Federal Reserve Bulletin, 1976-12

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

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

FEDERAL RESERVE BULLETIN NUMBER 12 • VOLUME 62 • DECEMBER 1976 CONTENTS 979 Nonbank Thrift A1 Financial and Business Statistics Institutions in 1975 and 1976 A1 Contents 986 Survey of Time A2 U.S. Statistics and Savings Deposits, July 1976 A58 International Statistics 1004 Treasury and Federal Reserve A76 Board of Governors and Staff Foreign Exchange Operations: Interim Report A78 Open Market Committee and Staff; Federal Advisory Council 1012 Statements to Congress A79 Federal Reserve Banks and Branches 1019 Record of Policy Actions A80 Federal Reserve Board Publications of the Federal Open Market Committee A85 Index to Statistical Tables 1035 Law Department A87 Index to Volume 62 1061 Announcements A98 Guide to Tabular Presentation and 1063 Industrial Production Statistical Releases: Reference A99 Map of Federal Reserve System 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

Nonbank Thrift Institutions in 1975 and 1976 This article was prepared in the Capital Mar- for purchases of newly built houses. The subsekets Section of the Division of Research and quent expansion in residential construction has Statistics. been steady, though relatively moderate, as inflation and other problems continue to beset the Savings and loan associations, mutual savings industry. The multifamily sector remained parbanks, and credit unions have all enjoyed unu- ticularly weak until this past summer because sually large deposit inflows over the past 2 of previous overbuilding in some parts of the years. During most of this period, interest rates country, unprofitability of apartment conavailable on deposits at these institutions have struction, and constraints on the supply of funds compared favorably with yields on investment both for permanent financing and for conalternatives in the open market. Fluctuations in struction loans on multifamily dwellings. market rates of interest have occasionally in- Funds for single-family dwellings, on the duced slowdowns in deposit growth, but these other hand, have been ample for most of the slowdowns have been mild and have had little past 2 years. Moreover, the ability of savings lasting impact on the balance sheets of the and loan associations and mutual savings banks institutions. to withstand periods of financial stress seems In late 1974 and early 1975 thrift institutions to have improved during this period because of used a large part of their rising deposit flows changes both in their deposit structure and in to replenish depleted reserves of liquid assets the financial services they can offer. For exand to repay outstanding borrowings, which had ample, the ceilings established in 1973 and 1974 reached record levels. Then, as liquidity posi- on newly authorized 4- and 6-year certificates tions improved, savings and loan associa- of deposit (CD's) have enabled these institutions tions—the principal suppliers of residential to attract a large part of their recent inflows mortgage credit—increased their loan commit- to the longer-term accounts, thus reducing their ments in this market. Since the spring of 1975 dependence on volatile movements of shorttheir acquisitions of mortgages have expanded term deposit funds. Meanwhile, thrift institualmost continuously. Mutual savings banks, tions in some parts of the country have begun with a greater variety of investment alternatives, to take advantage of expanded consumer loan have resumed their lending in the mortgage powers, variable-rate mortgage instruments, and market much more gradually. Credit unions, several forms of third-party-payment accounts which had felt the impact of disintermediation for consumers in order to broaden the range of in 1974 to a lesser degree than the other institu- their family-oriented financial services. tions, have expanded their consumer loans substantially since mid-1975, as they too have experienced a larger deposit inflow. SOURCES AND USES OF FUNDS The increasing availability of residential mortgage credit over the past 2 years has pro- In late 1974 and early 1975, as the economic vided an important stimulus for housing con- recession deepened and as pressures in credit struction. Sales of single-family houses began markets eased dramatically, interest rates deto rise gradually in the spring of 1975 when clined sharply from their historic highs of the the effects of easier availability of mortgage preceding summer. Deposit flows into the noncredit were reinforced by a Federal tax credit bank thrift institutions—as well as into com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 Federal Reserve Bulletin • December 1976 mercial banks—accelerated rapidly during the mained weak. These trends continued into the fourth quarter of 1974, largely in response to first quarter of 1975, as deposit flows expanded the decline in market yields. Late in the quarter further. At that point, savings and loan associaseveral regulatory changes also enhanced the tions also began to repay borrowed funds, most capability of mutual savings banks and savings of which had been obtained through the Federal and loan associations to compete effectively for Home Loan Bank (FHLB) System. Mutual savnew deposits. These changes included a new ings banks—most of which have elected not to 6-year certificate with a ceiling of 7% per cent, join the FHLB System—did not begin the period a new rate ceiling on time deposits of any with large amounts of borrowed funds; they maturity held by governmental units (also set began to acquire longer-term securities as their at 7% per cent), and substantial increases in the liquidity improved. Neither the savings and loan maximum deposit insurance available at Feder- associations nor the mutual savings banks inally insured institutions for both private and creased their commitments to the mortgage public funds. market much during the first quarter of 1975. With stronger deposit flows during the fourth In the second quarter, however, savings and quarter of 1974, savings and loan associations loan associations started to make new commitand mutual savings banks began to rebuild their ments for home mortgages at a more rapid liquid assets, and at the same time they exer- pace—the combined result of continuing cised restraint in making new mortgage com- strength in deposit flows and the beginning of mitments. Credit unions also accumulated a expansion in sales of single-family homes. Mularge amount of liquid assets because demand tual savings banks increased their support to the for consumer loans from such institutions re- mortgage market much more cautiously, continuing instead to invest in liquid assets and other securities, primarily corporate bonds. De- Deposit growth rates and interest rates posit inflows to all depositary institutions were especially high during this quarter, in part as Per cent, seasonally adjusted annual rate a result of the 1975 Tax Reduction Act that had DEPOSIT GROWTH been passed in March. Under this legislation, Credit unions between mid-May and the end of June taxpayers received $8 billion in rebates on their previous year's income tax returns. Supplemental social security benefits also contributed to the heavier deposit flows during the quarter. At savings and Mutual savings banks loan associations and mutual savings banks, the bulk of the growth was concentrated in traditional savings (passbook-type) accounts and in certificates maturing in 4 years or more. In the third quarter, with the completion of INTEREST RATES Treasury securities the rebates and special social security payments, 5-year deposit flows into thrift institutions slowed ap- US preciably. Some depositors used funds lodged 4-year certificate Treasury bills maximum temporarily in passbook-type accounts for 3-month spending purposes. Others were attracted to alternative investments by rising market interest Passbook-type rates; among these alternatives were several maximum intermediate-term Treasury notes auctioned during the summer to help finance an unusually Ceilings apply to mutual savings banks and Federally insured high Federal Government deficit. Responding to savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions in 1975 and 1976 981 the slower deposit growth, mutual savings banks of mortgage loan commitments they had made scaled down their acquisitions of liquid assets in the previous quarter; however, new commitand other securities. Savings and loan associa- ments of funds by these institutions continued tions also reduced their purchases of liquid to grow. Developments during the fourth quarter assets and cut back sharply their repayments of of 1975 followed essentially the pattern of the borrowings in order to meet the large quantity third, as market yields declined modestly but Sources and uses of funds In billions of dollars at seasonally adjusted annual rates 1975 1976 FFuunnddss 11997744 Q1 Q2 Q3 Q4 QL Q2 PQ3 Savings and loan associations SSOOUURRCCEESS:: Deposits 16.0 41.3 51.2 42.3 37.5 53.7 42.8 53.8 Borrowed funds 7.8 -8.8 -8.3 -1.5 2.5 -.4 -2.7 -3.5 Other sources, net1 -1.6 -1.9 -.1 .1 -1.3 -.4 2.3 -.3 Total 22.0 30.5 42.8 41.0 38.8 52.8 42.5 50.1 USES: Cash and liquid assets2 2.6 13.8 16.6 6.4 2.8 18.5 -.6 2.4 O M t o h r e t r g a lo g a es n s and investments3 19. . 0 5 15 1 . . 2 4 25. . 8 3 33. . 9 7 35. . 9 1 34. . 2 1 42. . 7 3 47 ( .74 ) Total 22.0 30.5 42.8 41.0 38^8 52.8 42.5 50.1 Mutual savings banks SSOOUURRCCEESS:: Deposits 3.1 11.4 13.9 10.7 8.7 13.8 10.0 11.2 Other sources, net5 .2 1.0 -1.0 -1.1 -.1 2.2 -1.3 -.1 Total 3.3 12.5 12.9 9.6 8.9 15.9 8.7 11.0 US C ES a : s h and liquid assets6 ((44)) 4.5 4.0 4.2 3.6 6.2 1.8 3.8 Mortgages 2.2 .9 2.6 2.8 3.0 2.0 2.9 4.4 Other loans and investments7 10 7.0 6.4 2.5 2.1 7.6 4.1 2.8 Total 3.3 12.5 12.9 9.6 8.9 15.9 8.7 11.0 Credit unions SSOOUURRCCEESS:: Shares 3.0 5.9 5.7 5.2 5.4 6.2 5.3 5.6 Current surplus .3 .4 .4 .4 .4 .4 .4 .4 Total 3.3 6.2 6.1 5.6 5.7 6.6 5.7 6.0 USES: Cash and liquid assets8 .6 3.6 3.5 1.3 1.6 1.1 .1 1.1 C M o o n r s t u ga m g e e r s credit 2. . 5 1 2. . 5 2 2. . 4 2 4. . 1 2 4. . 0 1 5. . 3 l 5.6 4 ( .94 ) Total 3.3 6.2 6.1 5.6 5.7 6.6 5.7 6.0 includes net changes in miscellaneous liabilities and current surplus less net change in assets not set out separately in the "uses" statement. 2Includes net changes in deposits and currency, U.S. Treasury and agency securities, open market paper, Federal funds, and repurchase agreements. 3 Includes net changes in State and local securities and consumer credit. 4Less than $50 million in absolute value. 5 Includes net changes in miscellaneous liabilities and general reserve accounts less net change in other assets not set out separately in the "uses" statement. 6Includes net changes in cash and deposits, U.S. Treasury and agency securities, commercial paper, and security repurchase agreements. 7Includes corporate bonds and stock, State and local securities, and consumer credit. 8Includes demand deposits and currency, savings and loan shares, and U.S. Government securities. p Preliminary. NOTE.—Detail may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 Federal Reserve Bulletin • December 1976 still remained above regulatory interest rate concentrated in the Northeast. This area has ceilings on deposits with comparable maturities. experienced slower rates of population growth Early in 1976 most market yields fell below and economic expansion in recent years. Morethese ceilings and remained there for almost the over, investors in the Northeast tend to be more entire first half of the year. Deposit growth at sensitive to the open market alternatives to dethrift institutions rebounded immediately, and posit accounts. Therefore, funds typically move inflows continued to be large during most of more rapidly out of mutual savings banks that time. As liquid asset holdings rose further, whenever market yields rise much above the some institutions—particularly in regions where ceilings on deposit accounts. real estate markets were comparatively slug- Credit unions enjoyed a somewhat larger gish—began to take actions to discourage de- percentage rate of expansion than the other two posit flows, especially in the higher-cost, 4- and types of institutions, though this difference was 6-year accounts. Such actions included not only much smaller in 1975 and 1976 than during the cuts in interest rates but also less prominent previous 2 years. Credit unions can offer up to advertising, larger minimum denominations, 7 per cent on their share accounts—a rate of longer minimum maturities, fewer nonpecu- interest substantially higher than the 5 lA per cent niary incentives for opening new accounts, and available on similar passbook-type deposits at changes in methods of computing interest rates. savings and loan associations and mutual sav- Despite these efforts, deposit inflows have ings banks. By regulation, Federally chartered generally continued at a rapid pace—decel- credit unions cannot offer deposit certificates, erating somewhat in June and then acceler- and most State-chartered credit unions are reating again in the third quarter in response to stricted in much the same way. fluctuations in market rates of interest. Since In their uses of funds, savings and loan asso- September, deposit growth has tapered off to ciations and credit unions followed similar a rate more in line with the longer-term trend courses of action during the past 2 years. Both rate of increase of 12% per cent per year for types of institutions are limited to a large degree all three institutions combined. Savings and loan by regulations and by custom to lending in a associations have continued to supply funds in particular market—the mortgage market for record quantities to the mortgage market, and savings and loan associations and the consumer mutual savings banks—beginning this past loan market for credit unions. Both replenished spring—have also increased their mortgage ac- their liquidity during the early months of 1975 quisitions significantly. before stepping up their principal lending functions. An expansion in consumer loan demand at credit unions began to occur in the second half of 1975 as the upturn in economic activity A COMPARISON led to an increase in consumer spending. Since OF THE INSTITUTIONS then, credit unions have allocated a significant amount of funds to such loans. Despite broad similarities in the factors affecting Until the middle of 1975, savings and loan deposit growth in general, important institu- associations used their increased deposit flows tional and geographic differences among the to repay borrowings and to build up liquid three major types of thrift institutions influenced assets. By June, advances by the Federal home their sources and uses of funds over the past loan banks to these institutions had dropped to 2 years. For example, inflows of deposits into about three-quarters of the record level of $21.5 mutual savings banks were much smaller, and billion in December 1974, and the liquidity ratio also relatively more variable, than those at the of associations insured by the Federal Savings savings and loan associations. This has been and Loan Insurance Corporation had risen above true during much of the postwar period and is 10 per cent. Prepayment penalties and relatively related to the fact that mutual savings banks are attractive borrowing rates in some instances kept Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions in 1975 and 1976 983 Savings and loan associations ular, the experiences of these institutions during Mortgage commitments and cash flow 1973 and 1974. Moreover, long-term corporate Billions of dollars bonds have generally offered more advantageous yields than the net returns on most types of mortgages over the past 2 years, though this spread has largely disappeared in recent months. Given the concentration of mutual savings banks Commitments / outstanding^^ in New York State—about 55 per cent of total deposits in the industry—that State's usury ceiling of 8V2 per cent has also been a barrier to lending in local markets. Like the savings and loan associations, savi f i \ i Ratio ings banks purchased liquid assets in significant quantities especially at the beginning of the period; however, they placed a large part of their remaining funds in corporate bonds and, to a lesser extent, in mortgage-backed securities guaranteed by the Government National Mortgage Association (GNMA). The total outstanding volume of these securities, which are much more liquid than standard mortgage instruments, has grown by an estimated $15.1 billion since Data are for Federally insured savings and loan associations and are seasonally adjusted. Commitments are as of the begin- the end of 1974. Savings and loan associations ning of the quarter and include loans in process. Cash flow includes mortgage repayments and net changes in deposits. and savings banks together have acquired about $4.5 billion, or about 30 per cent of the total. Over the past 2 years the earnings of savings home loan bank advances from declining more and loan associations and mutual savings banks rapidly than they did. have risen as their total assets have increased Beginning in the second quarter of 1975 and and as the spread between asset yields and the extending through the end of 1976, mortgage cost of funds has widened. However, the concommitments outstanding (including loans in trasting investment behavior of these institutions process) at Federally insured associations has significantly affected the relative pace of climbed steadily to a record $23.5 billion—al- improvement. For example, the net income of most twice the level prevailing only 2 years Federally insured savings and loan associations earlier. Net deposit flows and mortgage repay- dropped somewhat in early 1975 from the alments—the two major sources of funds—kept ready depressed 1974 levels because these inpace with this expansion. Consequently, the stitutions concentrated on acquiring liquid ratio of commitments to cash flows from these assets, whose yields were low. Subsequently, sources remained relatively stable following a the earnings of these institutions expanded after decline early in 1975. they began to make more mortgage loans; this Because of their wider range of investment expansion continued into the first half of 1976. alternatives and their more limited sources of Mutual savings banks, on the other hand, expeborrowings, mutual savings banks did not re- rienced an earlier rebound in their income as sume their direct lending in the mortgage market investments in long-term securities immediately nearly so rapidly as did savings and loan asso- brought higher returns. However, beginning ciations. The greater reluctance of savings banks early in 1976, their earnings have grown less to commit future cash flow to the mortgage rapidly than those of the savings and loan assomarket may reflect the sensitivity of their deposit ciations because yields on corporate bonds have flows to interest rate fluctuations and, in partic- declined more rapidly than mortgage yields. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 Federal Reserve Bulletin • December 1976 INNOVATIONS which on a yield basis have been relatively AND REGULATORY CHANGES attractive in the past 2 years. Consumer response to the long-term certifi- In recent years a number of regulatory changes cates has been favorable. The funds that savings and financial innovations have had significant and loan associations have attracted since mideffects on thrift institutions. The most im- 1973 into accounts with original maturities of portant of these has been the introduction of at least 4 years now amount to slightly more separate ceilings on long-term CD's of less than than one-third of all outstanding deposits; mu- $100,000. In 1973 the Federal agencies regu- tual savings banks have about 20 per cent of lating savings and loan associations and mutual their deposits in such accounts. In spite of two savings banks authorized separate ceilings of severe episodes of disintermediation in 1973 and 6% and IV2 per cent on CD's with minimum 1974, the institutions have recorded net inmaturities of 2V2 and 4 years, respectively. In creases in time deposits during each calendar late 1974 a new certificate maturing in 6 years quarter since these accounts were first introor more was added to the schedule of accounts duced in mid-1973, and growth in time deposits that these institutions could offer. Also, the in the most recent 2 years has provided an Employee Retirement Income Security Act of underlying source of stability to over-all deposit 1974 permitted the creation of individual retireexpansion. Even with the success of the new ment accounts, which enable individuals not certificates in drawing funds, about half of all covered by pension plans to set aside retirement outstanding deposits still remain in passbookfunds in tax-deferred deposit accounts or other type accounts at savings and loan associations investment vehicles. All of these regulatory and mutual savings banks. changes have created additional demand for the Other developments have affected the liability longer-term certificates at thrift institutions, structure of some, but not all, institutions. For example, since 1972 mutual savings banks in Deposit mix at savings and loans Massachusetts and New Hampshire have offered and mutual savings banks their customers negotiable order of withdrawal (NOW) accounts—interest-bearing savings ac- Per cent counts that are similar to checking accounts. SAVINGS AND LOANS Commercial banks and Federally insured savi Passbook-type Time ings and loan associations and mutual savings banks in these two States were authorized to issue NOW accounts in 1974, and this authorization was extended to similar institutions throughout New England earlier this year. Outstanding NOW account balances at thrift institutions in August were about $750 million, a 56 per cent increase over the level at the begin- MUTUAL SAVINGS BANKS ning of the year. Other innovations in payments Time •20 Passbook-type services at thrift institutions—such as checking accounts, non-interest-bearing NOW accounts, telephonic transfers, and credit union share 110 drafts—have developed less rapidly. i On the asset side, limited progress has been made in diversifying the balance sheets of thrift 1975 1976 institutions. Some State-chartered savings and loan associations in California and the Midwest Annual rates of growth based on seasonally adjusted data. have successfully marketed variable-rate home Savings and loan associations are Federally insured. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions in 1975 and 1976 985 mortgages, but similar capabilities for Federally The ultimate impact of these developments chartered institutions are prohibited by Federal on the thrift institutions is not clear at this stage. regulations. Mutual savings banks and State- Future events will be strongly affected by the chartered savings and loan associations in Con- extent to which the powers of these institutions necticut, Maine, and New York recently have are extended to regions and markets where exbeen authorized to make consumer loans on an isting Federal and State statutes are currently expanded scale, as well as to provide checking more restrictive. The additional flexibility accounts. Credit unions have begun to supply gained by such powers, however, should enable a limited quantity of mortgage credit, but they thrift institutions to compete more vigorously too are constrained by regulations on the size for deposits and to retain them more successand maturity of individual loans and also by fully throughout the business cycle than they the smaller scale of their operations. have in the past. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 Survey of Time and Savings Deposits, July 1976 The survey of time and savings deposits—con- garding the publication of the survey data, deducted quarterly by the Federal Reserve and the scribes the statistical methodology used, and Federal Deposit Insurance Corporation—has shows the results of the first revised survey. undergone major revisions beginning with the survey for July 28, 1976.1 Modifications include a 75 per cent reduction in the number of banks THE SAMPLE in the sample; expansion of deposit coverage to include holdings by units other than individ- Because the new survey was designed to provide uals, partnerships, and corporations (IPC); only national estimates of bank deposits and segregation of savings and small-denomination interest rates rather than estimates for standard time deposits according to ownership; adoption metropolitan statistical areas (SMSA's), it was of additional maturity breakdowns for small-de- practicable to reduce sharply the size of the nomination time deposits; and modification of sample and thus to reduce the annual cost of the timing of the report. These changes will the survey. Specifically, the new sample conlessen the reporting burden on banks, reduce sists of 320 member and 238 nonmember banks, the annual cost of the survey, ultimately shorten compared with the previous sample of 1,400 the time required to process the data, and at member and 1,050 nonmember banks. Estithe same time increase the value of the survey mates of deposit levels and interest rates by for administering Regulation Q and analyzing SMS A, achievable only with the larger sample, movements in the monetary aggregates. were eliminated because they proved to have little analytical value in light of the uniformity This article describes the changes made in the of offering rates among SMSA's. various aspects of the survey, including types of deposits covered, frequency and timing of In addition, the new survey discontinues the the survey, and characteristics of the revised practice of collecting data from all member bank sample; it also provides information re- banks each October—an extremely expensive procedure for the banking system and for the Federal Reserve and the FDIC. The primary NOTE.—This article was written by John R. Williams, with the section on Statistical Methodology purpose of the expanded survey in October had prepared by Darrel W. Parke. The authors, both of the been to check the accuracy of the estimation Board's Division of Research and Statistics, wish to techniques; for the new survey, such checks will thank Robert C. Holt of the Division of Data Processing, whose team of programmers implemented the new sta- be made by using data from the quarterly report tistical procedures. of condition (call report). 1 Surveys of time and savings deposits (STSD) at all member banks were conducted by the Board of Governors in late 1965, in early 1966, and quarterly in 1967. In January and July 1967 the surveys also included data DEPOSIT CATEGORIES for all insured nonmember banks collected by the Federal Deposit Insurance Corporation (FDIC). Since the The new reporting form and the instructions beginning of 1968 the Board of Governors and the FDIC have jointly conducted quarterly surveys to provide (Exhibit 1) cover all time and savings deposits, estimates for all insured commercial banks based on rather than IPC's only, and savings and smalla probability sample of about 1,400 member banks and denomination time deposits are segregated by 1,050 nonmember banks. The results of all earlier surveys have appeared in previous BULLETINS from ownership class. For each deposit category on 1966 to 1976, the most recent being October 1976. the new form, respondents supply data on out- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 987 standing dollar amounts as of the survey date. This division provides data with which to assess In addition, they report the most common inter- the impact of the amendment to Regulation Q est rate paid for new deposits of each type, in late 1974 that permits banks to pay interest except large-denomination time deposits and on small-denomination time deposits held by non-interest-bearing time deposits. An item-by- governmental units at rates as high as the maxiitem description of changes in the survey form mum permitted at any Federally insured institufollows. tion on any such deposits, without regard to maturity. Although in previous surveys small-denomi- ITEM 1, SAVINGS DEPOSITS nation time deposits were classified according Savings deposits are divided into four ownership to maturity, no distinction was made among classes: individuals and nonprofit organizations, maturities of less than 1 year. In order to deterpartnerships and corporations operated for mine accurately the maturity structure of these profit, domestic governmental units, and all very short-term deposits, the revised survey other. The first two categories correspond to the includes three additional breakdowns for smallsingle IPC savings deposit item reported in the denomination time deposits reported under both old survey. Taken separately, the four owner- ownership classes. The new categories are 30 ship categories will make possible close moniup to 90 days, 90 up to 180 days, and 180 days toring of developments resulting from changes up to 1 year. These categories have become in Regulation Q that permit commercial banks especially important in light of recent changes to offer savings deposits to governmental units in reserve requirements for member banks that (effective November 1974) and businesses (efdifferentiate among time deposits with original fective November 1975). maturities of 180 days or more and those with shorter maturities. ITEM 2, CLUB ACCOUNTS ITEM 4, INTEREST-BEARING, LARGE- Included in club accounts are deposits in Christmas savings, vacation, or similar club DENOMINATION TIME DEPOSITS accounts. Unlike the special funds category re- Regardless of negotiability, ownership, or maported in previous surveys, this item excludes turity, all interest-bearing, large-denomination open account time deposits of the bank's own time deposits are reported in Item 4. The exclutrust department and all time accounts, other sion of non-IPC deposits from this category in than club accounts, on which no interest is paid. previous surveys had been particularly unde- Deposits in these two types of accounts are sirable since more than 40 per cent of all largereported on the new form under the appropriate denomination time deposits are held by non-IPC time deposit items.2 customers—mostly State and local governments. ITEM 3, INTEREST-BEARING, SMALL- Unlike previous surveys, however, the re- DENOMINATION TIME DEPOSITS vised survey does not collect interest rate data for large-denomination time deposits for several Small-denomination time deposits are divided reasons. First, offering rates on such deposits between those issued to domestic governmental vary with the maturity of the deposit; in order units and those issued to all other customers. to reduce the reporting burden, information on rates for large-denomination deposits had been collected in earlier surveys for only the total 2That is, interest-bearing time deposits of the bank's of all maturities combined. Such offering rates own trust department are included in either the appro- also tend to be highly variable, so single-day priate small-denomination time deposit maturity cate- observations are of questionable analytic value. gory (Item 3) or the interest-bearing, large-denomi- In addition, offering rates on large negotiable nation time deposit category (Item 4). All non-interestbearing time deposits are reported in Item 5. certificates of deposit (CD's), by maturity, are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 Federal Reserve Bulletin • December 1976 already collected from a small sample of large banks, based on quarterly surveys, will continue banks.3 to be published in the BULLETIN along with revisions in data for the previous survey. The possibility of revisions stems from the nature ITEM 5, NON-INTERESTof the statistical technique employed to produce BEARING TIME DEPOSITS aggregate estimates based on the sample data. All non-interest-bearing time deposits other than For example, the procedure for estimating the club accounts are included in Item 5. The old July data reported in this article made use of survey included non-interest-bearing time de- the lastest available report of condition (call posits among the mixture of deposits reported report for March), but when a later call report as special funds, thus making it impossible to (June) becomes available, data will be re-estidifferentiate among the developments in the mated and any revisions will be published. various types of accounts. In addition, the new Data on interest rates for individual banks in survey disaggregates non-interest-bearing de- the sample, including both member and nonposits according to denomination in order to member banks, will be made available to the make possible a more precise measure of total public upon request.4 time deposits over $100,000. STATISTICAL METHODOLOGY FREQUENCY AND TIMING REPORTING PANEL The frequency of the survey remains quarterly—it is conducted in the months of January, As previously indicated, the design for the re- April, July, and October—but the reporting day vised STSD called for a considerable reduction within the month has been changed from the in the number of commercial banks included in last business day to the last Wednesday. The the reporting panel. Previously, about 1,400 rationale for changing the survey day is to member banks of the Federal Reserve System permit editing against other banking data re- and 1,050 insured nonmember banks had reported as of the last Wednesday. ported on each of the quarterly surveys. From 1968 to 1974 the remaining member banks had Interest rates reported by individual banks are reported once a year—in the October survey. stated rates per annum (before compounding) Estimates for the population of member banks paid on the largest* dollar volume of deposit were based on sample-to-population relationinflows during a specified period immediately ships determined from the previous October's preceding the survey date. In the new survey survey. Estimates for the population of nonthe length of this period has been reduced from member banks were based on certain sample- 30 days to 2 weeks. As for deposit levels, to-population relationships determined from a respondents continue to report single-day recent call report. amounts outstanding—that is, as of the survey date. The present reporting panel consists of 558 insured commercial banks (320 member and 238 nonmember). All of the 117 banks that had time and savings deposits of more than $400 million DATA AVAILABILITY as of December 31, 1975, are included in the The processing of the data will require less time panel. The remaining 441 banks were chosen in the new survey and will ultimately allow on a stratified, random basis from the 2,300 publication of more timely results than in the smaller banks in the previous reporting panel. past. Aggregate estimates for all commercial 4 Requests should be addressed to Freedom of Infor- 3 These data are published weekly in the FR 1126 mation Office, Board of Governors of the Federal Restatistical release. serve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 989 The restriction to the previous panel was made nizations as reported on a previous call report. to ease the transition to the revised survey. An The covariates for other items may be more analysis of historical data indicates that the complicated. For example, the covariate for restriction causes no loss in the accuracy of the large-denomination, interest-bearing time depopulation estimates. Once selected, the sample posits at member banks that are not weekly was inspected to insure that its geographic dis- reporting banks is the product of total time tribution is similar to that of the population. deposits on the report date and the ratio of From time to time, slight modifications will large-denomination to total time deposits on a be made in the reporting panel as sample banks previous call report date. merge, drop from the sample, or change their The second step is to compare the first estimembership status. The selection of additional mates of total time and savings deposits to or replacement banks will be made without separate estimates of the same totals made in regard to whether a bank was in the previous connection with the construction of money stock panel. (M ) measures. To produce estimates that are 2 The reduction in sample size was made to consistent with these measures, the total time reduce the reporting burden on commercial and savings estimates are adjusted to conform banks, the data processing costs of the Federal with the money stock estimates, with the difagencies, and—hopefully—the time lag be- ference being allocated to the subcategories in tween the report date and the publication of inverse proportion to the estimated precision of results. The reduction in sample size means that the first estimates. it is no longer possible to obtain reliable esti- The first published estimates will generally mates for SMSA's. Thus, there will be no counterpart to Table 3 of the previous reports. Sampling Standard Errors for STSD Aggregates CONSTRUCTION OF ESTIMATES Type of deposit Percentage of aggregate The estimates of interest rates are constructed by assuming that the distribution of rates among Savings deposits issued to: Individuals and nonprofit organizations .5 banks in a given stratum is the same as the Partnerships and corporations operated for profit (other than commercial banks) .. 5.1 distribution among sample banks in that stra- Domestic governmental units 9.8 tum. Average rates for a stratum are weighted All other 27.3 averages of the rates reported by the sample Club accounts (Christmas savings, vacation, or similar club accounts) 10.9 banks, with the weights being proportional to All other interest-bearing time certificates and the relevant deposits at the sample banks. These open account deposits in denominations stratum averages are themselves averaged—this of less than $100,000: Accounts issued to domestic governmental time the weights being proportional to the esti- units with original maturities of— 30 up to 90 days 21.6 mated deposits of banks in the strata—to obtain 90 up to 180 days 9.1 180 days up to 1 year 26.8 the estimated averages presented in this article. 1 year or more 28.4 Estimates of deposit aggregates are obtained Accounts issued to other than domestic governmental units with original maturities through a two-step procedure. For each type of of— 30 up to 90 days 7.2 deposit, a covariate is selected whose value is 90 up to 180 days 4.5 known for each bank in the population. The total 180 days up to 1 year 7.1 1 up to 2Vz years 3.1 of that type of deposit at the sample banks is 2V2 up to 4 years 3.7 4 up to 6 years 2.2 multiplied by the ratio of the total of the co- 6 years or more 4.5 variate at the population of banks to the total All interest-bearing time deposits in denomiof the covariate at the sample banks to obtain nations of $100,000 or more the "first estimate." For example, the covariate Non-interest-bearing time deposits in denominations of: for club accounts at nonmember banks is sav- Less than $100,000 29.5 ings deposits of individuals and nonprofit orga- $100,000 or more 5.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 Federal Reserve Bulletin • December 1976 be developed by using data from a call report TABLE 1 that precedes the STSD report date by 4 months. Types of time and savings deposits held by When data from a more recent call report beinsured commercial banks on survey date, come available, the estimates will be revised. July 28, 1976 For example, the estimates presented in this article were prepared by using data from the Number of Amount (in March 1976 call report. In the next of this series issuing millions of Type of deposit banks dollars) of articles, it is expected that revised estimates July 28, July 28, 1976 1976 for July 28 based on data from the June 1976 call report will be presented. Total time and savings deposits 14,328 470,011 The sampling standard errors for averages of Savings 14,298 183,025 Issued to: most common rates paid are all less than 0.02 Individuals and nonprofit organizations 14,159 172,907 per cent. The estimated sampling standard errors Partnerships and corporations operated for profit (other than comfor the aggregates are presented in the accom- mercial banks) 8,051 6,666 Domestic governmental units 6,066 3,317 panying tabulation. All other 992 135 Interest-bearing time deposits in denominations oi less than $100,000 14,021 146,566 Issued to: Domestic governmental units 10,877 6,416 Accounts with original maturity of: SURVEY RESULTS 30 up to 90 days 4,963 1,678 90 up to 180 days 7,553 1,139 180 days up to 1 year 4,387 780 Because the July survey differs from earlier 1 year and over 8,172 2,819 Other than domestic governmental surveys,5 it is not possible to determine pre- units 13,798 140,150 Accounts with original maturity of: cisely the changes in time and savings deposits 30 up to 90 days 6,743 8,518 90 up to 180 days 10,980 26,793 between April and July. Accordingly, the fol- 180 days up to 1 year 8,468 4,413 lowing discussion focuses primarily on levels 2 1 V u i p u p to t 2 o y 4 2 y y e e a a r r s s 1 11 2 , , 9 8 0 5 5 0 3 1 1 8 , , 7 7 9 4 6 0 4 up to 6 years 11,640 41,738 of, not changes in, deposits and interest rates. 6 years and over 7,923 8,152 Time and savings deposits at insured com- Interest-bearing time deposits in denominations of $100,000 or more. 11,150 133,491 mercial banks totaled just over $470 billion on Non-interest-bearing time deposits in July 28, 1976. Savings deposits of $183 billion denominations of 1,585 4,921 Less than $100,000 1,298 1,701 accounted for a little less than 40 per cent of $100,000 or more 619 3,220 the total. The remaining 60 per cent consisted Club accounts (Christmas savings, vacation, or similar club account). . . 9,082 2,008 of $148 billion of small-denomination (less than $100,000) time deposits and $137 billion of NOTE.—All banks that had either discontinued offering or never offered certain deposit types as of the survey date are not counted as large-denomination ($100,000 and over) time issuing banks. However, small amounts of deposits held at banks that had discontinued issuing certain deposit types are included in the deposits. amounts outstanding. Figures may not add to totals because of rounding. billion, and domestic governmental units—eli- SAVINGS DEPOSITS gible since November 1974—held about $3.3 Individuals and nonprofit organizations held billion. All other entities, such as foreign and nearly 95 per cent, or $172.9 billion, of all domestic commercial banks and foreign official savings deposits at insured commercial banks institutions, held about $135 million in savings as of July 28, 1976. Partnerships and corpora- accounts. tions—which first became eligible to hold such On the survey date, an estimated 87 per cent deposits in November 1975—held about $6.7 of the more than 14,000 banks that offer savings deposits to individuals and nonprofit organizations were paying the maximum allowable 5For example, the new survey population does not include banks and branches in U.S. possessions. More- interest rate—5 per cent. Moreover, banks payover, most of the specific deposit categories in the new ing the ceiling rate of interest held 86 per cent survey are not available from previous surveys. In of these savings deposits. Nearly 90 per cent addition, the sample of reporting banks and the statistiof the 8,100 banks that offer savings deposits cal procedures for obtaining population estimates have been modified. to businesses and about the same proportion of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 991 TABLE 2 Small-denomination time and savings deposits held by insured commercial banks on July 28, 1976, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank (total deposits Size of bank (total deposits in millions of dollars) in millions of dollars) Deposit group, and distribution of deposits by most All banks All banks common rate Less than 100 and Less than 100 and 100 over 100 over Number of banks, Amount of deposits (in millions of or percentage distribution dollars, or percentage distribution) Savings deposits Individuals and nonprofit organizations Issuing banks 14,159 13,287 872 172,907 67,251 105,656 Distribution Total 100 100 100 100 100 100 4.00 or less 2.9 2.7 5.9 3.6 2.8 4.1 4.01-4.50 10.1 10.3 8.0 10.0 9.2 10.5 4.51-5.00 87.0 87.0 86.1 86.4 88.0 85.4 MEMO : paying ceiling rate 1 86.8 86.8 86.0 86.2 87.7 85.3 Partnerships and corporations Issuing banks 8,051 7,195 856 66,,666666 2,658 4,008 Distribution Total 100 100 100 100 100 100 4.00 or less 1.6 1.5 2.3 1 l 1.2 1.1 4.01-4.50 8.6 8.8 6.7 4! 