than three banking market, which is approximated by the months after the effective date of this Order, unless boundaries of Johnston County in south-central such period is extended for good cause by the Oklahoma. Applicant proposes to acquire 485 Board, or by the Federal Reserve Bank of Kansas shares, or 48.5 percent of the shares, of Bank from City pursuant to authority hereby delegated. the family that controls Applicant and Bank and By order of the Board of Governors, effective also requests permission to retain 15 shares of November 1, 1976. Bank that were acquired withour prior approval of the Board. Because the Applicant's proposal Voting for this action: Chairman Burns and Goverinvolves the acquisition and retention of shares of nors Gardner, Wallich, Coldwell, Jackson, Partee, and a bank that it already controls, consummation of Lilly. the proposal would eliminate no existing or poten- (Signed) RICHARD D. ABRAHAMSON, tial competition, nor would it increase the concen- [SEAL] Assistant Secretary of the Board. tration of banking resources. Thus, competitive considerations are consistent with approval of the Bren-Mar Properties, Inc. application. Columbia, Missouri The financial condition, managerial resources, Order Approving Acquisition of Bank and future prospects of Applicant and Bank are regarded as generally satisfactory and consistent Bren-Mar Properties, Inc., Columbia, Missouri with approval of the application. Although there ("Applicant"), a bank holding company within will be no immediate change in the services or the meaning of the Bank Holding Company Act, facilities of Bank as a result of consummation of has applied for the Board's approval under § the proposal, considerations relating to the con- 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to venience and needs of the community to be served retain1 an additional 1.5 percent, and to acquire are consistent with approval of the application. an additional 48.5 percent, of the voting shares Therefore, it is the Board's judgment that the of First State Bank, Tishomingo, Oklahoma proposal is consistent with the public interest and ("Bank"). that the application should be approved. Notice of the application, affording opportunity On the basis of the record, the application is for interested persons to submit comments and approved for the reasons summarized above. The views, has been given in accordance with § 3(b) transaction involving the acquisition of additional shares shall not be made (a) before the thirtieth 1On August 20, 1973, Applicant acquired 24 shares (2.4 calendar day following the effective date of this percent) of Bank without prior Board approval. Applicant subsequently sold 10 of these shares on January 30, 1974. Applicant continues to retain the other 14 shares. On February 4, 1976, Applicant again acquired 1 additional share, without prior Board approval, which it also presently retains. In ac- 2Applicant, a family-owned company, is a "company covcordance with the Board's position with respect to violations ered in 1970," as defined in § 2(b) of the Act and engages of the Act, the Board has scrutinized the underlying facts in the following activities under the exemption in § 4(c)(ii) surrounding the acquisitions of Bank's shares without prior of the Act: (a) the rental of a commercial building in Hobbs, Board approval. Upon an examination of all the facts of record, New Mexcio, currently leased to the U.S. Postal Service, and including commitments made by Applicant that will guard (b) the rental of a one-unit apartment in New York City. against violations of section 3 of the Act in the future, the Applicant also owns 20 shares (2 percent) of the Bank of Board does not believe that the circumstances surrounding the Mountain View, Mountain View, Missouri, located approxiviolations reflect so adversely on the managerial factors as to mately 330 air miles from Bank. constitute grounds for denial of this application. 3All banking data are as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

956 Federal Reserve Bulletin • November 1976 Order nor (b) later than three months after the million) and Constitution Bank (deposits of apeffective date of this Order, unless such period proximately $31.4 million) would increase Appliis extended for good cause by the Board, or by cant's share of State deposits by 0.8 per cent and the Federal Reserve Bank of Dallas pursuant to would not result in a significant increase in the delegated authority. concentration of banking resources in Connecticut. By order of the Board of Governors, effective Constitution Bank and Plainville Bank are both October 5, 1976. located in the Hartford banking market which is the relevant banking market for purposes of ana- Voting for this action: Vice Chairman Gardner and lyzing the competitive effects of these proposals.2 Governors Coldwell, Jackson, Partee, and Lilly. Absent The Hartford banking market is highly concenand not voting: Chairman Burns and Governor Wallich. trated since the two largest banking organizations, (Signed) GRIFFITH L. GARWOOD, Hartford National Corporation and CBT Corpora- [[SEAL] Assistant Secretary of the Board. tion, control 76.8 per cent of total commercial bank deposits and operate 66 offices in the market.3 The third largest banking organization in the mar- Colonial Bancorp, Inc., ket, First Connecticut Bancorp, controls 8.3 per Waterbury, Connecticut cent of market deposits and operates 26 offices in the market. Plainville Bank and Constitution Order Approving Acquisition of Banks Bank, even though they are, respectively, the sixth Colonial Bancorp, Inc., Waterbury, Connecti- and seventh largest of 23 banks located in the cut, a bank holding company within the meaning relevant market, hold respectively only 1.2 and of the Bank Holding Company Act, has applied 1.1 per cent of commercial bank deposits, and for the Board's approval under § 3(a)(3) of the each operates six offices in the market. Applicant Act (12 U.S.C. 1842(a)(3)) to acquire all of the is not represented in the market; however, upon voting shares of The Plainville Trust Company, consummation it would become the fifth largest Plainville, Connecticut ("Plainville Bank"), and banking organization with approximately 2.3 per the successor by merger to Constitution Bank and cent of market deposits and 12 banking offices. Trust Company, Hartford, Connecticut ("Consti- Applicant would not thereby control an undue tution Bank"). The bank into which Constitution percentage of commercial bank deposits in the Bank is to be merged has no significance except Hartford market, nor would consummation of the as a means to facilitate the acquisition of the voting transaction result in a significant increase in the shares of Constitution Bank. Accordingly, the concentration of firms in the market. proposed acquisition of shares of the successor Although Applicant does not operate any offices organization is treated herein as the proposed ac- in the relevant market, an office of one of Appliquisition of the shares of Constitution Bank. cant's subsidiary banks is located 8.5 miles from Notice of the applications, affording opportunity Plainville Bank and derives some of its deposits for interested persons to submit comments and from the Hartford banking market. The amount views, has been given in accordance with § 3(b) of such deposits, however, is not viewed as sigof the Act. The time for filing comments and views nificant. Applicant's banking office closest to has expired, and the Board has considered the Constitution Bank is 18 miles south in a separate applications and all comments received in light of banking market. Thus, it appears on the basis of the factors set forth in § 3(c) of the Act (12 U.S.C. the distances between Banks and Applicant's 1842(c)). banking subsidiaries and other facts of record, that Applicant, the fourth largest banking organi- consummation of the proposals would not result zation in Connecticut, controls two banks with in the elimination of a significant amount of existaggregate deposits of approximately $547 million, ing competition between Applicant and Banks. representing 7.4 per cent of the total deposits in With respect to potential competition between commercial banks in the State.1 Acquisition of Applicant and Banks, the Board notes that the law Plainville Bank (deposits of approximately $30.4 2 The Hartford banking market is approximated by the Hart- 1 Unless otherwise indicated, all banking data are as of ford, New Britain, and Bristol SMSA's plus the towns of December 31, 1975, and reflect bank holding company forma- Somers, Ashford, Lebanon, and Barkhamsted. tions and acquisitions approved as of September 30, 1976. 3A11 market data are as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 957 of the State of Connecticut contains a home office essentially unchanged at approximately $30 milprotection provision which generally prohibits lion for the past several years. This appears to branching into towns where the home office of be due, in part, to the unaggressive branching another commercial bank is located. Applicant's policies of each Bank. In light of their past hisbanking subsidiaries are thus precluded from tories, it is reasonable to conclude that if Banks branching into either Hartford or Plainville; simi- remained independent they would not become siglarly, Constitution and Plainville Banks are pre- nificant competitors. Furthermore, after consumcluded from branching into either Waterbury or mation of the proposal, there would still remain New Haven, the cities where Applicant's two bank other entry vehicles attractive for acquisition by subsidiaries are headquartered. "Open" towns are banking organizations not presently operating in available in the Waterbury and New Haven bank- the Hartford market. The Board views these proing markets but because of the size, resources and posals as an appropriate means whereby Applicant unaggressive branching history of Constitution and would be able to compete more effectively with Plainville Banks, they do not appear to be likely the two largest organizations operating in the marentrants into Applicant's markets. Although the ket. Furthermore, on the basis of the foregoing establishment of a de novo bank in the Hartford and all the facts of record, it is the Board's banking market by Applicant is possible, it is judgment that consummation of the proposed doubtful whether Applicant, by establishing a new transactions would not eliminate a significant bank, could become an effective competitor with amount of existing or potential competition. the market's two largest banking organizations The financial and managerial resources and fuwithin a reasonable period of time. Accordingly, ture prospects of Applicant, its subsidiaries, and on the basis of the above and other facts of record, Banks are regarded as satisfactory and consistent the Board concludes that consummation of the with approval of the applications. Following proposed transaction would not have a signifi- affiliation, Constitution Bank will begin calculatcantly adverse effect on any existing or potential ing interest on deposits on a daily rather than competition between Applicant's subsidiary banks quarterly basis and will offer trust services to its and the banks to be acquired. customers. Plainville Bank will expand its com- To the extent that Constitution Bank and Plain- mercial and industrial banking services. In addiville Bank operate in the same banking market, tion, both Banks will offer a full range of real some existing competition would be eliminated. estate lending services and international banking The principal area in which Constitution Bank and services. By their ability to offer expanded services Plainville Bank compete is in the town of Farm- to businesses and individuals in the Hartford marington. However, deposits in commercial banks ket, Constitution Bank and Plainville Bank should in Farmington account for only 0.68 per cent of be able to compete more effectively with the two the total commercial bank deposits in the Hartford largest banking organizations in the market. banking market. Although both banks operate of- Therefore, convenience and needs considerations fices in Farmington, competition between them has associated with the proposals lend weight in favor been limited by the historical growth and traffic of approval of the subject applications. Accordpatterns of the town. Furthermore, the ability of ingly, it is the Board's judgment that consumma- Constitution Bank's branch to compete has been tion of the proposed transactions would be in the severely hampered by the bankruptcy of the deve- public interest and that the applications should be loper of the complex in which it is located. The approved. effect of the elimination of some existing compe- On the basis of the record, the applications are tition in Farmington is mitigated, to a degree, by approved for the reasons summarized above. The the fact that the two banking organizations that transactions shall not be made (a) before the thirare dominant in the market also have offices in tieth calendar day following the effective date of Farmington, and their combined deposits will ap- this Order or (b) later than three months after the proximate Applicant's. It appears unlikely that any effective date of this order, unless such period is significant additional competition will develop in extended for good cause by the Board, or by the the future between Constitution Bank and Plain- Federal Reserve Bank of Boston pursuant to deleville Bank in light of Connecticut's home office gated authority. protection law and the limited resources of Banks. By order of the Board of Governors, effective The total deposits in each Bank have remained October 22, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 Federal Reserve Bulletin • November 1976 Voting for this action: Vice Chairman Gardner and that consummation of the proposed merger of Governors Wallich, Cold well, Partee, and Lilly. Absent Applicant's three subsidiary banks in Broward and not voting: Chairman Burns and Governor Jackson. County would satisfactorily resolve the capital (Signed) GRIFFITH L. GARWOOD, needs of Sunrise Bank. However, the Board re- [SEAL] Assistant Secretary of the Board. mains concerned that these capital needs be resolved as soon as possible. Therefore, the Board has decided to extend the time for Applicant to effect a final resolution of the capital needs of First Bancshares of Florida, Inc., Sunrise Bank until March 31, 1977, with the firm Boca Raton, Florida understanding that Applicant shall file with the Comptroller of the Currency an appropriate appli- Order Amending Requirement for Injection of cation under the Bank Merger Act (12 U.S.C. Additional Capital into one of Applicant's Sub- 1828(c)) within 30 days from the effective date sidiary Banks in Connection with Acquisition of of this Amended Order. It should be emphasized Shares of Vero Beach National Bank, Vero again that the Board expects Applicant to effect Beach, Florida a final resolution of the capital needs of Sunrise By Order of December 19, 1975, the Board Bank by March 31, 1977, at the very latest, either approved an application of First Bancshares of as a result of the above merger or, if that proposal Florida, Inc. ("Applicant") to acquire shares of is denied by the Comptroller of the Currency, Vero Beach National Bank, Vero Beach, Florida through an equity capital injection of $500,000 ("Vero Beach Bank"). The Board's Order was directly into Sunrise Bank on or before March 31, conditioned upon Applicant injecting $500,000 1977. Further, it should be noted that the Board additional equity capital into one of Applicant's does not contemplate granting any further extenother subsidiary banks, Sunrise American National sions of time, beyond March 31, 1977, within Bank of Fort Lauderdale, Fort Lauderdale, Florida which to provide capital support to Sunrise Bank. ("Sunrise Bank"), within 120 days from the ef- Accordingly, the Board's Order of December 19, fective date of the Board's Order. Subsequently, 1975, is hereby amended for the reasons sum- Applicant was granted extensions of time until marized above. October 19, 1976 within which to inject the addi- By order of the Board of Governors, effective tional capital into Sunrise Bank, and until De- October 15, 1976. cember 19, 1976 within which to acquire shares Voting for this action: Vice Chairman Gardner and of Vero Beach Bank. Governors Coldwell, Jackson, Partee, and Lilly. Absent By letter dated August 2, 1976, Applicant ad- and not voting: Chairman Burns and Governor Wallich. vised that it intended to merge its three existing (Signed) GRIFFITH L. GARWOOD, banking subsidiaries located in Broward County, [SEAL] Assistant Secretary of the Board. Florida, subject to the approval of the Comptroller of the Currency. Under this plan, Sunrise Bank and Southport American National Bank, Fort First City Bancorporation of Texas, Inc., Lauderdale, Florida would become full service branches of the American National Bank and Trust Houston, Texas Company of Fort Lauderdale, Fort Lauderdale, Order Approving Acquisition of Bank Florida. Applicant asserted that the newly-merged bank would have adequate capital ratios, thereby First City Bancorporation of Texas, Inc., Housobviating the necessity for the $500,000 capital ton, Texas, a bank holding company within the injection. In view of the capital improvement to meaning of the Bank Holding Company Act, has Sunrise Bank that would result from the proposed applied for the Board's approval under § 3(a)(3) merger, Applicant requested the Board to with- of the Act (12 U.S.C. § 1843(a)(3)) to acquire draw its condition that acquisition of Vero Beach all of the voting shares (less directors' qualifying Bank be subject to injecting capital into Sunrise shares) of First City Bank—Northeast, N.A., Bank. Houston, Texas ("Bank"). The Board has carefully considered Applicant's Notice of the application, affording opportunity request to withdraw the aforementioned condition. for interested persons to submit comments and Based upon all facts of record, the Board believes views, has been given in accordance with § 3(b) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 959 of the Act. The time for filing comments and views mal, the banking market would remain attractive has expired, and the Board has considered the to de dovo entry, and numerous small and medium application and all comments received in light of sized banks would continue to be available as entry the factors set forth in § 3(c) of the Act (12 U.S.C. vehicles. Accordingly, on the basis of the above § 1842(c)). and other facts of record, the Board concludes that Applicant, the second largest banking organi- consummation of the proposal would have only zation in Texas, controls 25 banks with aggregate slightly adverse competitive effects. deposits of $3.4 billion, representing approxi- The financial and managerial resources and fumately 7.3 percent of the total deposits held by ture prospects of Applicant and its subsidiaries are commercial banks in Texas.1 In addition to its 25 regarded as generally satisfactory and consistent subsidiary banks, Applicant also controls interests with approval.3 The financial and managerial reof less than 25 percent in each of 6 other banks. sources and future prospects of Bank, in the light Acquisition of Bank ($17.4 million in deposits) of the previously failed condition of the predeceswould increase Applicant's share of Statewide sor to Bank and the events surrounding the chardeposits by only 0.04 percent and thereby have tering of Bank, are now regarded as generally no significant effect upon the concentration of satisfactory. Affiliation with Applicant should enbanking resources in Texas. able Bank to insure continuity of banking services Bank is located in a northeast suburb of Houston to the public. Accordingly, the Board regards and ranks 76th out of the 169 banks competing banking factors as lending weight toward approval in the Houston banking market,2 controlling 0.2 of the application. Moreover, affiliation with Appercent of market deposits. Bank is the recently- plicant would enable Bank to utilize Applicant's chartered national bank successor by reorganiza- financial and managerial resources to strengthen tion to Northeast Bank of Houston, Houston, and expand the services provided by Bank. Appli- Texas, which was declared insolvent by the Texas cant will also offer to Bank such specialized serv- Banking Commissioner on June 3, 1976 and or- ices as management and personnel training, loan dered closed. Applicant operates 12 banking sub- servicing and appraisal and investment advice. sidiaries in the Houston banking market and con- Thus, considerations relating to the convenience trols 21.2 per cent of deposits therein. Applicant's and needs of the community to be served lend closest subsidiary to Bank, located in Houston's weight toward approval of the application and in central business district, is approximately 10 miles the Board's view, are sufficient to outweigh any southwest of Bank. Acquisition of Bank by Ap- slight adverse competitive effects that might result plicant would contribute to an increase in Appli- from consummation of the proposal. It is the cant's deposit share in the market. However, after Board's judgment that consummation of the proconsummation of the proposed transaction the four posed acquisition would be in the public interest largest banking organizations would control 56.5 and that the application should be approved. percent of market deposits. Existing competition On the basis of the record, the application is between Applicant and Bank is significantly mini- approved for the reasons summarized above. The mized in view of the competitive strength of Bank, transaction shall not be made (a) before the thirthe distances separating Bank from Applicant's tieth calendar day following the effective date of other subsidiary banks, and the number of inter- this Order or (b) later than three months after the vening independent banking alternatives. Ap- effective date of this Order, unless such period proval of this application would also appear not is extended for good cause by the Board, or by to have significant adverse effects upon potential the Federal Reserve Bank of Dallas pursuant to competition since the anticipated increase in Ap- delegated authority. plicant's share of market deposits would be mini- 3On September 15, 1976, the Board approved Applicant's acquisition of Red Bird National Bank, Dallas, Texas, a proposed new bank. In connections therewith, Applicant sub- XA11 banking data are as of December 31, 1975, and reflect mitted a plan to insure completion, by March 31, 1977, of bank holding company formations and acquisitions approved certain commitments to either divest itself of certain minority as of September 30, 1976. interests in various banks or to acquire complete ownership 2 The Houston banking market is the relevant banking market of these banks within a designated period of time. The Board and is approximated by the Houston RMA, which is comprised relies in part on these undertakings in concluding that considof Harris County and portions of five adjacent counties in erations relating to the managerial factors are consistent with Texas. approval of the instant application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 Federal Reserve Bulletin • November 1976 By order of the Board of Governors, effective politan New York banking market.3 LIT is the October 13, 1976. largest of the commercial banks headquartered in Nassau or Suffolk Counties, and is the sixteenth Voting for this action: Vice Chairman Gardner, and largest of the 122 banking organizations in the Governors Coldwell, Jackson, Partee, and Lilly. Absent relevant market.4 Bank is the forty-second largest and not voting: Chairman Burns and Govenor Wallich. banking organization in the market, controlling .1 (Signed) GRIFFITH L. GARWOOD, percent of deposits in the market. Since December [SEAL] Assistant Secretary of the Board. 31, 1973, its total deposits have decreased from approximately $133 million to approximately $110 million in March of this year, which is lower than LITCO Corporation of New York, the amount of total deposits it held as of December Garden City, New York 31, 1971. This decline appears to be attributable to a conservative competitive reaction to aggres- Order Approving Acquistion of Bank sive competition from New York City-based LITCO Corporation of New York, Garden City, banking organizations. Applicant's acquisition of New York, a bank holding company within the Bank would result in its controlling approximately meaning of the Bank Holding Company Act, has .5 percent of market deposits and would cause it applied for the Board's approval under § 3(a)(3) to rank as the fifteenth largest banking organization of the Act (12 U.S.C. § 1842(a)(3)) to acquire in the market. 100 percent of the voting shares of Long Island The proposed acquisition would reduce existing Bank ("Bank"), Hicksville, New York, the suc- competition within the market, inasmuch as the cessor by conversion of Long Island National service area of Bank falls entirely within the ser- Bank.1 vice area of LIT. Also, there is a possibility that Notice of the application, affording opportunity the acquisition could result in a loss of increased for interested persons to submit comments and future competition between LIT and Bank to the views, has been given in accordance with § 3(b) extent each, if a separate institution, might open of the Act. The time for filing comments and views additional branches in other areas of Nassau and has expired, and the Board has considered the Suffolk Counties. application and all comments received, including Department of Justice has expressed the opinion those of the United States Department of Justice that the proposed acquisition would eliminate ex- ("Department of Justice"), in light of the factors isting competition between LIT and Bank to a set forth in § 3(c) of the Act (12 U.S.C. § significant degree. However, Department of Jus- 1842(c)). tice's analysis appears to be based upon its utili- Applicant, the twenty-fourth largest banking zation of a smaller-than-appropriate market area, organization in the State of New York, controls that is, the Nassau-Suffolk SMS A, within which one bank, Long Island Trust Company ("LIT"), to assess the competitive effects of this proposal. Garden City, New York, with total deposits of In connection with its reconsideration of the appli- $504.3 million, representing approximately .37 cation of LIT to merge with the Bank of Westbury per cent of total deposits in commercial banks in Trust Company, Westbury, New York5 the Board the State.2 Acquisition of Bank (deposits of $115.2 directed the Federal Reserve Bank of New York million) would increase Applicant's share of com- to conduct a comprehensive survey in order to mercial bank deposits in the State of New York assist it in properly determining the relevant bankby .08 percent and, as such, would not have an ing market. Based upon that survey,6 the Board appreciable effect upon the concentration of banking resources in the State. Both LIT and Bank are located in the Metro- 3The Metropolitan New York banking market, which is the relevant market within which to assess the competitive effects of the proposed acquisition, consists of the five boroughs of New York City plus Nassau, Westchester, Putnam, and Rock- 1 Consummation of the subject proposal was contingent upon land Counties and western Suffolk County in New York State, the prior conversion of Long Island National Bank to a New as well as the northern two-thirds of Bergen County and eastern York State chartered bank. On September 3, 1976, the Super- Hudson County in New Jersey, plus southwestern Fairfield intendent of Banks of the State of New York approved the County in Connecticut. conversion and the conversion has now been completed. 4 Market deposit data are as of June 30, 1975, adjusted for 2All banking data, unless otherwise indicated, are as of structural changes through July 6, 1976. December 31, 1975. 5Both banks were headquartered in Nassau County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 961 determined that the Metropolitan New York area market. Applicant's acquisition of Bank would was the appropriate market in which the competi- remove home-office protection from the commutive consequences of that proposal should be de- nity of Hicksville, currently provided by the protermined.7 visions of section 105 of the Banking Law of the Banks located outside the Nassau-Suffolk State of New York, and thus would open that SMSA have a substantial impact on competition community to de novo branching. The Metrowithin that area, and constitute a convenient alter- politan New York banking market is not highly native source of banking services for customers, concentrated and considering the large number of large and small, within the area. While immediate banking alternatives available to the residents and and direct competition between LIT and Bank businesses in the Nassau County area, the loss of occurs in Nassau and Suffolk Counties, use of only one alternative through this acquisition is not this area in measuring the total present and poten- viewed as a significantly adverse competitive contial competitive consequences of the instant acqui- sequence. Accordingly, for the reasons sumsition would ignore major market forces that bear marized above the Board concludes that consumon the question of the significance of the elimina- mation of the proposed acquisition would not have tion of such competition. New York City banks significant anticompetitive effects. are permitted to branch throughout the New York The financial and managerial resources and fuportion of the Metropolitan New York area, and ture prospects of Applicant, its subsidiaries, and Nassau County banks, such as LIT and Bank, may Bank are regarded as generally satisfactory and also branch into New York City. In major respects, consistent with approval. Applicant's acquisition Nassau County banks are significantly influenced of Bank will have the procompetitive effect of in their service rates and terms by those set by providing new services to Bank's customers, inthe New York City banks. A large proportion of cluding day-of-deposit-to-day-of-withdrawal savthe working population of Nassau County com- ings accounts, overdraft checking, one-statement mutes daily to New York City. These commuters banking, individual retirement accounts, and busitend to utilize banking services convenient to their ness savings accounts. The Board concludes, places of business; even non-commuters tend to therefore, that considerations relating to the conuse to some extent either banks outside the County venience and needs of the communities to be or banks within that have offices in New York served clearly outweigh the slight anticompetitive City. It is the Board's view that the Metropolitan effects of the proposal. Accordingly, it is the New York area is the appropriate banking market Board's judgment that the proposed acquisition within which the competitive effects of this pro- would be in the public interest and that the appliposal should be determined. cation should be approved. Although Applicant's acquisition of Bank would On the basis of the record, the application is eliminate some existing competition and would approved for the reasons summarized above. The eliminate the possibility of future competition be- transaction shall not be made (a) before the thirtween LIT and Bank, the elimination of such tieth calendar day following the effective date of competition is not regarded as significant in the this Order or (b) later than three months after the context of the banking structure in the relevant effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of New York pursuant to authority hereby delegated. 6The manner in which the survey was conducted and the By order of the Board of Governors, effective results thereof are discussed in the Board's Statement accom- October 18, 1976. panying the Board's Order on Petition for Reconsideration in the matter of the application of Long Island Trust Company for approval of merger with Bank of Westbury Trust Company, Westbury, New York, 56 Federal Reserve BULLETIN 769 (1970). Voting for this action: Vice Chairman Gardner and 7Although at that time the Metropolitan New York banking Governors Wallich, Coldwell, Jackson, Partee, and market consisted only of the five boroughs of New York City Lilly. Absent and not voting: Chairman Burns. plus Nassau and Westchester Counties, that banking market has grown since 1970 to encompass also Putnam, Rockland and western Suffolk Counties in New York State, and portions of both New Jersey and Connecticut. In 1970 and today Nassau County was and is deemed to be part of the Metropolitan New (Signed) GRIFFITH L. GARWOOD, York banking market. [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 Federal Reserve Bulletin • November 1976 The Royal Trust Company; ary,4 which provides data processing and other Royal Trust Bank Corp., related services to financial institutions located in Montreal, Quebec, Canada Florida and operates as a computer service bureau for the storing and processing of banking, finan- Order Approving Acquisition of Bank cial, and other related economic data. Through its three subsidiary banks, Applicant controls aggre- The Royal Trust Company, Montreal, Quebec, gate deposits of $108.6 million, representing ap- Canada ("Applicant"), and its wholly-owned proximately four-tenths of one per cent of the total subsidiary, Royal Trust Bank Corp., Miami, deposits held by commercial banks in Florida.5 Florida (' 'Corp.''), both of which are bank holding Consummation of the subject proposal would incompanies within the meaning of the Bank Holdcrease Applicant's share of State commercial bank ing Company Act, have applied for the Board's deposits by approximately one-tenth of one per approval under § 3(a)(3) of the Act [12 U.S.C. cent and would not have a significant effect upon § 1842(a)(3)] to acquire 51 per cent or more of the concentration of banking resources in the State. the voting shares of Worth Avenue National Bank, Palm Beach, Florida ("Bank").1 Inasmuch as Bank (with deposits of $27 million) is the 12th largest of the 19 banking organizations (controlling Corp. is a wholly-owned subsidiary of Applicant, 40 banks) in the West Palm Beach banking market6 the proposed acquisition of Bank by Applicant and and holds approximately two per cent of the mar- Corp. is treated herein as a proposed acquisition ket's total commercial bank deposits. Applicant by Applicant. is not currently represented in the relevant market Notice of the application, affording opportunity and its closest banking subsidiary to Bank is lofor interested persons to submit comments and cated approximately 75 miles south of Bank. There views, has geen given in accordance with § 3(b) does not appear to be any existing competition of the Act. The time for filing comments and views between Bank and any of Applicant's present has expired, and the Board has considered the banking and nonbanking subsidiaries and, in view proposal and all comments received, including of the distances involved, it does not appear likely those of the Comptroller of the Currency,2 in light that any significant competition would develop in of the factors set forth in § 3(c) of the Act [12 the future. While Applicant could enter the rele- U.S.C. § 1842(c)]. vant market de novo, in view of Bank's relative Applicant, with total assets of $3.4 billion (as size and its market position, the Board views the of December 31, 1975) is the largest trust company proposed acquisition of Bank as a foothold entry and the eighth largest financial institution in Canby Applicant into the market. Such a foothold ada, and operates, through its subsidiaries and entry by Applicant should have a salutary effect other interests, in both Europe and the Caribbean upon competition among the banking organi- Islands. In the United States, Applicant controls zations in the relevant market by enabling Bank three banks3 and operates one nonbank subsidito compete more effectively in that market. Therefore, on the basis of the facts of record, the 1 Applicant currently controls The Royal Trust Bank of Miami, N.A., Miami, Florida; Dale Mabry State Bank, 4Information Systems Design of Florida, Inc., Miami, Tampa, Florida; and The First Bank of Gulf port, Florida. On Florida ("ISD-Florida"), is a subsidiary of Information Sys- March 1, 1976, pursuant to the Federal Reserve Bank of tems Design, Inc., Santa Clara, California ("ISD-California"), Atlanta's approval of a § 3(a)(1) application, Applicant trans- which is owned by Computel Systems, Ltd. ("Computer'), ferred its controlling interest in Royal Trust Bank of Miami a Canadian computer company. By Order of December 6, to a newly-formed, wholly-owned Florida subsidiary, Royal 1973, the Board denied Applicant's retention of ISD-California Trust Bank Corp., itself a registered bank holding company. after Applicant's acquisition of Computel [38 Federal Register Applicant also contemplates similar transfers in the future with 34514 (1973); 60 Federal Reserve BULLETIN 58 (1974)]. respect to both Dale Mabry State Bank and The First Bank ISD-California is engaged in non-permissible data processing of Gulf port in order to enable Corp. to hold directly all of activities while ISD-Florida is engaged in permissible data Applicant's banking interests in the United States. Such processing activities. The Board granted Applicant a two-year transfers would require the Board's prior approval under § period, after its acquisition of Computel, within which to divest 3(a)(3) of the Bank Holding Company Act. itself of ISD-California. The Board is currently reviewing a 2By letter dated September 9, 1976, to the Board, the plan of divestiture that has been submitted by Applicant. Comptroller recommended approval of the proposal. 5All banking data are as of December 31, 1975, unless 3See footnote 1. Corp., with total assets of $100,000, has otherwise indicated. no financial history because it was incorporated on November 6 The West Palm Beach banking market is approximated by 3, 1975 and did not become a bank holding company until the upper two-thirds of Palm Beach County's eastern coastal March 1, 1976. area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 963 Board concludes that consummation of the pro- Bank Holding Company Act ("Act"), has applied posal would not have any significant adverse ef- for the Board's approval, under § 4(c)(8) of the fects upon either existing or potential competition Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2)) in any relevant area, and that competitive consid- of the Board's Regulation Y ( 12 CFR § erations are consistent with approval of the appli- 225.4(b)(2)), to retain the lending activities encation. gaged in by its wholly-owned subsidiary, Main The financial and managerial resources and fu- Plaza Corporation, San Antonio, Texas ("Comture prospects of Applicant, its subsidiary banks pany). Such activities, consisting of making or and Bank are regarded as satisfactory. In addition, acquiring for its own account or for the account Applicant has committed itself to make a capital of others loans or extensions of credit, have been contribution of $600,000 to Bank after consum- determined by the Board to be closely related to mation of this proposal. Therefore, considerations banking (12 CFR § 225.4(a)(1)). relating to banking factors are consistent with Notice of the application, affording opportunity approval of the application. Although no signifi- for interested persons to submit comments and cant changes are contemplated in Bank's services, views on the public interest factors, has been duly affiliation of Bank with Applicant would provide published (41 Federal Register 29040). The time Bank with access to Applicant's financial and for filing comments and views has expired, and managerial resources, thereby enhancing Bank's the Board has considered the application and all ability to service the community. Thus, consid- comments received in the light of the public intererations relating to the convenience and needs of est factors set forth in § 4(c)(8) of the Act (12 the community to be served are consistent with U.S.C. § 1843(c)(8)). approval of the application. It is the Board's judg- Applicant, the tenth largest banking organiment that the proposed acquisition would be in zation in Texas, controls five banks with aggregate the public interest and that the application should deposits of approximately $687 million, reprebe approved. senting 0.5 per cent of the total deposits in com- On the basis of the record, the application is mercial banks in the State.1 approved for the reasons summarized above. The In acting on applications submitted pursuant to transaction shall not be made (a) before the thir- § 4(c)(8) of the Act, the Board analyzes an applitieth calendar day following the effective date of cation to continue to engage in § 4(c)(8) activities this Order or (b) later than three months after the by the same standards that it analyzes an applicaeffective date of this Order, unless such period tion to acquire a company engaged in such activiis extended for good cause by the Board, or by ties. In addition, the Board analyzes the competithe Federal Reserve Bank of Atlanta pursuant to tive effects of a proposal both at the time of the delegated authority. acquisition and at the time of application for re- By order of the Board of Governors, effective tention. Company was formed on May 1, 1973, October 29, 1976. concurrently with the reorganization of Applicant's predecessor, Frost Realty Company, San Voting for this action: Chairman Burns and Gover- Antonio, Texas ("Frost Realty"),2 for the purpose nors Gardner, Wallich, Coldwell, Partee, and Lilly. of holding certain assets and engaging in certain Absent and not voting: Governor Jackson. activities of Frost Realty.3 Included in the activi- (Signed) GRIFFITH L. GARWOOD, ties transferred to Company were the above-de- [SEAL] Deputy Secretary of the Board. Orders Under Section 4 of 1A11 banking data are as of December 31, 1975. Bank Holding Company Act 2 The reorganization of Frost Realty and formation of Company occurred without prior approval of the Board. However, FrostBank Corporation, the Board has examined the facts surrounding these transactions and believes that those facts do not call for denial of the San Antonio, Texas application to retain the lending activities of Company. 3At the same time, Frost Realty transferred the assets of Order Approving Lending Data Processing Center, San Antonio, Texas, to Company. Activities of Main Plaza Corporation On November 12, 1973, the Board approved the application of Applicant to retain those assets and thereby continue to engage in performing financially-related data processing activ- FrostBank Corporation, San Antonio, Texas, a ities under § 4(c)(8) of the Board's Regulation Y (12 CFR bank holding company within the meaning of the § 225(a)(8)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 Federal Reserve Bulletin • November 1976 scribed lending activities. Since that transaction the Board's regulations and orders issued was essentially a reorganization of Applicant's thereunder, or to prevent evasion thereof. existing nonbank lending activities, it does not By order of the Board of Governors, effective appear to have had any significant adverse effects October 5, 1976. on competition at that time. Voting for this action: Vice Chairman Gardner and At present, Company's lending activities essen- Governors Coldwell, Jackson, Partee, and Lilly. Absent tially involve making business loans in the San and not voting: Chairman Burns and Governor Wallich. Antonio SMS A.4 Such lending activities include making loans for interim construction, stock ac- (Signed) GRIFFITH L. GARWOOD, quisition and short-term capital working needs. [SEAL] Assistant Secretary of the Board. Company originated $5.3 million of such loans during 1975 and had $3.7 million of such loans Philadelphia National Corporation, outstanding as of December 31, 1975. Applicant's Philadelphia, Pennsylvania subsidiary banks also engage in making business loans and hold approximately $200 million of such Order Approving Acquisition of Additional loans, representing 29.2 per cent of the total busi- Shares of Congress Factors Corporation ness loans held by the 45 banking organizations operating in the relevant market. In view of the Philadelphia National Corporation, Philarelatively small size of Company's lending activi- delphia, Pennsylvania, a bank holding company ties and the number of other competitors,5 it does within the meaning of the Bank Holding Company not appear that the retention of Company's lending Act, has applied.for the Board's approval, under activities by Applicant would have any significant § 4(c)(8) of the Act and § 225.4(b)(2) of the adverse effects on existing or potential competi- Board's Regulation Y, to increase its ownership tion. At the same time, the retention of Company's interest in Congress Factors Corporation ("Conlending activities by Applicant should provide gress"), Philadalphia, Pennsylvania, to 100 per benefits to the public by assuring customers of a cent. Congress, already a subsidiary of Applicant, continued and convenient source for such loans. currently engages in the activities of purchasing Moreover, there is no evidence in the record accounts receivable and making loans secured by indicating that the retention of Company's lending accounts receivable, inventory, machinery and activities would lead to any undue concentration equipment and generally in the factoring and of resources, unfair competition, conflicts of in- commercial finance business. Such activities have terests, unsound banking practices or other adverse been determined by the Board to be closely related effects on the public interest. to banking (12 CFR § 225.4(a)(1)). Based upon the foregoing and other consid- Notice of the application, affording opportunity erations reflected in the record, the Board has for interested persons to submit comments and determined that the balance of the public interest views on the public interest factors, has been duly factors the Board is required to consider under § published (41 Federal Register 34702 (1976)). 4(c)(8) is favorable. Accordingly, the application The time for filing comments and views has exis hereby approved. This determination is subject pired, and the Board has considered the application to the conditions set forth in § 225.4(c) of Regu- and all comments received in the light of the public lation Y and to the Board's authority to require interest factors set forth in § 4(c)(8) of the Act such modification or termination of the activities (12 U.S.C. § 1843(c)(8)). of a holding company or any of its subsidiaries Applicant, the third largest banking organization as the Board finds necessary to assure compliance in Pennsylvania, controls one bank with total dowith the provisions and purposes of the Act and mestic deposits of approximately $2.4 billion,1 representing about 5.5 per cent of the total deposits in commercial banks in the State. On September 11, 1973, the Board approved 4 The San Antonio SMSA approximates the relevant geo- the application by Applicant to retain 80 per cent graphic market for purposes of analyzing the competitive of the voting shares of Congress to be transferred effects of the subject application. 5 It should be noted that other competitors include commercial finance companies, insurance companies and savings and loan associations located outside as well as inside the market area in addition to the market's banking organizations. 1 All banking data are as of December 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 965 from Applicant's subsidiary bank, the Philadelphia By order of the Board of Governors, effective National Bank ("PNB"), Philadelphia, Pennsyl- October 21, 1976. vania.2 Applicant now proposes to acquire indi- Voting for this action: Governors Wallich, Cold well, rectly the remaining shares of Congress through Jackson, Partee, and Lilly. Present and abstaining: Vice the repurchase by Congress of the ownership in- Chairman Gardner. Absent and not voting: Chairman terest currently held by Congress' minority share- Burns. holders. Such repurchase would be pursuant to an (Signed) GRIFFITH L. GARWOOD, agreement between Congress and its minority [SEAL] Assistant Secretary of the Board. shareholders which was entered into in 1968 in connection with PNB's original acquistion of shares of Congress. Horizon Bancorp, When Applicant received approval to retain its Morristown, New Jersey majority ownership interest in Congress, competi- Order Approving Acquisition of Mortgage tive factors were assessed by the Board and were Investment Securities, Inc., and M.I.S.I., Inc. not found to be adverse. Since Applicant currently seeks only to increase its already majority owner- Horizon Bancorp, Morristown, New Jersey, a ship interest in Congress, it does not appear that bank holding company within the meaning of the consummation of the instant proposal would have Bank Holding Company Act, has applied for the an adverse effect on either existing or potential Board's approval, under § 4(c)(8) of the Act (12 competition; nor is there any evidence in the U.S.C. § 1843(c)(8)), to purchase all the outrecord indicating that such consummation would standing shares of stock of Mortgage Investment lead to any undue concentration of resources, Securities, Inc. ("Company"), and its subsidiary, conflicts of interests, unsound banking practices, M.I.S.I., Inc. ("M.I.S.I."), both of Clearwater, or any other adverse effect upon the public interest. Florida, both of which engage in the activities of On the other hand, approval of the application is making and acquiring loans and other extensions likely to assure the continuation of the public of credit as would be made by a mortgage combenefits the Board found to be provided by Appli- pany and servicing loans and extensions of credit cant's original acquisition of Congress. to any person. Each of the above activities has Based upon the foregoing and other considera- been determined by the Board to be closely related tions reflected in the record, the Board has deter- to banking (12 CFR § 225.4(a)(1) and (3)). mined, in accordance with the provisions of § Notice of the application, affording opportunity 4(c)(8) of the Act, that Applicant's increased for interested persons to submit comments and ownership interest in Congress can reasonably be views on the public interest factors has been duly expected to continue to produce benefits to the published (41 Federal Register 30401 and 32688 public that outweigh any possible adverse effects. (1976)). The time for filing comments and views Accordingly, the application is hereby approved. has expired, and the Board has considered the This determination is subject to the conditions set application and all comments received in the light forth in section 225.4(c) of Regulation Y and to of the public interest factors set forth in § 4(c)(8) the Board's authority to require such modification of the Act (12 U.S.C. § 1843(c)(8)). or termination of the activities of a bank holding Applicant, the thirteenth largest banking orgacompany or any of its subsidiaries as the Board nization in New Jersey with deposits of $501.5 finds necessary to assure compliance with the million,1 controls two banks in New Jersey and provisions and purposes of the Act and the Board's one nonbank subsidiary, also in New Jersey, regulations and orders issued thereunder, or to which engages in the activities of equipment fiprevent evasion thereof. nancing and leasing and in second mortgage fi- The transaction shall be made not later than nancing. three months after the effective date of this Order Company, with total assets of $15.4 million as unless such period is extended for good cause by of June 25, 1976, is a wholly-owned subsidiary the Board or by the Federal Reserve Bank of of Branitek, Inc., Oak Brook, Illinois, a subsidiary Philadelphia pursuant to authority hereby dele- of Union Camp Corporation. Its operations are gated. 1 Unless otherwise indicated, all banking data are as of 238 Federal Register 26156 (1973). December 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 Federal Reserve Bulletin • November 1976 limited to the origination, sale, and servicing of ently operates. Thus, the proposal would not mortgage loans, particularly in regard to single eliminate any existing competition between Apfamily residential mortgages. Some commercial plicant and Company nor would any significant mortgages are handled, but only on a brokered potential competition between the two be elimibasis, thus not requiring the commitment of funds nated by approval of the proposal. It does not by Company. Construction loans are minimal. appear that consummation of the proposal would Company does not carry mortgages for its own result in any concentration of resources, conflicts account and they are held no longer than necessary of interests, or other adverse effects on the public to effect delivery in fulfillment of prior commit- interest. ments. M.I.S.I., the only subsidiary of Company, Acquisition of Company and M.I.S.I. by Apwas recently formed solely to provide company plicant will be accompanied by the opening of a with another bidding vehicle for obtaining Federal new office of Company in Morristown, New Jer- National Mortgage Association (FNMA) and sey, and thus would increase the availability of Government National Mortgage Association FHA and VA mortgages in central New Jersey. (GNMA) loan commitments. M.I.S.I. is not an The ownership of a mortgage banking subsidiary operating company and maintains its office of having extensive relationships with institutional record at Company's corporate headquarters in investors and FNMA and GNMA will increase Clearwater, Florida. Applicant's ability to provide additional mortgage Company, a relatively small mortgage banking funds to consumers. The Board also notes that firm with a servicing portfolio of $31.6 million, Applicant has undertaken to add additional capital operates the following 9 offices in 4 states: Clear- to Company.4 water, Auburndale, Fort Lauderdale, and Sarasota, Based on the foregoing and other considerations all in Florida; Atlanta, Georgia; Tucson and reflected in the record, the Board has determined, Phoenix, Arizona; and two offices in Oak Brook, in accordance with section 4(c)(8) of the Act, that Illinois, one of which is purely administrative and consummation of the proposal can reasonably be will be consolidated with Company's new cor- expected to produce benefits to the public that porate headquarters in Clearwater, Florida. outweigh possible adverse effects. Accordingly, Through these offices, Company is represented in the application is hereby approved. This determi- 7 local markets for the origination of residential nation is subject to the conditions set forth in § mortgages.2 225.4(c) of Regulation Y (12 CFR § 225.4(c)) and Applicant currently originates only residential to the authority of the Board to require such mortgages through its banking subsidiaries in New modification or termination of the activities of a Jersey. Neither Applicant nor Company derives holding company or any of its subsidiaries as the any business from the service area of the other. Board may find necessary to assure compliance There is wide geographic separation of their mar- with the provisions and purposes of the Act and ket areas and Applicant lacks expertise in the the Board's regulations or orders issued origination and sale of FHA/VA-insured mort- thereunder, or to prevent evasion thereof. gages which account for approximately one-half The transaction shall be made not later than of Company's originations.3 Also, it appears un- three months after the effective date of this Order likely that Applicant would enter de novo into the unless such period is extended for good cause by mortgage banking business where Company pres- the Board or by the Federal Reserve Bank of New York, pursuant to authority hereby delegated. By order of the Board of Governors, effective October 22, 1976. 2Data indicates that Company's share of mortgage originations is negligible in all markets where it operates except for Voting for this action: Vice Chairman Gardner and commercial mortgages originated in the Sarasota market. Governors Wallich, Coldwell, Partee, and Lilly. Absent However, its share of 27.5 per cent of that market reflects mortgage recordings for a single month and seems unlikely and not voting: Chairman Burns and Governor Jackson. to be a valid indication of Company's market power considering the number of other competitors operating in that market. (Signed) GRIFFITH L. GARWOOD, 3Moreover, in view of the substantial number of other firms [SEAL] Assistant Secretary of the Board. originating real estate loans in each of Company's market areas, including several national mortgage banking firms and local commercial banks and thrift institutions, any foreclosure of potential competition between Applicant and Company 4In addition, Applicant intends to augment the capital of would be insignificant. one of its subsidiary banks and of its nonbank subsidiary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 967 United Bancorp, in the activities of underwriting and dealing in such Roseburg, Oregon obligations of the United States, general obligations of various States and of political subdivisions Order Deferring Consideration of Application thereof and other obligations that State member to Form United Bancorp Municipals, Inc. banks of the Federal Reserve System may from United Bancorp, Roseburg, Oregon, a bank time to time be authorized to deal in under § 24 holding company within the meaning of the Bank (Paragraph Seventh) and § 335 of Title 12 of the Holding Company Act, has applied for the Board's United States Code. By notice of proposed rulemaking published in the Federal Register on April approval, under § 4(c)(8) of the Act (12 U.S.C. 10, 1974, (39 F.R. 13007), the Board of Gover- § 1843(c)(8)) and § 225.4(b)(2) of the Board's nors proposed to add this activity to the list of Regulation Y (12 CFR § 225.4(b)(2)), to form activities that it has determined to be so closely United Bancorp Municipals, Inc., Roseburg, Orerelated to banking or managing or controlling gon, a company that will engage de novo in the banks as to be a proper incident thereto (§ 225.4(a) activities of underwriting and dealing in certain of Regulation Y). In a Statement issued concurgovernment securities. Such activities have not rently with this Order, the Board today announced heretofore been determined by the Board by reguits decision not to adopt the proposed amendment lation to be closely related to banking. at the present time and to defer temporarily further Notice of the application, affording opportunity consideration of the activity, either by order or for interested persons to submit comments and by regulation. The reasons for that decision are views, has been given in accordance with § 4 of summarized in that Statement. the Act (39 Federal Register 13007). The time Consistent with its decision to suspend action for filing comments and views has expired, and on the general activity, the Board hereby defers the Board has considered the application and all consideration of the instant application for a period comments received in light of the public interest of twelve months, unless prior to that time actions factors set forth in § 4(c)(8) of the Act (12 U.S.C. of the Municipal Securities Rulemaking Board § 1843(c)(8)). lead the Board in its judgment to reconsider the Applicant, the twelfth largest banking organideferral of action on the general activity. zation in Oregon, controls one subsidiary bank with aggregate deposits of approximately $40.3 By order of the Board of Governors, effective million, representing about 0.7 per cent of the total October 19, 1976. deposits in commercial banks in the State.1 United Voting for this action: Vice Chairman Gardner and Bancorp Municipals, Inc. would engage de novo Governors Wallich, Coldwell, Jackson, Par tee, and Lilly. Absent and not voting: Chairman Burns. (Signed) THEODORE E. ALLISON, 1 Banking data are as of December 31, 1975. [SEAL] Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING HOLDING COMPANY ACT By the Board of Governors During October 1976, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 Federal Reserve Bulletin • November 1976 Section 3 Board action Federal (effective Register Applicant Bank(s) date) citation Exchange Bancorporation, Security National 10/4/76 41 F.R. 44898 Inc., Tampa, Florida Bank, Lee County 10/13/76 (P.O. Fort Myers), Florida Lisco State Company, Lisco State Bank, 10/1/76 41 F.R. 44473 Lisco, Nebraska Lisco, Nebraska 10/8/76 Peninsula Financial, Inc., First State Bank of 10/27/76 41 F.R. 48611 Sturgeon Bay, Wisconsin Algoma, Algoma, 11/4/76 Wisconsin Sioux National Company, The Sioux National 10/13/76 41 F.R. 46388 Harrison, Nebraska Bank of Harrison, 10/20/76 Harrison, Nebraska Shaw Investment Company, First National Bank 10/20/76 41 F.R. 47601 New Hampton, Iowa in New Hampton, 10/29/76 New Hampton, Iowa The Spalding City Cor- Spalding City Bank, 10/12/76 41 F.R. 45915 poration, Spalding, Spalding, Nebraska 10/18/76 Nebraska Texarkana National Banc- Liberty Eylau State 10/29/76 41 F.R. 49197 shares, Inc., Texarkana, Bank, Texarkana, 11/8/76 Texas Texas Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation Century Financial Corpor- Century Life Insur- 10/5/76 41 F.R. 44897 ation of Michigan, ance Company of 10/13/76 Saginaw, Michigan Michigan, Phoenix, Arizona Southern Bankshares, Charter Insurance 10/12/76 41 F.R. 46060 Inc., Richmond, Managers, Inc., 10/19/76 Virginia Richmond, Virginia By Federal Reserve Banks During October 1976, applications were approved by the Federal Reserve Banks as listed below. The orders have been published in the Federal Register, and copies are available upon request to the Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 969 Section 3 Federal Reserve Effective Register Applicant Bank(s) Bank date citation First Michigan Bank Community State Chicago 10/21/76 41 F.R. 49195 Corporation, Zeeland, Bank of 11/8/76 Michigan Dowagiac, Dowagiac, Michigan First National Finan- The National Chicago 10/8/76 41 F.R. 47111 cial Corporation, Kala- Bank of Luding- 10/27/76 mazoo, Michigan ton, Ludington, Michigan First Midwest Bancorp., Platte Valley Kansas City 10/5/76 41 F.R. 46058 Inc., St. Joseph, Bank, Raven- 10/19/76 Missouri wood, Missouri Deseret Bancorporation, Bank of Pleasant San Francisco 9/29/76 41 F.R. 44897 Pleasant Grove, Utah Grove, Pleasant 10/13/76 Grove, Utah; State Bank of Lehi, Lehi, Utah; Mountain View Bank, American Fork, Utah; and Geneva State Bank of Orem, Orem, Utah Sections 3 and 4 Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Milco Bancorpor- Bank of Iberia, Tritten St. Louis 10/7/76 41 F.R. 46059 ation, Inc., Iberia, Missouri Insurance 10/19/76 Iberia, Missouri Company, Iberia, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 Federal Reserve Bulletin • November 1976 ORDER APPROVED UNDER THE BANK MERGER ACT— Federal Reserve Effective Register Applicant Bank(s) Bank date citation United Jersey Suburban National/ New York 10/1/76 41 F.R. 46061 Bank/Central, A United Jersey 10/19/76 Elizabeth, Bank, South New Jersey Plainfield, New Jersey PENDING CASES INVOLVING THE BOARD OF GOVERNORS* Michigan National Corporation v. Board of April 1976, U.S.C.A. for the District of Governors, September 1976, U.S.C.A. for Columbia Circuit. the 6th Circuit. United States ex rel. A.R. Martin-Trigona v. First Security Corporation v. Board of Gover- Arthur F. Burns, et al., March 1976, nors, filed August 1976, U.S.C.A. for the U.S.D.C. for the District of Columbia. 10th Circuit. Grandview Bank & Trust Company v. Board Anthony R. Martin-Trigona v. Board of Gov- of Governors, filed March 1976, U.S.C.A. ernors, filed August 1976, U.S.C.A. for the for the Eighth Circuit. District of Columbia. Association of Bank Travel Bureaus, Inc. v. First State Bank of Clute, Texas, etal. v. Board Board of Governors, filed February 1976, of Governors, filed July 1976, U.S.C.A. for U.S.C.A. for the Seventh Circuit. the 5th Circuit. Memphis Trust Company v. Board of Gover- International Bank v. Board of Governors, et nors, filed February 1976, U.S.D.C. for the al, filed July 1976, U.S.D.C. for the District Western District of Tennessee. of Columbia. First Lincolnwood Corporation v. Board of North Lawndale Economic Development Cor- Governors, filed February 1976, U.S.C.A. poration v. Board of Governors, filed June for the Seventh Circuit. 1976, U.S.C.A. for the 7th Circuit. International Bank v. Board of Governors, filed Central Wisconsin Bankshares, Inc. v. Board December 1975, U.S.C.A. for the District of of Governors, filed June 1976, U.S.C. A. for Columbia. the 7th Circuit. Roberts Farms, Inc. v. Comptroller of the Cur- A.R. Martin-Trigona v. Board of Governors, rency, etal., filed November 1975, U.S.D.C. et al., filed June 1976, U.S.D.C. for the for the Southern District of California. District of Columbia. National Computer Analysts, Inc. v. Decimus National Urban League, et al. v. Office of the Corporation, et al., filed November 1975, Comptroller of the Currency, et al., filed U.S.D.C. for the District of New Jersey, April 1976, U.S.D.C. for the District of tPeter E. Blum v. First National Holding Cor- Columbia Circuit. poration, filed May 1976, U.S.C.A. for the Fifth Circuit, Farmers & Merchants Bank of Las Cruces, New Mexico v. Board of Governors, filed tPeter E. Blum v. Morgan Guaranty Trust Co., et al., filed April 1976, U.S.C.A. for the Fifth Circuit, tLogan v. Secretary of State, et al., filed Sep- *This list of pending cases does not include suits against tember 1975, U.S.D.C. for the District of the Federal Reserve Banks in which the Board of Governors Columbia. is not named a party. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 971 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 Govof Governors, filed August 1975, actions ernorsdismissed 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 CirtiDavid R. Merrill, et al. v. Federal Open Market cuit. Committee of the Federal Reserve System, East Lansing State Bank v. Board of Goverfiled 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., Curvin I. Trone v. United States, filed April etal. v. Board of Governors, filed September 1975, U.S. Court of Claims. 1973, U.S.D.C. for the District of Columbia. Louis J. Roussel v. Board of Governors, filed Bankers Trust New York Corporation v. Board April 1975, U.S.D.C. for the Eastern District of Governors, filed May 1973, U.S.C.A. for of Louisiana. the Second Circuit. Georgia Association of Insurance Agents, et al. v. Board of Governors, filed October 1974, tDecisions have been handed down in these cases, subject U.S.C.A. for the Fifth Circuit. to appeals noted. $The Board of Governors is not named as a party in this Alabama Association of Insurance Agents, et action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