3 4.4 4.2 4.51-5.00 89.9 89.7 91.0 94.6 94.5 94.7 MEMO : paying ceiling rate 1 89.5 89.3 90.9 94.1 94.4 93.9 Domestic governmental units Issuing banks 6,066 55,,554411 525 33,,331144 1,905 11,,440099 Distribution To 4 t . a 0 l 0 or less 100 .6 100 .5 100 1 .4 100 .2 1 ( 020 ) 100 .6 4.01-4.50 9.2 9.6 4.9 4.5 6.2 2.2 4.51-5.00 90.3 89.9 93.8 95.3 93.8 97.2 MEMO : paying ceiling rate 1 88.4 87.9 93.6 94.8 93.4 96.6 All other Issuing banks 992 892 100 130 32 98 Distribution To 4 4 t . . a 0 0 l 0 1 - o 4 r . 5 l 0 e ss 10 1 0 4 . . 4 2 1 ( 0 1 20 5 ) . 6 10 2 4 0 . . 3 2 100 . . 2 7 1 ( ( 02 2 0 ) ) 100 . . 9 2 4.51-5.00 85.3 84.4 93.5 99.1 100.0 98.8 MEMO: paying ceiling rate 1 85.3 84.4 93.5 99.1 100.0 98.8 Time deposits in denominations of less than $100,000 Domestic governmental units: Maturing in— 30 up to 90 days Issuing banks 4,963 4,367 596 11,,667788 957 721 Distribution Total 100 100 100 100 100 100 4.50 or less 1.3 1.3 1.4 .3 .3 .3 4.51-5.00 69.3 69.9 64.5 44.6 45.5 43.4 5.01-5.50 24.7 23.8 31.1 49.9 46.8 54.0 5.51-7.75 4.8 5.1 3.0 5.2 7.5 2.3 MEMO: paying ceiling rate 1 0 0 0 0 0 0 90 up to 180 days Issuing banks 7,553 6,968 585 11,,113399 836 302 Distribution Total 100 100 100 100 100 100 4.50 or less .8 .8 .6 .5 .6 . l 4.51-5.00 7.2 6.7 12.9 2.3 1.5 4.4 5.01-5.50 87.9 88.5 80.7 88.2 86.9 91.9 MEMO 5 : . p 5 a 1 y -7 in .7 g 5 ceiling rate 1 4. . 2 4 4. . 0 4 (25 ) .9 9. - 0 1 11 . . 2 0 (23 ) .6 180 days up to 1 year Issuing banks 4,387 3,918 468 779 438 341 Distribution To 4 ta .5 l 0 or less 100 .1 1 ( 020 ) 100 1 .0 100 .1 1 ( 020 ) 100 .1 4.51-5.00 7.9 7.8 8.5 8.8 7.9 10.0 5.01-5.50 75.4 76.0 69.9 68.5 58.3 81.7 MEMO: 5 . p 5 a 1 y i 7 n . g 7 5 c eiling rate 1 16. . 6 7 16. . 1 8 ( 220 ) .7 22. - 6 1 33. . 7 1 (28 ) .2 1 year and over Issuing banks 8,172 7,599 573 22,,881177 22,,558899 228 Distribution Total 100 100 100 100 100 100 5.00 or less 4.3 4.1 6.0 .4 .3 1.6 5.01-5.50 7.6 7.7 6.3 2.9 2.9 2.3 5.51-6.00 60.8 60.6 63.5 32.5 28.3 80.6 MEMO 6 : . p 0 a 1 y -7 in .7 g 5 ceiling rate 1 27. . 4 4 27. . 6 4 24. . 3 8 64.2 ( 628 ) . 4 15. . 6 2 -1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 Federal Reserve Bulletin • December 1976 TABLE 2—Continued Size of bank (total deposits Size of bank (total deposits in millions of dollars) in millions of dollars) Deposit group, and distribution of deposits by most All banks All banks common rate Less than 100 and Less than 100 and 100 over 100 over Number of banks, Amount of deposits (in millions of or percentage distribution dollars, or percentage distribution) Time deposits in denominations of less than $100,000 (cont.) Other than domestic governmental units: Maturing in— 30 up to 90 days Issuing banks 6,743 55,,997799 765 88,,551188 22,,668811 55,,883377 Distribution Total 100 100 100 100 100 100 4.50 or less 2.6 2.8 1.1 .1 .2 .1 4.51-5.00 97.4 97.2 98.9 99.9 99.8 99.9 MEMO : paying ceiling rate 1 97.3 97.2 97.6 99.8 99.8 99.8 90 up to 180 days Issuing banks 1100,,998800 1100,,113333 847 2266,,772255 1111,,770099 15,016 Distribution Total 100 100 100 100 100 100 4.50 or less .6 .6 1.3 (2) (2) (2) 4.51-5.00 7.8 8.1 4.2 4.0 5.2 3.1 5.01-5.50 91.5 91.3 94.5 96.0 94.7 96.9 MEMO : paying ceiling rate 1 88.6 88.3 91.7 94.6 94.1 95.0 180 days up to 1 year Issuing banks 88,,446688 77,,770011 767 44,,337788 22,,336633 22,,001155 Distribution Total 100 100 100 100 100 100 4.50 or less .7 .7 .6 .1 (2) .2 4.51-5.00 4.3 4.5 2.6 2.8 4.0 1.5 5.01-5.50 95.0 94.8 96.9 97.1 96.0 98.3 MEMO : paying ceiling rate 1 92.5 92.3 94.7 95.5 95.9 95.1 1 up to 2 Vi years Issuing banks 12,850 1111,,999922 858 3311,,779966 20,005 1111,,779911 Distribution Total 100 100 100 100 100 100 5.00 or less (2) (2) .3 .2 (2) .5 5.01-5.50 2.7 2.9 .3 .7 1.1 (2) 5.51-6.00 97.2 97.1 99.4 99.1 98.9 99.5 MEMO : paying ceiling rate 1 96.3 96.1 98.1 94.2 98.0 87.9 2 Vi up to 4 years Issuing banks 11,905 1111,,007766 829 1188,,770099 1111,,669922 77,,001177 Distribution Total 100 100 100 100 100 100 6.00 or less 1.9 1.9 1.0 1.9 2.7 .5 6.01-6.50 98.1 98.1 99.0 98.1 97.3 99.5 MEMO : paying ceiling rate 1 97.7 97.6 98.2 97.3 97.0 97.7 4 up to 6 years Issuing banks 1111,,664400 1100,,880077 834 4411,,336633 20,504 2200,,885599 Distribution Total 100 100 100 100 100 100 6.50 or less .8 .7 1.6 2.6 .7 4.6 6.51-7.00 13.6 14.1 6.9 8.7 12.2 5.2 7.01-7.25 85.6 85.2 91.4 88.7 87.2 90.2 MEMO : paying ceiling rate 1 85.6 85.2 91.3 88.6 87.2 89.9 6 years and over Issuing banks 7,923 77,,221188 705 7,941 33,,446699 4,472 Distribution Total 100 100 100 100 100 100 5.00 or less 1.9 1.9 1.7 (2) (2) ((22)) 5.01-7.25 6.7 6.9 4.3 6.1 3.4 88..11 7.26-7.50 91.4 91.1 94.0 93.9 96.6 91.9 MEMO : paying ceiling rate 1 91.4 91.1 93.8 91.8 96.6 88.1 Club accounts Issuing banks 99,,008822 88,,440000 681 11,,883366 835 11,,000011 Distribution Total 100 100 100 100 100 100 0.00 53.4 54.8 36.6 24.8 33.7 17.4 0.01-4.00 13.5 13.7 11.3 13.5 13.9 13.1 4.01-4.50 9.1 9.0 9.5 15.8 13.2 17.9 4.51-5.50 24.0 22.5 42.7 46.0 39.3 51.6 1 See p. A-8 for maximum interest rates payable on time and held at banks that had discontinued issuing deposits are not included savings deposits at the time of each survey. The ceiling rate is included in the amounts outstanding. Therefore, the deposit amounts shown in the rate interval in the line above. in Table 1 may exceed the deposit amounts shown in this table. 2 Less than .05 per cent. The most common interest rate for each instrument refers to the stated rate per annum (before compounding) that banks paid on the NOTE.—All banks that either had discontinued offering or had largest dollar volume of deposit inflows during the 2-week period never offered particular deposit types as of the survey date are not immediately preceding the survey date. counted as issuing banks. Moreover, the small amounts of deposits Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 993 TABLE 3 Average of most common interest rates paid on various categories of time and savings deposits at insured commercial banks on July 28, 1976 Bank size (total deposits in millions of dollars) TTyyppee ooff ddeeppoossiitt All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 1,000 and over Savings and small-denomination time deposits 5.53 5.73 5.64 5.57 5.49 5.42 5.39 Savings, total 4.92 4.95 4.90 4.95 4.91 4.86 4.93 Individuals and nonprofit organizations 4.91 4.94 4.90 4.94 4.91 4.85 4.92 Partnerships and corporations 4.97 4.99 4.95 4.97 4.96 4.98 4.97 Domestic governmental units 4.97 5.00 4.94 4.94 4.99 5.00 4.96 All other 4.98 5.00 5.00 5.00 4.88 0) 5.00 Time deposits in denominations of less than $100,000, total.. 6.31 6.30 6.35 6.34 6.32 6.27 6.25 Domestic governmental units, total 5.90 6.30 5.58 5.43 5.41 5.49 5.47 Maturing in— 30 up to 90 days 5.22 5.38 5.23 5.08 5.18 5.23 5.32 90 up to 180 days 5.51 5.48 5.61 5.58 5.45 5.43 5.48 180 days up to 1 year 5.54 5.44 5.70 5.73 5.46 5.61 5.65 1 year and over 6.56 6.67 6.05 6.24 6.01 6.20 5.93 Other than domestic governmental units, total 6.33 6.30 6.38 6.38 6.35 6.28 6.26 Maturing in— 30 up to 90 days 5.00 5.00 5.00 5.00 5.00 5.00 5.00 90 up to 180 days 5.48 5.49 5.48 5.44 5.49 5.48 5.47 180 days up to 1 year 5.48 5.48 5.50 5.46 5.50 5.47 5.49 1 up to ly-i years 5.99 5.99 6.00 5.99 6.00 5.99 5.98 2 Yz up to 4 years 6.49 6.47 6.50 6.49 6.50 6.49 6.49 4 up to 6 years 7.21 7.22 7.20 7.23 7.23 7.24 7.15 Over 6 years 7.47 7.49 7.50 7.48 7.48 7.41 7.43 MEMO: Club accounts2 3.49 1.89 2.34 4.20 3.50 2.96 4.46 1 No deposits outstanding. amount of that type of deposit outstanding. All banks that had either 2 Club accounts are excluded from all of the above categories. discontinued offering or never offered particular deposit types as of the survey date were excluded from the calculations for those specific NOTE.—The average rates were calculated by weighting the most deposit types. common rate reported on each type of deposit at each bank by the the 6,100 banks that offer savings deposits to the deposits held by governmental units had governmental units are estimated to have paid original maturities of less than 180 days. In the ceiling rate of interest to such holders. The contrast, only about one-fourth of small-deproportion of such deposits held at these banks nomination time deposits issued to other than was nearly 95 per cent. governmental units had such maturities, and The combined, weighted-average interest rate more than one-third had maturities of 4 years paid on savings deposits issued to all holders or more. was 4.9 per cent. Although comparisons with The relative shortness of deposit maturities earlier surveys are imperfect, these data suggest held by governmental bodies as compared with little change in offering rates since April when those held by other depositors reflects about 89 per cent of the banks offering IPC principally the nature of the needs of these savings deposits were paying the ceiling rate and bodies and only in small part the current interest such banks held 87 per cent of total savings rate regulations. Under the deposit rate ceilings deposits; the weighted-average rate on savings established by the Federal banking regulatory deposits in April also was 4.9 per cent. agencies, governmental bodies may obtain rates up to 7.75 per cent on time deposits regardless SMALL-DENOMINATION of the length of maturity, but deposit ceilings for other depositors range from 5.0 to 7.5 per TIME DEPOSITS cent, graduated according to maturity. Never- Interest-bearing, small-denomination time de- theless, the average rates actually paid by banks posits consisted of about $6.4 billion issued to on short-maturity time deposits issued to govdomestic governmental bodies and $140.2 bil- ernmental units exceed only slightly the average lion issued to all others. About 44 per cent of rates on deposits issued to nongovernmental Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 Federal Reserve Bulletin • December 1976 units. Indeed, the proportion of banks paying longest maturity category. In the 6-year-andceiling rates of interest on government-owned over maturity category, the proportion of banks time deposits is less than 1 per cent. paying the maximum rate fell from about 96 The fairly small differential in rates paid to to 91 per cent. governmental and nongovernmental holders of time deposits apparently reflects the fact that OTHER TIME DEPOSITS yields on alternative money market investments, such as Treasury bills, generally remained in The remaining portion of commercial bank time the 5 to 5V2 per cent range during July. Thus, deposits is distributed among three deposit cabanks probably found that rates near the ceilings tegories. One, interest-bearing, large-denomion the IPC time deposits were competitive in nation time deposits accounted for $133.5 bilthe market and therefore only a modest propor- lion. Data from the report of condition indicate tion of banks offered higher rates to attract that governmental units held about two-fifths of governmental deposits. these deposits and IPC's held the balance. Two, Rates paid on small-denomination time de- non-interest-bearing (other than club accounts) posits issued to other than governmental bodies time deposits totaled nearly $5 billion; most registered little change between April and July. such deposits are believed to represent escrow In each category of such deposits for which accounts and compensating balances held comparable data exist for April, the estimated against loans. Finally, depositors held more than weighted-average rate paid at all commercial $2 billion in club accounts. More than half of banks remained the same. The proportion of the issuing banks, holding about one-quarter of banks paying ceiling rates of interest also re- such deposits, paid no interest on club acmained steady for deposits in all except the counts. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 995 APPENDIX TABLES 1. Savings deposits issued to individuals and nonprofit organizations Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 4.00 4.01 4.51 Memo: 4.00 4.01 4.51 Memo: or to to ceiling or to to ceiling less 4.50 5.00 rate1 less 4.50 5.00 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 14,159 411 1,436 12,312 12,284 172,907 6,237 17,258 149,412 149,101 Size of bank (total deposits in millions of dollars) : Less than 20 8,983 248 1,005 7,729 7,702 19,655 212 1,754 17,688 17,524 20 50 3,264 61 325 2,878 2,878 27,222 826 3,879 22,517 22,517 50-100 1,040 51 35 954 954 20,375 874 533 18,967 18,967 100-500 695 40 45 610 610 37,914 1,873 3,077 32,963 32,963 500-1,000 100 8 15 77 76 17,903 1,516 2,332 14,055 13,908 1,000 and over 77 3 10 64 64 49,839 935 5,682 43,221 43,221 2. Savings deposits issued to partnerships and corporations operated for profit Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 4.00 4.01 4.51 Memo: 4.00 4.01 4.51 Memo: or to to ceiling or to to ceiling less 4.50 5.00 rate1 less 4.50 5.00 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 8,051 126 691 7,234 7,206 6,666 76 284 6,307 6,275 Size of bank (total deposits in millions of dollars): Less than 20 3,383 364 3,019 2,992 753 11 743 741 20-50 2,818 91 234 2,493 2,493 1,121 22 77 1,021 1,021 50-100 994 15 35 943 943 784 9 28 747 747 5 1 1 0 , 0 0 0 0 0 - - 0 1 5 , 0 a 0 0 n 0 d 0 over 6 1 7 7 0 9 7 0 1 2 7 1 4 1 0 8 0 62 6 8 2 8 9 62 8 6 2 9 7 2 1 , , 0 1 8 9 0 1 1 0 7 ( ( 2 2 ) ) 2 1 ( ( 2 2 ) ) 4 5 1 1 , , 9 0 7 3 7 8 5 4 7 1 1 , , 9 0 7 4 3 8 4 5 7 3. Savings deposits issued to domestic governmental units Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp TToottaall TToottaall 4.00 4.01 4.51 Memo: 4.00 4.01 4.51 Memo: or to to ceiling or to to ceiling less 4.50 5.00 rate1 less 4.50 5.00 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS AAllll bbaannkkss 666,,,000666666 35 555555666 555,,,444777555 555,,,333666333 333,,,333111444 8 111444999 333,,,111555777 333,,,111444000 SSiizzee ooff bbaannkk ((ttoottaall ddeeppoossiittss iinn mmiilllliioonnss ooff ddoollllaarrss)):: LLeessss tthhaann 2200 333,,,666000000 27 222555000 333,,,333222222 333,,,222111111 999444222 (3) 111 999444000 999333333 2200--5500 111,,,444555222 222444666 111,,,222000777 111,,,222000777 666666111 888222 555777999 555777999 50-100 444888999 333555 444555444 444555444 333000222 333444 222666888 222666888 100-500 333999888 2 111444 333888222 333888222 666222000 (2) (((222))) 666111222 666111222 500-1,000 666999 2 666 666111 666111 222555444 (2) (((333))) (((222))) (((222))) 1,000 and over 555888 3 666 444999 444888 555333555 (2) (((222))) (((222))) (((222))) For notes, see p. 1000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 Federal Reserve Bulletin • December 1976 4. Savings deposits issued to all others Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.00 4.01 4.51 Memo: 4.00 4.01 4.51 Memo: or to to ceiling or to to ceiling less 4.50 5.00 rate1 less 4.50 5.00 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 992 847 847 (2) (3) (2) (2) Size of bank (total deposits in millions of Le D ss o t ll h a a r n s ) 2 : 0 335 139 196 196 1 ((33)) 1 20-50 506 506 506 29 2299 2299 5 5 1 0 0 0 0 - 0 1 - - 1 0 5 0 , 0 0 0 0 0 5 7 1 8 6 7 5 4 4 1 7 5 4 1 4 25 2 (2) ( ( ( ( 2 2 2 2 ) ) ) ) (((333))) 222444 22 (((333))) 222444 22 1,000 and over 16 16 16 74 777444 777444 5. Government time deposits in denominations of less than $100,000— Maturities of 30 up to 90 days Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.51 5.01 5.51 Memo: 4.50 4.51 5.01 5.51 Memo: or to to to ceiling or to to to ceiling less 5.00 5.50 7.75 rate1 less 5.00 5.50 7.75 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 4,963 63 3,437 1,224 238 1,678 748 837 88 Size of bank (total deposits in millions of dollars): Less than 20 2,782 1,865 722 141 290 152 94 42 20-50 1,215 971 195 49 322 117 178 27 5 5 1 1 0 0 , 0 0 - 0 0 0 1 - - 0 1 0 5 0 , 0 a 0 0 n 0 d 0 over 4 3 5 6 6 8 0 9 5 1 2 3 4 4 1 0 2 0 7 2 1 1 3 2 2 1 8 9 9 1 3 1 1 7 4 3 1 9 3 4 9 7 2 5 2 ( ( ( 2 2 2 ) ) ) (22 1 ) 4 3 6 7 8 6 1 1 1 6 7 5 7 7 1 1 6 ( (( 2 22 ) )) 3 Government time deposits in denominations of less than $100,000— Maturities of 90 up to 180 days Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.51 5.01 5.51 Memo: 4.50 4.51 5.01 5.51 Memo: or to to to ceiling or to to to ceiling less 5.00 5.50 7.75 rate1 less 5.00 5.50 7.75 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 7,553 60 543 6,635 314 30 1,139 ,004 103 1 Size of bank (total deposits in millions of dollars): Less than 20 4,656 57 166 4,294 139 507 492 4 20-50 1,863 301 1,451 110 30 176 145 23 1 50-100 449 419 31 154 90 64 5 1 0 0 0 0 - - 1 5 , 0 0 0 0 0 44 8 8 1 63 8 3 6 5 4 9 25 6 1 3 1 8 8 ( 3 ) ( 3 ) 9 3 9 6 8 1 1,000 and over 56 5 48 3 146 142 2 For notes, see p. 1000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 997 7. Government time deposits in denominations of less than $100,000— Maturities of 180 days up to 1 year Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 4.50 4.51 5.01 5.51 Memo: 4.50 4.51 5.01 5.51 Memo: or to to to ceiling or to to to ceiling less 5.00 5.50 7.75 rate1 less 5.00 5.50 7.75 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 4,387 347 3,305 730 30 779 69 534 176 1 Size of bank (total deposits in millions of dollars): Less than 20 2,114 307 1,641 166 187 35 135 17 20-50 1,532 1,131 401 30 199 105 94 1 50-100 272 206 66 52 16 36 100-500 340 243 66 289 247 8 500-1,000 73 49 14 23 (3) 14 8 1,000 and over 55 35 17 29 (3) 17 11 Government time deposits in denominations of less than $100,000— Maturities of 1 year or more Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 5.01 5.51 6.01 Memo: 5.00 5.01 5.51 6.01 Memo: or to to to ceiling or to to to ceiling less 5.50 6.00 7.75 rate1 less 5.50 6.00 7.75 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS AH banks 8,172 348 619 4,969 2,237 35 2,817 12 81 916 1,808 Size of bank (total deposits in millions of dollars): Less than 20 4,931 253 528 2,395 ,755 2,309 74 497 1,730 20-50 2,133 61 55 1,847 171 180 2 165 12 50-100 535 363 172 101 70 30 5 1 0 0 0 0 - - 1 5 , 0 0 0 0 0 45 7 3 5 26 6 24 8 2 4 9 4 0 11 1 2 8 1 3 4 5 3 ( ( 2 3) ) 3 1 12 1 9 3 20 9 (3) 1,000 and over 45 2 4 30 9 49 (2) (2) 41 7 9. Other time deposits in denominations of less than $100,000— Maturities of 30 up to 90 days Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 4.51 Memo: 4.50 4.51 Memo: or to ceiling or to ceiling less 5.00 rate1 less 5.00 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 6,743 175 6,569 6,559 8,518 10 8,508 8,503 Size of bank (total deposits in millions of dollars): Less than 20 3,375 166 3,209 3,209 721 716 716 20-50 1,862 1,862 1,862 875 875 875 50-100 742 742 742 1,085 1,085 1,085 100-500 601 598 591 1,409 (2) (2) 1,402 500-1,000 93 87 86 1,577 (2) 1,576 1,575 1,000 and over 71 71 70 2,851 2,851 2,850 For notes, see p. 1000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 Federal Reserve Bulletin • December 1976 10. Other time deposits in denominations of less than $100,000— Maturities of 90 up to 180 days Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 4.50 4.51 5.01 Memo: 4.50 4.51 5.01 Memo: or to to ceiling or to to ceiling less 5.00 5.50 rate1 less 5.00 5.50 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 10,980 68 860 10,052 9,724 26,725 5 1,071 25,648 25,273 Size of bank (total deposits in millions of dollars): Less than 20 6,587 57 414 6,116 5,836 3,267 5 24 3,239 3,186 20-50 2,608 335 2,273 2,248 5,399 245 5,155 5,128 50-100 939 75 863 863 3,043 344 2,699 2,699 100-500 674 8 24 642 634 6,742 (3) 112 6,630 6,596 500-1,000 96 4 6 86 75 2,407 1 16 2,391 2,280 1,000 and over 77 5 72 68 5,866 331 5,535 5,384 11. Other time deposits in denominations of less than $100,000— Maturities of 180 days up to 1 year Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 4.50 4.51 5.01 Memo: 4.50 4.51 5.01 Memo: or to to ceiling or to to ceiling less 5.00 5.50 rate1 less 5.00 5.50 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 8,468 59 363 8,046 7,833 4,378 123 4,250 4,182 Size of bank (total deposits in millions of dollars): Less than 20 4,687 253 4,380 4,184 1,084 40 1,043 1,041 20-50 2,252 25 2,228 2,228 681 2 679 679 50-100 762 66 696 696 599 52 546 546 100-500 603 10 593 583 706 4 703 701 500-1,000 90 4 82 78 443 10 428 424 1,000 and over 73 6 67 65 865 16 850 789 12. Other time deposits in denominations of less than $100,000— Maturities of 1 up to 2^ years Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 5.00 5.01 5.51 Memo: 5.00 5.01 5.51 Memo: or to to ceiling or to to ceiling less 5.50 6.00 rate1 less 5.50 6.00 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 12,850 353 12,494 12,370 31,796 56 221 31,520 29,961 Size of bank (total deposits in millions of dollars): Less than 20 7,698 305 7,393 7,336 9,361 150 9,211 9,078 20-50 3,269 30 3,239 3,184 7,421 36 7,385 7,334 5 5 1 1 0 0 0 ,0 0 - 0 0 1 - - 0 1 0 5 0 , 0 a 0 0 n 0 d 0 over 1,0 6 2 9 8 7 5 7 4 7 1 2 5 1,0 6 0 9 8 7 9 5 1 6 1,0 6 0 9 7 7 9 2 2 7 4 2 5 3 , , , , 0 7 0 2 2 6 0 2 5 2 3 3 ( ( 2 2 ) ) ( ( 2 2 ) ) 3 ( ( ( ,12 2 2 8 ) ) ) 8 4 3 3 1 , , , , 7 6 1 9 3 3 8 9 1 8 8 2 For notes, see p. 1000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 999 13. Other time deposits in denominations of less than $100,000— Maturities of iy up to 4 years 2 Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 6.00 6.01 Memo: 6.00 6.01 Memo: or to ceiling or to ceiling less 6.50 rate1 less 6.50 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 11,905 222 11,683 11,626 18,709 346 18,363 18,199 Size of bank (total deposits in millions of dollars): Less than 20 6,917 6,724 6,724 4,576 4,327 4,327 20-50 3,190 3,190 3,159 4,829 4,829 4,790 50-100 969 20 949 929 2,286 61 2,226 2,225 100-500 662 4 657 653 2,720 5 2,714 2,691 5 1 0 ,0 0 0 - 0 1 , a 0 n 0 d 0 over 9 7 3 4 3 1 9 7 0 3 9 7 0 1 3 1 , , 0 25 4 1 7 ( ( 2 2 ) ) 1 ( , 2 2 ) 20 2 1 , , 9 2 4 2 5 0 14. Other time deposits in denominations of less than $100,000— Maturities of 4 up to 6 years Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total 6.50 6.51 7.01 Memo: 6.50 6.51 7.01 Memo: or to to ceiling or to to ceiling less 7.00 7.25 rate1 less 7.00 7.25 rate1 NUMBER OF BANKS MILLIONS OF DOLLARS Lll banks 11,640 91 1,581 9,968 9,967 41,363 1,093 3,586 36,684 36,628 iize of bank (total deposits in millions of dollars): Less than 20 6,888 27 946 5,915 5,915 6,465 7 877 5,581 5,581 20-50 2,954 30 461 2,463 2,463 8,671 113 1,262 7,296 7,296 5 5 1 0 0 0 0 - 0 1 - - 1 0 5 0 , 0 0 0 0 0 9 6 9 6 6 4 5 5 20 2 5 1 4 1 8 4 7 6 8 1 2 8 3 8 8 6 8 1 2 8 3 8 7 8 5 3 , , , 9 3 8 6 1 8 9 3 2 ( ( 2 2 ) ) 1 9 (25 3 ) 2 5 4 3 4 8 3 , , , 9 7 2 9 4 9 7 1 3 4 3 8 , , , 9 6 2 9 8 9 7 5 3 1,000 and over 74 7 6 61 61 8,064 850 438 6,776 6,776 15. Other time deposits in denominations of less than $100,000— Maturities of 6 years or more Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 5.01 7.26 Memo : 5.00 5.01 7.26 or to to ceiling or to to less 7.25 7.50 rate1 less 7.25 7.50 NUMBER OF BANKS MILLIONS OF DOLLARS All banks 7,923 151 531 7,241 7,240 7,941 481 7,460 7,289 Size of bank (total deposits in millions of dollars) : Less than 20 4,291 139 335 3,817 3,817 676 (3) 15 661 661 20-50 2,103 110 1,994 1,994 1,609 20 1,589 1,589 50-100 823 55 768 768 1,184 83 1,101 1,101 100-500 550 "\2 14 524 524 1,684 Y3)' 50 1,634 1,634 500-1,000 84 8 77 77 778 , 45 733 733 1,000 and over 71 9 62 61 2,011 268 1,743 1,573 For notes, see p. 1000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 Federal Reserve Bulletin • December 1976 16. Club accounts—Christmas savings, vacation, or similar club accounts Most common interest rates paid by insured commercial banks on new deposits on July 28, 1976 Most common rate paid (per cent) Most common rate paid (per cent) GGrroouupp Total Total .01 4.01 4.51 .01 4.01 4.51 0.00 to to to 0.00 to to to 4.00 4.50 5.50 4.00 4.50 5.50 NUMBER OF BANKS MILLIONS OF DOLLARS V.11 banks 9,082 4,848 1,229 822 2,183 1,836 455 247 290 844 Size oi bank (total deposits in millions oi dollars): Less than 20 5,077 3,183 501 557 837 195 110 22 36 27 20-50 2,471 1,124 546 129 672 255 111 60 28 56 50-100 852 292 106 71 383 385 60 34 46 245 100-500 546 199 62 43 243 424 93 82 64 185 500-1,000 78 34 10 11 23 153 49 23 32 50 1,000 and over 57 16 5 11 25 424 32 26 83 282 NOTES TO APPENDIX TABLES 1-16: 1 See page A. 8 for maximum interest rates payable on time and held at banks that had discontinued issuing deposits are not included saving deposits at the time of each survey. The ceiling rate is included in the amounts outstanding. Therefore, the deposit amounts shown in the rate interval to the left. in Table 1 may exceed the deposit amounts shown in these tables. 2 Omitted to avoid individual bank disclosure. The most common interest rate for each instrument refers to the 3 Less than $500,000. stated rate per annum (before compounding) that banks paid on the largest dollar volume of deposit inflows during the 2 week period NOTE.—All banks that either had discontinued offering or had immediately preceding the survey date. never offered particular deposit types as of the survey date are not Figures may not add to totals because of rounding. counted as issuing banks. Moreover, the small amounts of deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 1001 EXHIBIT 1 SURVEY OF TIME AND SAVINGS DEPOSITS As of close of business on (PLEASE READ INSTRUCTIONS CAREFULLY) 1. Amount II. Most common interest Type of deposit i o n u t t h s o ta u n s d a i n n d g s r v a o te lu p m a e id o o f n n e la w r g d e e st p o d s o it l s la r of dollars during two weeks prior to survey date Bils. Mils. Thous. Per cent 11.. SSaavviinnggss ddeeppoossiittss iissssuueedd ttoo:: 11111 aa.. IInnddiivviidduuaallss aanndd nnoonnpprrooffiitt oorrggaanniizzaattiioonnss aaaaa b. Partnerships and corporations operated for profit (other than commercial banks) bbbbb c. Domestic governmental units ccccc d. All other ddddd 2. Club accounts (Christmas savings, vacation or similar club accounts) 2 3. All other interest-bearing time certificates and open account deposits in denominations of less than $100,000: 3333333333333 a. Issued to domestic governmental units: aaaaaaaaaaaaa (1) Accounts with original maturities of 30 up to 90 days (((((((((((((1111111111111))))))))))))) (2) Accounts with original maturities of 90 up to 180 days (((((((((((((2222222222222))))))))))))) (3) Accounts with original maturities of 180 days up to 1 year (((((((((((((3333333333333))))))))))))) (4) Accounts with original maturities of 1 year or more (((((((((((((4444444444444))))))))))))) b. Issued to other than domestic governmental units: bbbbbbbbbbbbb (1) Accounts with original maturities of 30 up to 90 days (((((((((((((1111111111111))))))))))))) (2) Accounts with original maturities of 90 up to 180 days (((((((((((((2222222222222))))))))))))) (3) Accounts with original maturities of 180 days up to 1 year (((((((((((((3333333333333))))))))))))) (4) Accounts with original maturities of 1 up to 2-1/2 years (((((((((((((4444444444444))))))))))))) ((55)) AAccccoouunnttss wwiitthh oorriiggiinnaall mmaattuurriittiieess ooff 22--11//22 uupp ttoo 44 yyeeaarrss (((((((((((((5555555555555))))))))))))) ((66)) AAccccoouunnttss wwiitthh oorriiggiinnaall mmaattuurriittiieess ooff 44 uupp ttoo 66 yyeeaarrss (((((((((((((6666666666666))))))))))))) (((777))) AAAccccccooouuunnntttsss wwwiiittthhh ooorrriiigggiiinnnaaalll mmmaaatttuuurrriiitttiiieeesss ooofff 666 yyyeeeaaarrrsss ooorrr mmmooorrreee::: (((((((((((((7777777777777))))))))))))) V////, (((aaa))) NNNeeegggoootttiiiaaabbbllleee ... ... ... ... (((((((((((((aaaaaaaaaaaaa))))))))))))) (((bbb))) NNNooonnn---nnneeegggoootttiiiaaabbbllleee (((((((((((((bbbbbbbbbbbbb>>>>>>>>>>>>> 4. All interest-bearing time deposits in denominations of $100,000 or more . . . 4 ' / / / / / / / / / / / /A 55.. NNoonn--iinntteerreesstt--bbeeaarriinngg ttiimmee ddeeppoossiittss iinn ddeennoommiinnaattiioonn ooff:: 55 aa.. LLeessss tthhaann $$110000,,000000 .. aa bb.. $$110000,,000000 oorr mmoorree hh ' / / / / / / / / / / / / /, 6. Total time and savings deposits (sum of items 1 through 5 above) 6 RETURN ONE COPY TO THE FEDERAL RESERVE BANK OF BY TO Name of person preparing this repor^ (please print) Telephone No. (including Area Code and Extension) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 Federal Reserve Bulletin • December 1976 PLEASE READ CAREFULLY BEFORE PREPARING REPORT FORM INSTRUCTIONS FOR SURVEY OF TIME AND SAVINGS DEPOSITS Report all deposit balances as of the close of the day of the Cooperatives, the Environmental Financing Authority, the Federsurvey to the nearest thousand dollars. All figures must reflect the al Home Loan Mortgage Corporation, the Federal National consolidation of all branches located in the States of the United Mortgage Association, and the Student Loan Marketing Associa- States and the District of Columbia and any domestic nonbank tion). subsidiary located in the States of the U.S., the District of Columbia, or any U.S. territory or possession that is consolidated c. Domestic governmental units include the United States Govfor the consolidated (Domestic) Report of Condition (Call ernment, States, counties, municipalities, and local housing Report) filed by the reporting bank. authorities, school, irrigation, drainage, and reclamation districts; other instrumentalities of one or more States; and the District of All time and savings deposits as defined in the instructions to Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Schedule F of the Call Report are to be included in this report American Samoa, Guam, and political subdivisions thereof. except "deposits accumulated for payment of personal loans" (hypothecated deposits). Hypothecated deposits, which are to be d. All other includes domestic and foreign commercial banks; EXCLUDED ENTIRELY from this report, represent the aggre- official international organizations such as, but not limited to the gate of amounts that are accumulated by borrowers in accounts Bank for International Settlement, the International Monetary opened or held in connection with personal loans and that, under Fund, the United Nations, and the International Bank for contracts between the bank and the borrowers, do not immedi- Reconstruction and Development. ately reduce the unpaid balances of the loans but are assigned or pledged to assure repayment of the loan at maturity. Time Deposits. Time deposits in denominations of less than $100,000 are to be separated into deposits issued to domestic governmental units (3a) and deposits issued to other than domestic governmental units (3b). Domestic governmental units OWNERSHIP are defined above under savings deposits (c). Note that all territories and insular possessions, and political subdivisions Savings deposits. The four ownership categories for classification thereof may hold time deposits and should be included in this of savings deposits in this survey are defined as follows: category. Other than domestic governmental units include all other ownership categories listed above under savings deposits (a, a. Individuals and nonprofit organizations include individuals b and d). In addition, foreign governments, foreign central banks, (including sole proprietorships); any nonprofit corporation, asso- and other foreign governmental units may hold time deposits and ciation, or other organization operated primarily for religious, should be included in this "other" category. philanthropic, charitable, educational, fraternal, or other similar purposes; and trust departments depositing funds for the benefi- Time deposits in denominations of $100,000 or more are not to cial interest of any of the above. be separated into ownership groups. Such deposits are to be reported under either Item 4 or Item 5b, depending on interest b. Partnerships and corporations operated for profit (other than status. commercial banks) include partnerships, corporations, building or savings and loan associations, mutual savings banks, credit unions, mutual funds, other associations and organizations operated for MATURITY profit, and trust departments depositing funds for any of the above. All such organizations are businesses (other than domestic Where deposits are to be reported by maturity, classify accounts and foreign commercial banks) engaged in commercial, industrial, according to ORIGINAL maturity of the outstanding deposits. or financial activities and operated for profit. This category also Thus,- if a $10,000 certificate were issued with an original includes all U.S. sponsored agencies (including but not limited to maturity of 2-1/2 years, but only has nine, months remaining to the Export-Import Bank and Federally-sponsored lending agen- maturity, it should still be reported under Item 3a(4) if it were cies such as the Federal Land Banks, the Federal Intermediate issued to a domestic governmental unit, and under Item 3b(5) if Credit Banks, the Federal Home Loan Banks, the Banks for it were issued to other than a domestic governmental unit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits, July 1976 1003 COLUMN HEADINGS the two weeks preceding the current survey date. If the bank pays no interest on club accounts but provides one payment to the Amount Outstanding (Column I). Report the amount outstanding account for the customer, report 4.00 per cent.) for each item in thousands of dollars as of the survey date. If no deposits for a designated category were outstanding as of the 3. All other interest-bearing time certificates and open account survey date, write "none" in the amount outstanding column. deposits in denominations of less than $100,000. Non-interest bearing deposits should not be included in this category. Such Most Common Interest Rate Paid on Largest Dollar Volume of deposits should be reported under Item 5(a). New Deposits During Two Weeks Prior to Survey Date (Column II). Refers to the basic stated rate per annum (before compound- a. Issued to domestic governmental units. Include in these items ing) on the largest dollar volume of deposit inflow during the two interest-bearing deposits in denominations of less than $100,000 week period just preceding the survey date. Report interest rates issued to domestic governmental units (as defined above under to the nearest one-hundredth of a percentage point. (For "ownership"). This would include negotiable and non-negotiable example, report 5-1/4 per cent as 5.25; report 5-1/8 as 5.13). If a time certificates and open account deposits, whether in passbook bank has outstanding deposits for a specific instrument, but or statement form. Report the aggregate amounts of these stopped offering that instrument prior to the beginning of the deposits according to ORIGINAL maturity (that is, maturity at two week period, write "no longer offered" in the column the time the outstanding deposit was made). Maturity is defined provided for the rate. If a bank is offering a deposit instrument, as minimum maturity. Any "notice" accounts or "multiple but no deposit inflows were generated during the two week maturity" accounts should be classified according to the shortest period preceding the survey date, report the rate that the bank possible maturity. Thus, for example: was offering. A CD of less than $100,000 with a face maturity of 180 days and a 30-day redemption option without penalty should be DEPOSIT CATEGORIES classified under Item 3a(1)—Accounts with original maturities 1. Savings deposits. Under the terms of these deposits, the of 30 up to 90 days. depositor is not ordinarily required, but may at any time be required, to give at least 30 days notice in writing of an intended b. Issued to other than domestic governmental units. Include in withdrawal. Savings deposits consistent with these withdrawal these items all other interest-bearing time deposits in denominaprovisions may be evidenced by a passbook, written agreement, tions of less than $100,000 issued to other than domestic or receipt which may also be in the form of a certificate. Such governmental units (as defined above under "ownership") and accounts may be held by a person or persons or by organizations not reported in Item 2. As in 3a, above, report the aggregate not operated for profit or by certain specified domestic govern- amounts of these deposits according to ORIGINAL maturity. As mental units. Profit making organizations may also hold savings in 3a, maturity is defined as minimum maturity. Any "notice" accounts subject to a limit of $150,000. Savings deposits in those accounts or "multiple maturity" accounts should be classified states which permit the customers to withdraw funds by with the shortest possible maturity. negotiable orders of withdrawal (NOW's) should be included in this category of deposits. 4. All interest-bearing time deposits in denominations of $100,000 or more. Include in this item all interest-bearing time Savings deposits issued to individuals and nonprofit organizations deposits in denominations of $100,000 or more (except savings should be reported under Item 1a. Savings deposits issued to deposits which should be reported in Item 1) REGARDLESS of partnerships and corporations operated for profit (other than ownership and type of instrument. commercial banks) should be reported under Item 1b. Savings deposits issued to domestic governmental units should be NOTE: DO NOT REPORT MOST COMMON RATE PAID ON reported under Item 1c. Savings deposits issued to other than the TIME DEPOSITS OF $100,000 OR MORE. above should be reported under Item 1d. See "ownership" above for definitions of each ownership class. 5. Non-interest bearing time deposits. Include any time account, 2. Club accounts (Christmas savings, vacation, or similar club other than club accounts or savings deposits, on which no interest accounts). Include in this item Christmas savings or similar is paid, regardless of ownership of deposit. Club accounts as accounts for which there are written contracts providing that no described in Instruction 2 should be reported in Item 2 even if withdrawal shall be made until a certain number of periodic they pay no interest. Similarly, savings deposits that pay no deposits have been made during a period of not less than three interest should still be reported under Item 1. Time deposits months, even though some of the deposits are made within 30 which have matured and have not been renewed are demand days from the end of the period. DO NOT include 90-day special deposits and thus should not be included in any category on this notice accounts in club accounts. (If the bank offers both interest report. bearing and non-interest bearing club accounts, report "0" for the most common rate paid if no interest is to be paid on the 6. Total time and savings deposits. This item is the sum of Items majority of deposits received in new club accounts opened during 1 through 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period August sively while taking a variety of other measthrough October 1976, is the eighth of a series ures—including in some cases a sharp tightenproviding information on Treasury and System ing of monetary policy—to maintain their curforeign exchange operations to supplement the rencies within the limits of the snake. After an regular series of semiannual reports that are October 17 meeting in Frankfurt, the particiusually issued each March and September. It pating governments announced an agreement by was prepared by Alan R. Holmes, Manager, which the mark's parity was adjusted upward System Open Market Account, and Executive by 2 to 6 per cent against the partner currencies. Vice President of the Federal Reserve Bank of After some initial hesitancy in the market, a New York, and Scott E. Pardee, Deputy Man- substantial unwinding of dealers' positions as ager for Foreign Operations of the System Open well as a reversal of commercial leads and lags Market Account and a Vice President of the was in progress by the end of the month. Federal Reserve Bank of New York. As in previous episodes of market stress, the dollar, as the main vehicle currency in the During the August-October period under re- market, was inevitably caught up in the cross view, foreign exchange market activity reflected fire, rising against some currencies and falling the large disparities that persisted in actual and against others. Against the German mark, howexpected price performance and in balance of ever, the dollar began to lose some of its earlier payments positions of major European coun- resiliency to the heavy shifts into marks that tries. Market participants were quick to react developed each time market participants sought to new events and to rumors or official state- to switch out of other EC snake currencies or ments that reinforced their expectations of a rise out of currencies, like sterling, that were weakor a fall in a particular currency. In this atmos- ening generally. This reduced buoyancy for the phere, markets for several currencies were un- dollar in part reflected market concern over the settled by large-scale shifts in professional trad- pause in the U.S. economic recovery, the relaing positions as well as in commercial leads and tive decline in interest rates here, and the further lags. widening of our trade deficit. Uncertainties sur- Among those European currencies floating rounding the U.S. elections also tended to weigh independently vis-a-vis the dollar, the pound on market sentiment toward the dollar. In this was driven down 11 per cent during the period, atmosphere the dollar declined by a net 6 to the Italian lira declined a net of 3 per cent, and 7 per cent against the mark and other European the French franc slipped a net of 2 per cent. currencies linked to it. Meanwhile, within the group of currencies For the most part this decline was orderly. joined together in the European Community The occasionally sharp drops in dollar rates (EC) "snake," speculative pressures had re- were mainly confined to the European trading emerged late in July on expectations of an early day, at which times the German Federal Bank upward adjustment for the German mark against supplemented its intervention in other snake the other participating currencies. Tensions currencies with small-to-moderate purchases of within this arrangement continued to build dollars. On a few days, however, the bidding through the October 3 election in Germany, and for marks spilled into the New York market and member central banks again intervened mas- resulted in unsettled trading conditions here. On Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 1005 August 16-17 when speculation over possible TABLE 2 rate adjustments within the EC snake triggered Drawings and repayments more generalized bidding for marks, the Federal on Federal Reserve System Reserve intervened in New York, selling $15.9 by its swap partners million equivalent of marks from balances. In millions of dollars Again, in September and early October, amidst uncertainties surrounding the general election in Drawings Germany, the Federal Reserve operated on 4 Outstand- or re- Outstanddays (September 16 and 24, October 5 and 6) Banks drawing on Jul i y n g 3 1, pay ( m -) e nts Oct i . n g 31, to sell a total of $37.2 million of marks. Toward System 1976 Aug. 1- 1976 Oct. 31, the end of October, when the continued volatil- 1976 ity in sterling kept the markets generally unsettled, the dollar was again adversely affected at Bank of England 200.0 100.0 300.0 Bank of Mexico 336600..00 --336600..00 times, and the Federal Reserve sold another f 100.01 $16.3 million of marks in operations on October Total 560.0 1—360.0J 300.0 19 and 26, also from balances. In summary, the Federal Reserve sold a total this amount, the System had repaid $55 million of $69.4 million equivalent of marks from ex- by the end of October and had purchased in isting balances during the 3-month period. the forward market francs sufficient for repay- These sales were largely offset, however, by ment of the remainder in early November. purchases of $63.4 million equivalent of marks, Moreover, in October the Federal Reserve principally from correspondents. and the U.S. Treasury reached agreement with In other operations as part of its program to the Swiss National Bank on an orderly procerepay swap debt outstanding since August 1971, dure for repaying over 3 years the Swiss franc the Federal Reserve acquired sufficient Belgian indebtedness remaining from August 1971. This francs in the market and from correspondents included $1,147.2 million equivalent of drawto cover the remaining $82.4 million of its swap ings under the Federal Reserve swap line as drawings on the National Bank of Belgium. Of well as the $1,599.3 million equivalent of U.S. Treasury/Swiss franc-denominated notes. In this connection, the Federal Reserve's drawings on the original swap arrangement with the National TABLE 1 Bank were repaid on October 29, using Swiss Federal Reserve System francs drawn under a newly established special drawings and repayments swap facility, which, in turn, will be reduced In millions of dollars equivalent as the swap is repaid over the 3-year period. In September the Bank of England drew a Commit- D or r a r w ep in a g y s - Commit- further $100 million each from the Federal Rements , ments (—) ments, serve and the U.S. Treasury, raising total draw- Transactions with— July 31, Aug. 1- Oct. 31, 1976 Oct. 31, 1976 ings in both cases to $300 million under the 1976 standby facility established in June 1976. These drawings were in proportion to drawings on Under reciprocal currency arrangements other countries participating in the $5.3 billion package that terminates on December 9. In NNNNaaaattttiiiioooonnnnaaaallll BBBBaaaannnnkkkk ooooffff BBBBeeeellllggggiiiiuuuummmm ............ 82.4 - 55.0 27.4 SSSSwwwwiiiissssssss NNNNaaaattttiiiioooonnnnaaaallll BBBBaaaannnnkkkk 1,147.2 -1,147.2 connection with the repayment of drawings TTTToooottttaaaallll 1,229.6 -1,202.2 27.4 under this agreement, the U.K. authorities initiated in October an application for a $3.9 Under special swap arrangement billion drawing on the International Monetary Fund (IMF). SSSSwwwwiiiissssssss NNNNaaaattttiiiioooonnnnaaaallll BBBBaaaannnnkkkk 1,147.2 1,147.2 TTTToooottttaaaallll 1,147.2 1,147.2 On August 31, following persistent pressures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 Federal Reserve Bulletin • December 1976 on the Mexican peso through much of the year, available up to $600 million in interim financing the Mexican authorities announced that they to Mexico. On this basis, the Bank of Mexico would no longer support the previous fixed rate drew $365 million on the U.S. Treasury in early of $0.08, and over subsequent days the peso October and repaid that amount out of proceeds depreciated by almost 39 per cent. After some of its first IMF drawing in early November. The recovery, official intervention was resumed to Bank of Mexico also repaid in early October help steady the rate around $0.0505. By that the $360 million of swap drawings on the Fedtime, Mexico had applied for substantial me- eral Reserve outstanding for 6 months. In the dium-term assistance from the IMF. In that market, however, selling pressure against the connection, on September 20, the U.S. Treasury peso remained heavy, and in late October the and the Federal Reserve agreed to a special authorities permitted the peso rate to depreciate arrangement with the Bank of Mexico, making by a further 25 per cent. • SWAP OPERATIONS, 1962-76 communities for data on System operations. Sup- As a supplement to this interim report, tables are plemental Table 1 shows the changes in the presented in order to provide historical data on amounts available under each of the reciprocal Federal Reserve swap network operations over the currency arrangements. Supplemental Table 2 entire 1962-76 period that the reciprocal currency presents Federal Reserve drawings and repayments arrangements have been in existence. These sum- by quarter on those swap lines for which there maries have been prepared in response to a number were operations, and Supplemental Table 3 gives of requests from both the academic and financial drawings and repayments by others. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 1007 SUPPLEMENTAL TABLE 1 Federal Reserve reciprocal currency arrangements In millions of dollars Original facility Amount of facility IInnssttiittuuttiioonn Date Amount Dec. 31, 1962 Oct. 31, 1976 Austrian National Bank 10/25/62 National Bank of Belgium 6/20/62 Bank of Canada 6/26/62 5/17/67 5/31/62 3/1/62 8/2/62 10/18/62 10/29/63 5/17/67 6/13/62 5/17/67 1/17/63 7/16/62 7/16/62 8/2/65 «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 10/25/62 50 250 6/20/62 50 1,000 6/26/62 250 2,000 5/17/67 250 Bank of England 5/31/62 3,000 Bank of France 3/1/62 2,000 German Federal Bank 8/2/62 2,000 Bank of Italy 10/18/62 3,000 10/29/63 2,000 5/17/67 360 6/13/62 500 5/17/67 250 1/17/63 300 7/16/62 1,400 7/16/62 600 8/2/65 1,250 «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 10/25/62 250 6/20/62 1,000 6/26/62 2,000 5/17/67 250 5/31/62 50 3,000 3/1/62 50 2,000 8/2/62 50 2,000 10/18/62 i 150 3,000 10/29/63 2,000 5/17/67 360 6/13/62 500 5/17/67 250 1/17/63 300 7/16/62 1,400 7/16/62 600 8/2/65 1,250 «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 10/25/62 250 6/20/62 1,000 6/26/62 2,000 5/17/67 250 5/31/62 3,000 3/1/62 2,000 8/2/62 2,000 10/18/62 3,000 10/29/63 2,000 5/17/67 360 Netherlands Bank 6/13/62 500 5/17/67 250 1/17/63 300 7/16/62 1,400 7/16/62 600 8/2/65 1,250 «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 10/25/62 250 6/20/62 1,000 6/26/62 2,000 5/17/67 250 5/31/62 3,000 3/1/62 2,000 8/2/62 2,000 10/18/62 3,000 10/29/63 2,000 5/17/67 360 6/13/62 50 500 5/17/67 250 1/17/63 300 7/16/62 1,400 7/16/62 600 8/2/65 1,250 «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 10/25/62 250 6/20/62 1,000 6/26/62 2,000 5/17/67 250 5/31/62 3,000 3/1/62 2,000 8/2/62 2,000 10/18/62 3,000 10/29/63 2,000 5/17/67 360 6/13/62 500 5/17/67 250 1/17/63 300 Swiss National Bank 7/16/62 1,400 Bank for International Settlements : Swiss francs/dollars 7/16/62 600 Other authorized European currencies/dollars 8/2/65 1,250 «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 10/25/62 250 6/20/62 1,000 6/26/62 2,000 5/17/67 250 5/31/62 3,000 3/1/62 2,000 8/2/62 2,000 10/18/62 3,000 10/29/63 2,000 5/17/67 360 6/13/62 500 5/17/67 250 1/17/63 300 7/16/62 100 1,400 7/16/62 100 600 8/2/65 1,250 Total «n<niqo<n V) «n in co <n0«n0 O m ooooo ooooo oooo o o 250 1,000 2,000 250 3,000 2,000 2,000 3,000 2,000 360 500 250 300 1,400 600 1,250 Total 990000 2200,,116600 Yearly increases, and decreases ( —) Jan. 1 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 to Oct. 31, 1976 AAAuuussstttrrriiiaaannn NNNaaatttiiiooonnnaaalll BBBaaannnkkk 55550000 111000000 55550000 National Bank of Belgium 5500 55550000 777555 222777555 110000 444400000000 Bank of Canada 222255550000 222555000 225500 1111,,,,000000000000 National Bank of Denmark 222 111000000 100 55550000 Bank of England 111555000 *P- JK >—i tf-t ^ O o t/L o OOOO 50 75 400 250 1,000 2 100 100 50 250 600 150 500 1,000 Bank of France 900 250 250 250 *P- JK >—i tf-t ^ O o t/L o OOOO 75 250 2 100 250 600 150 500 1,000 900 1,000 German Federal Bank 250 1,000 250 750 250 1,000 50 200 50 50 400 *P- JK >—i tf-t ^ O o t/L o OOOO \J< O ooo 500 900 1,000 350 250 1,000 Bank of Italy 150 250 750 300 250 1,000 2 130 50 75 200 2 100 50 100 50 200 400 200 400 *P- JK >—i tf-t ^ O o t/L o OOOO 200 100 \J< O ooo 500 900 1,000 350 250 1,000 150 250 250 750 1,000 Bank of Japan 300 250 1,000 2 130 50 75 200 2 100 50 100 50 200 400 200 400 *P- JK >—i tf-t ^ O o t/L o OOOO 200 100 \J< O ooo 500 900 1,000 350 250 1,000 150 250 250 750 1,000 300 250 1,000 Bank of Mexico 2 130 50 75 200 2 100 50 100 50 200 400 200 400 *P- JK >—i tf-t ^ O o t/L o OOOO 200 100 \J< O ooo 500 900 111111,,,,,,000000000000000000 333333335555555500000000 250 111111,,,,,,000000000000000000 111111115555555500000000 250 777777555555000000 333333330000000000000000 250 111111,,,,,,000000000000000000 22222222 111111113333333300000000 555555000000 118800 Netherlands Bank 5500 5500 7777777755555555 117755 ---111000000 222222000000000000 Bank of Norway 22222222 111111110000000000000000 111000000 555555000000 Bank of Sweden 2222 55550000 5555500000 111111110000000000000000 5555500000 555555000000 Swiss National Bank 55550000 5555500000 222222220000000000000000 222220000000000 440000 444444000000000000 Bank for International Settlements : Swiss francs/dollars 55550000 5555500000 222222220000000000000000 222220000000000 Other authorized European currencies/dollars 22115500 5555500000 444444440000000000000000 444440000000000 225500 TToottaall 11,,115500 330000 445500 11,,770000 22,,558800 33,,442255 557755 225500 550000 66,,225500 22,,000000 118800 --110000 1 Facility increased $100 million on Dec. 8, 1962. 2 New facility. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 Federal Reserve Bulletin • December 1976 SUPPLEMENTAL TABLE 2 Federal Reserve System drawings, and repayments (—), under its reciprocal swap lines In millions of dollars equivalent Bank for International Settlements Austrian National Bank Bank Bank German Bank Nether- Swiss Period National Bank of of of of Federal of lands National Bank Belgium Canada England France Bank Italy Bank Bank Against Against Swiss Belgian francs francs 50.0 / 10.5 40.0 50.0 60.0 \-10.5 -50.'6' -50.0 -50.0 — 10.0 /50.0 20.0 50.0 10.0 20 n 1 5 0.0 - 1 5 5 .0 .0 '50.6' 10.0 50.0 — 5 i 5 s .0 0 / 5.0 25.0 \-50.0 -20.0 -25.0 -50.0 -10 0 — Q S J 5.0 150.0 50.0 1-5.0 --5500..00 -45.5 (12.5 40.0 50 ft -113.0 -50.0 /15.0 -2 2 0 0 . . 0 0 -1 1 0 0 . . 0 0 -1 • 2 9 : .5 o ' -1 1 1 3 3 6 . . 0 0 -2 6 0 0 . . 0 0 - 8 5 0 .0 .0 1 - 0 5 0 .0 .0 is! o* 9.0 60.0 80.0 75.0 145.0 / 55.0 1-15.0 -115.0 -55.0 -15.0 25.0 -25.0 -100.0 -130.0 37.5 95.0 107.5 50.0 5.0 100.0 -100.0 45.0 SO." 6' 100.0 ioo.o' 55.0 15.0 100.0 150.0 -10.0 -60.0 -50.0 -20.0 10.0 "i50.'6' -40.0 -5.0 -82.0 -50.0 -70.0 -60.0 75.0 100.0 25.0 -80.0 -168.0 -ii.o' ' -40.'6' 10.0 -30.0 -25.0 -48.0 35.0 100.0 -35.0 -100.0 -3 3 0 0 . . 0 0 -2 3 2 2 5 5 . . 0 0 -1605..00 - 7 5 5 .0 .0 /140.0 -85.0 -20.0 -55.0 .!i4o!o 15.0 35.0 15.0 140.0 -15.0 -35.0 -15.0 -75.0 / 37.5 185.0 185.0 1-10.0 -28.0 1 97.5 33.0 15.0 -10.0 -42.0 76.2 350.0 400.0 130.0 127.0 285.0 -85.4 -25.0 -85.0 105.8 '350.0' 560.0 HO.O 250.0 400.0 / 53.1 300.0 15.0 1-88.8 -350.0 -175.0 -120.0 -173.0 -345.0 / 54.0 175.0 73.0 1-124.1 -300.0 -311.0 -65.0 -15.0 -55.0' 145.0 -189.0 -160.0 jl12.1 280.0 i'n.i' -80.0 320.0 / 40.0 1-112. -280.0 / 100.0 1-40.0 -45.0 -95.0 200.0 |55.0 300.0 -170.0 -55.0 130.0 145.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 1009 SUPPLEMENTAL TABLE 2—Continued Bank for International Settlements Austrian National Bank Bank Bank German Bank Nether- Swiss Period National Bank of of of of Federal of lands National Bank BBeellggiiuumm Canada England France Bank Italy Bank Bank Against Against Swiss Belgian francs francs /50.0 -145.0 / ^45.0 200.0 \ —130.0 -130.0 /135.0 270.0 -200.0 / ^65.0 300.0 \-110.0 210.0 300.0 300.0 / 335.0 130.0 150.0 \ —125.0 -300.0 -450.0 J 125.0 60.0 120.0 250.0 \-205.0 -250.0 /260.0 750.0 750.0 600.0 —i45.0 -35.0 -10.0 455.0 715.0 50.0 ,000.0 '600 .'6' 35.0 20.0 -52.0 -300.0 10.2 10.2 -663.0 -50.0 35.0 \-55.0 -130.0 -35.0 415.0 570.0 600.0 104.6 1-25.0 -104.6 6.0 47.0 435.6 -52.0 -47.0 -278.9 21.0 2.9 1-82.2 -177.7 -2.9 261.8 565.0 /255.0 1-3.7 -193.8 130.4 -122.8 / 1-7 7.6 1-1.7 -258.8 -7.6 / 13.2 301.5 38.0 13.3 1-13.2 -82.8 -34.8 -5.9 261.8 218.7 3.2 378.5 600.0 /16.7 644.1 49.0 152.1 -25.0 / 45.6 63.4 47.3 1-29.8 -5.1 -487.7 -90.6 -159.4 -40.5 -413.5 / i54.0 1-18.1 297.6 567.2 600.0 / 133.9 19.6 3600.0 1-86.5 -26.4 -19.6 -20.0 -83.7 -107.5 -100.0 4-1,147.2 . 27.4* 1 Amount by which the dollar countervalue of the Federal Reserve's keep Federal Reserve commitments to the BIS within the $600 million pre-August 1971 Belgian franc commitments, adjusted for the Belgian swap facility. franc revaluation of 1971, was increased to reflect the two U. S. dollar 3 Consolidation of Swiss franc swap debt. devaluations of 1971 and 1973. 4 The Federal Reserve repaid the outstanding $1,147.2 million equiva- 2 Amount by which the dollar countervalue of the Federal Reserve's lent of its pre-August 1971 Swiss franc swap indebtedness and took down pre-August 1971 Swiss franc commitments was increased to take account the same amount on the newly created special swap line designed to of the two U. S. dollar devaluations of 1971 and 1973. This increase refund the short-term obligation into medium-term obligation according is reflected entirely in the System's position with the Swiss National to the terms of the agreement between the Federal Reserve and the Swiss Bank because of a transfer of Swiss franc commitments from the Bank National Bank. The amount of this special facility will be reduced as for International Settlements to the Swiss National Bank sufficient to drawings are repaid over the next 3 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1010 Federal Reserve Bulletin • December 1976 SUPPLEMENTAL TABLE 3 Drawings and repayments (—) on Federal Reserve System by its swap partners In millions of dollars equivalent Bank for Inter- Austrian National Bank National Bank Bank Bank Bank Bank Nether- national Period National Bank of of Bank of of of of of of lands Settle- Bank Belgium Canada Denmark England France Italy JJaappaann Mexico Bank ments (against German marks) 250.0 -250.0 25.0 25.0 -12.5 10.0 1-12.5 10.0 -5.0 -25.0 -15.0 50.0 50.0 100.0 15.0 -150.0 50.0 f 85.0 30.0 \-65.0 -30.0 1270.0 -1105.0 -50.0 200.0 605.0 -485.0 610.0 -570.0 475.0 -85.0 75.0 -350.0 .475.0 -475.0 175.0 |17.6 450.0 75.0 -225.0 -75.0 -21100..00 -17.6 -50.0 350.0 200.0 43.0 \ — 350.0 -243.0 (225.0 182.0 -39.0 J425.0 191.0 Jl,000.0 -334.0 421.0 \-600.0 -75.0 1,050.0 346.0 J250.0 50.0 66.0 -412.0 25.0 545.0 100.0 54.7 306.0 -125.0 -1,645.0 -195.0 J 30.0 600.0 390.0 145.0 \ —20.0 -125.0 -25 ."6" -200.0 -40.0 -24.9 -256.0 / 180.5 850.0 275.0 126.0 \-183.0 -100.0 -295.0 -29.8 -46.0 7.5 1,150.0 430.0 80.0 / 74.0 25.0 225.0 51.0 1-58.5 -25.0 -50.0 -194.0 -131.0 |50.0 195.0 100.0 465.0 82.2 25.0 -104.0 -100.0 -540.0 -461.0 -25.0 244.0 330.0 65.0 300.0 109.7 4.0 -50.0 -154.0 -255.0 -65.0 -82.2 -4.0 62.0 -204.0 -450.0 -3O6."6' -109.7 -62.0 650.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 1011 SUPPLEMENTAL TABLE 3—Continued Bank for Inter- Austrian National Bank National Bank Bank Bank Bank Bank Nether- national Period National Bank of of Bank of of of of of of lands Settle- Bank BBeellggiiuumm Canada Denmark England France Italy Japan Mexico Bank ments (against German marks) 100.0 136.0 \-650.0 -100.0 -136.0 / 200.0 77.0 1-600.0 -77.0 J400.0 77.0 -400.0 -77.0 / 44.0 1-400.0 -44.0 / 21.0 1-21.0 / 6.0 1-6.0 / 3.0 \-3.0 / 8.0 1—8.0 / 6.0 1-6.0 / 1.0 1-1.0 J 4.0 1-4.0 / 11.0 1-11.0 / 23.0 1-23.0 / 36.0 1-36.0 / 46.0 1-46.0 J 26.0 \-26.0 J 76.0 \-76.0 /180.0 65.0 \ -65.0 129.0 -129.0 / 45.0 1-45.0 f 1.0 \-l.0 /180.0 125.0 -125.0 19.0 -360.0 -19.0 /200.0 360.0 14.0 -14.0 jioo.o" 37.0 -37.0 -360.0 300.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1012 Statements to Congress Statement by Henry C. Wallich, Member, the share of gross national product (GNP) de- Board of Governors of the Federal Reserve voted to saving and investment substantially System, before the Committee on Banking, exceeds that share in the United States. Com- Housing and Urban Affairs, of the U.S. Senate, parisons of this sort are difficult to make with November 19, 1976. precision, and inferences drawn from such comparisons are necessarily tentative. More- It is an honor to appear before this distinguished over, we should bear in mind that in the United committee to present comments, on behalf of States a very substantial investment is made in the Board of Governors of the Federal Reserve human beings through the high proportion of System, on the "Investment Policy Act of American citizens who have benefited from 1976." The Board endorses this legislation and higher and advanced education. But it would wishes to identify several considerations rele- be difficult to controvert the view expressed in vant to the formulation of a national investment the bill that "many non-United States business policy. enterprises" have been able to "improve their The bill stresses the need to "provide competitive positions vis-a-vis similar United sufficient incentive to assure maximum invest- States enterprises." It should be noted also that ment in private enterprise in order to increase while investment in physical facilities is by no the production of goods, the providing of serv- means the sole determinant of the rate of ecoices, the employment of workers, the opportu- nomic growth, it nevertheless is an important nity for profit, and the payment of taxes." The one, and one over which national policy can proposed legislation gives particular emphasis exert a favorable influence. to investment in plant and equipment, but it also In recent years, trends in the area of capital points to the importance of the allocation of investment have not been particularly favorable resources to education and training and the in the United States. For instance, over the years desirability of an "environment in which each 1948-66, the productivity of capital was nearly citizen has the opportunity and is encouraged constant, falling only 2.5 per cent over the entire to achieve his or her full economic potential." period. From 1966 to 1975, however, it fell 15 In addition, the importance of human, financial, per cent, or at an average annual rate of 1.7 and material resources in international competi- per cent. Thus in the later period, more capital tion is stressed. was required, or at least was being employed, to produce a unit of output than during the earlier period. This result would not be materially affected if one were to base the calculation SOME RECENT on the real gross stock of capital. The recessions INVESTMENT TRENDS of 1969-70 and 1974-75 may have contributed The American economy is one of the most to this outcome, but the data nevertheless sugproductive in the world. Nevertheless, as the gest that our capital needs, relative to output, bill states, "business enterprises in other nations have tended to increase of late. have made very large and significant invest- A similar impression is obtained when we ments in proportion to their nation's gross do- look at the improvement in the productivity of mestic product. . . ." In a number of countries American labor that can be expected from more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 1013 and better plant and equipment. Over the years tion in manufacturing is now estimated at 80.9 1947-66, productivity per hour increased at a per cent, in contrast to the formerly published 3.4 per cent annual rate. During 1967-74, pro- rate of 73.6 per cent. The quarterly high point ductivity advanced at only 1.6 per cent. While of utilization for the new series, achieved in in part this slowing of productivity no doubt 1973, was 87.8 per cent, contrasted with a reflects the onset of the recession of 1974-75, previous estimate of 83.3 per cent. Since botit may also suggest that additions to the capital tlenecks were widespread in 1973, one must stock have been insufficient. And, indeed, it conclude that a peacetime utilization rate of 88 should be noted that, using a different set of per cent may be exceeded only with considdata and different time spans as dictated by data erable difficulty and with seriously adverse conavailability, while during 1960-69 the net capi- sequences for price stability. At the present tal stock rose at 3 per cent per year relative time, the gap between current capacity utilizato the labor force, during 1969-75 this increase tion and the peak rate reached in 1973 is about was only 1.1 per cent per year. These data 7 percentage points. suggest that American workers enjoyed greater improvements in the amount and quality of the equipment with which they were working during THE OUTLOOK FOR the earlier years than they did of late. INVESTMENT, SAVING, The impression conveyed by these data of a AND THE FLOW OF FINANCING diminishing adequacy of investment in recent years is supported by new data on manufac- The investment objectives that the bill enumerturing capacity and capacity utilization devel- ates point in essence to three questions: oped by the staff of the Board of Governors. 1. What volume of investments will be For the period 1955-76, manufacturing capacity needed? on average seems to have grown at a rate of 2. What amount of saving will be available? 4.3 per cent per year, roughly commensurate 3. Will private enterprise be able to draw with the rate of growth of GNP, of which effectively upon these savings in order to emmanufacturing represents about one-third. The ploy them in productive investment? average, however, is deceptive. For instance, I would like to comment in turn on each of these during 1960-69, manufacturing capacity rose at questions. 5.2 per cent per year. During 1969-76, this growth diminished to 3.4 per cent per year. To VOLUME OF INVESTMENT some extent, the apparent slowdown in capacity growth may be misleading because businessmen Numerous studies have been made of the induring the period of controls and shortages of vestment requirements of our economy over the the early 1970's may have scaled down their next 5 or 10 years. These studies arrive at a perception of how much they could produce. very considerable degree of agreement about Nevertheless, the general thrust of the data on what is needed. I shall state the conclusions in manufacturing capacity is in line with the find- terms of per cent of GNP in order to avoid the ings mentioned earlier with respect to the total misleading and quite unnecessary alarm that capital stock. tends to be generated by cumulating multibil- The Federal Reserve Board has recently re- lion-dollar figures over long periods of time. vised its estimates of manufacturing capacity On the whole, the studies conclude that the and its rate of utilization. The new data indicate historic shares of GNP that have been devoted that capacity had been overestimated, and that to total private investment and to the subcateconsequently utilization had been understated. gory of business fixed investment of about 15 The revisions show that utilization has been per cent and 10.5 per cent, respectively, need substantially higher than was earlier believed. to be raised moderately. An additional xh to 1 For the third quarter of 1976, capacity utiliza- percentage point of GNP, or about $10 billion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1014 Federal Reserve Bulletin • December 1976 to $20 billion a year, seems to be a reasonable the attrition that it has suffered through inflation. number. The effort required to bring about such It has also been hypothesized that the savings a change is not a minor one since in an economy ratio has been adversely affected by more satisworking close to capacity other claims on the factory provision for old age through social GNP would have to be reduced. From the point security and medicare. of view of the bill, it is the share of business Corporate savings, including depreciation alfixed investment in particular that needs to be lowances, have been severely distorted by inborne in mind. flation. Inventory profits do not add to investable There are factors that raise investment re- funds, and depreciation based on original cost quirements as well as others that reduce them. does not cover replacement cost when prices are Additional requirements are called for by energy rising. The bill notes the need for additional needs, environmental requirements, health and financing of inventories and the higher cost of safety oriented installations, construction for the replacement of fixed assets. Corporate profits needs of a growing number of elderly persons, were severely eroded during the early 1970's and general investment to make up for any as restatement of profits corrected for inflation shortfalls in recent years as well as possible indicates. After such adjustments, it becomes declines in the productivity of capital. Partially apparent that in 1974 domestic nonfinancial offsetting these new requirements are demo- corporations paid out in dividends more than graphic variables implying reduced construction they earned, so retentions from profits become activity. negligible. If the increases in the rate of investment noted Meanwhile, profits and retentions have reearlier materialize, the economy should be able covered significantly. Nevertheless, inflationto meet the purposes of the bill with respect adjusted, after-tax profits for domestic nonto production, employment, profit opportunities, financial corporations as published by the and payment of taxes, although perhaps at a Department of Commerce have averaged only somewhat lower growth rate in terms of its po- about 2.3 per cent of GNP in recent quarters. tential than during the 1960's and early 1970's. During the middle 1960's, when capacity was growing rapidly, such profits averaged about 4 per cent. I need hardly add that these data point THE SUPPLY OF SAVINGS up a lesson: A revival of inflation would once Personal savings, corporate retention of profits, more do severe damage to corporate cash flow and business depreciation allowances are the and saving and to private investment. By the principal sources of supply of capital within the same token, one of the strongest contributions private sector if we abstract from the possibility we could make to private investment is to bring of net capital imports. The bill notes that "im- down inflation so as to achieve reasonable price provements in plant and equipment and the stability. An optimistic view of the future evofinancial resources for working capital are af- lution of corporate profits and dividends, therefordable only from savings." The studies of fore, is needed to arrive at the belief that the future investment needs and savings avail- sum of personal and corporate savings will be abilities to which I have referred differ more equal to investment requirements. Such a balsignificantly for estimates of savings than for ance of savings and investment will be needed investment needs. The average of these savings in order to meet the objective of the bill to projections is very close to the historical average "create an economic environment in which of 5 per cent of disposable personal income there will be the incentive to invest sufficiently prevailing from 1965 to 1974. During 1976 the and to allocate an adequate portion of savings personal saving rate has been close to 7 per cent. for investment in necessary plant and equipment Some students of savings behavior have and in working capital. . . ." hypothesized that the saving rate may decline The precarious balance at which these proas the relation of assets to income recovers from jections arrive between the demand for and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 1015 supply of capital in the private sector leaves the and cash flow. The relative weight of short-term public sector and especially the Federal Gov- debt has been reduced through consolidations ernment in a key position as the marginal sup- into long-term debt and also thanks to the relaplier—or user—of savings. At a time of low tive reduction in inventories. Business has also investment, as at present, a large deficit in the made efforts to shore up its equity capital posipublic sector can and indeed must be accom- tions through the sale of additional corporate modated. Under conditions of high investment, stock. But conditions have not been propitious such as are anticipated by the studies previously and the dollar amount of new issues of common referred to and also by the bill, a public sector and preferred stock has not yet duplicated the surplus will probably be required in order to pace prevailing in 1971 and 1972, although supplement private sector savings and to meet nominal GNP may be about 44 per cent higher the requirements of the legislation. A budget in 1976 than in 1972. The stock market, in real surplus adds to the Nation's savings, just as a terms, that is, making allowance for inflation, deficit absorbs savings. It may well be that the currently is at approximately the level of increase in investment that seems to be needed 1958-59, as measured by the Standard and will have to be matched by a corresponding Poor's 500 stock index. Contributing to this has Federal surplus in order to allow the added been a shrinkage in equity ownership, particuinvestment to be financed. I would interpret the larly on the part of individuals. The share-owner provision of the bill calling for an investment population, as shown by the New York Stock policy report by the President as part of the Exchange 1975 census, declined from 30.7 annual Economic Report to the Congress as million persons in early 1970 to 25.2 million dealing in part with this subject. in 1975. Mutual funds—another important vehicle for common stock participation—have posted net redemptions almost continuously THE FLOW OF FINANCING since 1971. Price/earnings ratios, as measured Given an adequate over-all supply of savings, by Standard and Poor's 500 stock index, dethere remains a need to channel an appropriate clined from more than 17:1 during the 1960's part of these savings into business investment to less than 13:1 in most of 1976, despite the and working capital. This is the process referred fact that this index represents by and large the to by the bill in the passage cited above calling stronger sector of public corporations. Legislafor "an economic environment in which there tion that pursues many highly desirable purwill be the incentive to invest sufficiently and poses, such as the Employee Retirement Income to allocate an adequate portion of savings for Security Act (ERISA), has had the unfortunate investment in necessary plant and equipment side effect of discouraging equity investment by and in working capital. . . ." Until very re- pension funds. In general, the market has been cently, this process was suffering from severe notably unreceptive to new issues of small, distortions that, unless halted and indeed re- venture-type enterprises and generally of other versed, would interfere seriously with the than financially strong firms. Conditions such smooth flow of saving into business investment, as these are unlikely to be supportive of the that is, with the process of business financing. purposes of the legislation. Over many years, external financing of business The Congress has set in motion efforts to increased relative to internal financing. Within improve conditions of equity financing through the growing component of external financing, legislation favoring the growth of employee the share of debt rose relative to the share of stock ownership plans (ESOP's). The Javitsequity financing, and within debt financing Humphrey "Employee Stock Ownership Fund short-term debt rose relative to long-term debt. Act of 1976" was introduced as a means of A good start has been made over the last year broadening this effort. A study sponsored by the or two in correcting these conditions. Internal Joint Economic Committee, Broadening the financing has increased, thanks to better profits Ownership of New Capital: ESOPs and Other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1016 Federal Reserve Bulletin • December 1976 Alternatives, examined the European institution A variety of tax devices could be employed of wage earners' investment funds, which per- for these purposes, and I list a few that are mits contribution of a firm's stock to a diversi- frequently suggested because I believe that they fied national fund in lieu of money wages as call for closer examination. A look could be part of a collective bargaining agreement. taken at the capital gains tax and its influence The tax system could be employed to imple- on capital mobility, willingness to purchase ment the investment goals of the bill. Invest- equities, and the supply of savings. The intement and saving could be stimulated by appro- gration of the corporate and personal income priate tax measures. Stock ownership could be tax offers opportunities with respect to the same broadened, capital mobility could be increased, objectives. The potential of the investment tax the present bias of the corporate tax against credit to stimulate investment and perhaps to equity financing could be reduced, research and encourage research and innovation may not yet technology that help to propel investment could have been sufficiently examined. Changes in the be favored. Needed stimulation of investment tax status of dividends and interest could concould work through the influence of tax reform tribute to a better structure of corporate finance. on the amount that households and corporations It would seem appropriate that the Investment can save, on the volume of savings invested in Policy Report required by the bill to review common stock, on the ability of capital to move Federal programs and other economic condifrom less productive to more productive uses, tions affecting capital investment in the United and in favor of reducing the present tax law's States should examine the feasibility of proposbias toward debt and against equity financing. als of this kind. • Statement by Philip C. Jackson, Jr., Member, days and the review of approximately 650 writ- Board of Governors of the Federal Reserve ten comments, the Board has published a second System, before the Committee on Banking, proposed revision of Regulation B to incorpo- Housing and Urban Affairs, U.S. Senate, No- rate the 1976 amendments to the Equal Credit vember 23, 1976. Opportunity Act. We are endeavoring to promulgate a final version of the regulation by early Thank you, Mr. Chairman, for the opportunity January so that creditors and consumers will to appear on behalf of the Board of Governors have the opportunity to become familiar with of the Federal Reserve System to discuss some its provisions prior to its effective date on March issues relating to the Fair Housing, Equal Credit 23, 1977. Opportunity, and Home Mortgage Disclosure After a public hearing and analysis of com- Acts. We have responded by letter (a copy of ments, amendments to Regulation Z to implewhich is attached to my written statement)1 to ment the Consumer Leasing Act were issued in the specific questions furnished by the commit- mid-October. In that area we are now preparing tee, and, therefore, I would like to summarize sample disclosure forms in order to assist lessors recent activity by the Board and the Federal in their compliance. Reserve Banks in the consumer field in general. A new Regulation AA, providing procedures Following two public hearings spread over 3 for consumer complaints, became effective on September 27. The number of consumer complaints has increased substantially since this regulation was promulgated. In addition, the lrThe attachments to this statement are available on Board is developing a new consumer complaint request from Publications Services, Division of Admincontrol system, to better monitor and analyze istrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. the flow and types of complaints. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 1017 The Board will shortly decide on applications ination procedures (including the preparation of for exemption from the requirements of the examination manuals and other materials), ap- Home Mortgage Disclosure Act on the part of propriate remedies for various types of violacertain State-chartered depositary institutions in tions, and ways to expand and improve infor- California, Illinois, Massachusetts, and New mational services for creditors and consumers. York. In addition, the Board's staff has been The task force plans to report its recomresponding to numerous inquiries from deposi- mendations to the Board by the end of this year. tary institutions, public officials, and a few Finally, the new Consumer Advisory Council private citizens regarding the requirements of has been established. The 26 members were the Act, as implemented by the Board's Regu- selected from over 400 candidates whose names lation C. Following the initial September 30 were submitted following the Board's solicidisclosure deadline, the Reserve Banks have tation of the names of highly qualified individexamined approximately 65 State member banks uals. The Council's chairman is Mrs. Leonor for compliance with Regulation C and have Sullivan, a distinguished member of the House investigated and resolved complaints against 3 of Representatives, and the vice chairman is others. Professor William Warren, Dean of the Univer- The Board, in conjunction with the Reserve sity of California Law School at Los Angeles. Banks, is expanding its educational activities in The other 24 members are distinguished repretwo directions. Believing that a higher level of sentatives with academic, consumer, and inawareness and understanding will in turn pro- dustry backgrounds. Brief biographical sketches duce a higher level of compliance, the Board regarding each council member are attached to is increasing its efforts to educate and assist my written statement. State member banks, particularly small ones, in The Council met initially on November 10 how to comply with the many consumer regula- and 11. It discussed issues involving the effects tions affecting their operations. The Board is test under the Equal Credit Opportunity Act and also attempting, through staff participation in Regulation B, ways to identify unfair and depublic forums and the preparation of explana- ceptive banking practices under the Federal tory materials, to heighten the level of aware- Trade Commission Improvement Act, and simness of consumers regarding their rights and plification of the Truth-in-Lending disclosures remedies under the various consumer regula- under Regulation Z. Four meetings of the tions. Council are scheduled for 1977. The Federal Reserve System has decided to With that summary as background, I would initiate a program of special consumer regula- like now to turn to the concern evidenced in tion compliance examinations for State member your letters of September 29 and November 8 banks; 45 such examinations have already been regarding the Board's intended use of the loan conducted. To implement this decision, a spe- information available under the Home Mortgage cial consumer compliance examination school Disclosure Act. was held in late September to expand the train- Let me reiterate first that a System-wide speing of examiners regarding the requirements of cial task force is studying this question, along the consumer credit regulations and methods of with other enforcement matters. However, the enforcing them. Another 8-day school will be present prospect is that home mortgage discloheld at the end of this month, and four additional sure data will have limited usefulness in monisessions are planned in each of the next 2 toring compliance with the Fair Housing and years. Equal Credit Opportunity Acts. The reason for A special task force from the Board and the its limited usefulness is threefold. Reserve Banks is currently studying a number First, the Home Mortgage Disclosure Act was of issues concerning the examination and en- designed not as an enforcement tool but as a forcement process. It is considering, among means whereby depositors and local public other items, special consumer regulation exam- officials could learn how particular depositary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1018 Federal Reserve Bulletin • December 1976 institutions invested the deposits entrusted to may have been impermissibly discriminated them. against—that is, those who were turned down. Second, the Act was intended to shed light Finally, if the Board adopts the proposed on local mortgage lending patterns and therefore revision of Regulation B that was recently isfocuses on disclosure of the geographic location sued for comment, information will also be of mortgaged property. The Fair Housing and available for examination purposes on the race Equal Credit Opportunity Acts, on the other and national origin, sex, marital status, and age hand, are antidiscrimination statutes, focusing of residential real estate loan applicants that on the personal characteristics of borrowers. voluntarily provide that information. Thus, an analysis of urban mortgage loan data While preliminary indications are that the will not necessarily reveal anything about dis- home mortgage disclosure information may not crimination on the basis of an applicant's race, be very useful in monitoring compliance with national origin, religion, sex, marital status, or antidiscrimination laws, the Board's staff inage. tends to consult with officials in California, Finally, the Home Mortgage Disclosure Act Illinois, Massachusetts, and New York to dedoes not provide any information on the number termine what use, if any, is being made of the of applications received by an institution relat- data available under the disclosure laws of those ing to a particular geographic area. Without data States. The Board has also indicated its willon loan demand, an examiner cannot effectively ingness to cooperate with the Federal Deposit use the loan disclosure figures presently avail- Insurance Corporation (FDIC) and Federal able to uncover possible signs of illegal dis- Home Loan Bank Board (FHLBB) in any effort crimination. on their part to collect and analyze mortgage In contrast to the Home Mortgage Disclosure disclosure data from institutions in the 30 largest Act, the Equal Credit Opportunity Act and im- standard metropolitan statistical areas, should plementing Regulation B provide more appro- that appear feasible. Finally, the Board will be priate and useful tools for monitoring compli- interested in reviewing the preliminary results ance with antidiscrimination laws. First, they of the joint Comptroller-FDIC pilot study of clearly delineate those lending activities that are mortgage applicant and loan information. impermissible, thereby providing lenders and In any event, as a consequence of the Home examiners with solid benchmarks by which to Mortgage Disclosure Act disclosures and the judge particular lending practices. Second, Board's new consumer complaint procedures, Regulation B requires that records be retained more consumer complaints are likely to be on rejected as well as accepted applications, brought to our attention. These complaints will allowing examiners to note the location of the aid the compliance monitoring process by real property offered as security and the finan- pointing toward the need for examination of the cial characteristics of that class of applicants that banks involved. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1019 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 19, 1976 1. Domestic Policy Directive Preliminary estimates of the Commerce Department indicated that growth in real output of goods and services had slowed a little further in the third quarter to an annual rate of 4 per cent, from 4.5 per cent in the second quarter. According to these estimates, expansion in personal consumption expenditures had picked up somewhat in the third quarter from the reduced rate in the preceding quarter; business fixed investment had continued to expand at a moderate pace; and residential construction had continued to recover, although less rapidly than earlier in the year. At the same time, however, businesses apparently added somewhat less to inventories than in the second quarter, and net exports of goods and services were reduced as the rise in the dollar volume of exports fell short of that in imports. The rise in personal disposable income slowed considerably, and the rate of personal savings declined. Staff projections continued to suggest that growth in real GNP would pick up somewhat in the fourth quarter and would be sustained at about the fourth-quarter rate well into 1977. However, the projected rates of growth were slightly below those of a month earlier, chiefly because the expected expansion in business fixed investment had been scaled down somewhat. It was still 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 would increase at a moderate pace; and that business investment in inventories would increase in line with sales. In September retail sales had changed little, according to the advance report; moreover, revised figures for August showed less of an increase than had been reported a month earlier. The rise in total retail sales in the third quarter as a whole was close to the reduced pace of growth in the second quarter. Sales of new cars were at an annual rate of just over 10 million units in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1020 Federal Reserve Bulletin • December 1976 third quarter, about the same as in the preceding two quarters. On the other hand, sales at retail outlets other than those for automobiles and building materials expanded somewhat more in the third quarter than in the second. The third-quarter gain was comparatively large for sales at general merchandise stores. Industrial production was unchanged in September, after having risen at an annual rate of about 6 per cent on the average over the preceding 6 months. Output was held down by a strike, beginning at midmonth, that curtailed production of automobiles and trucks at the plants of a major producer. The effect of that strike was offset in part by increases in production after settlement of strikes in the rubber and bituminous coal industries. In September production of household durable goods and of consumer nondurable goods rose somewhat, and output of business equipment continued to expand at a slow pace. Production of materials was about unchanged. In the third quarter as a whole, capacity utilization in the materials-producing industries was 81 per cent, compared with a rate of about 80 per cent in the preceding quarter. After adjustment for strikes, payroll employment in nonfarm establishments continued to expand in September at a relatively moderate pace. In contrast with the immediately preceding months, a large part of the gain in September was in manufacturing. As measured by the household survey, both total employment and the civilian labor force declined in September, and the unemployment rate edged down from 7.9 to 7.8 per cent, the rate that had been recorded in July. Growth in personal income in September was somewhat above the reduced rate in August, but it was still below the average monthly rate over the whole period of economic recovery that had begun in early 1975. In both August and September income of farm proprietors declined, reflecting decreases in prices received for a number of commodities. In recent months, moreover, growth in wage and salary payments had slowed. New orders for nondefense capital goods—which had risen by an unusually large amount in July, marking the seventh consecutive month of advance—fell back in August to about the June level. However, the average for July and August was well above the monthly average for the second quarter. Unfilled orders for such goods changed little in August, following a sizable increase in July. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1021 Contract awards for commercial and industrial buildings—measured in terms of floor space—edged down in both July and August, but the average level for the 2 months about equaled that for the second quarter. Private housing starts were reported to have increased sharply in September, following the rebound in August—suggesting a sizable increase from the second to the third quarter. In August the dollar volume of mortgage commitments outstanding at savings and loan associations had continued to advance, reaching a new record level, and in recent weeks interest rates on home mortgages—especially in the more sensitive secondary market—had edged down. The index of average hourly earnings for private nonfarm production workers rose little in September. On a quarterly-average basis the rate of increase in the third quarter was up slightly from that in the preceding two quarters, but it remained below the rapid rate during 1975. The wholesale price index for all commodities rose sharply in September, after little change in August and a moderate rise in the preceding 3 months. Average prices of farm products and foods increased, after 2 months of decline, but they remained lower than a year earlier. Average prices of industrial commodities rose somewhat more in September than in other recent months, reaching a level about 63A per cent higher than in September 1975. The average value of the dollar against leading foreign currencies remained relatively steady over the 4 weeks between the September and October meetings of the Committee. The dollar declined somewhat against the German mark and associated currencies in the European Community "snake" arrangement, but it rose against the pound sterling and the French franc. On October 18 the mark was revalued by an average of 3 per cent against the associated currencies; specifically, the mark was adjusted upward by 2 per cent against the Belgian franc and Dutch guilder, by 3 per cent against the Norwegian krone and Swedish krona, and by 6 per cent against the Danish krone. The U.S. foreign trade deficit diminished somewhat in August, but it was still nearly twice as large as the monthly-average deficit in the second quarter. From the second quarter to the July-August period imports rose at a much faster pace than exports, reflecting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1022 Federal Reserve Bulletin • December 1976 large increases in imports of fuels, industrial supplies, and some consumer goods. Data released since the September meeting indicated that in the second quarter the current account of U.S. international transactions had been in surplus, despite the deficit in merchandise trade. From the first to the second quarter direct investment transactions—both U.S. and foreign direct investment—shifted from net outflows to net inflows. In other industrial countries, as in the United States, the pace of economic expansion had slowed since the spring. For most countries, according to the latest data available, industrial production in July or August was only at about the level of 4 months earlier, and despite rapid advances in late 1975 and early 1976, it had not regained its pre-recession peak in any of the major countries. Nevertheless, inflation rates in most countries remained high. In September total credit at U.S. commercial banks expanded at an annual rate of about 6 per cent; total loans and holdings of securities other than U.S. Treasury obligations both grew at a more rapid pace than in August while holdings of Treasury securities declined. Business loans expanded appreciably, but a sizable part of the increase reflected acquisitions of bankers acceptances by money center banks that were adjusting their end-of-month statements. A decline in outstanding commercial paper of nonfinancial businesses exceeded the increase in loans at banks, so that total short-term business credit contracted. The narrowly defined money stock (Mi)—which had grown at rates of 63A and 6 per cent in July and August, respectively—was about unchanged in September.1 On a quarterly-average basis M x grew at a rate of about 4 per cent in the third quarter, compared with about 8V2 per cent in the second quarter. This retardation in growth could be accounted for in part by the slowing of the expansion in nominal GNP. Weekly data suggested that growth in M was rebounding in October. x lrThe monetary growth rates reported at this meeting were based on revised measures of the monetary aggregates—reflecting new benchmark data for deposits at nonmember banks—that were published on October 21, 1976. In general, the revisions were small. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1023 Despite the lack of growth in M in September, the broader x monetary aggregates (M and M ) grew substantially, as inflows 2 3 of the time and savings deposits included in those aggregates were exceptionally strong. Expansion in savings deposits was particularly large. Businesses and State and local governments apparently continued to divert funds into such accounts from demand deposits and market securities. Commercial banks and thrift institutions in general appeared to have maintained interest rates offered on time and savings deposits at the ceilings allowed under Regulation Q even though rates on competing market securities had dropped below those ceilings. On a quarterly-average basis, M and M 2 3 grew in the third quarter at rates of about 9 and IIV2 per cent, respectively, compared with about 10% and 12 per cent in the second quarter. System open market operations since the September meeting had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the period ahead. Data that had become available in the days immediately following the September meeting suggested that in the September-October period growth in M 1 would be near the midpoint of the range that had been specified by the Committee and that growth in M would be within its range. 2 Accordingly, System operations had been directed toward maintaining conditions of reserve availability consistent with a Federal funds rate of about 5Va per cent—the rate prevailing at the time of the September meeting. Data that became available at the end of September indicated a substantial weakening in the growth of demand deposits. It appeared that in the September-October period growth in M would x be below the lower end of the specified range while growth in M would be close to the midpoint of its range. In those circum- 2 stances the System began to be a little more accommodative in the provision of reserves, and the Federal funds rate eased to about 5 per cent. Over the inter-meeting period the System's slightly more accommodative posture, in conjunction with continuing indications of a slowing in the pace of economic expansion and downward revisions in various, widely publicized projections of growth in GNP, led to fairly sizable declines in market interest rates. De- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1024 Federal Reserve Bulletin • December 1976 creases in rates ranged from 10 to 35 basis points on short-term instruments, to as much as 50 basis points on some intermediate-term Treasury notes, and from 5 to 25 basis points on long-term bonds. Yields on new State and local government bonds and on new corporate issues reached their lowest levels since February 1975 and February 1974, respectively. Stock prices declined sharply over the inter-meeting period. In recent months many corporations had reported substantial gains in earnings per share, but prices apparently were affected more by various uncertainties in the outlook. Gross offerings of new corporate bonds expanded somewhat in September from their summer low, but the volume remained much smaller than that in the heavy financing months of last winter and spring. In the market for State and local government bonds, the volume of new issues remained unusually large in September, and there was improvement in investors' reception of lesser-rated issues. The Treasury continued to borrow sizable amounts of funds during the inter-meeting period, raising about $4Vi billion of new money. Market expectations of the size of the Treasury's fourthquarter requirements for new cash were reduced considerably, in response to a substantial shortfall in Federal outlays in the third quarter from earlier budget forecasts and to a rise in the Treasury's cash balance to a record level at the end of September. Nevertheless, the Government's financing requirements were generally expected to be greater in the fourth quarter than they had been in the third. The Treasury was expected to announce the terms of its mid-November refunding on October 27; of the maturing issues, the public held about $4 billion. Business demands for credit also were expected to be somewhat larger in the fourth quarter than in the third. In particular, it appeared likely that public offerings of corporate bonds would rise significantly from seasonally low levels in the summer and that short-term business borrowing would pick up somewhat. It also seemed likely that borrowings by State and local governments would remain large, as such governmental units continued to take advantage of improved market conditions to finance programs that had been postponed because of earlier market unsettlement. During the Committee's discussion of the economic situation, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1025 several members expressed the view that the economic outlook was less favorable now than it had been a month or two ago, and that the risk of a shortfall from expected growth rates in real GNP had increased. One member indicated that, while the expansion was proving to be less vigorous in 1976 than he had hoped, he was optimistic that conditions would improve in 1977. No member suggested that a decline in economic activity was likely, but some of the members expressed concern that the rate of growth in coming quarters would not achieve a sufficient reduction in unemployment. Serious concern was also expressed by various members about the persistence of a high rate of inflation. In the course of the discussion, it was pointed out that uncertainty about the fiscal policy that would be pursued in the months ahead—and about projections of economic activity for coming quarters—was greater than usual. For that matter, the preliminary Commerce Department estimates of GNP for the third quarter were subject to revisions in either direction. It also was noted that available statistics on retail sales did not reflect the most recent developments, and that there had been some indication that sales at general merchandise stores had improved in the first half of October. And while the declines in farm prices had reduced farm income, they also had had favorable implications for consumption and for the over-all rate of inflation. One member suggested that the resolution of the uncertainties always associated with a Presidential election might possibly have some beneficial effects on the behavior of the economy, however the election turned out. Those concerned that the economic expansion might remain sluggish offered several reasons for that view. First, the slower growth of personal income since spring—which was attributed mainly to the slower growth of production, although in August and September the decline in agricultural income had been an important factor—might have lasted long enough to begin having feedback effects on spending and output. Second, the combination of protracted sluggishness in markets for consumer goods and the decline in stock prices—which might be indicative of some deterioration in confidence—raised questions about how strongly businessmen would pursue plans for expenditures on fixed capital. Third, demands for U.S. exports could be adversely affected both by the slowing in economic growth in other industrial countries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1026 Federal Reserve Bulletin • December 1976 and by a recent turn toward restrictive policies in a number of European countries. It was also observed in the discussion that under existing circumstances it might well have been a mistake to think that a full recovery in economic activity here and abroad would be achieved quickly. The fundamental explanation for the recent worldwide pattern of sluggish economic activity was likely to be found in a common basic cause. Following a period of speculative excesses of various kinds, the United States and other countries had experienced an unexpected and severe recession at a time when many people had come to believe that recessions could no longer occur. As a result, businessmen in this country, and for that matter around the world, had become more cautious than before in managing inventories and in planning outlays for fixed capital. But, it was added, confidence was gradually returning to the business community and readjustments that had been postponed too long were taking place. A question was raised during the discussion as to whether traditional fiscal and monetary policies could be relied on to the same extent in the current environment, where inflation coexisted with somewhat sluggish expansion in activity, as in the past. Rather, structural modifications of various kinds might well be necessary to restore full health to the economy. 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 1? 4V2 to 7 per cent; M , IVi to 9V2 per cent; and M , 9 to 11 per 2 3 cent. The associated range for growth in the bank credit proxy was 5 to 8 per cent. At this meeting the Committee held a preliminary discussion of the appropriate ranges for growth in the monetary aggregates for the period from the third quarter of 1976 to the third quarter of 1977. Chairman Burns' testimony before the Senate Banking, Housing and Urban Affairs Committee concerning those ranges was scheduled for November 11, 1976. Since 23 days would elapse before that testimony, it was agreed to defer a decision on the growth ranges until November 8. With respect to annual rates of growth in the aggregates over the October-November period, most members favored a range of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1027 5 to 9 per cent for M given the rebound in growth already in 1? train for October. For M , most members favored a range of 9 2 to 13 per cent. While it was noted that these ranges were high in relation to the Committee's 12-month ranges for growth in these aggregates, it was argued that the Committee should consider that Mi had not grown at all in September and that recent and prospective rates of growth in M —and in M as well—reflected the 2 3 temporary stimulus provided by recent declines in yields on market securities to levels below the rates being offered on deposits. Two members favored slightly lower 2-month ranges—specifically, 4Vi to 8 or 4% to 9 per cent for M and 8 to 12 per cent for M . x 2 With respect to money market conditions in the period until the next meeting, most members favored a slight easing. Of these, a number advocated seeking to feduce the weekly-average Federal funds rate from its present level of about 5 per cent to 4% per cent in the first week of the period, and permitting the rate to vary, depending on the behavior of the monetary aggregates, within a range of 4Vi to 5xk per cent over the remaining weeks. Others, chiefly those who placed more stress on the elements of weakness in the economic outlook, favored aiming in the near term for a slightly larger reduction in the funds rate—to 4% per cent—unless incoming data on the monetary aggregates suggested unexpectedly strong growth. Most of the latter group favored specifying an inter-meeting range for the funds rate of A1/* to 5lA per cent, although one expressed a preference for a range of AVi to 5XA per cent. Not everyone favored some immediate easing. One member who preferred a AVi to 5lA per cent range for the Federal funds rate suggested that no reduction from the current level of about 5 per cent be sought unless the monetary aggregates appeared to be weaker than expected; another indicated that he had some marginal preference for that course. With respect to the formulation of the last paragraph of the domestic policy directive, one member suggested placing greater emphasis on money market conditions than in the directive issued at the previous meeting. Others, however, preferred to retain language similar to that adopted in September. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1028 Federal Reserve Bulletin • December 1976 Specifically, the Committee concluded that growth in M and M x 2 over the October-November period at annual rates within ranges of 5 to 9 per cent and 9 to 13 per cent, respectively, would be appropriate. It was understood 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. 1 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 4V2 to 5V4 per cent. It was also agreed that the Manager should aim to reduce the Federal funds rate to about 47s per cent within the next week, and to decide on subsequent objectives on the basis of incoming data on the monetary aggregates. 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 slowed somewhat further in the third quarter. In September retail sales changed little, following a sizable increase in August. Industrial production was unchanged in September; in the latter half of the month output of automobiles and trucks was curtailed by a strike at plants of a major producer. Payroll employment in nonfarm establishments rose further; according to household survey data, the unemployment rate edged down from 7.9 to 7.8 per cent, as total employment and the civilian labor force both declined. The wholesale price index for all commodities rose sharply in September; average prices of farm products and foods increased, after 2 months of substantial declines, and average prices of industrial commodities rose somewhat more than in other recent months. The advance in the index of average wage rates has remained somewhat below the rapid rate of increase during 1975. The average value of the dollar against leading foreign currencies has remained relatively steady in recent weeks, declining somewhat against the German mark and associated European currencies but rising against the pound sterling and the French franc. On October 18 the mark was revalued by an average of 3 per cent against the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1029 associated European currencies. In August the U.S. foreign trade deficit remained larger than the monthly average in the second quarter; over all, the current account had been in surplus in the second quarter. M was about unchanged in September. However, M and M x 2 3 grew substantially, as inflows of the time and savings deposits included in these broader aggregates were exceptionally strong. Market interest rates generally have declined 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, Partee, Wallich, and Winn. Votes against this action: None. Two days after the meeting, on October 21, available data indicated surprisingly strong growth in the monetary aggregates in the latest weeks and suggested that over the October-November period rates of growth in both M and M would be at about the x 2 upper limits of the 2-month ranges specified by the Committee. Therefore, unless later data provided contrary indications, any reduction in the Federal funds rate in the current week—pursuant to the Committee's consensus at the meeting on October 19—would probably have to be reversed in the next week. Against that background, and in light of the unexpected spurt in growth of the monetary aggregates, Chairman Burns recommended that the Manager be instructed to continue to aim for a Federal funds rate of about 5 per cent during the current week. All members of the Committee, with the exception of Mr. Coldwell, concurred in the Chairman's recommendation. (Messrs. Timlen and Mayo responded as alternates for Messrs. Volcker and Winn, respectively.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1030 Federal Reserve Bulletin • December 1976 Data becoming available during the following week continued to suggest unexpected strength in the monetary aggregates. In response to an inquiry from the Manager concerning the appropriate interpretation of the Committee's instructions, Chairman Burns noted that at the meeting held on October 19 the Committee had agreed upon a policy course that contemplated a slight easing of money market conditions, and that the objective for the weeklyaverage Federal funds rate would have been reduced to about 47/s per cent had there not been subsequent indications of surprising strength in the monetary aggregates. Accordingly, the Chairman advised that in his judgment any significant increase in the funds rate at this time from the prevailing level of 5 per cent would be inconsistent with the Committee's intent. No member of the Committee expressed the view, that a rise in the Federal funds rate would be appropriate. 2. Longer-run Growth Ranges for Monetary Aggregates On November 8, 1976, the Committee held a telephone conference meeting for the purpose of reaching a decision on the growth ranges for the monetary aggregates for the period from the third quarter of 1976 to the third quarter of 1977. It was observed in the discussion that the growth ranges adopted should serve to encourage economic expansion. It was also observed—with respect to the longer run—that if a reasonable degree of price stability was to be restored in the country, substantial reductions in the growth rates of the aggregates would be required over the next few years. In the latter connection, it was noted that during the past year or so the Committee had made some small reduction in its 1-year growth ranges. For Mi, the discussion of the ranges for the year beginning with the third quarter of 1976 largely revolved around two alternatives: 4V2 to 7 per cent, the range that had been agreed upon in July for the year beginning with the second quarter, and 4Vi to 6V2 per cent. A principal argument advanced in favor of a reduction at this time in the upper limit of the M range to 6V2 per cent was that x recent changes in financial technology—some of which had resulted from regulatory changes—were working to lower the volume of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1031 demand deposits that the public wished to hold for transactions purposes. These changes had resulted in a significant increase in the velocity of M over the year ending with the third quarter of x 1976, and they were likely to have continuing effects over the coming year. Account was taken of the risk that a reduction in the upper limit for M now, when the economy was experiencing x a "pause," might be misinterpreted by the public as a step toward greater monetary restraint. It was noted, however, that a AVi to 6V2 per cent range for growth in M over the coming year would x permit a considerable increase in M growth from the rate of about x 4V2 per cent actually recorded over the past year, should an increase prove to be desirable. Thus, such a growth range would provide ample scope for faster monetary growth, while still seeking a gradual return to general price stability. Among the considerations advanced in favor of retaining the 4V2 to 7 per cent range for M at this time were the uncertainties x in the economic outlook—which, it was suggested, had increased somewhat since the mid-October meeting. Also, it was noted that growth of Mi from the second to the third quarter of 1976 had been at an annual rate of about 4 per cent, or somewhat below the lower limit of the range adopted in July for the year beginning with the second quarter. For that reason, even if the same range of percentage growth rates was retained for the year beginning with the third quarter, the absolute levels implied for the fourth and subsequent quarters would be below those that had been implied by the decision in July. With respect to the broader aggregates, a number of members who favored—or were prepared to accept—a reduction in the upper limit for M suggested that any such change be accompanied by x some increase in the upper limits of the ranges for M and M . 2 3 It was noted that growth in the broader aggregates had been considerably higher relative to growth in M than had been anticix pated at the time of the July meeting, when the upper limits of the ranges for M and M had been reduced. Expansion in the 2 3 types of time and savings deposits included in the broader aggregates had been larger than expected mainly because short-term market interest rates had proved to be lower than anticipated while rates offered by bank and nonbank thrift institutions had remained generally at regulatory ceilings. Under such circumstances, it was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1032 Federal Reserve Bulletin • December 1976 observed, it would be appropriate to accommodate higher rates of growth in M and M than contemplated in July, if they should 2 3 develop. Various reasons for not raising the upper limits of the ranges for M and M were offered in the discussion. It was suggested 2 3 that a reduction in the upper limit for M, with no change in the x limits for the broader aggregates, would to some degree achieve the realignment of the ranges that appeared to be indicated, and that simultaneous increases and decreases in the different ranges could prove confusing to the public. It was also noted that the rates of growth in M and M from the second to the third quarter 2 3 were close to, or above, the upper limits of the ranges adopted in July. If the relatively slow third-quarter growth in M was viewed x as an argument against reducing its range, by analogous reasoning the relatively rapid growth in the broader aggregates could be viewed as militating against an increase in their ranges. At the conclusion of its discussion the Committee arrived at a consensus calling for a reduction of of a percentage point in the upper limit of the range for M and increases of the same x amount in the upper limits of the ranges for M> and M. The new 3 ranges thus were set at AV2 to 6V2 per cent for M, IV2 to 10 x per cent for M, and 9 to 11% per cent for M. The associated 2 3 range for the rate of growth in the bank credit proxy was unchanged at 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 the year ahead. The Committee adopted the following ranges for rates of growth in monetary aggregates for the period from the third quarter of 1976 to the third quarter of 1977: M 4Vi to 6V2 per cent; M, IV2 to u 2 10 per cent; and "M, 9 to WV2 per cent. 3 Votes for this action: Messrs. Burns, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, Winn, Guffey, and Timlen. Votes against this action: None. Absent and not voting: Messrs. Balles and Volcker. (Messrs. Guffey and Timlen voted as their respective alternates.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 1033 3. Special Authorization with Respect to Drawings on Swiss National Bank At its meeting on September 21, the Committee had voted to approve the following special authorization: The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York to arrange for repayment of the System's outstanding swap commitments to the Swiss National Bank (concurrent with repayment by the U.S. Treasury of Treasury notes denominated in Swiss francs and held by the Swiss National Bank), within a 3-year period by means of quarterly payments on a schedule that is mutually satisfactory to the Swiss National Bank, the U.S. Treasury, and the Federal Reserve. This authorization shall become effective upon final approval of technical details by the Chairman of the Federal Open Market Committee. 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. The technical details of the arrangements were approved by Chairman Burns on October 26, 1976, and the authorization became effective on that date. At the time of the September 21 meeting the Federal Reserve had outstanding commitments of $1,147 million equivalent on its swap line with the Swiss National Bank. These commitments represented the balance remaining on drawings made in May and August 1971—the latter just before the U.S. Government suspended the convertibility of the dollar into gold and other reserve assets. In addition, the Swiss National Bank held U.S. Treasury notes denominated in Swiss francs in the amount of $1,599 million equivalent. On August 15, 1971, when the suspension of convertibility was announced, the Federal Reserve had outstanding commitments in Swiss francs of $1,600 million equivalent, including $600 million drawn on the Bank for International Settlements that was later consolidated with the commitments to the Swiss National Bank. The Federal Reserve had made some progress in repaying these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1034 Federal Reserve Bulletin • December 1976 commitments during 1972, 1973, 1974, and early 1976, using francs acquired both through market purchases and in direct transactions with the Swiss National Bank. It was recognized, however, that substantial market purchases for the purpose of making larger repayments would have augmented the already strong upward pressures on the franc. Accordingly, discussions were undertaken with a view to securing a negotiated settlement that would avoid disturbing the exchange markets.2 The Manager reported at the September 21 meeting that a tentative arrangement had been worked out among the Federal Reserve, the U.S. Treasury, and the Swiss National Bank establishing an orderly procedure for the repayment within 3 years of both the System's and the Treasury's indebtedness to that Bank. After discussion, the Committee had approved the proposed arrangements, subject to the provision that the Committee's authorization would become effective upon final approval of technical details by the Chairman. 2 During this period discussions also were under way with the Swiss (as well as the Belgian) monetary authorities with respect to various aspects of outstanding System drawings, including adjustments to reflect changes in currency valuations. In December 1975 the dollar equivalent of the commitments to the Swiss National Bank incurred by the System in 1971 had been adjusted upward by $196 million to take account of the two U.S. dollar devaluations of 1971 and 1973. 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

1035 Law Department Statutes, regulations, interpretations, and decisions years or more, at a rate not to exceed llA per Interest on Deposits cent.2 The Board of Governors has amended its Regu- (3) Investment Certificates—Member banks lation Q to permit member banks to pay all or may pay interest on any time deposit of $1,000 a portion of a time deposit prior to maturity with- or more, with a maturity of six years or more, out imposing the early withdrawal penalty when at a rate not to exceed IV2 per cent.2 the deposit represents funds deposited to a Keogh (H.R. 10) plan and when the individual for whose 2The $1,000 minimum denomination requirement does not benefit the account is maintained attains age 59V2 apply to time deposits representing funds contributed to an or becomes disabled, and to permit member banks Individual Retirement Account or Keogh (H.R. 10) plan esto waive the $1,000 minimum denomination re- tablished pursuant to 26 U.S.C. (I.R.C. 1954) §§ 408, 401. quirement for time deposits with 4- and 6-year maturities at ceiling rates of llA and IV2 per cent Rules of Organization when such deposits are made pursuant to Keogh plans. The Secretary of the Board has approved several Effective November 8, 1976, sections 217.4 and amendments to the Board's Rules of Organization 217.7 are amended to read as follows: to bring up to date descriptions of the functions of the various offices and divisions of the Board. Section 217.4—Payment of Effective October 29, 1976, the Rules of Orga- Time Deposits Before Maturity nization of the Board of Governors of the Federal Reserve System are amended as follows: (d) Penalty for early withdrawals. * * * Where 1. Section 3 of the Rules of Organization is a time deposit representing funds contributed to amended to read as follows: an Individual Retirement Account or a Keogh (H.R. 10) plan established pursuant to 26 U.S.C. Section 3.—Central Organization (I.R.C. 1954) §§ 408, 401 is paid before maturity The Board's central organization consists of the when the individual for whose benefit the account following Offices, Divisions, and officials: is maintained attains age 59^ or is disabled (as (a) Office of Board Members consists of the defined in 26 U.S.C. (I.R.C. 1954) §72(m)(7)) or members of the Board, Counsel to the Chairman, thereafter, a member bank may pay all or a portion Assistants, and Special Assistants to the Board of such time deposit without a reduction or forfeiassigned to public affairs and Congressional liaiture of interest as prescribed by this paragraph. son. (b) Office of Staff Director for Monetary Policy is responsible for FOMC staff activities, Section 217.7—Maximum Rates of preparation of proposals on monetary policy in- Interest Payable by Member Banks struments including discount rates and reserve on Time and Savings Deposits requirements, coordination of staff work on regulatory issues closely related to monetary policy and the functioning of money and capital markets, (b) Time deposits of less than $100,000. liaison with the Trading Desk at the Federal Reserve Bank of New York, liaison with Government agencies and private groups in connection with (2) Member banks may pay interest on any time debt and cash management policies, interdepartdeposit of $1,000 or more, with a maturity of four mental coordination of monetary policy planning Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1036 Federal Reserve Bulletin • December 1976 with foreign exchange operations, and coordina- of financial regulation on the structure and function of System statistical programs related to tioning of financial markets. monetary policy operations. (g) Division of International Finance, headed (c) Office of Staff Director for Management by a Director, provides the Board and the Federal is responsible for the planning and coordination Open Market Committee with information and of staff operations and organization and for re- economic analysis on international questions afsource management, and supervision of the fol- fecting U.S. monetary policy and the exercise of lowing functions: Board building administration regulatory responsibilities; conducts research in and operations, Board budget and accounting ac- these areas; provides staff work in connection with tivities, data processing, personnel-related activi- the supervision of foreign operations of the Federal ties, Equal Employment Opportunity, contingency Reserve System, the membership of the Chairman planning operations, and coordination of the of the Board on the National Advisory Council banking structure program activities. on International Monetary and Financial Policies, (d) Office of the Secretary, headed by the and the role of the Chairman of the Board as U.S. Board's Secretary, coordinates and handles items Alternate Governor to the International Monetary requiring Board action, including actions under Fund. delegated authority; prepares agenda for Board (h) Division of Federal Reserve Bank Operameetings; implements actions taken at Board tions, headed by a Director, advises and assists meetings; prepares, circulates and indexes minutes the Board with respect to matters concerning the of the Board; performs special functions in con- planning and programs for operation of the Federal nection with meetings of the Conference of Chair- Reserve Banks. The Division monitors the implemen of Federal Reserve Banks, Conference of mentation and achievement of such programs and Presidents of Federal Reserve Banks, Federal Ad- informs the Board of the status of each program. visory Council, Consumer Advisory Council, and It provides an appraisal of Reserve Bank building other System groups; provides assistance to the programs, and recommendations on building pro- Board in connection with appointment of directors gram matters; provides analysis and recomof Federal Reserve Banks; makes arrangements for mendations for Board policy in the payments individuals and groups visiting the Board, both mechanism area; provides an appraisal of Reserve foreign and domestic; maintains custody of and Bank communication and automation plans and provides reference service to official records of the proposals and recommendations to the Board in Board; handles correspondence and public infor- such areas; reviews the lending and credit activimation requests; secures passports and visas for ties of the Reserve Banks; and maintains liaison official foreign travel of System personnel; de- with various interested parties on payments mechvelops management systems for the Office; and anism matters. The Division also coordinates the provides relief secretarial and stenographic ser- printing and distribution of Federal Reserve notes vices. and is jointly responsible with the Bureau of the (e) Legal Division, headed by the Board's Mint for the production and distribution of coin. General Counsel, advises and assists the Board (i) Division of Federal Reserve Bank Examiwith respect to legal aspects of its daily operations, nations and Budgets, headed by a Director, asincluding applicable statutes, regulations, applica- sists the Board in its management-control respontions, interpretations, opinions, orders, hearings, sibilities with respect to the Federal Reserve Banks litigation, and legislation. and advises the Board on matters concerning (f) Division of Research and Statistics, headed operations, planning and programs of the Reserve by a Director, provides the Board and the Federal Banks within its area of responsibility. The Divi- Open Market Committee with the economic anal- sion is responsible for financial examinations of ysis and information needed for current operations, the Federal Reserve Banks and for operational for the formulation of monetary and credit poli- reviews of Reserve Bank functions including: cies, and for the exercise of responsibilities with Protection, Fiscal Agency, Open Market, Check regard to bank regulation; prepares, publishes, and Processing, Data Processing, Communications, interprets a variety of statistical series in the fi- Coin and Currency, Audit and various staff funcnancial and nonfinancial fields; conducts basic tions. The Division administers an expense control research relating to the effects of monetary policy and budgeting system for collection and analysis on economic activity and prices, and to the effects of budget and expense data; prescribes accounting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1037 principles, standards and related requirements to matters pertaining to the Federal Reserve Banks. be followed by the Reserve Banks; and provides (m) Division of Administrative Services, certain centralized financial accounting services. headed by a Director, serves as the central pro- The Division also maintains liaison with the curement, duplicating, communications, and serv- Treasury and other Government agencies and with ice unit of the Board and advises and assists the various interested parties on matters related to Board with respect to such matters. It also per- Reserve Bank operations within its area of re- forms various administrative functions, including sponsibility. the distribution of Board publications and the (j) Division of Banking Supervision and Reg- operation of the Board's building and other faciliulation, headed by a Director, coordinates the ties. bank supervisory functions of the System and (n) Office of the Controller, headed by the evaluates the examination procedures of the Re- Board's Controller, is responsible for maintaining serve Banks; exercises general supervision of the an effective internal financial management system, commercial and fiduciary activities of State mem- including budgeting, accounting, reporting, interber banks; administers the supervisory features of nal and contract auditing, and operational analylaws and regulations relating to affiliates and bank ses; determining assessments on the Federal Reholding companies, supervises various foreign serve Banks for funds to cover expenses of the banking activities of member banks and foreign Board; receiving and disbursing the Board's funds; banking and financing corporations; administers and handling reimbursement to the Treasury the public disclosure provisions of the Securities Department for the printing, issuance, and re- Exchange Act of 1934, as amended, in their ap- demption of Federal Reserve notes. plication to State member banks, and the provi- (o) Division of Data Processing, headed by a sions of the Act giving responsibility to the Board Director, supports the Board's organization for regulating security credit transactions; moni- through the development, operation, and maintetors the provisions of various consumer protection nance of information processing systems. Activistatutes, the Currency and Foreign Transactions ties include systems and mathematical statistical Reporting Act, and the Civil Rights Act of 1968 analysis, computer programming, equipment in their application to State member banks; pro- operation, data and production control, advanced cesses and presents to the Board applications filed planning and implementation of computer systems pursuant to the Bank Holding Company Act of and communication networks. The Division de- 1956, as amended, and the Bank Merger Act and velops, collects, and processes statistical informavarious other applications submitted under the tion on banking developments and on the condition provisions of the Federal Reserve Act or related of Federal Reserve Banks and member banks; and statutes; and advises the Board regarding develop- designs and produces graphics used in economic ments in banking and bank supervisory policies analysis and information presentation. and procedures. (p) Other personnel. The Board does not em- (k) Division of Consumer Affairs, headed by ploy administrative law judges or hearing officers a Director, implements consumer affairs legisla- as regular members of its staff; but, in accordance tion for which the Board has responsibility. Its with applicable provisions of law and in individual functions include drafting regulations and inter- cases as the need may arise, the Board obtains pretations pursuant to the Truth in Lending Act and utilizes administrative law judges and hearing (as amended), the Federal Trade Commission Im- officers, whose functions in such capacity are provements Act, the Equal Credit Opportunity Act appropriately separated, as required by law, from (as amended), and the Home Mortgage Disclosure investigative and prosecuting functions of the Act, for financial institutions and other firms en- staff. gaged in consumer credit and leasing activities. 