973 Announcements REGULATION Q: Amendments under the Self-Employed Individuals Tax Retirement Act of 1962, to encourage, by tax benefits, The Board of Governors of the Federal Reserve saving for retirement by self-employed persons. System on November 8, 1976, amended its Regu- The Keogh plan provisions as amended permit a lation Q (Interest on Deposits) to improve the self-employed individual to establish a retirement terms under which member banks may offer Keogh savings plan with a depositary institution and to plan retirement accounts. deposit up to 15 per cent of earned income, or The amendments extend to Keogh (H.R. 10) $7,500 a year, whichever is less, in the account. plan retirement accounts the conditions established The amount deposited may be deducted from the last December for individual retirement accounts individual's income that is subject to Federal tax. (IRA's). The amendments are: The Employee Retirement Income Security Act 1. Member banks may pay all, or a part, of of 1974 permits individuals not covered by a a Keogh plan time deposit (as with an IRA) prior retirement plan to deposit in IRA's up to $1,500, to its maturity, without the usual penalty for early or 15 per cent of gross income, whichever is less. withdrawal from a time deposit, when the deposi- Keogh plans already in existence may be tor reaches the age of 59V2 or becomes disabled. amended to incorporate these changes in Regula- 2. In the case of Keogh plan time deposits (as tion Q requirements. Keogh plan accounts must with IRA's) it is not necessary to have on deposit be established before the end of 1976 in order to a minimum of $1,000 in order to earn the lxk be eligible for tax benefits for the whole year. per cent interest rate available for 4-year time deposits, or the IV2 per cent for 6-year deposits. Similar actions will be taken by the Federal REGULATION Y: Deposit Insurance Corporation (FDIC) for banks Deferred Action on Amendment under its supervision and by the Federal Home Loan Bank Board (FHLBB) for savings and loan The Board of Governors on October 20, 1976, associations. deferred action on a proposal to make underwriting The first of the amendments to Regulation Q and dealing in Federal Government securities and allows avoidance of the loss of interest usually general obligations of States or their subdivisions required when funds are withdrawn before a time (municipal securities) a permissible activity for deposit matures—when, for example, funds in a bank holding companies. It also suspended further 5-year time deposit are withdrawn after 4 years. consideration of applications by bank holding As a result of the amendment, member banks may companies to engage in the activity. distribute the full proceeds of a Keogh account Action was deferred for 12 months unless before in a single payment, or in a series of annuity-like that time actions by the Municipal Securities payments, without penalty, when the distribution Rulemaking Board—created by Congress in 1975 is made in accordance with the Keogh plan agree- to regulate the municipal securities field—make ment between the bank and the depositor. reconsideration appropriate in the Board's judg- The second amendment allows payment of ment. maximum interest rates on amounts smaller than The Board had proposed on April 2, 1974, to $1,000 in recognition of the fact that some depos- add to the list of permissible bank holding comitors may not have that much money to start an pany activities underwriting and dealing in obligaaccount. tions of the United States, general obligations of The Board believes these amendments to Regu- any State and of any political subdivision thereof, lation Q serve the intent of the Congress to en- and other obligations that State member banks are courage self-employed individuals to save for their authorized to underwrite and deal in. Underwriting retirement. and dealing in U.S. Government securities and Keogh (H.R. 10) plan accounts were authorized municipals are common among banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 Federal Reserve Bulletin • November 1976 CONSUMER ADVISORY William D. Warren, Vice Chairman, Los Angeles, California, is Dean of the School COUNCIL: Meetings of Law of the University of California at Los Angeles. He was reporter-draftsman of The Board of Governors has announced that the the Uniform Consumer Credit Code, 1964 initial meetings of its new Consumer Advisory to 1974, and has been a consultant on consumer law and debtor/creditor law to the Council took place November 10 and 11 at the National Commission on Consumer Finance Board. The meetings were open to the public. and various California agencies. Mr. Warren At its first meetings the Council acquainted itself is the author of books and articles concernwith the Board's responsibilities and functions in ing commercial and consumer law. He the area of consumer credit and was asked to taught law at Stanford University and the University of Illinois before joining UCLA. advise the Board on current developments in that field. These include the revision of Regulation B Barbara D. Blum, Atlanta, Georgia, is to implement the amended Equal Credit Opportu- Vice Chairman of the Fulton County Planning Commission and was until recently a nity Act. member of the Atlanta Regional Commis- The Board had announced on September 20 that sion Health and Social Services Advisory Representative Leonor K. Sullivan of Missouri, Board. She has broad experience as chaira long-time sponsor of consumer protection legis- man or member of numerous Statewide lation who is retiring from the Congress in Jan- consumer-oriented organizations. Ms. Blum has also worked in the field of mental health. uary, will head the Council. At the same time, She has a Master of Social Work degree the Board had also announced the names of 25 from Florida State University. other members of the Council, including Dr. Wil- Roland E. Brandel, San Francisco, Caliliam D. Warren, Dean of the School of Law of fornia, is a partner in the law firm of Morrithe University of California at Los Angeles, who son and Foerster. He is a member of the will be Vice Chairman and who will preside until Committee of the American Bar Association Mrs. Sullivan leaves the Congress in January. The on the Regulation of Consumer Credit. He has worked extensively in the field of bank Council members are as follows: credit-card law. He has been visiting pro- Leonor K. Sullivan, Chairman, U.S. fessor of law at the University of California House of Representatives, has been in Con- at Berkeley. Mr. Brandel has written and gress for 24 years, beginning in 1952. She lectured on the subjects of Truth in Lending, was the first woman elected to Congress Fair Credit Billing, Equal Credit Opportufrom Missouri. For 12 years, from 1963 to nity, and Electronic Funds Transfer. 1975, Mrs. Sullivan was Chairman of the Agnes H. Bryant, Detroit, Michigan, is Subcommittee on Consumer Affairs of the Director of the City of Detroit Human Rights House Banking and Currency Committee. Department. She chairs the Michigan Con- She was one of the primary authors of the sumer Council and is vice president of the Consumer Credit Protection Act of 1968, Consumer Research Advisory Council, a which included the Truth in Lending Act. member of the Board of the National Asso- In 1970 Mrs. Sullivan sponsored the Fair ciation for the Advancement of Colored Credit Reporting Act in the House. She was People, a member of the Advisory Council a member of the National Commission on of the Wayne County Consumer Protection Consumer Finance from 1969 to 1972. In Agency, and a former member of the Mich- 1974 Mrs. Sullivan proposed legislation to igan State Advisory Council on Vocational forbid discrimination in the extension of Education. credit on the basis of sex, marital status, race, color, religion, and age. These pro- John G. Bull, Pompano Beach, Florida, posals are now embodied in the Equal Credit is President and Chief Executive Officer of Opportunity Act. Mrs. Sullivan sponsored the Southern BankCard Corporation. He has the Food Stamp Act in 1964. Mrs. Sullivan served two terms as chairman of the bankis currently Chairman of the House Com- card division of the Florida Bankers Associmittee on Merchant Marine and Fisheries, ation and was chairman of the design speciand ranking majority member of the Com- fications committee that developed a committee on Banking, Currency and Housing puter program for descriptive billing in and of that Committee's subcommittees on electronic funds transfer. He has done ex- Housing and Community Development, and tensive work on other aspects of the opera- Consumer Affairs. In addition, she chairs the tion of bank-card systems. Joint Committee of the Congress on Defense Protection and its House Materials Avail- John V. Bullock, Frankfort, Kentucky, is ability Subcommittee. Assistant Attorney General in charge of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 975 Division of Consumer Protection in the Of- Carl Felsenfeld, New York City, New fice of the Attorney General of Kentucky. York, is Vice President of Citicorp in charge He is active in the National Association of of legal aspects of its consumer-related Attorneys General's Consumer Protection operations. He is a member of the Commit- Committee. He was previously an attorney tee on the Regulation of Consumer Credit for the Federal Trade Commission in Cleve- of the American Bar Association and the land, Ohio, and in Washington, D.C. Committee on Consumer Affairs of the New York City Bar Association and is an adjunct Linda M. Cohen, Washington, D.C., is professor of Banking Law at Fordham Uni- Coordinator of the National Credit Task versity. He has served as consultant to the Force of the National Organization for Commissioners on Uniform State Laws in Women and has served as spokesperson and the drafting of the Uniform Consumer Credit lecturer on women and credit for that orga- Code. nization. She has been an attorney-adviser in the General Services Administration since Marcia A. Hakala, Omaha, Nebraska, 1973 and is active in local community orga- was until recently Executive Director of the nizations. Mayor's Commission on the Status of Women for the city of Omaha and is a John R. Coleman, Haverford, Pennsyl- member of a number of other advisory vania, is President of Haverford College and councils and committees working in the Chairman of the Board of Directors of the fields of manpower planning, women in Federal Reserve Bank of Philadelphia. He small business, and problems of older citiis a Trustee and member of the Research zens. She has taught at Illinois State Uniand Policy Committee of the Committee for versity, Cleveland State University, Stout Economic Development. Mr. Coleman was State University, and Indiana University. a member of special CED committees that produced in 1976 statements regarding na- Joseph F. Holt III, Washington, D.C., is tional policy on "Welfare Report and its a consultant to the Federal National Mort- Financing" and "Fighting Inflation and gage Association, where he was formerly Promoting Growth." He is trustee of a National Field Representative with responnumber of educational institutions and was sibility for field operations, especially in the formerly a trustee of the Special Develop- area of discrimination by geographic areas ment Fund of the National Association for (red-lining). Mr. Holt is a former member the Advancement of Colored People. Mr. of the U.S. House of Representatives and Coleman is the author of a number of books was a member of the Education and Labor having to do with economics and labor Committee and served on House subcomproblems. One of his books, Blue Collar mittees responsible for minimum wage leg- Journal (1974), recounts his experiences in islation and Federal aid for education in 1973 when he took leave from his profes- impacted areas. sional occupations to work as a blue-collar laborer. Edna De Coursey Johnson, Baltimore, Maryland, is Director of Consumer Services Robert R. Dockson, Los Angeles, Cali- of the Baltimore Urban League. She is a fornia, is President and chief executive of- member of the President's Consumer Advificer of the California Federal Savings and sory Council. Ms. Johnson is also a member Loan Association. Prior to joining that As- of the Maryland and Virginia Citizens Consociation, he was dean of the undergraduate sumer Councils, the Governor's Commis- School of Business and the Graduate School sion on the Status of Women, and the Board of Business Administration of the University of Directors of Consumers Union of the df Southern California at Los Angeles. Mr. United States. She was formerly a teacher Dockson has received the Human Relations in the Baltimore public schools. Award of the American Jewish Committee and the Brotherhood Award of the National Robert J. Klein, New York City, New Conference of Christians and Jews. York, is a senior editor of Money Magazine. He is a member of the National Advisory Anne G. Draper, Washington, D.C., is Council on Small Claims of the National an economic analyst with the AFL-CIO and Center for State Courts and served from its author of numerous articles, testimony, and inception on the Federal Reserve Board's policy resolutions on consumer matters. She Truth in Lending Advisory Committee serves on advisory councils in the Depart- (which the Consumer Advisory Council rement of Labor and the Bureau of the Census. places). He has been a reporter and editor She was formerly a social research analyst with a number of publications and is the with the Social Security Administration and author of numerous articles concerning conserved as an economist with the National sumer affairs. Mr. Klein has testified on War Labor Board and the Office of Price consumer matters before governmental Controls. committees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 Federal Reserve Bulletin • November 1976 Ralph Lazarus, Cincinnati, Ohio, is E. G. Schuhart, Dalhart, Texas, a farmer Chairman of the Board of Directors of Fed- and rancher, has served as Vice Chairman erated Department Stores, Inc. He is a and member of the Federal Farm Credit Trustee and member of the Research and Board (policy-making board for the Farm Policy Committee of the Committee for Credit System). He has also been a member Economic Development and has been asso- of the Agricultural Stabilization and Conciated with the Stanford Research Institute servation Committee for the State of Texas Council and the Council for Financial Aid and mayor of the City of Dalhart, Texas. to Education. Mr. Lazarus is a Trustee of He has been a director of the Farm Credit Dartmouth College and a member of the Board of Houston and a chairman and Rockefeller University Council, among a member of the stockholders' committee of number of other civic associations. the Federal Land Bank of Houston. He was formerly manager of the Schuhart Grain Percy W. Loy, Portland, Oregon, is Pres- Company. ident of the Kubla Khan Food Company. He is serving his third term as a member of the James E. Sutton, Dallas, Texas, is Secre- District Advisory Council of the Small tary and Corporate Counsel of Chilton Cor- Business Administration, is a member of the poration. Before joining Chilton in 1973, Business Liaison Committee of the Business Mr. Sutton served 3 years as staff attorney School of the University of Oregon, and is and consumer education consultant in the a past president of the Frozen Food Council Texas State Consumer Credit Commission. of Oregon and a past member of the Mar- While in that office, he was charged with keting Advisory Council of the Business enforcing the Texas Credit Code and worked School of the University of Oregon. He is closely with the Federal Truth in Lending a member of the Board of Overseers of Act. Mr. Sutton was also engaged in con- Lewis and Clark College. sumer education programs and participated in the establishment of the Consumer Credit R. C. Morgan, El Paso, Texas, is Pres- Counseling Service of Greater Dallas and ident of the Government Employees Credit Family Debt Counselors of Corpus Christi. Union of El Paso. He is immediate past vice chairman of the National Legislative Forum Anne Gary Taylor, Alexandria, Virginia, and chairman of the Governmental Affairs is a former national president of the Ameri- Committee of the Credit Union National can Association of University Women. For Association. He served three terms as pres- 21 years she was president of Sweet Briar ident of that Association. He has served as College. She has served on the American a member and as chairman of the Credit Council on Education, and was vice chair- Union Advisory Commission for the State man of the Board, and a member of the of Texas and as a member of the Texas Commission on Students and Faculty of the Credit Union Commission. He has testified Association of American Colleges. She was on consumer protection issues before com- one of four educational administrators who mittees of the U.S. Senate and House of arranged for the establishment of the United ; Representatives and regulatory agencies. States-India Women's Colleges Faculty Exchange Program. Reece A. Overcash, Dallas, Texas, is President and chief operating officer of As- Richard D. Wagner, Simsbury, Connectisociates Corporation of North America. He cut, is President of Wagner Ford Sales, has served as president of the National Con- Incorporated. He is a member of the board sumer Finance Association and formerly of directors of the National Automobile served on the board of directors of the North Dealers' Association and is chairman of the Carolina Economic Resources Association. Association's Public and Consumer Affairs He has taught at the National Institute of Committee and director of the Association Consumer Finance at Marquette University for the State of Connecticut. He established and the National Instalment Banking School the Connecticut Automotive Consumer Acat the University of Colorado. tion Panel Program (AUTOCAP). Raymond J. Saulnier, New York City, Richard L. Wheatley, Jr., Stillwater, Ok- New York, is professor emeritus of eco- lahoma, is Chairman and chief executive nomics at Barnard College, Columbia Uni- officer of the University Bank at Stillwater. versity. He is a former chairman of the He was the first Administrator of Consumer President's Council of Economic Advisers Affairs for the State of Oklahoma after the and a former director of the Financial Re- State enacted the Uniform Consumer Credit search Program of the National Bureau of Code, and served as a representative in the Economic Research, where he was respon- State legislature. He has served as consultant sible for studies of consumer instalment with some 30 other State legislatures recredit. He has written extensively in the field garding enactment of the Uniform Consumer of consumer instalment credit. Credit Code in those States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 977 The Council was established, at the Board's ter, New York, and an M.A. from International suggestion, under the amendments to the Equal University of Rome, and is currently a candidate Credit Opportunity Act passed earlier this year. for a doctorate from the University of Southern It will advise and consult with the Board on the California. Board's responsibilities under the Consumer In addition, the Board has announced the fol- Credit Protection Act, which includes Truth in lowing official staff promotions, all effective Oc- Lending, Fair Credit Billing, Equal Credit Oppor- tober 24, 1976: tunity, Fair Credit Reporting, and Consumer Griffith L. Garwood from Assistant Secretary Leasing. In addition, the Board may place before to Deputy Secretary in the Office of the Secretary. the Council any other consumer-related matters, John H. Kalchbrenner from Adviser to Assoincluding matters related to its responsibilities ciate Director in the Division of Research and under the Home Mortgage Disclosure Act and the Statistics. Federal Trade Commission Improvement Act's J. Cortland G. Peret from Assistant Adviser to provisions concerning unfair and deceptive prac- Associate Adviser in the Division of Research and tices in banking. Statistics. Eleanor Stockwell from Associate Adviser to Adviser in the Division of Research and Statistics. CHANGES IN BOARD STAFF The Board of Governors has announced the ap- SYSTEM MEMBERSHIP: pointment of David L. Shannon, Director of Per- Admission of State Bank sonnel at the Federal Trade Commission, as Director, Division of Personnel, effective No- The following bank was admitted to membership vember 15, 1976. in the Federal Reserve System during the period Mr. Shannon has been on the staff of the FTC October 16, 1976, through November 15, 1976: since 1968, prior to which he was associated with Western Specialists, Inc., Denver, Colorado. He Texas holds a B.A. from St. Bernard's College, Roches- Snook First Bank of Snook Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 Industrial Production Released for publication November 15 Durable materials production is estimated to have been reduced somewhat in October, reflect- Industrial production declined by an estimated 0.5 ing weakness in production of steel and other per cent in October to 130.4 per cent of the 1967 metals as well as in component parts for consumer average. The September estimate was revised durable goods. Output of nondurable materials downward and now shows a decline of 0.2 per declined sharply, reflecting reductions in textiles, cent, rather than no change. In October, reductions paper, and chemicals. occurred in output of final products and materials. These reductions include the effects of strikes in the farm equipment and automotive industries; the direct strike effect is estimated to have accounted for somewhat less than one-third of the October decline. Consumer goods production declined 0.7 per cent last month, reflecting widespread cutbacks in both durable and nondurable goods. Auto assemblies, at a 7.7-million-unit annual rate, were about unchanged from September, but utility vehicle production apparently declined somewhat further. Output of home goods, such as appliances, carpeting, and furniture, was reduced somewhat. Production of nondurable consumer goods, particularly clothing, also decreased. Business equipment declined by more than 1 per cent, largely because of strike effects on farm equipment output and, to a lesser extent, on building and mining equipment. Output of construction supplies is estimated to have risen slightly . F.R. indexes, seasonally adjusted. Latest figures: October. *Auto sales and stocks include imports. Seasonally adjusted, 1967 = = 100 PPeerr cceenntt cchhaannggeess ffrroomm—— 1976 IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn July Aug. Sept.p Oct.e M a o g n o t h Y a e g a o r Q2 Q 3 t o Total 130.7 131.3 131.0 130.4 -.5 6.7 1.2 Products, total 129.8 130.4 129.7 129.2 -.4 5.6 .9 Final products 127.6 128.3 127.2 126.5 -.6 4.6 .5 Consumer goods 136.8 137.5 136.1 135.2 -.7 5.1 -.2 Durable goods 141.8 144.1 138.7 136.3 -1.7 3.3 -.9 Nondurable goods 134.8 135.0 135.0 134.7 -.2 5.7 .1 Business equipment 136.9 137.5 137.4 135.9 -1.1 5.5 2.0 Intermediate products 137.6 138.1 139.0 139.0 .0 8.6 2.2 Construction supplies 133.1 134.0 134.8 135.0 .1 10.0 2.9 Materials 132.2 132.9 132.9 132.3 -.5 8.4 1.8 p Preliminary. e 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 AS Maximum interest rates; margin unemployment requirements A9 Open market account A53 Consumer prices A10 Federal Reserve Banks A53 Wholesale prices All Bank debits A54 National product and income A12 Money stock A56 Flow of funds A13 Bank reserves; bank credit A14 Commercial banks, by classes INTERNATIONAL STATISTICS A18 Weekly reporting banks A58 U.S. balance of payments A23 Business loans of banks A59 Foreign trade A24 Demand deposit ownership A59 U.S. reserve assets A25 Loan sales by banks A60 Gold reserves of central banks and A25 Open market paper governments A26 Interest rates A61 International capital transactions A29 Security markets of the United States A29 Stock market credit A74 Open market rates A30 Savings institutions A75 Central bank rates A75 Foreign exchange rates A82 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 BANK RESERVES AND RELATED ITEMS • NOVEMBER 1976 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas- Period or date U.S. Govt, securitiesi Special ury Drawing cur- Gold Rights rency Held Other stock certificate out- Bought under Loans Float F.R. Total 3 account stand- Total out- repur- assets ing right 2 chase agreement Averages of daily figures 1969—De c 57,500 57,295 205 1,086 3.235 2,204 64,100 10,367 6,841 1970—De c 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—De c 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—De c 71,094 70,790 304 1,049 3.479 1,138 76,851 10,410 400 8,293 1973—De c 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—De c 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—Oc t 90,476 89,547 929 191 1,945 3,521 96,931 11,599 500 9,877 Nov 90,934 89,560 1,374 61 2.480 3,481 97,817 11,599 500 10,010 Dec 92,108 91,225 883 127 3,029 3,534 99,651 11,599 500 10,094 1976—Ja n 92,998 91,524 1,474 79 2,684 3,505 100,172 11,599 500 10,177 Feb 94,610 92,812 1,798 76 2,375 3,384 101,369 11,599 500 10,267 Mar 94,880 93,503 1,377 58 2,204 3,412 101,336 11,599 500 10,436 Apr 93,243 92,187 1,056 44 2.236 4,144 100,317 11,599 500 10,501 May 95,967 94,049 1,918 121 2,071 4,051 102,951 11,599 500 10,552 June 95,592 94,289 1,303 120 2,678 4,069 103,106 11,598 530 10,623 July 97,105 96,210 895 123 2,721 4,375 104,799 11,598 700 10,648 Aug 98,458 96,058 2,400 104 2,512 3,739 105,393 11,598 700 10,690 Sept 98,797 96,689 2,108 75 2,880 3,681 105,880 11,598 703 10,737 Oct.? 100,374 98,643 1,731 67 2,804 3,744 107,312 11,598 ,123 10,785 Week ending— 1976—Aug. 4 98,096 95,387 2,709 157 2,450 4,020 105,395 11,598 700 10,658 94,828 94,828 122 2,513 4,239 102,015 11,598 700 10,681 IS.'.'.'.'.'.'.'.'.'.'. 97,336 95,714 1,622 85 2,754 3,587 104,231 11,598 700 10,695 25 101,312 96,996 4,316 68 2,274 3,388 107,745 11,598 700 10,698 Sept. 1 100,655 97,203 3,452 93 2,573 657 107,748 11,598 700 10,702 8 97,388 97,277 111 45 2,441 505 103,645 11,598 700 10,720 15 93,935 93,935 61 3,467 709 101,426 11,598 700 10,735 22 99,629 97,086 2,543 44 3,131 693 107,046 11,598 700 10,741 29 103,069 98,252 4,817 87 2,414 675 109,848 11,598 700 10,753 Oct. 6 102,173 97,708 4,465 101 2,657 3,873 109,436 11,598 800 10,760 13 98,375 97,199 1,176 47 2,596 3,710 105,014 11,598 1,200 10,782 20* 100,173 99,060 1,113 47 3,493 3,643 107,603 11,598 1,200 10,786 100,433 99,923 510 120 2,582 3,750 107,096 11,598 1,200 10,798 27 P Daily figures for— End of month 100,949 96,660 4,289 64 1,984 3,665 107,470 11,598 700 10,645 1976—SAeupgt 103,507 98,405 5,102 322 2,997 3,800 111,464 11,598 800 10,742 102,675 100,035 2,640 45 1,925 3,770 108,752 11,598 1,200 10,810 Oct.? Wednesday 100,262 95,341 4,921 770 3,596 4,088 109,515 11,598 700 10,667 1976—Aug. 4 92,795 92,795 599 3,367 4,209 101,270 11,598 700 10,692 101,719 96,220 5 ] 499 286 3,825 3,105 109,619 11,598 700 10,698 25 100,787 97,607 3,180 73 3,300 4,041 108,750 11,598 700 10,698 Sept. 1 102,282 96.408 5,874 271 3,186 4,528 111,135 11,598 700 10,715 8 97,098 96,320 778 40 2,844 3,622 103,925 11,598 700 10,733 15 94,006 94,006 167 4,283 3,587 102,288 11,598 700 10,738 22 101,363 98.409 2,954 52 3,341 3,669 108,851 11,598 700 10,750 29 106,276 98,076 8,200 326 2,811 3,749 113,881 11,598 700 10,757 Oct. 6 94,152 92,262 1,890 56 3,808 3,874 102,270 11,598 800 10,775 13 104,330 99,169 5,161 54 4,020 3,629 112,550 11,598 1,200 10,783 20* 102,741 100,235 2,506 82 3,757 4,002 110,893 11,598 1,200 10,789 27P 101,026 99,426 1,600 569 2,372 3,719 107,912 11,598 1,200 10,804 1 Includes Federal agency issues held under repurchase agreements 3 Includes acceptances. For holdings of acceptances on Wed. and endbeginning Dec. 1, 1966, and Federal agency issues bought outright be- of-month dates, see p. A-10. ginning Sept. 29, 1971. 4 Beginning July 1973, this item includes certain deposits of domestic 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. nonmember banks and foreign-owned banking institutions held with Govt, securities pledged with F.R. Banks—and excludes (if any) securities member banks and redeposited in full with F.R. Banks in connection sold and scheduled to be bought back under matched sale-purchase transactions. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 CCuurr-- TTrreeaass-- reserves OOtthheerr reserves rreennccyy uurryy with F.R. Banks FF..RR.. PPPeeerrriiioooddd ooorrr dddaaattteee iinn ccaasshh lliiaa-cciirr-- hhoolldd-- bbiilliittiieess ccuullaa-- iinnggss aanndd With Curttiioonn Treas- For- Other 4 ccaappiittaall F.R. rency Total « ury eign Banks and coin 5 Averages of daily figures 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 1970—Dec. 61,060 453 1,926 290 728 2,287 25,653 5,676 31,329 1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 71,646 323 1,892 406 717 2,942 28,352 6,635 35,068 78,951 220 1,741 357 874 3,266 29,767 7,174 36,941 82,215 387 4,940 271 632 3,208 27,254 7,313 34,567 83,740 415 4,333 297 649 3,276 27,215 7,356 34,571 85,810 452 3,955 259 906 3,247 27,215 7,773 34,989 84,625 496 5,903 287 916 3,225 26,995 8,445 35,575 1976—Jan. 84,002 527 8,811 280 716 3,231 26,168 7,646 33,953 Feb. 85,014 511 7,653 264 810 3,252 26,366 7,456 33,967 86,565 524 5,211 254 815 3,203 26,345 7,568 34,063 87,389 507 7,215 286 655 3,314 26,236 7,838 34,228 88,547 510 6,778 252 784 3,275 25,711 7,903 33,774 89,423 469 7,404 262 945 3,310 25,933 8,064 34,146 89,548 454 7,797 275 979 3,326 26,001 7,989 34,141 89,863 442 8,270 249 1,071 3,315 25,708 8,113 33,979 Sept. 90,320 481 9,199 266 1,012 3,372 26,169 8,028 34,346 Week ending— 89,226 443 7,623 288 1,023 3,398 26,351 8,190 34,691 1976—Aug. 4 89,759 439 5,416 224 934 3,136 25,088 8,324 33,562 11 89,897 436 6,067 352 909 3,253 26,311 7,946 34,408 18 89,484 432 10,135 240 943 3,394 26,111 7,556 33,818 25 89,273 423 10,126 259 1,245 3,538 25,884 8,017 34,052 SSeepptt.. 11 89,917 419 6,735 267 1,062 3,095 25,168 8,242 33,564 88 90,355 410 3,768 262 1,197 3,206 25,261 8,414 33,835 15 89,848 460 9,316 229 953 3,371 25,908 7,428 33,496 22 89,402 474 12,303 220 914 3,529 26,057 8,360 34,577 29 89,738 499 11,633 273 1,039 3,383 26,028 8,258 34,433 90,633 500 7,811 237 1,020 3,212 25,180 8,466 33,800 13 90,544 491 8,399 291 1,010 3,318 27,135 7,429 34,710 20* 90,218 457 9,093 243 1,018 3,450 26,214 7,850 34,210 27* Daily figures for— End of month 89,494 412 10,795 254 962 3,716 24,782 8,017 32,950 89,549 496 13,296 393 1,024 3,625 26,220 8,258 34,626 90,371 446 10,238 362 953 3,615 26,374 8,277 34,806 Wednesday 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 11 89,961 419 9,323 222 815 3,390 28,485 7,946 36,582 18 89,513 419 10,167 219 1,873 3,512 26,043 7,556 33,750 25 89,683 412 9,959 216 2,227 3,410 28,241 8,017 36,409 90,590 416 3,421 292 967 3,123 28,148 8,242 36,544 8 90,349 414 5,684 327 1,112 3,283 24,155 8,414 32,729 15 89,785 466 10,841 230 877 3,363 26,337 7,428 33,925 89,690 504 12,212 245 920 3,649 29,716 8,360 38,236 90,427 499 7,496 252 898 3,030 22,842 8,258 31,247 91,007 504 9,128 280 1,171 3,285 30,755 8,466 39,375 13 90,557 460 8,076 256 1,546 3,397 30,188 7,429 37,763 90,508 450 9,448 251 954 3,482 26,421 7,850 34,417 27* 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 inforeign-agency and branch deposits at F.R. Banks that are associated cluded are (beginning with first statement week of quarter): Q1, $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 • NOVEMBER 1976 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Borrowings New York City City of Chicago Other Total Re- Excess1 Total Sea- Excess Borrow- Borrow- Excess Borrow- Excess Borrowheld1 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—Oc t 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 29 -69 297 33 141 57 June 33,774 33,657 117 120 20 22 26 91 -125 22 129 65 July 34,146 34,076 70 123 24 -41 37 -18 -27 11 156 62 Aug 34,141 33,844 297 104 28 58 28 59 61 20 119 50 Sept 33,979 33,692 287 75 31 64 22 -2 63 3 162 47 Oct.2* 34,346 34,115 231 67 32 -77 -10 -188 16 111 48 Week ending— 1975—Oct. 1 35,444 34,982 462 581 73 149 2 147 304 164 277 8 34,260 34,284 -24 239 74 -83 -16 -52 51 127 188 1 5 34,654 34,358 296 172 65 -9 39 33 94 12 178 121 22 34.576 34,577 232 63 -8 97 -18 -35 22 60 113 2 9 34,715 34,437 278 94 60 102 15 33 7 128 87 1976—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 1 6 33,971 33,400 571 49 16 118 68 210 11 175 38 23 33,594 33,774 -180 165 21 -106 62 -30 -134 45 90 58 3 0 34,866 34,341 525 165 28 95 14 37 213 24 180 127 July 7 34,521 33,959 562 126 26 317 50 22 1 173 104 1 4 33,919 33,890 29 176 23 -93 -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 33,562 33,598 -36 122 26 -74 41 -38 24 -53 18 129 39 IS!"!'.! 34,408 34,071 337 85 27 119 21 2 13 37 184 46 25 33,818 33,700 118 68 29 -22 5 64 15 71 53 Sept. 1 34,052 33,762 290 93 32 45 30 4 81 6 160 57 8 33,564 33,291 273 45 29 82 30 -6 1 167 44 1 5 33,835 33,576 259 61 28 62 -20 14 60 6 157 41 22 33,496 33,454 42 44 31 -26 -4 -26 1 98 43 29 34.577 34,378 199 87 34 -10 32 41 6 136 50 Oct. 6 34,433 34,099 334 101 35 51 9 93 6 181 63 13 33,800 33.588 212 47 32 48 23 -15 3 156 44 20? 34,710 34.589 121 47 29 -96 -36 -259 6 83 41 27* 34,210 34,064 146 120 33 -161 1 13 -136 60 71 47 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 lendbasis 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

NOVEMBER 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 Borweek ending— Excess Net Per cent two-way Pur- Loans rowre- Bor- inter- of trans- chases Sales to ings serves 1 rowings bank Amount avg. Pur- Sales actions 2 of net of net dealers 3 from at F.R. Federal required chases buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1976—Sept. 1 151 13,301 -13,180 89.8 20,840 7,539 4,621 16,219 2,918 2,617 8 120 16,843 -16,723 115.6 24,246 7,404 4,548 19,698 2,855 3,728 15 179 17,798 -17,633 119.9 23,809 6,011 4,160 19,648 1,851 4,916 22 -9 14,964 -14,973 104.4 21,509 6,545 4,537 16,971 2,008 3,220 29 56 13,114 -13,094 87.7 20,643 7,529 4,176 16,468 3,354 2,298 Oct. 6 155 15,877 -15,755 106.6 22,846 6,969 4,636 18,211 2,335 3,683 13 197 19,748 -19,551 134.3 26,142 6,394 4,964 21,178 1,430 4,297 20 -3 16,640 -16,647 109.2 23,506 6,866 4,803 18,703 2,063 3,240 27 11 15,528 -15,587 107.2 22,387 6,859 4,975 17,413 1,884 3,308 8 in New York City 1976—Sept. 1 58 30 5,192 -5,165 87.7 5,881 688 689 5,192 1,885 8 104 7,180 -7,075 123.1 7,726 547 546 7,180 2,290 15 144 6.109 -5,965 102.7 6,558 448 448 6.109 2,230 22 21 4,519 -4,498 80.3 5,230 711 711 4,519 1,968 29 -4 5,323 -5,357 90.8 6,080 758 758 5,323 1,400 Oct. 6 55 6,741 -6,718 114.9 7,225 484 484 6,741 1,998 13 108 8,019 -7,911 139.0 8,361 343 342 8,019 1,930 20 16 5,829 -5,813 96.1 6,529 700 700 5,829 2,120 27 13 5.110 -5,098 91.6 5,983 873 873 5.110 2,157 38 outside New York City 1976—Sept. 1.. 93 8,109 -8,016 91.2 14,959 6,850 3,932 11,027 2,918 732 8.. 15 9,663 -9,647 110.6 16,520 6,857 4,002 12,518 2,855 1,439 15.. 35 11,688 -11,668 131.2 17,251 5,563 3,712 13,539 1,851 2,686 22.. -30 10,445 -10,474 119.8 16,279 5,834 3,826 12,453 2,008 1,251 29.. 60 7,791 -7,737 85.7 14,563 6,772 3,418 11,145 3,354 898 Oct. 6. 100 9,136 -9,037 101.2 15,621 6,485 4,152 11,470 2,335 1,685 13. 89 11,729 -11,640 131.2 17,781 6,051 4,621 13,159 1,430 2,367 20. -19 10,811 -10,835 117.9 16,977 6,166 4,103 12,874 2,063 1,119 27. -2 10,418 -10,489 116.9 16,404 5,986 4,102 12,302 1,884 1,151 5 in City of Chicago 1976—Sept. 1. 5,458 -5,440 361.9 6,200 743 716 5,485 227 8. 6,234 -6,198 423.4 6,851 618 618 6,234 480 15. 14 6,420 -6,435 405.9 6,973 553 553 6,420 674 22. 1 5,834 -5,833 390.6 6,475 641 641 5,834 422 29. 37 5,204 -5,167 345.3 5,854 650 650 5,204 272 Oct. 6. 29 5,557 -5,528 369.7 6,160 603 603 5,556 307 13. 37 6,513 -6,477 429.4 7,113 600 599 6,514 352 20. -5 6,076 -6,081 388.9 6,737 662 662 6,076 340 27. -1 13 5,982 -5,996 388.9 6,646 663 663 5,983 292 33 others 1976—Sept. 1... 76 2,651 -2,576 35.4 8,759 6,108 3,217 5,542 2,891 505 8... -21 3,429 -3,450 47.5 9,669 6,239 3 384 6,284 2,855 959 15... 35 5,268 -5,233 71.6 10,278 5,010 3,159 7,119 1,851 2,012 22.., -30 4,611 -4,641 64.0 9,804 5,193 3,185 6,619 2,008 830 29... 23 2,587 -2,570 34.1 8,709 6,121 2,768 5,941 3,354 626 Oct. 6.., 72 3,580 -3,509 47.2 9,462 5,882 3,549 5,913 2,335 1,378 13.. 52 5,216 -5,164 70.1 10,668 5,452 4,022 6,646 1,430 2,014 2 2 0 7 . .. . -1 -1 4 4 4 , , 7 4 3 3 5 6 - -4 4 , , 4 7 9 5 3 4 6 6 2 0 . . 3 4 1 9 0 , , 7 2 5 4 8 0 5 5, , 3 5 2 0 3 4 3 3 , , 4 4 4 3 1 9 6 6 , , 3 79 2 8 0 2 1 , , 0 8 6 8 3 4 7 8 8 5 0 9 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, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 F.R. BANK INTEREST RATES • NOVEMBER 1976 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sec. 10(b) 2 Loans to all others under Under Sees. 13 and 13ai 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 10/31/76 date rate 10/31/76 date rate 10/31/76 date 3 rate 10/31/76 date rate Boston 5*4 1/19/76 6 6 1/19/76 6% 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 1/19/76 6% 6*4 1/19/76 7 8*4 1/19/76 9 Cleveland 5'ft 1/19/76 6 6 1/19/76 6% 6*4 1/19/76 7 8*4 1/19/76 9 Richmond 5iA 1/19/76 6 6 1/19/76 61/4 6*4 1/19/76 7 8*4 1/19/76 9 Atlanta 5*4 1/19/76 6 6 1/19/76 61/4 6% 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% 1/19/76 6 6 !<!9/7§ 6*4 6*4 1/19/76 7 81/4 1/19/76 9 Kansas City 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 81/2 1/19/76 9 Dallas 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 81/4 1/19/76 9 San Francisco 5% 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8% 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*4 2*4 1964—Nov. 24, 3*4-4 4 1971—Nov. 11 434-5 5 30, 4 4 19 434 434 1956—Apr. 2*4-3 234 Dec. 13 4*4-434 434 234-3 23/4 1965—Dec. 6, 4 -4 *4 41/2 17 4*4-434 4*4 Aug. 234-3 3 13. 4 *4 4 *4 24 4*4 4*4 3 3 1967—Apr. 7, 4 -41/2 4 1973—Jan. 15 5 5 11995577—— N AAuu o gg v .. . 3 3 3* - - 3 3 4 * * 4 4 3 3 3* 4 Nov. 2 2 1 0 7 4 . . . 4 4 4 - * 4 4 1 /2 4 4 4 * * 4 4 M A Fe p a b r r . . . 2 2 2 6 3 5 5 * 5 4 1 - - / 5 5 2 3 * 4 4 5 5 5V * 1 4 4 4 Dec. 2 3 3 1968—Mar. 15, 4*4-5 4% May 4 534 534 1958—Jan. 22 234-3 3 Apr. 2 1 2 9 , , 5 -51/2 5 5 % 1 1 1 8 53 6 4 -6 6 6 Mar. 7 2 2 1 3 4 4 - - 3 3 2 2 3 1 / 4 4 Aug. 2 1 6 6 , , 51/ 5 4 * -5 4 * 4 5 5 1 % /2 15 6 6* -6 4 * 4 6 6 * * 4 4 13 2*4-234 21/4 30, 5*4 514 July 2 7 7 214 214 Dec. 18, 51/4-5*4 5% Aug. 14 7 -7*4 7*4 A M p a r y . 1^ 1 -2 3A 1/ 4 1 iy % 20. 5V4 5*4 23 71/2 7*4 Aug. 15 1*4-2 134/ 4 1969—Apr. 4, 5*4-6 6 1974—Apr. 25 7*4-8 8 Sept. 2 1 3 2 l34 2 - 2 2 2 8, 6 6 Dec. 3 9 0 73 8 4 -8 8 73 4 Oct. 2 -2*4 2 1970—Nov. 11. 5%-6 6 16 734 73/4 Nov. 21/2 2*4 1 16 3 , , 53 5 /4 3 - / 6 4 5 5 3 3 / 4 4 1975—Jan. 6 7*4-734 734 1959—Mar. 2* 3 4 -3 3 3 Dec. 1 4 . 5^-534 5*4 2 1 4 0 71/ 7 4 1 -7 4 3 /4 7 7 1 1 / 4 4 May 29 3 -3*4 3*4 11, 5% 51/2 Feb. 5 634-714 634 June 12 31/2 3 *4 7 634 63/4 Sept. 1 1 1 8 31 4 /2 -4 4 4 1971—Jan. 15 8 . , 51/ 5 4- % 5 % 18 Mar. 1 1 0 4 61 6 4 1 - / 6 4 3 4 6 6 1 1 / / 4 4 1 1 9 9 6 6 0 3 — — J J S A u u e u n l p y g e t . . 1 1 0 7 3 3 3 3 * * 3 3 4 4 - * - - - 3 3 4 4 4 1 * / 4 2 4 3 3 3 3 3 V V * 4 4 4 J F u e l b y . 2 2 2 1 1 1 1 9 2 9 3 6 3 9 . , . 5 4 4 5 3 3 / 4 5 ^ 4 - - * - - 5 5 5 5 A % 1 4 5 3 5 5 5 4 3 * 4 I 1 n 9 7 e 6 f — fec J M t a , n a O y . c t 2 2 1 1 . 3 3 9 6 3 1, 1976 6 5 * 6 5 4 5 - * * - 6 6 4 4 1 /4 6 6 5 5 5 * * * 4 4 4 31/2 3*4 NOTE.—Rates under Sees. 13 and 13a (as described in table and notes Monetary Statistics, 1914-41, and Banking and Monetary Statistics, above). For description and earlier data, see Section 12 of Banking and 1941-1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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) EEEffffffeeeccctttiiivvveee dddaaattteee iii Reserve city Other Other time SSaavviinnggss 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963 16% 12 44 1966—July 14,21 44 44 555 Sept. 8,15 666 1967—Mar. 2 333%%% 333*** Mar. 16 333 1968—Jan. 11,18 111666%%% 111777 111222 111SSS»»» 1969—Apr. 17 111777 111777%%% 111222%%% 1970—Oct. 1 55 Beginning Nov. 9, 1972 Net demand 2,4 Time 3 Other time EEEEffffffffeeeeccccttttiiiivvvveeee ddddaaaatttteeee 0-5, maturing in— Over 55, maturing in— 000---222 222---111000 111000---111000000 111000000--- OOOvvveeerrr SSSaaavvviiinnngggsss 444000000 444000000 ***--- 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 12 666 111666%%% 17% 73 73 75 Nov. 16 111333 1973—July 19 1100%% 1122%% 111333%%% 11118888 1974 Dec. 12 11117777%%%% 66 33 1975—Feb. 13 77%% 1100 1122 1133 11116666%%%% Oct. 30 3 88 11 333 88 11 1976—Jan. 8 33 8822%% 888 222%%% In effect Oct. 31, 1976,, . 7% 10 12 13 16% 3 33 8822%% 8 1 6 888 222%%% 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 deposits. The new reserve city designations are as follows: A bank having city banks and the second to the change at country banks. For changes net demand deposits of more than $400 million is considered to have the prior to 1963 see Board's Annual Reports. character of business of a reserve city bank, and the presence of the head 2 (a) Demand deposits subject to reserve requirements are gross de- office of such a bank constitutes designation of that place as a reserve mand deposits minus cash items in process of collection and demand city. Cities in which there are F.R. Banks or branches are also balances due from domestic banks. reserve cities. Any banks having net demand deposits of $400 million or (b) Requirement schedules are graduated, and each deposit interval less are considered to have the character of business of banks outside of applies to that part of the deposits of each bank. reserve cities and are permitted to maintain reserves at ratios set for banks (c) Since Oct. 16, 1969, member banks have been required under not in reserve cities. For details, see Regulation D and appropriate sup- Regulation M to maintain reserves against foreign branch deposits plements and amendments. computed on the basis of net balances due from domestic offices to their 5 A marginal reserve requirement was in effect between June 21, 1973, foreign branches and against foreign branch loans to U.S. residents. and Dec. 11,1974, against increases in the aggregate of the following types Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident of obligations: (a) outstanding time deposits of $100,000 or more, (b) have been excluded from computations, as have total loans of a bank to outstanding funds obtained by the bank through issuance by a bank's U.S. residents if not exceeding $ 1 million. Regulation D imposes a similar affiliate of obligations subject to existing reserve requirements on time reserve requirement on borrowings from foreign banks by domestic offices deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. of a member bank. The reserve percentage applicable to each of these The requirement applied to balances above a specified base, but was not classifications is 4 per cent. The requirement was 10 per cent originally, applicable to banks having obligations of these types aggregating less was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent than $10 million. For details, including percentages and maturity classifieffective June 21, 1973, and was reduced to the current 4 per cent effective cations, see "Announcements" in BULLETINS for May, July, Sept., and May 22, 1975. Initially certain base amounts were exempted in the com- Dec. 1973 and Sept. and Nov. 1974. putation of the requirements, but effective Mar. 14, 1974, the last of these 6 The 16% per cent requirement applied for one week, only to former reserve-free bases were eliminated. For details, see Regulations D and M. reserve city banks. For other banks, the 13 per cent requirement was 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation continued in this deposit interval. club accounts became subject to same requirements as savings deposits. 7 See columns above for earliest effective date of this rate. Beginning Nov. 10, 1975, profitmaking businesses may maintain savings 8 The average of reserves on savings and other time deposits must be deposits of $150,000 or less at member banks. For details of 1975 action, at least 3 per cent, the minimum specified by law. For details, see Regusee Regulations D and Q. lation D. Notes 2(b) and 2(c) above are also relevant to time deposits. * Negotiable orders of withdrawal (NOW) accounts are subject to the 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re- same reserve requirements as savings deposits. serve cities, and on the same date requirements for reserves against net demand deposits of member banks were restructured to provide that each NOTE.—Required reserves must be held in the form of deposits with member bank will maintain reserves related to the size of its net demand F.R. Banks or vault cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • NOVEMBER 1976 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type and size July 20, Sept. 26, Apr. 19, Jan. 21, Type and size July 1, Nov. 1, Nov. 27, Dec. 23, of deposit 1966 1966 1968 1970 of deposit 1973 1973 1974 1974 Savings deposits 4% Savings deposits Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days 4 4% Less than $100,000: 9 1 0 -2 d a y y e s a r t s o 1 year. 5 5 % 9 3 0 0 - d 8 a 9 y d s a t y o s 1 year 5 5 % 5 5 % 5 5 % 5 5 % Singl 2 e - y m e a a t r u s r o it r y : m ore.., 5 2 1 l - /i 2 % ye a y r e s a r o s r more 6 6 % 6 6 % 6 6 % 6 6 % Less than $100,000: Minimum denomination 30 days to 1 year. 5 of$1,000:4 $1 2 3 6 0 1 0 0 0 - y 2 , - - e 0 8 5 a 0 9 9 y r 0 e s d d a o a a o r r y y r s s s m m o o r r e: e .. 5% 5 5 y % 4 5 5 ( ( V 3 3 % ) ) 4 $1 G 00 o 4 6 , v 0 - e 6 y 0 r e 0 n a y m r e o a s r e r o n m s r t o a m l r e o u r n e i ts ( ( ( 5 6 3 ) ) ) m ( ( 6 3 ) > m m (3> m m m (3> 90-179 days 5 % 6 (3) 1 18 y 0 e a d r a y o s r to m 1 o r y e e . a . r . 5V2 6V4 ( ( 3 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% per cent ceiling that applies to time de- 2 Multiple-maturity time deposits include deposits that are automati- posits maturing in 2% years or more. cally renewable at maturity without action by the depositor and deposits Effective Nov. 1, 1973, a ceiling rate of 714 per cent was imposed on that are payable after written notice of withdrawal. certificates maturing in 4 years or more with minimum denominations 3 Maximum rates on all single-maturity time deposits in denominations of $1,000. There is no limitation on the amount of these certificates that of $100,000 or more have been suspended. Rates that were effective banks may issue. Jan. 21, 1970, and the dates when they were suspended are: 6 Prior to Nov. 27, 1974, no distinction was made between the time deposits of governmental units and of other holders, insofar as Regula- 6 3 0 0 - - 8 5 9 9 d da a y y s s 6 6 Vi p p e e r r c c e e n n t t l f June 24, 1970 t g i o o v n e r Q n m ce e i n li t n a g l s u o n n it s r a w te e s r e p a p y e a r b m le i t w te e d r e t o c o h nc o e ld rn e sa d v . i E ng ff s e c d t e iv p e o s N it o s v . a n 27 d , c 1 o 9 u 7 l 4 d , 90-179 days 6% per cent | receive interest rates on time deposits with denominations under $100,000 180 days to 1 year 7 per cent > May 16, 1973 irrespective of maturity, as high as the maximum rate permitted on such 1 year or more 7 VI per cent J deposits at any Federally insured depositary institution. Rates on multiple-maturity time deposits in denominations of $100,000 NOTE.—Maximum rates that may be paid by member banks are estabor more were suspended July 16, 1973, when the distinction between lished by the Board of Governors under provisions of Regulation Q; single- and multiple-maturity 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. 4, 50 50 Aug. 5 Oct. 15 70 70 Oct. 16 1960—July 27 90 90 1960--July 28 1962—July 9 70 70 1962--July 10 1963—Nov. 5 50 50 1963-—Nov. 6 1968—Mar. 10 70 70 1968-—Mar. 11 June 7 70 50 70 June 8 1970—May 5 80 60 80 1970-—May 6 1971—Dec. 3 65 50 65 1971--Dec. 6 1972—Nov. 22 55 50 55 1972-—Nov. 24 1974—Jan. 2 65 50 65 Effective Jan. 3, 1974. 50 50 50 NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. U, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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—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 -3,105 418 "85 June. 2,719 524 350 83 -449 617 449 195 96 July.. 279 1,413 875 59 -59 Aug.. 1,100 42 -1,525 301 -79 72 1,354 250 Sept.. 1,125 171 129 -285 580 285 272 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net Period securities) securities) in G o U v . t S , . Outright R c e h p a u se r - cha N n e g t e 3 securi- Repur- Gross Gross Gross ties Gross Sales or ments, chase pur- Gross Redemp- Gross pur- pur- Gross pur- redemp- net Out- agreechases sales tions sales chases chases sales chases tions right ments 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,r- 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 4 13,537 5,830 4,682 64,229 62,801 71,333 70,947 1,984 3,087 322 469 511 420 6,149 197 5 20,892 5,599 9,559 151,205 152,132 140,311 139,538 7,434 1,616 246 -392 163 -35 8,539 1975—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 22 -51 -69 -1,080 June.. 3,709 524 350 20,973 21,205 14,409 13,643 3,834 123 -78 229 4,086 July. . 279 1,413 875 10,522 10,468 12,947 14,657 -3,773 -231 -31 -339 -4,375 Aug... 1,579 16,389 16,180 26,641 24,655 3,357 95 -68 220 3,577 Sept... 2,202 171 19,828 19,563 24,108 23,477 2,397 182 -55 85 2,587 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

AlO FEDERAL RESERVE BANKS • NOVEMBER 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1976 1976 1975 Oct. 27 Oct. 20 Oct. 13 Oct. 6 Sept. 29 Oct. 31 Sept. 30 Oct. 31 Assets 11,598 11,598 11,598 11,598 11,598 11,598 11,598 11,599 Special Drawing Rights certificate account 1,200 1,200 1,200 800 700 1,200 800 500 374 370 368 365 365 381 370 398 Loans: 569 82 54 56 326 45 322 73 Other Acceptances: 196 199 200 199 212 197 207 747 Held under repurchase agreements 30 112 317 181 507 140 631 300 Federal agency obligations: 6,757 6,757 6,757 6,757 6,757 6,757 6,757 6,073 Held under repurchase agreements 51 110 293 83 295 79 323 169 U.S. Govt, securities: Bought outright: Bills 39,266 40,075 39,009 32,102 38,372 39,875 38,245 35,747 Other 46,897 46,897 46,897 46,897 46,482 46,897 46,897 43,400 6,506 6,506 6,506 6,506 6,465 6,506 6,506 5,104 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll bbbbbbbbbooooooooouuuuuuuuuggggggggghhhhhhhhhttttttttt ooooooooouuuuuuuuutttttttttrrrrrrrrriiiiiiiiiggggggggghhhhhhhhhttttttttt ********* 92,669 93,478 92,412 85,505 91,319 93,278 91,648 84,251 1,549 2,396 4,868 1,807 7,905 2,561 4,779 2,933 94,218 95,874 97,280 87,312 99,224 95,839 96,427 87,184 101,821 103,134 104,901 94,588 107,321 103,057 104,667 94,546 ,507 2*9,448 10,498 9,416 8,081 2*6,643 7,768 5,595 358 359 357 356 354 358 354 313 26 26 27 27 26 26 26 11 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr aaaaaaaaasssssssssssssssssseeeeeeeeetttttttttsssssssss::::::::: 395 390 388 739 638 401 738 413 2,940 3,227 2,857 2,752 2,731 2,985 2,682 3,202 2*126,219 2*129,752 132,194 120,641 131,814 2*126,649 129,003 116,577 LLLLLLLLLiiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 80,528 80,598 81,097 80,509 79,802 80,389 79,674 73,063 DDDDDDDDDeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiitttttttttsssssssss::::::::: 2*26,421 2*30,188 30,755 22,842 29,716 2*26,374 26,220 26,140 9,448 8,076 9,128 7,496 12,212 10,238 13,296 8,517 251 256 280 252 245 362 393 297 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr::::::::: 954 1,546 1,171 898 920 953 1,024 594 2*37,074 f40,066 41,334 31,488 43,093 2*37,927 40,933 35,548 5,135 5,691 6,478 5,608 5,270 4,718 4,771 4,468 1,094 1,126 1,134 990 1,248 1,165 1,205 1,163 2*123,831 2*127,481 130,043 118,595 129,413 2*124,199 126,583 114,242 CCCCCCCCCaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 973 974 966 966 965 974 965 917 929 929 928 929 929 929 929 897 486 368 257 151 507 547 526 521 2*126,219 2*129,752 132,194 120,641 131,814 2*126,649 129,003 116,577 MMMMMMMMMaaaaaaaaarrrrrrrrrkkkkkkkkkeeeeeeeeetttttttttaaaaaaaaabbbbbbbbbllllllllleeeeeeeee UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss hhhhhhhhheeeeeeeeelllllllllddddddddd iiiiiiiiinnnnnnnnn cccccccccuuuuuuuuussssssssstttttttttooooooooodddddddddyyyyyyyyy fffffffffooooooooorrrrrrrrr fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn aaaaaaaaannnnnnnnnddddddddd iiiiiiiiinnnnnnnnnttttttttteeeeeeeeerrrrrrrrrnnnnnnnnnaaaaaaaaatttttttttiiiiiiiiiooooooooonnnnnnnnnaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 49,748 49,996 49,420 50,037 49,219 2*49,790 49,690 42,399 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 85,815 85,829 85,786 85,556 85,571 85,907 85,526 78,659 Collateral held against notes outstanding: Gold certificate account 11,596 11,595 11,596 11,596 11,595 11,595 11,595 11,596 Special Drawing Rights certificate account. 619 600 600 435 394 619 421 302 Acceptances U.S. Govt, securities 75,680 75,635 75,635 75,235 75,230 75,680 75,230 69,410 Total collateral. 87,895 87,830 87,831 87,266 87,219 87,894 87,246 81,308 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