2. Section 4 and the Appendix are revised as The division also administers these regulations as follows: well as the Fair Credit Reporting Act in their Section 4.—Field Organization application to State member banks. (/) Division of Personnel, headed by a Director, * * * The locations of the twelve Federal Reserve is responsible for the development and implemen- Banks and twenty-five branches and the boundaries tation of Board personnel policies and programs, of the Federal Reserve district and branch terriand advises and assists the Board on personnel tories are shown in the Appendix. * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1038 Federal Reserve Bulletin • December 1976 Rules of Organization and and approximately one-third at the end of each of the two succeeding calendar years. After the Procedure of the Consumer Advisory Council expiration of any member's term of office, such The Board of Governors has adopted rules to member may continue to serve until a successor govern the organization and procedures of the has been appointed by the Board. The Board shall Consumer Advisory Council. The rules concern have the authority to appoint persons to fill vacanappointment of Council members, holding meet- cies on the Council. ings, the purposes and objectives of the Council, (b) Resignation. Any member may resign at and appointment of officers of the Council. any time by giving notice to the Board. Any such Effective November 1, 1976, 12 C.F.R. Chapter resignation shall take effect upon its acceptance II is amended by adding a new Part 267 to read by the Board. as follows: (c) Compensation. Members who are not regular full-time employees of the United States shall Section 703 of the Equal Credit Opportunity be paid travel expenses, including transportation Act, as amended, provides: and subsistence, and compensation of $100 for Section 267.1—Statutory Authority each day devoted to attending and traveling to and from meetings. The Board [of Governors of the Federal Reserve System] shall establish a Consumer Advisory Section 267.4—Officers Council to advise and consult with it in the exercise of its functions under the Consumer Credit (a) Chairman. The Board shall appoint a Protection Act and to advise and consult with it Chairman and a Vice Chairman from among the concerning other consumer related matters it may members of the Council, who shall serve at the place before the Council. In appointing the mem- pleasure of the Board. The Chairman, or in the bers of the Council, the Board shall seek to achieve Chairman's absence the Vice Chairman, shall prea fair representation of the interests of creditors side at all meetings of the Council. The Board and consumers. The Council shall meet from time may appoint a Chairman pro tem who shall preside to time at the call of the Board. Members of the at a meeting of the Council in the absence of the Council who are not regular full-time employees Chairman and Vice Chairman. of the United States shall, while attending meet- (b) Secretary. The Board shall designate a ings of such Council, be entitled to receive com- member of its staff, who may but need not be pensation at a rate fixed by the Board, but not the representative described in § 267.5(c), to act exceeding $100 per day, including travel time. as Secretary of the Council. The Secretary shall Such members may be allowed travel expenses, record and maintain minutes of the meetings of including transportation and subsistence, while the Council. Minutes of each meeting shall conaway from their homes or regular place of busi- tain, among other things, a record of the persons ness. present, a description of the matters discussed, and recommendations made. The person acting as Section 267.2— Secretary at a meeting shall certify to the accuracy Purposes and Objectives of the Council of the minutes of that meeting. The Council shall advise and consult with the Section 267.5—Meetings Board in the exercise of the Board's functions under the Consumer Credit Protection Act and (a) Time. Meetings of the Council shall be held with regard to other matters the Board may place at least once each year and may be held more before the Council. frequently at the call of the Board. (b) Agenda. Each meeting of the Council shall Section 267.3—Members be conducted in accordance with an agenda for- (a) The Council shall consist of not more than mulated or approved by the Board. 30 members appointed by the Board. The term (c) Board Representation. Each meeting of the of office of each member of the Council shall be Council shall be attended by a representative of three years. However, the initial terms of the the Board who is either a member of the Board members first taking office shall expire as follows: or of the Board's staff. The Board representative approximately one-third on December 31, 1977, shall have authority to and shall adjourn any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1039 meeting of the Council when such representative (6) The Board may close to the public any considers adjournment to be in the public interest. meeting, or any portion of any meeting, of the (d) Public Nature. (1) Each meeting of the Council if it determines that such meeting or Council shall, to the extent of reasonably available portion thereof is likely to: facilities, be open to public observation unless the (i) disclose matters that relate solely to inter- Board, in accordance with § 267.5(d)(6), hereof, nal personnel rules and practices of the Council; determines that the meeting shall be closed. (ii) disclose trade secrets and commercial or (2) Notice of the time, place and purpose of financial information obtained from a person and each meeting, as well as a summary of the pro- privileged or confidential; posed agenda, shall be published in the Federal (iii) involve accusing any person of a crime, Register not more than 45 or less than 15 days or formally censuring any person; prior to the scheduled meeting date. Insofar as is (iv) disclose information of a personal nature practicable, a list of persons and organizations where disclosure would constitute a clearly uninterested in the Council shall be maintained, and warranted invasion of personal privacy; a notice of each meeting shall be mailed to such (v) disclose information contained in or repersons and organizations at least 15 days in lated to examination, operating or condition readvance of the scheduled meeting date. Shorter ports prepared by, on behalf of, or for the use notice may be given when) the Board determines of an agency responsible for the regulation or that its business so requires; in such event, the supervision of financial institutions; public, including persons and organizations de- (vi) disclose information the premature disscribed in the preceding sentence, will be given closure of which would be likely to lead to signifnotice at the earliest practicable time. icant financial speculation in currencies, securities, (3) Members of the public may file written or commodities or significantly endanger the stastatements with the Council prior to the meeting bility of any financial institution; concerning matters on the Council's agenda. The (vii) disclose information the premature disperson presiding at the Council meeting may per- closure of which would be likely to frustrate sigmit members of the public to submit written state- nificantly implementation of a proposed Board ments on such matters within a specified time after action, unless the Board has already disclosed to the Council meeting. All such submissions shall the public the content or nature of its proposed be circulated to the Council members as soon as action, or where the Board is required by law to is practicable. make such disclosure on its own initiative prior (4) Oral presentations at the Council meetings to taking final action on the proposal; or by members of the public shall not be permitted (viii) which relate to any legal proceedings, except upon invitation of the Council. However, agency adjudicatory proceeding or arbitration inif the Council and the Board determine that public volving the Board or the Council. hearings regarding a matter or matters of concern If the Board closes a meeting or any portion to the Council are warranted, members of the of a meeting, the Council will issue, at least public may make presentations at such hearings annually, a report containing a summary, consistin accordance with procedures established there- ent with 5 U.S.C. 552(b)(1970), of the Council's for. activities during such closed meetings or portions (5) Minutes of meetings, records, reports, stud- of meetings. ies, and agenda of the Council shall be available to the public for copying at the Board's offices Section 267.6—Amendments in Washington, D.C., in accordance with the provisions of 12 C.F.R. 261 (Rules Regarding Avail- These rules of organization and procedure may ability of Information). Requests for copies of such be amended or repealed at any time by action of documents should be addressed to the Secretary, the Board, provided, however, that members of Board of Governors of the Federal Reserve Sys- the Council shall be promptly notified by the Board tem, Washington, D.C., 20551. of any such action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1040 Federal Reserve Bulletin • December 1976 BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS Orders Under Section 3 200 miles southwest of Bank. There is no present of Bank Holding Company Act competition between Applicant's banking subsidiary and Bank. Although Applicant has the finan- Ancorp Bancshares, Inc., cial capability to enter the market de novo, Ten- Chattanooga, Tennessee nessee's banking laws preclude such entry at this time.3 Accordingly, based on the above and other Order Approving Acquisition of Bank facts of record, the Board has determined that Ancorp Bancshares, Inc., Chattanooga, Ten- competitive considerations are consistent with apnessee, a bank holding company within the mean- proval of the application. ing of the Bank Holding Company Act, has ap- The financial and managerial resources and fuplied for the Board's approval under § 3(a)(3) of ture prospects of Applicant, its subsidiary bank, the Act (12 U.S.C. § 1842 (a)(3)) to acquire 51 and Bank are generally satisfactory. Therefore, per cent of the voting shares of Hamilton Bank considerations relating to banking factors are conof Johnson City, Johnson City, Tennessee sistent with approval of the application. Affiliation ("Bank"). with Applicant will give Bank access to a large Notice of the application, affording opportunity staff of specialists and support personnel which for interested persons to submit comments and will enable Bank to improve and expand banking views, has been given in accordance with § 3(b) services that it has been forced to cut back due of the Act. The time for filing comments and views to the bankruptcy of its previous parent holding has expired, and the Board has considered the company, Hamilton Bancshares.4 Accordingly, application and all comments received in light of considerations relating to the convenience and the factors set forth in § 3(c) of the Act (12 U.S.C. needs of the community to be served lend weight § 1842(c)). toward approval of the application. It is the Applicant, the seventh largest banking organi- Board's judgment that the proposed acquisition is zation in Tennessee, controls one bank with de- in the public interest and that the application posits of $382.6 million, representing approxi- should be approved. mately 2.9 per cent of the total commercial bank On the basis of the record, the application is deposits in Tennessee.1 Acquisition of Bank approved for the reasons summarized above. The ($84.9 million in deposits) will increase appli- transaction shall not be made (a) before the thircant's share of deposits by only 0.7 per cent and tieth calendar day following the effective date of its ranking Statewide will remain unchanged. this Order or (b) later than three months after the Applicant is seeking to make its initial entry effective date of this Order, unless such period into the Johnson City banking market (the relevant is extended for good cause by the Board, or by market)2 through acquisition of Bank, which is the the Federal Reserve Bank of Atlanta pursuant to largest of eight banks operating in the market, delegated authority. controlling approximately 33.3 per cent of market By order of the Board of Governors, effective deposits. Also competing in this market are bank November 10, 1976. subsidiaries of the State's first and third largest multibank holding companies, which control, respectively, 16.2 and 14.7 per cent of the market's deposits. Applicant's banking subsidiary is located 3Tennessee's banking laws (Tenn. Code Ann. tit. 45, § 45-621 (Supp. 1975)) prohibit de novo entry prior to January 1, 1980, into any county having a 1970 population of 200,000 or less. Washington and Carter Counties have a combined 1970 population of approximately 116,500, and therefore Applicant *A11 banking data are as of December 31, 1975. is prohibited from entering this market de novo. 2 The Johnson City banking market is approximated by the 4Bank was a subsidiary of Hamilton Bancshares, Inc., counties of Washington and Carter. Chattanooga, Tennessee, which is now in bankruptcy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1041 Voting for this action: Chairman Burns and Gover- Bank ranks 16th in the Denver banking market nors Gardner, Wallich, Coldwell, Jackson, and Partee. (which is approximated by Adams, Arapahoe, Absent and not voting: Governor Lilly. Denver and Jefferson Counties and the city of (Signed) GRIFFITH L. GARWOOD, Broomfield) and holds 0.74 per cent of market [SEAL] Deputy Secretary of the Board. deposits.3 As Applicant has no other banking subsidiaries, and the proposal involves only the re- Bank Land Company, tention and acquisition of additional stock interests Denver, Colorado in Bank, which, at all times pertinent hereto, was controlled by Applicant, approval of the applica- Order Approving Acquisition and tion will not result in any adverse competitive Retention of Stock Interests in Bank effects. It will eliminate neither existing nor po- Bank Land Company, Denver, Colorado ("Ap- tential competition, nor increase the concentration plicant"), a bank holding company within the of banking resources in any relevant area. Thus, meaning of the Bank Holding Company Act competitive considerations are consistent with ap- ("Act"), has applied for the Board's approval proval of the application. under § 3(a)(3) of the Act (12 U.S.C. § The financial and managerial resources and fu- 1842(a)(3)) to acquire an additional 16.9 per cent ture prospects of Applicant and Bank are satisof the outstanding voting shares of Southwest State factory and it appears that Applicant will be able Bank, Denver, Colorado ("Bank"), and to retain to service the debt associated with this application 8 per cent of the outstanding voting shares of while adequately maintaining Bank's capital posi- Bank. tion. Thus, banking factors are consistent with Notice of the applications, affording opportunity approval. for interested persons to submit comments and There is no indication that the convenience and views, has been given in accordance with § 3(b) needs of the community to be served are not of the Act. The time for filing comments and views currently being met. Although there will be no has expired, and the Board has considered the immediate increase in the services offered by applications and all comments received in light of Bank, convenience and needs considerations are the factors set forth in § 3(c) of the Act (12 U.S.C. consistent with approval. Therefore, it is the § 1842(c)). Board's judgment that the retention and acquisition In June of 1972, Applicant, a one-bank holding of the shares of Bank would be in the public company by virtue of its ownership of 31 per cent interest and that the applications should be apof the outstanding voting shares of Bank, acquired proved. an additional 8 per cent of Bank's shares without On the basis of the record, the applications are the Board's prior approval.1 Applicant now seeks approved for the reasons summarized above. Acquisition of the shares of Bank shall not be made the Board's approval to retain these shares and to acquire an additional 16.9 per cent of Bank's (a) before the thirtieth calendar day following the stock. Bank ($28.4 million in deposits) is the 28th effective date of this Order or (b) later than three largest banking organization in Colorado, control- months after the effective date of this Order, unless ling 0.38 per cent of the total deposits in commer- such period is extended for good cause by the cial banks in the State.2 Board, or by the Federal Reserve Bank of Kansas City pursuant to authority hereby delegated. By order of the Board of Governors, effective November 1, 1976. xIt appears from the facts of record that the acquisition of Voting for this action: Chairman Burns and Goverthe shares of State Bank was based on a misunderstanding nors Gardner, Wallich, Coldwell, Jackson, Partee, and of the applicable statutes and regulations relating to the acqui- Lilly, sition of the voting stock of banks by bank holding companies. a A p p p p l l y ic in a g n t f or t o B ok oa rd p r a o p m p p r t o v a al c t u io p n o n to b ei c n o g m a p d ly v is w ed i t t h h at t h i e t s A ac ct t ion b s y (Signed) RICHARD D. ABRAHAMSON, constituted a violation of the Act. In accord with the Board's [SEAL] Assistant Secretary of the Board. position with respect to violations of the Act, the Board has scrutinized the underlying facts surrounding the acquisition of the shares of State Bank. Upon examination of all the facts of record, the Board is of the view that the facts surrounding the violation are not such as would call for denial of the application. 2 As of December 31, 1975. 3 As of March 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1042 Federal Reserve Bulletin • December 1976 First Commercial Banks, Inc., represented in the Middletown market. In the Albany, New York Mid-Hudson market, Bank operates two offices and is the nineteenth largest of twenty-six banking Order Approving Acquisition of Bank organizations in that market. Applicant's subsidi- First Commercial Banks, Inc., Albany, New ary, Kingston Trust Company ("Kingston"), York, a bank holding company within the meaning Kingston, New York, operates 10 offices in the of the Bank Holding Company Act, has applied Mid-Hudson market and holds market deposits of for the Board's approval under § 3(a)(3) of the $68 million, representing 7.0 per cent of the total Act (12 U.S.C. § 1842(a)(3)) to acquire 100 per deposits in commercial banks in the market.4 Apcent of the voting shares (less directors' qualifying plicant is thereby the seventh largest banking orshares) of the successor by merger to The Chester ganization in the Mid-Hudson market. However, National Bank, Chester, New York ("Bank"). Applicant's acquisition of Bank would not result The bank into which Bank is to be merged has in a significant increase in Applicant's share of no significance except as a means to facilitate the the total market deposits and, in view of the facts acquisition of the voting shares of Bank. Accord- of record which indicate that neither Bank nor ingly, the proposed acquisition of shares of the Kingston derives a significant amount of business successor organization is treated herein as the from the other's service area, would not result in proposed acquisition of the shares of Bank. the elimination of a significant amount of existing competition. Notice of the application, affording opportunity for interested persons to submit comments and In assessing the effects of the proposal on poviews, has been given in accordance with § 3(b) tential competition, the Board is of the opinion of the Act. The time for filing views and comments that there are only slightly adverse competitive has expired, and the Board has considered the effects. While Applicant could enter the Middleapplication and all comments received in light of town market de novo and could expand de novo the factors set forth in § 3(c) of the Act (12 U.S.C. within the Mid-Hudson market, neither the Mid- § 1842(c)). Hudson nor the Middletown banking market is highly concentrated, with the former having Applicant, the twelfth largest banking organitwenty-four other banking organizations and the zation in New York State, controls five banks with latter sixteen other banking organizations. In adaggregate deposits of approximately $1.4 billion, dition, 13 independent banks in the Mid-Hudson representing 1.07 per cent of the total deposits in commercial banks in the State.1 Applicant's ac- market and 8 such banks in the Middletown market would remain as possible entry vehicles for other quisition of Bank would not increase significantly banking organizations. While it is the Board's Applicant's share of commercial bank deposits in view that consummation of the proposed acquisi- New York State and would not affect its rank tion would result in some adverse effects on comamong the State's banking organizations. petition in the relevant banking markets, the Board Bank (deposits of $47 million) operates ten does not regard them as significant and believes banking offices in two contiguous banking markets, the Middletown banking market2 and the that they must be examined in light of the finan- Mid-Hudson banking market,3 which are the rele- cial, managerial, and convenience and needs considerations discussed below. vant geographic markets for purposes of analyzing the competitive effects of the proposed acquisition. The financial condition and managerial re- Bank has eight offices with 6.9 per cent of the sources of Applicant and its subsidiaries are contotal deposits in commercial banks in the Middle - sidered satisfactory and their future prospects aptown market and is the fourth largest of 17 banks pear favorable. The financial and managerial reoperating in that market. Applicant currently is not sources and future prospects of Bank are not entirely satisfactory at the present time but are expected to show marked improvement as a result of Bank's affiliation with Applicant. Applicant has committed that, upon consummation of the acqui- 1Unless otherwise indicated, banking data are as of De- sition, it would make a contribution of funds to cember 31, 1975. 2The Middletown banking market is approximated by Sullivan County and all of Orange County except the Newburgh area. 3The Mid-Hudson market is approximated by Dutchess and Ulster counties and the Newburgh area of Orange County. 4As of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1043 increase Bank's capital position and would provide the voting shares, less directors' qualifying shares, additional experienced personnel to augment of the successor by merger to Alamo Heights Bank's management. The Board regards these National Bank, San Antonio, Texas ("Bank"). commitments as significant and believes that the The bank into which Bank is to be merged has financial and managerial factors lend weight no significance except as a means to facilitate the toward approval of the application. acquisition of the voting shares of Bank. Accord- Affiliation with Applicant would enable Bank ingly, the proposed acquisition of shares of the to draw upon Applicant's resources and expertise successor organization is treated herein as the and thereby offer expanded services to Bank's proposed acquisition of the shares of Bank. customers. Applicant states that, following con- Notice of the application, affording opportunity summation of the acquisition, Bank would make for interested persons to submit comments and available to its customers new services, including views, has been given in accordance with Section trust services, international services, and point-of- 3(b) of the Act. The time for filing comments and sale electronic terminals. It is expected that ena- views has expired, and the application and all bling Bank's customers to obtain these services comments received have been considered in light through Bank would result in Bank becoming a of the factors set forth in Section 3(c) of the Act more attractive banking alternative and a stronger (12 U.S.C. § 1842(c)): competitor in the relevant banking market. Con- Applicant, the largest banking organization in siderations relating to the convenience and needs Texas in terms of assets, controls 23 banks with of the community to be served lend some weight aggregate deposits of approximately $3.6 billion, toward approval of the application and, considered representing approximately 7.61 per cent of total together with the financial and managerial factors commercial bank deposits in Texas.1 Acquisition discussed above, outweigh any adverse competi- of Bank (approximately $28.2 million in deposits) tive effects that might result from consummation would increase Applicant's share of Statewide of the proposal. commercial bank deposits by less than 0.1 of one On the basis of the record, the application is per cent and would have no appreciable effect upon approved for the reasons summarized above. The the concentration of banking resources in this transaction should not be made (a) before the State. thirtieth calendar day following the effective date Bank is the 19th largest of 52 banks and savings of this Order, or (b) later than three months after associations in the San Antonio banking market, the effective date of this Order, unless such period which is the relevant banking market,2 and conis extended for good cause by the Board or by trols approximately 1.0 per cent of the total dethe Federal Reserve Bank of New York pursuant posits in commercial banks in the market. Applito delegated authority. cant is the ninth largest organization in the San By order of the Board of Governors, effective Antonio banking market, controlling one banking November 19, 1976. subsidiary with total deposits of $81.7 million or approximately 3 per cent of market deposits. Ap- Voting for this action: Vice Chairman Gardner and proval of the application would leave Applicant's Governors Cold well, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns and Governor Wallich. relative market position well below that of the three largest banking organizations in the market, (Signed) GRIFFITH L. GARWOOD, which control 49.7 per cent of total deposits in [SEAL] Deputy Secretary of the Board. the market. Accordingly, consummation of the proposal would not substantially affect the struc- First International Bancshares, Inc., ture of banking within the market. Dallas, Texas It appears from the record that the proposal would not have significant adverse effects on ex- Order Approving Acquisition of Bank First International Bancshares, Inc., Dallas, Texas, a bank holding company within the mean- XA11 banking data are as of December 31, 1975, and reflect ing of the Bank Holding Company Act, has apbank holding company formations and acquisitions through plied for the Board's approval, under Section November 1, 1976. 3(a)(3) of the Bank Holding Company Act (12 2The relevant banking market is approximated by the San Antonio SMSA located in South Central Texas and includes U.S.C. § 1842(a)(3)), to acquire 100 per cent of Bexar, Comal and Guadalupe counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1044 Federal Reserve Bulletin • December 1976 isting or potential competition. Applicant's cur- pursuant to delegated authority from the Board of rently existing subsidiary bank in the San Antonio Governors, effective November 24, 1976. market, Main Bank and Trust Company ("Main Bank"), is located in the central business district (Signed) GRIFFITH L. GARWOOD, of San Antonio, less than four miles southwest [SEAL] Deputy Secretary of the Board. of Bank. However, the presence of physical bar- Hawkeye B ancorporation, riers in the form of one 8-lane highway, the San Antonio River, and two large parks along the river, Des Moines, Iowa as well as the distance and the difference in the Order Approving Acquisition of Bank service orientation between Bank and Main Bank, lessen direct competition and reduce the proba- Hawkeye Bancorporation, Des Moines, Iowa, bility of development of significant competition a bank holding company within the meaning of between the two. The market would remain the Bank Holding Company Act, has applied for slightly attractive to de novo entry after acquisition the Board's approval under § 3(a)(3) of the Act of Bank, and numerous banks would remain in (12 U.S.C. § 1842(a)(3)) to acquire 80 per cent the market as potential entry points for expanding or more of the voting shares of The Centerville bank holding companies. Accordingly, on the National Bank, Centerville, Iowa ("Bank"). basis of the record, it is concluded that consum- Notice of the application, affording opportunity mation of the proposed transaction would not have for interested persons to submit comments and any significant adverse effects on existing or po- views, has been given in accordance with § 3(b) tential competition on a Statewide basis and only of the Act. The time for filing comments and views slightly adverse effect on competition in the San has expired, and the Board has considered the Antonio banking market. application and all comments received in light of The financial conditions, managerial resources, the factors set forth in § 3(c) of the Act (12 U.S.C. and future prospects of Bank, Applicant, and its § 1842(c)). subsidiaries are regarded as satisfactory and con- Applicant, the third largest banking organization sistent with approval, particularly in light of in Iowa, controls 14 banks with aggregate deposits Bank's retention of $125,000 of interim capital. of approximately $429 million,1 representing 3.6 Applicant will provide Bank with the capabilities per cent of the total deposits in commercial banks of offering improved retail banking services and in the State. Acquisition of Bank by Applicant adding trust services and provisions for credit life would increase Applicant's share of State deposits and credit accident and health insurance for Bank's by 0.25 per cent and would not alter Applicant's borrowing customers at rates substantially below ranking among State banking organizations. Apthe maximum rate permitted by State regulatory proval of the subject application would not result authority. Thus, considerations relating to the in a significant increase in the concentration of convenience and needs of the community to be banking resources in Iowa. served lend weight toward approval of the appli- Bank hold deposits of approximately $30 milcation and are sufficient to outweigh the only lion, representing 43.9 per cent of the total deposslightly adverse competitive effects that might re- its in commercial banks in the Appanoose County sult from consummation of the proposal. It has banking market,2 and ranks as the smaller of two therefore been determined that the proposed ac- banks headquartered in the market.3 Applicant's quisition would be in the public interest and that banking subsidiary closest to Bank, Pella National the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The Unless otherwise authorized, all banking data are as of Detransaction shall not be made (a) before the thir- cember 31, 1975. tieth calendar day following the effective date of 2The Appanoose County banking market, the relevant geographic market for purposes of analyzing the competitive efthis Order or (b) later than three months after the fects of the subject proposal, is approximated by Appanoose effective date of this Order, unless such period County, Iowa. is extended for good cause by the Board or by :iMarket data are as of June 30, 1975, and include the deposits of a branch office of Davis County Savings Bank, the Federal Reserve Bank of Dallas pursuant to Bloomfield, Iowa. Davis County Savings Bank is headquardelegated authority. tered outside of the relevant market, but operates one branch office in Moulton, Iowa, which is located on the eastern edge By order of the Secretary of the Board, acting of the relevant market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1045 Bank, Pella, Iowa ("Pella Bank"), is located 64 upon the use of the ESOP since it appears that, road miles away in a separate and noncontiguous by using either of the proposed financing plans, market. It appears that neither institution derives Applicant would have the financial flexibility to any appreciable deposits or loans from the market meet its debt servicing requirements as well as area of the other. It further appears that no mean- unexpected problems that might arise at its subingful competition presently exists between any of sidiaries. On the basis of the foregoing, the Board Applicant's subsidiary banks and Bank. Pella concludes that the banking factors are consistent Bank and Bank could each establish branch offices with approval of the application. in Monroe and Lucas Counties, both of which are Applicant proposes to make certain improvelocated between the respective present locations ments in Bank's consumer loan and trust services, of Pella Bank and Bank. However, such action as well as to assist Bank with its mortgage and does not appear likely by either bank in the fore- investment services. Accordingly, considerations seeable future due to their relatively small size, relating to the convenience and needs of the comthe presence of other established banks in those munity to be served lend some weight toward two counties and the relative unattractiveness for approval of the application. It is the Board's judgbranch offices in those areas. Moreover, due to ment that the proposed acquisition would be in the population per banking office ratio of the the public interest and' that the application should relevant market, it does not appear likely that be approved. Applicant would enter that market de novo. On the basis of the record, the application is Therefore, the Board concludes that consumma- approved for the reasons summarized above. The tion of the proposal would not have a significant transaction shall not be made (a) before the thiradverse effect on existing or potential competition tieth calendar day following the effective date of in any relevant area, and that competitive consid- this Order or (b) later than three months after the erations are consistent with approval of the appli- effective date of this Order, unless such period cation. is extended for good cause by the Board or by Under § 3(c) of the Act, the Board is required the Federal Reserve Bank of Chicago pursuant to to consider the financial and managerial resources delegated authority. of the bank holding company involved and the By order of the Board of Governors, effective bank to be acquired. With respect to this require- November 24, 1976. ment, the financial and managerial resources of Applicant, its subsidiaries and Bank are considered to be generally satisfactory and the future pros- Voting for this action: Chairman Burns and Goverpects for each appear favorable. As part of the nors Gardner, Wallich, Coldwell, Jackson, Partee, and subject transaction, Applicant would incur addi- Lilly. tional debt in order to finance the cash purchase of Bank's shares. Applicant has proposed two plans with which to finance its acquisition of Bank. (Signed) GRIFFITH L. GARWOOD, In one plan, Applicant would repay the acquisition [SEAL] Deputy Secretary of the Board. debt over a ten-year period primarily with dividends from its subsidiary banks. In the alternative plan, Applicant would utilize the Hawkeye Bancorporation Employees Stock Ownership Plan ("ESOP"), which has already purchased newly 4Applicant has received a determination from the Internal Revenue Service that its ESOP presently qualifies for certain issued shares of Applicant and will purchase addi- Federal tax benefits that are available through the use of an tional such shares in the future, to facilitate the employee benefit plan meeting specific conditions and requirerepayment of Applicant's acquisition debt.4 How- ments under the Internal Revenue Code and regulations pursuant thereto. The question of "qualification" for ESOP tax ever, Applicant's ability to service the debt to be benefits, however, is a continuing one. Should Applicant's incurred as part of this transaction is not dependent ESOP fail to meet such requirements in the future, the applicable tax benefits may not be available at that time. In this regard, the Board notes that the IRS has proposed new regulations relating to the qualification of ESOPs under the Code (41 Federal Register 31828 and 41 Federal Register 46017). These new regulations are, in some circumstances, at variance with Applicant's ESOP as it now exists. If the proposed changes become final, Applicant would have to adapt its ESOP to those new requirements in order to continue to qual- 4See opposite column for footnote. ify for such tax benefits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1046 Federal Reserve Bulletin • December 1976 Mercantile Texas Corporation, Bank"), with deposits of approximately $939 Dallas, Texas million, representing 2 per cent of the total commercial bank deposits in Texas, and is the eighth Order Approving largest banking organization in the State.2 Fed- Merger of Bank Holding Companies erated controls six banks with aggregate deposits and Acquisition of Nonbanking Company of approximately $1.03 billion, representing 2.2 per cent of total deposits in commercial banks in Mercantile Texas Corporation, Dallas, Texas the State and is the seventh largest banking orga- ("Mercantile"), a bank holding company within nization in Texas. Upon consummation of the the meaning of the Bank Holding Company Act, proposed merger, Mercantile would become the has applied for the Board's approval under § State's fifth largest banking organization consist- 3(a)(5) of the Act (12 U.S.C. 1842 (a)(5)) to ing of seven banking subsidiaries (in five major merge with Federated Capital Corporation, Housbanking markets) with aggregate deposits of ton, Texas ("Federated"), under the charter and $1.97 billion, representing 4.2 per cent of the title of Mercantile. Immediately subsequent to the total commercial bank deposits in Texas. Howmerger, Mercantile would assume all assets and ever, Mercantile's rank would be a distant fifth liabilities of Federated whereupon Federated behind the four largest banking organizations in would cease to exist as a legal entity. the State, each with more than $3 billion in total In a concurrent application, Mercantile has also deposits.3 Approval of the subject merger would applied for the Board's approval, under § 4(c)(8) add only slightly to the share of total deposits of the Act (12 U.S.C. 1843(c)(8)) and .§ held by the five largest Texas banking organi- 225.4(b)(2) of the Board's Regulation Y, to aczations. Consequently, the Board finds that this quire shares of Financial Protection Insurance proposal would not have significant adverse ef- Company of Texas, Houston, Texas ("FPIC"), fects upon the concentration of banking resources and thereby engage in the activity of underwritin Texas. ing, as a direct insurer and reinsurer, credit life and credit accident and health insurance directly Mercantile and Federated do not compete direlated to extensions of credit by Federated's ex- rectly in any local banking market in the State. isting subsidiary banks. Mercantile's acquisition Mercantile's sole subsidiary bank, Mercantile of FPIC, which is currently a wholly-owned non- Bank, is the third largest banking organization in banking subsidiary of Federated, would be ac- the Dallas banking market4 and controls 10.2 per complished as a result of the proposed merger of cent of total market deposits. Federated with and into Mercantile. Such insur- By comparison, Federated's six subsidiary ance underwriting activity has been determined by banks operate in four separate banking markets the Board to be closely related to banking (12 and are located considerable distances from Mer- CFR § 225.4 (a)(10)). cantile Bank; the closest Federated bank is over Notice of the receipt of these applications, af- 200 miles away. In the Houston banking market,5 fording opportunity for interested persons to submit comments and views, has been given in accordance with §§3 and 4 of the Act (41 Federal Register 28359 and 33336). The time for filing 2All banking data, unless otherwise indicated, are as of Decomments and views has expired, and the Board cember 31, 1975 and reflect bank holding company formations and acquisitions approved as of September 30, 1976. has considered the applications and all comments 3As of July 1976, the largest banking organization, First received, including those of the Comptroller of International Bancshares, Inc., Dallas, had 23 banking subsidthe Currency,1 in light of the factors set forth in iaries in 12 major banking markets with $3.6 billion in depos- § 3(c) of the Act (12 U.S.C. 1842(c)) and the its; the second largest banking organization, First City Bancorporation of Texas, Inc., Houston, had 24 banking subsidiconsiderations specified in § 4(c)(8) of the Act. aries in 7 major banking markets with $3.4 billion in deposits; Mercantile controls one bank, Mercantile Na- the third largest banking organization, Texas Commerce Bancshares, Inc., Houston, had 31 banking subsidiaries in 10 tional Bank at Dallas, Dallas, Texas ("Mercantile major banking markets with $3.3 billion in deposits; and the fourth largest banking organization, Republic of Texas Corporation, Dallas, had 8 banking subsidiaries in 2 major banking markets with $3 billion in deposits. 4The Dallas banking market is approximated by the Dallas RMA. 5The Houston banking market is approximated by the Hous- *By letter dated August 31, 1976 to the Board, the Comp- ton RMA, which is comprised of Harris County and portions troller recommended approval of the merger application. of five adjacent counties. 