NOVEMBER 1976 • FEDERAL RESERVE BANKS; BANK DEBITS All MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 Oct. 27 Oct. 20 Oct. 13 Oct. 6 Sept. 29 Oct. 31 Sept. 30 Loans—Total 569 82 55 55 324 45 323 Within 15 days... 555 71 37 35 311 31 299 16-90 days 14 11 18 20 13 14 24 91 days to 1 year.. Acceptances—Total. 226 311 517 380 719 337 838 Within 15 days... 57 139 358 236 569 170 691 16-90 days 103 102 98 98 109 99 105 91 days to 1 year. 66 70 61 46 41 68 42 U.S. Govt, securities—Total. 94,218 95,874 97,280 87,312 99,224 95,839 96,427 Within 15 days1 4,036 7,380 9,868 4,663 12,142 5,831 6,688 16-90 days 18,710 17,307 17,406 11,991 17,066 18,395 17,269 91 days to 1 year 26,866 26,581 25,400 26,052 26,061 27,007 27,864 1-5 years 29,559 29,559 29,559 29,559 29,034 29,559 29,559 5-10 years 9,981 9,981 9,981 9,981 9,896 9,981 9,981 Over 10 years 5,066 5,066 5,066 5,066 5,025 5,066 5,066 Federal agency obligations—Total. 6,808 6,867 7,050 6,840 7,052 6,836 7,080 Within 15 days1 72 131 335 124 327 100 355 16-90 days 374 362 382 383 383 374 383 91 days to 1 year 1,021 1,033 958 958 967 1,021 967 1-5 years 3,234 3,234 3,267 3,267 3,267 3,234 3,267 5-10 years 1,406 1,406 1,415 1,415 1,415 1,406 1,415 Over 10 years 701 701 693 693 693 701 693 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 others 2 N.Y.) SMSA's SMSA's N.Y. 6 others 2 N.Y.) SMSA's 1975—Sept. 23,181.9 10,585.0 5,153.0 12,596.9 7,443.8 128.8 330.7 123.8 85.1 70.0 Oct.. 24,137.1 11.801.5 4,921.3 12,335.6 7,414.3 134.0 364.0 118.7 83.5 69.8 Nov. 24.067.7 11,529.9 4.937.3 12,537.8 7,600.5 134.0 360.8 119.5 84.9 71.5 Dec. 23,565.1 10,970.9 4.932.5 12.594.2 7,661.8 131.0 351.8 118.4 84.7 71.6 1976—Jan.. 23,845.0 11.517.7 4.789.0 12.327.3 7.538.3 132.4 366.0 115.4 82.9 70.3 Feb. 25,528.4 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. 25.792.8 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 26,625.6 12,844.3 5.561.2 13,781.3 8,220.1 145.0 400.8 131.9 90.9 75.1 July. 27,102.3 13,354.2 5.497.7 13.748.1 8.250.4 145.9 405.0 128.7 89.9 74.9 Aug. r27,875.0 13.221.1 5.935.8 14,653.9 '8,718.1 r148.6 400.6 138.2 r94.8 r78.1 Sept. 27,246.6 12.727.9 5,856.0 14,518.8 8.662.8 145.8 393.7 136.1 94.0 77.7 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 • NOVEMBER 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi M2 Mz Mi Ms Mi Mi Mz Mi Ms Composition of measures is described in the NOTE below. 1973-—Dec 270.5 571.4 919.5 634.9 982.9 278.3 576.5 921.8 640.5 985.8 1974-—Dec 283.1 612.4 981.6 702.2 1,071.4 291 .3 617.5 983.8 708.0 1,074.3 1975--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 r 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 295.1 670.0 1,103.5 749.2 1,182.7 301.0 675.0 1,106.9 753.5 1,185.4 Feb 296.6 677.9 1,116.7 753.3 1,192.1 292.9 674.8 1,112.8 747.8 1,185.8 Mar 298.1 682.6 1,126.5 755.7 1,199.7 295.3 682.5 1,128.2 754.2 1,199.9 Apr 301.8 690.8 1,140.0 762.2 1,211.5 303.5 695.5 1,148.2 764.9 1,217.6 May 303.5 695.7 1,150.0 763.9 1,218.2 298.5 694.1 1,150.8 761.5 1,218.2 June 303.2 698.5 1,157.4 769.1 1,228.0 302.5 699.8 1,162.3 768.9 1,231.4 July 304.9 705.4 1,169.9 774.9 1,239.4 305.2 705.8 1,173.8 774.6 1,242.6 Aug 306.4 710.8 1,182.3 775.1 1,246.7 303.1 707.4 1,178.7 773.6 1,245.0 Sept 306.3 716.4 1,195.4 778.8 1,257.8 304.4 712.8 1,189.2 778.1 1,254.5 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 A/4: Mi plus large negotiable CD's. banks other than domestic interbank and U.S. Govt., less cash items in Ms: Mi 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, Mi, Mz, MA, 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 Jan. 1976, money stock measures and related data Mn Averages of daily figures for Mi plus savings deposits, time de- have been revised to incorporate benchmark data from the Mar. 31, 1976, 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 Ms: Mi 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 NNNooonnn--- Demand deposits Time and savings NNNooonnn--- UUUU....SSSS.... PPPPeeeerrrriiiioooodddd deposits bbbaaannnkkk deposits bbbaaannnkkk GGGGoooovvvvtttt,,,, CCCuuurrr--- DDee-- ttthhhrrriiifffttt CCCuuurrr--- ttthhhrrriiifffttt ddddeeee---rrreeennn--- mmaanndd iiinnnssstttiii--- rrreeennn--- iiinnnssstttiii--- ppppoooossss---cccyyy ddee-- tttuuu--- cccyyy Do- tttuuu--- iiiittttssss 5555 ppooss-- tttiiiooonnnsss222 mes- tttiiiooonnnsss222 iittss CD's1 Other Total Mem- tic Total 4 CD's1 Other Total ber nonmember 3 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—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 74.2 220.9 79.2 374.9 454.1 433.5 73.7 162.0 62.1 227.3 78.5 374.0 452.5 431.9 3.8 Feb 75.0 221.6 75.4 381.3 456.7 438.8 74.1 155.8 59.9 218.9 73.0 381.9 454.9 433.0 4.6 Mar 75.7 222.4 73.2 384.4 457.6 444.0 75.1 156.9 60.3 220.2 71.8 387.2 458.9 445.7 3.9 Apr 76.7 225.2 71.5 388.9 460.4 449.3 76.2 161.9 62.3 227.2 69.4 392.1 461.5 452.6 3.9 May 77.3 226.2 68.2 392.2 460.4 454.3 77.1 157.2 61.0 221.4 67.4 395.6 462.9 456.7 3.8 June 77.6 225.6 70.6 395.3 465.9 458.9 77.8 159.3 62.3 224.7 69.1 397.3 466.4 462.5 4.8 July 78.1 226.8 69.6 400.4 470.0 464.5 78.7 160.2 62.8 226.5 68.9 400.6 469.4 468.0 3.4 Aug 78.6 227.8 64.4 404.4 468.7 471.6 78.9 158.5 62.4 224.3 66.3 404.2 470.5 471.3 3.6 Sept 79.1 227.2 62.4 410.1 472.5 479.0 79.0 159.1 63.2 225.4 65.3 408.4 473.7 476.4 4.9 1 Negotiable time certificates of deposit issued in denominations of 4 Total deposits include, in addition to the member and domestic non- $100,000 or more by large weekly reporting commercial banks. member deposits shown, deposits due to foreign and international in- 2 Average of the beginning and end-of-month figures for deposits of stitutions at F. R. Banks and Mi type balances at agencies and branches mutual savings banks, for savings capital at savings and loan associations, of foreign banks. and for credit union shares. 5 At all commercial banks. 3 Based on most recent call report single-day observations. See also NOTE above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • BANK RESERVES; BANK CREDIT A13 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A. i Deposits subject to reserve requirements 2 TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss 33 PPPPeeeerrrriiiioooodddd NNNooonnn--- TTToootttaaalll bbbooorrr--- RRReee--- Demand Demand rrrooowwweeeddd qqquuuiiirrreeeddd TTiimmee TTiimmee TToottaall aanndd TToottaall aanndd SS..AA.. NN..SS..AA.. ssaavviinnggss Private U.S. ssaavviinnggss Private U.S. Govt. Govt. 1973—Dec 34.98 33.69 34.68 442.8 279.7 158.1 5.0 447.5 278.5 164.0 5.0 449.4 454.0 1974—Dec. i 36.63 35.90 36.37 486.9 322.9 160.6 3.4 491.8 321.7 166.6 3.5 495.3 500.1 1975—Sept 34.99 34.59 34.80 498.4 329.8 165.6 3.0 499.1 332.2 164.0 2.9 505.5 506.1 Oct.1 34.79 34.60 34.58 500.1 333.1 164.0 3.0 500.4 334.7 163.3 2.5 508.0 508.3 Nov 34.73 34.67 34.44 505.9 336.1 165.9 3.9 503.6 334.3 166.7 2.6 514.1 511.9 Dec 34.75 34.62 34.49 506.0 338.7 164.4 3.0 510.9 337.2 170.7 3.1 515.4 519.3 1976—Jan. i 34.32 34.24 34.08 506.2 338.9 164.7 2.6 511.1 337.9 170.3 2.9 514.1 519.0 Feb 34.05 33.97 33.83 507.6 339.5 165.5 2.6 504.2 337.5 163.4 3.4 515.6 512.2 Mar 34.00 33.95 33.78 507.8 339.4 165.8 2.5 506.4 339.6 163.9 2.9 516.0 514.7 Apr 34.02 33.98 33.87 509.8 340.2 167.2 2.5 511.9 340.2 168.8 2.9 517.3 519.4 May 34.14 34.02 33.93 507.8 338.3 167.2 2.3 506.0 339.9 163.4 2.8 515.3 513.6 June 34.34 34.21 34.12 513.9 342.3 167.9 3.7 512.7 342.5 166.7 3.6 522.3 521.2 July 34.39 34.25 34.15 514.9 344.2 168.0 2.7 513.9 343.7 167.7 2.5 523.6 522.7 Aug r34.52 r34.42 34.32 513.6 341.1 168.7 3.9 511.3 342.7 165.9 2.7 522.5 520.2 Sept 34.36 34.30 34.16 515.3 342.6 168.9 3.8 514.9 344.1 167.2 3.6 523.5 523.1 1 Averages of daily figures. Member bank reserve series reflect actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. There are breaks in series 3 "Total member bank deposits" subject to reserve requirements, plus because of changes in reserve requirements effective Dec. 12, 1974, Feb. Euro-dollar borrowings, loans sold to bank-related institutions, and 13, May 22, and Oct. 30, 1975, and Jan. 8, 1976. In addition, effective certain other nondeposit items. This series for deposits is referred to as Jan. 1, 1976, statewide branching in New York was instituted. The sub- "the adjusted bank credit proxy." sequent merger of a number of banks raised required reserves because of higher reserve requirements on aggregate deposits at these banks. NOTE.—Back data and estimates of the impact of required reserve 2 Averages of daily figures. Deposits subject to reserve requirements changes may be obtained from the Banking Section, Division of Research include total time and savings deposits and net demand deposits as defined and Statistics, Board of Governors of the Federal Reserve System, Washby Regulation D. Private demand deposits include all 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 TTToootttaaalll TTToootttaaalll DDDDaaaatttteeee llloooaaannnsss Commercial llloooaaannnsss Commercial aaannnddd and industrial3 aaannnddd and industrial3 iiinnnvvveeesssttt--- PPlluuss UU..SS.. iiinnnvvveeesssttt--- PPlluuss UU..SS.. mmmeeennntttsss iii TToottaall ii ll ss oo oo aa ll nn dd ss 22 Total l P oa lu n s s TT uu rree rr aa yy ss -- OOtthheerr44 mmmeeennntttsss 111 TToottaall ii ss lloo oo aa lldd nn 22 ss Total l P oa lu n s s TTrr uu ee rr aa yy ss -- OOtthheerr44 sold2 sold2 1971—Dec. 31 485.7 320.9 323.7 116.1 117.7 60.6 104.2 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31 558.0 378.9 381.5 130.2 131.9 62.6 116.5 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Dec. 31 633.4 449.0 453.3 156.4 159.0 54.5 129.9 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Dec. 315. . . 690.4 500.2 505.0 183.3 186.0 50.4 139.8 705.6 510.7 515.5 186.8 189.6 54.5 140.5 1975—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. 25* . . . 726.7 497.8 502.3 175.1 177.8 84.4 144.5 720.8 491.9 496.4 173.5 176.2 85.4 143.6 Mar. 31*. . . 731.2 499.7 503.9 171.4 174.0 88.2 143.3 729.6 496.9 501.1 171.3 173.9 89.3 143.5 Apr. 28*. . . 734.5 500.5 504.7 170.5 173.1 90.0 144.0 732.1 496.7 500.9 170.6 173.2 90.2 145.2 May 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 Sept. 29*. . . 752.5 511 .4 515.3 172.0 174.5 94.0 147.1 752.9 513.3 517.2 172.5 175.0 92.6 147.0 Oct. 27*.. . 760.3 519.3 523.1 174.8 177.2 93.5 147.5 758.7 518.2 522.0 174.2 176.6 93.5 147.0 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 rewas 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 BULtotaled 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 • NOVEMBER 1976 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total CCllaassssiiffiiccaattiioonn bbyy Securities lia- Interbank 3 Other Total Num- FFRRSS mmeemmbbeerrsshhiipp Cash bilities Bor- capital ber aanndd FFDDIICC assets 3 and row- ac- of iinnssuurraannccee Total Loans capital Total 3 Demand ings counts 6 banks 1 U.S. Other ac- De- Treas- 2 counts 4 mand Time Time 5 ury U.S. Other Govt. Last-Wednesday-of-month series 7 All commercial banks: 1941—Dec. 31... 50,746 21,714 21, 225 26,551 79,104 71,283 10,982 44,349 15,952 23 1947—Dec. 31 8.. 116,284 38,057 69,221 006 37,502 155,377 144,103 12,792 240 1,3431 94,367 35,360 65 1960—Dec. 31... 199,509 117,642 61,003 864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 1970— Dec. 31».. 461,194 313,334 61,742 ,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 ,375 1971—Dec. 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 ,912 1972—Dec. 31... 598,808 414,696 67,028 117, 0<8 4 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 ,083 1973—Dec. 31... 683,799 494,947 58,277 130,:5 74 118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 ,994 1974—Dec. 31... 744,107 549,183 54,451 140,-473 128,042 919,552 747,903 43,483 11,496 4,807 267,506 420,61 ,369 1975—Oct. 29... 747,250 526,420 75,9401 44,890 110,670 915,890 736,870 31,900 ,210 2,650 247,590 443,520 60,640 Nov. 26... 757,450 532,660 79,400 145,390 123,150 939,310 753,000 34,560 ,160 3,530 257,640 446,110 66,780 Dec. 31... 775,794 546,172 84,119 145,503 133,614 964,918 786,252 41,81* 12,020 3,114 278,692 450,615 60,224 1976—Jan. 28... 756,630 527,820 84,7701144,040 112,720 927,140 743,140 32,110 11,540 3,790 245,600 450,100 67,250 Feb. 28... 757,540 528,560 85,420 143,:5 60 111,470 928,540 741,230 31,560 11,370 4,010 242,810 451,480 68,490 Mar. 31io. 767,260 534,530 89,260 143,,.4 70 120,870 934,440 766,680 37,510 11,860 2,430 256,930 457,950 63,420 Apr. 28... 765,550 530,170 90,180 145, 200 113,210 926,370 753,150 32,280 10,990 4,120 250,200 455,560 68,480 May 26... 766,760 531,780 90,430 144, 550 111,710 927,690 754,070 33,100 10,530 3,520 247,550 459,370 66,160 June 30.., 779,820 543,740 90,800 145, 280 125,170 957,130 782,850 38,270 10,580 4,660 266,450 462,890 65,870 July 28... 772,540 537,550 89,490 145, 500 111,530 934,250 761,180 33,100 10,160 3,540 250,590 463,790 66,790 Aug. 25.., 782,080 544,460 91,800 145, 820 109,110 940,510 759,400 33,380 9,650 3,710 247,400 465,260 72,250 Sept. 29*., 790,400 550,820 92,630 146, 950 118,660 960,030 773,320 35,180 9,520 5,840 252,890 469,890 77,520 Oct. 27*. , 796,900 556,440 93 ,'460147; 000 115,160 962,640 777,910 34,760 9,140 3,690 258,180 472,140 75,980 Members oi F.R. System: 1941—Dec. 31.. 43,521 18,021 19,539 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 1947—Dec. 31.. 97,846 32,628 57,914 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 1960—Dec. 31.. 165,619 99,933 49,106 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 1970—Dec. 319.. 365,940 253,936 45,399 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 1971—Dec. 31.. 405,087 277,717 47,633 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 1972—Dec. 31... 465,788 329,548 48,715 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 1973—Dec. 31... 528,124 391,032 41,494 100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 1974—Dec. 31... 568,532 429,537 38,921 106,995 715,615 575,563 41,062 10,052 3,183 204,203 317,064 52,850 1975—Oct. 29... 556.383 401,492 54,546 100,345 91,397 695,312 552,649 29.568 9,578 1,952 186,851 324,700 54,250 Nov. 26.., 564,023 405,805 57,471 100,747 102,103 714,112 564,835 32,064 9,527 2,708 194,492 326,044 60,162 Dec. 31... 578,560 416,366 61,519 100,675 108,489 733.635 590,776 38.569 10,015 2,255 210,824 329,"' 53,646 1976—Jan. 28... 563,387 402,020 61,704 99,,'6 63 93,808 705,093 556,274 29,712 9,529 2,908 185,773 328,352 61,022 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 M Ap a r r . . 3 2 1 8 1 . 0 .. , 5 5 6 6 9 7 , . 9 3 1 8 3 4 4 4 0 0 6 2, , 1 1 4 4 7 8 6 6 4 4 , , 6 8 3 9 6 2 1 9 0 9 0 , , 1 3: 2 4 9 5 1 9 0 3 0 , , 7 45 4 5 3 7 7 1 0 0 2 , , 2 1 2 3 8 0 5 5 7 6 3 1 , , 8 1 7 1 8 0 2 3 9 4 , , 9 9 2 3 3 4 9 8 , , 8 9 4 7 8 8 1 3, , 2 7 8 6 1 9 1 18 9 9 4 , , 3 9 6 3 1 2 3 3 3 2 2 9 , , 3 5 9 6 5 7 5 6 7 2 , , 4 0 7 0 0 2 1 May 26.., 567,050 402,319 65,037 99, 694 92,323 702,269 561,220 30,675 8,517 2,701 187,038 332,289 59,588 June 30.., 577,509 411,707 65,626 100, 176 104,036 726,826 585,345 35,595 8,570 3,669 202,131 335,380 59,302 July 28... 570,060 405,282 64;442100;336 92,277 706,225 565,107 30,720 8,150 2,720 188,636 334,881 60,343 A Se u p g t . . 2 2 9 5 * .. . . . 5 58 7 3 8 , , 5 2 5 0 3 0 4 4 1 1 5 0 , , 0 7 7 9 6 0 6 6 6 6 , , 9 74 7 7 3 1 1 0 0 0 1 , , 1; 6 5 6 0 3 4 9 8 8 9 , , 8 3 9 6 7 6 7 72 1 6 0 , , 8 7 2 1 3 0 5 57 6 3 2 , , 9 3 3 6 9 0 3 3 2 0 , , 6 9 5 4 9 3 7 7, , 5 6 2 4 1 2 2 4, , 3 7 4 9 9 3 1 19 8 1 5 , , 0 9 1 1 1 5 3 3 3 3 5 8 , , 0 3 6 9 7 9 6 7 5 0 , , 8 6 7 3 8 6 Oct. 27*.. 588,645 419,479 67,744 101,4 22 94,911 727.636 576,067 32,213 7,130 2,859 194,650 339,215 69,119 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 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 I960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 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 1972—Dec. 31... 594,502 411,525 66,679 116,298 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 1973—Dec. 31... 678,113 490,527 57,961 129,625 116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 1974—Dec. 31... 734,516 541,111 54,132 139,272 125,375 906,325 741,665 42,587 10,693 4,799 265,444 418,142 55,988 63,039 1975—June 30... 736,164 526,272 67,833 142,060 125,181 914,781 746,348 41,244 10,252 3,106 261,903 416,962 59,310 65,986 Dec. 31... 762,400 535,170 83,629 143,602 128,256 944,654 775,209 40,259 10,733 3,108 276,384 433,352 56,775 68,474 1976—Mar. 31... 758,753 527,718 85,372 145,663 119,026 919,546 759,615 36,123 10,420 2,474 256,356 454,241 61,716 67,300 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 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 I960—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 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 1972—Dec. 31... 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 1973—Dec. 31... 398,236 293,555 30,962 73,718 70,711 489,470 395,767 20,357 3,876 5,955 152,705 212,874 39,696 33,125 1974—Dec. 31... 428,433 321,466 29,075 77,892 76,523 534,207 431,039 23,497 6,750 2,437 154,397 243,959 39,603 35,815 1975—June 30... 428,167 312,229 37,606 78,331 75,686 536,836 431,646 21,096 6,804 1,723 152,576 242.492 41,954 37,483 Dec. 31... 441,135 315,738 46,799 78,598 78,026 553,285 447,590 22,305 7,302 1,788 159,840 250.493 40,875 38,969 1976—Mar. 31... 435,453 308,481 46,726 80,246 73,103 536,191 435,144 19,406 6,590 1,441 147,557 260,151 44,112 38,468 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • COMMERCIAL BANKS 15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— CCllaassssiiffiiccaattiioonn bbyy Securities Total Interbank3 Other Total Num- FFRRSS mmeemmbbeerrsshhiipp Cash lia- Bor- capital ber aanndd FFDDIICC assets3 bilities row- ac- of iinnssuurraannccee 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 1 9 m 4 e 1 m — b D er e : c . 31.... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31.... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 I960—Dec. 31.... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 319... 94,760 66,963 11,196 16,600 25.472 125,460 101,512 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 1976—Mar. 31.... 135,853 98,568 14,641 22,644 28,670 175,394 139,011 15,438 3,086 356 47,425 72,705 14,706 12,598 1,030 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 19,778 210,874 184,210 1,689 719 853 65,560 115,203 3,128 16,400 8,585 1976—Mar. 31.... 187,448 120,669 24,006 42,773 17,253 207,960 185,460 1,280 743 676 61,374 121,386 2,898 16,234 8,590 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1947—Dec. 318... 2,009 474 1,280 255 576 2,643 2,251 177 185 1,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 846 293 14 358 352 1970—Dec. 31»... 3,079 2,132 304 642 934 4,365 2,570 375 101 1,298 756 226 532 184 1971—Dec. 31.... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 1,273 1,134 283 480 181 1972—Dec. 31.... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 1,530 1,620 527 491 206 1 19 9 7 7 3 4 — — D D e e c c . . 3 3 1 1 . .. . . . . . 6 9, , 9 1 8 9 1 2 4 8 , ,4 9 6 2 1 7 3 3 1 1 6 9 1,2 9 0 4 1 9 2 2 , , 6 0 6 1 7 0 1 8 3 , , 6 6 5 1 0 6 4 6, , 6 9 2 9 7 6 8 5 9 9 7 1 3 80 4 3 4 2 1 , , 0 8 6 3 2 6 2 2 , , 8 2 5 1 7 5 2 1 , , 3 4 8 6 2 3 6 5 1 24 1 2 2 4 0 9 7 1975—June 30.. . 11,725 9,559 358 1, 3,534 16,277 8,314 1,338 957 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 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 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 16"7 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 ,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 ,383 13,386 8,436 1974—Dec. 31.... 175,690 119,761 15,530 40,400 21,047 204,051 172,454 2,422 1,445 1,624 63,302 103,661 ,520 15,410 8,685 1975—June 30. . . 184,963 122,633 18,581 43,750 21,563 214,434 181,021 2,735 1,633 951 62,830 112,136 6,086 16,300 8,779 1975—Dec. 31 .. . 197,319 129,892 22,599 44,829 25,137 231,418 195,533 3,241 2,010 859 67,868 120,318 6,577 17,051 8,846 1 Loans to farmers directly guaranteed by CCC were reclassified as figures for all bank-premises subsidiaries and other significant majoritysecurities and Export-Import Bank portfolio fund participations were owned domestic subsidiaries) and (2) reporting of figures for total loans reclassified from loans to securities effective June 30, 1966. This reduced and for individual categories of securities on a gross basis—that is, before "Total loans" and increased "Other securities" by about $1 billion. deduction of valuation reserves—rather than net as previously reported. "Total loans" include Federal funds sold, and beginning with June 1967 10 See last paragraph of note 1, second paragraph of note 4, and securities purchased under resale agreements, figures for which are in- note 6. cluded in "Federal funds sold, etc.," on p. A-16. Effective June 30, 1971, Farmers Home Administration notes were NOTE.—Data are for all commercial banks in the United States (including classified as "Other securities" rather than "Loans." As a result of this Alaska and Hawaii, beginning with 1959). Commercial banks represent change, approximately $300 million was transferred to "Other securities" all commercial banks, both member and nonmember; stock savings for the period ending June 30, 1971, for all commercial banks. banks; nondeposit trust companies; and U.S. branches of foreign banks. Effective Mar. 31, 1976, includes "reserves for loan losses" and "un- Figures for member banks before 1970 include mutual savings banks earned income on loans." as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks See also table (and notes) at the bottom of p. A-24. are not included in insured commercial banks. 2 See first 2 paragraphs of note 1. Effective June 30, 1969, commercial banks and member banks exclude 3 Reciprocal balances excluded beginning with 1942. a small national bank in the Virgin Islands; also, member banks exclude, 4 Includes items not shown separately. See also note 1. and noninsured commercial banks include, through June 30, 1970, a small Effective Mar. 31,1976, "reserves for loan losses" and unearned income member bank engaged exclusively in trust business; beginning 1973, on loans," which for all commercial banks are estimated to be approx- exclude 1 national bank in Puerto Rico. imately $14.5 billion, have been netted against "other assets" and "other Beginning Dec. 31, 1973, June 30, 1974, Dec. 31, 1974, June 30, 1975, liabilities" and, therefore, against "total assets/liabilities." and March 31, 1976, respectively, member banks exclude and noninsured 5 See third paragraph of note 1 above. nonmember banks include 1, 2, 3, 4, and 5 noninsured trust companies 6 Effective Mar. 31, 1976, includes "reserves for securities" and a that are members 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 • NOVEMBER 1976 ASSETS BY CLASS OF BANK, MARCH 31 1976 y (Assets and liabilities are shown in millions of dollars.) Member banks1 Insured Non- Assets commercial Large banks member banks banks i Total All other New York City of Other City Chicago large Cash bank balances, items in process 119,026 101,773 26,340 4,185 39,319 31,929 17,260 Currency and coin 11,216 8,440 714 158 2,845 4,723 2,776 28,525 28,525 4,702 2,065 11,946 9,812 Demand balances with banks in United States 27,671 17,248 6,704 102 3,187 7,255 10,430 Other balances with banks in United States 6,586 4,267 40 16 1,593 2,618 2,319 Balances with banks in foreign countries 2,910 2,530 169 41 1,465 856 379 Cash items in process of collection 42,119 40,763 14,010 1,803 18,283 6,666 1,356 Total securities held—Book value 229,529 162,998 17,581 7,459 53,826 84,131 66,534 U.S. Treasury 4 Trading-account securities 5,664 5,584 2,364 772 2,189 259 79 U.S. Treasury 4 Bank investment portfolios 223,865 157,414 15,217 6,687 51,637 83,872 66,454 U.S. Treasury 85,372 61,367 7,315 3,137 20,840 30,074 24,007 Other U.S. Govt, agencies 32,946 20,181 873 324 5,869 13,115 12,765 States and political subdivisions 100,143 72,384 6,666 3,083 24,090 38,545 27,759 All other portfolio securities 5,404 3,482 363 143 838 2,138 1,923 F.R. stock and corporate stock 1,506 1,259 243 82 457 478 248 Federal funds sold and securities resale agreement 36,012 27,144 1,684 1,484 13,321 10,655 8,893 Commercial banks 31,447 22,809 979 1,110 10,490 10,231 8,663 Brokers and dealers 3,200 3,019 352 344 2,008 314 181 Others 1,365 1,316 354 30 824 109 49 Other loans, gross 491,706 379,905 68,332 20,815 143,842 146,916 111,801 Less: Unearned income on loans 11,218 7,829 407 83 2,741 4,599 3,388 Reserves for loan loss 6,063 4,858 1,081 331 1,812 1,634 1,205 Other loans, net 474,425 367,217 66,844 20,401 139,289 140,683 110077,,220077 Gross other loans, by category: Real estate loans—Total 138,288 98,569 8,778 2,007 36,408 51,377 39,719 Construction and land development 15,933 13,096 3,203 502 6,177 3,214 2,836 Secured by farmland 6,111 2,644 6 15 287 2,336 3,466 Secured by residential 78,347 56,662 3,953 923 20,954 30,831 21,686 1 - to 4-family residences 73,858 53,354 3,509 827 19,709 29,309 20,504 FHA insured 8,212 7,108 560 52 3,888 2,608 1,104 Conventional 65,646 46,246 2,949 775 15,821 26,700 19,400 Multifamily residences 4,489 3,308 444 96 1,244 1,522 1,182 FHA insured 431 365 126 25 100 113 66 Conventional 4,058 2,943 318 71 1,144 1,409 1,115 Secured by other properties 37,897 26,167 1,615 567 8,990 14,996 11,731 Loans to financial institutions 37,463 35,574 13,065 4,772 14,761 2,975 1,887 To real estate investment trusts 10,381 10,072 3,877 1,536 3,930 728 309 To domestic commercial banks 3,069 2,407 799 111 1,066 431 662 To banks in foreign countries 5,687 5,560 2,526 327 2,299 408 126 To other depository institutions 2,408 2,281 601 15 1,495 170 126 To other financial institutions 15,918 15,254 5,262 2,783 5,971 1,238 664 Loans to security brokers and dealers 6,125 6,017 4,085 627 1,182 122 108 Other loans to purch./carry securities 3,868 3,238 405 315 1,619 900 630 Loans to farmers—except real estate 20,433 11,379 78 170 2,607 8,525 9,054 Commercial and industrial loans 167,013 138,858 34,725 10,642 54,574 38,917 28,155 Loans to individuals—Total 105,656 74,974 4,846 1,604 27,304 41,220 30,681 Instalment loans 83,121 58,674 3,291 903 21,703 32,777 24,447 Passenger automobiles 34,120 22,443 489 157 6,895 14,902 11,677 Residential-repair/modernize 5,853 4,175 261 35 1,739 2,140 1,678 Credit cards and related plans 11,923 10,519 1,080 511 6,032 2,897 1,403 Charge-account credit cards 9,216 8,270 772 481 4,828 2,190 946 Check and revolving credit plans 2,707 2,249 308 30 1,204 707 457 Other retail consumer goods 15,122 10,491 183 92 3,836 6,380 4,631 Mobile homes 8,628 6,187 107 36 2,279 3,765 2,441 Other 6,494 4,304 76 56 1,557 2,615 2,190 Other instalment loans 16,103 11,046 1,278 108 3,201 6,458 5,057 Single-payment loans to individuals 22,535 16,300 1,555 701 5,601 8,443 6,234 All other loans 12,859 11,293 2,350 678 5,386 2,879 1,565 Total loans and securities, net 741,472 558,618 86,352 29,426 206,893 235,947 182,881 Direct lease financing 4,200 3,988 636 129 2,619 604 212 Fixed assets—Buildings, furniture, real estate 17,832 13,368 1,454 560 5,437 5,916 4,466 Investment in unconsolidated subsidiaries 1,982 1,958 810 152 925 71 24 Customer acceptances outstanding 9,731 9,440 4,814 350 3,992 284 291 Other assets 25,301 22,440 7,940 1,677 9,061 3,761 2,907 Total assets 919,546 711,585 128,347 36,481 268,246 278,512 208,043 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • COMMERCIAL BANKS A17 LIABILITIES AND CAPITAL BY CLASS OF BANK, MARCH 31, 1976 (Assets and liabilities are shown in millions of dollars.) Member banks i Insured Non- Liabilities and capital commercial Large banks member AAccccoouunnttss banks banks1 Total All other New York City of Other City Chicago large 294,953 231,623 52,202 8,997 83,922 86,501 63,331 1,033 941 432 2 222 284 92 Other individuals, partnerships, and corporations 228,651 173,801 29,202 6,577 65,625 72,397 54,849 U.S. Government 2,474 1,798 121 25 661 990 676 States and political subdivisions 15,860 11,183 502 191 3,471 7,019 4,677 Foreign governments, central banks, etc 1,434 1,388 1,168 18 172 30 47 Commercial banks in United States 29,608 28,550 13,167 1,756 10,215 3,413 1,058 Banks in foreign countries 5,482 5,353 4,089 136 1,011 117 130 Certified and officers' checks, etc 10,410 8,610 3,522 291 2,545 2,252 1,801 Time deposits 285,241 213,442 33,200 13,467 78,372 88,403 71,799 197 152 12 139 45 Mutual savings banks 553 537 297 2 193 45 16 Other individuals, partnerships, and corporations 219,140 161,988 22,954 9,460 58,504 71,069 57,152 618 478 91 1 201 186 141 States and political subdivisions 46,328 32,819 1,032 1,442 14,147 16,198 13,508 Foreign governments, central banks, etc 8,550 8,337 5,122 1,136 2,047 33 213 Commercial banks in United States 8,504 7,843 3,001 1,340 2,786 716 661 Banks in foreign countries 1,351 1,288 703 86 482 17 63 Savings deposits 179,421 129,091 8,650 2,706 47,534 70,201 50,330 Individuals and nonprofit organizations 170,989 123,059 8,247 2,616 45,430 66,767 47,930 Corporations and other profit organizations 5,437 3,978 192 66 1,677 2,042 1,459 U.S. Government 2,925 1,988 161 23 418 1,385 938 All other 68 65 50 8 7 3 Total deposits 759,615 574,155 94,053 25,169 209,828 245,105 185,460 Federal funds purchased and securities sold under agreements to repurchase 57,248 54,654 11,733 7,536 27,819 7,566 2,594 35,330 34,269 6,625 5,261 18,388 3,995 1,061 Brokers and dealers 5,608 5,408 751 1,001 2,967 689 200 Others 16,309 14,976 4,357 1,273 6,464 2,881 1,333 Other liabilities for borrowed money 4,467 4,164 1,913 58 1,872 321 304 Mortgage indebtedness 770 554 53 16 304 182 216 Bank acceptances outstanding 10,385 10,094 5,431 352 4,026 285 291 15,212 13,223 4,266 897 5,164 2,897 2,065 847,697 656,844 117,448 34,028 249,013 256,355 190,930 Subordinated notes and debentures 4,549 3,676 916 84 1,698 978 873 67,300 51,065 9,983 2,368 17,535 21,178 16,240 Preferred stock 53 34 10 24 20 15,699 11,631 2,259 570 3,875 4,928 4,070 27,112 20,277 3,906 1,149 7,279 7,944 6,836 22,710 17,906 3,745 600 5,962 7,600 4,807 Other capital reserves 1,725 1,218 75 50 410 684 508 Total liabilities and equity capital 919,546 711,585 128,347 36,481 268,246 278,512 208,043 220,752 160,512 24,904 5,413 54,763 75,432 60,241 Average for last 15 or 30 days: 117,460 110011,,114477 26,918 4,255 38,935 31,039 16,316 Average Federal funds sold and securities purchased under agreements to resell 36,716 27,406 1,767 1,379 12,856 11,404 9,340 Average total loans 486,101 371,737 68,027 20,768 140,866 142,077 114,363 Average time deposits of $100,000 or more 144,427 120,645 30,152 11,156 50,764 28,574 23,781 751,437 567,916 91,522 25,125 207,676 243,593 183,520 Average Federal funds purchased and securities sold under agreements to repurchase 59,318 56,753 14,503 7,312 27,223 7,715 2,565 Average other liabilities for borrowed money 4,093 3,813 1,666 47 1,815 286 280 Standby letters of credit outstanding 9,756 9,304 4,800 950 2,940 614 452 123,946 103,711 26,372 9,098 42,807 25,434 20,235 Certificates of deposit 119,853 99,898 24,706 9,051 40,992 25,148 19,955 23,301 20,501 5,253 2,159 9,478 3,610 2,800 14,368 5,778 11 9 155 5,603 8,595 1 Member banks exclude and nonmember banks include 5 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 domember banks exclude 2 national banks outside the continental United mestic subsidiaries. Securities are reported on a gross basis before deduc- States. tions of valuation reserves. Holdings by type of security will be reported 2 See table (and notes), Deposits Accumulated for Payment of Personal as soon as they become available. Loans, p. 24. Back data in lesser detail were shown in previous Bulletins. Details 3 Demand deposits adjusted are demand deposits other than domestic may not add to totals because of rounding. commercial interbank and U.S. Govt., less cash items reported as in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 WEEKLY REPORTING BANKS • NOVEMBER 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 Total i cial cul- Real cial Treas- se- and tural Pers. estate banks ury curi- indus- U.S U.S. and se- ties trial Treas- Other Treas- Other sales Other curi- ury sees. ury sees. finance ties sees. sees. cos., etc. Large banks— Total 1975 Oct. 1 390,570 17,809 15,054 1,291 632 832 276,761 119,944 3,645 896 3,822 2,260 9,570 19,458 59,554 8 390,283 18,017 13,423 2,990 958 646 276,009 119,408 3,632 2,248 3,843 2,262 8,721 19,280 59,477 15 391,689 19,703 15,297 2,638 ,057 711 275,949 119,405 3,624 1,499 4,174 2,275 8,700 19,170 59,582 22 385,274 15,606 12,922 1,546 533 605 273,395 118,542 3,639 898 3,489 2,260 8,630 19,071 59,681 29 385,124 16,454 13,842 1,653 466 493 272,879 118,442 3,596 798 3,683 2,266 8,303 19,015 59,733 1976 Sept. 1 393,119 20,705 17,536 1,635 653 881 269,475 111,137 4,191 1,613 6,815 2,554 6,887 17,316 62,055 8 395,153 23,470 19,599 2,424 752 695 268,91 111,237 4,203 1,632 6,391 2.535 6,800 17,276 62,082 15 397,347 23,315 18,190 3,608 701 816 270,748 111,853 4,205 2,224 6,463 2.536 6,884 17,297 62,260 22 392,506 18,791 15,574 1,819 622 776 270,243 112,165 4,202 1,226 6,714 2,532 6,624 17,105 62,378 29 392,825 18,702 15,711 1,685 518 788 270,394 112,313 4,224 1,035 6,439 2,554 6,631 17,123 62,431 Oct. 6 401,249 25,027 17,738 5,313 642 1,334 272,646 112,510 4,229 2,381 7,154 2.524 6,620 17,111 62,446 13 397,704 21,052 17,757 1,823 536 936 272,083 112,497 4,247 1,290 7,076 2,496 6,680 17,137 62,540 20 397,777 19,723 16,278 2,098 480 867 273,371 13,302 4,255 1,685 7,379 2.525 7,053 16,927 62,743 27 396,764 19,751 16,239 1,911 418 1,183 272,929 13,525 4,278 1,526 7,436 2,536 6,828 16,885 62,822 New York City 1975 Oct. 1 91,066 2,223 1,878 300 71,325 37,288 106 850 2,277 404 3,525 7,530 9,225 8 90,572 1,216 1,039 128 71,620 37,159 107 1,950 2,460 406 2,950 7,400 9,262 15 91,832 2,655 2,451 70 116 71,451 37,182 108 1,216 2,885 400 2,911 7,324 9,323 22 89,668 2,013 1,805 158 70,074 36,925 109 824 2,271 404 2,965 7,288 9,346 29 88,943 1,703 1,510 102 69,962 36,917 110 746 2,427 405 2,810 7,252 9,341 1976 Sept. 1 87,758 1,701 946 356 318 66,564 32,604 1,499 394 2,457 6,548 9,249 8 86,242 1,266 851 277 57 65,932 32,626 1,513 392 2,382 6,415 9,211 15 88,070 2,505 1,658 572 197 66,583 32,796 1,618 389 2,512 6,453 9,240 22 86,769 1,526 956 387 114 65,743 32,725 1,074 386 2,251 6,374 9,211 29 85,768 1,177 689 258 198 65,360 32,864 909 386 2.245 6,298 9,181 Oct. 6 87,857 1,273 909 172 156 67,332 33,027 2,082 4,040 376 2.246 6,304 9,166 13 87,818 1,238 690 275 241 66,654 33,185 1,122 4,084 372 2,238 6,269 9,127 20 88,787 1,972 1,398 375 167 67,309 33,414 1,465 4,135 373 2,476 6,214 9,133 27 88,441 2,379 1,400 552 410 66,834 33,520 1,346 4,167 369 2,339 6,163 9,135 Outside New York City 1975 Oct. 1 299,504 15,586 13,176 1,246 632 532 205,436 82,656 3,539 46 1,545 1,856 6,045 11,928 50,329 8 299,711 16,801 12,384 2,941 958 518 204,389 82,249 3,525 298 1,383 1,856 5,771 11,880 50,215 15 299,857 17,048 12,846 2,620 987 595 204,498 82,223 3,516 283 1,289 1,875 5,789 11,846 50,259 22 295,606 13,593 11,117 1,496 533 447 203,321 81,617 3,530 74 1,218 1,856 5,665 11,783 50,335 29 296,181 14,751 12,332 1,562 466 391 202,917 81,525 3,486 52 1,256 1,861 5,493 11,763 50,392 1976 Sept. 1 305,361 19,004 16,590 1,279 572 563 202,911 78,533 4,110 114 2,855 2,160 4,430 10,768 52,806 8 308,911 22,204 18,748 2,147 671 638 202,979 78,611 4,121 119 2,755 2,143 4,418 10,861 52,871 15 309,277 20,810 16,532 3,036 623 619 204,165 79,057 4,125 606 2,726 2.147 4.372 10,844 53,020 22 305,737 17,265 14,618 1,432 553 662 204,500 79,440 4,121 152 2,960 2,146 4.373 10,731 53,167 29 307,057 17,525 15,022 1,427 486 590 205,034 79,449 4,141 126 2,919 2,168 4,386 10,825 53,250 Oct. 6 313,392 23,754 16,829 5,141 606 1,178 205,314 79,483 4,143 299 3,114 2.148 4.374 10,807 53,280 13 309,886 19,814 17,067 1,548 504 695 205,429 79,312 4,158 168 2,992 2,124 4,442 10,868 53,413 20 308,990 17,751 14,880 1,723 448 700 206,062 79,888 4,165 220 3,244 2,152 4,577 10,713 53,610 27 308,323 17,372 14,839 1,359 401 773 206,095 80,005 4,187 180 3,269 2,167 4,489 10,722 53,687 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

NOVEMBER 1976 • WEEKLY REPORTING BANKS A19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer- Notes and bonds cial banks maturing— Obligations Other bonds, Loan of States corp. stocks, Wednesday loss and and Con- For- reserve political securities sumer eign All and un- subdivisions instal- gOVtS.3 other earned Total Bills Total For- ment income eign on Within 1 to After loans1 1 yr. 5 yrs. 5 yrs. Tax Certif. war- All of rants4 other partici- All pations other6 Large banks— Total 1975 5,827 35,012 1,405 18,460 5,793 35,461 10,080 5,495 16,988 2,898 60,539 6,445 40,034 2,390 11,670 Oct. 1 5,938 34,997 1,415 18,059 5,816 35,748 10,212 4,396 17,088 3,052 60,509 6,372 39,954 2,346 11,837 8 5,926 34,996 1,453 18,439 5,792 35,036 9,827 5,410 16,903 2,896 61,001 6,758 39,963 2,348 11,932 15 5,858 35,051 1,477 18,039 5,756 35,716 9,559 5,431 17,875 2,851 60,557 6,458 39,805 2,298 11,996 22 5,782 35,142 1,539 17,957 5,766 35,155 9,029 5,518 17,867 2,741 60,636 6,739 39,916 2,306 11,675 29 1976 5,999 37,611 1,847 18,091 8,634 43,141 10,791 6,141 22,128 4,081 59,798 6,130 40,250 2,656 10,762 Sept. 1 5,899 37,655 1,928 18,204 8,666 42,634 10,585 6,162 21,825 4,062 60,138 6,578 40,354 2,545 10,661 8 5,818 37,725 1,943 18,312 8,688 43,267 10,978 6,238 22,001 4,050 60,017 6,298 40,305 2,560 10,854 15 6,168 37,837 1,851 18,307 8,701 43,603 11,331 6,194 22,038 4,040 59,869 6,210 40,126 2,648 10,885 22 6,095 37,983 1,924 18,406 8,636 43,421 10,919 6,140 22,338 4,024 60,308 6,409 40,311 2,392 11,196 29 6,033 38,006 2,041 18,250 8,543 43,736 11,301 6,091 22,423 3,921 59,840 6,405 40,038 2,359 11,038 Oct. 6 5,929 38,018 1,941 18,536 8,602 44,469 10,858 6,099 22,713 4,799 60,100 6,445 40,057 2,348 11,250 13 5,986 37,929 1,940 18,111 8,608 43,918 10,617 5,972 22,762 4,567 60,765 6,795 40,150 2,314 11,506 20 5,885 38,056 1,945 17,867 8,615 43,954 11,016 6,101 22,323 4,514 60,130 6,425 39,964 2,354 11,387 27 New York City 1975 2,511 3.574 522 4,071 1,749 7,875 2,344 778 4,039 714 9,643 1,494 6,041 178 1,930 Oct. 1 2,583 3,578 517 3,985 1,740 8,264 2,585 762 4,058 859 9,472 1,441 5,993 177 1,861 8 2,576 3,570 546 4,126 1,724 8,146 2,556 759 4,107 724 9,580 1,426 6,031 178 1,945 15 2,550 3.575 585 3,931 1,689 8,093 2,232 699 4,512 650 9,488 1,405 5,983 178 1,922 22 2,503 3,583 644 4,014 1,709 7,782 1,981 689 4,520 592 9,496 1,472 5,988 178 1,858 29 1976 2,619 3,870 548 3,699 1,725 10,221 2,735 1,026 5,274 1,186 9,272 1,442 6,175 281 1,374 Sept. 1 2,469 3,864 603 3,773 1,716 9,749 2,511 997 5,051 1,190 9,295 1,490 6,187 280 1,338 8 2,416 3,884 567 3,784 1,724 9,656 2,678 1,025 4,829 1,124 9,326 1,467 6,226 280 1,353 15 2,692 3,935 518 3,766 1,727 10,312 3,448 970 4,843 1,051 9,188 1,423 6,130 290 1,345 22 2,621 3,934 525 3,644 1,655 9,969 2,904 930 5,009 1,126 9,262 1,437 6,166 290 1,369 29 2,577 3,943 614 3,710 1,623 10,106 2,946 793 5,218 1,149 9,146 1,435 6,158 290 1,263 Oct. 6 2,518 3,942 532 3,979 1,642 10,688 3,021 795 5,281 1,591 9,238 1,420 6,201 290 1,327 13 2,551 3,960 546 3,735 1,645 10,129 2,800 765 5,253 1,311 9,377 1,512 6,086 237 1,542 20 2,555 3,957 555 3,637 1,636 10,043 3,121 789 4,971 1,162 9,185 1,376 5,988 242 1,579 27 Outside New York City 1975 3,316 31,438 883 14,389 4,044 27,586 7,736 4,717 12,949 2,184 50,896 4,951 33,993 2,212 9,740 Oct. 1 3,355 31,419 898 14,074 4,076 27,484 7,627 4,634 13,030 2,193 51,037 4,931 33,961 2.169 9,976 8 3,350 31,426 907 14,313 4,068 26,890 7,271 4,651 12,796 2,172 51,421 5,332 33,932 2.170 9,987 15 3,308 31,476 892 14,108 4,067 27,623 7,327 4,732 13,363 2,201 51,069 5,053 33,822 2,120 10,074 22 3,279 31,559 895 13,943 4,057 27,373 7,048 4,829 13,347 2,149 51,140 5,267 33,928 2,128 9,817 29 1976 3,380 33,741 1,299 14,392 6,909 32,920 8,056 5,115 16,854 2,895 50,526 4,688 34,075 2,375 9,388 Sept. 1 3,430 33,791 1,325 14,431 6,950 32,885 8,074 5,165 16,774 2,872 50,843 5,088 34,167 2,265 9,323 8 3,402 33,841 1,376 14,528 6,964 33,611 8,300 5,213 17,172 2,926 50,691 4,831 34,079 2,280 9,501 15 3,476 33,902 1,333 14,541 6,974 33,291 7,883 5,224 17,195 2,989 50,681 4,787 33,996 2,358 9,540 22 3,474 34,049 1,399 14,762 6,981 33,452 8,015 5,210 17,329 2,898 51,046 4,972 34,145 2,102 9,827 29 3,456 34,063 1,427 14,540 6,920 33,630 8,355 5,298 17,205 2,772 50,694 4,970 33,880 2,069 9,775 Oct. 6 3,411 34,076 1,409 14,557 6,960 33,781 7,837 5,304 17,432 3,208 50,862 5,025 33,856 2,058 9,923 13 3,435 33,969 1,394 14,376 6,963 33,789 7,817 5,207 17,509 3,256 51,388 5,283 34,064 2,077 9,964 20 3,330 34,099 1,390 14,230 6,979 33,911 7,895 5,312 17,352 3,352 50,945 5,049 33,976 2,112 9 ,r 27 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 • NOVEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits Demand Cash Bal- Investitems Re- Cur- ances ments Total in serves rency with in sub- Other assets/ Dom estic Wednesday process with and do- sidiar- assets total States inter!3 ank of F.R. coin mestic ies not liabil- and collec- Banks banks consol- ities 1 polit- Fortion idated ical U.S. eign Total IPC sub- Govt. Com- Mutual govts., divi- mer- sav- etc. 3 sions cial ings Large banks— Total 1975 Oct. 1 36,864 21,456 4,808 13,240 1,794 38,788 507,520 168,282 120,217 6,570 1,082 25,793 925 1,223 8. 33,477 19,418 4,680 11,927 1,800 37,716 499,301 160,849 118,002 5,805 906 23,051 851 1,119 H 41,748 20,810 4,976 14,079 1,801 37,791 512,894 173,950 126,094 6,235 1,647 26,156 846 1,102 77 32,660 21,809 5,048 12,432 1,792 38,009 497,024 159,863 116,374 5,890 1,454 23,345 767 1,081 29. 31,848 22,360 5,211 11,491 1,794 38,183 496,011 159,838 116,592 5,880 1,261 22,111 794 1,141 1976 Sept. 1 35,358 21,805 5,308 12,176 2,136 45,773 515,675 166,689 120,365 6,346 1,127 24,617 845 1,023 8. 36,447 22,208 5,207 11,550 2,119 46,255 518,939 166,598 121,171 5,790 1,698 24,829 849 1,011 15. 39,051 17,964 5,444 12,028 2,116 46,157 520,107 175,122 126,196 6,148 4,737 24,031 764 1,176 77, 33,460 19,404 5,474 10,502 2,120 45,277 508,743 162,256 117,377 6,010 2,603 23,142 744 1,138 79, 35,950 23,243 5,619 11,902 2,116 45,987 517,642 165,960 119,089 5,620 2,668 24,011 761 1,016 Oct. 6. 36,831 16,628 4,922 12,104 2,158 46,670 520,562 171,099 121,274 5,834 2,440 26,157 968 1,097 n. 40,238 24,750 5,523 12,469 2,172 47,009 529,865 173,402 125,603 5,587 1,614 26,111 955 1,208 20. 35,788 23,011 5,468 12,374 2,347 45,572 522,337 169,020 122,606 5,770 2,544 24,464 913 1,226 27. 35,070 19,807 5,654 11,785 2,351 45,772 517,203 167,554 121,360 5,939 2,060 23,671 876 1,464 New York City 1975 Oct. 1 13,880 7,415 667 6,590 805 13,229 133,652 50,973 27,901 665 100 13,349 596 986 8. 12,465 5,770 662 5,527 804 13,195 128,995 47,330 27,689 615 90 11,044 511 903 15. 14,475 6,411 671 6,542 804 12,664 133,399 50,962 29,099 702 256 12,819 499 860 22. 11,048 5,693 683 5,821 804 13,205 126,922 46,142 25,904 569 202 11,809 459 841 29. 12,070 7,462 683 5,107 806 12,712 127,783 46,871 26,740 465 159 10,619 464 904 1976 Sept. 1 11,991 7,080 740 5,409 954 15,640 129,572 47,476 26,540 596 83 11,623 479 798 8. 11,479 7,877 746 4,737 951 16,183 128,215 45,572 26,149 482 138 10,908 457 778 15. 12,263 5,086 735 5,388 949 15,730 128,221 49,614 28,074 523 1,354 11,284 400 946 22, 11,845 5,373 755 4,422 949 15,169 125,282 45,736 25,068 651 399 11,514 391 907 29. 14,181 6,949 766 5,046 956 15,906 129,572 48,704 26,585 515 386 11,930 405 780 Oct. 6. 13,109 5,439 718 4,962 1,000 16,007 129,092 48,625 26,168 546 397 11,975 548 769 13. 13,496 8,491 758 5,142 1,011 16,180 132,896 48,398 26,626 542 232 12,060 520 915 20. 12,251 6,408 753 5,213 1,011 14,635 129,058 48,625 27,232 585 430 12,075 500 944 27. 12,075 5,220 748 4,976 1,011 14,996 127,467 47,791 26,547 555 303 11,175 468 1,195 Outside New York City 1975 Oct. 1 , 22,984 14,041 4,141 6,650 989 25,559 373,868 117,309 92,316 5,905 982 12,444 329 237 8 21,012 13,648 4,018 6,400 996 24,521 370,306 113,519 90,313 5,190 816 12,007 340 216 15. 27,273 14,399 4,305 7,537 997 25,127 379,495 122,988 96,995 5,533 1,391 13,337 347 242 22 21,612 16,116 4,365 6,611 988 24,804 370,102 113,721 90,470 5,321 1,252 11,536 308 240 29, 19,778 14,898 4,528 6,384 988 25,471 368,228 112,967 89,852 5,415 1,102 11,492 330 237 1976 SSeepptt.. 1 23,367 14,725 4,568 6,767 1,182 30,133 386,103 119,213 93,825 5,750 1,044 12,994 366 225 8, 24,968 14,331 4,461 6,813 1,168 30,072 390,724 121,026 95,022 5,308 1,560 13,921 392 233 15 26,788 12,878 4,709 6,640 1,167 30,427 391,886 125,508 98,122 5,625 3,383 12,747 364 230 22 21,615 14,031 4,719 6,080 1,171 30,108 383,461 116,520 92,309 5,359 2,204 11,628 353 231 29 21,769 16,294 4,853 6,856 1,160 30,081 388,070 117,256 92,504 5,105 2,282 12,081 356 236 Oct. 6 23,722 11,189 4,204 7,142 1,158 30,663 391,470 122,474 95,106 5,288 2,043 14,182 420 328 13 26,742 16,259 4,765 7,327 1,161 30,829 396,969 125,004 98,977 5,045 1,382 14,051 435 293 20 23,537 16,603 4,715 7,161 1,336 30,937 393,279 120,395 95,374 5,185 2,114 12,389 413 282 27 22,995 14,587 4,906 6,809 1,340 30,776 389,736 119,763 94,813 5,384 1,757 12,496 408 269 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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, Certi- States pur- ties, notes I Wednesday fied and Do- chased, etc. 9 debenand polit- mes- For- etc. 8 F.R. tures 10 offi- Total 7 ical tic eign Banks Other cers' Sav- Other sub- inter- govts. 3 checks ings divi- bank Large banks— Total 1975 7,296 226,110 65,999 116,500 22,067 7,928 12,241 48,488 393 3,962 23,931 36,354 Oct. 1 6,234 226,958 66,128 116,642 22,285 8,064 12,508 47,427 38 4,103 23,558 36,368 8 6,828 225,734 66,165 115,701 22,152 8,053 12,308 47,866 353 4,113 24,602 36,276 15 6,148 226,418 66,330 116,182 22,206 8,096 12,249 45,394 842 4,195 24,032 36,280 22 7,366 225,805 66,222 115,872 22,267 8,028 12,071 46,470 3 3,917 23,645 36,333 29 1976 7,271 221,423 80,937 105,378 19,824 6,002 7,776 61,621 210 3,941 21,681 40,110 Sept. 1 5,852 221,436 81,342 105,046 19,764 5,932 7,885 65,781 3,790 21,280 40,054 8 6,680 221,052 81,280 104,932 19,659 5,863 7,856 57,515 131 4,042 22,205 40,040 15 5,898 222,285 81,593 105,704 19,672 5,915 7,919 58,824 24 3,801 21,492 40,061 22 7,050 223,690 82,090 106,373 19,795 5,925 7,947 62,494 259 3,785 21,326 40,128 29 7,812 223,785 83,045 105,704 19,659 5,908 7,938 60,396 10 3,969 20,917 40,386 Oct. 6 6,618 223,223 83,260 105,079 19,568 5,981 7,870 67,572 11 3,949 21,231 40,477 13 6,058 222,806 83,886 104,499 19,303 5,799 7,868 64,067 40 3,925 21,870 40,609 20 6,613 222,596 84,243 104,241 19,194 5,700 7,823 60,717 511 3,917 21,401 40,507 27 New York City 1975 3,522 48,277 7,277 27,419 1,553 3,189 7,928 13,331 1,826 9,035 10,210 Oct. 1 2,975 49,027 7,265 27,866 1,562 3,328 8,146 11,548 1,806 9,069 10,215 8 3,265 48,592 7,258 27,498 1,565 3,358 8,036 11,517 275 1,818 10,052 10,183 15 2,844 48,806 7.273 27,669 1,584 3,420 7,984 10,104 680 1,932 9,071 10,187 22 4,176 48,432 7.274 27,449 1,596 3,432 7,827 11,886 1,651 8,757 10,186 29 1976 3,584 41,390 8,901 23,009 1,227 2,600 4,805 18,232 210 1,528 9,280 11,456 Sept. 1 2,563 41,070 8,943 22,772 1,197 2,533 4,813 19,602 1,567 8,930 11,474 8 3,095 40,676 8,940 22,507 1,164 2,479 4,781. 15,051 1,422 9,970 11,488 15 2,789 40,707 8,968 22,537 1,159 2,457 4,759 16,293 1,642 9,420 11.484 22 3,754 40,903 9,024 22,519 1,227 2,456 4,754 16,991 215 1,664 9,610 11.485 29 4,117 41,011 9,115 22,524 1,252 2,515 4,699 16,778 1,802 9,333 11,543 Oct. 6 3,201 40,795 9,148 22,299 1,296 2,598 4,616 20,742 1,746 9,651 11,564 13 2,789 40,770 9,249 22,175 1,290 2,524 4,696 16,456 1,748 9,886 11,573 20 3,275 40,612 9,263 22,040 1,328 2,502 4,690 15,895 1,823 9,788 11,558 27 Outside New York City 1975 3,774 177,833 58,722 89,081 20,514 4,739 4,313 35,157 393 2,136 14,896 26,144 Oct. 1 3,259 177,931 58,863 88,776 20,723 4,736 4,362 35,879 38 2,297 14,489 26,153 8 3,563 177,142 58,907 88,203 20,587 4,695 4,272 36,349 78 2,295 14,550 26,093 15 3,304 177,612 59,057 88,513 20,622 4,676 4,265 35,290 162 2,263 14,961 26,093 22 3,190 177,373 58,948 88,423 20,671 4,596 4,244 34,584 3 2,266 14,888 26,147 29 1976 3,687 180,033 72,036 82,369 18,597 3,402 2,971 43,389 2,413 12,401 28,654 Sept. 1 3,289 180,366 72,399 82,274 18.567 3,399 3,072 46,179 2,223 12,350 28,580 8 3,585 180,376 72,340 82,425 18,495 3,384 3,075 42,464 131 2,620 12,235 28,552 15 3,109 181,578 72,625 83,167 18,513 3,458 3,160 42,531 24 2,159 12,072 28,577 22 3,296 182,787 73,066 83,854 18.568 3,469 3,193 45,503 44 2,121 11,716 28,643 29 3,695 182,774 73,930 83,180 18,407 3,393 3,239 43,618 10 2,167 11,584 28,843 Oct. 6 3,417 182,428 74,112 82,780 18,272 3,383 3,254 46,830 11 2,203 11,580 28,913 13 3,269 182,036 74,637 82,324 18,013 3,275 3,172 47,611 40 2,177 11,984 29,036 20 3,338 181,984 74,980 82,201 17,866 3,198 3,133 44,822 511 2,094 11,613 28,949 27 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 • NOVEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A—Continued (In millions of dollars) Memoranda Large negotiable Savings ownership categories time CD's All other large Total included in time time deposits14 WWeeddnneessddaayy Total loans De- and savings deposits13 Individ- Partloans and mand uals ner- Do- (gross) invest- deposits and ships mestic ad- ments ad- non- and govern- All justed11 (gross) justed12 Issued Issued Issued Issued profit cor- mental other16 ad- Total to to Total to to orga- pora- units justed11 IPC's others IPC's others niza- tions for tions profit15 Large banks—Total 1975 Oct. 1 282,695 378,695 104,543 84,078 56,416 27,662 33,125 18,326 14,799 65,999 8 283,961 380,218 103,415 84,568 56,554 28,014 33,478 18.410 15,068 66,128 15 283,730 379,767 104,399 83,360 55,665 27,695 33,439 18,380 15,059 66,165 22 279,397 375,670 102,404 83,783 56,121 27,662 33,485 18.411 15,074 66,330 29 278,951 374,742 104,618 83,388 55,991 27,397 33,502 18,414 15,088 66,222 1976 SSeepptt.. 11 279,363 382,302 105,587 65,382 43,360 22,022 27,666 15,367 12,299 76,413 3,453 998 88 279,792 382,564 103,624 65,123 43,134 21,989 27,656 15,339 12,317 76,684 3,543 1,010 15 282,723 386,007 107,303 64,618 42,755 21,863 27,608 15,408 12,200 76,672 3,506 1,019 22 280,402 383,874 103,051 65,543 43,463 22,080 27,326 15,145 12,181 76,898 3,537 1,074 29 280,230 383,959 103,331 65,990 43,670 22,320 27,564 15,407 12,157 77,290 3,607 1,120 Oct. 6 286,668 390,244 105,671 65,096 42,808 22,288 27,484 15,481 12,003 78,051 3,649 1,270 13 281,757 386,326 105,439 64,574 42,272 22,302 26,972 15,215 11,757 78,230 3,694 1,259 20 283,351 388,034 106,224 63,563 41,584 21,979 27,024 15,312 11,712 78,611 3,777 1,420 27 283,172 387,256 106,753 63,151 41,296 21,855 26,769 15,282 11,487 78,800 3,863 1,499 New York City 1975 Oct. 1 72,243 89,761 23,644 29,665 19,205 10,460 7,862 4,901 2,961 7,277 8 72,549 90,285 23,731 30,495 19,688 10,807 7,824 4,874 2,950 7,265 15 72,386 90,112 23,412 30,078 19,317 10,761 7,804 4,871 2,933 7,258 22 70,995 88,576 23,083 30,315 19,581 10,734 7,780 4,814 2,966 7.273 29 70,959 88,237 24,023 30,117 19,519 10,598 7,692 4,745 2,947 7.274 1976 SSeepptt.. 11 68,298 87,791 23,779 22,519 14,685 5,913 4,306 1,607 8,386 317 150 88 67,396 86,440 23,047 22,177 14,505 5,948 4,291 1,657 8,396 325 143 15 68,338 87,320 24,713 21,704 14,134 5,984 4,350 1,634 8,403 325 155 22 67,351 86,851 21,978 21,770 14,246 5,881 4,229 1,652 8,405 331 174 29 66,712 85,943 22,207 21,766 14,162 6,003 4,275 1,728 8,459 333 183 Oct. 6 68,549 87,801 23,144 21,673 14,034 6,088 4,387 1,701 8,486 340 237 13 68,018 87,944 22,610 21,591 13,890 5,923 4,290 1,633 8,526 343 227 20 68,679 88,185 23,869 21,463 13,770 5,869 4,251 1,618 8,566 352 276 27 68,826 88,054 24,238 21,399 13,663 5,801 4,268 1,533 8,582 361 267 Outside New York City 1975 Oct. 1 210,452 288,934 80,899 54,413 37,211 17,202 25,263 13,425 11,838 58,722 8 211,412 289,933 79,684 54,073 36,866 17,207 25,654 13,536 12,118 58,863 15 211,344 289,655 80,987 53,282 36,348 16,934 25,635 13,509 12,126 58,907 22 208,402 287,094 79,321 53,468 36,540 16,928 25,705 13,597 12,108 59,057 29 207,992 286,505 80,595 53,271 36,472 16,799 25,810 13,669 12,141 58,948 1976 Sept. 1 211,065 294,511 81,808 42,863 28,675 14,188 21,753 11,061 10,692 68,027 3,136 848 8 212,396 296,124 80,577 42,946 28,629 14,317 21,708 11,048 10,660 68,288 3,218 867 15 214,385 298,687 82,590 42,914 28,621 14,293 21,624 11,058 10,566 68,269 3,181 864 22 213,051 297,023 81,073 43,773 29,217 14,556 21,445 10,916 10,529 68,493 3,206 900 29 213,518 298,016 81,124 44,224 29,508 14,716 21,561 11,132 10,429 68,831 3,274 937 Oct. 6 218,119 302,443 82,527 43,423 28,774 14,649 21,396 11,094 10,302 69,565 3,309 1,033 13 213,739 298,382 82,829 42,983 28,382 14,601 21,049 10,925 10,124 69,704 3,351 1,032 20 214,672 299,849 82,355 42,100 27,814 14,286 21,155 11,061 10,094 70,045 3,425 1,144 27 214,346 299,202 82,515 41,752 27,633 14,119 20,968 11,014 9,954 70,218 3,502 1,232 A See p. A-18. 11 Exclusive of loans and Federal funds transactions with domestic 1 Loan loss reserve and unearned income on loans had been reported commercial banks. as liability items through Mar. 24, 1976. Since then the item is netted 12 All demand deposits except U.S. Govt, and domestic commercial against total loans, and therefore against total assets also. As a proxy for banks, less cash items in process of collection. this item prior to Mar. 31, 1976, reserves for loans have been used to 13 Certificates of deposit issued in denominations of $100,000 or more. calculate year-ago figures. 14 All other time deposits issued in denominations of $100,000 or more 2 Includes securities purchased under agreements to resell. (not included in large negotiable CD's). 3 Includes official institutions and so forth. 15 Other than commercial banks. ^Domestic and foreign com- 4 Includes short-term notes and bills. mercial banks, and official international organizations. 5 Federal agencies only. 6 Includes corporate stocks. NOTE.—Effective Mar. 24, 1976, 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

NOVEMBER 1976 • BUSINESS LOANS OF BANKS A23 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1976 1976 1976 1976 1975 Industry Oct. Oct. Oct. Oct. Sept. 1st 2nd 27 20 13 6 29 Sept. Aug. III half half Durable goods manufacturing: Primary metals 2,003 1,991 2,003 2,052 2,062 -59 109 -69 -36 73 -48 25 50 Machinery 4,605 4,631 4,654 4,606 4,617 -12 -123 -132 -417 -429 -296 -725 -1,668 Transportation equipment 2,298 2,387 2,397 2,456 2,426 -128 33 -177 -252 -315 -52 -367 -465 Other fabricated metal products... 1,663 1,664 1,691 1,695 1,686 -23 -14 -10 -56 -144 -87 -231 -750 Other durable goods 3,416 3,421 3,464 3,493 3,503 -87 -2 22 -109 106 53 159 -688 Nondurable goods manufacturing: Food, liquor, and tobacco 3,399 3,369 3,269 3,274 3,366 33 -154 119 3 92 -509 -417 468 Textiles, apparel, and leather 3,404 3,441 3,524 3,533 3,499 -95 -38 135 178 '243 r387 630 -532 Petroleum refining 2,561 2,589 2,536 2,525 2,5:0 41 399 -120 217 79 -138 -59 -116 Chemicals and rubber 2,641 2,622 2,604 2,551 2,525 116 -10 -13 41 -167 -40 -207 -431 Other nondurable goods 1,851 1,858 1,869 1,883 1,881 -30 -24 -24 -34 r99 107 -415 Mining, including crude petroleum ana natural gas 7,190 7,107 7,082 6,992 6,960 230 307 19 229 330 448 778 1,065 Trade: Commodity dealers 1,810 1,673 1,517 1,506 1,556 254 126 -88 -212 121 65 186 All O Re th ta e i r l wholesale 6 6 , , 1 4 0 5 7 7 6 6 , , 0 3 2 7 5 3 6 6 , ,0 2 4 5 9 2 6 6 , , 0 2 7 6 1 2 6 6 , , 3 03 4 3 0 1 7 1 4 7 7 8 7 2 r-2 5 0 18 1 9 9 3 '4 9 7 2 1 r3 3 5 7 8 r5 40 2 5 9 - - 5 1 1 81 7 Transportation 5,125 5,148 5,077 5,103 5,184 -59 -103 -73 -496 -157 -231 -388 3 Communication 1,418 1,465 1,502 1,500 1,489 -71 -80 -50 -263 57 -289 -232 -158 Other public utilities 5,611 5,697 5,687 5,719 5,699 -88 -110 -379 -526 113 -885 -772 -198 Construction 4,207 4,229 4,171 4,233 4,191 16 -82 38 -51 -177 -706 -883 -436 Services 10,395 10,371 10,362 10,290 10,405 -10 33 -29 -174 -305 r65 -240 -15 All other domestic loans 7,585 7,554 7,488 7,525 7,360 225 163 -48 385 -840 -3,428 643 Bankers acceptances.. * 4,256 4,086 3,841 3,763 3,587 669 788 147 629 -337 -1,650 -1,987 2,685 Foreign commercial and industrial loans 5,* 5,827 5,712 5,730 5,769 39 9 317 95 304 82 386 757 Total classified loans 93,810 93,528 92,751 92,762 92,658 1,152 1,386 -367 -641 -906 -5,825 -6,731 -422 Comm. paper included in total classified loans1 287 326 -39 50 —97 — 142 24 31 197 Total commercial and industrial loans of large commercial banks 113,525 113,302 112.497 112,510 112,313 1,212 1,640 r—291 -460 -892 -7,881 -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 1976 1975 1976 Oct. Sept. Aug. July June May Apr. Mar. Feb. 1st 27 29 25 28 30 26 28 31 25 IV half Durable goods manufacturing: Primary metals 1,191 1,214 1,146 1,191 1,241 1,293 1,283 1,291 1,335 -27 -50 -81 34 -131 Machinery 2,592 2,675 2,748 2,901 3,029 3,088 3,055 3,144 3,072 -354 -115 -169 -424 -284 Transportation equipment, 1,315 1,381 '1,354 1,399 1,505 1,488 1,632 1,691 1,643 -124 -186 76 -78 -110 Other fabricated metal products 747 756 765 767 799 879 919 909 1,035 -43 -110 -115 -244 -225 Other durable goods 1,668 1,736 1,758 1,763 1,815 1,843 1,871 1,793 1,838 -79 22 -30 -189 Nondurable goods manufacturing: Food, liquor, and tobacco, 1,425 1,435 1,463 1,444 1,403 1,334 1,366 1,391 1,536 32 12 -187 107 -175 Textiles, apparel, and leather 1,125 1,144 1,159 1,123 1,116 1,075 1,044 993 1,055 28 123 -2 -108 121 Petroleum refining 1,931 1,908 1,606 1,659 1,707 1,781 1,785 1,685 1,886 201 22 -146 -136 -124 Chemicals and rubber 1,486 1,464 1,460 1,444 1,466 1,462 1,495 1,540 1,603 -2 -74 -82 -43 -156 Other nondurable goods.. 930 935 948 982 986 961 979 962 942 -51 24 74 -168 98 T M r i a n d i t n e r : g o , l C e i o u n m m cl m u a d o n i d n d i g t n y a c t r d u u e r d a a e l l e g p r a e s s - ., , 5,5 2 1 2 4 0 5,3 2 4 0 2 9 '5,1 1 3 8 7 6 '5,1 1 1 9 8 1 '5,2 2 2 0 0 7 5,1 2 1 0 7 6 5,0 1 1 8 5 0 4,9 1 0 9 4 0 4,7 1 3 8 1 2 '122 2 '31 1 6 7 42 1 0 8 63 2 7 2 '73 3 6 5 O Re th ta e i r l wholesale 2 1 , , 1 4 7 0 3 0 2 1 , , 1 3 3 9 4 4 2 1 , , 0 3 8 4 0 0 2 1 , ,3 0 0 6 8 1 2 1 , , 0 3 3 0 2 8 2 1 , , 0 3 3 5 1 5 2 1 , , 0 3 3 1 6 2 2 1 , , 0 3 0 4 8 4 1 1 , , 9 2 8 7 7 9 1 8 0 6 2 -3 2 6 4 6 1 8 2 -1 -4 5 3 7 3 3 2 6 Transportation 3,883 3,934 3,941 4,032 4,237 4,246 4,252 4,250 4,329 -303 -13 -140 -153 Communication 910 903 948 937 990 1,008 984 998 1,095 -87 -8 -83 -51 -91 Other public utilities 3,523 3,604 '3,685 3,895 3,908 3,811 3,770 3,898 3,940 -304 10 -81 13 -71 Construction 1,708 1,696 '1,711 1,690 1,744 1,755 1,876 1,915 2,141 -48 -171 -266 -178 -437 Services. 4,886 4,967 '4,926 4,948 5,097 5,240 5,317 5,368 5,147 -130 -271 233 13 -38 All other domestic loans 2,447 2,419 2,356 2,415 2,350 2,349 2,507 2,700 3,093 69 -350 -599 55 -949 Foreign commercial and industrial loans 3,388 3,522 3,462 3,141 3,157 3,121 3,085 2,984 3,001 365 173 63 158 236 Total loans 44,462 44,772 '44,179 r44,409 '45,317 45,443 45,763 45,958 46,870 -545 -641 -1,017 -781 -1,658 1 Reported the last Wednesday of each month. Commercial and industrial "term" loans are all outstanding loans with NOTE.—For description of series see article "Revised Series on Com- an original maturity of more than 1 year and all outstanding loans granted mercial and Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209. under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 DEMAND DEPOSIT OWNERSHIP • NOVEMBER 1976 GROSS DEMAND DEPOSITS OF INDIVIDUALS PARTNERSHIPS, AND CORPORATIONS1 y (In billions of dollars) Type of holdei 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 fi s n in a e n s c s i al 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—Sept 18.8 108.3 69.1 2.1 11.9 210.3 Dec 19.1 116.2 70.1 2.4 12.4 220.1 1974—Mar 18.9 108.4 70.6 2.3 11.0 211.2 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 Sept.* 19.6 121.3 80.2 3.3 11.4 235.8 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—Sept 14.7 65.5 29.6 2.1 6.2 118.1 Oct 15.1 66.7 29.0 2.2 6.3 119.3 Nov 15.4 68.1 29.4 2.2 6.4 121.6 Dec 15.6 69.9 29.9 2.3 6.6 124.4 1976 Jan 15.2 68.0 30.3 2.2 6.7 122.4 Feb 15.3 65.6 29.2 2.2 6.4 118.7 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 Aug 15.0 61.4 29.2 1.8 5.6 112.9 Sept.* 15.3 65.7 31.4 2.5 6.6 121.5 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, June 30, Dec. 31, Mar. 31, Class of Dec. 31, June 30, Dec. 31, bank 1974 1975 1975 1976 bank 1974 1975 1975 All commercial.... 389 338 280 All member—Cont. Insured 387 335 280 197 Other large banks 69 74 76 National member 236 223 188 117 All other member 206 186 146 State member.... 39 36 35 35 All nonmember.... 115 79 58 All member 275 260 223 152 Insured 112 76 58 Noninsured 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-14; member" parallel the previous "Reserve City" (other than in New York from the figures for weekly reporting banks as shown on pp. A-l 8-A-22 City and the City of Chicago) and "Country" categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l 3. But they are included in the figures for "Time deposits" and "Loans" for call dates as shown on pp. A-l 4-A-l 7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • LOAN SALES BY BANKS; OPEN MARKET PAPER A25 LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions * By type of loan Date Total Commercial Real All and estate other industrial 1976—July 7. 4,530 2,862 219 1,449 14. 4,518 2,826 212 1,480 21. 4,549 2,825 207 1,517 28. 4,529 2,823 209 1,497 Aug. 4. 4,598 2,886 209 1,503 11. 4,298 2,613 209 1,476 18. 4,103 2,538 211 1,354 25. 3,990 2,508 213 1,269 Sept. 1. 3,952 2,491 210 1,251 8. 3,935 2,426 213 1,296 t n b h a o e n t i k h T a o o a l b d f b a f in i a n l g i n k a k ) t c , e ' o s s a m o n o p w f d a n t n n h y f o e . o n r b c e o a ig n n n s k o , b li t r d h a a e n t e c b d h a e n s n k , o 's n n o b h n a o c n l o d k n i n s s o g u l b i c d s o a i m d te i p a d r a i n e n y s o ( n o i - f f 2 2 1 2 9 5 . . . 3 3 3 , , , 8 8 9 2 1 2 6 8 0 2 2 2 , , , 3 4 3 8 6 5 6 3 4 2 2 2 1 1 2 1 3 2 1 1 1 , , , 2 2 2 5 2 3 1 9 5 t o 1 h f 9 a N 7 t t h 4 O e a T f B o f E e U l . d c — L t L a S t E h n e T r a d I i t N e n s c . e o c w R m h a e p d n v a a g i t r s e a e i d s d o f o o n r n f i a g t A r h u e u a r g e t s s . h d 2 o a r 8 w t e , e n c 1 , e 9 s i i 7 v n e 4 e e d . n p o F . t s o e 7 i r n 4 2 c a 1 e t c o o o f O m t t h c h p t is e . a r t O i 1 a s 9 b c o 7 t l n e . 4 Oct. 2 2 1 0 7 6 3 , , , , 3 3 3 3 , , , , 8 8 7 8 3 9 8 4 3 0 2 4 2 2 2 2 , , , , 3 4 4 4 5 7 6 0 5 2 3 6 2 2 2 2 2 2 2 2 1 1 1 2 1 1 1 1 , , , , 2 2 1 1 6 0 4 5 8 6 0 4 in the Dec. 1974 BULLETIN, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on— End companies1 of Nonperiod iss A u l e l r s p D l e a a c l e e d r 2 - p r l e D a c c t i e l - y d - 3 p f c i a c n o n i m a a i n l e - - s4 D pl e a a c l e e d r - p re l D a c c t i l - e y d - Total Tota A l ccep O t b in i w l g l n s bank b s o B u il g ls h t F O ac . w R ct n . . Ban F ei k o g s r n - Others U S p i I n t o n m a i r t t t o t - e e s d s U S p f E n r t o a o i x r t t m t - e e s d s o A th l e l r 1 1 1 1 1 9 9 9 9 9 6 7 6 6 6 6 7 9 8 0 2 1 1 3 3 1 3 7 3 2 , , , , , 6 0 0 1 6 7 4 8 7 0 1 5 5 3 0 2 2 4 6 5 , , . , , 7 4 3 5 5 2 9 3 0 1 7 0 2 3 4 2 2 1 1 1 0 0 2 0 3 , , , , , 7 5 4 1 9 4 5 7 8 2 1 6 2 4 4 2 2 5 7 , , , , 1 7 3 1 7 1 7 5 3 5 1 4 6 3 7 1,1 3 6 5 0 2 3 1 , ,9 1 9 3 7 4 4 4 5 7 3 , , , , , 4 3 4 6 0 5 1 0 2 5 1 7 3 8 8 2 1 1 1 1 , , , , , 1 5 6 9 5 9 6 0 9 4 8 7 6 4 4 1 1 1 1 , , , , 4 3 9 3 9 4 1 6 4 8 7 8 0 4 3 4 2 7 2 2 3 5 4 1 0 5 9 9 5 0 1 1 5 5 9 6 6 8 7 3 4 4 2 1 1 1 1 5 9 5 4 0 0 1 6 6 9 2 2 4 2 3 , , , , , 7 0 0 6 0 1 5 9 7 2 7 7 0 4 2 2 1 1 1 , , , , 4 8 6 0 9 2 8 0 8 9 3 9 1 7 6 1 1 , , 5 1 9 9 8 6 5 8 5 2 1 3 9 2 9 2 2 2 1 2 , , , , , 2 8 4 7 0 4 9 0 7 5 1 5 8 8 3 1 1 1 1 9 9 9 9 7 7 7 7 4 2 3 1 4 4 3 3 1 9 4 2 , , , , 7 0 1 1 2 2 7 4 1 6 3 4 5 5 5 4 , , , , 6 2 4 6 5 9 8 1 5 7 7 1 2 2 2 3 2 0 7 1 , , , , 0 5 2 8 9 3 8 0 8 9 2 4 1 6 6 8 2 , , , , 2 9 3 6 4 6 8 9 7 8 2 4 1 1 1 , , , 9 8 2 5 3 2 1 2 8 4 6 4 2 1 6 1 , , , , 9 4 5 4 1 4 1 4 1 3 8 9 1 7 6 8 8 , , , , 8 8 8 4 9 8 9 8 8 9 2 4 2 2 4 3 , , , , 8 7 2 4 3 0 2 8 7 6 6 0 2 2 2 3 , , , , 6 3 0 6 8 1 0 8 9 8 6 5 7 5 7 5 9 1 0 4 1 9 0 2 2 9 1 6 9 6 0 1 9 8 6 ,1 2 5 1 0 8 5 7 9 1 4 9 1 5 3 3 2 , , , , 4 9 8 1 0 0 9 5 6 7 4 0 2 2 4 2 , , , , 2 5 0 8 3 7 2 3 1 3 3 4 3 4 1 1 , , , , 4 0 5 9 9 6 4 0 9 7 6 9 1 2 3 3 0 , , , , 4 1 5 3 5 2 0 9 8 0 9 4 1975- O N D A Se u o e c p t c v g t . . . . . . 4 4 4 4 5 8 9 9 7 0 , , , , , 2 5 8 3 6 5 9 1 1 9 7 4 2 0 0 6 5 6 6 5 , , , , , 3 2 3 5 6 8 3 6 7 4 9 9 0 4 5 3 3 3 3 3 2 2 0 1 2 , , , , , 3 0 4 2 1 0 0 9 7 7 8 3 6 6 2 1 1 1 1 1 1 1 2 1 0 , , , , , 7 9 1 1 1 2 9 8 7 2 6 3 7 5 0 1 1 1 1 1 , , , , , 5 6 7 4 7 1 1 3 8 6 1 5 4 2 2 7 7 6 7 6 , , , , , 1 9 3 3 8 1 7 1 9 9 4 4 6 2 2 1 1 1 1 1 7 6 7 6 8 , , , , , 8 3 4 7 7 7 0 5 2 9 5 4 6 7 0 4 5 5 6 7 , , , , , 5 2 4 0 3 4 1 9 3 0 6 3 7 3 2 4 4 3 5 5 , , , , , 2 1 9 6 8 8 8 9 8 9 8 8 9 4 0 1,4 9 8 8 5 3 2 1 1 5 5 2 4 3 8 1 1, ,0 1 8 9 7 4 4 2 4 2 7 8 0 6 7 2 2 2 3 3 7 8 9 0 0 9 4 3 4 2 1 1 1 1 9 0 0 0 0 , , , , , 9 5 7 3 7 7 3 6 7 6 5 8 6 2 0 3 3 3 3 3 , , , , , 5 4 3 7 3 1 4 6 2 0 3 5 7 6 5 4 3 3 3 3 , , , , , 0 8 9 7 8 0 8 4 8 0 1 8 7 3 6 1 1 9 9 9 0 1 , , , , , 3 6 8 4 0 9 4 9 4 0 3 4 0 3 0 1976- J A M J J M A F u u a p e u a a n n l b r g r y y e . . . . . . . . . . . 4 4 4 5 5 4 5 5 9 9 0 0 9 8 1 0 , , , , , , , , 0 8 9 5 0 3 1 5 1 5 2 7 6 3 3 0 1 8 7 2 3 7 8 0 6 6 6 6 6 6 6 6 , , , , , , . , 4 0 2 1 2 0 4 4 0 7 8 4 4 2 7 4 1 5 7 3 6 8 2 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 2 , , , , , , , , 1 2 3 1 5 8 5 5 4 3 0 9 3 6 0 1 3 9 5 8 4 6 0 3 1 1 1 1 1 1 1 1 1 1 2 2 2 1 2 2 , , , , , , , , 4 9 1 7 4 6 3 2 8 9 8 3 3 3 2 2 1 2 3 3 8 8 0 8 1 1 1 1 1 1 1 1 . . , . , , . , 6 6 7 6 5 6 6 7 5 5 6 5 1 5 5 2 5 8 7 4 0 7 0 4 5 6 5 6 6 6 6 5 , , , , , , , , 9 2 9 7 3 9 7 9 3 9 3 5 1 7 0 7 8 7 6 3 8 3 4 4 1 1 1 1 1 1 1 1 9 9 9 8 9 9 9 8 , , , , , , , , 6 6 5 3 9 7 5 0 8 7 0 5 8 8 4 6 1 7 1 9 3 3 4 0 r5 5 6 6 6 6 6 6 , , , , , , , , 9 1 1 9 1 2 3 1 0 7 0 7 5 9 4 2 5 1 7 5 0 4 0 6 5 5 5 5 5 5 5 5 , , , , , , , , 2 4 2 3 3 6 3 3 5 5 4 5 7 9 6 0 5 5 9 1 8 7 7 5 r6 6 9 8 7 6 6 7 9 5 5 2 9 8 2 7 5 0 1 8 7 3 9 8 1 1 1 , , , 0 0 2 9 6 8 8 8 5 2 3 9 0 5 8 7 1 7 0 5 8 6 3 5 4 2 2 4 4 4 2 3 3 4 4 2 4 4 4 4 1 2 7 7 5 8 0 4 1 1 1 1 1 1 1 1 2 2 1 2 2 0 1 2 , , , , , , , , 9 8 1 4 0 9 1 0 2 5 6 3 9 2 0 4 7 7 8 3 4 4 7 6 4 4 4 4 4 4 3 3 , , , , , , , , 6 2 5 2 8 0 3 9 1 5 9 3 6 7 2 8 1 8 1 0 7 7 7 4 4 4 4 4 4 4 4 3 , , , , , , , , 3 3 2 3 1 0 3 9 5 2 5 0 9 3 0 0 5 7 8 8 3 9 4 6 1 1 1 1 1 1 1 1 0 0 1 1 1 0 0 1 , , , , , , , , 4 0 0 6 0 1 6 8 9 9 0 4 4 1 8 8 8 1 3 6 4 0 1 0 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, manufacsales, 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 • NOVEMBER 1976 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Monthly average rate 11997744——AApprr.. 11 10 11997755——JJaann.. 9 11001144 11997755——JJuullyy 18 714 1975—July 7.15 19.. 111000111444 15 1100 77%% Aug. 7.66 25 111000%%% 20 934 Sept. 7.88 28 99%% AAuugg.. 12 mm Oct. 7.96 MMaayy 2 Nov. 7.53 6.. 1111** FFeebb.. 3 991144 SSeepptt.. 15 8 Dec. 7.26 10 111111KKK 10 99 17.. 111111%%% 18 8 34 OOcctt.. mm 1976—Jan. 7.00 24 88%% Feb. 6.75 JJuunnee 26 1111%% NNoovv.. 77%% Mar. 6.75 MMaarr.. 5 8811//44 Apr. 6.75 JJuullyy 5.. 1122 10 88 Dec. mm May 6.75 18 777333444 June 7.20 OOcctt.. 7 113A 24 777%%% 11997766——JJaann.. 7 July 7.25 21 21 663344 Aug. 7.01 28 111111%%% MMaayy 20 771144 Sept. 7.00 JJuunnee 1 7 OOcctt.. 66..7788 NNoovv.. 4 li JJuunnee 9 7 7 mm 14 111000333444 25 111000%%% AAuugg.. 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 CCeenntteerr Aug. May Aug. May Aug. May Aug. May Aug. May Aug. May 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 Short-term 35 centers 7.80 7.44 9.06 8.91 8.58 8.38 7.99 7.78 7.84 7.52 7.61 7.18 New York City 7.48 6.99 8.85 8.84 8.40 8.29 7.91 7.65 7.77 7.29 7.36 6.83 7 Other Northeast 8.18 7.79 9.41 9.24 8.84 8.58 8.25 7.99 8.16 7.95 7.98 7.45 8 North Central 7.70 7.44 8.65 8.39 8.50 8.21 7.85 7.62 7.71 7.46 7.55 7.29 7 Southeast 7.95 7.66 9.33 9.20 8.76 8.65 8.00 7.84 7.85 7.20 7.54 7.25 8 Southwest 7.75 7.51 8.83 8.75 8.24 8.13 7.80 7.71 7.61 7.48 7.55 7.11 4 West Coast 8.15 7.75 9.26 9.14 8.79 8.51 8.28 8.00 8.06 7.71 8.05 7.61 Revolving credit 35 centers 7.87 7.36 8.70 9.23 8.33 8.12 8.02 7.59 7.80 7.35 7.88 7.32 New York City 8.14 7.42 7.25 8.26 7.73 7.70 7.49 7.56 7.29 8.19 7.43 7 Other Northeast 7.59 7.78 8.00 "8.92" 8.22 7.84 7.67 7.44 8.36 7.58 7.47 7.83 8 North Central 7.96 7.48 8.94 9.19 9.03 8.69 8.50 7.99 7.74 7.74 7.90 7.34 7 Southeast 7.48 8.01 8.75 9.85 8.40 8.95 8.16 8.35 8.15 7.13 7.69 8 Southwest 7.81 7.50 8.74 8.93 8.09 8.23 8.20 7.67 7.47 7.23 7.80 7.48 4 West Coast 7.73 7.15 9.10 8.61 8.08 7.84 7.95 7.39 7.91 7.14 7.68 7.12 Long-term 35 centers 8.45 8.02 9.61 9.21 9.02 8.80 8.55 8.16 8.60 8.33 8.40 7.92 New York City 8.52 7.85 7.68 8.27 8.45 8.05 8.45 8.44 8.51 8.56 7.76 7 Other Northeast 8.62 7.35 "9.40" 9.10 9.43 9.19 8.93 8.52 7.50 8.10 8.70 6.64 8 North Central 8.05 8.59 8.83 8.38 9.07 8.28 8.26 7.94 8.36 9.08 7.92 8.65 7 Southeast 8.88 8.03 9.60 9.49 9.08 8.90 9.88 7.70 8.18 7.75 8.06 8.01 8 Southwest 8.42 7.89 10.85 10.53 9.04 8.92 8.23 8.40 8.69 7.64 8.30 7.74 4 West Coast 8.67 8.23 9.28 9.43 8.58 8.97 8.81 7.73 10.00 8.29 8.46 8.26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • INTEREST RATES A27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities 5 PPrriimmee FFFiiinnnaaannnccceee PPPeeerrriiioooddd ccoomm ppaa mm pp ee ee rr rr cc 11 ii aall pppaaa CCC ppp OOO... eee rrr bbbaaa PPP nnn rrriii kkk mmm eeerrr eee sss ''' FFF eeerrr eee aaa ddd lll --- 3-month bills6 6-month bills® 9- to 12-month issues ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee444 yyeeaarr 90-119 4 to 6 333 tttooo 666 999000 dddaaayyysss 333 Rate Market Rate Market 1-year iissssuueess77 days months mmmooonnnttthhhsss 222 on new yield on new yield bill (mar- Other7 issue issue ket yield)6 1967 55555.....1111100000 44444.....8888899999 44444.....7777755555 44444.....2222222222 44444.....333332222211111 44444.....2222299999 44444.....666663333300000 44444.....6666611111 44444.....7777711111 44444.....8888844444 55555.....0000077777 1968 55555.....9999900000 55555.....6666699999 55555.....7777755555 55555.....6666666666 55555.....333333333399999 55555.....3333344444 55555.....444447777700000 55555.....4444477777 55555.....4444466666 55555.....6666622222 55555.....5555599999 1969 77777.....8888833333 77777.....1111166666 77777.....6666611111 88888.....2222211111 66666.....666667777777777 66666.....6666677777 66666.....888885555533333 66666.....8888866666 66666.....7777799999 77777.....0000066666 66666.....8888855555 1970 77777.....7777722222 77777.....2222233333 77777.....3333311111 77777.....1111177777 66666.....444445555588888 66666.....3333399999 66666.....555556666622222 66666.....5555511111 66666.....4444499999 66666.....9999900000 77777.....3333377777 1Q71 55555.....1111111111 44444.....9999911111 44444.....8888855555 44444.....6666666666 44444.....333334444488888 44444.....3333333333 44444.....555551111111111 44444.....5555522222 44444.....6666677777 44444.....7777755555 55555.....7777777777 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—Oct.. 6.35 6.48 6.43 6.28 5.82 6.081 5.96 6.385 6.25 6.48 6.89 7.80 Nov. 5.78 5.91 5.79 5.79 5.22 5.468 5.48 5.751 5.80 6.07 6.40 7.51 Dec.. 5.88 5.97 5.86 5.72 5.20 5.504 5.44 5.933 5.85 6.16 6.51 7.50 1976—Jan.. 5.15 5.27 5.16 5.08 4.87 4.961 4.87 5.238 5.14 5.44 5.71 7.18 Feb , 5.13 5.23 5.09 4.99 4.77 4.852 4.88 5.144 5.20 5.53 5.78 7.18 Mar. 5.25 5.37 5.27 5.18 4.84 5.047 5.00 5.488 5.44 5.82 6.12 7.25 Apr.. 5.08 5.23 5.14 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 Sept., 5.33 5.45 5.31 5.28 5.25 5.075 5.08 5.311 5.30 5.50 5.79 6.84 Oct.. 5.10 5.22 5.08 5.06 5.03 4.930 4.92 5.073 5.06 5.19 5.49 6.50 Week ending— 11997766——JJuullyy 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 5.48 5.65 5.50 5.47 5.30 5.226 5.23 5.536 5.54 5.84 6.17 7.26 5.38 5.50 5.50 5.34 5.28 5.194 5.17 5.497 5.45 5.74 6.12 7.21 AAuugg.. 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 SSeepptt.. 4 ... , 5.35 5.45 5.35 5.28 5.28 5.091 5.09 5.351 5.35 5.56 5.88 6.91 11 , , 5.38 5.50 5.34 5.31 5.25 5.087 5.11 5.333 5.31 5.53 5.83 6.88 18 .. 5.38 5.50 5.35 5.30 5.22 5.099 5.10 5.309 5.31 5.52 5.79 6.84 25 5.28 5.38 5.25 5.26 5.21 5 .<028 5.05 5.236 5.27 5.43 5.72 6.80 Oct. 2 5.25 5.38 5.25 5.25 5.32 5.072 5.06 5.325 5.30 5.48 5.74 6.80 9 . . 5.25 5.38 5.25 5.22 5.17 5.087 5.04 5.265 5.17 5.31 •5.62 6.61 16 . . 5.13 5.22 5.09 5.05 5.02 4.905 4.86 5.024 4.98 5.09 5.44 6.35 23,. , 5.00 5.13 4.95 4.93 4.97 4.799 4.84 4.911 4.97 5.11 5.39 6.39 30... 5.00 5.13 4.98 5.01 4.99 4.929 4.90 5.093 5.07 5.19 5.45 6.56 1 Averages of the most representative daily offering rate quoted by rates. Prior to this date, the daily effective rate was the rate considered dealers. most representative of the day's transactions, usually the one at which 2 Averages of the most representative daily offering rate published by most transactions occurred. finance companies, for varying maturities in the 90-179 day range. 5 Except for new bill issues, yields are averages computed from daily 3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of closing bid prices. the range of daily dealer closing rates offered for domestic issues; prior 6 Bills quoted on bank-discount-rate basis. data are averages of the most representative daily offering rate quoted by 7 Selected note and bond issues. dealers. 4 Seven-day averages of daily effective rates for week ending Wednesday. Since July 19, 1973, the daily effective Federal funds rate is an average of NOTE.—Figures for Treasury bills are the revised series described on p. the rates on a given day weighted by the volume of transactions at these A-35 of the Oct. 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 INTEREST RATES • NOVEMBER 1976 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ ratine ggrroouupp price ratio price ratio PPeerriioodd TToottaall ii States (long- Re- AAaaaa BBaaaa IInndduuss-- Rail- Public term) Total i Aaa Baa New cently trial road utility Pre- Com- Comiissssuuee ooffffeerreedd 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 1 1 9 9 7 7 5 4 6 6 . . 9 9 9 8 7 6 . . 0 1 5 9 5 6 . . 8 4 9 2 6 7 . . 5 6 3 2 9 9 . . 3 4 3 0 9 9. . 4 3 1 4 9 8 . . 4 9 6 8 8 8 . . 5 8 7 3 1 9 0 . . 5 3 0 9 9 8 . . 2 7 5 8 9 8 . . 3 9 9 8 9 9 . . 2 8 7 8 8 8 . . 2 3 3 8 4 4. . 3 4 1 7 1 9 1 . . 0 6 3 0 1975—Oct 7.29 7.40 6.67 8.01 9.45 9.43 9.51 8.86 10.37 9.32 9.40 9.94 8.58 4.22 Nov 7.21 7.41 6.64 8.08 9.20 9.26 9.44 8.78 10.33 9.27 9.36 9.83 8.50 4.07 Dec 7.17 7.29 6.50 7.96 9.36 9.21 9.45 8.79 10.35 9.26 9.37 9.87 8.57 4.14 8.61 1976—Jan 6.94 7.08 6.22 7.81 8.70 8.79 9.33 8.60 10.24 9.16 9.32 9.68 8.16 3.80 Feb 6.92 6.94 6.04 7.76 8.63 8.63 9.23 8.55 10.10 9.12 9.25 9.50 8.00 3.67 Mar 6.87 6.90 5.99 7.72 8.62 8.61 9.18 8.52 9.99 9.10 9.16 9.43 8.07 3.65 Apr 6.73 6.61 5.68 7.50 8.48 8.52 9.04 8.40 9.83 8.98 9.05 9.27 8.04 3.66 8.26 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 Sept.. , . 6.70 6.42 5.40 7.36 8.29 8.33 8.72 8.38 9.30 8.66 8.66 8.91 7.90 3.71 Oct 6.65 6.29 5.29 7.20 8.25 8.24 8.63 8.32 9.18 8.58 8.54 8.83 7.80 3.85 Week ending— 1976—Sept. 4.. 6.77 6.43 5.42 7.38 8.38 8.38 8.78 8.41 9.41 8.72 8.69 8.98 7.93 3.74 11.. 6.73 6.43 5.40 7.38 8.28 8.35 8.75 8.38 9.35 8.67 8.71 8.95 7.97 3.71 18.. 6.70 6.41 5.40 7.35 8.28 8.30 8.73 8.39 9.31 8.66 8.67 8.92 7.90 3.74 25.. 6.66 6.42 5.40 7.35 8.23 8.29 8.68 8.36 9.24 8.63 8.63 8.85 7.85 3.64 Oct. 2.. 6.69 6.40 5.40 7.34 8.29 8.29 8.68 8.37 9.22 8.63 8.60 8.86 7.84 3.72 9.. 6.64 6.32 5.31 7.24 8.26 8.23 8.65 8.33 9.20 8.59 8.58 8.52 7.89 3.81 16.. 6.61 6.25 5.24 7.16 8.15 8.20 8.62 8.30 9.18 8.57 8.54 8.49 7.77 3.84 23.. 6.65 6.28 5.28 7.19 8.28 8.25 8.62 8.31 9.18 8.58 8.53 8.49 7.78 3.86 30.. 6.70 6.30 5.31 7.21 8.29 8.27 8.63 8.33 9.16 8.59 8.52 8.48 7.77 3.87 Number of issues2 1166 2200 5 5 112211 2200 3300 4411 3300 4400 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 by 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), 40 public utility (formerly 60), 20 transportation (formerly for member firms of the New York Stock Exchange. June data for banks 15 rail), and 40 financial. are universe totals; all other data for banks represent estimates for all 2 The base period used for the "Total," "Industrial," and "Public commercial banks based on reports by a reporting sample, which acutility" series is 1941-43= 10, and for the other series is 1970= 10. counted for 60 per cent of security credit outstanding at banks on June 30. 1971. NOTE.—Annual data are averages of daily or weekly figures. Monthly 2 In addition to assigning a current loan value to margin stock generally, and weekly data are averages of daily figures unless otherwise noted and are Regulations T and U permit special loan values for convertible bonds and computed as follows: U.S. Govt, bonds, derived from average market stock acquired through exercise of subscription rights. yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year 3 Nonmargin stocks are those not listed on a national securities exchange bond. Municipal and corporate bonds, derived from average yields as and not included on the Federal Reserve System's list of over the counter computed by Standard and Poor's Corp., on basis of a 4 per cent, 20- margin stocks. At banks, loans to purchase or carry nonmargin stocks are year bond; Wed. closing prices. Common stocks, derived from com- unregulated; at brokers, such stocks have no loan value. ponent common stock prices. Average daily volume of trading, presently 4 Free credit balances are in accounts with no unfulfilled commitments conducted 5 days per week for 6 hours per day. 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

NOVEMBER 1976 • SECURITY MARKETS 29 SECURITY PRICES Common stock prices Volume of trading in Bond prices New York Stock Exchange Amer- stocks fner cent of oarl ican (thousands Stock of shares) Standard and Poor's index2 New York Stock Exchange index Ex- (Dec. 31, 1965=50) change total index U.S. State Cor- Trans- Trans- (Aug. Govt. and po- Total Indus- Public porta- Fi- Total IInndduuss-- por- UUttiilliittyy FFii-- 31, NYSE (long- local rate trial utility tion nance trial ta- nance 1973 = term) AAA tion 100) 60.52 72.3 61.6 83.22 91.29 54.48 10.02 10.00 45.72 48.03 32.14 37.24 54.64 96.63 10,532 67.73 80.0 65.0 98.29 108.35 59.33 13.90 11.86 54.22 57.92 44.35 39.53 70.38 113.40 15,381 68.71 84.4 65.9 109.20 121.79 56.90 15.83 13.98 60.29 65.73 50.17 38.48 78.35 129.10 16,487 62.80 85.4 63.7 107.43 120.44 53.47 12.66 13.37 57.42 63.08 37.74 37.69 70.12 103.80 16.374 57.45 76.3 58.8 82.85 92.91 38.91 11.51 10.17 43.84 48.08 31.89 29.82 49.67 79.97 13,883 57.44 68.9 56.2 85.17 96.15 41.21 11.42 9.92 45.73 51.88 30.73 31.45 46.62 83.15 18,568 55.23 66.1 56.0 88.57 99.29 42.59 11.46 9.31 46.87 52.26 30.79 31 .87 44.36 83.46 15,893 55.77 66.2 56.3 90.07 100.86 43.77 11.82 9.64 47.64 52.91 32.09 32.99 45.10 85.60 16.795 56.03 67.4 56.1 88.74 94.89 43.25 11.69 9.50 46.78 51.89 31.61 32.75 43.86 82.50 15,859 57.75 69.7 57.0 96.86 108.45 46.99 13.11 10.35 51.31 57.00 35.78 35.23 48.83 91 .47 32,794 57.86 68.8 57.1 100.64 113.43 47.22 13.82 11.06 53.73 59.79 38.53 36.12 52.06 100.58 31.375 58.23 69.2 57.3 101.08 113.73 45.67 13.97 11.24 54.01 60.30 39.17 35.43 52.61 104.04 23,069 59.33 71.3 58.2 101.93 114.67 46.07 14.02 11.38 54.28 60.62 38.66 35.69 52.71 103.00 18,770 57.38 69.1 56.5 101.16 113.76 45.70 14.26 10.97 53.87 60.22 39.71 35.40 50.99 103.65 17.796 57.86 69.3 56.8 101.78 114.50 45.61 14.53 11.26 54.23 60.70 40.41 35.16 51.82 103.57 18,965 58.38 71.1 57.1 104.20 117.01 47.48 14.94 11.83 55.70 62.10 42.12 36.49 54.06 105.24 18,977 58.88 74.1 57.9 103.29 115.63 48.81 14.47 11.97 55.06 61.09 40.63 37.56 54.22 102.79 15,758 59.54 74.8 58.8 105.45 117.87 50.50 14.32 11.96 56.16 62.2 40.33 38.47 54.37 102.82 18,406 59.93 76.3 59.1 101.99 114.15 50.63 13.58 11.53 54.49 60.13 38.42 38.37 52.79 99.06 17,539 59.65 74.8 58.5 105.59 118.46 50.86 14.18 11.76 56.42 62.56 40.06 38.89 53.93 102.44 18,860 60.03 76.1 59.1 103.27 115.71 50.77 13.71 11.51 55.21 61.04 38.98 38.66 52.85 100.48 17,100 60.28 76.8 59.4 101.17 113.30 50.40 13.34 11.41 54.04 59.56 37.77 38.40 52.21 98.00 17,288 59.92 76.2 59.0 101.08 113.01 49.78 13.60 11.56 53.99 59.51 38.21 38.11 52.82 98.46 18,222 59.58 76.1 59.0 101.83 113.94 50.71 13.73 11.79 54.36 59.95 38.35 38.21 53.14 98.46 17,688 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregulated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1975—Sept. 6,251 5,399 852 5,250 811 145 30 10 2,520 470 1,455 Oct., 6,455 5,448 1.007 5,300 956 144 36 15 2,311 545 1,495 Nov. 6,527 5,519 1.008 5,370 958 146 37 13 2,270 490 1,470 Dec. 6,500 5,540 960 5,390 909 147 36 15 2,281 475 1,525 1976—Jan.. 6,568 5,568 1,000 5,420 946 146 34 20 2,321 655 1,975 Feb. 7,152 6,115 1,037 5,950 984 162 34 20 2,333 685 2,065 Mar. 7,617 6,575 1,042 6,410 988 162 34 20 2,355 595 1,935 Apr. 7,932 6,856 1,076 6,690 1,023 163 32 21 2,325 570 1,740 May 8,110 7,103 1,007 6,940 957 161 31 19 2,357 540 1,655 June 8,276 7,248 1,028 7,080 976 166 33 19 2,368 540 1,680 July. 8,417 7,519 898 7,340 854 176 28 16 2,317 530 1,635 Aug. 8,683 7,622 1,061 7,450 1,008 167 34 19 2,368 555 1,605 Sept. 8,566 7,707 859 7,530 813 174 32 14 2,830 555 1,710 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS • NOVEMBER 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) TToottaall Equity class (per cent) Equity class of accounts EEnndd ooff ll (( dd ii mm oo ee nn bb iill ss tt -- End of period cr N e e d t i t in debit status b T al o a t n a c l e ppeerriioodd dd oo oo ff ll -- m 80 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 e r status 60 o r p e m r o c r e e n t 6 L 0 e p ss e r t h c a e n n t of ( m d i o l l l l i a o r n s s ) llaarrss))11 1975—Sept. 45.3 38.9 15.8 7,515 1975—Sept.. 5,250 5.1 7.3 10.6 19.6 31.0 26.5 Oct.. 44.4 40.1 15.5 7,362 Oct... 5,300 5.5 6.7 11.2 21.8 29.7 25.2 Nov. 45.3 40.2 14.5 7,425 Nov.. 5,370 5.2 6.7 12.2 23.2 28.6 24.0 Dec. 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 Mar. 44.0 46.0 10.4 8,050 Mar.. 6,410 6.0 8.7 16.0 29.0 25.0 16.0 Apr. 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 Aug. 42.1 46.5 11.4 8,320 Aug.. 7,450 6.0 7.0 13.0 28.0 32.1 18.0 Sept. 42.4 47.4 10.2 8,550 Sept. 7,530 6.3 8.0 14.1 29.6 29.9 12.1 NOTE.—Special miscellaneous accounts contain credit balances that i Note 1 appears at the bottom of p. A-28. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 End of period M ga o g r e t- Other G U o . v S t . . S l a o t n c a a d te l C r a o a n r t p d e o - Cash O as t s h e e ts r li T a a t o b i n e t i d s a li l - De i p ts o s- l O ia t t i b h e i s e l i r - G r c e o e a s u n e c n e r - r v t a s e l classi ( f i i n e d m b o y n t m hs a ) t urity govt. other1 general reserve accts. 3 or 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 4,539 197 3 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 3,261 197 4 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 2,040 197 5 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—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 * 14,090 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 Juner., 78,803 5,137 5,635 2,337 31,493 1,558 3,470 128,436 116,876 2,841 8,719 1,174 438 215 575 2,402 July'.. 79,398 5,341 5,640 2,376 32,028 1,538 3,505 129,826 117,883 3,161 8,781 1,201 423 185 624 2,433 Aug. P. 79,781 5,210 5,733 2,399 32,319 1,552 3,576 130,571 118,225 3,490 8,555 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

NOVEMBER 1976 • SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a t l s S U t n at it e e s d 1 Sta lo te c a a l n d Foreign2 Bonds Stocks M ga o g r e t s - e R st e a a t l e P lo o a li n c s y O as t s h e e t r s 197 1 222,102 10,373 3,828 3,363 3,182 100,432 79,825 20,607 75,496 6,904 17,065 11,832 197 2 239,730 10,637 3,827 3,367 3,443 113,720 86,875 26,845 76,948 7,295 18,003 13,127 197 3 252,436 10,519 3,444 3,412 3,663 118,599 92,680 25.919 81,369 7,693 20,199 14,057 197 4 263,349 10,900 3,372 3,667 3,861 119,637 97,717 21.920 86,234 8,331 22,862 15,385 197 5 289,304 13,758 4,736 4,508 4,514 135,317 107,256 28,061 89,167 9,621 24,467 16,974 1975—Aug. 280,700 12,140 3,819 4,106 4,215 131,473 104,434 27,039 88,208 ,104 23,963 15,812 Sept. 282,065 12,253 3,821 4,165 4,267 132,037 105,440 26,597 88,331 ,197 24,099 16,148 Oct.. 285,015 12,858 4,342 4,193 4,323 133,865 106,250 27,615 88,481 ,342 24,242 16,227 Nov. 287,122 13,243 4,613 4,260 4,370 134,961 107,040 27.921 88,657 ,450 24,343 16,468 Dec. 289,304 13,758 4,736 4,508 4,514 135,317 107,256 28,061 89,167 ,621 24,467 16,974 1976—Jan.. 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. 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 July. 307,005 16,672 5,150 5,263 6,259 148,617 116,101 32,516 89,753 10,050 25,257 16.656 Aug. 309,295 16,902 5,292 5,324 6,286 150,303 117,806 32,497 89,891 10,146 25,383 16,670 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 Mortgage Total loan com- End of period M ga o g r e t s - I s i n m e t v i c e e e u n s s r 1 t t - - Cash Other l a ia s T b s o e il t t i a s t — i l e s S c a a v p i i n ta g l s w N or e t t h 2 m r B o o w n or e e - d y3 Loans Other ou m a p t t s i e t t e r m a n i n o d e d d n i o 4 t n s f g 197 1 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 197 2 206,182 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 9,526 197 4 249,293 23.240 22,991 295,524 242,959 18,436 24,780 3,244 6,105 7,454 197 5 278,693 30,900 28,802 338,395 286,042 19,776 20,730 5,187 6,659 10,675 1975—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.. 303,815 36,029 32,112 371,956 316,510 20,997 18,439 6,640 9,370 16,328 Aug.. 308,049 35,873 32,442 376,364 318,675 21,266 18,935 6,697 10,791 15,796 Sept.* 312,152 35.241 32,531 379,924 324,277 21,387 19,154 6,753 8,353 15,486 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 passall, 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 • NOVEMBER 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- financdeficit debt Agency accounts Less: Equals: sury ing, (-) securi- securi- Special Total operat- Other net 2 ties ties notes i ing S i p ss e u c e ia s l Other balance Fiscal year: 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-Dec. 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-Dec. 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—Sep t 28,615 29,044 -429 5,935 9 -2,151 -367 8,463 6,961 r441 r—633 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 Aug 27,360 29,571 -2,211 8,782 353 1,711 1,310 8,733 1,658 299 -4,565 Sept 31,753 30,996 757 1,373 -19 -1,913 -12 3,279 5,705 249 1,917 Selected balances Treasury operating balance Borrowing from the public End Memo: of Less: Debt of period B F a . n R k . s acc l T a o o n a a u d x n n ts d t O a e r p t i h o e e s s r i 3 - Total se P c d u u e b r b i l t t i i c e s s A ec g u e r n it c i y e s Sp I G e n c o v i v a e t l s , t m ac e c n o t u s n o t f s S n L p o e e t c e ss i s a : 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 p v o s v s a w o t . t — r . e - e 4 d issues Fiscal year: 197 4 2,919 6,152 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—Sept.. .. 8,074 2,162 529 10,765 553,647 10,935 120,839 23,385 420,358 77,026 Oct 8,517 1 ,251 559 10,327 561,999 10,931 117,183 23,645 432,102 78,016 Nov... . 4,919 1,558 9 6,485 566,799 10,928 116,434 23,255 438,037 78,451 Dec 7,286 1,159 7 8,452 576,649 10,904 118,294 23,006 446,253 78,842 1976—Ja n 10,077 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 80,123 Aug.. . , 10,795 914 11,709 633,328 11,066 129,680 20,297 494,417 80,784 Sept 13,296 4,118 17,414 634,701 11,047 127,767 20,285 497,696 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). "Other depositaries" have been excluded 2 Includes accrued interest payable on public debt securities until June from the Treasury operating balance beginning July 1, 1976. 1973 and total accrued interest payable to the public thereafter; deposit 4 Includes debt of Federal home loan banks, Federal land banks, R.F.K. funds; miscellaneous liability (includes checks outstanding) and asset Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate accounts; seigniorage; increment on gold; fiscal 1974 conversion of in- credit banks and banks for cooperatives (both beginning Dec. 1968). terest receipts of Govt, accounts to an accrual basis; gold holdings, gold 5 Beginning July 1974, public debt securities excludes $825 million of certificates and other liabilities, and gold balance beginning Jan. 1974; notes issued to International Monetary Fund to conform with Office of and net gain/loss for U.S. currency valuation adjustment beginning June Management and Budget's presentation of the budget. 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