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Law Department 1047 Federated, through two subsidiary banks, Capital effects on potential competition would result from National Bank, Houston (deposits of $310 mil- the proposed merger. Based upon that examinalion) and West Loop National Bank, Houston (de- tion, the Board concludes that in no market would posits of $9 million), is the seventh largest bank- the anticompetitive effects with respect to potening organization in the market and holds 2.8 per tial competition be sufficient to warrant denial of cent of total deposits therein. In the San Antonio the instant merger application. banking market,6 Federated ranks as the third On the basis of the foregoing and other facts largest banking organization through two subsidi- of record, the Board concludes that consummaary banks, The Alamo National Bank, San An- tion of the subject proposal would not have any tonio (deposits of $268 million) and The Guaranty adverse effects on existing competition nor would State Bank of New Braunfels, New Braunfels (de- it foreclose the development of significant potenposits of $21.4 million), and controls 10.6 per tial competition in any relevant area. Although cent of total market deposits. In the Austin bank- the Board believes that the proposal may have ing market,7 Federated, with one subsidiary bank, some slight adverse effects on potential competi- The American National Bank of Austin, Austin tion, those effects when viewed in light of the (deposits of $186 million), is the fourth largest other considerations reflected in the record are not banking organization in the market, holding 12 serious enough to require denial of the subject per cent of total market deposits. Finally, in the proposal. Therefore, the Board considers com- Corpus Christi banking market,8 Federated's sub- petitive considerations to be consistent with sidiary bank, Corpus Christi National Bank, approval of the subject merger. Corpus Christi (deposits of $240 million), is the The financial and managerial resources and fulargest banking organization and controls 28 per ture prospects of Mercantile and Mercantile Bank cent of total deposits in the market. Based upon are satisfactory and consistent with approval of the fact that Mercantile Bank and the six Fed- the proposed merger. Federated and its subsidiary erated banks do not compete in any of the same banks have been experiencing some financial and banking markets, the Board concludes that con- managerial problems.9 As a consequence, the summation of the proposed merger would not Board believes that Federated is not presently a eliminate any existing competition nor increase source of financial strength to its banking subsidideposit concentration in any relevant area. aries and it appears that Federated's management With respect to potential competition, it ap- has been unable to effect significant improvements pears from the record that consummation of the in the condition of the holding company system. proposed merger would have, overall, only slight In the Board's view, approval of the proposed adverse effects on potential competition in the merger of Federated with Mercantile would lead aforementioned banking markets. As discussed to needed corrective action since Mercantile posbelow, Federated, on its own, does not appear to sesses the financial resources and flexibility to act be in a position to pursue an expansionary policy, as a source of financial strength to its proposed and thus may not be considered to be a likely en- subsidiary banks. Furthermore, Mercantile's mantrant into the Dallas or any other banking market agement would be able to provide the managerial in the foreseeable future. Mercantile, on the other leadership and support necessary to correct Fedhand, does have the financial and managerial re- erated's existing problems. In view of the above, sources to enter into the markets currently served the Board has determined that financial and manaby the Federated banks. With this fact in mind, gerial considerations lend substantial weight the Board has carefully examined the banking toward approval of the merger application. structure of each of those banking markets in Considerations relating to convenience and order to determine whether any significant adverse needs also lend weight toward approval of the merger application. Upon consummation of the transaction, Mercantile would provide both finan- 6The San Antonio banking market is approximated by the San Antonio SMS A, which is comprised of Bexar, Comal and Guadalupe Counties. 7The Austin banking market is approximated by the Austin SMS A, which is comprised of Hays and Travis Counties. 8The Corpus Christi banking market is approximated by the 9See Board Order denying application by Federated to ac- Corpus Christi SMS A, which is comprised of Nueces and San quire South Park National Bank, San Antonio, Texas, a pro- Patricio Counties. posed new bank (62 Federal Reserve BULLETIN 262 (1976)). 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1048 Federal Reserve Bulletin • December 1976 cial and managerial strength to the six Federated "To assure that engaging in the underwriting subsidiary banks, thereby enabling them to be- of credit life and credit accident and health insurcome more effective competitors in their respec- ance can reasonably be expected to be in the pubtive markets and to offer new and improved ser- lic interest, the Board will only approve applicavices to their customers. These factors lend addi- tions in which an applicant demonstrates that aptional weight toward approval of this application proval will benefit the consumer or result in other and clearly outweigh any adverse competitive ef- public benefits. Normally, such a showing would fects of the merger.10 Based upon the foregoing, be made by a projected reduction in rates or init is the Board's judgment that the proposed crease in policy benefits due to bank holding commerger application is in the public interest and pany performance of this service. (12 CFR § that it should be approved. 225.4(a)(10))." As indicated above, Mercantile's acquisition of Mercantile has stated that following consum- FPIC would be accomplished as a result of the mation of the merger, FPIC would continue to proposed merger of Federated with and into Mer- provide the same premium reductions for several cantile. FPIC is currently engaged in underwrit- types of credit insurance policies that were speciing, as a direct insurer and reinsurer, credit life fied by the Board in its Order of February 11, and credit accident and health insurance directly 1976. For example, FPIC would continue to offer related to extensions of credit by five of Fe- decreasing term single and joint credit life insurderated's subsidiary banks.11 From the date it ance at a premium rate 3.4 per cent below the commenced operations on May 1, 1976 to June Texas maximum and level term single and joint 20, 1976, FPIC generated approximately $55,000 credit life insurance (on single payment loans) at of net written premiums from the sale of credit a premium rate 3.7 per cent below the statutory life and disability insurance. Upon consummation maximum. Furthermore, FPIC would offer credit of the subject merger, FPIC will underwrite accident and health insurance (single debtor) at credit-related insurance for all of Federated's sub- premium rates 4.7 per cent below the maximum sidiary banks; FPIC will not perform these insur- allowable rates and credit accident and health inance services in connection with extensions of surance (joint debtor) at premium rates 5 per cent credit by Mercantile Bank because such insurance below the State maximum. The Board is of the is currently underwritten by an unaffiliated insur- view that Mercantile's proposed reductions in inance company. In view of the above, including surance premiums are procompetitive and in the the fact that FPIC recently commenced operations public interest. as a nonbanking subsidiary of Federated, the Based upon the foregoing and other consid- Board concludes that consummation of the trans- erations reflected in the record, including a comaction would not have any significant adverse ef- mitment by Mercantile, with respect to its profects on existing or potential competition in any posed underwriting activities, to maintain on a relevant market. continuing basis the public benefits that the Board Credit life and credit accident and health insur- has found to be reasonably expected to result ance is generally made available by banks and from this proposal and upon which the approval other lenders and is designed to assure repayment of that aspect of this proposal is based, the Board of a loan in the event of death or disability of has determined that the balance of the public inthe borrower. In connection with its addition of terest factors the Board is required to consider the underwriting of such insurance to the list of under § 4(c)(8) is favorable. Accordingly, the appermissible activities for bank holding companies, plication to acquire FPIC should be approved. the Board stated: On the basis of all facts of record, the applications to merge Federated with and into Mercantile and to acquire FPIC are approved for the reasons 10The Board has considered whether the financial and mana- summarized above. The subject merger shall not gerial problems of Federated may be resolved by means even be made before the thirtieth calendar day followless anticompetitive than the proposed merger and has concluded that such means are unavailable. ing the effective date of this Order; and neither nBy Order dated February 11, 1976, the Board approved the subject merger nor the acquisition of FPIC an application by Federated to acquire FPIC and to engage shall be made later than three months after the de novo in the activities of underwriting and reinsuring credit life and credit accident and health insurance directly related effective date of this Order, unless such period to extensions of credit by Federated's lending subsidiaries (62 is extended for good cause by the Board or by Federal Reserve BULLETIN 272). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1049 the Federal Reserve Bank of Dallas pursuant to pired, and the Board has considered the applicadelegated authority. The determination as to Mer- tion and all comments received in light of the cantile 's acquisition of FPIC is subject to the con- public interest factors set forth in Section 4(c)(8) ditions set forth in § 225.4(c) of Regulation Y of the Act (12 U.S.C. § 1843(c)(8)). and to the Board's authority to require such modi- Applicant, the 11th largest banking organification or termination of the activities of a hold- zation in Pennsylvania, controls one bank (Naing company or any of its subsidiaries as the tional Central Bank, Lancaster, Pennsylvania) Board finds necessary to assure compliance with with deposits of $865.1 million, representing apthe provisions and purposes of the Act and the proximately 1.9 per cent of the total deposits in Board's regulations and orders issued thereunder, commercial banks in the State.1 Through its bankor to prevent evasion thereof. ing subsidiary, Applicant engages in residential By order of the Board of Governors, effective mortgage lending as a part of its commercial November 16, 1976. banking business and, through nonbank subsidiaries, Applicant also engages in commercial fi- Voting for this action: Chairman Burns and Governance, mortgage banking activities, and the sellnors Gardner, Wallich, Coldwell, Partee, and Lilly. ing and underwriting of credit related insurance. Absent and not voting: Governor Jackson. Company (total assets of $2.3 million) engages (Signed) L. GRIFFITH GARWOOD, in the general business of mortgage banking, in- [SEAL] Deputy Secretary of the Board. cluding originating, purchasing, selling, and servicing mortgage loans. Company (which currently operates two offices in Dayton) derives its mortgage servicing portfolio principally from Mont- National Central Financial Corporation, gomery County, Ohio, which is located in the Lancaster, Pennsylvania Cincinnati Regional Market.2 During the period from 1971 to 1975, Company averaged approxi- Order Approving mately $5.7 million in FHA and VA loan origina- Acquisition of Land Mortgages, Inc. tions per year, and $50.2 million in volume of mortgages serviced per year. As of December 31, National Central Financial Corporation, Lan- 1975, Company's mortgage servicing portfolio caster, Pennsylvania, a bank holding company was $50 million.3 Hartzler (total assets of $5.4 within the meaning of the Bank Holding Commillion) was acquired by Applicant in 1974,4 and pany Act, has applied for the Board's approval, maintains its headquarters in Columbus, Ohio, under Section 4(c)(8) of the Act (12 U.S.C. § and a branch in Mansfield, Ohio. Hartzler's mort- 1843(c)(8)) and section 225.4(b)(2) of the gage banking activities are mainly confined to the Board's Regulation Y (12 CFR § 225.4(b)(2)), to origination, sale and servicing of FHA and VA acquire, through its wholly-owned subsidiary single family residential mortgages. As of De- Hartzler Mortgage Company, Columbus, Ohio cember 31, 1975, Hartzler's total mortgage ser- ("Hartzler"), all of the mortgage servicing portvicing was $121 million, and Hartzler ranked folio of Land Mortgages, Inc., Dayton, Ohio 242nd of the 300 largest mortgage banking com- ("Company"), and to engage de novo, through panies in the United States.5 Upon consummation Hartzler, in the activities of a mortgage banking of this proposal, Hartzler would rank as the 170th company, in Dayton, Ohio, by converting an office of Company to a branch of Hartzler. From the branch office in Dayton, Applicant also proposes to engage in the activity of selling credit life, accident and health insurance that is directly *A11 banking data are as of December 31, 1975, unless othrelated to extensions of credit by Hartzler. Each erwise indicated. of the aforementioned activities has been deter- 2That market corresponds approximately to the Cincinnati Major Trading Area, as defined by Rand McNally, and inmined by the Board to be closely related to bankcludes the southwestern corner of Ohio, the southeastern tip ing (12 CFR § 225.4(a)(1), (3), and (9)). of Indiana, and the northernmost tip of Kentucky. Notice of the application, affording opportunity ''Company's servicing portfolio consists almost entirely of FHA and VA guaranteed loans. for interested persons to submit comments and 4Applicant received Board approval, pursuant to Section views on the public interest factors, has been duly 4(c)(8) of the Act, to acquire Hartzler on June 5, 1974. (39 published (41 Federal Register 32974 (1976)). Federal Register 20729 (1974); 60 Federal Reserve BULLETIN 524 (1974)). The time for filing comments and views has ex- 5American Banker, June 30, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1050 Federal Reserve Bulletin • December 1976 largest mortgage banking company in the United that consummation of the proposed transaction States. would result in any concentration of resources, Applicant, through Hartzler, is considered to unfair competition, conflicts of interests, unsound operate in a nationwide market for mortgage ser- banking practices, or other adverse effects upon vicing business, while Company has limited its the public interest. business primarily to the Cincinnati Regional Based upon the foregoing and other consid- Market. Despite Applicant's nationwide range in erations reflected in the record, the Board has demortgage servicing business, it has not operated termined that the balance of the public interest to any significant extent in the area served by factors the Board is required to consider under Company. Therefore, it does not appear that any Section 4(c)(8) is favorable. Accordingly, the apsignificant existing competition would be elimi- plication is hereby approved. This determination nated as a result of the consummation of this pro- is subject to the conditions set forth in section posal. 225.4(c) of Regulation Y and to the Board's au- Consummation of this proposal would elimi- thority to require such modification or termination nate the possibility of competition developing be- of the activities of a holding company or any of tween Hartzler and Company in the future. How- its subsidiaries as the Board finds necessary to asever, such adverse competitive effects are miti- sure compliance with the provisions and purposes gated by the large number of competitors in the of the Act and the Board's regulations and orders relevant market, which includes several mortgage issued thereunder, or to prevent evasion thereof. banking companies, savings and loan associations The transaction shall be made not later than and commercial banking organizations. In addi- three months after the effective date of this Order, tion, Company has recently scaled down its unless such period is extended for good cause by operations and, absent approval of this proposal, the Board or by the Federal Reserve Bank of Philwould not be likely to become a nationwide com- adelphia. petitor in the field of mortgage servicing. Accord- By order of the Board of Governors, effective ingly, the Board concludes that consummation of November 8, 1976. this proposal would not have significant adverse Voting for this action: Chairman Burns and Govereffects upon future competition. On the contrary, nors Gardner, Wallich, Jackson, Partee, and Lilly. Ab- Applicant's acquisition of Company's mortgage sent and not voting: Governor Coldwell. service portfolio and conversion of one office6 of Company into a branch of Hartzler may enhance (Signed) GRIFFITH L. GARWOOD, competition in the relevant market by increasing [SEAL] Deputy Secretary of the Board. the efficiency and financial resources available to that branch. Applicant has also proposed, in connection with this application, that Hartzler's Peoples Credit Co., branch office in the relevant market sell credit- Kansas City, Missouri related insurance on the loans that it will originate therein. Due to the limited nature and scope of Order Approving Acquisition this permissible insurance activity, and the fact of Additional Shares of Banks that it will be engaged in on a de novo basis in Peoples Credit Co., Kansas City, Missouri, a a new market, it does not appear that there would bank holding company within the meaning of the be any significant adverse effect upon either exist- Bank Holding Company Act, has applied for the ing or potential competition as a result of Appli- Board's approval under § 3(a)(3) of the Act (12 cant's consummation of this transaction. It is the U.S.C. § 1842(a)(3)) to acquire an additional 25.4 Board's judgment that the benefits that can reaper cent of the voting shares of The Metropolitan sonably be expected to result from this proposal Bank, Kansas City, Missouri ("Metropolitan lend some weight toward approval of the applica- Bank"), and an additional 5.4 per cent of the tion. voting shares of The Pleasant Hill Bank, Pleasant There is no evidence in the record indicating Hill, Missouri ("Pleasant Hill Bank"). Applicant presently owns 24.9 per cent of Metropolitan Bank and 44.6 per cent Pleasant Hill Bank, and would, upon consummation, own 50.41 per cent of the former and 50.03 per cent of the latter. 6Applicant plans to vacate the other office of Company in the market. Notice of the applications, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1051 for interested persons to submit comments and Applicant's present share of that market from .3 views, has been given in accordance § 3(b) of the to .6 per cent, raising its rank from the 66th to Act. The time for filing comments and views had the 30th largest banking organization in the releexpired, and the Board has considered the appli- vant market. cations and all comments received including those Although Metropolitan Bank and Pleasant Hill of the Deputy Commissioner of the Department Bank both operate within the relevant market, the of Consumer Affairs, Regulation and Licensing, degree of competition existing between the two Division of Finances of the State of Missouri, in banks is minimal. The two banks have been affillight of the factors set forth in § 3(c) of the Act iated through common ownership since 1967. (12 U.S.C. § 1842(c)). Moreover, the banks are located 25 miles apart, Applicant controls two banks1 with total depos- and the service areas of the two do not appear its of $20.7 million, representing approximately to overlap. Due to restrictive branching laws in .1 per cent of the total deposits in commercial Missouri, the possibility of competition developbanks in Missouri.2 In addition, Applicant has ing in the future between the banks would be interests in two Missouri banks, Metropolitan remote. Accordingly, based upon the above and Bank and Citizens Bank of Norborne, Norborne, other facts of record, the Board has determined Missouri. Acquisition of the additional shares of that competitive considerations are consistent with Metropolitan Bank ($15.7 million in deposits) will approval of the application. give Applicant control of that bank, increasing The financial and managerial resources and fu- Applicant's share of Statewide deposits to approx- ture prospects of Applicant, its subsidiary banks, imately .2 per cent. Acquisition of additional and Metropolitan Bank are generally satisfactory. shares of Applicant's subsidiary, Pleasant Hill Therefore, considerations relating to banking fac- Bank (deposits of $14.8 million), will have no tors are consistent with approval of the applicaeffect upon Applicant's total Statewide deposits. tions. Although no immediate changes in bank Applicant currently owns 44.6 per cent of the services or facilities are expected to derive from outstanding shares of Pleasant Hill Bank. Acqui- consummation of the acquisitions, it does not sition of additional shares in Pleasant Hill Bank, appear that the needs of the community are not presently controlled by Applicant, would eliminate currently being met. Accordingly, considerations neither existing nor potential competition, nor in- relating to the convenience and needs of the comcrease the concentration of banking resources in munity to be served are consistent with approval the Kansas City banking market.3 Applicant's of the applications. It is the Board's judgment that proposal to acquire an additional 25.4 per cent of the proposed acquisition is in the public interest Metropolitan Bank's shares would result in control and that the applications should be approved. by Applicant of Metropolitan Bank.4 Acquisition On the basis of the record, the applications are of control of Metropolitan Bank, also located in approved for the reasons summarized above. The the Kansas City banking market, would increase transactions shall not be made (a) before the thirtieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by lrThe Pleasant Hill Bank, Pleasant Hill, Missouri, and the Lathrop Bank, Lathrop, Missouri. the Federal Reserve Bank of Kansas City pursuant 2All banking data are as of December 31, 1975, and have to delegated authority. been adjusted to reflect approvals of holding company applica- By order of the Board of Governors, effective tions by the Board to date. 3The relevant market is the Kansas City banking market, November 23, 1976. approximated by Johnson and Wyandotte Counties in Kansas, and Clay, Jackson, and Platte Counties and the northern part of Cass County in Missouri. 4Applicant registered as a bank holding company in 1971 at the request of the Federal Reserve Bank of Kansas City, Voting for this action: Vice Chairman Gardner, and apparently on the premise that the Company controlled Metro- Governors Coldwell, Jackson, Partee, and Lilly. Absent politan Bank by virtue of the fact that it owned 24.9 per cent and not voting: Chairman Burns and Governor Wallich. of Metropolitan Bank's shares and officers and employees of Company owned additional shares. Although a rebuttable presumption that Company controlled Metropolitan Bank existed under § 225.2(b) of the Board's Regulation Y (12 CFR 225), the Board had made no formal determination that Applicant (Signed) GRIFFITH L. GARWOOD, controlled that bank. [SEAL] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1052 Federal Reserve Bulletin • December 1976 Orders Under Section 4 in 1972) to a corporation owned by the same of Bank Holding Company Act individual. Upon acquisition of Bank, Applicant would control the 275th largest bank in Kansas, holding .10 per cent of total commercial bank Erie Bankshares, Inc., deposits in the State. (All banking data are as of Erie, Kansas December 31, 1975.) Bank is the only banking institution in Erie, an Order Approving Formation agricultural community (population of 1,414 at the of Bank Holding Company and 1970 Census) located in southeastern Kansas. Performance of Insurance Agency Activities Bank is the third largest of six banks in the Neosho Erie Bankshares, Inc., Erie, Kansas, has applied County banking market2 and controls 10.6 per cent for the Board's approval under § 3(a)(1) of the of total deposits in the market. The principal of the Bank Holding Company Act (12 U.S.C. shareholder of Applicant and Bank is also the § 1842(a)(1)) of formation of a bank holding principal shareholder (since 1970) of another bank company through the acquisition of 98.5 per cent that competes in the relevant banking market: The of the voting shares of Home State Bank, Erie, Stark State Bank, Stark, Kansas ("Stark Bank").3 Kansas ("Bank"). At the same time, Applicant Stark Bank ($3.7 million in deposits) is the smalhas applied pursuant to § 4(c)(8) of the Act (12 lest of the six banks in the relevant market and U.S.C. § 1843(c)(8)) and § 225.4(b) of the holds 4.4 per cent of total deposits therein. In view Board's Regulation Y, for permission to engage of the size of Bank and Stark Bank, respectively, in the sale of credit life and credit accident and and inasmuch as the instant proposal represents health insurance directly related to extensions of a restructuring of Bank's ownership from individcredit by Bank. Such activities have been deter- ual to corporate form, it appears that consummamined by the Board in § 225.4(a)(9)(ii)(a) of tion of the proposal would not have any significant Regulation Y to be permissible for bank holding adverse effects on existing or potential competition companies subject to Board approval of individual in any relevant area. Accordingly, it is concluded proposals in accordance with the procedure of § that competitive considerations are consistent with 225.4(b) of Regulation Y. approval of the application to become a bank Notice of the applications, affording opportunity holding company. for interested persons to submit comments and As indicated above, the Board denied Appliviews, has been given in accordance with §§ 3 cant's previous application to become a bank and 4 of the Act (41 Federal Register 39387 holding company through the acquisition of Bank. (1976)). The time for filing comments and views The basis of the Board's denial related to financial has expired, and the Board has considered the and managerial considerations; in that case, the applications and all comments received in light of Board determined that Applicant's debt retirement the factors set forth in § 3(c) of the Act (12 U.S.C. program would not provide Applicant with the § 1842(c)), and the considerations specified in § necessary financial flexibility to service the acqui- 4(c)(8) of the Act. sition debt while maintaining Bank's capital at a Applicant, a nonoperating corporation with no desirable level. However, in view of the facts as subsidiaries, was organized for the purpose of now presented, the financial condition, managerial becoming a bank holding company through the resources, and future prospects of both Applicant acquisition of Bank ($8.8 million in deposits) and and Bank are regarded as generally satisfactory engaging in the sale, as agent, of credit life and and consistent with approval of the application to credit accident and health insurance directly re- become a bank holding company. Applicant's lated to extensions of credit by Bank.1 The pro- present proposal evidences an improvement in posed transaction involves the transfer of control of Bank from an individual (who acquired Bank 2 The Neosho County banking market is approximated by 1By Order dated March 21, 1975, the Board denied the Neosho County, Kansas. application by Applicant to become a bank holding company 3Applicant's principal has filed separate applications with through the acquisition of Bank. (61 Federal Reserve BULLE- the Board for Stark Bankshares, Inc., Stark, Kansas, to become TIN 246) In view of that action, the Board considered Appli- a bank holding company with respect to Stark Bank and to cant's concurrent application to engage in certain insurance engage in the sale of credit life and credit accident and health agency activities to be moot. insurance directly related to extensions of credit by Stark Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1053 Bank's capital position, quality of assets, and effective date of this Order, unless such period management. It now appears that Applicant will is extended for good cause by the Board or by have the financial flexibility to service its acquisi- the Federal Reserve Bank of Kansas City pursuant tion debt without placing an undue strain on the to delegated authority. The determination as to financial condition of Bank, as well as to assist Applicant's insurance activities is subject to the Bank if any unexpected problems should arise. conditions set forth in § 225.4(c) of Regulation Therefore, considerations relating to banking fac- Y and to the Board's authority to require reports tors are consistent with approval of the application. by, and make examinations of, holding companies Consummation of the transaction would have no and their subsidiaries and to require such modifiimmediate effect on the area's convenience and cation or termination of the activities of a bank needs; however, some expansion of services may holding company or any of its subsidiaries as the result in the future under the more flexible cor- Board finds necessary to assure compliance with porate structure of the holding company. Consid- the provisions and purposes of the Act and the erations relating to the convenience and needs of Board's regulations and orders issued thereunder, the community to be served, therefore, are re- or to prevent evasion thereof. garded as being consistent with approval of the By order of the Board of Governors, effective application. It is the Board's judgment that con- November 22, 1976. summation of the proposed transaction would be Voting for this action: Vice Chairman Gardner and in the public interest and that the application to Governors Coldwell, Jackson, Partee, and Lilly. Absent acquire Bank should be approved. and not voting: Chairman Burns and Governor Wallich. In connection with the application to beome a bank holding company, Applicant has also ap- (Signed) GRIFFITH L. GARWOOD, plied, pursuant to § 225.4(a)(9)(ii)(a) of Regula- [SEAL] Deputy Secretary of the Board. tion Y, to engage de novo in the sale of credit First Security Corporation, life and credit accident and health insurance di- Salt Lake City, Utah rectly related to extensions of credit by Bank. Approval of the application to engage in such Order Amending Divestiture Deadline activities would insure the residents of Erie and nearby areas a convenient source of credit-related By Order dated July 30, 1976, the Board denied insurance services. It does not appear that Appli- further extensions of time for divestiture by First cant's engaging in the above-described activities Security Corporation, Salt Lake City, Utah would have any significant adverse effect on exist- ("FSC"), of First Security Savings and Loan ing or potential competition. Furthermore, there Association, Pocatello, Idaho ("FSS&L"), and is no evidence in the record indicating that con- determined not to process FSC's tendered applicasummation of the proposal would result in any tion to retain FSS&L pursuant to § 4(c)(8) of the undue concentration of resources, unfair competi- Bank Holding Company Act. The Board's Order tion, conflicts of interests, unsound banking prac- requires FSC to divest itself of any and all direct tices or other adverse effects on the public interest. or indirect interest in and control over FSS&L by Based on the foregoing and other considerations no later than November 1, 1976, and to file a plan reflected in the record, the Board has determined, of divestiture with the Board by no later than in accordance with the provision s of § 4(c)(8) September 15, 1976.1 of the Act, that consummation of this proposal By letter dated August 25, 1976, and attachcan reasonably be expected to produce benefits to ments thereto, supported by two Supplements (the the public that outweigh possible adverse effects most recent dated October 11, 1976), FSC has and that the application to engage in credit-related requested that the Board grant reconsideration of insurance activities should be approved. its July 30 Order. Pending Board action on the Accordingly, the applications are approved for petition the Board believes it is appropriate to the reasons summarized above. The acquisition of extend the deadline by which FSC is to divest itself Bank shall not be made before the thirtieth calendar day following the effective date of this Order. The acquisition of Bank and the commencement of credit-related insurance agency activities shall 1 By action of September 15, 1976, the Board directed FSC to file a plan of divestiture no later than t\vo weeks subsequent be made not later than three months after the to the date of Board action on the petition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1054 Federal Reserve Bulletin • December 1976 of any and all direct or indirect interest in and Applicant is the second largest banking organicontrol over FSS&L. Accordingly, the date for zation in North Carolina by virtue of its control final divestiture is hereby extended until such date of Bank. Bank has deposits of approximately $2.1 as the Board may fix in its order on the petition billion, representing approximately 17.2 per cent for reconsideration. of the total deposits in commercial banks in the By order of the Board of Governors, effective State.2 In addtion to engaging in factoring and November 8, 1976. commercial financing activities through Company, Applicant engages in mortgage banking, consumer Voting for this action: Chairman Burns and Goverfinancing, leasing, and trust activities through nors Gardner, Wallich, Jackson, Partee, and Lilly. nonbank subsidiaries. Absent and not voting: Governor Cold well. Company (formerly Factors, Inc., High Point, (Signed) GRIFFITH L. GARWOOD, North Carolina) conducts its factoring and com- [SEAL] Deputy Secretary of the Board. mercial financing business from one office located in Charlotte, North Carolina, and derives the bulk NCNB Corporation, of its factoring and commercial financing business Charlotte, North Carolina from a four-State area comprised of the States of North Carolina, South Carolina, Tennessee, and Order Approving Retention of Kentucky. On June 30, 1976, Company had total NCNB Financial Services, Inc. assets of $51.5 million and net receivables of NCNB Corporation, Charlotte, North Carolina, $51.2 million. a bank holding company within the meaning of The Board regards the standards under § 4(c)(8) the Bank Holding Company Act, has applied for of the Act for retention of shares to be the same the Board's approval, under Section 4 (c)(8) of as the standards for a proposed acquisition. In the Act and § 225.4(b)(2) of the Board's Regula- 1969, the last full year prior to the acquisition, tion Y, to retain all of the voting shares of NCNB Company derived over 80% of its business from Financial Services, Inc., Charlotte, North Carolina North Carolina and, in that year Company factored ("Company"). Company engages in factoring and total accounts of $33.9 million, and held $1 milcommerical financing activities. Such activities lion of commercial finance outstandings when achave been determined by the Board to be closely quired. The record indicates that there is a large related to banking (12 CFR 225.4(a)(1)). number of competing firms in the factoring and Notice of the application, affording opportunity commercial financing industries and that in 1970, for interested persons to submit comments and Company accounted for less than 1 per cent of views on the public interest factors, and has been factored volume in North Carolina and 0.2 per cent duly published (41 Federal Register 41165). The in the United States. Furthermore, it does not time for filing comments and views has expired, appear that Company and Applicant were in comand the Board has considered all comments re- petition in either commercial financing or factoring ceived in the light of the public interest factors in 1970, since both forms of financing differ sigset forth in Section 4(c)(8) of the Act (12 U.S.C. nificantly from commercial bank lending. Thus, 1843(c)(8)). the Board regards Applicant's acquisition of Applicant, a one-bank holding company, be- Company as a foothold acquisition by Applicant came a bank holding company as a result of the in the factoring and commercial financing indus- 1970 Amendments to the Act by virtue of its tries. Accordingly, the Board concludes that Apcontrol of North Carolina National Bank, Char- plicant's acquisition of Company did not have any lotte, North Carolina ("Bank"). Applicant ac- significant adverse effects on either existing or quired all of the outstanding shares of Company potential competition in any relevant area. on March 2, 1970. Pursuant to the provisions of Since its acquisition by Applicant in 1970, § 4 of the Act, Applicant has until December 31, 1980 to divest its shares of Company or, in the alternative, to apply to the Board for approval to retain them.1 Section 4 of the Act provides inter alia, that nonbanking activities acquired between June 30, 1968 and December 31, 1970 by a company which becomes a bank holding company as a result of the 1970 Amendments may not be retained beyond December 31, 1980, without Board approval. ^ee opposite column for footnote. 2 Banking data are as of June 30, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1055 Company has grown from a business which es- within the meaning of the Bank Holding Company sentially served only one State to one which now Act ("Act"), has applied for the Board's apserves four States, and its volume of accounts proval, under § 4(c)(8) of the Act (12 U.S.C. § factored has more than tripled while its commer- 1843(c)(8)) and § 225.4(b)(2) of the Board's Regcial financing volume has grown even more rap- ulation Y (12 CFR § 225.4(b)(2)), to acquire idly. Company's volume of accounts factored was certain assets and assume certain liabilities1 of The $122.3 million in 1975 and commercial finance New Bedford Morris Plan Company, New Bedoutstandings was $16.3 million at year end. Com- ford, Massachusetts ("New Bedford Company"), pany's continued affiliation with Applicant is likely and Morris Plan Bank and Banking Company of to result in further growth of Company, accom- Chelsea, Chelsea, Massachusetts ("Chelsea Companied by increased efficiencies of operation and pany"), companies that engage in activities of increased competition in the areas served by Morris Plan banks, including selling investment Company. On the basis of these and other facts certificates (equivalent to receiving time and savof record, the Board concludes that the benefits ings deposits), making consumer loans, and acting to the public resulting from Applicant's acquisition as insurance agent with respect to insurance diof Company outweigh any adverse effects that rectly related to extensions of credit, and, in addicould have resulted from the affiliation. Further, tion, to engage in the activity of originating first it is the Board's view that approval of Applicant's mortgage loans. Such activities have been deterretention of Company can reasonably be expected mined by the Board to be closely related to bankto continue to produce benefits to the public that ing (12 CFR § 225.4(a)(1), (2), and (9)(ii)(a)). would outweigh possible adverse effects. Notice of the applications, affording opportunity Based on the foregoing and other considerations for interested persons to submit comments and reflected in the record, the Board has determined views on the public interest factors, has been duly that the balance of the public interest factors the published (41 Fed. Reg. 48611 and 49890 (1976)). Board is required to consider under § 4(c)(8) is The time for filing comments and views has exfavorable, and the application should be approved. pired, and the Board has considered the application Accordingly, the application is hereby approved. and all comments received in the light of the public This determination is subject to the conditions set interest factors set forth in § 4(c)(8) of the Act. forth in section 225.4(c) of Regulation Y and to Applicant, the second largest banking organithe Board's authority to require such modification zation in Rhode Island, controls one subsidiary or termination of the activities of a holding com- bank with total deposits of $885.1 million,2 reprepany or any of its subsidiaries as the Board finds senting 26.1 per cent of total deposits in commernecessary to assure compliance with the provisions cial banks in Rhode Island as of March 31, 1976. and purposes of the Act and the Board's regula- In addition, Applicant controls two nonbanking tions and orders issued thereunder, or to prevent subsidiaries, which respectively engage in holding evasion thereof. equity investments in real estate and serving as By order of the Board of Governors, effective investment adviser and administrator of a real November 16, 1976. estate investment trust. These activities are engaged in pursuant to the limited "grandfather" Voting for this action: Chairman Burns and Goverexemption of § 4(a)(2) of the Act. nors Gardner, Wallich, Coldwell, Jackson, Partee, and New Bedford Company holds deposits3 of $2.0 Lilly. million and Chelsea Company holds deposits of (Signed) GRIFFITH L. GARWOOD, [SEAL] Deputy Secretary of the Board. Old Stone Corporation, Providence, Rhode Island Applicant's proposal also encompasses the formation of two Morris Plan banks that would receive the assets and liabilities Order Approving Acquisition of the of New Bedford Company and Chelsea Company, respectively. New Bedford Morris Plan Company and Morris 2Unless otherwise indicated, banking data are as of September 30, 1976. Plan Bank and Banking Company of Chelsea 3As used in this Order in reference to New Bedford Company and Chelsea Company, the term "deposits" refers to liabilities Old Stone Corporation, Providence, Rhode Is- of those companies represented by interest bearing passbook investment certificates, term investment certificates, as well as land ("Applicant"), a bank holding company those liabilities known as "club accounts." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1056 Federal Reserve Bulletin • December 1976 $2.6 million. Neither company receives demand which are not currently insured. In addition, Apdeposits or makes commercial loans. The two plicant plans to expand services provided by New firms are currently affiliated with each other Bedford Company and Chelsea Company to inthrough common ownership and are the only two clude first mortgage loans, second mortgage loans, Morris Plan banks currently operating in the State home improvement loans, and mobile home loans. of Massachusetts. In that State, the operations of Based upon the foregoing and other consid- Morris Plan banks are specifically authorized by erations reflected in the record, the Board has statute and subjected by statute to examination and determined, in accordance with the provisions of regulation. New Bedford Company operates two § 4(c)(8), that consummation of this proposal can offices, one in New Bedford and the other in reasonably be expected to produce benefits that Taunton. Chelsea Company also operates two of- outweigh possible adverse effects. Accordingly, fices, one in Chelsea and the other in the Roslin- the applications are hereby approved. This deterdale section of Boston. mination is subject to the conditions set forth in At present, there is no competition between § 225.4(c) of Regulation Y and to the Board's Applicant's subsidiaries and the two Morris Plan authority to require such modification or terminabanks, although Applicant's subsidiary bank does tion of the activities of a holding company or any derive an insignificant amount of loans and depos- of its subsidiaries as the Board finds necessary to its from the Morris Plan banks' markets in Massa- assure compliance with the provisions and purchusetts. Applicant's subsidiaries have no offices poses of the Act and the Board's regulations issued in the market areas served by New Bedford Com- thereunder, or to prevent evasion thereof. pany and Chelsea Company. In addition, consum- The transaction shall be made not later than mation of the acquisitions would have no signifi- three months after the effective date of this Order, cant adverse effect on potential competition in unless such period is extended for good cause by either the Chelsea or New Bedford market given the Federal Reserve Bank of Boston. the large number of banking and consumer finance By order of the Board of Governors, effective alternatives already existing in the relevant mar- November 19, 1976. kets, low barriers to entry into the consumer finance field, and the competitive weakness of both Voting for this action: Chairman Burns and Governors Gardner, Coldwell, Jackson, Partee, and Lilly. Morris Plan banks. Hence, consummation of the Absent and not voting: Governor Wallich. proposal would not have any significant adverse effects on existing or potential competition in any (Signed) GRIFFITH L. GARWOOD, relevant market. There is no evidence in the record [SEAL] Deputy Secretary of the Board. to indicate that consummation of the proposed acquisitions would lead to an undue concentration Southern Bancorporation, Inc., of resources, unfair competition, conflicts of in- Greenville, South Carolina terests , unsound banking practices or other adverse Order Approving Acquisition effects. of Pioneer Management Company, Inc. Both New Bedford Company and Chelsea Company are in need of financial assistance. Both Southern B ancorporation, Inc., Greenville, are subsidiaries of a Delaware corporation that is South Carolina ("Applicant"), a bank holding currently undergoing reorganization under Chapter company within the meaning of the Bank Holding XI of the Bankruptcy Act and thus is incapable Company Act, has applied for the Board's apof rendering such assistance in a timely fashion. proval, under § 4(c)(8) of the Act and § Applicant proposes to inject, without incurring 225.4(b)(2) of the Board's Regulation Y, to acdebt, $300,000 in capital to the successor to New quire indirectly, through its wholly-owned subsid- Bedford Company and $700,000 in capital to iary, World Acceptance Corporation, Greenville, Chelsea Company's successor. Consummation of South Carolina ("World Acceptance"), all of the the proposal would increase competition by en- stock and warrants of Pioneer Management Comhancing the competitive viability of the two Morris pany, Inc., Jacksonville, Texas ("Company"). Plan banks. Furthermore, Applicant plans to ob- Company engages in the activity of making instaltain either public or private insurance on all de- ment loans to individuals. Such activity has been posits at the successor institutions to New Bedford determined by the Board to be closely related to Company and Chelsea Company, deposits in banking (12 C.F.R. § 225.4(a)(1)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1057 Notice of the application, affording opportunity would represent a foothold entry by Applicant into for interested persons to submit comments and those markets. It therefore appears that no signifiviews on the public interest factors, has been duly cant adverse effects on future competition would published (41 Fed. Reg. 30068 (1976)). The time result from the proposal. On the basis, the Board for filing comments and views has expired, and concludes that Applicant's acquisition of Company the Board has considered all comments received would not have significant adverse effects on either in the light of the public interest factors set forth existing or potential competition. in § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). It appears that consummation of this proposed Applicant, the fifth largest banking organization transaction would not result in any undue concenin South Carolina, controls two banks with depos- tration of resources, conflicts of interests, unsound its of approximately $279 million, representing banking practices, or any other adverse effects on approximately 7 per cent of total deposits in com- the public interest. Acquisition of Company by mercial banks in the State.1 Applicant's nonbank- Applicant would provide Company with access to ing subsidiaries are engaged in consumer finance a larger, more stable, and less costly source of and related credit insurance activities. funds, thereby enabling it to become a more ef- World Acceptance, with total net receivables of fective competitor. The acquisition can also be $6.4 million (as of March 31, 1976), is engaged expected to improve the managerial leadership and in making personal instalment loans to individuals depth of both companies. These procompetitive through 52 branch offices located in South Caro- factors, in the Board's opinion, outweigh any lina, Georgia, and Texas. In addition, it sells slightly adverse effects the proposal might have credit-related life, accident and health, and prop- on existing competition in the relevant market. erty and casualty insurance through offices located Based upon the foregoing and other considin South Carolina and Georgia. The Board ap- eration reflected in the record, the Board has proved Applicant's acquisition of World Accept- determined, in accordance with the provisions of ance at the time it granted approval of formation § 4(c)(8) of the Act, that Applicant's acquisition of Applicant in September 1973.2 of Company can reasonably be expected to pro- Company began its business of making personal duce benefits to the public that outweigh possible instalment loans in November 1972, and currently adverse effects. Accordingly, the application is has total net receivables of $305 thousand (as of hereby approved. This determination is subject to February 29, 1976), and operates six offices in the the conditions set forth in § 225.4(c) of Regulation eastern portion of Texas. World Acceptance and Y and to the Board's authority to require such Company compete with each other for personal modification or termination of the activities of a instalment loans in only one area, Temple, Texas. holding company, or any of its subsidiaries, as While both companies have an office in Temple, the Board finds necessary to assure compliance there are numerous consumer finance companies with the provisions and purposes of the Act and (including several companies with nation-wide the Board's regulations and orders issued thereoperations) operating in the Temple area, and the under, or to prevent evasion thereof. offices of World Acceptance and Company hold The transaction shall be made not later than only a small portion of the personal instalment loan three months after the effective date of this Order, business in the area. Accordingly, the amount of unless such period is extended for good cause by existing competition that would be eliminated by the Board, or by the Federal Reserve Bank of consummation of this proposal would be insig- Richmond pursuant to authority hereby delegated. nificant. Furthermore, in view of the relatively By order of the Board of Governors, effective small size of the operations of Company in other November 4, 1976. Texas markets in which it operates, the proposal Voting for this action: Vice Chairman Gardner and Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. *A11 banking data are as of December 31, 1975, unless otherwise indicated. 2Board Order dated September 19, 1973, approving the (Signed) RICHARD D. ABRAHAMSON, application of Southern Bancorporation, Inc., Greenville, South Carolina (59 Federal Reserve BULLETIN 764 (1973)). [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1058 Federal Reserve Bulletin • December 1976 Western Michigan Corporation, cant's Request for Reconsideration and finds that Niles, Michigan it presents new relevant facts that were not previously presented to the Board and that it would Order Granting Request for Reconsideration be appropriate for the Board to reconsider the Western Michigan Corporation, Niles, Michi- application. Accordingly, the Request for Recongan, has requested reconsideration of the Order sideration is hereby granted. of June 30, 1976 [41 Fed. Reg. 28361 (1976)], Comments and views regarding the proposed whereby the Board of Governors denied the appli- acquisition may be filed with the Board not later cation for prior approval of Western Michigan than December 27, 1976. Such communications Corporation to acquire the successor by merger should be addressed to the Secretary, Board of to The First National Bank of Cassopolis, Cassop- Governors of the Federal Reserve System, Washolis, Michigan, pursuant to Section 3(a)(3) of the ington, D. C. 20551. The application, as supple- Bank Holding Company Act [12 U.S.C. § mented by Applicant's Request for Recon- 1842(a)(3)]. sideration, may be inspected at the offices of the Board of Governors or at the Federal Reserve Bank This Request for Reconsideration is filed pursuof Chicago. ant to section 262.3(g)(5) of the Board's Rules of Procedure [12 CFR § 262.3(g)(5) (1976)], By order of the Board of Governors, effective which provides that the Board will not grant any November 26, 1976. request for reconsideration "unless the request presents relevant facts that, for good cause shown, Voting for this action: Chairman Burns and Goverwere not previously presented to the Board, or nors Gardner, Coldwell, Jackson, Partee, and Lilly. unless it otherwise appears to the Board that re- Absent and not voting: Governor Wallich. consideration would be appropriate." The Board (Signed) GRIFFITH L. GARWOOD, has considered the material submitted in Appli- [SEAL] Deputy Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During November 1976, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action Federal (effective Register Applicant Bank(s) date) citation CCNB Bancshares Corporation, Christian County 11/12/76 41 F.R. 51461 Ozark, Missouri National Bank, 11/22/76 Ozark, Missouri Crestwood Banking Company, Crestwood State 11/29/76 41 F.R. 53536 Ltd., Crestwood, Kentucky Bank, Crestwood, 12/7/76 Kentucky Delta Bancorporation, Inc., The Colorado Bank 11/22/76 41 F.R. 52529 Denver, Colorado and Trust Company 11/30/76 of Delta, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1059 First Freeport Corporation, First National Bank of 11/3/76 41 F.R. 49674 Freeport, Illinois Freeport, Freeport, 11/10/76 Illinois Lyons Bankshares, Inc., The Chandler 11/9/76 41 F.R. 50345 Lyons, Kansas National Bank of 11/15/76 Lyons, Lyons, Kansas Millikin Bancshares, Inc., The Millikin National 11/5/76 41 F.R. 50031 Decatur, Illinois Bank of Decatur, Decatur, 11/12/76 Illinois Estate of James Millikin, Millikin Bancshares, 11/5/76 41 F.R. 50032 Deceased, Decatur, Inc., Decatur, Illinois 11/12/76 Illinois Peoples Credit Co., The Metropolitan Bank, 11/23/76 41 F.R. 52534 Kansas City, Missouri Kansas City, Missouri; 11/30/76 and The Pleasant Hill Bank, Pleasant Hill, Missouri Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation Boatmen's Bancshares, Inc., Boatmen's Life Insurance 11/22/76 41 F.R. 52528 St. Louis, Missouri Company, Phoenix, 11/30/76 Arizona National Central Financial Land Mortgages, Inc., 11/8/76 41 F.R. 50346 Corporation, Lancaster, Dayton, Ohio 11/15/76 Pennsylvania Sections 3 and 4 Nonbanking Board action Federal company (effective Register Applicant Bank(s) (or activity) date) citation Stark Bankshares, Inc., The Stark State Sale of 11/22/76 41 F.R. 52533 Stark, Kansas Bank, Stark, credit-related 11/30/76 Kansas insurance PENDING CASES INVOLVING THE BOARD OF GOVERNORS* National Automobile Dealers Association, Inc. Michigan National Corporation v. Board of v. Board of Governors, filed November 1976, Governors, filed September 1976, U.S.C.A. U.S.C.A. for the District of Columbia. for the 6th Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1060 Federal Reserve Bulletin • December 1976 First Security Corporation v. Board of Gover- Roberts Farms, Inc. v. Comptroller of the Curnors, filed August 1976, U.S.C.A. for the rency, et al., filed November 1975, U.S.D.C. 10th Circuit. for the Southern District of California. Anthony R. Martin-Trigona v. Board of Gov- National Computer Analysts, Inc. v. Decimus ernors, filed August 1976, U.S.C.A. for the Corporation, et al., filed November 1975, District of Columbia. U.S.D.C. for the District of New Jersey, First State Bank of Clute, Texas, etal. v. Board fPeter E. Blum v. First National Holding Corof Governors, filed July 1976, U.S.C.A. for poration, filed May 1976, U.S.C.A. for the the 5th Circuit. Fifth Circuit, International Bank v. Board of Governors, et fPeter E. Blum v. Morgan Guaranty Trust Co., al., filed July 1976, U.S.D.C. for the District et al., filed April 1976, U.S.C.A. for the of Columbia. Fifth Circuit, North Lawndale Economic Development Cor- fLogan v. Secretary of State, et al., filed Sepporation v. Board of Governors, filed June tember 1975, U.S.D.C. for the District of 1976, U.S.C.A. for the 7th Circuit. Columbia. Central Wisconsin Bankshares, Inc. v. Board Florida Association of Insurance Agents, Inc. of Governors, filed June 1976, U.S.C.A. for v. Board of Governors, and National Assothe 7th Circuit. ciation of Insurance Agents, Inc. v. Board A.R. Martin-Trigona v. Board of Governors, of Governors, filed August 1975, actions et al., filed June 1976, U.S.D.C. for the consolidated in U.S.C.A. for the Fifth Cir- District of Columbia. cuit. National Urban League, et al. v. Office of the 11 David R. Merrill, etal. v. Federal Open Market Comptroller of the Currency, et al., filed Committee of the Federal Reserve System April 1976, U.S.D.C. for the District of filed May 1975, U.S.D.C. for the District of Columbia Circuit. Columbia, appeal pending, U.S.C.A. for the Farmers & Merchants Bank of Las Cruces, District of Columbia. New Mexico v. Board of Governors, filed Curvin J. Trone v. United States, filed April April 1976, U.S.C.A. for the District of 1975, U.S. Court of Claims. Columbia Circuit. Louis J. Roussel v. Board of Governors, filed United States ex rel. A.R. Martin-Trigona v. April 1975, U.S.D.C. for the Eastern District Arthur F. Burns, et al., March 1976, of Louisiana. U.S.D.C. for the District of Columbia. Georgia Association of Insurance Agents, et al. Grandview Bank & Trust Company v. Board v. Board of Governors, filed October 1974, of Governors, filed March 1976, U.S.C.A. U.S.C.A. for the Fifth Circuit. for the Eighth Circuit. Alabama Association of Insurance Agents, et Association of Bank Travel Bureaus, Inc. v. al. v. Board of Governors, filed July 1974, Board of Governors, filed February 1976, U.S.C.A. for the Fifth Circuit, U.S.C.A. for the Seventh Circuit. f Investment Company Institute v. Board of Gov- Memphis Trust Company v. Board of Gover- ernors, dismissed July 1975, U.S.D.C. for nors, filed February 1976, U.S.D.C. for the the District of Columbia, appeal pending, Western District of Tennessee. U.S.C.A. for the District of Columbia Cir- First Lincolnwood Corporation v. Board of cuit. Governors, filed February 1976, U.S.C.A. fConsumers Union of the United States, Inc., for the Seventh Circuit. et al. v. Board of Governors, filed September International Bank v. Board of Governors, filed 1973, U.S.D.C. for the District of Columbia. December 1975, U.S.C.A. for the District of Bankers Trust New York Corporation v. Board Columbia. of Governors, filed May 1973, U.S.C.A. for the Second Circuit. "{"Decisions have been handed down in these cases, subject *This list of pending cases does not include suits against to appeals noted. the Federal Reserve Banks in which the Board of Governors tThe Board of Governors is not named as a party in this is not named a party. action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1061 Announcements CHANGE IN DISCOUNT RATE with the Chase Manhattan Bank. He holds a B.S. in Economics from Fordham University and has The Board of Governors of the Federal Reserve attended the American Institute of Banking and System approved actions by the directors of the IBM Systems Science Institute. Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, Dallas, and San Francisco, reducing the discount rate of those REGULATION Z: Supplement banks from 5Vi per cent to 5VA per cent, effective November 22, and of St. Louis, effective No- The Board of Governors on December 13, 1976, vember 26, 1976. issued a supplement to its Regulation Z (Truth in This action will bring the discount rate into Lending) specifying the procedures and criteria better alignment with short-term market interest under which States may be granted exemptions rates generally. The discount rate is the interest under the Fair Credit Billing Act. rate charged member commercial banks when they The Fair Credit Billing Act, a part of the Truth borrow from their district Federal Reserve Bank. in Lending Act, permits the Board to grant exemptions to States that have been determined by the Board to have substantially similar laws or TRANSFER OF ones that provide greater protection to consumers, FEDERAL RESERVE TERRITORY and that make adequate provision for enforcement. The supplement also contains procedures In a move to improve banking services in Arizona, whereby a State may apply to the Board for a the Board of Governors has approved the transfer determination as to whether its law is inconsistent of that State's five southeastern counties from the with the Fair Credit Billing Act. 11th to the 12th Federal Reserve District, effective Applications may be made only by States. Ap- January 1, 1977. By the transfer of Cochise, plications will be published for comment prior to Graham, Greenlee, Pima, and Santa Cruz Coun- final determination by the Board. ties, the 12th District will be extended to include the entire State of Arizona. The southeast Arizona area will now be served by the Los Angeles Branch PROPOSED AMENDMENTS of the Federal Reserve Bank of San Francisco, rather than the El Paso Branch of the Federal The Board of Governors on December 8, 1976, Reserve Bank of Dallas. issued for comment an amendment to Regulation Z (Truth in Lending) that would permit creditors doing business in Puerto Rico to make truth in CHANGE IN BOARD STAFF lending disclosures in Spanish. Comment should be received by the Board by January 15, 1977. The Board of Governors has announced the ap- In addition, the Board on December 16, 1976, pointment of John F. Hoover, Manager of the published for comment a proposed amendment to Financial Examinations Section in the Division of Regulation T (Credit by Brokers and Dealers) to Federal Reserve Bank Examinations and Budgets, permit registered market makers or specialists in as an Assistant Director in that division, effective the options market to obtain stock, in certain November 29, 1976. limited circumstances, on a 25 per cent margin Prior to joining the Board's staff in March 1973, requirement. Comment should be received by Mr. Hoover had been associated with Amtrak and January 17, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1062 Federal Reserve Bulletin • December 1976 REGULATION C: Exemptions law does not impose requirements for data compilation and disclosure that are substantially similar The Board of Governors on December 9, 1976, to the requirements of the Home Mortgage Disapproved, with certain conditions, applications closure Act, or that the State law does not contain from California, Illinois, Massachusetts, and New adequate provision for enforcement. Continuation York for limited exemptions from the requirements of the exemption was made dependent upon fulof the Home Mortgage Disclosure Act and the fillment of several conditions set forth in the Board's implementing Regulation C. Board's order. The act, which became effective last June 28, The Illinois exemption applies to all State-charrequires a number of disclosures concerning the tered commercial banks, savings banks, and savlocation of properties on which residential mort- ings and loan institutions that are subject to the gage loans are made by depositary institutions that Illinois Financial Institutions Disclosure Act. It is have assets of $10 million or more, that have subject to the same provisions for revocation as offices in principal metropolitan areas, and that the California exemption and its continuation was make Federally insured or regulated first-mortgage made subject to two conditions set forth in the loans on 1- to 4-family residences. Board's order. The Illinois Disclosure Act applies The Board approved the applications under pro- only to counties of more than 100,000 population. visions of the act specifying that when State law The Board's exemption, therefore, does not apply imposes mortgage and home improvement loan in counties in standard metropolitan areas with disclosure requirements substantially similar to the population of 100,000 or less. requirements of the Federal act, the Board may The Massachusetts exemption applies to all grant exemptions from the requirements of the State-chartered banks and thrift institutions that are Home Mortgage Disclosure Act and Regulation C. subject to the directives of the Massachusetts The Board considered, in particular, whether— Commissioner of Banks. The exemption is subject as required by the act for exemptions—State law to the same provisions for revocation as in the provides depositors, citizens, and public officials cases of California and Illinois. The Board's order "with sufficient information to enable them to set forth two conditions for continuation of the determine whether depositary institutions are fill- exemption. At the present time, the Massachusetts ing their obligations to serve the housing needs Commissioner's directives apply only in the Bosof the communities and neighborhoods where they ton and Springfield metropolitan areas, and the are located and to assist public officials in their Board's exemption, consequently, applies only to decisions as to the investment of public funds, with lending institutions in those areas. the objective of improving the private investment The New York exemption applies to all Stateenvironment." chartered commercial banks, mutual savings The California exemption—requested by the banks, and savings and loan institutions that are California Savings and Loan League—applies to subject to the Banking Department's Supervisory State-chartered savings and loan institutions that Procedure G 107. It is subject to revocation on are subject to the loan register and fair lending the same grounds as the other exemptions granted regulations and directives of the California on this date. Its continuation was made subject Department of Savings and Loan. The exemption to an amendment to the Supervisory Procedure G is subject to revocation if the Board finds that State 107 specified in the Board's order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1063 Industrial Production Released for publication December 15 struction and business supplies increased somewhat. Industrial production increased by an estimated 1.2 The production of durable materials rose sharply per cent in November to 132.0 per cent of the in November, but this was mainly in the auto- 1967 average, fractionally above the record high supplying industries. Output of other durable maof 131.9 per cent reached in June 1974. The terials rose slightly. Production of nondurable maincrease followed declines in the index for both terials advanced moderately. September and October. More than half of the Seasonally adjusted, ratio scale, 1967=100 November increase resulted from resumption of production following the settlement of strikes, but additional moderate increases were widespread among consumer goods, business equipment, and nondurable materials. Output of consumer goods advanced sharply in November primarily because of a post-strike rebound in motor vehicle production, but moderate increases occurred in other industries also. Auto assemblies, up 14 per cent, were at an 8.8million-unit annual rate and at their pre-strike level. Current production schedules indicate a further rise in December. Production of home goods last month increased moderately, as did output of consumer nondurable goods, including clothing and consumer staples. Business equipment production increased more than 2 per cent, the result mainly of the resolution of strikes affecting farm equipment and truck production. At 139.3 per cent of the 1967 average, business equipment remains F.R. indexes, seasonally adjusted. Latest figures: November. 5 per cent below its 1974 high. Output of con- *Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 PPeerr cceenntt cchhaannggeess ffrroomm—— 1976 IInndduussttrriiaall pprroodduuccttiioonn Month Year Q2 to Aug. Sept. Oct.p Nov.e ago ago Q3 Total 131.3 130.9 130.4 132.0 1.2 6.9 1.2 Products, total 130.3 130.0 129.6 131.5 1.5 6.2 .9 Final products 128.3 127.5 127.3 129.5 1.7 5.9 .6 Consumer goods 137.5 136.2 136.5 138.9 1.8 5.9 -.2 Durable goods 143.7 138.5 138.1 144.6 4.7 9.1 -1.1 Nondurable goods 134.9 135.3 135.8 136.6 .6 4.6 .2 Business equipment 137.7 137.6 136.4 139.3 2.1 7.5 2.1 Intermediate products 137.8 139.0 138.3 139.2 .7 7.7 2.1 Construction supplies 134.1 134.3 133.9 134.9 .7 9.6 2.8 Materials 133.0 132.4 131.7 133.0 1.0 8.0 1.7 p Preliminary. ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Financial and Business Statistics CONTENTS INSIDE BACK COVER A32 Federal finance A34 [7.S. Government securities Guide to Tabular Presentation A37 Federally sponsored credit agencies Statistical Releases: Reference A38 Security issues A40 Business finance U.S. STATISTICS A42 Real estate credit A2 Member bank reserves, Reserve Bank A45 Consumer credit credit, and related items A48 Industrial production A5 Federal funds—Money market banks A50 Business activity A6 Reserve Bank interest rates A50 Construction A7 Reserve requirements A52 Labor force, employment, and A8 Maximum interest rates; margin unemployment requirements A9 Open market account A53 Consumer prices A10 Federal Reserve Banks A53 Wholesale prices All Bank debits A54 National product and income A12 Money stock A56 Flow of funds A13 Bank reserves; bank credit A14 Commercial banks, by classes INTERNATIONAL STATISTICS A18 Weekly reporting banks A58 U.S. balance of payments A23 Business loans of banks A59 Foreign trade A24 Demand deposit ownership A59 U.S. reserve assets A25 Loan sales by banks A60 Gold reserves of central banks and A25 Open market paper governments A26 Interest rates A61 International capital transactions A29 Security markets of the United States A29 Stoc/: market credit A74 Open market rates A30 Savings institutions A75 Central bank rates A75 Foreign exchange rates A85 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 BANK RESERVES AND RELATED ITEMS • DECEMBER 1976 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas- Period or date U.S. Govt, securities1 Special ury Drawing cur- Gold Rights rency Held Other stock certificate out- Bought under 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—No v 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 66 2,763 3,744 107,270 11,598 1,123 10,779 Nov. P 99,507 98,331 1,176 85 3,138 3,511 106,567 11,598 1,200 10,828 Week ending— 1976—Sept. 1 100,655 97,203 3,452 93 2,573 3,657 107,748 11,598 700 10,702 8 97,388 97,277 111 45 2,441 3,505 103,645 11,598 700 10,720 15 93,935 93,935 61 3,467 3.709 101,426 11,598 700 10,735 22 99,629 97,086 2,543 44 3,131 3,693 107,046 11,598 700 10,741 29 103,069 98,252 4,817 87 2,414 3,675 109,848 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 48 3,470 3,643 107,581 11,598 1,200 10,786 27 100,433 99,923 510 119 2,553 3,750 107,066 11,598 1,200 10,798 Nov. 3 101,709 99,692 2,017 202 2,349 3,877 108,480 11,598 1,200 10,774 10 97,565 97,174 391 50 2,954 3,851 104,656 11,598 1,200 10,814 17* 99,007 98,262 745 54 3,399 3,504 106,244 11,598 1,200 10,824 24P 99,956 98,627 1,329 44 3,079 3,077 106,495 11,598 1,200 10,842 Daily figures for— End of month 1976—Sept 103,507 98,405 5,102 322 2,997 3,800 111,464 11,598 800 10,742 Oct 102,675 100,035 2,640 44 2,013 3,770 108,839 11,598 1,200 10,738 98,517 98,517 39 2,697 3,361 104,802 11,598 1,200 10,843 Nov.? Wednesday 102,282 96.408 5,874 271 3,186 4,528 111,135 11,598 700 10,715 1976—Sept. 1 97,098 96,320 778 40 2,844 3,622 103,925 11,598 700 10,733 8 94,006 94,006 167 4,283 3,587 102,288 11,598 700 10,738 15 101,363 98.409 2,954 52 3,341 3,669 108,851 11,598 700 10,750 22 106,276 98,076 8,200 326 2,811 3,749 113,881 11,598 700 10,757 29 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 4,113 4,002 111,249 11,598 1,200 10,789 27 101,026 99,426 1,600 568 2,524 3,719 108,063 11,598 1,200 10,804 Nov. 3 104,013 98,652 5,361 1,139 2,619 3,953 112,361 11,598 1,200 10,810 10 99,564 96,828 2,736 135 2,881 3,843 106,869 11,598 1,200 10,824 17p 99,317 99,317 59 4,508 3,110 107,190 11,598 1,200 10,824 24 p 102,603 98,676 3,927 82 3,716 3,140 110,085 11,598 1,200 10,843 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

DECEMBER 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 Treas- reserves Other reserves ury with F.R. Banks F.R. Period or date cash liahold- bilities ings and With Cur- Treas- For- Other 4 capital F.R. rency Total 6 ury eign Banks and coin 5 Averages of daily figures 656 1,194 146 458 2,192 23,071 4,960 28,031 1969—Dec. 427 849 145 735 2.265 23,925 5,340 29,265 1970—Dec. 453 1,926 290 728 2,287 25,653 5,676 31,329 1971—Dec. 350 1,449 272 631 2,362 24,830 6,095 31,353 1972—Dec. 323 1,892 406 717 2,942 28,352 6,635 35,068 1973—Dec. 220 1,741 357 874 3.266 29,767 7,174 36,941 1974—Dec. 415 4,333 297 649 3,276 27,215 7,356 34,571 1975—Nov. 452 3,955 259 906 3,247 27,215 7,773 34,989 Dec. 496 5,903 287 916 3,225 26,995 8,445 35,575 1976—Jan. 527 8,811 280 716 3,231 26,168 7,646 33,953 Feb. 511 7,653 264 810 3,252 26,366 7,456 33,967 Mar. 524 5,211 254 815 3,203 26,345 7,568 34,063 Apr. 507 7,215 286 655 3.314 26,236 7,838 34,228 May 510 6,778 252 784 3,275 25,711 7,903 33,774 June 469 7,404 262 945 3,310 25,933 8,064 34,146 July 454 7,797 275 979 3,326 26,001 7,989 34,141 Aug. 442 8,270 249 1,071 3.315 25,708 8,113 33,979 Sept. 482 9,199 266 1,012 3,372 26,127 8,025 34,305 Oct. 460 6,709 259 947 3,326 26,503 8,181 34,842 Nov.f Week ending— 423 10,126 259 ,245 3,538 25,884 8,017 34,052 1976—Sept. 1 419 6,735 267 ,062 3,095 25,168 8,242 33,564 8 410 3,768 262 ,197 3,206 25,261 8,414 33,835 15 460 9,316 229 953 3,371 25,908 7,428 33,496 .22 474 12,303 220 914 3,529 26,057 8,360 34,577 29 499 11,633 273 1,039 3,383 26,028 8,258 34,433 Oct. 6 500 7,811 237 1,020 3,212 25,180 8,466 33,800 13 491 8,399 291 1,010 3 318 27,113 7,419 34,686 20 457 9,093 243 1,018 3 ,450 26,184 7,844 34,184 27 448 9,650 319 1,057 ,679 26,343 8,277 34,778 Nov. 3 450 6,768 237 877 ,090 25,417 8,452 34,027 10 471 6,005 287 910 ,262 26,864 8,241 35,263 17* 461 6,383 220 795 ,338 26,619 7,640 34,417 24* Daily figures for— End of month 496 13,296 393 1,024 3,625 26,220 8,258 34,626 1976—Sept. 453 10,238 362 953 3,615 26,461 8,277 34,896 Oct. 478 6,766 305 1,022 3,514 23,300 8,378 31,837 Nov.* Wednesday 412 9,959 216 2,227 3,410 28,241 8,017 36,409 416 3,421 292 967 3,123 28,148 8,242 36,544 1976—Sept. 1 414 5,684 327 1,112 3,283 24,155 8,414 32,729 8 466 10,841 230 877 3,363 26,337 7,428 33,925 15 504 12,212 245 920 3,649 29,716 8,360 38,236 22 .29 499 7,496 252 898 3,030 22,842 8,258 31,247 Oct. 6 504 9,128 280 1,171 3,285 30,755 8,466 39,375 13 460 8,076 256 1,546 3,397 30,544 7,419 38,117 20 450 9,448 251 954 3,482 26,572 7,844 34,572 27 433 8,403 296 967 3,117 31,614 8,277 40,049 Nov. 3 454 6,472 199 933 3,157 27,118 8,452 35,728 10 466 6,758 307 848 3,249 26,858 8,241 35,257 17* 456 6,965 219 911 3,430 28,974 7,640 36,772 24* 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): Ql, $279 with marginal reserves are no longer reported. However, two amounts are million; Q2, $172 million; Q3, $112 million; Q4, $84 million. For 1974, reported: (1) deposits voluntarily held as reserves by agencies and branches Ql, $67 million, Q2, $58 million. Transition period ended after 1974, Q2. of foreign banks operating in the United States; and (2) Euro-dollar Beginning with week ending Nov. 19, 1975, adjusted to include waivers liabilities. of penalties for reserve deficiencies in accordance with Board policy, 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed effective Nov. 19, 1975, of permitting transitional relief on a graduated thereafter. Beginning Jan. 1963, figures are estimated except weekly basis over a 24-month period when a nonmember bank merges into an averages. Beginning Sept. 12, 1968, amount is based on close-of-business existing member bank, or when a nonmember bank joins the Federal figures for reserve period 2 weeks previous to report date. Reserve System. 6 Beginning with week ending Nov. 15, 1972, includes $450 million of For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 BANK RESERVES AND RELATED ITEMS • DECEMBER 1976 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess1 Total Sea- Excess Borrow- Excess Borrow- Excess Borrow- Excess 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 8 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 -35 22 174 42 1972—De c 31,353 31,134 219 1,049 -20 301 13 -42 429 -160 264 1973—De c 35,068 34,806 262 1,298 41 -23 74 43 28 761 133 435 1974—De c 36,941 36,602 339 703 32 132 80 5 39 323 163 282 1975—No v 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 34,305 34,116 189 66 32 28 13 -2 17 150 46 NOV.P 34,842 34,437 405 85 22 8 36 -4 -111 6 117 43 Week ending— 1975—Nov. 5 .. 34,886 34,082 804 67 41 355 18 240 191 67 12.. 33,754 33,791 -37 39 26 -119 -6 -71 4 159 35 19.. 34,741 34,567 174 58 26 34 -1 7 11 134 47 26. . 34,684 34,500 184 73 26 3 16 20 55 3 106 54 1976—May 5.. 35,296 34,855 441 30 11 65 3 6 216 154 27 12.. 33,720 33,753 -33 55 9 -43 34 3 -112 2 119 16 19.. 34,136 33,891 245 122 11 40 40 -14 80 34 139 42 26.. 33,597 33,519 78 136 12 -53 53 30 10 32 91 51 June 2.. 33,825 33,372 453 242 17 60 -15 244 79 164 149 9.. 33,127 33,197 -70 93 14 -42 36 -13 -153 5 138 35 16.. 33,971 33,400 571 49 16 118 68 210 11 175 38 23.. 33,594 33,774 -180 165 21 -106 62 -30 -134 45 90 58 30.. 34,866 34,341 525 165 28 95 14 37 213 24 180 127 July 7., 34,521 33,959 562 126 26 317 21 50 22 1 173 104 14.. 33,919 33,890 29 176 23 -93 78 -28 57 24 3 126 38 21 .. 34,420 34,192 228 59 23 88 19 -20 10 141 49 28., 34,219 34,187 32 159 27 -129 63 -6 52 33 115 63 Aug. 4., 34,691 34,255 436 157 22 86 86 53 113 16 184 55 11 ., 33,562 33,598 -36 122 26 -74 41 -38 24 -53 18 129 39 18., 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 15. 33,835 33,576 259 61 28 62 -20 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 31 32 41 6 136 50 Oct. 6. 34,433 34,099 334 101 35 51 32 9 93 6 181 63 13. 33,800 33,588 212 47 32 48 23 -15 3 156 44 20. 34,686 34,587 99 48 29 -23 -10 13 6 119 42 27. 34,184 34,073 111 119 33 -12 3 13 10 60 110 46 Nov. 3. 34,778 34,317 461 202 29 110 128 7 131 17 213 57 10. 34,027 34,005 22 50 23 -11 14 8 -77 102 36 17 P 35,263 34,829 434 54 21 -28 14 -30 -183 3 146 37 24 p 34,417 34,272 145 44 21 -26 21 -157 4 36 40 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

DECEMBER 1976 • MONEY MARKET BANKS A5 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net surplus, or deficit (—) Gross transactions Net transactions Reporting banks and Total Borweek ending— Excess Net Per cent two-way Pur- Loans row- Net Bor- inter- of trans- chases Sales to ings loans rowings bank Amount avg. Pur- Sales actions2 of net of net dealers3 from at F.R. Federal required chases buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1976—Oct. 6 155 34 15,877 -15,755 106.6 22,846 6,969 4,636 18,211 2,335 3,683 966 2,717 13 197 19,748 -19,551 134.3 26,142 6,394 4,964 21,178 1,430 4,297 969 3,328 20 -3 5 16,640 -16,647 109.2 23,506 6,866 4,803 18,703 2,063 3,240 1,418 1,822 27 11 69 15,528 -15,587 107.2 22,387 6,859 4,975 17,413 1,884 3,308 1,180 2,127 Nov. 3 194 132 16,086 -16,024 107.8 23,762 7,676 5,085 18,677 2,591 3,501 1,292 2,208 10 28 14 20,680 -20,666 139.9 26,748 6,068 4,224 22,524 1,843 4,* 917 3,970 17 163 17 19,191 -19,044 123.8 25,525 6,335 4,841 20,685 1,494 3,714 1,155 2,559 24 114 17,257 -17,143 117.0 23,167 5,910 4,494 18,673 1,417 3,047 1,490 1,557 8 in New York City 1976—Oct. 6 55 32 6,741 -6,718 114.9 7,225 484 484 6,741 1,998 242 1,756 13 108 8,019 -7,911 139.0 8,361 343 342 8,019 1,930 222 1,708 20 16 5,829 -5,813 96.1 6,529 700 700 5,829 2,120 269 1,851 27 13 5,110 -5,098 91.6 5,983 873 873 5,110 2,157 185 1,972 Nov. 3 106 128 5,708 -5,730 98.6 6,739 1,031 1,031 5,708 2,278 158 2,120 10 -8 14 8,009 -8,030 138.2 8,450 442 442 8,009 2,440 143 2,297 17 70 14 7,115 -7,059 113.2 7,830 714 715 7,115 2,115 241 1,874 24 47 5,526 -5,479 94.9 6,238 712 712 5,526 1,834 296 1,538 38 outside New York City 1976—Oct. 6 100 9,136 -9,037 101.2 15,621 6,485 4,152 11,470 2,335 1,685 724 961 13 89 11,729 -11,640 131.2 17,781 6,051 4,621 13,159 1,430 2,367 747 1,620 20 -19 10,811 -10,835 117.9 16,977 6,166 4,103 12,874 2,063 1,119 1,148 -29 27 -2 10,418 -10,489 116.9 16,404 5,986 4,102 12,302 1,884 1,151 996 155 Nov. 3 10,378 -10,294 113.8 17,023 6,645 4,055 12,969 2,591 1,223 1,134 89 10 12,671 -12,636 141.0 18,298 5,626 3,783 14,515 1,843 2,448 774 1,673 17 12,075 -11,985 131. 17,696 5,621 4,126 13,569 1,494 1,599 915 685 24 11,731 -11,665 131.4 16,929 5,198 3,782 13,148 1,417 1,213 1,194 19 5 in City of Chicago 1976—Oct. 6 29 5,557 -5,528 369.7 6,160 603 603 5,556 307 177 130 13 37 6,513 -6,477 429.4 7,113 600 599 6,514 352 213 139 20 -5 6,076 -6,081 388.9 6,737 662 662 6,076 340 442 -102 27 -1 13 5,982 -5,996 388.9 6,646 663 663 5,983 292 354 -61 Nov. 3 10 6,170 -6,159 408.0 6,819 650 650 6,170 390 316 74 10 27 6,950 -6,924 472.4 7,383 433 433 6,950 703 127 576 17 68 6,681 -6,614 427.4 7,238 557 557 6,681 573 392 182 24 41 6,131 -6,090 430.9 6,703 573 573 6,131 389 396 -7 33 others 1976—Oct. 6 3,580 -3,509 47.2 9,462 5,882 3,549 5,913 2,335 1,378 547 831 13 5,216 -5,164 70.1 10,668 5,452 4,022 6,646 1,430 2,014 533 1,481 20 4,735 -4,754 62.3 10,240 5,504 3,441 6.798 2,063 780 707 73 27 4,436 -4,493 60.4 9,758 5,323 3,439 6,320 1,884 859 642 217 Nov. 3 4,208 -4,134 54.8 10,204 5,996 3,405 6.799 2,591 833 818 15 10 5,721 -5,712 76.2 10,915 5,194 3,350 7,565 1,843 1,745 647 1,098 17 5,394 -5,372 70.7 10,458 5,064 3,570 6,888 1,494 1,026 523 503 24 5,601 -5,575 74.7 10,226 4,625 3,209 7,017 1,417 824 798 26 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 • DECEMBER 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 13a1 last par. Sec. 134 Federal Reserve Bank Regular rate Special rate3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 11/30/76 date rate 11/30/76 date rate 11/30/76 date 3 rate 11/30/76 date rate Boston 514 11/22/76 5*4 534 11/22/76 6 614 11/22/76 6*4 814 11/22/76 8*4 New York 51/4 11/22/76 51/2 53/4 11/22/76 6 614 11/22/76 61/2 814 11/22/76 8 *4 Philadelphia 51/4 11/22/76 51/2 53/4 11/22/76 6 614 11/22/76 6*4 81/4 11/22/76 81/2 Cleveland 51/4 11/22/76 51/2 534 11/22/76 6 61/4 11/22/76 6*4 81/4 11/22/76 81/2 R At ic la h n m ta o nd 5 5 1 1 / / 4 4 1 1 1 1 / / 2 2 2 2 / / 7 7 6 6 5 5 1 % /2 5 5 3 3 / / 4 4 1 1 1 1 / / 2 2 2 2 / / 7 7 6 6 6 6 6 6 1 1 4 4 1 1 1 1 / / 2 2 2 2 / / 7 7 6 6 6 6 1 * / 4 2 8 81 1 / 4 4 1 1 1 1 / / 2 2 2 2 / / 7 7 6 6 8 8 1 1 / / 2 2 Chicago 514 11/22/76 51/2 534 11/22/76 6 614 11/22/76 61/2 814 11/22/76 81/2 St. Louis 514 11/26/76 51/2 534 11/26/76 6 614 11/26/76 61/2 814 11/26/76 8*4 Minneapolis 514 11/22/76 51/2 534 11/22/76 6 614 11/22/76 61/2 814 11/22/76 m Kansas City 51/4 11/22/76 51/2 534 11/22/76 6 614 11/22/76 61/2 814 11/22/76 81/2 Dallas 51/4 11/22/76 51/2 53/4 11/22/76 6 6% 11/22/76 61/2 814 11/22/76 81/2 San Francisco 51/4 11/22/76 51/2 53/4 11/22/76 6 6*4 11/22/76 6 *4 81/4 11/22/76 m 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. I 1 n 9 5 e 6 ff — ec A A t p u D r g e . . c. 2 1 2 4 3 3 0 1 , 1955 2 2 21 % % 2 /2 * - - - 3 3 4 3 2 2 2 3 1 3 3 / / / 4 2 4 1 19 9 6 6 5 4 — — D N e o c v . . 2 3 1 6 4 0 3 . . . . 4 3 1 4 4 /2 1 - - / 4 2 4 1 / 2 4 4 4 4 1 1 / / 2 2 1 1 9 97 7 3 1 — — J D a e n c . . 2 1 1 1 4 5 3 7 4 41 1 / / 4 5 2 2 1 - - / 4 4 2 3 3 4 4 4 4 4 5 1 * 3 / 4 4 2 1957—A N u o g v . . 2 1 3 9 5 1 3 3 3 3 3 - - 1 3 3 / 1 1 2 / / 2 z 3 3 3 3 *4 1967— N Ap o r v . . 2 2 1 0 7 4 7 . . . . 4 4 4 4 - 1 - 4 / 4 2 1 1 / / 2 2 4 4 4 4 1 1 / / 2 2 A M F M e p a a b r y r . . . 2 2 1 6 3 4 2 1 5 5 5 1 3 / 5 5 4 2 1 3 - - - / 6 5 / 5 2 4 1 3 / 4 2 6 5 5 5 5 1 3 * * / / 4 4 2 4 Dec. 2 3 3 1968—Mar. 15. 41/2-5 414 18 6 6 1958—J A M A M a u p n a a r g y . r . . . 2 1 2 1 2 1 2 5 7 8 9 1 4 3 2 2 2 2 l l 3 % 1 3 1 y / / / 2 / 1 4 4 4 4 4 - * - - - - - 2 % 2 4 2 3 3 3 3 1 , / 4 4 2 2 2 2 3 1 1 1 3 1 1 1 3 33 / / / / /4 4 4 4 4 4 4 1969— A A A D p p u ec r r g . . . . 2 2 2 3 1 1 1 6 0 2 6 0 8 4 9 . . . . . . . . 5 5 5 5 1 1 1 / 5 5 5 4 / 5 4 2 - 1 1 1 - - 5 - 5 / / / 5 2 4 2 1 6 1 1 / / f 2 2 c 5 5 5 5 5 5 5 6 1 1 1 1 1 * / / / / / 4 2 2 4 2 2 1974— J D A u p e l c y r . . 2 3 2 1 5 9 2 0 3 5 6 7 7 7 * 3 6 7 7 8 4 4 1 1 - - - - / / 6 8 8 7 2 2 1 1 4 /2 . 6 6 7 7 7 8 8 7 1 1 1 * 3 / / / 4 4 2 2 2 Sept. 12 13/4-2 2 6 6 16 734 73/4 O No ct v . . 2 2 4 7 3 2 2 2 - 1 2 / 1 2 / 2 2 2 21 /2 1970—Nov. 11 5 5 3 3 5 4 4 3 - - 6 6 4 5 5 6 3 3 4 4 1975—Jan. 1 6 0 7 7 1 1 4 4 - - 7 7 3 3 4 4 7 7 * 3 4 4 1959—M J S M u e a a p n r y e t . . 2 1 1 1 9 1 2 6 6 2 3 3 1 1 / 3 3 / 2 2 - 1 3 - - / 1 3 4 z / 2 4 3 3 3 3 1 y /2 2 1971—J D a e n c . . 11 1 5 5 5 1 1 1 / / 5 4 5 2 2 1 1 - - - 5 / 5 5 2 4 3 1 3 / / / 4 4 2 5 5 5 5 5 1 3 1 1 1 / / / / 4 2 4 4 2 F M M e a a b y r . . 1 2 1 1 6 4 5 0 4 7 6 6 6 1 3 / 7 6 4 6 4 1 3 - - 1 6 / / - 7 4 4 4 6 1 * 3 / 4 4 4 7 6 6 6 6 6 1 1 3 3 % / / / 4 4 4 4 18 4 4 19. 5 -51/4 51/4 23 6 6 1960—J S A u e u n p g e t . . 1 1 1 2 9 3 0 4 3 3 3 1 * / 3 3 4 2 -13 - - /21 4 4 / 2 4 3 3 3 3 1 * / 4 2 J F u e l b y . 2 2 1 1 1 9 3 6 9 3 . , . , . 5 4 43 3 4 5 / 5 4 4 - 3 - - 5 /4 5 5 1 4 5 5 5 5 5 4 34 1976—J N a o n v . . 2 1 2 2 2 9 3 6 5 5 * * 5 4 5 4 1 * - -6 4 5 4 *4 5 5 5 5 * 1 * * 4 4 4 4 1963—July 17 3 -31/2 31/z Nov. 11 434-5 5 26 3% 31/2 19 43/4 4% In effect, Nov. 30,1976 51/4 51/4 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