NOVEMBER 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 ceipts 3 held cam- held funds total ceipts funds insur. re- total paign Pay- Self- ceipts2 fund roll empl. taxes Fis 1 1 1 1 c 9 9 9 9 a 7 7 7 7 l 3 6 4 5 y ear: 2 2 2 3 3 8 6 0 2 0 0 4 , , , , 2 9 0 9 2 0 9 3 5 5 7 2 1 1 1 9 2 1 2 8 3 2 2 , , , , 0 0 4 0 9 7 0 9 3 1 8 2 2 3 3 3 7 4 5 0 , , , , 0 2 5 8 1 9 2 1 7 6 8 2 2 2 3 2 1 7 4 3 , , , , 3 0 8 9 6 6 1 5 7 3 2 6 1 1 1 1 0 1 3 2 3 8 1 2 , , , , 2 9 6 3 4 5 0 8 6 2 3 6 4 4 3 4 6 5 9 1 , , , , 0 7 7 7 4 8 4 4 5 3 7 4 2 5 3 5 , , , , 8 1 3 1 2 9 2 7 5 3 5 4 5 6 7 7 6 2 2 1 , , , , 3 8 5 7 9 7 0 8 1 8 5 9 2 3 3 3 , , , , 3 0 5 4 7 0 1 1 1 8 8 7 6 6 6 8 , , , , 0 8 7 0 5 3 7 5 1 7 0 4 4 4 3 4 , , , , 0 6 4 7 5 1 6 5 1 4 6 2 6 7 9 8 4 6 2 6 , , , , 5 4 7 7 4 4 8 1 1 2 0 4 1 1 1 1 6 6 6 6 , , , ,5 8 9 2 5 4 6 6 1 4 3 0 3 4 3 3 , , , , 1 3 0 6 8 3 7 7 8 4 6 4 4 5 4 5 , , , , 9 6 0 2 1 1 3 1 7 1 5 6 5 3 6 8 , , , , 9 3 7 0 2 1 6 2 1 1 9 6 Ha 1 1 1 lf 9 9 9 7 7 7 y 6 5 4 e — — — ar J J J J : u a a u l n n l y y . . - - - - J J D D u u e e n n c c e e . . . . . . 1 1 1 1 3 3 4 6 9 9 1 0 , , , , 6 4 1 5 0 5 9 5 7 3 0 2 6 6 6 5 3 0 1 9 , , , , 3 8 5 6 7 4 5 9 8 9 9 4 33 2 2 7 7 7 7 , , , , 6 0 1 8 4 9 9 7 9 8 8 9 3 2 2 6 1 1 , , , , 9 3 0 0 9 6 0 1 7 2 4 6 6 6 5 6 7 5 5 4 , , , , 4 7 8 9 6 6 3 2 1 7 5 6 2 2 1 1 7 7 8 8 , , , , 5 9 2 8 0 7 4 1 0 3 7 0 2 2 2 3 , , , ,1 7 6 0 0 3 3 1 9 5 9 6 3 3 4 3 7 4 0 5 , , , , 3 4 4 9 7 1 4 4 1 8 3 7 3 3 , , 1 2 2 2 6 5 6 5 3 0 8 4 2 2 3 5 , , , , 9 8 1 8 1 5 9 6 4 3 6 1 2 2 2 2 , , , , 2 1 3 4 8 7 1 3 7 9 4 8 4 4 3 5 0 6 9 1 , , , , 8 6 7 8 8 6 7 2 6 7 4 8 8 8 7 8 , , , , 7 7 7 2 6 5 9 0 1 9 0 4 2 1 1 1 , , , , 1 7 9 9 4 1 5 2 7 8 8 7 2 2 2 2 , , , , 3 2 5 6 2 7 8 4 7 3 4 3 3 3 3 4 , , , , 3 1 3 6 9 4 7 3 7 0 0 0 Mo 1 n 9 t 7 h 5 : — Sep t 28,615 9,182 4,809 382 13,609 6,277 264 5,555 251 75 400 6,280 1,430 312 431 539 Oct 19,316 9,983 589 -81 10,653 1,694 821 4,551 259 395 5,206 1,462 343 396 382 Nov 21,745 10,195 283 124 10,354 1,072 399 6,900 716 377 7,994 1,476 310 428 511 Dec 25,995 10,738 571 109 11,200 6.884 354 5,043 17 110 395 5,565 1,482 347 386 485 1976—Ja n 25,634 9,518 5,843 86 15,276 1,771 218 5,540 225 223 442 430 1,335 348 401 292 Feb 20,845 10,938 933 4,100 7,778 1,203 422 8,330 237 693 370 ,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 ,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 ,349 1,353 357 387 535 May 22,679 10,749 573 5,171 6,157 1,396 380 9 ,132 359 2,940 380 ,811 1,329 349 489 528 June 37,615 11,249 5,275 490 16,037 10,391 391 5 ,969 322 254 425 ,971 1,489 421 442 2,255 J A u u l g y 2 2 7 2 , ,6 3 6 6 0 0 1 1 0 1 , , 7 8 3 1 1 3 1,0 5 1 4 8 2 5 26 4 7 9 1 1 2 1 , ,2 0 0 8 1 8 1 1 . , 8 1 8 5 4 3 2 7 2 2 9 5 , , 9 3 3 2 7 8 1,8 7 2 2 2 3 4 4 0 6 8 4 , , 0 6 6 1 8 4 1 1 , , 4 5 7 1 6 0 3 3 8 9 9 4 4 54 5 7 4 5 55 2 2 4 Sept 31,753 10,406 5,249 142 15,513 6,812 554 6 ,268 269 152 386 077 1,486 429 453 537 Budget outlays Gen- Nat- Educa- Gen- Reveral ural Com- tion, eral enue Undis- Na- sci- Agri- re- Com- mun. training, Health Govt., shar. trib. Period Total ti d on e- al a I f n fa t i l r . s s e p n a c c e e , , t c u u r l- e so en u v rc ir e . s , , m a e n r d c e re a g n io d n , em m p en lo t y , - w an el d - e V ra e n t- s I e n s te t4 r - l e a n w - f a is n c d a l se o tt f i f n - g fense and and transp. devel- and fare force., assist- retech. energy opment social and ance ceipts4, 5 serv. justice Fiscal year: 197 4 268,392 78,569 3,593 3,977 2,230 6,571 13,096 4,911 11,598 106,505 13,386 5,789 6,746 -16,651 197 5 324,601 86,585 4,358 3,989 1,660 9,537 16,010 4,431 15,248 136,252 16,597 6,031 7,005 -14,075 197 6 365,610 90,216 4,462 4,197 1,994 11,674 17,239 5,023 17,678 160,497 18,444 ' 6,277 7,114 -14,704 T 1 Q 9 77 7R 6 4 9 0 4 0 , , 4 0 7 0 3 0 1 2 0 2 1 , , 3 6 8 0 9 0 7 1 , , 1 4 0 50 0 4 1 , , 5 12 0 9 0 1,8 7 0 60 0 1 3 5 , , 5 1 9 0 2 0 1 4 6 , , 6 4 8 0 5 0 6 1 , ,5 0 0 0 5 0 1 4 8 , , 6 4 8 0 3 0 1 4 7 1 2 , , 8 7 3 0 0 0 1 3 7 , , 9 8 7 0 5 0 6 1 , , 9 7 0 1 0 4 2 7, , 4 0 0 2 0 4 -1 -2 6 , , 5 8 6 0 7 0 Month: 1975— O Se c p t t .. .r . . . 2 3 9 2 , , 0 4 4 2 4 5 6 8 , , 9 1 2 9 3 2 3 -8 6 2 3 3 7 9 6 8 4 3 8 1 1 2 9 7 3 4 1 0 1 1 , , 9 9 6 0 5 7 4 4 4 6 2 2 1,5 8 1 9 3 6 1 13 2 , , 5 8 7 1 5 7 1 1, , 5 3 1 2 8 4 5 4 0 9 9 2 1,59 3 2 7 -1,0 6 3 4 5 5 Nov... 29,401 7,533 419 405 196 786 1,203 315 1,653 12,612 1,624 531 15 -887 Dec... 31,792 7,981 290 409 175 814 1,994 433 1,515 13,721 1,704 > 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, 567 16 -1,814 Apr.. . 32,476 7,994 249 360 -51 984 1,610 464 1,606 13,679 1,652 3, 420 1,605 -1,452 May.. 28,410 7,136 292 348 270 924 466 448 1,258 13,229 1,555 3, 617 96 -1,449 June.. 30,567 8,134 1,077 371 -181 929 1,238 528 1,738 13,501 1,248 668 32 -1,368 July... 33,906 7,462 902 403 99 1,313 2,056 450 1,348 14,066 1,367 502 11,,777766 -1,136 Aug... 29,571 7,268 395 417 130 1,106 651 531 1,473 13,885 1,385 2,831 601 111111 -1,213 Sept... 30,996 7,659 152 309 531 1,173 1,977 525 1,862 13,799 1,223 612 137 -217 1 Old-age, disability, and hospital insurance, and Railroad Retirement 16, 1976. Figures for outlay categories exclude special allowances for accounts. civilian agency pay raises totaling $800 million for fiscal year 1977, and 2 Supplementary medical insurance premiums and Federal employee therefore do not add to totals. retirement contributions. 7 Effective in calendar year 1976, the fiscal year for the U.S. Govt, is 3 Deposits of earnings by F. R. Banks and other miscellaneous receipts. being changed from July 1-June 30 to Oct. 1-Sept. 30. The period July 1- 4 Effective September 1976. The "Interest" and "Undistributed offsetting Sept. 30 of 1976, data for which are shown separately from fiscal year receipts" columns reflect the accounting conversion for interest on special 1976 and fiscal year 1977 totals, will be a transition quarter. issues for Govt, accounts from an accrual basis to a cash basis. 5 Consists of interest received by trust funds, rents and royalties on the NOTE.—Half years may not add to fiscal year totals due to revisions in Outer Continental Shelf, and Govt, contributions for employee retirement. series that are not yet available on a monthly basis. 6 Estimates presented in Mid-session Review of the 1977 Budget, July Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 U.S. GOVERNMENT SECURITIES • NOVEMBER 1976 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p T g u r o b o t l s a i s c l Marketable Con- Nonmarketable debt i Total Total Bills C c e a r t t e if s i - Notes Bonds 2 b v i o e b n r l d e t- s Total 3 Foreign S b a o a v n n in d d g s s notes 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 1973—Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 1974—Dec. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 1975—Oct., 562.0 443.6 350.9 147.1 166.3 37.6 2.3 90.5 21.2 67.2 Nov. 566.8 447.5 355.9 151.1 166.1 38.7 2.3 89.3 21.3 67.6 Dec. 576.6 457.1 363.2 157.5 167.1 38.6 2.3 91.7 21.6 67.9 1976—Jan.. 584.4 463.8 369.3 159.6 171 .1 38.6 2.3 92.2 21 .6 68.2 Feb. 593.9 473.7 378.8 162.1 177.6 39.1 2.3 92.7 21.7 68.6 Mar. 600.5 480.7 385.3 163.1 183.1 39.0 2.3 93.1 21.7 69.0 Apr. 602.0 482.4 386.4 161.8 185.8 38.9 2.3 93.6 21.6 69.4 May 610.7 484.4 388.0 161 .8 186.5 39.7 2.3 94.1 21.5 69.8 June 620.4 489.5 392.6 161 .2 191 .8 39.6 2.3 94.6 21.5 70.1 July. 624.5 495.5 397.7 161 .4 197.2 39.1 2.3 95.5 21.4 70.8 Aug. 633.3 502.5 404.3 161.4 203.0 39.9 2.3 95.9 21 .0 71.5 Sept. 634.7 505.7 407.7 161 .5 206.3 39.8 2.3 95.8 20.8 71.2 Oct.. 637.6 508.7 408.6 161.5 207.3 39.8 2.3 97.8 22.3 71.5 1 Includes non-interest-bearing debt (of which $613 million on October 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 31, 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 a e 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 a s s l p I c a n a o n s n m u c ie e r - s - r c O a o t t r i h p o e n o r - s g S l a o o t n v c a a t d t s e l . Savi I n n g d s i v idu O a t l h s er n F a i o t n a i r t o n e e n d i r g a - n l 1 t O i m o n r t v i h s s e c e s 2 . r funds bonds securities 1968—Dec 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Dec 492.7 141.2 80.5 271.0 55.6 2.5 6.1 11.0 29.2 63.4 21.5 58.4 23.2 1975—Aug 547.2 144.8 82.5 320.4 74.8 3.9 7.5 16.0 31.2 66.2 22.6 67.3 29.1 Sept 553.6 142.3 87.0 324.4 78.3 4.0 7.7 15.0 32.2 66.5 23.0 65.5 31.1 Oct 562.0 138.8 87.2 336.0 79.3 4.2 7.9 17.5 33.8 66.8 23.8 66.9 32.2 Nov 566.8 137.7 85.1 343.9 82.2 4.4 8.8 20.0 33.9 67.1 23.9 66.1 35.5 Dec 576.6 139.3 87.9 349.4 85.1 4.5 9.3 20.2 33.8 67.3 24.0 66.5 38.6 1976—Jan 584.4 139.3 89.8 355.3 86.0 4.7 10.0 21.2 34.6 67.7 24.0 68.3 38.9 Feb 593.9 139.7 89.0 365.1 87.2 4.9 10.1 23.2 36.4 68.0 25.8 69.6 39.9 Mar 600.5 139.1 89.8 371.7 91.9 5.1 10.4 23.0 37.8 68.4 26.0 68.1 40.8 Apr 602.0 139.1 91.8 371.0 91.7 5.1 10.3 23.8 37.7 68.8 25.8 70.2 37.4 May 610.7 143.7 90.5 376.4 91.6 5.3 10.4 26.0 37.6 69.2 26.6 71.0 38.7 June 620.4 149.6 94.4 376.4 91.8 5.1 10.5 25.0 39.5 69.6 26.8 69.8 38.2 July 624.5 147.6 90.7 386.2 94.0 5.3 11.1 27.0 37.2 70.3 26.8 72.8 41.9 Aug.** 633.3 148.0 94.0 391.3 92.5 5.4 11.6 27.8 38.7 70.9 28.8 74.6 40.9 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

NOVEMBER 1976 • U.S. GOVERNMENT SECURITIES A35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years 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. 31 363,191 199,692 157,483 42,209 112,270 26,436 14,264 10,530 1976—Aug. 31 404,314 204,787 161,433 43,354 128,994 44,010 13,260 13,263 Sept. 30 407,663 206,062 161,505 44,557 131,102 44,029 13,221 13,249 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—Aug. 31 16,657 2,291 512 1,779 5,784 2,556 3,676 2,350 Sept. 30 16,640 2,298 544 1,754 5,726 2,540 3,676 2,401 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—Aug. 31 94,030 49,192 40,161 9,031 29,814 9,932 1,598 3,495 Sept. 30 96,427 50,462 41,364 9,098 30,531 10,242 1,606 3,587 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—Aug. 31 293,627 153,304 121,306 31,998 93,396 31,522 7,986 7,418 Sept. 30 294,596 153,302 119,597 33,705 94,845 31,247 7,939 7,261 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—Aug. 31 70,015 26,926 14,791 12,135 36,165 6,002 487 435 Sept. 30 70,201 26,524 14,413 12,111 36,740 6,151 451 334 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—Aug. 31 4,032 1,059 391 668 2,102 602 188 80 Sept. 30 3,975 1,026 368 658 2,097 600 184 68 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—Aug. 31 9,749 2,003 1,349 654 3,748 2,300 1,134 564 Sept. 30 9,654 1,899 1,263 636 3,744 2,333 1,117 561 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—Aug. 31 15,182 11,244 9,766 1,478 3,595 241 63 39 Sept. 30 14,102 10,115 8,731 1,384 3,578 316 60 32 Savings and loan assbciations: 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—Aug. 31 4,393 1,963 1,348 615 2,169 171 72 19 Sept. 30 4,439 1,895 1,280 615 2,283 174 69 18 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—Aug. 31 11,298 6,472 5,239 1,233 2,252 1,103 766 706 Sept. 30 11,467 6,604 5,452 1,152 2,252 1,162 760 689 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—Aug. 31 178,957 103,637 87,876 15,761 43,366 21,103 5,277 5,576 Sept. 30 180,759 105,239 88,090 17,149 44,151 20,511 5,299 5,559 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 727 insurance companies combined, each about 80 per cent; Ownership. (2) 451 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) 500 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) 5,509 commercial banks, 471 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 U.S. GOVERNMENT SECURITIES • NOVEMBER 1976 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer Period Total Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com- All 1 year years years 10 years securities securities mercial otheri dealers brokers banks 1975—Sep t 5,566 4,032 1,315 128 91 931 1,405 1,198 2,033 Oct 8,714 5,929 2,332 309 144 1,271 2,675 1,839 2,929 Nov 7,594 5,519 1,353 534 189 1,070 2,176 1,875 2,474 Dec 7,586 5,919 1,270 278 120 1,190 2,217 1,977 2,202 1976—Ja n 9,509 7,049 1,765 569 126 1,265 3,118 2,192 2,935 Feb 8,329 5,863 1,553 755 158 951 2,389 2,196 2,793 Mar 9,044 6,763 1,807 358 116 1,308 2,777 2,276 2,683 Apr. 10,293 7,667 2,186 306 134 1,341 3,154 2,426 3,372 May 8,557 6,002 1,593 700 263 952 2,907 2,128 2,571 June 8,582 6,415 1,616 426 126 1,312 2,543 1,983 2,743 July 9,663 6,846 1,771 946 99 1,356 3,230 2,078 2,999 Aug 10,579 6,170 2,548 1,498 363 1,401 3,284 2,355 3,539 Sept 9,541 5,828 2,488 956 270 1,273 2,889 2,239 3,139 Week ending— 1976—Sept. 1 8 , , 1 7 0 , , 7 4 7 1 6 7 4 6 , , 4 0 9 8 5 1 2 2, , 2 9 9 7 5 9 9 7 8 7 0 4 2 3 1 77 1 1 1 , ,4 0 7 6 9 6 2 3 , , 2 26 4 7 8 2 1 , , 3 8 9 9 3 2 2 3 , , 5 27 7 8 0 15, 7,259 4,204 2,098 743 215 852 2,048 1,817 2,541 2 22 9 , , 1 1 1 0 , , 8 1 3 1 9 8 7 6, , 4 5 1 1 7 9 r2 2 , , 3 8 9 5 3 2 1 1 , , 1 0 0 2 3 4 2 36 8 5 3 1 1, , 3 4 8 9 7 8 3 3, , 2 9 3 2 7 2 '2 2 , , 2 6 2 7 9 4 3 3, , 2 7 6 4 5 5 Oct. 6, 12,689 7,484 2,704 2,231 270 2,004 3,926 3,015 3,744 13. 16,153 8,796 3,848 3,136 373 1,876 6,215 3,708 4,354 20. 14,978 8,923 3,065 2,619 372 1,603 5,595 3,268 4,513 27. 10,636 6,279 2,815 1,317 226 1,227 3,813 2,205 3,391 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks UU..SS.. PPeerriioodd m t a A i t e l u l s r i- W y i e t a h r in y 1 ea -5 r s y 5 ea -1 r 0 s y O e 1 v a 0 e r r s aa ss GG ee gg tt cc ee oo ii uu ee nn vv ss rr cc tt ii ,, yy -- 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 rp n o s r 1 a- 1975—Sept 5,718 5,214 410 56 39 529 1975—Sep t 6,576 1,160 1,640 972 Oct 7,322 6,019 1,091 111 102 ••498 Oct 6,940 1,658 1,792 817 Nov 6,752 5,011 640 594 506 953 Nov 7,215 1,958 1,393 991 Dec 6,061 5,274 322 218 247 982 Dec 7,107 2,001 1,304 1,086 1976—Jan 6,305 5,287 449 398 170 694 1976—Ja n 6,766 1,757 1,337 1,147 Feb 6,263 5,477 381 224 183 602 Feb 6,700 1,705 850 1,017 Mar 6,884 6,360 286 122 116 537 Mar 7,175 1,865 1,138 1,225 Apr 6,733 6,328 190 131 84 508 Apr 7,587 1,966 1,734 1,126 May 5,272 4,852 232 126 62 183 May 6,089 1,346 1,026 975 June 5,895 5,489 251 144 11 335 June 7,326 1,819 1,494 1,258 July 7,118 6,370 254 466 29 568 July 7,772 1,496 1,522 1,569 Aug 8,511 6,948 493 624 446 806 Aug 9,264 1,671 1,600 1,879 Sept 9,496 8,152 530 510 304 867 Sept 10,827 2,073 1,949 1,715 Week ending— Week ending— 1976—Aug. 4 7,800 6,951 568 284 -2 519 1976—Aug. 4... 8,781 1,225 1,555 1,974 11 8,783 6,885 607 853 437 753 11... 8,951 1,751 1,950 1,897 18 8,199 6,370 399 781 649 771 18... 8,919 1,661 1,637 1,810 25 8,211 6,696 488 514 514 894 25... 9,150 1,618 1,344 1,793 Sept. 1 9,517 8,043 509 515 449 1,052 Sept. 1... 10,541 1,950 1,497 1,984 8 9,963 8,351 637 571 403 910 8... 10,996 2,182 2,202 1,963 15 9,244 7,825 597 478 344 774 15... 10,905 2,502 2,474 2,027 22, 10,097 8,810 593 457 237 957 22... 10,715 2,005 1,814 1,435 29 8,751 7,813 248 443 246 767 29... 10,886 1,733 1,449 1,461 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

NOVEMBER 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 Ad- Cash Mem- Deben- Loans Loans vances Invest- and Bonds ber Capital Mort- tures to and Mortto ments de- and de- Stock gage ,and cooper- Bonds dis- Bonds gage mem- posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) 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 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 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 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 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 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 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 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 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 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 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 15,757 6,063 110 17,714 3,182 2,827 31,564 30,021 4,656 3,918 10,272 9,812 17,264 15,336 6,394 113 17,713 2,990 2,829 31,468 30,148 4,590 3,921 10,762 9,877 17,514 1 1 5 5 , , 2 2 1 7 5 4 5 3 , , 5 7 8 3 5 9 1 9 1 7 8 1 1 7 7 , ,1 1 3 1 6 4 2 2 , , 8 9 9 4 1 9 2 2 , , 8 8 3 3 6 9 3 3 2 2 , , 1 0 1 9 3 0 2 2 9 9 , , 8 8 0 6 5 3 4 4 , , 4 41 7 3 0 3 3 , , 7 7 6 3 1 3 1 1 0 1 , ,1 8 8 23 8 1 9 0 , , 9 0 9 3 8 4 1 1 7 7 , , 7 9 3 7 1 9 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 15,751 5,292 95 17,112 3,073 2,854 32,131 30,429 4,360 3,908 11,555 10,643 18,390 16,062 5,130 146 17,077 3,177 2,864 32,112 30,685 4,467 3,970 11,580 10,729 18,570 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 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 . v S n t . s , State di s a s t t n a r d t i . c t Other2 Total c E at d i u o - n b R r a o id n a g d d e s s i U ti t e i s l- 4 H in o g u ^ s - V a e a n t i e d s r ' gations auth. 24,963 15,220 8,681 1,000 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 23,653 13,305 9,332 959 4,991 9,496 9,165 22,079 4,981 1,689 4,714 1,910 23,969 12,257 10,632 1,022 4,212 9,505 10,249 22,397 4,311 1,458 5,654 2,639 24,315 13,563 10,212 461 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 30,607 16,020 14,511 7,438 12,441 10,660 29,495 4,689 1,277 7,209 647 2,171 907 1,252 357 1,185 614 2,123 279 134 447 48 2 2 , , 3 3 8 3 5 7 1 1 , ,0 1 4 2 0 0 1 1 , ,3 2 4 0 1 3 4 4 7 8 0 2 1,2 9 4 7 4 9 6 85 6 5 7 2 2 , . 2 3 4 1 1 8 2 2 1 1 9 2 6 88 0 4 6 8 1 7 8 2 4 8 4 2,062 995 1,057 434 1,043 576 1,990 287 29 495 20 358 1,136 1,211 639 1,073 638 2,274 432 95 601 722 1,332 1,375 446 1,449 810 2,622 360 135 574 130 346 2,173 1,166 1,254 824 1,262 3,180 439 215 710 692 440 1,211 1,218 457 1,227 746 2.319 356 26 679 367 490 1,866 1,611 824 1,400 1,256 3,303 710 384 956 70 028 1,689 1,324 590 1,097 1,331 2,807 414 75 745 113 2; 691 1,186 1,496 308 1,261 1,118 2,470 309 21 1,000 160 2,765 1,269 1,488 669 1,162 930 2,504 373 95 784 102 2,694 1,224 1,465 470 1,164 1,056 2,504 347 90 731 487 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 • NOVEMBER 1976 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate PPPPeeeerrrriiiioooodddd Bonds Stock TTToootttaaalll GG UU oo .. vv SS tt .. .. 22 aa GG gg UU ee oo nn .. vv SS cc tt .. yy .. 33 aa (( nn UU SS dd tt .. aa SS lloo tt .. ee cc )) 44 aa ll OOtthheerr 55 TToottaall Total P o u ff b e l r ic e l d y P p ri l v a a ce te d l y Preferred Common 197 2 84,792 17,080 12,825 23,070 1,589 44444444444444440000000000000000,,,,,,,,,,,,,,,,222222222222222222222222222222228888888888888888 22222222222222226666666666666666,,,,,,,,,,,,,,,,111111111111111133333333333333332222222222222222 11111111111111117777777777777777,,,,,,,,,,,,,,,,444444444444444422222222222222225555555555555555 8888888888888888,,,,,,,,,,,,,,,,777777777777777700000000000000006666666666666666 3333333333333333,,,,,,,,,,,,,,,,333333333333333377777777777777770000000000000000 11111111111111110000000000000000,,,,,,,,,,,,,,,,777777777777777722222222222222225555555555555555 197 3 99,050 19,057 23,883 22,700 1,385 33333333333333332222222222222222,,,,,,,,,,,,,,,,000000000000000022222222222222225555555555555555 22222222222222221111111111111111,,,,,,,,,,,,,,,,000000000000000044444444444444449999999999999999 11111111111111113333333333333333,,,,,,,,,,,,,,,,222222222222222244444444444444444444444444444444 7777777777777777,,,,,,,,,,,,,,,,888888888888888800000000000000002222222222222222 3333333333333333,,,,,,,,,,,,,,,,333333333333333333333333333333337777777777777777 7777777777777777,,,,,,,,,,,,,,,,666666666666666644444444444444442222222222222222 197 4 33333333333333338888888888888888,,,,,,,,,,,,,,,,333333333333333311111111111111111111111111111111 33333333333333332222222222222222,,,,,,,,,,,,,,,,000000000000000066666666666666666666666666666666 22222222222222225555555555555555,,,,,,,,,,,,,,,,999999999999999900000000000000003333333333333333 6666666666666666,,,,,,,,,,,,,,,,111111111111111166666666666666660000000000000000 2222222222222222,,,,,,,,,,,,,,,,222222222222222255555555555555553333333333333333 3333333333333333,,,,,,,,,,,,,,,,999999999999999999999999999999994444444444444444 1975 55555555555555553333333333333333,,,,,,,,,,,,,,,,666666666666666644444444444444444444444444444444 44444444444444442222222222222222,,,,,,,,,,,,,,,,777777777777777788888888888888881111111111111111 33333333333333332222222222222222,,,,,,,,,,,,,,,,666666666666666600000000000000003333333333333333 11111111111111110000000000000000,,,,,,,,,,,,,,,,111111111111111177777777777777777777777777777777 3333333333333333,,,,,,,,,,,,,,,,444444444444444455555555555555558888888888888888 7777777777777777,,,,,,,,,,,,,,,,444444444444444400000000000000005555555555555555 1975—June 5555555555555555,,,,,,,,,,,,,,,,555555555555555599999999999999996666666666666666 4444444444444444,,,,,,,,,,,,,,,,555555555555555599999999999999994444444444444444 3333333333333333,,,,,,,,,,,,,,,,999999999999999944444444444444443333333333333333 666666666666666655555555555555551111111111111111 222222222222222233333333333333330000000000000000 777777777777777777777777777777772222222222222222 July 4444444444444444,,,,,,,,,,,,,,,,333333333333333322222222222222227777777777777777 3333333333333333,,,,,,,,,,,,,,,,666666666666666677777777777777773333333333333333 2222222222222222,,,,,,,,,,,,,,,,666666666666666655555555555555558888888888888888 1111111111111111,,,,,,,,,,,,,,,,000000000000000011111111111111114444444444444444 111111111111111199999999999999998888888888888888 444444444444444455555555555555556666666666666666 Aug 2222222222222222,,,,,,,,,,,,,,,,444444444444444400000000000000005555555555555555 1111111111111111,,,,,,,,,,,,,,,,888888888888888844444444444444442222222222222222 1111111111111111,,,,,,,,,,,,,,,,333333333333333355555555555555556666666666666666 444444444444444488888888888888886666666666666666 111111111111111122222222222222229999999999999999 444444444444444433333333333333334444444444444444 Sept 2222222222222222,,,,,,,,,,,,,,,,888888888888888833333333333333336666666666666666 1111111111111111,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999 1111111111111111,,,,,,,,,,,,,,,,444444444444444411111111111111114444444444444444 555555555555555588888888888888885555555555555555 333333333333333300000000000000008888888888888888 555555555555555522222222222222229999999999999999 Oct 4444444444444444,,,,,,,,,,,,,,,,777777777777777700000000000000005555555555555555 3333333333333333,,,,,,,,,,,,,,,,111111111111111155555555555555558888888888888888 2222222222222222,,,,,,,,,,,,,,,,333333333333333388888888888888889999999999999999 777777777777777766666666666666669999999999999999 333333333333333333333333333333332222222222222222 1111111111111111,,,,,,,,,,,,,,,,222222222222222211111111111111115555555555555555 Nov 4444444444444444,,,,,,,,,,,,,,,,000000000000000066666666666666668888888888888888 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2222222222222222,,,,,,,,,,,,,,,,111111111111111188888888888888889999999999999999 666666666666666611111111111111113333333333333333 111111111111111144444444444444448888888888888888 444444444444444433333333333333331111111111111111 Feb.r 3333333333333333,,,,,,,,,,,,,,,,888888888888888844444444444444442222222222222222 2222222222222222,,,,,,,,,,,,,,,,999999999999999911111111111111115555555555555555 2222222222222222,,,,,,,,,,,,,,,,111111111111111144444444444444442222222222222222 777777777777777777777777777777773333333333333333 111111111111111177777777777777773333333333333333 777777777777777755555555555555554444444444444444 Mar.r 6666666666666666,,,,,,,,,,,,,,,,666666666666666633333333333333332222222222222222 4444444444444444,,,,,,,,,,,,,,,,555555555555555588888888888888885555555555555555 3333333333333333,,,,,,,,,,,,,,,,222222222222222233333333333333338888888888888888 1111111111111111,,,,,,,,,,,,,,,,333333333333333344444444444444447777777777777777 444444444444444444444444444444443333333333333333 1111111111111111,,,,,,,,,,,,,,,,666666666666666600000000000000004444444444444444 Apr.r 3333333333333333,,,,,,,,,,,,,,,,555555555555555522222222222222223333333333333333 2222222222222222................999999999999999999999999999999995555555555555555 2222222222222222,,,,,,,,,,,,,,,,333333333333333355555555555555550000000000000000 666666666666666644444444444444445555555555555555 66666666666666661111111111111111 444444444444444466666666666666667777777777777777 May r 4444444444444444,,,,,,,,,,,,,,,,111111111111111188888888888888888888888888888888 2222222222222222................999999999999999999999999999999996666666666666666 1111111111111111,,,,,,,,,,,,,,,,999999999999999933333333333333337777777777777777 1111111111111111,,,,,,,,,,,,,,,,000000000000000055555555555555559999999999999999 222222222222222299999999999999991111111111111111 999999999999999900000000000000001111111111111111 June 6666666666666666,,,,,,,,,,,,,,,,222222222222222266666666666666669999999999999999 4444444444444444,,,,,,,,,,,,,,,,888888888888888877777777777777775555555555555555 3333333333333333,,,,,,,,,,,,,,,,111111111111111133333333333333335555555555555555 1111111111111111,,,,,,,,,,,,,,,,777777777777777744444444444444440000000000000000 333333333333333355555555555555559999999999999999 1111111111111111,,,,,,,,,,,,,,,,000000000000000033333333333333335555555555555555 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd ea f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds 197 2 4,560 1,833 2,526 2,786 1,258 148 6,349 4,966 3.709 ,126 7,728 197 3 4,199 638 1,318 1,532 1,084 26 5,578 4,691 3,523 ,348 5,344 197 4 9,867 544 1,845 940 1,550 22 8,873 3,964 3.710 217 6,218 197 5 17,006 1,670 2,757 1,470 3,439 1 9,658 6,235 3,464 ,002 6,459 1975—June 2,195 123 384 194 211 838 640 362 603 July. 1,056 64 229 227 338 715 324 254 16 1,081 Aug. 580 101 147 70 17 719 305 93 19 286 Sept. 512 107 57 37 154 723 541 249 48 304 Oct.. 810 142 335 152 626 571 676 373 555 443 Nov. 874 229 81 53 1,000 851 424 45 10 444 Dec. 1,295 130 473 193 339 539 363 205 27 679 1976—Jan.' 1,025 48 330 87 299 662 435 16 472 Feb. 748 435 319 132 650 487 302 151 20 559 Mar. 1,840 405 221 84 323 747 1,411 577 1 876 Apr. 524 60 638 115 329 329 315 450 721 May 1,225 484 185 136 118 643 505 20 806 June 1,269 125 411 58 263 867 478 696 771 1,369 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ- 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See NOTE to table at bottom of preceding page. NOTE.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • SECURITY ISSUES A39 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers 1 PPPeeerrriiioooddd 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 13,018 197 3 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 1 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 II 14,229 3,668 10,561 10,244 3,159 7,084 3,985 509 3,477 Type of issues Manu- Commercial Transpor- Public Communi- Real estate facturing and other 2 tation 3 utility cation and financial 1 Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 13,219 1,607 1,605 1,137 2,165 65 7,236 6,015 2,980 1,084 4,682 468 4,574 500 483 490 429 7 1,977 1,866 810 359 852 43 1,442 412 221 108 147 53 1,395 1,043 472 97 866 247 2,069 433 528 462 1,588 4 1,211 1,537 429 604 1,222 160 2,966 838 203 149 985 5 1,820 2,174 498 47 1,530 203 1,529 1,120 726 318 488 25 1,260 1,300 953 735 2,128 -21 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) Month Sales 1 Redemp- Net Total 2 Cash Other Redemp- Net Total 2 Cash tions sales position 3 tions position 3 2,460 1,504 952 25,214 1,341 23,873 1975—Sept.. 760 874 -114 40,234 3,664 3,404 1,875 1,528 29,116 1,329 27,787 Oct... 914 995 -81 41,860 3,601 4,359 1,962 2,395 35,220 1,803 33,417 Nov.. 786 911 -125 42,460 3,733 Dec.. 1,040 1,093 -53 42,179 3,748 4,671 2,005 2,665 34,829 2,971 31,858 4,670 2,745 1,927 44,701 2,566 42,135 1976—Jan... 411 538 -47 46,529 3,287 6,820 3,841 2,979 52,677 3,187 49,490 Feb.. 262 577 -315 46,540 3,084 Mar.. 326 677 -351 46,866 2,881 6,717 3,66i 3,056 48,291 3,846 44,445 Apr.. 305 620 -315 45,956 2,683 4,624 2,987 1,637 47,618 3,649 43,969 May. 241 589 -348 45,122 2,769 5,145 4,751 394 55,045 3,038 52,007 June. 321 599 -278 46,801 2,679 July.. 281 596 -315 45,986 2,547 4,892 6,563 -1,671 59,831 3,035 56,796 Aug.. 256 536 -280 45,457 2,561 4,358 5,651 -1,261 46,518 4,002 42,516 Sept.. 338 573 -235 46,138 2,507 5,346 3,937 1,409 35,777 5,637 30,140 10,057 9,571 486 42,179 3,748 38,431 1 Includes contractual and regular single-purchase sales, voluntary and NOTE.—Investment Company Institute data based on reports of memcontractual 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 • NOVEMBER 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 I II III IV QI 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.1. 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 4,876 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.i 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 1 Profits after taxes unadjusted are as reported by the individual com- of returns, allowances, and discounts, and exclude excise taxes paid dipanies. These data are not adjusted to eliminate differences in accounting rectly by the company. Total revenue data include, in addition to sales, treatments of special charges, credits, and other nonoperating items. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes (not NOTE—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 BULLETIN, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • BUSINESS FINANCE A41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Profits In- Profits Cash Undis- Profits In- Profits Cash Undisbefore come after divi- tributed Quarter before come after divi- tributed taxes taxes taxes dends profits taxes taxes taxes dends profits 85.6 39.3 46.2 21.9 24.2 1974-1 126.3 50.5 75.8 29.9 45.9 83.5 39.7 43.8 22.6 21.2 II 126.4 53.0 73.3 30.7 42.6 71.5 34.5 37.0 22.9 14.1 Ill 138.6 57.6 81.0 31.3 49.7 IV 119.2 48.6 70.6 31.1 39.5 82.0 37.7 44.3 23.0 21.3 96.2 41.4 54.6 24.6 30.0 1975-1 94.2 40.2 54.0 31.7 22.3 115.8 48.7 67.1 27.8 39.3 105.8 44.8 61.0 31.9 29.1 127.6 52.4 75.2 30.8 44.4 Ill 126.9 54.8 72.1 32.6 39.5 114.5 49.2 65.3 32.1 33.2 131.3 57.2 74.2 32.2 '42.0 141.1 61.4 79.7 33.1 46.6 146.2 63.5 82.7 34.4 48.3 NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities NNNeeettt Notes and accts. Notes and accts. EEEnnnddd ooofff pppeeerrriiioooddd wwwooorrrkkkiiinnnggg UU..SS.. receivable payable AAccccrruueedd cccaaapppiiitttaaalll TToottaall CCaasshh ss GG eecc oo uu vv rr tt ii ,, -- II tt nn oo vv rr ee iiee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U o . v S t . , i Other G U o . v S t . . 1 Other ttaaxxeess 1970 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971 203.6 529.6 53.3 11.0 3.5 217.6 200.4 43.8 326.0 4.9 215.6 13.1 92.4 1972 221.3 574.4 57.5 10.2 3.4 240.0 215.2 48.1 352.2 4.0 230.4 15.1 102.6 1973 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—11 253.9 685.4 58.8 10.7 3.4 289.8 269.2' 53.5 431.5 4.7 278.5 19.0 129.1 Ill 259.5 708.6 60.3 11.0 3.5 295.5 282.1 56.1 449.1 5.1 287.0 22.7 134.3 IV 261.5 712.2 62.7 11.7 3.5 289.7 288.0 56.6 450.6 5.2 287.5 23.2 134.8 1975—1 260.4 698.4 60.6 12.1 3.2 281.9 285.2 55.4 438.0 5.3 271.2 21.8 139.8 II 269.0 703.2 63.7 12.7 3.3 284.8 281.4 57.3 434.2 5.8 270.1 17.7 140.6 Ill 271.8 716.5 65.6 14.3 3.3 294.7 279.6 59.0 444.7 6.2 273.4 19.4 145.6 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 II 299.5 775.4 70.8 23.3 3.7 318.1 295.6 63.9 475.9 6.8 287.0 22.0 160.1 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 PPeerriioodd TToottaall Durable d N ur o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s th er nn CC ii oo cc mm aatt mm iioonn uu ss -- OOtthheerr ii T A T A ((SS oo .. .. RR tt AA aa ..)) ll .. 1972 8888888888.....4444444444 1111155555.....6666644444 1111155555.....7777722222 22222.....4444455555 11111.....8888800000 22222.....4444466666 11111.....4444466666 1111144444.....4444488888 22222.....5555522222 1111111111.....8888899999 2222200000.....0000077777 1973 9999999999.....7777744444 1111199999.....2222255555 1111188888.....7777766666 22222.....7777744444 11111.....9999966666 22222.....4444411111 11111.....6666666666 1111155555.....9999944444 22222.....7777766666 1111122222.....8888855555 2222211111.....4444400000 1974 111111111122222.....4444400000 2222222222.....6666622222 2222233333.....3333399999 33333.....1111188888 22222.....5555544444 22222.....0000000000 22222.....1111122222 1111177777.....6666633333 22222.....9999922222 1111133333.....9999966666 2222222222.....0000055555 1975 111111111122222.....7777788888 2222211111.....8888844444 2222266666.....1111111111 33333.....7777799999 22222.....5555555555 11111.....8888844444 33333.....1111188888 1111177777.....0000000000 33333.....1111144444 1111122222.....7777744444 2222200000.....6666600000 1974—11 2222288888.....1111166666 55555.....5555599999 55555.....6666699999 .....7777788888 .....6666644444 .....6666611111 .....4444499999 44444.....5555566666 .....7777755555 33333.....6666600000 55555.....4444466666 111.40 II I 2222288888.....2222233333 55555.....6666655555 55555.....9999966666 .....8888800000 .....6666644444 .....4444433333 .....5555588888 44444.....4444422222 .....7777788888 33333.....3333399999 55555.....5555577777 113.99 I V 3333311111.....9999922222 66666.....6666644444 66666.....9999999999 .....9999911111 .....7777788888 .....4444488888 .....7777711111 44444.....8888800000 .....8888877777 33333.....7777788888 55555.....9999977777 116.22 1975— 1 2222255555.....8888822222 55555.....1111100000 55555.....7777744444 .....9999911111 .....5555599999 .....4444444444 .....6666622222 33333.....8888844444 .....5555588888 33333.....1111111111 44444.....8888888888 114.57 I I 2222288888.....4444433333 55555.....5555599999 66666.....5555555555 .....9999977777 .....7777711111 .....4444477777 .....7777777777 44444.....1111155555 .....7777799999 33333.....2222222222 55555.....1111199999 112.46 II I 2222277777.....7777799999 55555.....1111166666 66666.....5555511111 .....9999944444 .....6666622222 .....5555500000 .....8888855555 44444.....1111166666 .....9999911111 33333.....1111144444 55555.....0000000000 112.16 I V 3333300000.....7777744444 55555.....9999999999 77777.....3333300000 .....9999977777 .....6666622222 .....4444433333 .....9999933333 44444.....8888855555 .....8888855555 33333.....2222266666 55555.....5555522222 111.80 1976— 1 2222255555.....8888877777 44444.....7777788888 66666.....1111188888 .....9999922222 .....4444499999 .....2222266666 .....7777722222 44444.....1111188888 .....6666622222 22222.....9999922222 44444.....8888822222 114.72 II 2222299999.....7777700000 55555.....6666611111 77777.....0000055555 .....9999999999 .....6666688888 .....4444422222 11111.....0000022222 44444.....7777744444 .....7777766666 33333.....2222211111 55555.....2222211111 118.12 Ill2 3333300000.....5555544444 55555.....9999900000 77777.....3333355555 .....9999955555 .....5555544444 .....3333344444 .....9999966666 44444.....9999900000 .....9999988888 88888.....'''''66666 22222 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 • NOVEMBER 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' ALL HOLDERS 603,417 682,321 742,522 768,889 785,795 802,103 817,112 839,537 1 - to 4-family 372,793 416,883 449,937 467,365 479,992 491,690 502,711 519,553 Multifamily 82,572 92,877 99,851 100,475 100,517 100,427 100,699 100,954 Commercial 112,294 131,308 146,428 151,587 154,779 158,736 160,954 164,428 Farm 35,758 41,253 46,306 49,462 50,507 51,250 52,748 54,602 MAJOR FINANCIAL INSTITUTIONS... 450,000 505,400 542.552 558,179 570,049 581,486 592,061 609,086 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 43,679 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 78,735 1- to 4-family 46,229 48,811 49,213 49,458 49,719 50,025 50,344 50,989 Multifamily 10,910 12,343 12,923 13,262 13,523 13,792 13,876 14,030 Commercial 10,355 12,012 12,722 13,024 13,194 13,373 13,456 13,653 Farm 62 64 62 52 54 59 62 63 Savings and loan associations 206,182 231,733 249,293 261,336 270,600 278,693 286,556 299,574 1 - to 4-family 167,049 187,750 201.553 211,290 218,483 224,710 231,337 241,996 Multifamily 20,783 22,524 23,683 24,409 24,976 25,417 25,847 26,722 Commercial 18,350 21,459 24,057 25,637 27,141 28,566 29,372 30,856 Life insurance companies 76,948 81,369 86,234 88,035 88,445 89,358 89,781 89,691 1- to 4-family 22.315 20,426 19,026 18,377 17,964 17,602 17,321 16,861 Multifamily 17,347 18,451 19,625 19,795 19,756 19,708 19,726 19,374 Commercial 31,608 36,496 41,256 43,287 44,085 45,288 45,907 46,456 Farm 5,678 5,996 6,327 6,576 6,640 6,760 6,827 7,100 FEDERAL AND RELATED AGENCIES.. 40,157 46,721 58,320 61,470 64,464 66,891 66,650 66,192 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 1,109 650 830 1- to 4-family 279 743 759 367 343 208 97 228 C M o u m lt m ifa e m rc i i l a y l 3 2 2 9 0 2 2 1 9 8 1 1 6 5 7 6 2 1 6 7 8 6 1 18 3 1 4 2 1 1 9 5 0 9 2 6 3 1 4 5 6 1 Farm 391 376 350 358 460 496 434 405 Federal Housing and Veterans Administration 3,338 3,476 4,015 4,297 4,681 4,970 5,033 5,270 1- to 4-family 2,199 2,013 2,009 1,915 1,951 1,990 1,908 1,808 Multifamily 1,139 1,463 2,006 2,382 2,730 2,980 3,125 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 34,138 37,684 41,225 Government National Mortgage Association 5,504 7,890 11,769 15,437 16,595 18,257 20,479 23,634 1- to 4-family 5,353 7,561 11,249 14,863 15,946 17,538 19,693 22,821 Multifamily 151 329 520 574 649 719 786 813 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 15,438 1 - to 4-family 5,017 5,458 6,782 8,112 8,563 9,194 9,516 9,670 Multifamily 131 138 116 116 296 295 542 541 Commercial 867 1,124 1,473 1,687 1,765 1,948 2,122 2,104 Farm 2,444 2,664 2,902 3,005 2,941 2,846 3,026 3,123 INDIVIDUALS AND OTHERS 3 98,856 112,160 117,851 119,690 119,799 119,588 120,717 123,034 1- to 4-family 45,040 51,112 53,331 54,804 55,871 56,378 57,321 59,113 Multifamily 21,465 23,982 24,276 23,417 22,623 22,017 21,950 21,858 Commercial 19,043 21,303 23,085 23,178 22,719 22,489 22,189 22,096 Farm 13,308 15,763 17,159 18,291 18,586 18,704 19,257 19,967 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

NOVEMBER 1976 • REAL ESTATE CREDIT A43 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION— SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage holdings transactions commitments holdings transactions commitments (during period) (during period) Total i F su H in re A - d - a g n V u t A a e r e - - d c P ha u s r e - s Sales p d M e u r r a i i d o n d e g st O i a n n u g d t - - Total F V H A A - t C v io 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 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 19,791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,297 409 1,606 24,175 16,852 6,352 6,127 71 8,914 7,889 2,604 1,743 861 1,334 409 1,629 29,578 19,189 8,310 6,953 5 10,765 7,960 4,586 1,904 2,682 2,191 52 4,553 31,824 19,732 9,573 4,263 2 6,106 4,126 4,987 1,824 3,163 1,716 1,020 982 31,055 19,560 9,122 488 575 5,399 5,033 1,852 3,181 148 31 79 31,373 19,641 9,309 508 282 4,685 5,119 1,843 3,276 176 59 45 31,552 19,648 9.430 372 332 4,385 4,971 1,834 3,137 104 225 50 31,824 19,732 9,573 451 517 4,126 4,987 1,824 3,163 69 30 71 31,772 19,674 9,554 76 189 3,170 4,958 1,816 3,142 47 57 42 31,618 19,541 9,521 56 55 355 3,201 4,686 1,802 2,884 51 296 43 31,482 19,431 9,473 85 22 405 3,120 4,602 1,787 2,815 95 98 93 31,389 19,368 9.431 103 184 213 2,788 4,520 1,768 2,752 43 86 209 32,052 19,296 9.390 877 1,305 3,732 4,486 1,752 2,735 73 64 178 32,028 19,238 9.391 240 857 4,153 4,529 1,729 2,801 163 75 72 32,011 19,184 9,388 210 597 584 4,245 4,551 1,713 2,838 152 84 39 32,069 19,180 9,394 277 689 492 4,335 4,310 1,695 2,614 77 278 117 32,062 19,133 9,366 199 463 3,983 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 guaranteed For FNMA: Holdings include loans used to back bond issues guaranteed by GNMA. Commitments cover the conventional and Govt.-underby GNMA. Commitments include some multifamily and nonprofit written loan programs. hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA's free market auction system, and through the FNMA- GNMA Tandem Plans. FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1976 May 17 June 1 June 14 June 28 July 12 July 26 Aug. 9 Aug. 23 Sept. 7 Sept. 20 Oct. 4 Oct. 18 Amounts (millions of dollars): Govt.-underwritten loans Offered i 634.3 349.5 146.6 261.2 148.3 311.8 190.1 171.3 121.9 99.1 124.3 111.2 Accepted 321.4 224.7 98.8 157.5 88.4 212.0 107.4 107.0 68.8 49.1 61.8 45.3 Conventional loans Offered i 128.8 131.4 77.3 93.6 90.7 130.5 136.7 162.1 170.6 151.1 153.8 143.7 Accepted 68.9 90.5 70.3 59.2 82.0 105.2 93.4 115.3 117.8 107.6 94.4 121.4 Average yield (per cent) on shortterm commitments 2 Govt.-underwritten loans 9.13 9.20 9.14 9.12 9.05 9.04 9.01 8.97 8.92 8.84 8.80 8.70 Conventional loans 9.24 9.31 9.30 9.31 9.27 9.23 9.17 9.14 9.13 9.09 9.07 9.02 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 • NOVEMBER 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 All holders 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 1133..00 Sa F vi H ng A s and loan assns J } VA } 29.9 1 29.9 } 29.9 30.2 } 30.4 \ 30.6 Life insurance cos 12.9 1 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 5577..44 5599..99 6611..66 6622..22 6655..77 6677..88 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 TToottaall PPeerriioodd oo NN ff uu ll mm ooaa bb nn ee ss rr (( cc mm oo (( aa mm ii dd mm ll oo ll mm ii ll oo oo llaa uu ii nn tt rr nn ss tt ss ee tt )) dd oo ff ( o t f h a m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t n r e a t r c t 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 e o r r - o a v a t c a i e n o l n - u t e ) C (p a t p e i r o it n a c l e r i n z a a t t ) e - co D r v a e e t r b i a o t g e P co e n r s c ta en 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 Apr 78 292.1 3,745 9.88 23/1 73.0 10.4 1.31 10.8 May 104 294.8 2,834 9.80 21/2 74.4 10.4 1.30 11.1 June 104 297.2 2,858 9.90 20/9 73.9 10.1 1.31 10.6 NOTE.—American Council of Life Insurance 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

NOVEMBER 1976 • REAL ESTATE CREDIT AND CONSUMER CREDIT 45 TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FFFHHHAAA--- Terms1 Yields (per cent) in iiinnnsssuuurrreeeddd Drimarv market llloooaaannnsss———YYYiiieeelllddd iiinnn ppprrriiivvvaaattteee C ra o c t n e e n t ( r t p a ) e c r t ( F p c e e h r e a s c r g e a n e n s t d ) 2 M (y a e t a u r r s it ) y L (p o e a r r n a / t c p i e o r n ic t) e pr o P i f c u e d r o c ( h l t l h a a o s r e u s ) s . (t a d h m L o o l o u o la a u s r n . n s t o ) f F s H er L ie B s B 3 s H er U ie D s 4 ssseee mmm ccc aaa ooonnn rrrkkk ddd eee aaa ttt rrr 555 yyy 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.53 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 8.75 1.54 26.8 76.1 44.6 33.3 9.01 9.10 9.19 8.70 1.46 26.7 75.9 45.6 34.1 8.94 9.25 9.74 8.75 1.59 27.3 77.5 43.9 33.2 9.01 9.25 9.53 8.74 1.65 27.6 76.5 46.4 34.8 9.01 9.20 9.41 8.74 1.65 27.8 76.9 45.9 34.7 9.01 9.15 9.32 8.71 1.74 27.4 76.9 47.2 35.4 8.99 9.05 9.06 8.67 1.56 26.0 75.1 45.2 33.4 8.93 9.00 9.04 8.67 1.60 27.1 76.4 46.8 35.0 8.93 8.95 8.67 1.52 27.3 75.3 48.5 35.8 8.92 8.90 8.82 8.75 1.35 26.5 77.5 46.3 35.3 8.97 9.00 9.03 8.69 1.27 26.5 75.1 48.9 36.2 8.89 9.05 9.05 8.76 1.29 27.1 75.8 49.4 36.7 8.97 9.05 8.99 8.79 1.38 27.8 75.8 49.6 36.8 9.02 9.05 8.93 8.85 1.42 27.7 75.6 50.5 37.4 9.08 9.00 8.82 1 Weighted averages based on probability sample survey of character- (as shown in first column of this table) and an assumed prepayment at istics of mortgages originated by major institutional lender groups (in- end of 10 years. cluding mortgage companies) for purchase of single-family homes, as 4 Rates on first mortgages, unweighted and rounded to the nearest compiled by Federal Home Loan Bank Board in cooperation with Federal 5 basis points. Deposit Insurance Corporation. Data are not strictly comparable with 5 Based on opinion reports submitted by field offices of prevailing earlier figures beginning Jan. 1973. local conditions as of the first of the succeeding month. Yields are derived 2 Fees and charges—related to principal mortgage amount—include from weighted averages of private secondary market prices for Sec. 203, loan commissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed precosts 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 New Mobile Other Personal Credit- Automobiles Other automo- homes consumer loans card Mobile consumer biles (84 mos.) goods (12 mos.) plans homes goods (36 mos.) (24 mos.) New Used 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.43 19.31 11.53 11.94 13.28 13.60 17.17 12.97 17.78 11.57 11.87 13.16 13.47 17.16 13.06 17.88 " 1360' 'i 9!49 * 11.62 11.71 13.27 13.60 17.21 13.10 17.89 11.61 11.66 13.28 13.60 17.12 13.08 17.27 13.60 19.80 11.51 12.14 13,20 13.44 17.24 13.07 17.39 11.46 11.66 13.07 13.40 17.15 13.07 17.52 13.59 'ioioo' 11.44 11.78 13.22 13.55 17.17 13.07 17.58 11.39 11.57 13.11 13.41 17.21 13.09 17.65 13.57 19.63 11.26 12.02 13.10 13.40 17.10 13.12 17.67 11.30 11.94 13.13 13.49 17.15 13.09 17.69 13.78 19! 87 11.31 11.80 13.05 13.37 17.14 13.10 17.70 11.33 11.99 13.06 13.41 17.14 13.18 17.73 13.78 19.69 11.24 12.05 13.00 13.38 17.11 13.15 17.79 11.24 11.76 12.96 13.40 17.06 13.17 17.82 i 3! 43 19.66 11.25 11.83 13.11 13.46 17.13 13.19 17.86 11.21 11.76 13.14 13.40 17.08 13.18 17.25 11.18 11.77 13.02 13.24 17.14 13.14 17.37 13.18 19.58 11.13 11.82 13.02 13.13 16.99 13.13 17.48 11.08 11.66 12.95 13.16 17.04 13.13 17.58 11.00 11.61 12.96 13.27 17.02 13.15 17.64 13.35 19.37 11.02 11.82 12.99 13.32 17.04 13.17 17.68 1 1 1 1 . .0 06 7 1 1 1 1 . .8 80 4 1 1 3 3 . .0 0 2 2 1 1 3 3. . 3 3 1 8 1 1 7 6 . . 1 9 0 1 1 1 3 3 . . 1 1 6 8 1 1 7 7 . . 7 7 1 1 ii.59 "i9.5i * 11.07 11.88 13.08 13.40 17.02 NOTE.—Rates are reported on an annual percentage rate basis as specified maturities; finance company rates are weighted averages for specified in Regulation Z (Truth in Lending) of the Board of Governors. purchased contracts (except personal loans). For back figures and descrip- Commercial bank rates are "most common" rates for direct loans with tion of the data, see BULLETIN for Sept. 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 CONSUMER CREDIT • NOVEMBER 1976 INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1976 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 1973 1974 1975 Mar. Apr. May June July Aug. Sept. Amounts outstanding (end of period) TOTAL 146,434 155,384 162,237 160,729 162,334 164,101 166,664 168,674 171,160 172,918 By holder: Commercial banks 71,871 75,846 78,703 78,039 78,982 79,785 80,850 81,930 82,961 83,714 Finance companies 35,404 36,208 36,695 36,450 36,745 37,022 37,490 38,026 38,398 38,575 Credit unions 19,609 22,116 25,354 26,025 26,403 26,975 27,842 28,234 28,956 29,600 16,395 17,933 18,002 16,375 16,448 16,465 16,633 16,660 16,911 17,012 Others2 3,155 3,281 3,483 3,840 3,756 3,854 3,849 3,824 3,934 4,017 By type of credit: Automobile, total 50,065 50,392 53,028 53,650 54,572 55,484 56,667 57,659 58,665 59,270 Commercial banks 31,502 30,994 31,534 31,580 32,162 32,664 33,269 33,877 34,414 34,701 Purchased 18,997 18,687 18,353 18,200 18,472 18,671 18,912 19,151 19,404 19,495 Direct 12,505 12,306 13,181 13,381 13,690 13,993 14,358 14,726 15,010 15,206 Finance companies 10,718 10,618 11,439 11,695 11,903 12,080 12,333 12,573 12,748 12,808 Credit unions 7,456 8,414 9,653 9,908 10,051 10,269 10,601 10,749 11,024 11,270 Others 389 366 402 467 456 471 464 460 479 491 Mobile homes: 8,340 8,972 8,704 8,485 8,439 8,408 8,390 8,384 8,379 8,340 Finance companies 3,358 3,524 3,451 3,363 3,351 3,336 3,343 3,333 3,323 3,319 6,950 7,754 8,004 8,026 8,089 8,209 8,367 8,452 8,562 8,665 Commercial banks 4,083 4,694 4,965 4,924 4,978 5,048 5,129 5,192 5,263 5,318 Revolving credit: Bank credit cards 6,838 8,281 9,501 9,221 9,343 9,402 9,531 9,725 9,924 10,153 Bank check credit 2,254 2,797 2,810 2,769 2,775 2,777 2,805 2,835 2,870 2,922 All other, total 68,629 73,664 76,738 75,215 75,765 76,485 77,561 78,286 79,438 80,249 Commercial banks, total 18,854 20,108 21,188 21,060 21,285 21,486 21,726 21,917 22,112 22,280 Personal loans 12,873 13,771 14,629 14,578 14,743 14,871 15,034 15,148 15,308 15,450 Finance companies, total 20,914 21,717 21,655 21,247 21,350 21,466 21,675 21,983 22,192 22,316 Personal loans 16,483 16,961 17,681 17,434 17,528 17,631 17,811 18,079 18,275 18,371 Credit unions 11,564 13,037 14,937 15,333 15,557 15,894 16,402 16,635 17,060 17,438 Retailers 16,395 17,933 18,002 16,375 16,448 16,465 16,633 16,660 16,911 17,012 Others 902 869 956 1,200 1,125 1,174 1,125 1,091 1,163 1,203 Net change (during period)3 TOTAL 19,676 8,952 6,843 1,473 1,427 1,474 1,330 1,303 1,403 1,481 By holder: Commercial banks 11,001 3,975 2,851 552 575 713 409 619 518 697 Finance companies 4,006 806 483 282 326 157 230 264 169 233 Credit unions 2,696 2,507 3,238 514 392 521 482 365 386 483 Retailers 1,632 1,538 69 108 177 5 214 116 183 24 Others 341 126 202 16 -42 78 -5 -61 148 45 By type of credit: Automobile, total 5,968 327 2,631 663 732 652 526 556 621 605 Commercial banks 4,197 -508 535 237 356 340 229 327 377 376 Purchased 2,675 -310 -340 99 162 110 32 60 159 125 Direct 1,523 -198 875 138 194 230 197 267 218 251 Finance companies 740 -100 821 240 224 122 116 108 62 28 Credit unions 1,024 958 1,239 192 151 181 186 135 136 172 Other 7 -23 36 -6 2 9 -4 -13 46 28 Mobile homes: Commercial banks 1,933 632 -268 -18 -52 -37 -42 -28 -35 -53 Finance companies 444 168 -73 -11 -17 « —9 -16 — 16 Home improvement, total 1,033 804 248 69 39 70 79 19 39 65 Commercial banks 482 611 271 41 26 36 29 22 25 43 Revolving credit: Bank credit cards 1,430 1,443 1,220 192 139 193 98 171 86 166 Bank check credit 478 543 14 16 35 44 14 27 -6 17 All other, total 8,389 5,036 3,072 550 546 570 655 567 714 698 Commercial banks, total 2,480 1,255 1,080 84 70 138 81 101 71 148 Personal loans 1,492 898 858 51 69 112 86 70 46 108 Finance companies, total 2,564 803 -64 43 119 53 115 170 126 223 Personal loans 1,746 479 717 62 116 21 95 143 106 198 Credit unions 1,591 1,473 1,900 307 228 326 282 220 240 297 Retailers 1,632 1,538 69 108 177 5 214 116 183 24 Others 122 -33 87 7 -49 48 -38 -39 96 5 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

NOVEMBER 1976 • CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND LIQUIDATIONS (In millions of dollars) 1976 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11997733 11997744 11997755 Mar. Apr. May June July Aug. Sept. Extensions1 TOTAL 160,228 160,008 163,483 15,521 15,003 15,041 15,592 15,240 15,685 15,775 By holder: Commercial banks 72,216 72,605 77,131 7,352 6,989 7,223 7,289 7,358 7,487 7,546 Finance companies 38,922 35,644 32,582 2,945 2,913 2,776 2,986 2,861 2,965 3,072 Credit unions 21,143 22,403 24,151 2,389 2,386 2,448 2,456 2,329 2,313 2,424 Retailers2 25,440 27,034 27,049 2,596 2,544 2,313 2,650 2,533 2,548 2,463 Others3 2,507 2,322 2,570 238 171 280 211 159 372 271 By type of credit: Automobile, total 46,105 43,209 48,103 4,689 4,583 4,471 4,600 4,477 4,712 4,769 Commercial banks 29,369 26,406 28,333 2,699 2,677 2,616 2,660 2,680 2,762 2,846 Purchased 17,497 15,576 15,761 1,514 1,475 1,413 1,386 1,417 1,480 1,511 Direct 11,872 10,830 12,572 1,185 1,202 1,204 1,274 1,263 1,282 1,335 Finance companies 9,303 8,630 9,598 990 975 914 935 891 937 891 Credit unions 7,009 7,788 9,702 964 891 892 968 879 928 963 Others 424 385 470 35 40 49 36 27 84 69 Mobile homes: Commercial banks 4,438 3,486 2,681 233 186 182 204 223 118866 200 Finance companies 1,573 1,413 771 63 61 49 68 59 54 53 Home improvement, total 4,414 4,571 4,398 414 413 385 410 381 400 434 Commercial banks 2,487 2,789 2,722 253 259 233 235 240 242 266 Revolving credit: Bank credit cards 13,863 17,098 20,428 2,118 1,985 2,103 2,088 2,152 22,,118833 2,165 Bank check credit 3,373 4,227 4,024 380 394 422 435 401 413 375 All other, total 86,462 86,004 83,079 7,624 7,382 7,429 7,786 7,546 c7,737 7,779 18,686 18,599 18,944 1,669 1,489 1,667 1,666 1,661 1,702 1,693 12,928 13,176 13,386 1,182 1,081 1,203 1,221 1,174 1,197 1,193 Finance companies, total 27,627 25,316 22,135 1,890 1,874 1,810 1,981 1,907 1,970 2,125 Personal loans 17,885 16,691 17,333 1,551 1,545 1,465 1,641 1,535 1,607 1,745 Credit unions 13,768 14,228 13,992 1,376 1,446 1,511 1,440 1,403 1,338 1,410 25,440 27,034 27,049 2,596 2,544 2,313 2,650 2,533 2,548 2,463 Others 941 827 959 93 29 127 50 43 180 87 Liquidations1 TOTAL 140,552 151,056 156,640 14,048 13,576 13,566 14,261 13,937 14,282 14,294 By holder: Commercial banks 61,215 68,630 74,280 6,800 6,414 6,510 6,879 6,739 6,970 6,849 Finance companies 34,916 34,838 32,099 2,663 2,587 2,619 2,756 2,597 2,796 2,839 Credit unions 18,447 19,896 20,913 1,875 1,994 1,927 1,974 1,964 1,927 1,941 Retailers2 23,808 25,496 26,980 2,488 2,367 2,308 2,436 2,417 2,365 2,439 Others3 2,166 2,196 2,368 222 214 202 216 220 224 226 By type of credit: Automobile, total 40,137 42,883 45,472 4,026 3,851 3,819 4,074 3,922 4,090 4,165 Commercial banks 25,172 26,915 27,798 2,463 2,321 2,276 2,432 2,354 2,385 2,470 Purchased 14,823 15,886 16,101 1,416 1,313 1,303 1,354 1,357 1,321 1,386 Direct 10,349 11,029 11,697 1,047 1,008 973 1,077 996 1,064 1,084 Finance companies 8,563 8,730 8,777 750 751 792 819 784 874 862 5,985 6,830 8,463 772 740 711 783 745 792 791 Others 417 408 434 42 39 39 40 39 39 42 Mobile homes:. Commercial banks 2,505 2,854 2,949 251 237 219 247 251 222 253 Finance companies 1,129 1,245 844 63 72 67 68 68 70 69 Home improvement, total 3,381 3,767 4,150 344 374 314 330 362 361 369 Commercial banks 2,005 2,178 2,451 212 232 197 206 218 216 223 Revolving credit: Bank credit cards 12,433 15,655 19,208 1,926 1,846 1,911 1,990 1,981 2,097 2,000 Bank check credit 2,894 3,684 4,010 364 359 378 421 374 419 358 All other, total 78,072 80,969 80,007 7,074 6,836 6,859 7,132 6,979 7,023 7,081 Commercial banks, total 16,205 17,345 17,864 1,584 1,418 1,529 1,585 1,560 1,631 1,545 Personal loans 11,435 12,278 12,528 1,131 1,012 1,091 1,135 1,104 1,151 1,085 Finance companies, total 25,063 24,513 22,199 1,846 1,756 1,758 1,866 1,737 1,844 1,902 Personal loans 16,139 16,212 16,616 1,489 1,429 1,445 1,546 1,392 1,501 1,547 Credit unions 12,177 12,755 12,092 1,069 1,218 1,185 1,158 1,183 1,098 1,113 Retailers 23,808 25,496 26,980 2,488 2,367 2,308 2,436 2,417 2,365 2,439 Others 819 860 872 86 77 79 87 82 85 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 • NOVEMBER 1976 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 11996677 11997755 1975 1976 pprroo-- aavveerr-- GGrroouuppiinngg ppoorr-- aaggee ttiioonn Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.e Major market groupings Total index 100.00 117.8 122.2 123.5 124.4 125.7 127.3 128.1 128.4 129.6 130.1 130.7 131.3 131.0 130.4 Products, total 60.71 119.3 122.4 123.8 124.9 126.0 127.4 128.1 128.0 128.9 129.5 129.8 130.4 129.7 129.2 Final products 47.82 118.2 120.9 122.3 123.5 123.9 125.3 126.4 126.3 127.3 127.6 127.6 128.3 127.2 126.5 Consumer goods 27.68 124.0 128.7 131.1 132.3 133.1 134.9 136.1 136.1 137.4 137.8 136.8 137.5 136.1 135.2 Equipment 20.14 110.2 110.0 110.0 111.5 111.2 112.1 112.9 112.9 113.5 113.8 114.9 115.8 115.3 114.7 Intermediate products 12.89 123.1 128.0 129.3 129.9 133.6 135.3 134.9 134.7 135.0 135.9 137.6 138.1 139.0 139.0 Materials 39.29 115.5 122.0 123.1 123.3 125.3 127.3 128.2 129.2 130.6 131.1 132.2 132.9 132.9 132.3 Consumer goods Durable consumer goods 7.89 121.4 131.9 132.5 134.0 134.7 137.9 140.3 141.1 143.2 144.2 141.8 144.1 138.7 136.3 Automotive products 2.83 125.9 140.8 143.2 147.7 142.8 148.9 155.2 155.2 154.0 156.6 155.9 158.4 147.1 144.2 Autos and utility vehicles 2.03 113.7 133.6 134.7 140.0 133.4 142.0 149.5 152.1 153.4 156.6 155.9 158.2 139.0 135.7 Autos 1.90 101.1 119.1 120.9 122.8 118.9 125.8 133.6 134.3 134.3 137.5 135.0 137.7 120.9 121.5 Auto parts and allied goods... .80 156.6 159.0 164.9 167.0 167.4 166.5 169.5 163.1 155.6 156.9 156.0 158.4 167.8 166.1 Home goods 5.06 118.8 127.0 126.5 126.4 130.3 131.7 132.0 133.1 137.2 137.4 133.8 136.1 133.9 131.8 Appliances, A/C, and TV 1.40 98.0 105.3 100.9 101.1 107.8 112.6 114.6 117.2 123.5 123.8 110.3 119.1 113.1 108.7 Appliances and TV 1.33 100.2 109.3 103.7 104.4 110.6 115.2 117.1 119.6 126.4 126.7 114.1 121.9 116.9 112.0 Carpeting and furniture 1.07 126.8 141.9 144.7 142.0 144.8 145.6 141.4 143.0 142.6 142.5 142.0 145.0 144.2 Misc. home goods 2.59 126.9 132.6 132.9 133.6 136.6 136.3 137.9 137.8 142.5 142.6 143.0 141.7 141.0 i4o'.i Nondurable consumer goods 19.79 125.1 127.4 130.6 131.5 132.5 133.9 134.4 134.0 135.1 135.1 134.8 135.0 135.0 134.7 Clothing 4.29 111.6 120.4 123.2 123.9 127.4 127.6 130.1 129 6 132.1 127.9 126.3 124.2 Consumer staples 15.50 128.8 129.3 132.5 133.6 133.9 135.7 135.6 135'.2 135.8 137.1 137.2 137.9 138.2 138.2 Consumer foods and tobacco., 8.33 122.8 125.3 127.6 127.2 128.5 129.9 129.0 128.4 129.8 130.8 131.4 131.7 132.3 Nonfood staples 7.17 135.8 133.8 138.2 141.0 140.2 142.3 143.3 143.3 142.7 144.5 143.9 145.1 145.2 145.4 Consumer chemical products, 2.63 151.3 149.8 157.8 159.7 157.3 161.1 163.6 162.1 161.4 165.4 166.2 168.8 169.7 Consumer paper products..., 1.92 107.0 104.4 107.5 113.4 113.3 113.9 113.4 114.2 113.8 112.3 112.8 113.9 112.5 Consumer energy products.., 2.62 141.6 139.2 140.9 142.8 142.4 144.3 145.0 145.9 145.1 147.2 144.1 143.9 144.5 Residential utilities 1.45 152.3 148.6 152.0 152.0 154.5 153.7 153.7 154.5 154.7 153.2 150.4 Equipment Business equipment 12.63 128.2 128.8 129.6 131.6 131.0 132.6 134.0 134.1 134.6 135.0 136.9 137.5 137.4 135.9 Industrial equipment 6.77 121.2 122.1 123.0 124.5 123.5 124.0 125.6 125.3 126.9 121A 127.5 128.0 129.2 128.4 Building and mining equip. 1.44 168.3 172.9 174.9 172.9 171.4 171.5 172.1 170.7 174.6 174.9 176.9 179.2 180.3 175.0 Manufacturing equipment 3.85 99.9 100.5 99.9 101.3 101.2 102.7 104.4 105.4 106.4 106.5 107.2 107.2 108.3 109.0 Power equipment 1.47 130.8 128.9 132.3 137.6 134.6 133.1 135.6 132.7 134.0 135.4 132.6 132.0 133.2 133.3 Commercial transit, farm equip.., 5.86 136.3 136.4 137.2 139.7 139.7 142.4 143.7 144.6 -143.7 143.8 147.7 148.8 146.9 144.7 Commercial equipment 3.26 157.8 158.5 159.5 164.4 165.0 166.6 168.5 170.0 169.5 171.4 174.1 176.2 176.6 177.4 Transit equipment 1.93 101.9 102.4 102.8 102.9 100.2 103.7 104.7 105.6 104.2 102.9 107.6 106.6 103.0 101.4 Farm equipment .67 130.6 126.6 127.7 125.6 131.5 135.3 134.7 132.7 133.1 128.0 135.3 136.8 127.9 Defense and space equipment 7.51 80.0 78.5 77.3 77.7 78.0 77.6 77.4 77.3 78.2 78.3 78.0 79.1 78.1 78.8 Intermediate products Construction supplies 6.42 116.3 122.7 123.1 124.1 126.8 129.6 128.7 128.0 130.9 131.8 133.1 134.0 134.8 135.0 Business supplies 6.47 129.8 133.3 135.4 135.9 140.3 140.9 141.2 141.3 139.0 140.1 142.1 142.2 143.2 1.14 150.6 147.5 149.8 147.9 158.1 154.0 157.6 156.8 157.1 156.1 159.1 160.0 160.0 Commercial energy products Materials 20.35 109.1 114.6 115.2 115.5 118.3 121.6 122.4 124.5 126.8 127.0 130.6 131.2 129.7 129.2 Durable goods materials 4.58 97.7 107.2 109.3 111.6 111.7 116.7 118.5 119.2 123.0 123.1 126.1 125.1 121.9 121.0 Durable consumer parts 5.44 118.9 120.6 122.3 123.9 125.7 127.5 128.5 130.5 133.0 134.0 136.3 138.0 138.6 139.1 Equipment parts 10.34 109.0 114.8 114.0 112.9 117.4 120.7 121.0 123.5 125.2 125.0 129.8 130.3 128.7 127.6 Durable materials n.e.c 5.57 99.1 99.5 99.5 96.1 101.9 105.1 104.0 107.8 113.2 111 .3 117.5 119.6 115.0 Basic metal materials Nondurable goods materials 10.47 126.6 140.3 141.3 142.6 142.9 145.5 146.7 146.9 146.2 147.5 146.0 146.1 148.7 147.1 Textile, paper, and chem. mat..., 7.62 129.0 144.9 146.2 147.9 147.5 150.5 152.7 152.2 150.9 151.8 150.5 150.5 153.2 151.7 Textile materials 1.85 100.6 117.3 118.4 118.9 117.8 116.2 115.5 114.1 116.4 116.1 114.7 113.7 115.2 Paper materials 1.62 113.2 121.6 124.4 125.9 126.5 130.0 130.1 132.1 131.2 134.2 132.1 132.7 132.2 Chemical materials 4.15 147.9 166.3 167.2 169.5 168.9 173.9 178.0 177.2 173.9 174.7 173.8 173.7 178.3 Containers, nondurable 1.70 127.9 137.3 134.8 136.1 139.0 142.2 141.3 141.9 140.7 146.6 142.8 142.9 146.1 Nondurable materials n.e.c 1.14 108.3 114.3 118.4 116.7 118.3 117.3 115.1 120.4 123.2 119.6 120.4 121.3 121.5 Energy materials 8.48 117.2 117.0 119.7 118.7 120.6 118.8 119.6 118.8 120.6 120.6 119.5 120.6 121.2 121.2 Primary energy 4.65 108.3 109.6 110.5 107.3 107.7 105.4 106.2 105.0 106.2 107.5 106.9 108.4 108.9 Converted fuel materials 3.82 128.0 125.9 130.8 132.3 136.3 135.2 136.0 135.7 138.1 136.7 134.6 135.7 136.4 Supplementary groups Home goods and clothing 9.35 115.5 124.0 125.0 125.2 129.9 129.8 131.1 131.5 134.9 133.0 130.3 130.7 128.9 127.3 Energy, total 12.23 125.5 124.5 127.1 126.6 128.8 127.5 128.6 128.2 129.3 129.7 128.4 129.3 129.9 129.7 Products 3.76 144.3 141.8 143.7 144.5 147.2 147.1 148.8 149.3 148.8 149.9 148.7 148.8 149.3 148.9 Materials 8.48 117.2 117.0 119.7 118.7 120.6 118.8 119.6 118.8 120.6 120.6 119.5 120.6 121.2 121.2 For NOTES see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • INDUSTRIAL PRODUCTION 49 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 11996677 1975 1976 SSIICC pprroo-- 11997755 GGrroouuppiinngg ccooddee pp ttii oo oo rr nn -- aa aa vv gg ee ee rr -- Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.f Oct.e Gross value of products in market structure (Annual rates, in billions of 1972 dollars) Products, total 1286.3 505.9 521.1 527.1 528.4 531.9 544.3 546.0 545.0 551.5 552.4 552.7 556.1 551.9 547.8 Final products 1221.4 393.3 404.0 409.7 410.6 410.9 421.7 423.0 421.8 427.5 428.3 427.8 430.9 425.1 421.2 Consumer goods 1156.3 214.4 285.0 290.5 292.0 292.3 300.6 299.7 299.9 303.7 305.5 302.2 304.6 301.0 299.8 Equipment 165.3 119.0 119.1 119.3 118.9 119.1 121.1 123.6 122.1 123.7 123.1 125.8 126.4 124.1 121.6 Intermediate products 116644..99 111122..66 111166..66 117.6 117.9 120.8 122.8 122.6 123.0 123.7 124.1 124.7 125.5 127.0 126.6 Major industry groupings Mining and utilities. 12.05 128.5 127.9 130.5 129.2 131.8 131.5 131.6 131.2 132.0 131.9 130.6 131.8 132.3 132.4 Mining 6.36 112.8 113.8 114.2 112.9 113.6 112.7 113.9 113.5 113.0 114.4 112.5 114.6 115.1 115.4 Utilities... 5.69 146.0 143.8 148.8 147.2 152.0 152.5 151.4 150.8 153.0 151 .2 150.8 151.2 151.5 151.5 Electric 3. 160.8 157.3 165.5 162.3 167.4 168.7 167.3 165.7 169.8 167.2 167.2 166.4 Manufacturing. 87.95 116.3 121.2 122.7 123.6 125.2 127.0 127.9 128.5 129.6 130.2 131.0 131.7 131.0 130.0 Nondurable. 35.97 126.4 133.6 136.2 136.9 138.4 140.2 140.7 140.7 140.9 141.3 141. 141.3 141.8 141.3 Durable 51.98 109.3 112.7 113.4 114.4 115.8 117.9 119.0 120.1 121.7 122.3 124.2 125.0 123.6 122.2 Mining Metal mining 10 .51 115.8 112.5 118. 117.9 122.2 124.2 122.3 124.3 118.3 118.3 121.6 127.3 123.1 Coal 11,12 .69 113.4 122.2 125.6 109.9 111.2 109.6 114.4 114.4 119.2 122.7 104.8 112.6 121.4 120.0 Oil and gas extraction 13 4.40 113.3 113.1 112.3 113.1 112.5 110.1 111.9 111.3 110.8 112.3 112.0 112.7 112.2 112.1 Stone and earth minerals. 14 .75 107.0 110.9 112.1 111.5 117.1 120.0 119.3 117.5 116.7 116.5 116.5 119.1 121.4 Nondurable manufactures Foods 8.75 123.4 126.4 128.8 128.5 129.2 130.8 128.3 129.2 131.2 130.5 131.8 132.6 133.3 Tobacco products .67 111.8 113.9 118.5 116.0 117.3 118.8 122.4 115.4 114.5 115.4 114.5 114.8 Textile mill products. 2.68 122.3 137.5 141.6 139.0 137.6 138.7 136.4 135.7 138.0 138.1 136.8 134.6 135.9 Apparel products 3.31 107.6 115.9 118.3 121.2 123.8 128.0 126.3 126.1 130.3 126.8 125.6 123.7 Paper and products.. 3.21 116.3 126.5 127.7 129.5 130.3 133.0 132.2 133.9 130.4 139.1 132.0 134.6 i32.7 131 Printing and publishing 4.72 113.4 113.2 115.4 118.4 120.0 121.0 121.0 122.0 120.5 11-9.7 122.0 120.6 120.4 119 Chemicals and products 7.74 147.3 157.5 161.9 163.3 162.9 167.6 170.6 168.7 166.6 170.0 167.6 170.6 171.2 Petroleum products 1.79 124 125.1 124.9 126.3 125.7 129.1 131.8 131.6 132.7 135.1 134.1 130.7 130.2 i26 Rubber & plastic products... 2.24 166.7 185.1 185.2 185.3 188.4 196.7 203.5 198.2 185.6 189.1 191.2 186.1 211.2 Leather and products .86 76.5 85.8 87.7 83.2 86.0 86.1 86.0 87.7 91.4 84.0 81. 77.3 77.4 Durable manufactures Ordnance, pvt. & govt... 19,91 3.64 76.6 72.0 70.0 70.1 69.9 69.5 69.5 69.1 71.4 73.1 74.0 75.0 73.6 Lumber and products.. 24 1.64 107.6 116.8 114.1 116.4 123.5 123.9 121.1 122.8 123.0 120.3 124.6 128 128.6 Furniture and fixtures. . 25 1.37 118.2 127.9 128.7 130.3 132.7 134.1 130.6 131.7 131.0 130.1 131.6 134.4 130.9 Clay, glass, stone prod. 32 2.74 117.9 127.8 127.5 129.4 128.6 128.5 133.7 132.7 133.9 136.1 137.2 137.4 138.0 Primary metals 33 6.57 96.4 95.4 98.1 92.6 98 103.9 101.4 105.4 113.2 111.5 116.9 118.3 114.9 112.0 Iron and steel 4.21 95.8 92.0 96.5 89.1 92.9 100.9 97.7 103.5 110.7 110.0 115.3 116.2 111.8 108.9 Fabricated metal prod ... 5.93 109.9 114.4 116.3 117.3 116.6 120.9 120.2 121.5 121.4 124.0 124.6 125.8 125.4 122.0 Nonelectrical machinery. 9.15 125 125.4 126.6 128.6 129.0 131.5 132.9 133.5 134.0 133.5 135.0 136.1 136.7 136.7 Electrical machinery 8.05 116.5 120.1 120.1 122.7 124.7 126.5 127.8 130.0 131.8 132.0 131.0 131.9 128.7 129.0 Transportation equip 9.27 97.4 104.4 104.7 106.7 105.8 109.0 111 .2 110.6 112.9 112.6 113.3 115.0 105.4 105.9 Motor vehicles & pts 4.50 111. 126.5 127. 130.1 126.7 135.2 140.8 141.3 144.3 146.5 148.5 150.6 131.3 131.1 Aerospace & misc. tr. eq.. 4.77 84.5 83.6 83.6 84.7 86.1 84.3 83.3 81.7 83.3 80.7 80.3 81.5 81.0 82.2 Instruments 2.11 132.3 136.0 136.4 140.9 142.0 141.8 144.4 145.4 149.0 149.5 151.3 149.6 148.6 149.0 Miscellaneous mfrs 1.51 128.3 134.6 137.6 137.3 139.5 140.7 142.5 140.7 145.5 145.9 148.5 142.1 142.7 142.4 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 • NOVEMBER 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu- Prices4 facturing2 In- Ca- Market dustry pacity Nonagutiliza- Con- ricul- Period tion struc- tural Total Whole- TToottaall in mfg. tion em- Em- Pay- retail Con- sale FFiinnaall (1967 con- ploy- ploy- rolls sales 3 sumer com- MMaattee-- Manu- output tracts ment— ment mmooddiittyy 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 87.0 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 86.1 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 83.6 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 75.0 78.0 8833..99 60.3 64 86.6 94.6 1Q5Q 64.8 64.5 63.2 68.1 56.5 69.5 65.3 64.1 81.6 81.0 8888..11 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 77.3 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 83.5 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 85.7 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 89.5 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 91.1 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 86.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968. 106.3 106.2 106.2 105.9 106.5 106.3 106.5 106.4 87.0 113.2 103.2 101.4 108.3 109 104.2 102.5 1969. 111.1 110.3 109.6 109.8 109.3 112.9 112.5 111.0 86.2 123.7 106.9 103.2 116.6 114 109.8 106.5 1970 107.8 106.9 105.3 109.0 100.1 112.9 109.2 106.4 79.2 123.1 107.7 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 78.0 145.4 108.1 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 83.1 165.3 111.9 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 87.5 179.5 116.8 103.2 149.2 160 133.1 134.7 1974. 129.3 127.3 125.1 128.9 120.0 135.3 132.4 129.4 84.2 169.7 119.1 102.1 157.1 171 147.7 160.1 1975 117.8 119.3 118.2 124.0 110.2 123.1 115.5 116.3 73.6 166.0 116.9 91.4 151.0 186 161.2 174.9 1975--Oct 122.2 122.4 120.9 128.7 110.0 128.0 122.0 121.2 1 166.0 117.8 92.5 158.4 192 164.6 178.9 Nov 123.5 123.8 122.3 131.1 110.0 129.3 123.1 122.7 76.8 148.0 117.8 92.4 158.9 192 165.6 178.2 Dec 124.4 124.9 123.5 132.3 111.5 129.9 123.3 123.6 J 137.0 118.1 93.0 162.3 198 166.3 178.7 1976--Jan 125.7 126.0 123.9 133.1 111.2 133.6 125.3 125.2 183.0 118.7 94.0 165.9 197 166.7 179.3 M Fe a b r 1 12 2 8 7 . . 1 3 1 1 2 2 8 7 . . 1 4 1 1 2 2 5 6 . . 3 4 1 13 3 6 4 . . 1 9 1 1 1 1 2 2 . . 1 9 1 1 3 3 5 4. . 9 3 1 1 2 2 7 8 . . 3 2 1 1 2 2 7 7 . . 9 0 17 9.0 1 1 8 7 5 0 . . 0 0 1 1 1 1 9 9 . . 0 4 9 9 4 4 . . 9 3 1 1 6 6 5 7 . . 4 4 2 20 0 1 4 1 1 6 6 7 7 . . 1 5 1 1 7 7 9 9 . . 3 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 J M u a n y e 1 13 2 0 9 . . 1 6 1 1 2 2 9 8 . . 5 9 1 1 2 2 7 7 . . 6 3 1 13 3 7 7 . . 8 4 1 1 1 1 3 3 . . 5 8 1 1 3 3 5 5 . . 9 0 1 13 3 1 0 . . 1 6 1 1 2 3 9 0 . . 6 2 I8 0.2 2 1 0 8 5 7 . . 0 0 1 11 1 9 9 . . 9 8 9 9 5 5. . 3 4 1 1 7 7 0 1 . . 7 6 2 2 0 0 6 2 1 17 6 0 9 . . 1 2 1 18 8 3 1 . . 1 8 July 130.7 129.8 127.6 136.8 114.9 137.6 132.2 131.0 ] 184.0 120.2 95.1 173.2 205 171.1 184.3 Aug 131.3 130.4 128.3 137.5 115.8 138.1 132.9 131.7 [80.9 162.0 120.5 95.3 175.9 209 171.9 183.7 Sept 131.0 129.7 127.2 136.1 115.3 139.0 132.9 131.0 J 164.0 120.8 96.2 177.6 206 172.6 184.7 Oct 113300..44 112299..22 112266..55 113355..22 111144..77 113399..00 113322..33 113300..00 112200..77 9955..22 117766..00 220077 118855..22 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 TTyyppee ooff oowwnneerrsshhiipp aanndd 11997744 11997755 ttyyppee ooff ccoonnssttrruuccttiioonn Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Total construction contracts 1 93,685 90,237 7,692 7,767 5,573 5,431 6,390 6,149 8,908 9,408 9,836 10,533 9,774 8,505 8,112 By type of ownership: Public 32,062 31,415 2,725 2,544 1,597 1,724 1,655 1,719 2,192 2,383 3,915 3,136 3,246 2,505 2,344 Private i 61,623 58,822 4,967 5,223 3,976 3,708 4,734 4,430 6,716 7,025 5,921 7,397 6,528 5,999 5,768 By type of construction: Residential building 1 33,567 31,347 2,966 3,189 2,404 2,233 2,157 2,546 3,618 4,003 3,955 4,166 4,149 4,099 3,758 Nonresidential building 33,131 30,577 2,526 2,629 1,859 1,865 1,939 1,996 2,561 2,741 2,819 2,805 3,031 2,536 2,875 Nonbuilding 26,988 28,313 2,200 1,949 1,309 1,334 2,294 1,608 2,729 2,664 3,062 3,562 2,594 1,869 1,478 Private housing units authorized... 11,,007744 926 11,,009922 11,,111111 11,,112277 11,,009911 11,,114477 1,165 1,188 11,,008822 1,158 11,,115500 1,215 rrll,,229966 1,433 (In thousands, S.A., A.R.) i Because of improved procedures for collecting data for 1 -family homes, NOTE.—Dollar value of constructioii 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

NOVEMBER 1976 • CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public J Nonresidential Conser- Total i Total d R en es ti i a - l Total In tr d i u al s - B m u C i e l o r d m c i i n a - g l s b O in u t g i h s l e d r 2 - P o u i u a t t h t n i b i e e l d l s - r i c M ta i r l y i- H w ig a h y - de v m v a a e n t e i l d n o o t n p - 78,082 52,546 25.564 26,982 25,536 695 8,591 2,124 87,093 59,488 30.565 28,923 6,021 7,761 4,382 10,759 27,605 808 9,321 1,973 93,917 65,953 33,200 32,753 6,783 9,401 4,971 11,598 27,964 879 9,250 1,783 94,855 66,759 31,864 34,895 6,518 9,754 5,125 13,498 28,096 718 9,981 1,908 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 124,085 93,901 54,288 39,613 4,676 13,464 5,898 15,575 30,184 1,087 10,429 2,172 137,917 105,412 59,727 45,685 6,243 15,453 5,888 18,101 32,505 1,166 10,505 2.313 138,526 100,179 50,378 49,801 7,902 15,945 5,797 20,157 38,347 1,188 12,069 2,741 132,043 93,034 46,476 46,558 8,017 12,804 5,585 20,152 39,009 1,391 10,345 3,227 136,310 95,365 48,375 46,990 7,895 12,369 5,820 20,906 40,945 1.597 10,738 3,429 136,204 95,561 49,396 46,165 7,591 12,418 5,604 20,552 40,643 1,500 10,425 3.314 138,040 97,346 50,409 46,937 7,720 12,420 5,754 21,043 40,694 1,617 10,389 3,575 137,833 98,063 52,061 46,002 7,582 12,209 5,608 20,603 39,770 1,583 10,423 3,670 136,713 99,345 52,755 46,590 7,522 11,479 5,843 21,746 37,368 1,505 9,808 3,295 139,030 102,635 55,227 47,408 7,842 12,762 6,024 20,780 36,395 1.598 9,018 3,751 145,085 107,068 58,119 48,949 7,605 13,346 5,957 22,041 38,017 1,454 9,632 3,385 143,901 106,004 58,398 47,606 7,227 12,604 5,567 22,208 37,897 1,522 10,575 3,774 142,840 106,626 58,346 48,280 6,967 12,331 5,967 23,015 36,214 1,423 9,901 3,546 146,444 107,528 59,555 47,973 6,738 12,006 6,229 23,000 38,916 1,368 10,292 3,674 145,144 108,377 60,558 47,819 6,097 12,574 6,178 22,970 36,767 1,446 8,297 3,573 148,055 110,275 60,054 50,221 6,902 12,984 6,689 23,646 37,780 1,439 9,249 4,065 149,371 111,736 62,005 49,731 6,607 12,432 6,645 24,047 37,635 1,437 1 Data beginning Jan. 1976 are not strictly comparable with prior data 2 Includes religious, educational, hospital, institutional, and other buildbecause of change by Census Bureau in its procedure for estimating con- ings. struction outlays of State and local governments. Such governments accounted for 86 per cent of all public construction expenditures in 1974. NOTE.—Census Bureau data; monthly series at seasonally adjusted annual rates. PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale 1 Units Mobile Period home 1- 2-or- 2-or- 1- 2-or- ship- Total family more Total family more Total family more ments family family family For sale Sold (end of period) 196 7 1,292 844 448 240 487 190 196 8 1,508 899 608 1,320 859 461 318 490 218 196 9 1,467 811 656 1,399 807 591 885 350 535 413 448 228 197 0 1,434 813 621 1,418 802 617 922 381 541 401 485 227 197 1 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 197 2 2,357 1,309 1,047 1,971 1,143 828 1,586 640 947 576 718 416 197 3 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 197 4 1,338 888 450 1,692 931 760 1,189 516 673 329 501 407 197 5 1,160 892 268 1,297 866 430 1,003 531 472 216 544 383 1975—Sept.. 1,304 966 338 1,315 969 346 1,033 528 505 228 571 384 Oct.. . 1,431 1,093 338 1,115 738 377 1,057 556 501 235 610 389 Nov.. 1.381 1,048 333 1,386 992 394 1.056 560 496 230 660 381 Dec... 1,283 962 321 1,329 993 336 1.041 558 482 224 641 378 1976—Jan.. . 1,236 957 279 1,213 926 287 1.042 564 478 263 573 379 Feb... 1,547 1,295 252 1,299 953 346 1,053 584 469 287 679 384 Mar.. 1,417 1,110 307 1,399 1,032 367 1.057 594 463 244 573 389 Apr.. -. 1,367 1,055 312 1,266 986 280 1,061 599 462 237 628 394 Mayr. 1,422 1,065 357 1,360 934 426 1,055 603 452 260 540 400 June r. 1,510 1,139 371 1,373 1,052 321 1,064 609 455 233 594 406 July. 1.382 1,123 259 1,294 1,029 265 1,063 615 448 224 612 411 Aug... 1,542 1,186 356 1,386 1,081 305 1,075 624 451 252 656 405 Sept.* 1,814 1,295 519 252 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 • NOVEMBER 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civiliti n labor force i( S.A.) Period i p T n ( o s o N t p t i a t u . u S l l t a . n A i t o o i . n o n ) n a - l la ( b N N o . o r S t . f A i o n r . ) c e T l ( f a S o o b . r t A o c a e r . l ) Total Total E In m c u n p l o t l n u o a r y a g e l r d i 1 - In U pl n o e y m ed - U ( n pe e m r S r m a . e A t c p n e e . 2 l t ) n o t y ; 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—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 Sept.. 156,595 59,476 97,348 95,203 87,819 84,533 3,286 7,384 7.8 Oct 156,788 59,112 97,489 95,342 87,773 84,444 3,329 7,569 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) Period Total M t a u n r u in f g a c- Mining c C o o n t n i s o t t r r n a u c c t - Tr ti a p o n u n s b p a l o i n c r d ta - Trade Finance Service G m ov e e n r t n utilities 197 0 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 197 1 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 197 2 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 197 3 76,896 20,068 644 4,015 4,644 16,674 4,091 13,021 13,739 197 4 78,413 20,046 694 3,957 4,696 17,017 4,208 13,617 14,177 197 5 76,987 18,342 745 3,462 4,499 16,949 4,473 13,996 14,771 SEASONALLY ADJUSTED 1975—Oc t 77,555 18,493 774 3,402 4.476 17,043 4,246 14,157 14.964 Nov 77,574 18,482 766 3,409 4,496 17,010 4,248 14,188 14,975 Dec 77,796 18,568 769 3,406 4.477 17,080 4,264 14,229 15,003 1976—Ja n 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 79,176 18,933 788 3,373 4.500 17,567 4,303 14,623 15,089 Aug 79,333 18,979 752 3,352 4.501 17,603 4,312 14,709 15,125 Sept 79,567 19,122 795 3,337 4,507 17,612 4,343 14,768 15,083 Oct.* 79,513 18,976 804 3,357 4,492 17,625 4,372 14,788 15,099 NOT SEASONALLY ADJUSTED 1975—Oc t 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—Ja n 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 May 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 78,891 18,821 804 3,582 4,540 17,517 4,368 14,784 14,475 Aug 79,187 19,171 766 3,620 4,528 17,544 4,368 14,827 14,363 Sept 79,855 19,395 801 3,557 4,543 17,652 4,347 14,768 14,792 Oct.* 80,158 19,173 793 3,572 4,519 17,722 4,363 14,818 15,198 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 benchmark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • PRICES A53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent o H w s o h n m i e p e r - - F c a o o u n i a e l d l l tr e G a i l n c e a i c d s t - y o n F p i a n i u e n s g r h r d s a - - - A u p p a p k n a e d r e e p l T p t o r i a r o t n n a s - - 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 t a i c e i n n o r a g d n e d a - - g O s a i o e t c n o r h e v d d e s - r s tion 1929 5555511111.....33333 4444488888.....33333 7777766666.....00000 444888...555 1933 3333388888.....88888 3333300000.....66666 5555544444.....11111 333666...999 1941 4444444444.....11111 3333388888.....44444 555333...777 5555577777.....22222 40.5 81.4 444444...888 44.2 37.0 41.2 47.7 49.2 1945 5555533333.....99999 5555500000.....77777 555999...111 5555588888.....88888 48.0 7799..66 61.5 47.8 42.1 55.1 62.4 56.9 1960 8888888888.....77777 8888888888.....00000 999000...222 9999911111.....77777 86.3 89.2 9988..66 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 196 5 9999944444.....55555 9999944444.....44444 999444...999 9999966666.....99999 92.7 94.6 9999..44 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 196 6 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 196 7 .. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 196 9 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 197 0 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 197 1 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 197 2 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 197 3 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 197 4 147.7 161.7 150.6 130.6 163.2 214.6 145.8 140.5 136.2 . 137.7 140.3 150.5 137.3 133.8 137.2 197 5 161.2 175.4 166.8 137.3 181.7 235.3 169.6 158.1 142.3 150.6 153.5 168.6 150.7 144.4 147.4 1975—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 170.1 180.9 176.5 144.4 190.7 247.3 187.9 168.5 146.9 165.9 162.8 183.7 159.8 150.9 153.2 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 Aug. 171.9 182.4 178.4 145.6 193.4 249.3 190.3 169.1 148.1 168.5 164.4 186.8 161 .6 151 .4 153.8 Sept. 172.6 181.6 179.5 146.2 194.4 250.8 192.2 170.2 150.2 169.5 165.3 187.9 162.8 152.8 153.9 NOTE.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Procom- Farm cessed Ma- Non- Trans- Period m t o ie d s i - p u r c o t d s - f f o a e n o ed d d s s Total t T e il t e e c x s . - , H e i t d c e . s, F e u tc e . l , C ic e h a t e c l m s . , - R b 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 q a e h n r u i y n d ip - - F t u e u t r r c n e . , i - t e m m a r l i a e l n i l - c s - e p m t q o i e u o r n n i t p a t 1 - - n c M e e o l i l s u a - s ment 1960 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 196 5 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 196 6 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 196 9 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 197 0 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 197 1 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 197 2 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 197 3 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 197 4 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171 .9 139.4 127.9 153.2 125.5 133.1 197 5 174.9 186.7 182.6 171.5 137.9 148.5 245.1 181.3 150.2 176.9 170.4 185.9 161.4 139.7 174.0 141.5 147.7 1975—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 Sept. 184.7 191.8 177.1 184.7 149.0 173.6 270.9 188.5 163.6 212.7 181.6 200.0 172.9 146.5 188.2 151.0 153.9 Oct.. 185.2 186.6 174.9 186.3 149.3 170.8 277.0 188.4 164.5 213.6 181.4 199.9 174.2 147.0 189.1 156.0 154.1 i Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 NATIONAL PRODUCT AND INCOME • NOVEMBER 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1975 1976 IItteemm 11995500 11997700 11997722 11997733 11997744 11997755 III IV I II IIP Gross national product 286.2 982.4 1,171.1 1,306.6 1,413.2 1,516.3 1,548.7 1,588.2 1,636.2 1,675.2 1,709.7 Final purchases 279.4 978.6 1,161.7 1,288.6 1,402.5 1,531.0 1,550.6 1,592.5 1,621.4 1,659.2 1,695.4 Personal consumption expenditures 192.0 618.8 733.0 809.9 887.5 973.2 987.3 1,012.0 1,043.6 1,064.7 1,088.9 Durable goods 30.8 84.9 111.2 123.7 121.6 131.7 136.0 141.8 151.4 155.0 158.1 Nondurable goods 98.2 264.7 299.3 333.8 376.2 409.1 414.6 421.6 429.1 434.8 442.7 Services 63.0 269.1 322.4 352.3 389.6 432.4 436.7 448.6 463.2 474.9 488.1 Gross private domestic investment 53.8 140.8 188.3 220.0 215.0 183.7 196.7 201.4 229.6 239.2 245.5 Fixed investment 47.0 137.0 178.8 202.1 204.3 198.3 198.6 205.7 214.7 223.2 231.1 Nonresidential 27.1 100.5 116.8 136.0 149.2 147.1 146.1 148.7 153.4 157.9 162.5 Structures 9.3 37.7 42.5 49.0 54.1 52.0 51.8 52.1 53.2 54.9 55.6 Producers' durable equipment 17.8 62.8 74.3 87.0 95.1 95.1 94.3 96.6 100.2 103.0 106.8 Residential structures 19.9 36.6 62.0 66.1 55.1 51.2 52.6 57.0 61.3 65.3 68.7 Nonfarm 18.7 35.1 60.3 64.3 52.7 49.0 50.2 54.2 58.6 62.9 66.1 Change in business inventories 6.8 3.8 9.4 17.9 10.7 -14.6 -2.0 -4.3 14.8 16.0 14.4 Nonfarm 6.0 3.7 8.8 14.7 12.2 -17.6 -4.2 -9.5 12.7 17.3 15.4 Net exports of goods and services 1.9 3.9 -3.3 7.1 7.5 20.5 21.4 21.0 8.4 9.3 5.9 Exports 13.9 62.5 72.7 101.6 144.4 148.1 148.2 153.7 154.1 160.3 166.2 Imports 12.0 58.5 75.9 94.4 136.9 127.6 126.8 132.7 145.7 151.0 160.3 Government purchases of goods and services 38.5 218.9 253.1 269.5 303.3 339.0 343.2 353.8 354.7 362.0 369.5 Federal 18.7 95.6 102.1 102.2 111.6 124.4 124.6 130.4 129.2 131.2 134.4 National defense 14.0 73.5 73.5 73.5 77.3 84.3 84.6 87.1 86.2 c86.9 88.6 Other 4.7 22.1 28.6 28.7 34.3 40.1 40.0 43.2 42.9 44.2 45.7 State and local 19.8 123.2 151.0 167.3 191.6 214.5 218.6 223.4 225.5 230.9 235.1 Gross national product in 1972 dollars 533.5 1,075.3 1,171.1 1,235.0 1,214.0 1,191.7 1,209.3 1,219.2 1,246.3 1,260.0 1,272.2 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Survey of Current Business, Jan. 1976. NATIONAL INCOME (In billions of dollars) 1975 1976 IItteemm 11995500 11997700 11997722 11997733 11997744 11997755 III IV I II National income 236.2 798.4 951.9 1,064.6 1,135.7 1,207.6 1,233.4 1,264.6 1,304.7 1,337.4 Compensation of employees 154.8 609.2 715.1 799.2 875.8 928.8 935.2 963.1 994.4 1,017.2 1,037.3 Wages and salaries 147.0 546.5 633.8 701.2 764.5 806.7 811.7 836.4 861.5 881.1 897.7 Private 124.4 430.5 496.2 552.6 604.1 630.8 634.4 654.1 676.1 692.4 706.0 Government and govt, enterprises 22.6 116.0 137.6 148.6 160.4 175.8 177.3 182.2 185.4 188.7 191.7 Supplements to wages and salaries 7.8 62.7 81.4 98.0 111.3 122.1 123.5 126.7 132.9 136.2 139.6 Employer contributions for social insurance 4.2 30.7 39.4 49.3 55.8 59.7 60.2 61.6 65.9 67.1 68.6 Other labor income 3.7 32.0 42.0 48.7 55.5 62.5 63.3 65.2 67.1 69.0 71.1 Proprietors' income with inventory valuation and capital consumption adjustments 38.4 65.1 76.1 92.4 86.9 90.2 95.5 97.2 93.2 100.3 96.1 Business and professional 24.9 51.2 58.1 60.4 61.1 65.3 66.3 69.0 71.4 72.8 74.4 Farm 13.5 13.9 18.0 32.0 25.8 24.9 29.2 28.3 21.9 27.5 21.7 Rental income of persons with capital consumption adjustment 7.1 18.6 21.5 21.6 21.0 22.4 22.4 22.9 23.3 23.1 23.2 Corporate profits and inventory valuation adjustment and without capital consumption adjustment 37.6 66.4 89.6 97.2 87.8 103.1 117.9 119.1 129.6 131.8 Profits before tax 42.6 71.5 96.2 115.8 127.6 114.5 126.9 131.3 141.1 146.2 Profits tax liability 17.9 34.5 41.5 48.7 52.4 49.2 54.8 57.2 61.4 63.5 Profits after tax 24.7 37.0 54.6 67.1 75.2 65.3 72.1 74.1 79.7 82.7 Dividends 8.8 22.9 24.6 27.8 30.8 32.1 32.6 32.2 33.1 34.4 35.9 Undistributed profits 15.9 14.1 30.0 39.3 44.4 33.2 39.5 41.9 46.6 48.3 Inventory valuation adjustment -5.0 -5.1 -6.6 -18.6 -39.8 -11.4 -9.0 -12.3 -11.5 -14.4 -12.7 Capital consumption adjustment -4.0 1.5 2.5 1.9 -3.0 -11.6 -12.6 -13.5 -14.5 -15.4 -15.7 Net interest 2.3 37.5 47.0 52.3 67.1 74.6 74.9 75.8 78.6 80.3 83.1 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

NOVEMBER 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 III IV I II Illf Gross national product 286.2 982.4 1,171.1 1,306.6 1,413.2 1,516.3 1,548.7 1,588.2 1 ,636.2 1 ,675.2 1,707.9 Less: Capital consumption allowances with capital consumption adjustment 23.9 90.8 105.4 117.7 137.7 161.4 164.4 169.5 173.6 177.7 182.0 Indirect business tax and nontax liability 23.4 94.0 111.0 120.2 128.4 138.7 141.5 144.1 144.9 148.2 151.0 Business transfer payments .8 4.0 4.7 5.4 5.6 6.3 6.4 6.6 6.8 7.0 7.2 Statistical discrepancy 2.0 -2.1 1.7 2.6 6.6 4.4 5.1 6.1 7.2 5.8 Plus: Subsidies less current surplus of government enterprises .1 2.7 3.6 3.9 .8 2.0 2.1 2.7 .9 .7 1.1 Equals: National income 236.2 798.4 951.9 1,064.6 1,135.7 1,207.6 1,233.4 1,264.6 1 ,304.7 1 ,337.4 Less: Corporate profits with inventory valuation and capital consumption adjustments 33.7 67.9 92.1 99.1 84.8 91.6 105.3 105.6 115.1 116.4 Net interest 2.3 37.5 47.0 52.3 67.1 74.6 74.9 75.8 78.6 80.3 83.1 Contributions for social insurance 7.1 58.7 73.6 91.5 103.4 109.7 110.3 112.6 119.3 121.4 123.7 Wage accruals less disbursements. Plus: G Pe o r v s e o r n n a m l e in n t t e r t e r s a t n s in fe c r o m pa e y ments to persons. 1 8 4 . . 9 4 6 7 4 5 . . 3 9 9 7 9 4 . . 4 6 1 8 1 4 3 . . 1 5 1 1 3 0 4 1 . . 6 4 1 1 6 1 8 0 . . 9 7 1 1 7 1 2 1 . . 7 0 1 1 7 1 6 4 . . 0 4 1 1 8 1 1 8 . . 8 0 1 1 8 2 0 0 . . 6 7 1 1 8 2 5 4 . . 4 7 Dividends 8.8 22.9 24.6 27.8 30.8 32.1 32.6 32.2 33.1 34.4 35.9 Business transfer payments .8 4.0 4.7 5.4 5.6 6.3 6.4 6.6 6.8 7.0 7.2 Equals: Personal income 226.1 801.3 942.5 1,052.4 1,153.3 1,249.7 1,265.5 1,299.7 1,, 331.3 1 ,362.0 1,386.2 Less: Personal tax and nontax payments. 20.6 115.3 141.2 150.8 170.4 168.8 174.0 179.8 183.8 189.5 195.8 Equals: Disposable personal income 205.5 685.9 801.3 901.7 982.9 1,080.9 1,091.5 1,119.9 1 ,147.6 1 ,172.5 1,190.4 Less: Personal outlays 194.7 635.4 751.9 831.3 910.7 996.9 1,011.1 1,036.2 1,068.0 1,089.6 1,114.8 Personal consumption expenditures 192.0 618.8 733.0 809.9 887.5 973.2 987.3 1,012.0 1:, 043.6 1,064.7 1,088.9 Interest paid by consumer to business 2.3 15.5 17.9 20.2 22.2 22.8 22.8 23.3 23.4 23.9 24.8 Personal transfer payments to foreigners (Net) .4 1.1 1.0 1.3 1.0 .9 .9 .9 1.0 1.0 1.1 Equals: Personal saving 10.8 50.6 49.4 70.3 72.2 84.0 80.5 83.7 79.5 82.9 75.6 Disposable personal income in (1972) dollars. 361.9 741.6 801.3 854.7 840.8 855.5 857.1 867.5 880.4 890.5 892.5 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.? Total personal income 1153.3 1249.7 1277.1 1290.8 1300.2 1308.2 1320.8 1331.4 1341.9 1352.5 1362.9 1370.4 1380.8 1385.5 Wage and salary disbursements 765.0 806.7 819.1 828.5 836.6 844.0 854.2 861.4 868.8 876.9 883.3 883.1 892.7 Commodity-producing industries... 273.9 275.3 279. 282.9 285.7 288.6 292. 294.9 298.4 301.7 303.5 303.4 306.5 Manufacturing only 211 211.7 215.5 218.1 220.1 222.8 227.2 229.4 232.2 234. 235.8 236.2 238.0 Distributive industries 184.4 195.6 198.2 200.9 202.5 203.5 206.5 208.8 209.8 212.3 213.9 212.4 214.9 Service industries 145.9 159.9 162.4 163.6 166.0 168. 170.8 172.4 174.1 175.3 177.2 177.7 180.5 Government 160.9 175.8 178.8 181. 182.4 183.2 184.2 185.4 186.6 187.6 188.7 189.6 190.7 Other labor income 55.5 62.5 63.9 64.5 65.2 65.8 66.4 67.1 67.7 68.4 69.0 69.7 70.4 Proprietors' income with inventory valuation and capital consumption adjustments 86.9 90.2 96.4 97.5 97.1 97.2 95.2 92.4 92.2 96.0 100.0 105.0 98.8 Business and professional 61.1 65.3 67.0 68.3 68.7 69.9 70.6 71.3 72.2 72.7 72.5 73.4 73.8 Farm 25.8 24.9 29.4 29.2 28.4 27.3 24.6 21.1 20.0 23.3 27.5 31.6 26.0 Rental income of persons with capital consumption adjustment 21.0 22.4 22.4 22.9 22.9 22.9 23.2 23.4 23.3 23.3 23.4 22.7 23.4 Dividends 30.8 32.1 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 101.4 110.7 112.1 113.2 114.4 115.5 116.7 117.9 119.3 120.0 120.7 121.5 123.0 Transfer payments 140.3 175.2 180.7 182.1 182.1 183.4 185.3 189.2 191.3 188.7 187.1 186.8 191.3 Less: Personal contributions for social insurance 47.6 50.0 50.4 50.7 51.0 51.4 53.] 53.4 53.7 54.] 54.4 54.3 54.9 Nonagricultural income 1117.3 1213.4 1236.1 1249.9 1260.0 1269.1 1284.4 1298.6 1310.1 1317.3 1323.3 1326.6 1342.5 1351.8 Agricultural income 36.0 36.3 41.0 40.9 40.2 39.1 36.4 32.8 31.8 35.2 39.6 43.8 38.4 33.6 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 • NOVEMBER 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 83.9 98.3 93.5 100.7 151.0 176.9 197.6 188.8 210.4 184.2 236.5 242.0 1 2 Excluding equities 81.5 98.3 89.6 94.9 139.6 166.4 190.0 185.0 200.3 173.8 226.9 228.3 2 3 U.S. Government 13.0 13.6 -3.7 11.9 24.7 15.2 8.3 12.0 85.2 80.8 89.6 73.8 3 4 Public debt securities 8.9 10.5 -1.3 12.9 26.0 14.3 7.9 12.0 85.8 82.0 89.7 73.9 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 70.9 84.8 97.1 88.8 126.3 161.7 189.4 176.8 125.2 103.4 146.9 168.2 6 7 Corporate equities 2.4 * 3.9 5.8 11.5 10.5 7.7 3.8 10.0 10.5 9.6 13.7 7 8 Debt instruments 68.5 84.8 93.3 83.0 114.8 151.2 181.7 173.0 115.1 93.0 137.3 154.5 8 9 Private domestic nonfinancial sectors... 66.9 81.9 93.5 86.1 121.1 157.7 183.1 161.6 112.2 94.9 129.4 152.5 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 13.3 10 11 Debt instruments 64.5 82.1 90.1 80.4 109.7 146.8 175.3 157.5 102.3 84.6 119.9 139.2 11 12 Debt capital instruments 46.1 51.8 52.5 60.2 86.8 102.8 106.7 101.2 101.3 97.5 105.1 111.8 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 18.4 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 20.7 14 15 Home mortgages 13.4 17.3 18.1 14.4 28.6 42.6 46.4 34.6 40.8 33.5 48.1 54.4 15 16 Multifamily residential mortgages 3.6 3.4 4.9 6.9 9.7 12.7 10.4 7.0 -.1 * -.2 .9 16 17 Commercial mortgages 4.7 6.6 5.7 7.1 9.8 16.4 18.9 15.1 10.9 8.7 13.1 11.5 17 18 Farm mortgages 2.0 2.2 1.8 .8 2.4 3.6 5.5 5.1 5.2 5.6 4.8 5.9 18 19 Other debt instruments 18.4 30.2 37.6 20.1 22.8 44.0 68.6 56.3 1.0 -12.8 14.8 21A 19 20 Consumer credit 4.5 10.0 10.4 5.9 11.6 18.6 21.7 9.8 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 34.8 26.2 -14.5 -23.5 -5.5 -12.7 21 22 Open market paper 1.7 1.5 1.8 2.6 -.4 .8 2.5 6.8 -2.2 -.2 -4.2 8.1 22 23 Other 2.6 5.0 9.9 5.0 5.1 6.5 9.6 13.5 9.1 9.7 8.5 12.6 23 24 By borrowing sector 66.9 81.9 93.5 86.1 121.1 157.7 183.1 161.6 112.2 94.9 129.4 152.5 24 25 State and local governments 7.9 9.8 10.7 11.3 17.8 15.2 14.8 18.6 14.9 13.9 15.9 16.7 25 26 Households 22.4 32.1 33.8 25.3 42.1 64.8 73.5 45.2 49.7 39.0 60.4 72.8 26 27 Farm 3.3 2.8 3.1 2.3 4.5 5.8 9.7 7.9 9.4 9.4 9.4 11.0 27 28 Nonfarm noncorporate 4.4 5.3 7.5 5.7 10.3 13.1 12.3 6.7 1.2 -.8 3.2 5.2 28 29 Corporate 28.9 31.9 38.4 41.5 46.4 58.8 72.9 83.1 37.1 33.5 40.6 46.8 29 30 Foreign 4.0 2.8 3.7 2.7 5.2 4.0 6.2 15.3 13.0 8.5 17.4 15.7 30 31 Corporate equities .1 .2 .5 .1 * -.4 -.2 -.2 .1 .3 31 32 Debt instruments 4.0 2.7 3.2 2.7 5.2 4.4 6.4 15.5 12.8 8.4 17.3 15.3 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 3.7 34 35 Open market paper .5 -.2 .3 .8 .3 -1.0 .9 7.1 — 1 -1.2 1.0 .8 35 36 U.S. Government loans 2.6 2.2 2.1 1.3 1.8 1.5 1.7 1.6 2.8 3.3 2.2 3.2 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 10.8 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised 82.7 99.5 93.0 97.9 147.8 177.2 199.3 193.4 207.5 183.7 231.3 231.2 38 39 By U.S. Government 11.8 14.8 -4.1 9.1 21.6 15.5 9.9 16.6 82.3 80.3 84.4 63.0 39 Credit market funds raised by financial sectors 1 Total funds raised by financial sectors 2.0 17.2 35.2 15.8 17.0 29.1 56.7 43.0 14.8 15.1 14.6 29.7 1 2 U.S. Govt, related . 1 4.0 9.5 9.8 5.9 8.4 19.9 23.1 13.5 14.0 13.1 18.0 2 3 Sponsored credit agencies -.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 10.3 11.5 9.2 14.2 4 5 Loans from U.S. Government -.1 .2 -.3 .7 .9 11..11 6 * 5 6 Private financial sectors 2.0 13.2 25.8 6.0 11 1 20.7 36.8 19.9 1.3 11..11 1.4 11.7 6 7 Corporate equities 3.1 6.5 6.3 4.8 3.5 2.8 1.5 1.0 1.2 1.2 1.2 .7 7 8 -1.1 6.7 19.5 1.2 7.6 18.0 35.3 18.9 .1 * .3 11.0 8 9 Corporate bonds .1 .4 .8 2.1 3.8 5.1 3.5 2.1 2.9 3.2 2.6 6.1 9 10 Mortgages 1.0 .4 .2 .1 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 -2.8 11 12 Open market paper and RP's 1.8 3.4 12.9 -3.5 .9 4.4 11.8 3.9 2.8 7.6 -1.9 8.7 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 2.0 17.2 35.2 15.8 17.0 29.1 56.7 43.0 14.8 15.1 14.6 29.7 14 15 Sponsored credit agencies -.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 10.3 11.5 9.2 14.2 16 17 Private financial sectors 2.0 13.2 25.8 6.0 11.1 20.7 36.8 19.9 1.3 1.1 1.4 11.7 17 18 Commercial banks * .8 2.4 -2.0 2.4 4.8 8.1 -1.1 1.7 6.4 -3.0 11.3 18 19 Bank affiliates 4.3 --11..99 -.4 ..77 2.2 3 5 3 9 _ 3 — 1 3 19 20 Foreign banking agencies * . 1 .2 ..11 1.6 ..88 5.1 2^9 '.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 -.1 21 22 Other insurance companies .1 .2 .5 .4 .6 .5 .5 .9 .9 .9 1.0 1.0 22 23 Finance companies .6 3.9 7.8 2.6 2.7 6.2 9.4 4.5 .7 -.8 2.1 6.7 23 24 REIT's * 1.2 1.5 2.2 2.9 6.3 6.5 1.1 -1.9 -1.6 -2.2 -1.9 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 25 2266, Money market funds 22..44 11..33 22..66 ' # --..77 2266 Total credit market funds raised, all sectors, by type 85.9 115.5 128.7 116.4 168.1 206.0 254.3 231.8 225.2 199.4 251.1 271.7 1 2 3.0 5.9 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .1 -1.1 2 3 Other corporate equities 2.5 .6 5.2 7.7 13.7 13.8 10.4 5.4 10.4 10.2 10.7 15.4 3 4 Debt instruments 80.4 109.0 118.6 105.9 153.1 192.8 245.2 227.0 214.0 187.7 240.3 257.4 4 5 U.S. Government securities 13.2 17.4 6.2 21.7 30.7 23.7 28.3 34.5 98.0 93.6 102.4 91.8 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 18.4 6 7 Corporate and foreign bonds 16.6 14.4 13.8 23.3 23.5 18.4 13.6 23.9 36.3 42.3 30.3 34.4 7 8 Mortgages 24.6 29.8 30.7 29.9 52.5 76.8 79.9 60.5 59.0 49.1 69.0 74.1 8 9 Consumer credit 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 -14.4 -27.6 -1.2 -11.8 10 11 Open market paper and RP's 3.9 4.8 15.1 -.1 .8 4.1 15.2 17.8 .5 6.2 -5.1 17.7 11 12 Other loans 2.5 8.3 15.8 7.7 4.2 8.0 18.5 22.5 8.7 6.8 10.7 13.5 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

NOVEMBER 1976 • FLOW OF FUNDS A57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 1976 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1967 1968 1969 1970 1971 1972 1973 1974 1975 HHII H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 81.5 98.3 89.6 94.9 139.6 166.4 190.0 185.0 200.3 173.8 226.9 228.3 1 By public agencies and foreign ?. Total net advances 12.0 13.0 16.5 29.2 43.4 19.8 3344..22 5522..77 4444..22 5511..99 3366..66 52.6 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 26.9 3 4 Residential mortgages 2.6 3.3 5.1 6.5 7.0 7.0 8.2 14.7 16.2 15.9 16.5 11.1 4 5 FHLB advances to S&L's -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 19.5 9.5 10.6 8.3 16.9 6 Totals advanced, by sector 7 4.7 5.2 3.1 2.8 2.8 1.8 22..88 9.8 1155..11 1144..99 1155..22 5.9 7 8 Sponsored credit agencies .6 3.8 9.4 11.1 5.2 9.2 21.4 25.6 14.5 15.9 13.2 20.0 8 9 4.8 3.7 4.2 5.0 8.9 .3 9.2 6.2 8.5 7.0 10.1 13.7 9 10 2.0 .3 -.3 10.3 26.4 8.4 .7 11.2 6.1 14.2 -2.0 13.0 10 11 Agency borrowing not included in line 1 4.0 9.5 9.8 5.9 8.4 19.9 23.1 13.5 14.0 13.1 18.0 11 -1 Private domestic funds advanced 12 69.5 89.3 82.5 75.5 102.1 155.0 175.7 155.3 169.6 135.9 203.4 193.8 12 13 U.S. Government securities * 6.3 14.1 5.6 6.6 -3.7 16.1 18.7 22.6 75.5 61.0 90.0 64.9 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 18.4 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 27.3 15 16 Residential mortgages 14.4 17.3 17.9 14.7 31.2 48.1 48.5 26.9 24.4 17.7 31.1 44.3 16 17 Other mortgages and loans 22.4 35.5 40.7 24.3 35.0 62.3 89.3 71.9 15.7 -5.2 36.5 36.6 17 18 Less: FHLB advances -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 63.4 75.5 57.4 77.0 109.7 149.4 163.8 126.2 116.0 97.7 134.3 139.2 19 20 Commercial banks 35.8 38.7 18.6 35.0 50.6 70.5 86.5 64.6 27.6 13.5 41.7 22.1 20 21 Savings institutions 15.0 15.4 14.6 17.4 39.1 47.2 36.0 27.0 51.0 49.8 52.2 68.0 21 22 Insurance and pension funds 12.9 13.8 13.3 17.1 14.2 17.8 23.8 30.1 39.3 36.4 42.3 43.9 22 23 -.3 7.6 10.8 7.5 5.9 13.8 17.4 4.5 -1.8 -1.9 -1.8 5.1 23 24 Sources off unds 63.4 75.5 57.4 77.0 109.7 149.4 163.8 126.2 116.0 97.7 134.3 139.2 24 25 Private domestic deposits 49.8 45.9 2.3 60.7 89.4 100.9 86.4 69.4 90.5 90.3 90.6 90.9 25 26 Credit market borrowing -1.1 6.7 19.5 1.2 7.6 18.0 35.3 18.9 * .3 11.0 26 -1 27 Other sources 14.7 22.9 35.6 15.1 12.6 30.5 42.1 37.8 25.4 7.4 43.4 37.3 27 28 Foreign funds 2.3 2.6 9.6 -8.1 -3.9 5.3 6.9 14.5 -.4 -5.7 5.0 —. 1 28 29 Treasury balances .2 -.2 * 2.9 2.2 .7 -1.0 -5.1 -1.7 -3.5 . 1 3.5 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 32.7 30 31 Other, net .8 9.1 15.1 7.1 5.7 12.8 17.8 2.4 -2.4 -10.8 5.9 1.2 31 Private domestic nonfinancial investors 32 Direct lending in credit markets 4.9 20.5 44.6 -.3 * 23.6 47.2 48.0 53.7 38.1 69.4 65.6 32 33 U.S. Government securities -1.1 8.6 17.5 -7.1 -10.8 4.2 19.4 17.9 23.0 5.0 41.0 29.5 33 34 State and local obligations -2.6 —. 1 8.2 -1.3 .5 3.1 7.5 12.2 9.9 10.3 9.6 7.7 34 35 Corporate and foreign bonds 4.0 4.2 5.4 9.5 8.3 4.2 .9 5.3 10.4 13.6 7.2 6.0 35 36 Commercial paper 1.8 4.2 10.0 -5.1 -1.1 3.0 12.5 4.6 3.1 3.5 2.7 10.2 36 37 Other 2.8 3.6 3.6 3.7 3.2 9.1 6.9 8.1 7.3 5.6 8.9 12.2 37 38 Deposits and currency 51.8 48.5 5.1 64.2 92.8 105.3 90.3 75.7 96.7 95.7 97.7 95.1 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 94.7 82.3 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 -23.5 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 39.9 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 66.0 42 43 Money 13.0 14.8 7.3 8.9 13.7 21.6 14.1 8.3 11.9 20.7 3.0 12.7 43 44 Demand deposits 11.0 12.3 4.5 5.4 10.4 17.2 10.2 2.0 5.7 15.3 -4.0 8.5 44 45 Currency 2.0 2.5 2.8 3.5 3.4 4.4 3.9 6.3 6.2 5.4 7.1 4.2 45 46 Total of credit market instr., deposits, and currency. 56.8 69.0 49.8 63.9 92.9 129.0 137.5 123.7 150.4 133.8 167.1 160.7 46 47 Private support rate (in per cent) 14.8 13.2 18.4 30.7 31.1 11.9 18.0 28.5 22.1 29.9 16.1 23.0 47 48 Private financial intermediation (in per cent).... 91.2 84.6 69.5 102.0 107.4 96.4 93.2 81.2 68.4 71.9 66.0 71.8 48 49 Total foreign funds 4.3 2.9 9.4 2.2 22.5 13.7 7.6 25.7 5.7 8.5 3.0 13.0 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 11.2 11.7 10.8 14.3 1 2 Mutual fund shares 3.0 5.9 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 . 1 -1.1 2 3 Other equities 2.5 .6 5.2 7.7 13.7 13.8 10.4 5.4 10.4 10.2 10.7 15.4 3 4 Acquisitions by financial institutions 9.1 10.9 13.0 10.6 17.8 15.3 13.3 5.5 8.3 9.2 7.4 11.7 4 5 Other net purchases -3.5 -4.4 -2.9 -2.9 -2.1 -4.1 -.7 2.9 2.4 3.4 2.6 5 "-1 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 affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 U.S. INTERNATIONAL TRANSACTIONS • NOVEMBER 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 IIP III IV Merchandise exports 71,410 98,310 107,088 25,851 26,562 27,657 26,836 28,450 Merchandise imports 70,499 103,679 98,058 22,568 24,483 25,437 28,510 29,735 Merchandise trade balance 2. 911 -5,369 9,030 3,283 2,079 2,220 -1,674 -1,285 Military transactions, net -2,287 -2,083 -883 -378 -115 12 -5 -13 Investment income, net 5,178 10,227 6,007 1,531 1,682 1,670 2,279 2,157 Other service transactions, net. 102 812 2,163 648 619 455 458 715 Balance on goods and services • 3,905 3,586 16,316 5,084 4,265 4,357 1,058 1,574 8 Unilateral transfers -3,883 -7,185 -4,620 -1,146 -1,044 -1,251 -1,118 -872 9 Remittances, pensions, and other transfers .. -1,945 -1,710 -1,727 -434 -429 -433 -483 -441 10 U.S. Government grants (excluding military). -1,938 -5,475 -2,893 -712 -615 -818 -635 -431 11 Balance on current account. 22 -3,598 11,697 3,938 3,221 3,106 -60 702 12 Not seasonally adjusted. . 3,934 513 4,305 1,479 625 13 U.S. Govt, capital transactions, other than official reserve assets, net (outflow,—) -1,492 1,089 -1,731 -422 -401 -453 798 -234 14 Change in U.S. official reserve assets (increase,—). 209 -1,434 -607 -29 -342 89 -773 -1,578 1 1 5 6 S G D o R ld ' . s 9 -172 -66 -16 -25 -21 -45 14 17 Reserve position in IMF. -33 -1,265 -466 -7 -95 -57 -237 -798 18 Foreign currencies 233 3 -75 -6 -222 167 -491 -794 19 Change in U.S. private assets abroad (increase,—)... -13,998 -32,323 -27,523 -7,074 -3,297 -10,375 -8,615 -6,228 20 Bank-reported claims -5,980 -19,494 -13,487 -3,820 -617 -5,348 -3,582 -4,665 21 Long-term -933 -1,183 -2,373 -381 -608 -943 -250 -338 22 Short-term -5,047 -18,311 -11,114 -3,439 -9 -4,405 -3,332 -4,327 23 Nonbank-reported claims -2,378 -3,221 -1,521 59 -972 -972 -751 -579 24 Long-term -396 -474 -441 55 -139 -379 -187 233 25 Short-term -1,982 -2,747 -1,081 4 -833 -593 -564 -812 26 U.S. purchase of foreign securities, net -671 -1,854 -6,206 -979 -938 -2,361 -2,525 -1,448 27 U.S. direct investments abroad, net -4.968 -7,753 -6,307 -2,334 -770 -1,694 -1,757 463 28 Change in foreign official assets in the United States (increase,+). 5,145 10,257 5,166 1,913 -1,977 2,272 2,460 3,162 29 U.S. Treasury securities 114 3,282 4,338 818 -2,847 1,069 1,998 2,151 30 Other U.S. Govt, obligations 582 902 891 65 25 307 68 316 31 Other U.S. liabilities reported by U.S. banks 4,126 5,818 -2,158 591 320 134 -275 4 32 Other foreign official assets 323 254 2,095 439 525 762 669 691 33 Change in foreign private assets in the United States (increase,+). 12,220 21,452 8,427 1,576 4,313 3,103 1,454 3,197 34 U.S. bank-reported liabilities 4,702 16,017 647 776 1,639 691 675 3,586 35 Long-term 227 9 -300 -287 -114 146 -91 23 36 Short-term 4,475 16,008 947 1,063 1,753 545 766 3,563 37 U.S. nonbank-reported liabilities 1,035 1,615 171 58 -141 -68 24 -479 38 Long-term 298 -212 345 77 -99 10 -332 -308 39 Short-term 737 1,827 -174 -19 -42 -78 356 -171 4 4 4 0 2 1 F F F o o o r r r e e e i i i g g g n n n p p di u r r i r e v c c a h t t a e i s n p e v s u e r s o c t f m h o a e t s n h e t e s s r o i U f n . U t S h . . S e s . e U T c n u r i r e t i a e t s d i u e s r S , y t n a s t e e e t c s u , r n i e ti t e s, net.... 4 2 - , , 2 0 6 1 4 5 4 1 6 2,7 6 3 4 9 7 5 7 8 2 2 2 , , , 5 6 4 0 6 3 5 7 7 -4 7 3 2 8 8 3 0 5 2, - 1 7 4 2 3 8 5 8 1 1, , 2 0 2 2 3 1 9 8 3 1 -7 ,0 4 2 3 5 8 0 3 -5 5 1 8 4 3 6 7 0 43 Allocations of SDR's 44 Discrepancy -2,107 4,557 4,570 98 -1,517 2,258 4,736 979 45 Owing to seasonal adjustments -39 -2,561 1,275 1,348 -108 46 Statistical discrepancy in recorded data before seasonal adjustment -2,107 4,557 4,570 137 1,044 983 3,388 1,087 Memoranda: Changes in official assets: U.S. official reserve assets (increase,—) 209 -1,434 -607 -29 -342 89 -773 -1,578 Foreign official assets in the U.S. (increase,-}-) 5,145 10,257 5,166 1,913 -1,977 2,272 2,460 3,162 Transfers under military grant programs (excluded from lines 1, 4, and 10 above) 2,809 1,817 2,232 1,202 56 177 50 95 1 Seasonal factors are no longer calculated for capital transactions— excludes special military sales from exports and U.S. Govt, interest paylines 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

NOVEMBER 1976 • FOREIGN TRADE; U.S. RESERVE ASSETS A59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports ] 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 9,688 6,011 9,267 7,877 10,446 +32 -888 + 1,103 -758 Sept.. 6,420 8,399 9,104 9,872 5,644 8,696 8,196 10,651 +776 -297 +908 -779 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 II.... 16,783 24,077 25,586 28,688 16,839 24,867 22,325 28,872 -56 -790 +3,261 -184 III... 18,327 25,085 26,955 29,582 17,483 26,885 23,904 31,946 +844 -1,800 +3,051 -2,364 IV... 20,413 26,508 27,885 18,972 27,003 24,892 + 1,441 -495 +2,993 Year 4.. 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 beactions value basis; prior data are reported on a Customs import value cause of rounding. 3. U.S. RESERVE ASSETS (In millions of dollars) EE yy nn ee dd aa rr oo ff Total To G ta o l2 l d st T o r c e k a 1 s ury v c fo u e C c r r r o i t e r e i n i e b s g n - l n e - pp RR oo II ee ss MM ss ii ii nn ee tt FF rr ii oo vv nn ee SDR's 3 E m n o d n t o h f Total Tot G al o 2 l d s T to r c e k as ury v c fo e u C c r r r o i t e r e i n i e b s g n - l n e - p R o I e s M s i i n e t F r i o v n e SDR's 3 1961... 18,753 16,947 16,889 116 1,690 1975— 1962... 17,220 16,057 15,978 99 1,064 Oct 16,569 11,599 11,599 413 2,192 2,365 1963... 16,843 15,596 15,513 212 1,035 Nov 16,592 11,599 11,599 423 2,234 2,336 1964... 16,672 15,471 15,388 432 769 Dec.. 16,226 11,599 11,599 80 2,212 2,335 1965... 15,450 13,806 13,733 781 863 1976— 1966... 14,882 13,235 13,159 1,321 326 Jan 16,622 11,599 11,599 333 2,314 2,376 1967... 14,830 12,065 11,982 2,345 420 Feb 16,661 11,599 11,599 296 2,390 2,376 1968... 15,710 10,892 10,367 3,528 1,290 Mar 16,941 11,599 11,599 571 2,420 2,351 1969... 416,964 11,859 10,367 42,781 2,324 Apr 17,437 11,598 11,598 936 2,578 2,325 May. ... 17,958 11,598 11,598 938 3,113 2,309 1970... 14,487 11,072 10,732 629 1,935 851 June 18,477 11,598 11,598 1,365 3,198 2,316 1971... 512,167 10,206 10,132 5 276 585 1,100 July.... 18,246 11,598 11,598 864 3,466 2,318 1972«. . 13,151 10,487 10,410 241 465 1,958 Aug 18,586 11,598 11,598 845 3,818 2,325 19737. . 14,378 11,652 11,567 8 552 2,166 Sept 18,945 11,598 11,598 1,038 3,952 2,357 1974. . . 15,883 11,652 11,652 5 1,852 2,374 Oct 819,013 11,598 11,598 1,066 8 3,997 82,352 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 valuamark 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 October amounted to $2,453 million, reserve position in IMF, $4,087 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $19,204. 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 • NOVEMBER 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—Oct.. 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Nov., 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Dec.. 49,740 6,478 11,599 31,665 231 169 312 882 1,781 927 97 76 103 1976—Jan.... 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Feb.... 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Mar.. . 49,490 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 3i'520 231 169 312 882 1,781 916 98 76 103 July... 6,412 11,598 231 169 312 882 1,781 916 98 76 Aug.. . 6,412 11 ,598 231 312 882 1,781 916 98 76 Sept.?. 6,379 11,598 231 312 882 1,781 913 76 End of France Ger- Greece India Iran Iraq Italy Japan Kuwait Leb- Libya Mexi- Netherperiod many anon lands 197 0 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 197 1 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 197 2 3,826 4,459 133 264 142 156 3,130 80: 94 350 93 188 2,059 197 3 4.261 4,966 148 293 159 173 3,483 89 120 388 103 196 2,294 197 4 4.262 4,966 152 293 158 173 3,483 89 148 389 103 154 2,294 1975—Oct... 4,262 4,966 153 293 158 173 3,483 89 160 389 103 154 2,294 Nov.. 4,262 4,966 153 293 158 173 3,483 89 160 389 103 154 2,294 Dec... 4,262 4,966 153 293 158 173 3,483 89 169 389 103 154 2,294 1976—Jan... 4,262 4,966 153 293 158 173 3,483 89 169 389 103 152 2,294 Feb.., 4,262 4,966 153 293 158 173 3,483 89 176 103 152 2,294 Mar.. 4,262 4,966 153 293 158 173 3,483 89 176 103 152 2,294 Apr.. 4,262 4,966 153 293 158 173 3,483 89 183 103 2,294 May. , 4.262 4,966 153 293 158 173 3,483 89 214 103 2,294 June., 4.263 4,966 153 293 158 173 3,483 89 192 103 2,294 July.. 4,266 4,966 154 293 158 173 3,483 89 192 103 2,294 Aug.. 4,266 4,966 154 158 173 3,483 89 192 103 2,294 Sept.2' 4,266 4,966 154 158 3,483 89 192 103 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 Settlements 2 1970 54 902 119 666 498 200 2,732 82 126 1,348 162 384 -282 1971 55 921 108 410 498 200 2,909 82 130 777 148 391 310 1972 60 1,021 117 681 541 217 3,158 89 136 801 133 425 218 1973 67 1,163 129 802 602 244 3,513 99 151 887 148 472 235 1974 67 1,175 129 771 602 244 3,513 99 151 888 148 472 250 1975—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 99 151 888 135 472 231 May 69 1,170 129 538 602 244 3,513 99 151 888 135 472 245 June 69 1,170 129 540 602 244 3,514 99 151 888 135 472 290 July 69 129 540 602 244 3,514 99 151 113355 472 298 Aug 69 129 544 602 244 3,516 99 151 472 308 Sept.® 6699 112299 554411 224444 33,,551166 9999 115511 447722 228800 1 Includes reported or estimated gold holdings of international and the Bank's gold assets net of gold deposit liabilities. This procedure regional organizations, central banks and govts, of countries listed in avoids the overstatement of total world gold reserves since most of the this table, and also of a number not shown separately here, and gold to be gold deposited with the BIS is included in the gold reserves of individual distributed by the Tripartite Commission for the Restitution of Monetary countries. Gold; excludes holdings of the U.S.S.R., other Eastern European coun- 2 Net gold assets of BIS, i.e., gold assets minus gold deposit liabilities. tries, and People's Republic of China. 3 Reflects South African Reserve Bank sale of gold spot and repurchase The figures included for the Bank for International Settlements are forward. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A61 5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liquid Liquid Official institutions2 Liquid liabilities to other liabililiabili- foreigners ties to ties to non- IMF Liquid monearising Short- liabili- Short- tary from term Market- Non- Other ties term Market- intl. gold liabili- able market- readily to com- liabili- able and retrans- 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. organiby bonds bonds liabili- abroad6 by bonds zations 8 ba i n n k s n a o n te d s 3 n a o n te d s 4 ties5 ba i n n k s no a te n s d 3 ,7 U.S. U.S. 29,364 800 15,786 13,220 1,125 1,283 158 7,303 3,753 3,377 376 1,722 29,568 834 15,825 13,066 1,105 1,534 120 7,419 4,059 3,587 472 1,431 (31,144 1,011 14,840 12,484 860 583 913 10,116 4.271 3.743 528 906 [31,019 1,011 14,895 12,539 860 583 913 9,936 4.272 3.744 528 905 J35,819 1,033 18,201 14,034 908 1,452 1,807 11,209 4,685 4,127 558 691 \35,667 1,033 18,194 14,027 908 1,452 1,807 11,085 4,678 4,120 558 677 J38,687 1,030 17,407 11,318 529 3,219 2,341 14,472 5,053 4,444 609 725 \38,473 1,030 17,340 11,318 462 3,219 2,341 14,472 4,909 4,444 465 722 •0/45,755 1,109 1015,975 11,054 346 10 3,070 1,505 23,638 4,464 3,939 525 659 145,914 1,019 15,998 11,077 346 3,070 1,505 23,645 4,589 4,064 525 663 J47,009 566 23,786 19,333 306 3,452 695 17,137 4,676 4,029 647 844 146,960 566 23,775 19,333 295 3,452 695 17,169 4,604 4,039 565 846 J67,681 544 51,209 39,679 1,955 9,431 144 10,262 4,138 3,691 447 1,528 167,808 544 50,651 39,018 1,955 9,534 144 10,949 4,141 3,694 447 1,523 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 92,490 66,861 1243,923 5,701 i215,564 1,673 17,694 5,932 5,502 430 2,003 fll9,240 76,801 53,057 5,059 16,339 2,346 30,314 8,803 8,305 498 3,322 119,204 76,823 53,079 5,059 16,339 2,346 30,146 8,913 8,415 498 3,322 123,944 78,762 48,594 6,472 19,666 4,030 30,360 9,854 9,153 701 4,968 127,204 80,676 50,111 6,644 19,666 4,255 28,527 9,971 9,232 739 4,921 127,204 80,198 49,634 6,485 19,726 4,353 32,266 10,200 9,490 710 4,540 126,589 80,650 49,513 6,640 19,976 4,521 29,556 10,759 10,028 731 5,624 128,192 81,198 49,487 6,851 20,051 4,809 30,964 10,504 9,766 738 5,526 131,837 82,326 50,429 7,027 20,051 4,819 33,149 10,808 10,060 748 5,554 129,720 82,561 49,634 7,757 20,051 5,119 30,512 10,922 10,118 804 5,725 136,709 84,205 50,538 8,187 20,151 5,329 35,256 11,579 10,758 821 5,669 139,121 85,630 51,606 8,450 20,151 5,423 36,476 11,361 10,557 804 5,654 135,229 85,129 50,023 9,167 20,251 5,688 32,654 11,504 10,646 858 5,942 139,163 85,866 50,474 9,461 20,151 5,780 34,743 11,821 10,932 889 6,733 138,754 86,678 51,242 9,781 19,801 5,854 32,828 12,203 11,238 965 7,045 141,096 86,016 49,651 10,746 19,803 5,816 34,941 12,398 11,473 925 7,741 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. 1 Includes marketable U.S. Treasury bonds and notes held by commer- NOTE.—Based on Treasury Dept. data and on data reported to the cial banks abroad. Treasury Dept. by banks and brokers in the United States. Table excludes 8 Principally the International Bank for Reconstruction and Develop- IMF holdings of dollars, and U.S. Treasury letters of credit and nonment and the Inter-American and Asian Development Banks. negotiable, non-interest-bearing special U.S. notes held by other inter- 9 Data on the 2 lines shown for this date differ because of changes national and regional organizations. in reporting coverage. Figures on first line are comparable with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1976 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe1 American countries2 End of period countries Canada republics Asia Africa 197 2 61,526 34,197 4,279 1,733 17,577 777 2,963 197 3 66,861 45,764 3,853 2,544 10,887 788 3,025 J76,801 44,328 3,662 4,419 18,604 3,161 2,627 1974—Dec. 3 \76,823 44,328 3.662 4,419 18,626 3,161 2,627 1975—Sept... 78,762 43,858 3,003 4,840 21,153 3,145 2,763 Oct... 80,676 45,354 3,044 4,254 22,406 3,018 2,600 Nov... 80,198 45,095 3,218 4,056 22,263 2,951 2,615 Dec... 80,650 45,676 3,132 4,448 22,514 2,983 1.897 1976—Jan.. . 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... 82,561 45,583 3.663 3,779 26,911 2,718 1,907 Apr... 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.. 85,130 42,425 3,578 4,104 29,879 3,245 1.898 July.. 85,866 42,308 3,410 4,000 30,949 3,134 2,065 Aug.P. 86,678 41,494 3,230 4.378 32,582 3,098 1,896 Sept.*. 86,016 41,545 3.417 4,289 32,382 2,759 1,624 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 nonpean dependencies in Latin America. marketable notes issued to foreign official nonreserve agencies; and in- 3 See note 9 to Table 5. vestments by foreign official reserve agencies in debt securities of U.S. Federally sponsored agencies and U.S. corporations. NOTE.—Data represent short- and long-term liabilities to the official 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 5 IMF Payable in dollars gold Deposits Payable invest- U.S. End of period in ment Treasury Total i Deposits U.S. Other foreign Total bills and Treasury short- cur- certifi- Total bills and term rencies Demand Time2 cates Demand Time2 certifi- liab.4 cates 3 60,696 60,200 8,290 5,603 31,850 14,457 496 1,412 86 202 326 69,074 68,477 11,310 6,882 31,886 18,399 597 1,955 101 83 296 94,811 94,044 14,051 9,932 35,662 34,399 766 3,171 139 111 497 93,008 92,454 13,402 10,170 36,653 32,230 554 4,901 107 127 3,008 92,453 91,818 12,128 10,259 37,728 31,702 635 4,583 132 150 2,397 95,861 95,221 12,810 10,076 37,268 35,068 637 4,471 145 156 1,605 94,390 93,833 13,564 10,348 37,414 32,506 549 5,293 139 148 2,554 95,151 94,542 12,271 10,483 38,789 32,998 600 4,933 114 217 2,498 98,159 97,505 13,350 10,222 39,763 34,169 642 4,520 118 162 2,435 95,033 94,462 13,091 10,488 37,977 32,907 565 4,768 130 192 2,495 102,070 101,303 14,244 10,235 39,430 37,394 763 5,519 140 193 2,739 104,151 103,419 13,846 10,104 40,258 39,211 727 5,512 91 185 2,876 98,688 97,997 14,135 9,973 38,257 35,632 687 5,360 258 160 2,236 101,820 101,147 14,714 10,259 39,632 36,541 667 5,671 483 192 3,129 100,957 100,288 14,198 10,212 40,964 34,914 661 5,641 379 148 3,475 102,031 101,329 15,219 10,626 40,119 35,365 697 5,962 331 151 4,031 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A63 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable in Total Deposits U.S. Other foreign Total Deposits U.S. Other Treasury short- cur- Treasury shortbills and term rencies bills and term Demand Time2 certifi- liab.4 Demand Time2 certifi- liab.« cates3 cates3 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 J91,676 13,928 9,995 35,165 31,822 766 53,057 2,951 4,257 34,656 11,066 \91,640 13,912 9,821 35,165 31,975 766 53,079 2,951 4,167 34,656 11,178 88,107 13,295 10,043 33,645 30,571 554 48,594 2.444 3,886 33,339 8,925 87,870 11,996 10,109 35,330 29,800 635 50,111 2,448 3,877 35,004 8,782 91,390 12,665 9,920 35,663 32,506 637 49,634 2,242 3,579 35,242 8,571 89,097 13,426 10,200 34,860 30,063 549 49,513 2,644 3,423 34,182 9,264 90,217 12,158 10,266 36,291 30,903 600 49,487 2.445 3,291 35,645 8,106 93,638 13,233 10,060 37,328 32,376 642 50,429 2,695 2,908 36,761 8,066 90,264 12,962 10,296 35,482 30,959 565 49,634 2,671 2,767 34,989 9,207 96,551 14,104 10,042 36,691 34,951 763 50,538 2,782 2,319 36,196 9,241 98,638 13,755 9,919 37,382 36,855 727 51,606 2,799 2,400 36,859 9,547 93,323 13,877 9,813 36,021 32,925 687 50,023 2,632 2,392 35,532 9,468 96,149 14,231 10,067 36,504 34,680 667 50,474 2,932 2,251 36,016 9,275 95,308 13,819 10,064 37,489 33,275 661 51,242 2,380 2,226 36,974 9,663 96,065 14,888 10,476 36,088 33,916 697 49,651 2,548 2,144 35,653 9,307 To banks9 To other foreigners Payable in dollars Total Deposits U.S. Other Deposits U.S. Other Treasury short- Treasury short- Total bills and term Total bills and term Demand Time2 certifi- liab.4 Demand Time2 certifi- liab.6 cates cates 23,196 17,224 6,941 529 9,743 5,502 2,143 2,359 68 933 /38,619 29,676 8,248 1,942 232 19,254 8,304 2,729 3.796 277 1,502 \38,560 29,507 8,231 1,910 232 19,134 8,414 2,729 3,744 277 1,664 39,513 29,806 7,962 1,656 89 20,099 9,153 2,889 4,501 217 1,547 37,759 27,891 6,780 1,565 100 19,446 9,232 2,769 4,666 226 1,572 41,756 31,630 7,584 1,544 135 22,367 9,490 2,839 4.797 287 1,568 39,584 29,006 7,534 1,942 335 19,195 10,029 3,248 4,835 342 1,604 40,730 30,364 6,809 1,979 369 21,208 9,766 2,904 4,996 277 1,588 43,209 32,507 7,418 2,036 275 22,777 10,060 3,120 5,116 293 1,532 40,630 29,947 7,248 2,268 217 20,215 10,118 3,044 5,261 276 1,538 46,014 34,493 7,883 2,317 134 24,160 10,757 3,439 5,406 361 1,551 47,033 35,749 7,737 2,092 151 25,769 10,557 3,219 5,427 372 1,538 43,300 31,967 8,100 1,882 154 21,831 10,647 3,146 5,539 335 1,626 45,675 34,076 7,992 2,275 155 23,654 10,932 3,307 5,541 333 1,751 44,066 32,167 7,934 2,206 162 21,865 11,238 3,505 5,632 353 1,747 46,413 34,244 8,667 2,551 176 22,850 11,472 3,674 5,780 259 1,759 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. • NOVEMBER 1976 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1974 1975 1976 Area and country Dec.1 Dec. Jan. Feb. Mar. Apr. May June July Aug.? Europe: Austria 607 607 754 749 715 581 585 577 549 589 412 Belgium-Luxembourg 2,506 2,506 2,898 2,678 2,440 2,395 2,332 2,213 2,336 1,977 1,976 Denmark 369 369 332 375 434 678 681 649 452 322 440 Finland 266 266 391 309 313 334 350 403 405 446 435 France 4,287 4,287 7,733 7,499 6,480 6,210 4,856 4,529 4,776 4,408 4,214 Germany 9,420 9,429 4,357 3,823 4,468 4,195 5,830 5,206 4,932 4,961 4,738 Greece 248 248 284 263 340 261 289 299 346 361 350 Italy 2,617 2,617 1,112 1,052 1,044 1,338 1,504 1,418 1,560 2,263 2,641 Netherlands 3,234 3,234 3,411 3,409 3,828 3,397 3,281 3,111 2,256 2,182 2,189 Norway 1,040 1,040 996 888 925 798 915 797 807 900 684 Portugal 310 310 195 243 221 209 213 189 196 250 257 Spain 382 382 426 445 400 386 462 392 446 416 419 Sweden 1,138 1,138 2,286 2,266 2,312 2,287 2,352 2,437 2,435 2,384 2,227 S T w ur it k z e e y r land 9,9 1 8 5 6 2 10,1 1 3 5 9 2 8,5 1 1 1 4 8 8,61 8 1 8 8,6 1 4 0 8 4 8,8 1 5 0 4 6 8,9 1 6 1 5 3 9,1 1 2 0 9 1 10,12 9 5 5 9,55 8 1 0 9,2 1 5 0 0 0 Y U u n g it o e s d l a K vi i a n gdom 7,5 1 5 8 9 3 7,5 1 8 8 4 3 6,8 1 8 2 6 6 7,60 8 6 3 8,2 1 3 7 1 8 6,7 2 2 2 6 2 6,5 1 8 7 9 9 7,0 1 9 7 6 4 6,4 1 3 8 0 2 6,2 1 8 2 9 8 6,1 1 3 4 9 2 Other Western Europe2 4,073 4,073 2,970 2,313 2,116 2,144 2,002 2,250 2,079 2,150 2,130 U.S.S.R 82 82 40 45 43 38 34 45 40 35 34 Other Eastern Europe 206 206 200 160 201 159 161 153 188 209 215 Total 48,667 48,853 44,028 42,906 43,441 41,320 41,692 41,168 40,587 39,899 38,990 Canada 3,517 3,520 3,076 3,885 4,721 4,126 4,173 4,997 3,789 3,995 3,8< Latin America: Argentina 886 886 1,147 1,208 1.134 1,169 1,238 1,368 1,398 1,407 1,510 Bahamas 1,448 1,054 1,827 3.190 2,940 1,715 4,600 5,162 2,905 4,838 3,006 Brazil 1,034 1,034 1,227 1.191 1.135 1,320 1,475 1,176 1,271 1,308 1,200 Chile 276 276 317 248 248 273 310 367 369 301 303 Colombia 305 305 417 484 536 516 582 629 686 762 772 Mexico 1,770 1,770 2,078 1,899 2,048 2,004 2,133 2,218 2,158 2,110 2,301 Panama 488 510 1,099 1,145 953 779 961 1,098 1,207 1,050 1,387 Peru 272 272 244 219 223 235 219 230 221 235 239 Uruguay 147 165 172 185 204 242 216 215 229 219 226 Venezuela 3,413 3,413 3,289 2,711 2,571 2,574 2,742 2,757 2,643 2,747 3,092 Other Latin American republics 1,316 1,316 1,500 1,437 1,456 1,640 1,713 1,671 1,836 1,796 1,710 Netherlands Antilles and Surinam 158 158 129 129 142 119 121 125 129 135 149 Other Latin America 526 596 1,507 1,620 2,448 1,735 2,530 1,881 1,533 2,057 1,723 Total 12,038 11,754 14,954 15,665 16,037 14,322 18,839 18,897 16,593 18,964 17,619 Asia: China, People's Rep. of (China Mainland) 50 50 123 263 224 101 120 139 63 42 45 China, Republic of (Taiwan)., 818 818 1,025 1,015 1,072 1,100 1,134 1,130 1,182 1,070 1,131 I H n o d n ia g Kong 5 26 3 1 0 5 26 30 1 6 1 2 2 3 6 6 2 6 0 7 3 6 3 8 2 2 4 7 3 4 3 1 8 7 4 0 2 9 3 6 80 3 3 2 7 8 4 4 7 5 7 9 8 3 8 8 1,0 8 4 4 7 2 Indonesia 1,221 1,221 369 762 583 498 920 1,121 706 1,122 1,002 Israel 386 389 386 325 312 346 323 324 316 298 324 Japan 10,897 10,931 10,218 10,556 11,764 12,265 12,789 13,246 12,847 13,631 14,194 Korea 384 384 390 395 382 361 360 327 343 346 369 Philippines 747 747 698 601 616 605 525 593 742 636 653 Thailand 333 333 252 279 224 225 244 218 261 244 249 Middle East oil-exporting countries 3 4,633 4,623 6,461 6,444 6,993 7,723 8,008 8,543 7,290 7,286 8,102 Other 813 845 867 969 933 967 1,017 984 1,250 1,122 1,376 Total 21,073 21,130 21,539 22,480 24,109 25,271 26,570 28,061 26,591 27,522 29,335 Africa: E So g u y t p h t Africa 1 1 0 3 3 0 1 1 0 3 3 0 3 1 4 6 3 9 2 1 1 77 8 1 13 8 3 0 3 18 14 6 2 1 3 7 1 7 2 1 0 9 2 7 2 1 1 61 1 2 1 3 2 6 3 2 1 0 6 0 4 Oil-exporting countries 4...., 2,814 2,814 2,239 2,135 2,208 1,919 2,256 2,423 2,567 2,443 2,368 Other 504 504 623 562 609 680 598 651 652 672 736 Total 3,551 3,551 3,373 3,091 3,131 3,099 3,262 3,472 3,591 3,473 3,469 Other countries: Australia 2,742 2,742 2,014 2,046 2,070 2,001 1,931 1,950 2,066 2,185 1,964 All other 89 89 114 143 131 125 93 107 111 122 Total 2,831 2,831 2,128 2,190 2,201 2,126 2,015 2,043 2,173 2,296 2,087 Total foreign countries 91,676 91,640 89,097 90,217 93,638 90,264 96,551 98,638 93,323 96,149 95,308 International and regional: I L O n a t t h t e i e r n r n A a r t e m i g o e i n o r a n i l c a a 5 l n 6 r egional 2,9 2 0 0 6 0 9 2 2,9 2 0 0 6 0 9 2 5,0 1 6 4 8 4 2 7 4,6 2 2 1 8 9 9 6 4,1 2 8 7 6 8 0 2 4,4 1 1 5 8 2 9 8 2 5,2 1 1 6 4 0 9 1 8 5,2 1 1 4 0 5 7 9 6 5,0 1 1 6 7 2 3 6 6 5,3 1 1 8 7 1 3 6 2 5,2 1 1 8 6 9 5 6 8 Total 3,171 3,171 5,293 4,933 4,520 4,769 5,519 5,512 5,365 5,671 5,649 Grand total 94,847 94,811 94,390 95,151 98,159 95,033 102,070 104,151 98,688 101,820 100,957 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A65 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY-Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data ? 1974 1975 1976 1974 1975 Area and country Area and country Apr. Dec. Apr. Dec, Apr.f Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus 10 17 Cambodia 4 4 4 Iceland. 20 Jordan 6 22 30 Ireland, Rep. of 53 29 Laos 3 3 5 Lebanon 68 126 180 Other Latin American republics: Malaysia 40 63 92 Bolivia 102 96 93 110 104 Pakistan 108 91 118 Costa Rica 88 118 120 125 69 Singapore 165 245 215 Dominican Republic 137 128 214 169 149 Sri Lanka (Ceylon) 13 14 13 Ecuador 90 122 157 120 Vietnam 98 126 70 El Salvador 129 129 144 171 i 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 Nicaragua 119 127 125 133 89 Ghana 22 18 13 Paraguay 40 46 38 43 43 Kenya 20 31 32 Trinidad and Tobago 21 107 31 131 Liberia 29 39 33 Southern Rhodesia. .. 2 3 Other Latin America: Sudan 2 4 14 Bermuda 201 116 100 170 Tanzania 12 11 21 British West Indies 354 449 627 1,311 Tunisia 17 19 23 Uganda 11 13 38 Other Asia: Zambia 66 22 18 Afghanistan 11 18 19 54 Burma 42 65 49 All other: New Zealand 33 47 36 1 Data in the 2 columns shown for this date differ because of changes 4 Comprises Algeria, Gabon, Libya, and Nigeria. in reporting coverage. Figures in the first column are comparable in 5 Data exclude holdings of dollars of the International Monetary Fund. coverage with those for the preceding date; figures in the second column 6 Asian, African, and European regional organizations, except BIS, are comparable with those shown for the following date. which is included in "Europe." 2 Includes Bank for International Settlements. 7 Represent a partial breakdown of the amounts shown in the other 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, categories (except "Other Eastern Europe"). and United Arab Emirates (Trucial States). 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 intl. Total and Official Other United Total regional Total institu- Banks * foreign- Ger- King- Total Latin Middle Other tions ers many dom Europe America East 2 Asia3 1,018 580 439 93 259 87 165 63 260 136 1,462 761 700 310 291 100 159 66 470 132 1,285 822 464 124 261 79 146 43 227 115 94 1,608 395 1,213 873 261 79 118 61 221 121 841 7 1,525 311 1,212 868 261 83 118 61 226 126 832 6 1 1 , , 5 8 6 1 1 2 2 41 9 5 7 1 1, , 3 2 9 6 5 3 9 8 3 9 1 4 2 3 8 6 6 4 1 8 0 3 0 2 1 1 1 4 5 6 6 6 6 2 3 3 3 1 1 1 1 4 4 7 0 8 8 5 9 7 4 1 8 2 1,935 306 1,627 1,027 477 123 314 70 448 142 990 16 1,919 286 1,631 1,050 473 107 312 69 444 141 1,009 12 2,132 182 1,949 1,342 492 115 306 78 443 147 1,305 16 2,137 197 1,938 1,372 435 131 309 87 457 108 1,335 14 2,134 135 1.997 1,429 431 137 306 87 453 104 1,399 16 2,255 189 2,065 1,490 434 141 308 88 459 107 1,458 16 2,308 235 2,072 1,479 450 143 307 89 463 117 1,448 17 2,277 246 2,026 1,425 452 149 311 92 469 122 1,394 17 2,218 214 1.998 1,386 453 159 312 91 470 125 1,340 41 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. • NOVEMBER 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. Sept. Oct. Nov. Dec. Jan. Feb, Mar. Apr. May June July Aug.f Sept.f Europe: Belgium-Luxembourg 10 14 14 13 13 13 13 13 14 13 12 11 9 9 Germany 9 217 216 216 215 212 238 247 228 225 227 221 324 518 Sweden 251 275 275 275 276 276 276 276 276 281 291 291 275 240 Switzerland 30 44 54 58 55 68 72 75 89 99 101 132 171 268 United Kingdom 493 501 441 414 363 374 370 386 389 349 380 368 383 396 Other Western Europe 114 152 165 159 209 213 381 465 472 551 577 567 589 Eastern Europe 5 5 4 4 4 4 4 4 4 4 4 4 4 Total. 885 ,170 1,157 ,145 ,085 1,156 ,186 1,382 1,465 ,443 1,566 1,604 1,733 2,024 Canada 713 404 400 402 395 395 418 419 425 340 340 341 337 386 Latin America: Latin American republics.. 13 13 33 33 33 33 33 33 34 34 39 39 30 Netherlands Antilles 1.... 149 158 160 161 159 131 121 120 125 141 157 222 138 Other Latin America 5 6 6 6 7 7 7 7 7 7 7 10 10 Total. 168 199 161 160 166 182 203 271 178 Asia: Japan 3,498 3,502 3,520 3,269 3,271 3,268 3,212 3,217 3,217 3,074 3,075 3,077 2,952 3,052 Other Asia. 212 1,668 1,818 1,869 2,099 2,229 2,436 2,987 3,330 3,800 4,391 4,624 4,931 5,499 Total 3,709 5,170 5,339 5,138 5,370 5,497 5,648 6,204 6,547 6,874 7,466 7,700 7,883 ,551 Africa 151 261 311 311 321 340 350 396 411 431 471 501 521 531 All other Total foreign countries 5,557 7,173 7,383 7,195 7,372 7,589 7,775 ,561 9,009 9,254 10,026 10,350 10,746 1,671 International and regional: International 52 324 60 322 593 1,034 957 153 149 583 ,059 1,382 ,762 Latin American regional... 15 15 9 9 -1 -3 -6 -6 3 13 13 Total 150 67 339 69 331 592 ,033 956 150 143 576 1,062 1,395 1,775 Grand total. 5,708 7,240 7,722 7,263 7,702 8,181 ,808 9,517 9,158 9,396 10,602 11,412 12,141 13,446 l 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- FFoorreeiiggnn End of period Total Collec- ances ggoovvtt,, ssee-tions made Deposits ccuurriittiieess,, Total Official out- for acct. Other Total with for- ccoommll.. Other Total institu- Banksi Others2 stand- of for- eigners aanndd ffii-tions ing eigners nnaannccee ppaappeerr 197 2 15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 197 3 20,723 20,061 7,660 284 4,538 2,838 4,307 4,160 3,935 662 428 119 115 197 4 39,056 37,859 11,296 381 7,337 3,579 5,637 11,237 9,689 1,196 669 289 238 1975—Sept.. 45,843 44,706 12,822 574 7,638 4,610 5,314 10,071 16,499 1,138 581 236 320 Oct... 48,169 46,848 12,811 649 7,642 4,519 5,465 10.134 18,438 1,321 749 231 341 Nov.. 48,752 47,432 13,562 697 8,392 4,472 5,363 10,610 17,898 1,319 652 340 327 Dec.. , 50,248 48,938 13,287 614 7,733 4,939 5,467 11.135 19,049 1,309 633 301 376 1976—Jan... 51,583 50,338 13,495 697 8,147 4,652 5,311 11,047 20,485 1,246 696 263 286 Feb... 54,173 52,773 14,303 754 8,762 4,788 5,191 10,994 22,285 1,401 728 241 431 Mar.. 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 May.. 57,658 56,240 15,819 1,014 9,532 5,272 5,379 11,310 23,733 1,419 878 141 399 June. 57,924 56,363 15,182 815 9,124 5,243 5,517 11,541 24,124 1,560 916 158 487 July.. 59,332 57,875 15,597 737 9,670 5,189 5,542 11,451 25,285 1,457 850 132 475 Aug.P 57,998 56,455 15,248 1,017 9,041 5,191 5,495 11,144 24,568 1,542 903 143 496 Sept.P 59,522 57,868 15,013 778 9,141 5,094 5,608 11,347 25,899 1,654 1,027 120 507 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

NOVEMBER 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 AArreeaa aanndd ccoouunnttrryy Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug.p Sept. p Europe: Austria 21 15 20 23 22 39 25 35 24 24 47 Belgium-Luxembourg 384 352 401 417 430 398 427 537 562 472 445 46 49 55 55 55 59 57 62 68 50 57 Finland 122 128 132 120 128 105 109 125 133 176 129 France 673 1,471 1,397 1,513 1,256 1,233 1,109 1,145 1,100 929 1,167 Germany 589 441 486 426 474 452 448 384 432 414 501 Greece 64 49 55 52 53 63 62 53 70 68 117 Italy 345 370 369 402 360 406 492 554 644 617 705 Netherlands 348 300 316 267 269 290 267 318 251 266 254 Norway 119 71 66 63 66 71 76 71 74 78 68 Portugal 20 16 20 20 21 18 32 40 53 57 55 Spain 196 249 274 262 231 241 321 285 302 239 244 Sweden 180 167 124 111 121 105 116 106 97 143 106 Switzerland 335 237 250 278 340 400 355 401 374 442 420 Turkey 15 86 59 82 73 68 90 99 81 77 91 United Kingdom 2,580 4,718 4,588 4,778 4,550 5,295 4,987 5,077 5,435 5,167 4,570 Yugoslavia 22 38 37 49 64 50 47 45 45 40 28 Other Western Europe 22 27 26 29 29 27 41 57 42 50 56 U.S.S.R 46 103 101 84 85 63 70 70 69 53 52 Other Eastern Europe 131 114 125 159 109 107 102 110 147 125 107 Total 6,255 9,000 8,899 9,190 8,737 9,491 9,232 9,572 10,003 9,487 9,216 Canada 2,776 2,817 3,020 2,983 2,917 3,253 3,364 3,166 3,027 3,031 3,209 Latin America: 720 1,203 1,246 1,338 1,290 1,374 1,342 1,145 1,149 1,149 996611 Bahamas 3,405 7,577 8,048 10,048 10,324 10,267 11,104 11,460 12,381 11,532 13,600 Brazil 1,418 2,225 2,157 2,204 2,318 2,351 2,414 2,692 2,633 2,773 2,891 Chile 290 360 312 343 324 349 352 340 364 352 343 Colombia 713 692 654 586 545 539 518 533 537 501 459 Mexico 1,972 2,813 2,783 3,079 3,034 3,236 3,444 3,494 3,562 3,559 3,456 Panama 505 1,052 1,281 1,193 1,110 787 991 840 697 778 809 Peru 518 588 624 634 597 638 621 623 665 666 691 Uruguay 63 51 68 62 46 39 33 34 31 31 28 Venezuela 704 1,086 1,001 925 1,040 1,077 1,280 1,153 1,237 1,503 1,302 Other Latin American republics 866 980 1,055 1,061 986 1,052 1,153 999 1,072 991 1,114 Netherlands Antilles and Surinam 62 49 53 43 - 33 32 32 33 28 29 42 Other Latin America 1,142 1,885 3,085 3,264 2,729 3,718 3,996 3,667 4,121 3,751 3,743 Total 12,377 20,561 22,368 24,781 24,375 25,458 27,280 27,015 28,477 27,614 29,439 Asia: China, People's Rep. of (China Mainland) 4 22 1100 1177 22 18 9 10 12 4 4 China, Republic of (Taiwan) 500 737 725 729 775 793 860 863 908 939 981 Hong Kong 223 258 234 225 229 200 228 273 296 251 252 India 14 21 19 26 25 26 34 38 36 36 33 Indonesia 157 105 129 131 162 162 171 160 125 108 119 Israel 255 491 419 365 309 314 285 315 269 257 313 Japan 12,518 10,753 10,121 9,870 10,208 10,118 10,004 10,358 10,340 10,116 10,230 Korea 955 1,556 1,605 1,715 1,600 1,713 1,675 1,713 1,614 1,551 1,594 Philippines 372 384 434 507 510 520 559 524 389 459 474 Thailand 458 495 535 516 537 533 491 490 465 437 434 Middle East oil-exporting countries 1... 330 524 525 600 646 605 742 746 780 836 695 Other 441 684 734 705 731 632 785 719 665 838 569 Total 16,226 16,029 15,489 15,405 15,756 15,635 15,841 16,209 15,898 15,832 15,696 Africa: Egypt 111 104 106 101 103 110 106 117 117 115 114 329 545 547 546 575 631 672 689 698 695 679 115 231 213 230 226 210 211 181 185 268 176 Other 300 351 349 330 270 301 336 327 311 317 363 Total 855 1,231 1,215 1,207 1,174 1,252 1,325 1,314 1,310 1,395 1,332 Other countries: 466 535 503 449922 521 498 547 548 542 553 519 All other 99 73 87 113 98 79 67 100 74 85 110 Total 565 609 589 605 619 577 615 647 617 638 629 Total foreign countries 39,055 50,246 51,581 54,172 53,578 55,666 57,657 57,923 59,331 57,997 59,522 International and regional 1 3 2 3 2 1 1 1 1 39,056 50,248 51,583 54,173 53,580 55,668 57,658 57,924 59,332 57,998 59,522 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. • NOVEMBER 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 in Total Total Middle Other All Other foreign Europe Canada Latin Japan East 3 Asia4 other long- curren- America coun- Official Other term cies tries2 Total institu- Banks1 foreign- claims tions ers2 197 2 5,063 4,588 844 430 3,314 435 40 853 406 2,020 353 918 514 197 3 5,996 5,446 1,160 591 3,694 478 72 1,272 490 2,116 251 1,331 536 197 4 7,179 6,490 1,328 931 4,231 609 80 1,907 501 2,614 258 384 977 537 1975—Sept.. 8,607 7,705 1,343 1,371 4,991 809 93 2,459 508 3,139 265 237 1,214 785 Oct... 8,948 7,994 1,281 1,536 5,177 840 114 2,567 595 3,175 292 222 1,233 865 Nov.. 9,158 8,137 1,318 1,567 5,253 903 118 2,562 569 3,287 293 249 1,237 961 Dec... 9,550 8,499 1,375 1,712 5,412 934 116 2,695 555 3,497 296 220 1.276 1,011 1976—Jan.. . 9,432 8,369 1,293 1,653 423 945 118 2,697 552 3,382 289 205 1.277 1,030 Feb... 9,531 8,372 1,268 1,652 452 1,012 148 2,622 576 3,471 289 210 1,270 1,093 Mar.. 9,800 8,641 1,316 1,740 584 1,011 149 2,702 570 3,605 292 296 1,195 1,140 Apr... 9,980 8,783 1,337 1,842 603 1,081 116 2,736 558 3,785 307 196 1,279 1,118 May.. 10,252 9,004 1,381 1,933 689 1,133 115 2,831 607 3,973 307 196 1,263 1,075 June.. 10,216 8,957 1,370 1,961 626 1,138 121 2,742 590 4,081 324 182 1,261 1,037 July. . 10,386 9,098 1,346 2,085 667 1,155 133 2,871 575 4,103 337 183 1,290 1,027 Aug p. 10,956 9,603 1,349 2,223 6,010 1,224 129 3,093 592 4,379 355 187 1,293 1,057 Sept.?. 11,232 9,846 1,359 2,298 6,188 1,249 137 3,149 623 4,516 370 171 1,325 1,079 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. FFoorreeiiggnn chases Sales chases or chases Sales chases Sales Sales chases oi Total and sales ( —) sales (—) sales (—; regional Total4 Official Other 1973 305 -165 470 465 6 18,574 13,810 4,764 1,474 2,467 -993 1,729 1,554 176 1974 -472 101 -573 -642 69 16,207 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.-Sept.P 4,882 1,444 3,438 3,285 153 18,387 14,820 3,567 3,350 9,814 -6,464 1,421 1,744 -323 1975—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 June 1,205 434 772 717 55 1,820 1,331 489 281 813 -531 162 206 -44 July 810 486 324 294 31 1,902 1,517 385 440 2,173 -1,734 128 257 -129 Aug.? 729 333 396 320 76 1,461 1,194 268 333 811 -478 123 134 -11 Sept.? 1,305 380 925 964 -40 1,485 1,465 20 359 790 -432 126 153 -27 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.-Sept.3' 3,019 210 abroad. 3 Includes transactions of international and regional organizations. 1975—Sept. 150 50 4 Includes transactions (in millions of dollars) of oil-exporting countries Oct. 150 50 in Middle East and Africa as shown in the tabulation in the opposite Nov. 51 column: Dec. 179 10 1976—Jan. 116 20 Feb. 191 10 Mar. 532 45 Apr. 320 15 May 460 20 June 611 40 July 246 30 Aug.f 228 20 Sept.2' 315 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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- EEuurrooppee Canada America East1 Asia 2 Other3 sales (—) 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 4,669 262 251 359 889 594 2,491 361 -7 1,640 142 33 1976—Jan 14,416 11,818 2,598 255 76 -98 36 332 582 236 146 1,498 103 32 1975—Sept 898 646 252 10 6 22 64 7 122 20 -15 83 34 7 Oct 1,475 1,047 428 16 -6 17 36 48 143 60 7 190 22 6 Nov 1,155 817 338 22 42 -5 42 44 134 36 -1 157 8 2 Dec 1,380 691 689 28 38 64 122 32 295 103 -9 289 13 -3 1976—Jan 2.087 1,546 541 1 136 -48 -2 88 208 40 76 222 -6 1 Feb 2,095 1,724 371 15 12 -14 63 41 133 48 11 175 5 2 Mar 2,137 1,555 582 79 26 -6 147 69 327 16 28 153 42 13 Apr 1,690 1,279 411 10 10 31 -21 49 84 23 25 254 22 4 May 1,209 1,096 113 3 -44 4 21 20 -11 30 7 67 16 4 June 1,429 1,176 252 24 -27 2 -47 20 -47 5 11 266 20 3 July. . 1,595 1,363 232 72 -20 -22 -58 5 -32 44 3 209 10 -1 Aug.** 1,050 962 88 28 -11 -21 -11 12 -19 35 -24 92 -2 8 Sept.? 1,124 1,116 9 23 -6 -26 -55 29 -60 5 10 60 -4 -2 1 Comprises Middle East oil-exporting countries as follows: Bahrain, 2 Until 1975 includes Middle East oil-exporting countries. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 3 Includes international and regional organizations. (Trucial States). 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Ger- Nether-Switzer- United Total Total Middle Other Total Other Intl. and Period Total many lands land Kingdom Europe Canada Latin East1 Asia 2 Africa countries regional America 197 3 1,948 201 -33 -19 307 275 1,204 49 44 52 197 4 988 96 33 183 96 395 741 45 43 632 -483 197 5 752 82 -11 15 117 87 106 128 31 1,553 -42 5 1,030 1976—Jan.-Sept.P 994 34 -60 157 -21 74 31 970 -114 -7 -20 10 1975—S N O e o c p t v t - 3 9 2 8 4 3 8 -1 3 4 9 1 -50 6 -7 1 9 2 -4 7 1 8 - -2 1 4 5 9 0 - - 5 3 1 8 24 9 9 7 4 3 - - 6 4 4 -1 -1 6 1 1 2 1 Dec 242 2 56 74 6 150 16 1976—J F a e n b 21 4 5 7 2 5 - - 1 1 2 3 0 6 - -2 3 0 2 7 3 2 4 9 22 3 1 0 - -3 20 4 -10* -1 1 4 8 Mar -31 3 -56 5 -11 -70 9 35 -20 -10 20 Apr 160 3 9 4 -26 -25 7 179 -13 4 J M u a n y e 23 2 6 2 6 3 -2 2 1 3 8 1 8 9 -2 2 9 -3 1 22 3 4 7 -19 6 -13 S J A u e u p l g y t . . P 33 1 17 5 11 9 3 - 1 1 4 0 - - 3 3 3 16 5 2 1 3 3 7 2 4 9 9 1 9 2 8 1 12 0 18 1 4 -1 -2 5 5 -19 -4 6 1 See note 1 to Table 15. NOTE.—Statistics include State and local govt, securities, and securities 2 See note 2 to Table 15. of U.S. Govt, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu- Canada Amer- Asia Af- coun- End of balances balances re- coun- rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1973 -818 139 -957 -141 -569 -120 -168 3 37 1973—Sept. 290 255 1974 -2,034 -60 -1,974 -546 -1,508 -93 142 7 22 Dec. 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-Sept.?. 6,786 -1,154 -5,632 -649 -4,143 -14 -640 45 -230 Sept. 298 178 Dec., 293 194 1975—Sept.... -81 18 -99 -20 -129 25 24 -1 1 Oct, , -508 5 -513 48 -460 -48 -55 -3 6 1975—Mar. 349 209 Nov -715 -62 -653 -27 -584 6 2 -2 -48 June. 380 233 Dec -1,139 -839 -300 79 -310 9 -79 -1 1 Sept. 343 258 Dec. 365 319 1976—Jan -335 94 -429 -109 -304 -9 -7 -3 2 Feb -1,205 -139 -1,067 33 -973 5 -113 -4 -14 1976—Mar. 411 333 Mar.... -986 9 -995 -168 -738 -72 -14 -5 2 Apr.. . . -382 -94 -288 * -286 6 -15 4 2 May. .. -491 -158 -333 -19 -233 -39 -77 32 3 NOTE.—Data represent the money credit balances and June. .. -576 6 -582 -52 -328 10 12 11 -234 money debit balances appearing on the books of reporting July.... -1,862 -819 -1,044 -130 -853 19 -93 9 3 brokers and dealers in the United States, in accounts of Aug.P.. -489 -66 -423 -60 -98 47 -317 1 3 foreigners with them, and in their accounts carried by Sept .p. . -459 12 -471 -145 -331 20 -16 * 2 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 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- Total Parent Other Total branches Other cial bank bank of parent banks insti- forbank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies 1973—De c 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 1974—De c 151,905 6,900 4,464 2,435 138,712 27,559 60,283 4,077 46,793 1975—Au g 167,672 9,151 6,098 3,054 151,897 32,062 62,974 4,901 51,960 Sept 167,886 6,575 3,268 3,307 154,905 32,140 65,876 4,863 52,026 Oct 171,465 7,924 4,896 3,027 156,989 33,496 65,348 5,237 52,908 Nov 173,736 8,705 5,777 2,928 158,179 34,385 65,296 5,516 52,982 Dec 176,493 6,743 3,665 3,078 163,391 34,508 69,206 5,879 53,798 1976—Ja n 179,761 8,033 5,045 2,988 165,548 37,064 67,787 6,121 54,576 Feb 81,651 8,959 5,926 3,033 166,250 35,200 69,244 6,332 55,473 Mar 186,870 6,742 3,525 3,217 173,577 38,867 72,404 6,661 55,645 Apr 189.437 9,054 6,049 3,005 173,827 39,563 70,652 7,213 56,399 May 194,592 10,019 6,924 3,095 177,806 39,982 73,619 7,820 56,385 June r 194,481 6,701 3,272 3,429 181,151 40,971 74,404 7,909 57,867 July 196,757 8,640 5,569 3,071 181,284 41,675 71,756 8,444 59,409 Aug.f 196,117 7,241 4,008 3,234 182,161 40,890 71,537 8,835 60,898 Payable in U.S. dollars. 1973—De c 79,445 4,599 1,848 2,751 73,018 12,799 39,527 1,777 18,915 1974—De c 105,969 6,603 4,428 2,175 96,209 19,688 45,067 3,289 28,164 1975—Au g 122,781 8,827 6,044 2,783 110,654 25,758 48,250 4,148 32,498 Sept 124,373 6,238 3,211 3,027 115,178 26,043 51,998 4,042 33,095 Oct 127,355 7,506 4,822 2,684 116,673 27,357 50,820 4.363 34,133 Nov 130,233 8,350 5,725 2,625 118,603 28,317 51,624 4,646 34,016 Dec 132,901 6,408 3,628 2,780 123,496 28,478 55,319 4,951 34,748 1976—Ja n 134,713 7,697 5,005 2,692 123,925 30,113 53,370 5,229 35,214 Feb 136,307 8,644 5,881 2,763 124,433 28,730 54,497 5.364 35,842 Mar 138,201 6,464 3,478 2,986 128,629 30,496 56,039 5,719 36,374 Apr 140,971 8,759 5,980 2,778 129,141 31,510 54,496 6,158 36,978 May 146.438 9,704 6,848 2,855 133,491 32,121 57,540 6,656 37,175 June r 145,994 6,384 3,203 3,181 136,541 32,856 58,857 6,706 38,122 July 149,054 8,371 5,524 2,847 137,291 33,786 56,590 7,148 39,766 Aug.P 147,200 6,927 3,969 2,959 137,067 32,933 56,159 7,643 40,333 IN UNITED KINGDOM Total, all currencies 1973—De c 61,732 1,789 738 ,051 57,761 8,773 34,442 735 13,811 1974—De c 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,8"" 1975—Au g 72.455 3,795 2.698 ,097 66,428 15,213 33,486 948 16,780 Sept 72,120 2,042 1,076 967 67,923 15,249 35,569 825 16,280 Oct 72,742 2,681 1.699 982 67,631 16,555 33,882 830 16,364 Nov 73,924 3,112 2,137 975 68,494 17,549 34,077 852 16.017 Dec 74,883 2,392 1,449 943 70,331 17,557 35,904 881 15,990 1976—Ja n 73,437 2,253 1,469 784 69,062 18,026 34,152 1,034 15,850 Feb 72,963 2,947 2,270 677 67,843 16,050 34,887 964 15,941 Mar 74,668 2,112 1,237 875 70,300 17,363 36,723 927 15,287 Apr 74,055 2,275 1,447 827 69,555 18,394 34,879 934 15,348 May 75,926 2,443 1,534 909 71,189 18,619 36,270 851 15,449 June r 74,460 1,702 802 900 70,526 18,139 35,804 888 15,695 July 73,494 1,862 1,002 860 69,359 18,838 33,593 909 16.018 Aug.f 73,229 1,758 938 821 69,298 18,044 34,135 1,007 16,112 Payable in U.S. dollars. 1973—De c 40,323 1,642 730 912 37,816 6,509 23,389 510 7,409 1974—De c 49,211 3,146 2,468 678 44,693 10,265 23,716 610 10,102 1975—Au g 53.456 3,661 2,681 980 48,763 13,315 24,719 740 9,989 Sept 54,256 1,910 1,054 856 51,369 13,488 27,514 596 9,772 Oct 54,192 2,552 1,687 865 50,494 14,654 25,450 592 9,799 Nov 56,221 2,988 2,123 865 52,145 15,555 26,233 638 9,720 Dec 57,361 2,273 1,445 828 54,120 15,645 28,224 648 9,604 1976—Ja n 55,046 2,141 1,459 683 52,024 15,574 26,008 837 9,606 Feb 55,041 2,856 2,261 595 51,266 14,278 26,741 715 9,532 Mar 55,115 2,010 1,234 775 52,147 14,450 27,526 691 9,482 Apr 54,516 2,155 1,434 721 51,469 15,424 25,820 633 9,593 May 56,667 2,322 1,519 803 53,466 15,860 27,218 635 9,754 June r 55,360 1,614 795 819 52,899 15,454 27,068 631 9,747 July 54,871 1,780 997 783 52,249 16,202 25,371 659 10,018 Aug.f 54,522 1,658 934 724 52,006 15,401 25,826 799 9,980 IN BAHAMAS AND CAYMANS* Total, all currencies 1973—De c 23,771 2,210 317 1,893 21,041 1,928 9,895 1,151 8,068 1974—De c 31,733 2,464 1,081 1,383 28,453 3,478 11,354 2,022 11,599 1975—Au g 41,624 4,117 2,580 1,536 36,555 5,222 14,117 2,891 14,324 Sept 41,601 3,189 1,289 1,900 37,479 5,220 14,604 3,020 14,635 Oct 44,166 3,989 2,295 1,694 39,225 5,604 15,414 3,308 14,899 Nov 44,471 4,544 2,929 1,615 38,973 5,321 15,134 3,434 15,084 Dec 45,203 3,229 1,477 1,752 41,040 5,411 16,298 3,576 15,756 1976—Ja n 48,694 4,488 2,614 1,874 43,104 6,296 17,195 3,677 15,935 Feb 50,276 4,765 2,750 2,014 44,396 6,257 17,556 3,908 16,675 Mar 51,075 3,482 1,485 1,996 46,636 6,745 18,205 4,251 17,434 Apr 54,398 5,695 3,835 1,860 47,536 6,437 18,503 4,680 17,917 May 57,247 6,294 4,424 1,870 49,631 6,435 20,181 5,101 17,915 June 57,118 3,804 1,636 2,169 52,275 7,254 21,204 5,160 18,657 July 59,913 5,772 3,864 1,908 52,960 7,149 20,668 5,699 19,444 Aug.f 257,677 3,822 1,721 2,101 52,665 6,791 19,954 5,929 19,991 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 Other Offi- Non- Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti- forbank tutions eigners IN ALL FOREIGN COUNTRIES 5,610 1,642 3,968 111,615 18,213 65,389 10,330 17,683 4,641 . 1973—Dec. .. .Total, all currencies 11,982 5,809 6,173 132,990 26,941 65,675 20,185 20,189 6,933 . 1974—Dec. 17,335 10,173 7,162 143,926 31,926 70,198 21,114 20,688 6,411 . 1975—Aug. 18.502 11,026 7,476 143,182 31,567 70,853 19,780 20,981 6,202 Sept. 19,154 11,282 7,872 146,066 33.216 70,560 20,642 21,648 6,246 Oct. 19,858 11,201 8,657 147,011 33,892 70,567 21,200 21,352 6,867 Nov. 20,221 12,165 8,057 149,815 34,11 72,259 22,773 20,672 6,456 Dec. 22.571 12,691 9,880 151.212 35,908 72,481 21,710 21,114 5,978 .1976—Jan. 24,500 14,091 10,409 151,104 35,257 70,957 23,189 21,700 6,047 Feb. 24,645 15,295 9,350 156,329 37,846 72,769 22,493 23,221 5,896 Mar. 26,755 14,543 12,212 156,870 38,81 72,720 21,857 23,482 5,812 Apr. 28,272 15,918 12,354 160,261 38,994 75,919 22,467 22,881 6,059 May 27,968 16,502 11,467 160,364 39,969 75,527 21,605 23,262 6,148 June r 28,610 15,941 12,669 161,536 41,061 74,181 22,233 24,060 6,61 July 27,116 16,486 10,631 162,635 40,064 74,368 23,373 24,829 6,366 Aug.3' 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9,502 2,158 . 1973—Dec. .Payable in U.S. dollars 11,437 5,641 5,795 92,503 19,330 43,656 17,444 12,072 3,951 . 1974—Dec. 16,689 9,992 6,698 105,200 25,646 49,410 18,080 12,064 3,439 . 1975—Aug. 17,871 10,823 7,048 105,765 25,607 50,726 16,777 12,654 3,213 Sept. 18,477 11,078 7,399 107,682 27,118 49,911 17,476 13,177 3,409 Oct. 19,159 11,008 8,151 110.213 28,030 50,450 18,407 13,326 3,919 Nov. 19.503 11,939 7,564 112,879 28.217 51,583 19,982 13,097 3,526 Dec. 21,931 12,519 9,412 113,546 29,682 51,994 18,906 12,965 3,351 .1976—Jan. 23,759 13,846 9,913 112,981 28,659 50,549 20,317 13,457 3,385 Feb. 23,855 15,023 8,831 115,497 30,011 51,654 19,518 14,315 2,995 Mar. 26,011 14,286 11,725 116,743 31,428 51,679 19,080 14,557 3,063 Apr. 27.572 15,657 11,914 120,445 31,661 54.559 19,791 14,434 3,107 May 27,167 16,229 10,938 120,145 32,758 54,085 19,036 14,266 3,190 June r 27,844 15,687 12,157 121,937 33,850 53.560 19,580 14,947 3,377 July 26,348 16,246 10,102 122,148 32,687 53,317 20,565 15,579 3,252 Aug.25 IN UNITED KINGDOM 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 .1973—Dec. .. .Total, all currencies 3,978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,41 ~ .1974—Dec. 5,251 1,904 3,348 64,994 6,260 32,079 15,617 11,038 2,210 . 1975—Aug. 5,112 1,833 3,279 64,962 6,396 33,130 14,486 10,950 2,046 Sept. 4,905 1,766 3,139 65,681 6,746 32,315 14,909 11,711 2,157 Oct. 5,497 2,028 3,468 66,210 6.470 33,284 15,180 11,275 2,218 Nov. 5,646 2,122 3,523 67,240 6,494 32,964 16,553 11,229 1,997 Dec. 5,645 1,749 3,896 65,899 6,444 33,522 15,053 10,879 1,893 , 1976—Jan. 5,491 1,914 3,577 65,544 6,648 31,444 16,463 10,989 1,928 Feb. 5,382 1,549 3,833 67,217 7,099 32,485 15,905 11,729 2,069 Mar. 6,105 1,764 4,340 65,977 6,898 31,805 15,521 11,752 1,974 Apr. 6,483 1,796 4,687 67,212 7,030 33,189 15,782 11,212 2,231 May 5,874 1,562 4,312 66,536 7,288 33,313 14,825 11,110 2,050 June r 5,628 1,727 3,901 65,594 6,927 31,487 15,462 11,718 2,272 July 5,266 1,520 3,746 65,883 6,668 30,834 16,147 12,234 2,080 Aug.25 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 870 .1973—Dec. • Payable in U.S. dollars 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 , 1974—Dec. 4,975 1,873 3,103 47,896 5,288 22,071 13,249 7,287 1,146 . 1975—Aug. 4,889 1,808 3,081 48,814 5,456 23,645 12,182 7,531 980 Sept. 4,696 1,735 2,961 48,641 5,708 22,433 12,500 7,999 1,142 Oct. 5,288 2,009 3,279 50,159 5,478 23,615 12,999 8,066 1,249 Nov. 5,415 2,083 3,332 51,447 5,442 23,330 14,498 8,176 959 Dec. 5,446 1,732 3,714 49,609 5,422 23,357 13,070 7,761 932 . 1976—Jan. 5,311 1,901 3,410 49,606 5.471 21,911 14,326 7,899 931 Feb. 5,179 1,509 3,670 50,126 5,969 21,973 13,710 8,474 961 Mar. 5,880 1,723 4,156 48,992 5,771 21,230 13,450 8,541 877 Apr. 6,271 1,759 4,513 50,727 5,863 22,544 13,914 8,406 925 May 5,682 1,546 4,136 50,044 6,218 22,690 13,074 8,062 848 June r 5,443 1,703 3,740 49,691 5,878 21,765 13,604 8,444 844 July 5,093 1,498 3,595 49,746 5,604 20,910 14,296 8,936 862 Aug.P IN BAHAMAS AND CAYMANS1 1,573 307 1,266 21,747 5,508 14,071 492 1,676 451 1973—Dec. .. .Total, all currencies 4,815 2,636 2,180 26,140 7,702 14,050 2,377 2,011 778 1974—Dec. 8,800 5,715 3,085 31,913 9,128 17,317 2,860 2,607 911 1975—Aug. 9,928 6,490 3,439 30,861 8,918 16,834 2,570 2,540 812 Sept. 10,833 7,056 3,778 32,372 9,725 17,296 2,775 2,577 961 Oct. 11,082 6,710 4,372 32,239 10,553 15,972 3,230 2,483 1,150 Nov. 11,147 7,628 3,520 32,949 10,569 16,825 3,308 2,248 1,106 Dec. 13,111 5,023 34,475 11,169 17,724 3,416 2,166 1,109 .1976—Jan. 15,042 9,197 5,845 34,133 10,231 18,130 3,407 2,366 1,100 Feb. 15,494 10,915 4,579 34,905 10,850 18,360 2,998 2,697 676 Mar. 16,872 9,904 6,968 36,553 11,903 18,907 2,970 2,774 972 Apr. 18,286 11,529 6,757 38,112 11,918 20,303 2,950 2,941 849 May 18,286 12,203 6,083 37,817 12,117 19,724 2,917 3,059 1,016 June 19,370 11,611 7,759 39,411 13,317 20,350 2,811 2,933 1,131 July 18,237 12,303 5,935 38,380 12,416 20,125 2,857 2,982 1,059 Aug.23 j 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. • NOVEMBER 1976 20. DEPOSITS, U.S. TREAS. SECURITIES, AND GOLD HELD AT F.R. BANKS FOR 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS FOREIGN OFFICIAL ACCOUNT REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Assets in custody Payable in dollars foreign currencies E p n er d i o o d f Deposits U se . c S u . r T it r i e e a s1 s . Ear g m o a ld rk ed EE ppee nn rr dd ii oo oo dd ff TToottaall Deposits i S n t h e v r o e m r s t t - - Deposits i S n t h e v o r e m r s t t - - UU KK dd nn ii oo ii nn mm tt gg ee -- dd CCaannaaddaa ments 1 ments 1 197 2 325 50,934 215,530 197 3 251 52,070 217,068 197 4 418 55,600 16,838 1972 2,374 1,910 55 340 68 911 536 1973 3,164 2,588 37 435 105 1,118 765 1975—Oct... 297 60,307 16,751 1974 3,357 2,591 68 429 268 1,350 967 Nov.. 346 60,512 16,745 Dec.. 352 60,019 16,745 1975—July. 3,336 2,209 246 479 402 926 1,122 Aug.r 3,563 2,292 239 512 520 1,052 1,322 1976—Jan... 294 61,796 16,669 Sept.r 3,696 2,456 266 478 496 1,139 1,261 Feb... 412 62,640 16,666 Oct. r 3,527 2,498 351 429 249 1,199 1,167 Mar.. 305 61,271 16,660 Nov.r 3,922 2,709 468 461 284 1,308 1,382 Apr... 305 62,527 16,657 Dec.r 3,791 2,703 332 510 246 1,304 1,153 May. 303 63,225 16,647 June . 349 63,212 16,633 1976—Jan.... 4,224 3,086 375 474 289 1,506 1,325 July.. 295 62,955 16,607 Feb. 4,426 3,267 377 447 335 1,507 1,348 Aug.. 254 63,457 16,565 Mar.r.... 4,437 3,356 393 435 253 1,690 1,325 O Se c p t t . . . . . 3 36 9 2 2 6 64 4 , , 2 9 1 4 5 2 1 1 6 6 , ,5 5 0 9 5 0 A M p a r y . r r 4 5 , , 9 2 6 0 8 1 4 3 , , 0 8 8 5 8 5 4 42 1 6 2 4 45 3 1 2 2 23 6 7 7 2 1 , , 0 9 6 1 1 2 1 1 , , 3 5 8 2 1 1 June r 4,939 3,963 345 433 199 1,908 1,274 July? 5,190 4,172 380 431 207 2,060 1,415 1 Marketable U.S. Treasury bills, certificates of in- Aug.? 5,111 4,088 419 377 227 2,064 1,393 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand 2 The value of earmarked gold increased because of the or having a contractual maturity of not more than 1 year from the date on which the changes in par value of the U.S. dollar in May 1972, and obligation was incurred by the foreigner. in Oct. 1973. NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in NOTE.—Excludes deposits and U.S. Treasury securities the United States. They are a portion of the total claims on foreigners reported by held for international and regional organizations. Ear- nonbanking concerns in the United States and are included in the figures shown in marked gold is gold held for foreign and international Table 22. 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 Dec / 3,119 2,635 484 5,721 5,074 410 237 1 3,417 2,948 469 6,302 5,643 393 267 1973—Mar.' 3,320 2,848 472 7,024 6,154 456 414 June r 3,295 2,772 523 7,298 6,456 493 349 Sept.r 3,579 2,931 648 7,635 6,708 528 399 Dec.r 4,006 3,290 716 8,498 7,584 493 421 1974—Mar.' 4,414 3,590 823 10,497 9,564 407 526 June r 5,139 4,184 955 11,079 10,154 429 496 Sept.r 5,605 4,656 949 10,764 9,796 430 537 Dec.r 5,933 5,017 916 11,296 10,239 473 584 1975—Mar.' 5,953 5,082 871 10,949 9,818 453 678 Juner 5,961 5,116 845 10,899 9,618 479 801 Sept.r 6,040 5,178 862 11,730 10,383 529 819 Dec.' 6,006 5,388 618 12,271 11,091 565 616 1976—Mar* 6,330 5,655 675 12,850 11,773 483 595 Junef 6,296 5,624 672 13,958 12,947 481 531 1 Data on the 2 lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 June Sept. Dec. Mar.? June? June Sept. Dec. Mar.? June? Europe: Austria 22 18 14 6 13 13 15 16 17 17 Belgium-Luxembourg 345 341 299 296 233 132 131 133 116 173 Denmark 14 8 9 12 12 22 24 39 35 30 Finland 12 14 14 10 7 87 114 91 36 138 France 137 150 148 204 157 287 311 300 372 378 Germany 293 276 151 153 229 346 319 357 307 361 Greece 27 21 19 25 29 69 56 33 41 47 Italy 110 156 173 126 117 300 380 382 408 337 Netherlands 143 154 115 164 171 135 139 172 181 151 Norway 8 13 20 23 22 41 48 41 58 52 Portugal 13 13 4 3 3 32 39 44 45 22 Spain 60 75 82 70 52 324 315 408 517 430 Sweden 35 53 29 25 24 74 100 62 80 84 Switzerland 168 167 130 159 213 113 220 242 207 270 Turkey 14 22 25 14 20 28 31 27 26 31 United Kingdom 1,068 963 992 926 836 1,555 1,781 1,908 2,294 2,603 Yugoslavia 45 60 76 91 115 32 24 36 30 28 Other Western Europe 4 5 8 6 7 16 19 14 18 14 Eastern Europe 49 38 31 33 26 154 170 219 186 171 Total 2,570 2,548 2,338 2,346 2,286 3,761 4,238 4,522 4,975 5,339 Canada 283 299 295 316 370 1,954 2,102 2,127 2,264 2,222 Latin America: Argentina 35 33 36 41 42 63 54 58 48 43 Bahamas 361 297 277 376 330 631 686 667 883 1,150 Brazil 127 116 96 91 90 350 389 409 475 462 Chile 15 13 14 11 15 55 40 36 27 46 Colombia 12 14 17 16 19 51 48 49 47 57 Cuba * * * * * 1 1 1 1 1 Mexico 71 81 82 92 71 328 323 359 331 334 Panama 27 19 24 17 13 128 103 92 86 103 Peru 16 19 23 24 . 25 50 50 41 37 39 Uruguay 3 2 3 2 3 5 5 4 4 4 Venezuela 45 56 100 163 183 171 158 175 154 183 Other L.A. republics 67 69 71 72 93 182 166 160 172 186 Neth. Antilles and Surinam 60 76 35 58 55 13 12 12 7 10 Other Latin America 145 142 138 214 131 159 192 301 292 437 Total 983 936 914 1,178 1,070 2,187 2,225 2,362 2,563 3,054 Asia: China, People's Republic of (China Mainland) 6 2 6 5 8 32 45 65 35 23 China, Rep. of (Taiwan) 100 101 97 111 124 125 152 164 100 215 Hong Kong 30 29 18 24 28 85 85 111 67 105 India 21 22 7 9 10 39 48 39 60 51 Indonesia 87 104 137 137 134 147 137 169 193 191 Israel 62 45 29 23 27 60 63 54 42 52 Japan 273 279 296 308 292 1,250 1,269 1,141 1,168 1,175 Korea 43 63 69 54 62 178 207 265 107 129 Philippines 17 15 14 18 18 91 93 99 106 117 Thailand 6 8 18 18 12 24 21 22 20 19 Other Asia 844 908 1,031 995 1,030 462 532 550 643 688 Total 1,490 1,575 1,720 1,702 1,745 2,494 2,651 2,678 2,539 2,766 Africa: Egypt 34 34 37 30 22 15 15 22 22 28 South Africa 65 79 100 112 88 104 78 93 78 86 Zaire 9 9 6 7 12 17 22 28 28 30 Other Africa 215 219 248 354 406 228 273 297 249 278 Total 323 341 391 503 528 364 388 440 377 422 Other countries: Australia 37 52 55 47 32 99 79 101 96 99 All other 18 21 17 18 20 39 48 39 36 56 Total 55 73 73 65 51 138 127 140 132 155 International and regional 257 267 276 219 246 1 * 1 1 1 Grand total 5,961 6,040 6,006 6,330 6,296 10,899 11,731 12,271 12,850 13,958 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. • NOVEMBER 1976 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Total Country or area 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 c a Japan O A t s h i e a r Africa o A th l e l r 1971—Dec.. 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—Dec. i 3 3 , , 5 6 4 0 0 3 3 3 , ,6 3 6 1 6 2 1 1 9 6 1 3 7 7 4 1 5 5 1,1 7 4 7 1 5 1 1 8 8 7 4 6 64 0 6 7 5 0 8 3 1 1 3 5 3 6 4 3 0 7 6 8 8 8 7 6 10 3 9 8 1973—Mar.. 3,781 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— J M u a n r e . . . 3 3 , , 8 5 3 3 6 6 4 4, , 1 1 9 9 1 4 3 3 6 6 9 3 7 6 3 9 7 9 1 1, , 2 2 2 1 6 0 1 1 9 8 4 4 1 8 3 1 8 7 8 5 0 6 9 1 1 2 2 3 3 4 51 8 5 8 1 12 22 6 6 61 1 Sept.. 3,371 4,324 370 704 1,256 181 145 796 119 571 122 59 Dec.r 3,889 4,544 364 644 1,290 187 153 1,045 112 569 127 54 1975—Mar.r 4,168 4,523 340 655 1,334 182 169 1,008 102 540 139 54 Juner 4,273 4,454 299 634 1,328 182 161 982 98 556 146 68 Sept.r 4,224 4,589 366 620 1,347 177 228 927 95 608 154 67 Dec.r 4,277 4,981 396 600 1,426 171 216 1,250 90 604 168 61 1976—Mar.. 4,091 5,174 349 594 1,473 182 209 1,383 91 619 214 61 June*5 3,930 5,029 365 588 1,516 164 187 1,255 85 649 163 59 1 Data on the 2 lines shown for this data differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. 25. OPEN MARKET RATES (Per cent per annum) Germany, Switzer- Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks' day bills, day bills, day discount 3 months1 money 2 bills, 3 months money deposit money 3 60-90 moneys 3 months money rate 3 months rates days4 1973 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1974.... 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 6.67 1975 7.36 7.34 10.57 10.16 10.13 7.23 7.89 3.51 4.23 4.41 3.65 6.25 1975—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 5.22 4.50 Aug 9.12 9.22 10.94 10.88 10.53 6.50 9.50 3.13 4.08 9.27 7.60 4.50 Sept 9.11 9.20 12.63 12.05 11.88 8.50 9.25 3.13 4.20 1133..8899 4.50 Oct 99..0077 99..1133 1144..7755 1144..4400 1144..3344 1111..0000 1111..0088 33..1133 22..4488 44..5500 1 Based on average yield of weekly tenders during month. 4 Rate in effect at end of month. 2 Based on weekly averages of daily closing rates. 5 Monthly averages based on daily quotations. 3 Rate shown is on private securities. 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 $53,520 million and $54,154 million, respectively, on August 31, 1976. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent NOTE.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1976 • CENTRAL BANK AND EXCHANGE RATES 75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Oct. 31, 1976 Rate as of Oct. 31, 1976 Country Country Per Month Per Month cent effective cent effective Argentina 18.0 Feb. 1972 Italy 15.0 Oct. 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 6.0 Sept. 1976 Denmark 11 .0 Oct. 1976 Sweden 6.0 June 1976 France 10.5 Sept. 1976 Switzerland 2.0 June 1976 Germany, Fed. Rep. of, 3.5 Sept. 1975 United Kingdom 15.0 Oct. 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, 4Vi 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 (dollar) (schilling) (franc) (dollar) (krone) (franc) (deutsche (rupee) (pound) (lira) mark) 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 130.77 5.7467 2.7253 98.297 17.437 23.354 40.729 11.926 222.16 .15328 126.26 5.4586 2.5662 97.557 16.601 22.694 38.737 11.244 205.68 .14745 126.26 5.4535 2.5618 98.631 16.564 22.684 38.619 11.238 204.84 .14721 125.38 5.3986 2.5311 98.627 16.253 22.428 38.144 11.134 202.21 .14645 125.65 5.4300 2.5443 99.359 16.231 22.339 38.425 11.178 202.86 .14245 125.85 5.4628 2.5554 100.652 16.278 22.351 39.034 11.186 202.62 .13021 124.79 5.4383 2.5480 101.431 16.273 21.657 39.064 11.157 194.28 .12113 123.72 5.4964 2.5667 101.668 16.553 21.411 39.402 11.123 184.63 .11371 123.37 5.4535 2.5517 102.02 16.487 21.272 39.035 11.080 180.79 .11676 122.75 5.4136 2.5220 102.71 16.314 21.109 38.797 10.980 176.40 .11780 123.59 5.4500 2.5182 102.86 16.225 20.651 38.842 11.205 178.50 .11943 124.18 5.5645 2.5632 101.49 16.448 20.131 39.538 11.143 178.28 .11936 124.25 5.6567 2.6046 102.56 16.694 20.334 40.169 11.036 172.72 .11837 123.40 5.7960 2.6822 102.81 16.968 20.072 41.165 11.243 163.77 .11684 Malaysia Mexico Nether- New Norway Portugal South Spain Sweden Switzer- (ringgit) (peso) lands Zealand (krone) (escudo) Africa (peseta) (krona) land (guilder) (dollar) (rand) (franc) 35.610 8.0000 31.153 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 40.988 8.0000 35.977 136.04 17.406 4.1080 143.88 1.7178 22.970 31.700 41.682 8.0000 37.267 140.02 18.119 3.9506 146.98 1.7337 22.563 33.688 41.753 8.0000 39.632 121.16 19.180 3.9286 136.47 1.7424 24.141 38.743 38.931 8.0000 37.658 104.74 18.089 3.7359 114.84 1.6883 22.769 37.555 38.929 8.0000 37.638 104.75 18.116 3.7318 114.69 1.6869 22.788 37.683 38.670 8.0000 37.234 103.77 17.988 3.6836 114.75 1.6765 22.685 37.970 38.696 8.0000 37.429 104.06 17.992 3.6562 114.80 1.6751 22.831 38.418 38.998 8.0000 37.529 104.25 18.098 3.6394 114.79 1.5523 22.861 38.912 39.047 8.0000 37.149 102.42 18.022 3.4987 114.83 1.4947 22.702 38.980 39.032 8.0000 37.215 100.19 18.201 3.3759 114.84 1.4864 22.709 39.531 39.079 8.0000 36.811 99.33 18.184 3.3195 114.85 1.4788 22.653 40.205 39.148 8.0000 36.524 98.09 18.020 3.2145 114.94 1.4724 22.475 40.484 39.589 8.0000 36.643 99.05 17.899 3.1810 114.83 1.4685 22.379 40.242 40.077 8.0000 37.393 99.66 18.150 3.1982 114.84 1.4651 22.660 40.302 39.753 5.0286 38.390 98.87 18.427 3.2062 114.77 1.4721 22.998 40.431 39.575 4.8535 39.265 96.484 18.812 3.1920 114.85 1.4675 23.511 40.876 NOTE.—Averages of certified noon buying rates in New York for cable Finance," Section 15 of the Board's Banking and Monetary Statistics, transfers. For description of rates and back data, see "International 1941-1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

> OS Board of Governors of the Federal Reserve System ARTHUR F. BURNS, Chairman STEPHEN S. GARDNER, Vice Chairman HENRY C. WALLICH PHILIP E. COLDWELL PHILIP C. JACKSON, JR. J. CHARLES PARTEE DAVID M. LILLY OFFICE OF OFFICE OF BOARD MEMBERS OFFICE OF STAFF STAFF DIRECTOR FOR MANAGEMENT DIRECTOR FOR MONETARY POLICY THOMAS J. O'CONNELL, Counsel to the JOHN M. DENKLER, Staff Director Chairman STEPHEN H. AXILROD, Staff Director ROBERT J. LAWRENCE, Deputy Staff JOSEPH R. COYNE, Assistant to the Board ARTHUR L. BROIDA, Deputy Staff Director Director KENNETH A. GUENTHER, Assistant to the Board MURRAY ALTMANN, Assistant to the Board GORDON B. GRIMWOOD, Assistant Director JAY PAUL BRENNEMAN, Special Assistant to the PETER M. KEIR, Assistant to the Board and Program Director for Board STANLEY J. SIGEL, Assistant to the Board Contingency Planning FRANK O'BRIEN, JR., Special Assistant to the NORMAND R. V. BERNARD, Special Assistant to WILLIAM W. LAYTON, Director of Equal Board the Board Employment Opportunity DONALD J. WINN, Special Assistant to the BRENTON C. LEAVITT, Program Director for Board Banking Structure DIVISION OF RESEARCH AND STATISTICS LYLE E. GRAMLEY, Director JOHN H. KALCHBRENNER, Associate Director JAMES L. KICHLINE, Associate Director JOSEPH S. ZEISEL, Associate Director EDWARD C. ETTIN, Adviser LEGAL DIVISION ELEANOR J. STOCKWELL, Adviser JAMES B. ECKERT, Associate Adviser JOHN D. HAWKE, JR., General Counsel F JOHN J. MINGO, Associate Adviser BALDWIN B. TUTTLE, Deputy General J. CORTLAND G. PERET, Associate Adviser DIVISION OF FEDERAL RESERVE Counsel HELMUT F. WENDEL, Associate Adviser BANK EXAMINATIONS AND BUDGETS ROBERT E. MANNION, Assistant General JAMES R. WETZEL, Associate Adviser Counsel JAMES M. BRUNDY, Assistant Adviser WILLIAM H. WALLACE, Director ALLEN L. RAIKEN, Assistant General Counsel JARED J. ENZLER, Assistant Adviser ALBERT R. HAMILTON, Associate Director GARY M. WELSH, Assistant General Counsel ROBERT M. FISHER, Assistant Adviser CLYDE H. FARNSWORTH, JR. , Assistant Director CHARLES R. MCNEILL, Assistant to the STEPHEN P. TAYLOR, Assistant Adviser P. D. RING, Assistant Director General Counsel LEVON H. GARABEDIAN, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF DIVISION OF CONSUMER AFFAIRS DIVISION OF INTERNATIONAL FINANCE FEDERAL RESERVE BANK OPERATIONS JANET O. HART, Director JOHN E. REYNOLDS, Acting Director JAMES R. KUDLINSKI, Director JERAULD C. KLUCKMAN, Assistant Director ROBERT F. GEMMILL, Adviser WALTER A. ALTHAUSEN, Assistant Director REED J. IRVINE, Adviser BRIAN M. CAREY, Assistant Director IHELEN B. JUNZ, Adviser OFFICE OF THE SECRETARY SAMUEL PIZER, Adviser HARRY A. GUINTER, Assistant Director GEORGE B. HENRY, Associate Adviser THEODORE E. ALLISON, Secretary CHARLES J. SIEGMAN, Associate Adviser DIVISION OF DATA PROCESSING GRIFFITH L. GARWOOD, Deputy Secretary EDWIN M. TRUMAN, Associate Adviser * RICHARD D. ABRAHAMSON, Assistant Secretary CHARLES L. HAMPTON, Director BRUCE M. BEARDSLEY, Associate Director UYLESS D. BLACK, Assistant Director DIVISION OF BANKING GLENN L. CUMMINS, Assistant Director SUPERVISION AND REGULATION tOn leave of absence. ROBERT J. ZEMEL, Assistant Director BRENTON C. LEAVITT, Director RALPH H. GELDER, Associate Director DIVISION OF PERSONNEL JOHN E. RYAN, Associate Director DAVID L. SHANNON, Director WILLIAM W. WILES, Associate Director CHARLES W. WOOD, Assistant Director PETER E. BARN A, Assistant Director FREDERICK R. DAHL, Assistant Director OFFICE OF THE CONTROLLER JACK M. EGERTSON, Assistant Director JOHN N. LYON, Assistant Director JOHN KAKALEC, Controller JOHN T. MCCLINTOCK, Assistant Director TYLER E. WILLIAMS, JR., Assistant Controller THOMAS E. MEAD, Assistant Director ROBERT S. PLOTKIN, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES THOMAS A. SIDMAN, Assistant Director WALTER W. KREIMANN, Director DONALD E. ANDERSON, Assistant Director JOHN D. SMITH, Assistant Director * On loan from the Federal Reserve Bank of Chicago. > Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Open Market Committee ARTHUR F. BURNS, Chairman PAUL A. VOLCKER, Vice Chairman JOHN J. BALLES STEPHEN S. GARDNER J. CHARLES PARTEE ROBERT P. BLACK PHILIP C. JACKSON, JR. HENRY C. WALLICH PHILIP E. COLDWELL MONROE KIMBREL WILLIS J. WINN DAVID M. LILLY ARTHUR L. BROIDA, Secretary LYLE E. GRAMLEY, Economist MURRAY ALTMANN, Deputy Secretary (Domestic Business) NORMAND R. V. BERNARD, Assistant HARRY BRANDT, Associate Economist Secretary RICHARD G. DAVIS, Associate Economist THOMAS J. O'CONNELL, General Counsel WILLIAM J. HOCTER, Associate Economist EDWARD G. GUY, Deputy General Counsel MICHAEL W. KERAN, Associate Economist BALDWIN B. TUTTLE, Assistant General JAMES L. KICHLINE, Associate Economist Counsel JAMES PARTHEMOS, Associate Economist STEPHEN H. AXILROD, Economist JOHN E. REYNOLDS, Associate Economist (Domestic Finance) JOSEPH S. ZEISEL, Associate Economist 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 ELLMORE C. PATTERSON, SECOND FEDERAL RESERVE DISTRICT, President WILLIAM F. MURRAY, SEVENTH FEDERAL RESERVE DISTRICT, Vice President RICHARD D. HILL, FIRST FEDERAL EDWIN S. JONES, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JAMES F. BODINE, THIRD FEDERAL DONALD R. GRANGAARD, NINTH RESERVE DISTRICT FEDERAL RESERVE DISTRICT M. BROCK WEIR, FOURTH FEDERAL EUGENE H. ADAMS, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOHN H. LUMPKIN, FIFTH FEDERAL BEN F. LOVE, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT LAWRENCE A. MERRIGAN, SIXTH GILBERT F. BRADLEY, TWELFTH FEDERAL RESERVE DISTRICT FEDERAL RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

79 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. Boy sen Denver 80217 Maurice B. Mitchell Wayne W. Martin 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 INDUSTRIAL PRODUCTION—1971 EDITION. 1972. 383 FUNCTIONS. 1974. 125pp. $1.00each; lOormore pp. $4.00 each; 10 or more to one address, $3.50 to one address, $.75 each. each. ANNUAL REPORT THE PERFORMANCE OF BANK HOLDING COMPANIES. 1967. 29 pp. $.25 each; 10 or more to one address, FEDERAL RESERVE BULLETIN. Monthly. $20.00 per $.20 each. year or $2.00 each in the United States, its possessions, Canada, and Mexico; 10 or more of same BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 pp. $1.00 each; 10 or more to one address, issue to one address, $18.00 per year or $1.75 $.85 each. each. Elsewhere, $24.00 per year or $2.50 each. SURVEY OF FINANCIAL CHARACTERISTICS OF CON- BANKING AND MONETARY STATISTICS, 1914-1941. (Reprint of Part 1 only) 1976. 682 pp. $5.00. SUMERS. 1966. 166 pp. $1.00 each; 10 or more to one address, $.85 each. BANKING AND MONETARY STATISTICS, 1941-1970. 1976. 1,168 pp. $15.00. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 pp. $1.00 each; 10 or more to one address, $.85 ANNUAL STATISTICAL DIGEST, 1970-75. 1976. 339 pp. each. $4.00 per copy for each paid subscription to Federal Reserve Bulletin. All others, $5.00 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- STUDY OF THE U.S. GOVERNMENT SECURITIES tion includes one issue of Historical Chart Book. MARKET. 1969. 48 pp. $.25 each; 10 or more to $12.00 per year or $1.25 each in the United States, one address, $.20 each. its possessions, Canada, and Mexico; 10 or more JOINT TREASURY-FEDERAL RESERVE STUDY OF THE of same issue to one address, $1.00 each. Else- GOVERNMENT SECURITIES MARKET: STAFF STUDwhere, $15.00 per year or $1.50 each. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more HISTORICAL CHART BOOK. Issued annually in Sept. to one address, $.40 each. PART 2. 1971. 153 pp. Subscription to Monthly Chart Book includes one and PART 3. 1973. 131 pp. Each volume $1.00; issue. $1.25 each in the United States, its posses- 10 or more to one address, $.85 each. sions, Canada, and Mexico; 10 or more to one OPEN MARKET POLICIES AND OPERATING PROCEaddress, $1.00 each. Elsewhere, $1.50 each. DURES—STAFF STUDIES. 1971. 218 pp. $2.00 CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per each; 10 or more to one address, $1.75 each. year or $.40 each in the United States, its posses- REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT sions, Canada, and Mexico; 10 or more of same MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. issue to one address, $13.50 per year or $.35 each. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Elsewhere, $20.00 per year or $.50 each. 10 or more to one address, $2.50 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY THE ECONOMETRICS OF PRICE DETERMINATION CON- SERIES OF CHARTS. Weekly. $15.00 per year or FERENCE, October 30-31, 1970, Washington, D.C. $.40 each in the United States, its possessions, 1972. 397 pp. Cloth ed. $5.00 each; 10 or more Canada, and Mexico; 10 or more of same issue to one address, $4.50 each. Paper ed. $4.00 each; to one address, $13.50 per year or $.35 each. 10 or more to one address, $3.60 each. Elsewhere, $20.00 per year or $.50 each. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE THE FEDERAL RESERVE ACT, as amended through De- FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. cember 1971, with an appendix containing provi- 487 pp. $4.00 each; 10 or more to one address, sions of certain other statutes affecting the Federal $3.60 each. Reserve System. 252 pp. $1.25. LENDING FUNCTIONS OF THE FEDERAL RESERVE REGULATIONS OF THE BOARD OF GOVERNORS OF THE BANKS. 1973. 271 pp. $3.50 each; 10 or more FEDERAL RESERVE SYSTEM to one address, $3.00 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- INTRODUCTION TO FLOW OF FUNDS. 1975. 64 pp. $.50 ERNORS, as of June 30, 1976. $2.50. each; 10 or more to one address, $.40 each. THE FEDERAL FUNDS MARKET. 1959. ILL pp. $1.00 IMPROVED FUND AVAILABILITY AT RURAL BANKS (Reeach; 10 or more to one address, $.85 each. port and study papers of the Committee on Rural TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 Banking Problems). 1975. 133 pp. $1.00 each; 10 each; 10 or more to one address, $.85 each. or more to one address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 81 IMPROVING THE MONETARY AGGREGATES (Report of the BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— Advisory Committee on Monetary Statistics). REVISED SERIES. 7/72. 1976. 43 pp. $1.00 each; 10 or more to one YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. address, $.85 each. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 10/72. STAFF ECONOMIC STUDIES REVISION OF CONSUMER CREDIT STATISTICS. 10/72. Studies and papers on economic and financial subjects ONE-BANK HOLDING COMPANIES BEFORE THE 1970 that are of general interest in the field of economic AMENDMENTS. 12/72. research. YIELDS ON RECENTLY OFFERED CORPORATE BONDS. 5/73. CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMER- SUMMARIES ONLY PRINTED IN THE BULLETIN (Limited supply of mimeographed copies of full text CIAL BANKS. 9/73. available upon request for single copies.) RATES ON CONSUMER INSTALMENT LOANS. 9/73. NEW SERIES FOR LARGE MANUFACTURING CORPORA- HOUSEHOLD-SECTOR ECONOMIC ACCOUNTS, by David TIONS. 10/73. F. Seiders. Jan. 1975. 84 pp. U.S. ENERGY SUPPLIES AND USES, Staff Economic THE PERFORMANCE OF INDIVIDUAL BANK HOLDING Study by Clayton Gehman. 12/73. COMPANIES, by Arthur G. Fraas. Aug. 1975. NUMERICAL SPECIFICATIONS OF FINANCIAL VARIABLES 27 pp. AND THEIR ROLE IN MONETARY POLICY. 5/74. THE GROWTH OF MULTIBANK HOLDING COMPANIES: INFLATION AND STAGNATION IN MAJOR FOREIGN IN- 1956-73, by Gregory E. Boczar. Apr. 1976. 27 DUSTRIAL COUNTRIES. 10/74. pp. THE STRUCTURE OF MARGIN CREDIT. 4/75. EXTENDING MERGER ANALYSIS BEYOND THE SINGLE- NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT MARKET FRAMEWORK, by Stephen A. Rhoades. SELECTED LARGE COMMERCIAL BANKS. 4/75. May 1976. 25 pp. RECENT TRENDS IN FEDERAL BUDGET POLICY. 7/75. SEASONAL ADJUSTMENT OF MX—CURRENTLY PUB- BANKING AND MONETARY STATISTICS, 1974. Selected LISHED AND ALTERNATIVE METHODS, by Edward series of banking and monetary statistics for 1974 R. Fry. May 1976. 22 pp. only. 2/75, 3/75, 4/75, and 7/75. EFFECTS OF NOW ACCOUNTS ON COSTS AND EARNINGS RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL OF COMMERCIAL BANKS IN 1974-75, by John D. MARKETS. 10/75. Paulus. Sept. 1976. 49 pp. MINNIE: A SMALL VERSION OF THE MIT-PENN-SSRC ECONOMETRIC MODEL, Staff Economic Study by Douglas Battenberg, Jared J. PRINTED IN FULL IN THE BULLETIN Enzler, and Arthur M. Havenner. 11/75. Staff Economic Studies shown in list below. AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff Economic Study by Robert J. Lawrence and REPRINTS Samuel H. Talley. 1/76. (Except for Staff Papers, Staff Economic Studies, and INDUSTRIAL ELECTRIC POWER USE. 1/76. some leading articles, most of the articles reprinted do REVISION OF MONEY STOCK MEASURES. 2/76. not exceed 12 pages.) SURVEY OF FINANCE COMPANIES, 1975. 3/76. SEASONAL FACTORS AFFECTING BANK RESERVES. 2/58. CHANGING PATTERNS IN U.S. INTERNATIONAL TRANS- MEASURES OF MEMBER BANK RESERVES. 7/63. ACTIONS. 4/76. RESEARCH ON BANKING STRUCTURE AND PERFORM- REVISED SERIES FOR MEMBER BANK DEPOSITS AND ANCE, Staff Economic Study by Tynan Smith. AGGREGATE RESERVES. 4/76. 4/66. BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS A REVISED INDEX OF MANUFACTURING CAPACITY, IN 1975. 4/76. Staff Economic Study by Frank de Leeuw with CHANGES IN BANK LENDING PRACTICES, 1975. 4/76. Frank E. Hopkins and Michael D. Sherman. 11/66. INDUSTRIAL PRODUCTION—1976 Revision. 6/76. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- 1960-67. 4/68. NISMS: A SUMMARY. 6/76. MEASURES OF SECURITY CREDIT. 12/70. CHANGES IN TIME AND SAVINGS DEPOSITS AT COM- REVISED MEASURES OF MANUFACTURING CAPACITY MERCIAL BANKS, January-April 1976. 10/76. UTILIZATION. 10/71. RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF REVISION OF BANK CREDIT SERIES. 12/71. FOREIGN BANKS. 10/76. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- U.S. BANKS. 2/72. FACTURING AND MATERIALS. 11/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • November 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

83 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 International transactions, 68, 69 LABOR force, 52 New issues, 37, 38, 39 Life insurance companies (See Insurance companies) Yields and prices, 28, 29 Loans (See also specific types of loans): Special Drawing Rights, 2, 10, 58, 59 Banks, by classes, 14, 16, 18, 30 State and local govts.: Commercial banks, 13, 14, 16, 18, 23, 25, 26 Deposits, 17, 20 Federal Reserve Banks, 2, 4, 6, 10, 11 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 State member banks, 15, 24 MANUFACTURERS: Stock market credit, 29, 30 Capacity utilization, 50 Stocks (See also Securities): Production index, 49, 50 New issues, 38, 39 Margin requirements, 8 Yields and prices, 28, 29 Member banks: 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

84 Federal Reserve Bulletin • November 1976 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis^1, Chicago | OmaU* KansasCitiff } ^ t fCharCo<* i — p i M^ Oklahoma Citjf Dallas Jiousam 3 o- <5, H AWAII : ••; <0 • ® LEGEND Boundaries of Federal Reserve Districts © Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation and Statistical Releases SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the particn.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 44U.S. Govt, securities" may include guaranteed are estimates; and (3) information on other characissues 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