DECEMBER 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^/2 12 44 1966 July 14,21 44 44 555 Sept. 8,15 666 1967 Mar. 2 333%%% 333111///222 Mar. 16 333 333 1968—Jan. 11,18 111666%%% 111777 111222 111222%%% 1969—Apr. 17 111777 111777%%% 111222111///222 111333 1970 Oct. 1 55 Beginning Nov. 9, 1972 Net demand2,4 Time 3 Other time EEEEffffffffeeeeccccttttiiiivvvveeee ddddaaaatttteeee 0-5, maturing in— Over 55, maturing in— 000---222 222---111000 111000---111000000 111000000--- OOOvvveeerrr SSSaaavvv***iii nnngggsss 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 7 5 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 Nov. 30, 1976 m 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 • DECEMBER 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 4I/ 2 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: 90 days to 1 year. 5 30-89 days 5 5 5 5 1-2 years 5 % 90 days to 1 year 5% 5% 51/2 Singl 2 e - y m e a a t r u s r o i r ty : m ore... 5 53A 2 l- V 2 i V y i ea y r e s a r o s r more 6 6 y 2 6 6 V2 6 6 % 6 6 i/ 2 Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000:4 $1 2 0 3 1 0 0 - y 2 , - e 0 5 a 0 9 y r 0 e s d a o o a r r r s y s m m o o r r e e : . . 5% 5% 5 (3 % ) $1 G 00 o 4 6 , v 0 - e 6 y 0 r e 0 n y a e m o r a s r e r o n m s r t o a m r l e o u r n e i ts ( ( ( 6 3 5 ) ) ) 1 ( ( V 6 3 ) ) 4 m 7 ( * 3 > 4 7 7 m ( * 3 % > 4 60-89 days 5V4 (3) 90-179 days 5 % 6 (3) 180 days to 1 year (3) 1 year or more 5vz 6V4 (3) 1 For exceptions with respect to certain foreign time deposits, see 5 per cent of its total time and savings deposits. Sales in excess of that BULLETIN for Feb. 1968, p. 167. amount were subject to the 6 l/i 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 7*4 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 9 3 0 0 0 - - - 1 8 5 9 9 7 9 d d d a a y y a s s y s 6 6 6 V % V i 4 p p e e p r r e r c c e e n c n e t t n j t 1 ) June 24, 1970 t g r i e o o c v n e e i r v Q n e m c in e e i t n l e i t r n a e g l s s t u o r n n a i t t e s r s a t w o e n e s r t p e i a m p y e e a r b d m l e e p it w o te s e d i r t e s t c o w o i n t h h c o e l d d r e n n e s o a d m . v i i E n n g f a f s e ti c d o t e i n v p s e o u s N n it o d s v e . r a 2 n $ 7 d 1 , 0 c 1 0 o 9 ,0 u 7 0 4 ld 0 , 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 *£ 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. 1945—Feb. 4 40 50 1945—Feb. 5 July 4 50 50 July 5 1946—Jan. 20 1 7 0 5 0 1 7 0 5 0 1946—Jan. 21 1947—Jan. 31 1947—Feb. 1 1949—Mar. 29 75 75 1949—Mar. 30 1951—Jan. 16 50 50 1951—Jan. 17 1953—Feb. 19 75 75 1953—Feb. 20 1955—Jan. 3 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 15 70 70 1958—Jan. 16 Aug. 50 50 Aug. 5 Oct. 15 70 70 Oct. 16 1960—July 27 90 90 1960—July 28 1962—July 9 70 70 1962—July 10 1963—Nov. 5 50 50 1963—Nov. 6 1968—Mar. 10 70 70 1968—Mar. 11 June 7 70 50 70 June 8 1970—May 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 1972—Nov. 24 1974—Jan. 2 65 50 65 Effective Jan. 3, 1974 50 50 50 NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 PPPeeerrriiioooddd 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 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000007777777777777777777744444444444444444444 555555555,,,,,,,,,222222222111111111444444444 22222222222222222,,,,,,,,,,,,,,,,,111111111111111116666666666666666600000000000000000 99999999999999 ----------3333333333,,,,,,,,,,444444444488888888883333333333 888888844444448888888 5555555555,,,,,,,,,,444444444433333333330000000000 222222244444449999999 -------1111111,,,,,,,888888844444445555555 99999993333333 -------111111100000002222222 1971 88888888888888888888,,,,,,,,,,,,,,,,,,,,888888888888888888889999999999999999999966666666666666666666 333333333,,,,,,,,,666666666444444444222222222 11111111111111111,,,,,,,,,,,,,,,,,000000000000000006666666666666666644444444444444444 1111111,,,,,,,000000033333336666666 ----------6666666666,,,,,,,,,,444444444466666666662222222222 1111111,,,,,,,333333333333338888888 4444444444,,,,,,,,,,666666666677777777772222222222 999999933333333333333 666666688888885555555 333333311111111111111 111111155555550000000 1972 88888888888888888888,,,,,,,,,,,,,,,,,,,,555555555555555555552222222222222222222222222222222222222222 666666666,,,,,,,,,444444444666666666777777777 22222222222222222,,,,,,,,,,,,,,,,,555555555555555554444444444444444455555555555555555 111111122222225555555 2222222222,,,,,,,,,,999999999933333333333333333333 777777788888889999999 ----------1111111111,,,,,,,,,,444444444400000000005555555555 555555533333339999999 -------2222222,,,,,,,000000099999994444444 111111166666667777777 222222255555550000000 1973 1111111111111111111155555555555555555555,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111177777777777777777777 444444444,,,,,,,,,888888888888888888000000000 33333333333333333,,,,,,,,,,,,,,,,,444444444444444440000000000000000055555555555555555 1111111,,,,,,,333333399999996666666 ----------111111111144444444440000000000 555555577777779999999 ----------2222222222,,,,,,,,,,000000000022222222228888888888 555555500000000000000 888888899999995555555 111111122222229999999 88888887777777 1974 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666600000000000000000000 555555555,,,,,,,,,888888888333333333000000000 44444444444444444,,,,,,,,,,,,,,,,,555555555555555555555555555555555500000000000000000 444444455555550000000 ----------1111111111,,,,,,,,,,333333333311111111114444444444 777777799999997777777 ----------666666666699999999997777777777 444444433333334444444 1111111,,,,,,,666666677777775555555 111111199999996666666 222222200000005555555 1975 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,555555555555555555556666666666666666666622222222222222222222 555555555,,,,,,,,,555555555999999999999999999 66666666666666666,,,,,,,,,,,,,,,,,444444444444444443333333333333333311111111111111111 3333333,,,,,,,888888888888886666666 ----------3333333333,,,,,,,,,,555555555555555555553333333333 2222222,,,,,,,888888866666663333333 4444444444,,,,,,,,,,222222222277777777775555555555 1111111,,,,,,,555555511111110000000 -------4444444,,,,,,,666666699999997777777 1111111,,,,,,,000000077777770000000 888888844444448888888 1975 Oct 11111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222226666666666666666666633333333333333333333 777777777666666666666666666 444444444444444440000000000000000000000000000000000 44444444448888888888 ----------44444444448888888888 NNNooovvv 999999999999999999998888888888888888888833333333333333333333 666666666555555555222222222 999999999999999991111111111111111199999999999999999 44444443333333 ----------222222222266666666665555555555 222222266666667777777 ----------111111111133333333335555555555 111111155555555555555 330000 222222244444444444444 110000 DDDeeeccc 11111111111111111111,,,,,,,,,,,,,,,,,,,,999999999999999999998888888888888888888844444444444444444444 222222222222222220000000000000000000000000000000000 33333331111111 22222222228888888888 111111111111118888888 ----------22222222228888888888 77777778888888 77777771111111 ]]]999777666 jjjaaannn 222222222222222222224444444444444444444433333333333333333333 11,,223399 666666666666666660000000000000000000000000000000000 33333337777777 111111111111110000000 111111100000000000000 77777773333333 FFFFFFFFFeeeeeeeeebbbbbbbbb 11111111111111111111,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666644444444444444444444 333333333333333338888888888888888899999999999999999 44444440000000 ----------1111111111,,,,,,,,,,111111111155555555553333333333 111111177777777777777 111111111177777777774444444444 66666663333333 996688 55555559999999 220000 MMMMMMMMMaaaaaaaaarrrrrrrrr 11111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000006666666666666666666699999999999999999999 555555111111111111 666666666666666660000000000000000000000000000000000 33333338888888 333333333344444444449999999999 111111188888885555555 111000777 ----------333333333344444444449999999999 66666663333333 22222224444444 AAAAAAAAAppppppppprrrrrrrrr.................. .................. 22222222222222222222,,,,,,,,,,,,,,,,,,,,888888888888888888886666666666666666666699999999999999999999 111111,,,,,,333333555555555555 11111111111111111,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000 22222227777777 77777777772222222222 222222244444449999999 777000 ----------77777777772222222222 55555551111111 33333338888888 MMMMMMMMMaaaaaaaaayyyyyyyyy......... .................. 11111111111111111111,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333355555555555555555555 111111,,,,,,222222222222444444 444444444444444440000000000000000033333333333333333 2222222222,,,,,,,,,,666666666600000000002222222222 ----------3333333333,,,,,,,,,,111111111100000000005555555555 441188 8855 JJJJJJJJJuuuuuuuuunnnnnnnnneeeeeeeee........................... 22222222222222222222,,,,,,,,,,,,,,,,,,,,777777777777777777771111111111111111111199999999999999999999 555555222222444444 333333333333333335555555555555555500000000000000000 8833 ----------444444444444444444449999999999 661177 444444444444444444449999999999 119955 9966 JJJJJJJJJuuuuuuuuulllllllllyyyyyyyyy.................................... 222222222222222222227777777777777777777799999999999999999999 111111,,,,,,444444111111333333 888888888888888887777777777777777755555555555555555 55555555559999999999 ----------55555555559999999999 AAAAAAAAAuuuuuuuuuggggggggg 11111111111111111111,,,,,,,,,,,,,,,,,,,,111111111111111111110000000000000000000000000000000000000000 444222 ----------1111111111,,,,,,,,,,555555555522222222225555555555 333000111 ----------77777777779999999999 777222 11,,335544 666555 225500 SSSSSSSSSeeeeeeeeepppppppppttttttttt.................................... 11111111111111111111,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222255555555555555555555 117711 111222999 ----------222222222288888888885555555555 555888000 222222222288888888885555555555 222777222 999555 OOOOOOOOOcccccccccttttttttt 666666666666666666661111111111111111111188888888888888888888 220000 66666666666666666666 ----------66666666666666666666 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur- Net Period Govt, chase change • securi- agree- Repur- Gross Gross Gross ties 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 1 1 9 9 7 7 2 3 1 18 0 , ,1 1 4 2 2 1 4 6 , ,4 8 6 8 7 0 2 4 , , 8 5 6 9 2 2 2 4 3 5 , , 3 7 1 8 9 0 4 2 5 3, , 3 7 1 8 9 0 3 7 1 4 , , 1 7 0 5 3 5 3 7 2 4 , , 2 7 2 9 8 5 8 - , 3 6 1 1 2 0 1,1 8 9 6 7 5 2 3 3 7 9 0 -828% - -2 9 -1 -3 4 6 5 9,2 2 2 7 7 2 197 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—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 A Se u p g t . . . . , . 2 1 , , 2 5 0 79 2 171 1 1 9 6 , , 8 3 2 8 8 9 1 1 9 6 , , 5 1 6 8 3 0 2 2 4 6, , 6 1 4 0 1 8 2 2 3 4 , , 4 6 7 5 7 5 2 3 , , 3 3 9 5 7 7 1 9 8 5 2 - - 5 6 5 8 2 8 2 5 0 2 3 , , 5 5 8 7 7 7 Oct... 618 200 23,289 24,501 16,603 18,821 -588 -244 -9 -492 -1,332 1 Before Nov. 1973 BULLETIN, included matched sale-purchase trans- 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers acceptances. 2 Includes special certificates acquired when the Treasury borrows directly from the Federal Reserve, as follows (millions of dollars): June NOTE.—Sales, redemptions, and negative figures reduce System hold- 1971, 955; Sept. 1972, 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, ings; all other figures increase such holdings. Details may not add to 131; Mar. 1975, 1,560; Aug. 1975, 1,989. totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 FEDERAL RESERVE BANKS • DECEMBER 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 1975 Nov. 24 Nov. 17 Nov. 10 Nov. 3 Oct. 27 Nov. 30 Oct. 31 Assets Gold certificate account 11,598 11,598 11,598 11,598 11,598 11,598 11,598 Special Drawing Rights certificate account. 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Cash 364 367 361 365 374 362 381 Loans: Member bank borrowings 82 59 135 1,139 568 39 44 Other Acceptances: Bought outright 199 196 198 197 196 188 197 Held under repurchase agreements. 345 248 440 30 140 Federal agency obligations: Bought outright 6,871 6,757 6,757 6,757 6,757 6,857 6,757 Held under repurchase agreements. 158 34 465 51 79 U.S. Govt, securities: Bought outright: Bills 38,402 39,157 36,668 38,492 39,266 37,992 39,875 Certificates—Special. Other.. Notes 46,897 46,897 46,897 46,897 46,897 47,089 46,897 Bonds 6,506 6,506 6,506 6,506 6,506 6,579 6,506 Total bought outright l 91,805 92,560 90,071 91,895 92,669 91,660 93,278 Held under repurchase agreements. 3,769 2,702 4,896 1,549 2,561 Total U.S. Govt, securities. 95,574 92,560 92,773 96,791 94,218 91,660 95,839 Total loans and securities 103,229 99,572 100,145 105,789 101,820 98,744 103,056 Cash items in process of collection. .. *9,113 p 10,642 7,819 8,769 7,659 * 8,847 6,731 Bank premises 364 361 360 358 358 364 358 Operating equipment 27 26 26 26 26 28 26 Other assets: Denominated in foreign currencies. 543 539 493 402 395 546 401 All other 2,206 2,184 2,964 3,167 2,940 2,423 2,985 Total assets. * 128,644 p 126,489 124,966 131,674 126,370 P 124,112 126,736 Liabilities F.R. notes 82,748 82,335 82,149 81,127 80,528 83,055 80,389 Deposits: Member bank reserves p 28,974 P 26,858 27,118 31,614 26,572 P 23,300 26,461 U.S. Treasury—General account. 6,965 6,758 6,472 8,403 9,448 6,766 10,238 Foreign 219 307 199 296 251 305 362 Other: All other 2 911 848 933 967 954 1,022 953 Total deposits. p 37,069 P 34,771 34,722 41,280 37,225 * 31,393 38,014 Deferred availability cash items 5,397 6,134 4,938 6,150 5,135 6,150 4,718 Other liabilities and accrued dividends. 1,080 1,017 1,038 1,118 1,094 1,065 1,165 Total liabilities P 126,294 p 124,257 122,847 129,675 123,982 p 121,663 124,286 Capital accounts Capital paid in 974 973 973 973 973 974 974 Surplus 929 929 929 929 929 929 929 Other capital accounts. 447 330 217 97 486 546 547 Total liabilities and capital accounts. p 128,644 '126,489 124,966 131,674 126,370 * 124,112 126,736 Marketable U.S. Govt, securities held in custody for foreign and international accounts 47,658 48,322 47,433 48,972 49,748 48,000 47,497 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 87,356 86,852 86,440 85,937 85,815 87,650 85,907 79,975 Collateral held against notes outstanding: Gold certificate account 11,596 11,596 11,596 11,596 11,596 11,596 11,595 11,596 Special Drawing Rights certificate account. 643 643 643 619 619 643 619 302 Acceptances U.S. Govt, securities 76,850 76,495 76,020 75,730 75,680 76,850 75,680 69,980 Total collateral. 89,089 88,734 88,259 87,945 87,895 89,089 87,894 81,878 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

DECEMBER 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 Nov. 24 Nov. 17 Nov. 10 Nov. 3 Oct. 27 Nov. 30 Oct. 31 Loans—Total 82 59 137 1,140 569 39 45 Within 15 days. .. 75 52 127 1,123' 555 33 31 16-90 days 7 7 10 17 14 6 14 91 days to 1 year.. Acceptances—Total. 544 196 446 637 226 188 337 Within 15 days . .. 385 34 272 471 57 27 170 16-90 days 100 102 112 98 103 99 99 91 days to 1 year. 59 60 62 68 66 62 68 U.S. Govt, securities—Total. 95,574 92,560 92,773 96,791 94,218 91,660 95,839 Within 15 days1 7,056 4,289 6,791 9,128 4,036 2,322 5,831 16-90 days 19,208 18,971 15,067 15,951 18,710 19,683 18,395 91 days to 1 year 25,878 25,868 26,375 27,172 26,866 25,914 27,007 1-5 years 29,862 29,862 29,493 29,493 29,559 30,036 29,559 5-10 years 8,814 8,814 9,981 9,981 9,981 8,876 9,981 Over 10 years 4,756 4.756 5,066 5,066 5,066 4,829 5,066 Federal agency obligations—Total. 7,029 6.757 6,791 7,222 6,808 6,857 6,836 Within 15 days1 340 182 35 465 72 206 100 16-90 days 232 232 414 414 374 167 374 91 days to 1 year 1,001 1,002 1,001 1,002 1,021 995 1,021 1-5 years 3,275 3,234 3,234 3,234 3,234 3,370 3,234 5-10 years 1,443 1,406 1,406 1,406 1,406 1,381 1,406 Over 10 years 738 701 701 701 701 738 701 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 233 (excl. other 233 (excl. SMSA's N.Y. 6 others2 N.Y.) SMSA's SMSA's N.Y. 6 others2 N.Y.) 1975—Oct.. 24,137.1 11,801.5 4,921.3 12,335.6 7,414.3 134.0 364.0 118.7 83.5 Nov. 24.067.7 11,529.9 4.937.3 12,537.8 7,600.5 134.0 360.8 119.5 84.9 Dec. 23,565.1 10,970.9 4.932.5 12.594.2 7,661.8 131.0 351.8 118.4 84.7 1976—Jan.. 23,845.0 517.7 4.789.0 12.327.3 7.538.3 132.4 366.0 115.4 82.9 Feb. 25,528.4 212.0 5.324.6 13.316.4 7.991.8 140.9 375.4 128.1 89.6 Mar. 26,474.4 629.6 5,560.9 13.844.8 8.283.9 144.6 377.5 131 .4 92.5 Apr. 25.792.8 482.8 5.302.4 13.310.0 8,007.7 140.3 374.9 124.6 88.4 May 25.490.9 179.0 5.327.1 13.311.9 7,984.7 139.3 380.2 126.9 88.2 June 26,625.6 844.3 5.561.2 13,781.3 8,220.1 145.0 400.8 131.9 90.9 July. 27,102.3 354.2 5.497.7 13.748.1 8.250.4 145.9 405.0 128.7 89.9 Aug. 27.875.0 221.1 5.935.8 14,653.9 8,718.1 148.6 400.6 138.2 94.8 Sept. '27,250.2 727.9 r5,857.3 14,522.3 r8,665.0 145.8 393.7 136.1 94.0 Oct.. 27.416.1 522.0 5,443.2 13,894.1 8,450.9 146.4 416.2 126.4 89.8 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 • DECEMBER 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi M-2 Mz Mi M5 Mi Mi Mz Mi Mh 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—Oct.. 293.4 655.8 1,075.8 736.7 1,156.6 292.3 653.2 1,070.4 736.9 1,154.1 Nov. 295.6 662.1 1,086.5 743.9 1,168.3 297.4 660.2 1,080.6 743.0 1,163.5 Dec. 294.8 664.3 1,092.9 747.2 1,175.8 303.2 669.3 1,094.6 752.8 1,178.1 1976—Jan.. 295.1 670.0 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 rl,195.3 778.8 rl,257.7 304.4 712.8 1,189.2 r778.0 1,254.5 Oct.. 309.8 725.8 1,211.7 787.9 1,273.7 308.7 722.9 1,205.5 787.1 1,269.7 NOTE.—Composition of the money stock measures is as follows: of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). Mi: Averages of daily figures for (1) demand deposits of commercial Mi'. Mi plus large negotiable CD's. banks other than domestic interbank and U.S. Govt., less cash items in M6: 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 Mh, 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 Mi\ 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 Mz: 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.... Period 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 Total4 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—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 r438.0 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 r478.9 79.0 159.1 63.2 225.4 65.3 408.4 473.7 476.4 4.9 Oct.. 79.8 230.0 62.0 416.0 478.0 485.9 79.6 161.8 64.1 229.1 64.2 414.2 478.4 482.6 3.8 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

DECEMBER 1976 • BANK RESERVES; BANK CREDIT A13 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 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—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 34.52 34.42 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 Oct 34.49 34.39 34.27 519.6 345.9 170.3 3.4 518.9 346.7 169.5 2.8 528.6 527.9 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 6f 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.. mmmeeennntttsss111 TToottaall11 ll ss oo oo aa ll nn dd ss 22 Total l P o l a u n s s TTrr uu ee rr aa yy ss-- OOtthheerr 44 mmmeeennntttsss 111 TToottaall11 ss lloo oo aa lldd nn 22 ss Total l P o l a u n s s TTrr uu ee rr aa yy ss-- OOtthheerr 44 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—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. 25v... 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. 31f. . . 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 f . . . 734.5 500.5 504.7 170.5 173.1 90.0 144.0 732.1 496.7 500.9 170.6 173.2 90.2 145.2 May 26p. . . 737.6 500.6 505.0 170.7 173.4 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. 25p... 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. 29P. . . 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. 27p.. . 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 Nov. 24p... 766.3 521.8 525.6 176.7 179.1 94.3 150.2 766.0 520.6 524.4 176.0 178.4 96.9 148.6 1 Adjusted to exclude domestic commercial interbank loans. As of Oct. 31, 1974, "Total loans and investments" of all commercial 2 Loans sold are those sold outright 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 • DECEMBER 1976 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total Classification by Securities lia- Interbank3 Other Total Num- FRS membership Cash bilities Bor- capital ber and FDIC assets3 and row- ac- of insurance Total Loans capital Total3 Demand ings counts6 banks l U.S. Other ac- De- Treas- 2 counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series7 All commercial banks: 1941—Dec. 31.. 50,746 21,714 21, 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947—Dec. 31 8. 116,284 38,057 69,221 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1960—Dec. 31.. 199,509 117,642 61,003 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 1970—Dec. 319. 461,194 313,334 61,742 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971— Dec. 31.. 516,564 346,930 64,930 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,2Y 13,783 1972—Dec. 31.. 598,808 414,696 67,028 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Dec. 31.. 683,799 494,947 58,277 118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Dec. 31... 744,107 549,183 54,451 128,042 919,552 747,903 43,483 1,496 4,807 267,506 420,611 58,369 63,650 14,465 1975—Nov. 26.. 757,450 532,660 79,400 145,390 123,150 939,310 753,000 34,560 11,160 3,530 257,640 446,110 66,780 68,000 14,624 Dec. 31... 775,794 546,172 84,119 145,503 [33,614 964,918 786,252 41,811 12,020 3,114 278,692 450,615 60,224 69,125 14,633 1976—Jan. 28.., 756,630 527,820 84,770 720 927,140 743,140 32,110 11,540 3,790 245,600 450,100 67,250 68,870 14,611 Feb. 28.. 757,540 528,560 85,420 470 928,540 741,230 31,560 11,370 4,010 242,810 451,480 68,490 69,110 14,624 Mar. 31io, 767,260 534,530 89,260 870 934,440 766,680 37,510 11,860 2,430 256,930 457,950 63,420 70,070 14,628 Apr. 28... 765,550 530,170 90,180 210 926,370 753,150 32,280 10,990 4,120 250,200 455,560 68,480 70,610 14,632 May 26.., 766,760 531,780 90,430 710 927,690 754,070 33,100 10,530 3,520 247,550 459,370 66,160 71,400 14,637 June 30.. 779,820 543,740 90,800 170 957,130 782,850 38,270 10,580 4,660 266,450 462,890 65,870 72,090 14,636 July 28... 772,540 537,550 89,490 530 934,250 761,180 33,100 10,160 3,540 250,590 463,790 66,790 72,190 14,635 Aug. 25... 782,080 544,460 91,800 110 940,510 759,400 33,380 9,650 3,710 247,400 465,260 72,250 72,550 14,649 Sept. 29.., 790,400 550,820 92,630 660 960,030 773,320 35,180 9,520 5,840 252,890 469,890 77,520 73,140 14,655 Oct. 27.. 796,900 556,440 93,460147 160 962,640 777,910 34,760 9,140 3,690 258,180 472,140 75,980 73,680 14,659 Nov. 24.. 805,620 560,210 96,860 148 120 982,930 789,120 39,940 8,990 3,310 260,810 476,070 83,580 74,120 14,659 Members of F.R. System: 1941—Dec. 31 .. 43,521 18,021 ,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31 ... 97,846 32,628 ,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31.. 165,619 99,933 ,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 319., 365,940 253,936 ,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5.767 1971—Dec. 31.. 405,087 277,717 ,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972—Dec. 31.., 465,788 329,548 ,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973—Dec. 31.. 528,124 391,032 ,494 95,598 100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 1974—Dec. 31... 568,532 429,537 ,921 100,073 106,995 715,615 575,563 41,062 10,052 3,183 204,203 317,064 52,850 48,240 5,780 1975—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 51,199 5,791 Dec. 31.. 578,560 416,366 61,519 100,675 108,489 733.635 590,776 38,569 10,015 2,255 210,824 329,113 53,646 52,078 5,788 1976—Jan. 28... 563,387 402,020 61,704 663 93,808 705,093 556,274 29,712 9,529 2,908 185,773 328,352 61,022 52,167 5,765 Feb. 28... 562,940 401,731 61,869 340 91,914 704,357 552,942 29,145 9,357 2,977 183,458 328,005 62,051 52,300 5.768 Mar. 3U0, 569,913 406,148 64,636 1291 00,455 710,228 573,878 34,934 9,848 1,769 194,932 332,395 57,470) 53,191 5,778 Apr. 28... 567,384 402,147 64,892 345 93,743 702,130 561,110 29,923 8,978 281 189,361 329,567 62,002 53,753 5.775 May 26.., 567,050 402,319 65,037 694 92,323 702,269 561,220 30,675 8,517 701 187,038 332,289 59,588 54,450 5,777 June 30... 577,509 411,707 65,626 176 104,036 726,826 585,345 35,595 8,570 669 202,131 335,380 59,302 54,987 5.776 July 28.., 570,060 405,282 64,442 336 92,277 706,225 565,107 30,720 8,150 720 188,636 334,881 60,343 55,051 5,762 Aug. 25.., 578,200 410,790 66,747 663 89,366 710,710 562,360 30,943 7,642 793 185,915 335,067 65,878 55,372 5,771 Sept. 29.. , 583,553 415,076 66,973 504 98,897 726,823 573,939 32,659 7,521 349 191,01 338,399 70,636 55,740 r5,773 Oct. 27... 588,645 419,479 67,744 422 94,911 727.636 576,067 32.213 7,130 2 ,'859 194,650 339,215 69,119 56,199 r5,768 Nov. 24.. 595,320 421,921 70,768 ',631 102,907 744,846 584,782 37.214 6,984 2,415 189,052 349,117 76,384 56,552 5,768 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 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 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 3,106 261,903 429,844 59,310 65,986 Dec. 31... 762,400 535,170 83,629 143,602 128,256 944,654 775,209 40,259 10,733 3,108 276,384 444,725 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 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 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 1,723 152,576 249,446 41,954 37,483 Dec. 31... 441,135 315,738 46,799 78,598 78,026 553,285 447,590 22,305 7,302 1,788 159,840 256,355 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

DECEMBER 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— Classification by Securities Total Interbank3 Other Total Num- FRS membership Cash lia- Bor- capital ber and FDIC assets3 bilities row- ac- of insurance Total Loans U.S. and Total3 Demand ings counts6 banks l Treas- Other capital De- Time ury 2 ac- mand Time 5 counts4 U.S. Other Govt. Call date series Insured banks (cont.): State member: 1941—Dec. 31... 15,950 6,295 7,500 2,155 8,145 24,i 22,259 3,739 621 13,874 4,025 2,246 1,502 1947—Dec. 31... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1960—Dec. 31... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 319.. 94,760 66,963 11,196 16,600 25.472 125,460 101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 1972—Dec. 31... 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Dec. 31... 130,240 97,828 10,532 21,880 29,387 166,780 131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—Dec. 31... 140,373 108,346 9,846 22,181 30.473 181,683 144,799 17,565 3,301 746 49,807 73,380 13,247 12,425 1,074 1975—June 30.. 134,759 100,968 12,004 21,787 31,466 179,787 141,995 18,751 2,771 443 48,621 r71,409 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 r72,981 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 60,706 108,989 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,"" 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. 31 8.. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 392 478 4 325 783 I960—Dec. 31... 1,498 550 535 413 314 1,883 1,443 159 132 846 293 14 358 352 1970—Dec. 319.. 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 1973—Dec. 31... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 1.836 2,215 1,463 524 207 1974—Dec. 31... 9,981 8,461 319 1,201 2,667 13,616 6,627 897 803 2,062 2,857 2,382 611 249 1975—June 30.. 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 2,124 r3,883 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 r6,167 3,449 651 261 Total nonmember: 1941—Dec. 31... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 I960—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... 11,674 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 62,830 112,872 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 67,868 121,556 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 • DECEMBER 1976 ASSETS BY CLASS OF BANK, MARCH 31, 1976 (Assets and liabilities are shown in millions of dollars.) Member banks1 Insured commercial Large banks banks 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 Currency and coin 11,216 8,440 714 158 2,845 4,723 Reserves with F.R. Banks 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 Other balances with banks in United States 6,586 4,267 40 16 1,593 2,618 Balances with banks in foreign countries 2,910 2,530 169 41 1,465 856 Cash items in process of collection 42,119 40,763 14,010 1,803 18,283 6,666 Total securities held—Book value. . 229,529 162,998 17,581 7,459 53,826 84,131 U.S. Treasury Other U.S. Govt, agencies States and political subdivisions . All other securities Unclassified total Trading-account securities 5,664 5,584 2,364 772 2,189 259 U.S. Treasury Other U.S. Govt, agencies States and political subdivisions . All other trading acct. securities . Unclassified Bank investment portfolios 223,866 157,414 15,218 6,687 51,637 83,872 U.S. Treasury 85,372 61.367 7,315 3,137 20,840 30,074 Other U.S. Govt, agencies 32,946 20,181 873 324 5,869 13,115 States and political subdivisions. 100,143 72,384 6,666 3,083 24,090 38,545 All other portfolio securities.... 5,404 3,482 363 143 838 2,138 F.R. stock and corporate stock 1,506 1,259 243 82 457 478 Federal funds sold and securities resale agreement. 36,012 27,144 1,684 1,484 13,321 10,655 Commercial banks 31,447 22,809 979 1,110 10,490 10,231 Brokers and dealers 3,200 3,019 352 344 2,008 314 Others 1,365 1,316 354 30 824 109 Other loans, gross 491,706 379,905 68,332 20,815 143,842 146,916 Less: Unearned income on loans 11,218 7,829 407 83 2,741 4,599 Reserves for loan loss 6,063 4,858 1,081 331 1,812 1,634 Other loans, net 474,425 367,217 66,844 20,401 139,289 140,683 Gross other loans, by category: Real estate loans—Total 138,289 98,570 8,778 2,007 36,408 51,377 Construction and land development. 15,933 13,096 3,203 502 6,Ml 3,214 Secured by farmland 6,111 2,644 6 15 287 2,336 Secured by residential 78,348 56,662 3,954 923 20,954 30,831 1- to 4-family residences 73.858 53,355 3,509 827 . 19,709 29,309 FHA insured 8,212 7,109 560 52 3,888 2,608 Conventional 65,646 46,246 2,949 775 15,821 26,700 Multifamily residences 4,489 3,308 445 96 1,245 1,522 FHA insured 431 365 126 25 100 113 Conventional 4,058 2,943 318 71 1,144 1,409 Secured by other properties 37,897 26,167 1,615 567 8,990 14,996 Loans to financial institution 37,463 35,575 13,065 4,773 14,762 2,976 To real estate investment trusts 10,381 10,072 3,877 1,536 3,930 728 To domestic commercial banks 3,069 2,407 799 111 1,066 431 To banks in foreign countries 5,687 5,560 2,526 327 2,299 408 To other depository institutions 2,408 2,281 601 15 1,495 170 To other financial institutions 15,918 15,254 5,262 2,783 5,971 1,238 Loans to security brokers and dealers... 6,125 6,017 4,085 627 1,182 122 Other loans to purch./carry securities. . . 3,868 3,238 405 315 1,619 900 Loans to farmers—except real estate 20,433 11,379 78 170 2,607 8,525 Commercial and industrial loans 167,013 138,858 34,725 10,642 54,574 38,917 Loans to individuals—Total 105,656 74,915 4,846 1,604 27,305 41,220 Instalment loans 83.122 58,675 3,291 903 21,704 32,777 Passenger automobiles 34,120 22,443 489 157 6,895 14,902 Residential-repair/modernize 5,853 4,175 261 35 1,739 2,140 Credit cards and related plans 11,922 10,519 1,080 511 6,032 2,mi Charge-account credit cards 9,216 8,270 772 481 4,828 2,190 Check and revolving credit plans. 2,707 2,249 308 30 1,204 707 Other retail consumer goods 15.123 10,491 183 92 3,836 6,380 Mobile homes 8,628 6,187 107 36 2,279 3,765 Other 6,494 4,304 76 56 1,557 2,615 Other instalment loans 16,103 11,046 1,278 108 3,201 6,458 Single-payment loans to individuals... 22,535 16,300 1,555 701 5,601 8,443 All other loans 12.859 11,293 2,350 678 5,386 2,879 Total loans and securities, net 741,472 558,618 86,352 29,426 206,893 235,947 Direct lease financing 4,200 3,988 636 129 2,619 604 Fixed assets—Buildings, furniture, real estate. 17,833 13.368 1,454 560 5,438 5,916 Investment in unconsolidated subsidiaries 1,982 1,958 810 152 925 71 Customer acceptances outstanding 9,731 9,440 4,814 350 3,992 284 Other assets 25,301 22,440 7,940 1,677 9,061 3,761 Total assets. 919,546 711,585 128,347 36,481 268,246 278,512 For notes see opposite page. N.B. Some figures on this page have been changed slightly due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 1 Insured Non- Liabilities and capital commercial Large banks member Accounts 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 Mutual savings banks 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 3333,,220000 13,466 78,373 88,402 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 U.S. Government 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 2,926 1,988 161 23 418 1,385 938 All other 69 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 Commercial banks 35,330 34,269 6,625 5,261 18,388 3,995 1,061 Brokers and dealers 5,609 5,409 751 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 Other liabilities 15,212 13,223 4,266 897 5,164 2,897 2,065 Total liabilities 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 Equity capital 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 Undivided profits 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 Demand deposits adjusted3 220,752 160,512 24,904 5,413 54,763 75,432 60,241 Average for last 15 or 30 days: Average cash and due from bank 117,460 101,147 26,918 4,255 3388,,993355 31,039 1166,,331166 Average Federal funds sold and securities purchased under agreements to resell 36,716 27,406 1,767 1,379 12,856 11,404 9,340 486,101 371,737 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 Average total deposits 751,437 567,916 91,522 25,125 207,676 243,593 118833,,552200 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 Time deposits of $100,000 or more M43,154 r120,398 r29,959 rl1,210 '50,471 '28,758 '22,756 Certificates of deposit 119,853 99,898 24,706 9,051 40,992 25,148 19,955 Other time deposits 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 • DECEMBER 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 culcial Treas- se- and tural Pers. banks ury curi- indus- U.S. U.S. and se- ties trial Treas- Other Treas- Other sales curi- ury sees. ury sees. finance ties sees. sees. COS., etc. Large banks— Total 1975 Nov. 5 395,791 22,854 17,184 3,781 650 1,239 275,043 118,865 3,577 1,829 3,908 2,269 8,327 12 393,645 21,132 16,168 3,183 744 1,037 274,744 119,102 3,580 838 4,307 2,281 8,566 1 9 390,445 18,384 14,885 1,836 845 818 274,130 118,756 3,563 1,134 4,292 2,286 8,383 26 390,879 17,349 14,073 1,845 897 534 274,986 119,318 3,537 835 4,663 2,302 8,560 1976 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 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 2 0 397,777 19,723 16,278 2,098 480 867 273,371 113,302 4,255 1,685 7,379 2.525 7,053 27 396,789 19,533 15,996 1,958 413 1,166 272,950 113,679 4,284 1,520 7,434 2,539 6,787 Nov. 3 401,548 22,179 18,890 1,794 541 954 274,739 114,619 4,276 1,609 7,116 2,523 7,010 10 400,694 22,450 17,666 3,053 551 1,180 273,367 114,310 4,273 1,198 7,063 2,520 6,870 17 404,376 20,729 16,777 2,584 493 875 275,306 114,702 4,265 1,801 7,233 2,537 6,903 24 402,326 20,106 16,432 2,195 604 875 274,257 115,008 4,258 1,208 6,855 2,527 6,894 New York City 1975 Nov. 5 91,674 1,808 1,011 359 438 71,367 37,152 107 1,553 2,548 401 2,844 12 91,148 2,091 1,554 67 470 71,055 37,361 107 786 2,749 400 3,013 1 9 90,727 1,356 915 59 382 70,652 37,143 107 1,069 2,803 401 2,833 26 92,353 2,236 1,965 127 12 132 70,901 37,332 107 760 3,075 400 3,001 1976 Oct. 6 87,857 1,273 909 172 156 67,332 33,027 2,082 4,040 376 2,246 13 87,818 1,238 690 275 241 66,654 33,185 1,122 4,084 372 2,238 2 0 88,787 1,972 1,398 375 167 67,309 33,414 1,465 4,135 373 2,476 27 88,441 2,379 1,400 552 410 66,834 33,520 1,346 4,167 369 2,339 Nov. 3 89,954 2,767 2,204 243 304 67,469 33,862 1,387 3,908 371 2,448 10 88,083 1,552 723 542 260 66,732 33,805 967 3,952 367 2,321 17 90,925 1,722 987 490 226 68,045 33,974 1,584 4,138 369 2,355 24. 89,862 1,994 1,286 438 221 66,996 34,254 978 3,734 371 2,310 Outside New York City 1975 Nov. 5 304,117 21,046 16,173 3,422 650 801 203,676 81,713 3,470 276 1,360 1,868 5,483 12 302,497 19,041 14,614 3,116 744 567 203,689 81,741 3,473 52 1,558 1,881 5,553 1 9 299,718 17,028 13,970 1,777 845 436 203,478 81,613 3,456 65 1,489 1,885 5,550 26 298,526 15,113 12,108 1,718 885 402 204,085 81,986 3,430 75 1,588 1,902 5,559 1976 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 13 309,886 19,814 17,067 1,548 504 695 205,429 79,312 4.158 168 2,992 2,124 4,442 2 27 0 3 3 0 0 8 8 , , 3 9 4 9 8 0 1 1 7 7 , , 7 1 5 5 1 4 1 14 4 , , 5 8 9 8 6 0 1 1 , , 7 4 2 0 3 6 4 3 4 9 8 6 7 75 0 6 0 2 20 0 6 6 , ,1 0 1 62 6 7 8 9 0 , , 8 15 8 9 8 4 4 , , 1 1 6 9 5 3 2 1 2 74 0 3 3, , 2 2 6 4 7 4 2 2 , , 1 1 7 5 0 2 4 4 , , 5 4 7 4 7 8 Nov. 3 311,594 19,412 16,686 1,551 525 650 207,270 80,757 4,182 222 3,208 2.152 4,562 10 312,611 20,898 16,943 2,511 524 920 206,635 80,505 4,178 231 3,111 2.153 4,549 17 313,451 19,007 15,790 2,094 474 649 207,261 80,728 4,167 217 3,095 2,168 4,548 24 312,464 18,112 15,146 1,757 555 654 .07,261 80,754 4.159 230 3,121 2,156 4,584 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

DECEMBER 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 CCoonn-- For- reserve political securities ssuummeerr eign All and un- subdivisions iinnssttaall-- govts.3 other earned Total Bills Total Do- For- mmeenntt income mes- eign on Within 1 to After tic loans1 1 yr. 5 yrs. 5 yrs. Tax Certif. war- All of rants4 other partici- All pation 5 other6 Large banks— Total 1975 2,324 6,013 35,148 1,495 18,438 5,835 36,970 9,693 5,832 18,560 2,885 60,924 6,792 39,881 2,314 11,937 Nov. 5 2,370 5,781 35,176 1,461 18,463 5,825 36,554 9,368 5,771 18,621 2,794 61,215 6,938 40,070 2,323 11,884 12 2,287 5,614 35,174 1,451 18,353 5,822 37,202 9,990 5,875 18,105 3,232 60,729 6,852 39,826 2,284 11,767 19 2,435 5,714 35,273 1,501 18,128 5,794 37,637 10,609 6,192 17,749 3,087 60,907 6,889 39,876 2,287 11,855 26 1976 1,810 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 2,223 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 2,073 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 1,757 5,890 38,078 1,925 17,839 8,611 44,231 11,208 6,085 22,416 4,522 60,075 6,400 39,961 2,343 11,371 27 1,779 6,079 38,101 1,986 18,287 8,629 44,458 10,826 6,360 22,874 4,398 60,172 6,431 39,921 2,329 11,491 Nov. 3 1,716 5,983 38,140 1,997 18,052 8,694 44,617 11,056 6,499 22,474 4,588 60,260 6,447 40,154 2,297 11,362 10 1,922 6,086 38,187 1,926 18,390 8,715 47,356 11,770 6,431 24,375 4,780 60,985 6,997 40,206 2,256 11,526 17 1,893 6,042 38,285 1,909 18,236 8,773 46,967 10,940 6,450 24,907 4,670 60,996 6,730 40,229 2,326 11,711 24 New York City 1975 911 2,695 3,582 575 4,221 1,752 8,850 2,346 854 4,944 706 9,649 1,455 6,014 178 2,002 Nov. 5 926 2,477 3,588 547 4,289 1,752 8,141 1,826 830 4,810 675 9,861 1,557 6,161 178 1,965 12 878 2,351 3,586 519 4,151 1,757 9,009 2,451 837 4,760 961 9,710 1,505 6,069 175 1,961 19 898 2,419 3,608 568 4,013 1,746 9,461 2,908 900 4,768 885 9,755 1,532 6,008 175 2,040 26 1976 770 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. 6 826 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 13 849 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 20 623 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 27 654 2,723 3,962 608 3,768 1,658 10,453 3,025 784 5,499 1,145 9,265 1,397 6,046 249 1,573 Nov. 3 670 2,643 3,982 630 3,754 1,692 10,491 3,148 799 5,101 1,443 9,308 1,369 6,128 239 1,572 10 797 2,718 4,003 556 3,950 1,704 11,741 3,703 813 5,881 1,344 9,417 1,571 6,032 233 1,581 17 754 2,738 4,007 511 3,833 1,726 11,445 3,319 840 6,094 1,192 9,427 1,413 6,089 234 1,691 24 Outside New York City 1975 1,413 3,318 31,566 920 14,217 4,083 28,120 7,347 4,978 13,616 2,179 51,275 5,337 33.867 2,136 9,935 Nov. 5 1,444 3,304 31,588 914 14,174 4,073 28,413 7,542 4,941 13,811 2,119 51,354 5,381 33,909 2,145 9,919 12 1,409 3,263 31,588 932 14,202 4,065 28,193 7,539 5,038 13,345 2,271 51,019 5,347 33,757 2,109 9,806 19 1,537 3,295 31,665 933 14,115 4,048 28,176 7,701 5,292 12,981 2,202 51,152 5,357 33.868 2,112 9,815 26 1976 1,040 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 1,397 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 1,224 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 1,134 3,335 34,121 1,370 14,202 6,975 34,188 8,087 5,296 17,445 3,360 50,890 5,024 33,973 2,101 9,792 27 1,125 3,356 34,139 1,378 14,519 6,971 34,005 7,801 5,576 17,375 3,253 50,907 5,034 33,875 2,080 9,918 Nov. 3 1,046 3,340 34,158 1,367 14,298 7,002 34,126 7,908 5,700 17,373 3,145 50,952 5,078 34,026 2,058 9,790 10 1,125 3,368 34,184 1,370 14,440 7,011 35,615 8,067 5,618 18,494 3,436 51.568 5,426 34,174 2,023 9,945 17 1,139 3,304 34,278 1,398 14,403 7,047 35,522 7,621 5,610 18,813 3,478 51.569 5,317 34,140 2,092 10,020 24 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 • DECEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits Cash Bal- Investitems Re- ances ments Total in serves rency with in sub- Other assets/ Domestic Wednesday process with and do- sidiar- assets total States interbank of F.R. mestic ies not liabil- and collec- Banks banks consol- ities1 polittion idated ical U.S. sub- Govt. Com- Mutual divi- mer- savsions cial ings Large banks— Total 1975 Nov. 5 37,380 18,768 4,427 14,329 1,812 38,750 511,257 173,801 122,255 6,477 2,285 29,171 12 41,788 23,703 5,049 13,460 1,820 40,124 519,589 175,539 126,200 6,260 1,386 27,804 1 9 33,050 21,578 5,166 11,496 1,836 38,999 502,570 161,987 118,420 6,169 2,250 22,752 26 38,904 24,183 4,890 12,233 1,845 38,368 511,302 168,450 121,746 6,397 1,888 24,342 1976 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 13 40,238 24,750 5,523 12,469 2,172 47,009 529,865 173,402 125,603 5,587 1,614 26,111 2 0 35,788 23,011 5,468 12,374 2,347 45,572 522,337 169,020 122,606 5,770 2,544 24,464 27 34,798 19,590 5,716 11,659 2,359 45,728 516,639 167,051 120,949 5,946 2,031 23,603 Nov. 3 41,001 24,984 5,100 13,702 2,401 46,692 535,428 178,639 126,323 6,336 2,676 28,789 10 35,536 20,567 5,299 12,239 2,251 47,172 523,758 166,926 121,182 5,954 1,626 23,777 17 37,084 20,333 5,546 12,453 2,230 45,927 527,949 170,239 124,120 6,240 1,760 24,130 24 37,804 21,325 5,391 13,311 2,253 48,733 531,143 171,812 121,209 6,278 1,481 28,173 New York City 1975 Nov. 5 13,017 7,987 641 5,795 807 12,469 132,390 51,460 28,042 636 346 14,393 12 14,797 7,895 717 6,558 808 13,167 135,090 52,111 28,590 516 207 14,438 1 9 10,842 5,923 764 5,009 813 12,053 126,131 45,128 26,285 402 375 10,729 26 13,834 6,750 710 5,397 810 12,493 132,347 49,235 27,657 443 352 12,176 1976 Oct. 6 13,109 5,439 718 4,962 1,000 16,007 129,092 48,625 26,168 546 397 11,975 13 13,496 8,491 758 5,142 1,011 16,180 132,896 48,398 26,626 542 232 12,060 2 0 12,251 6,408 753 5,213 1,011 14,635 129,058 48,625 27,232 585 430 12,075 27 12,075 5,220 748 4,976 1,011 14,996 127,467 47,791 26,547 555 303 11,175 Nov. 3 12,911 6,012 733 6,484 1.045 15,509 132,648 51,245 27,885 593 354 13,713 10 12,779 7,117 715 5,847 1,055 16,271 131,867 47,704 26,751 529 222 11,321 17 11,989 6,083 765 5.569 1.046 14,972 131,349 47,546 27,434 522 166 10,834 24 12,947 6,139 714 6.570 1,042 16,901 134,175 50,615 25,648 600 153 15,087 Outside New York City 1975 Nov. 5 24,363 10,781 3,786 8,534 1,005 26,281 378,867 122,341 94,213 5,841 1,939 14,778 12 26,991 15,808 4,332 6,902 1,012 26,957 384,499 123,428 97,610 5,744 1,179 13,366 1 9 22,208 15,655 4,402 6,487 1,023 26,946 376,439 116,859 92,135 5,767 1,875 12,023 26 25,070 17,433 4,180 6,836 1,035 25,875 378,955 119,215 94,089 5,954 1,536 12,166 1976 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 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 2 0 23,537 16,603 4,715 7,161 1,336 30,937 393,279 120,395 95,374 5,185 2,114 12,389 27 22.723 14,370 4,968 6,683 1,348 30,732 389,172 119,260 94,402 5,391 1,728 12,428 Nov. 3 28,090 18,972 4,367 7,218 1,356 31,183 402,780 127,394 98,438 5,743 2,322 15,076 10 22,757 13,450 4,584 6,392 1,196 30,901 391,891 119,222 94,431 5,425 1,404 12,456 17 25,095 14,250 4,781 6,884 1,184 30,955 396,600 122,693 96,686 5,718 1,594 13,296 24 24,857 15,186 4,677 6,741 1,211 31,832 396,968 121,197 95,561 5,678 1,328 13,086 For notes see pp. A-18 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • WEEKLY REPORTING BANKS A21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Total Fed- equity eral Other capital IPC funds liabili- and sub. For- Certi- States pur- ties, notes/ Wednesday eign fied and Do- chased, etc. 9 debencom- and polit- mes- For- etc. 8 F.R. tures 10 mer- offi- Total 7 ical tic eign Banks Other cial cers' Sav- Other sub- inter- govts.3 banks checks ings divi- bank sions Large banks— Total 1975 5,013 6,574 224,491 66,454 115,128 22,026 7,792 11,760 48,783 3,773 23,825 36,584 Nov. 5 5,196 6,759 225,284 66,979 115,603 21,729 8,030 11,644 53.905 30 3,853 24,409 36,569 12 4,727 5,947 225,572 67,411 115,633 21,713 8,025 11,479 50,120 45 3,925 24,450 36,471 19 4,946 7,260 226,349 67,636 116,108 21,663 8,077 11,578 51.906 130 4,034 24,034 36,399 26 1976 5,517 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 5,706 6,618 223,223 83,260 105,079 19,568 5,981 7,870 67,572 11 3,949 21,231 40,477 13 5,439 6,058 222,806 83,884 104,499 19,305 5,799 7,868 64,067 40 3,925 21,870 40,609 20 5,587 6,605 222,620 84,299 104,267 19,165 5,686 7,807 60,512 511 3,902 21,512 40,531 27 5,543 6,494 221,646 84,909 103,454 18,661 5,513 7,764 67,837 1,084 3,942 21,527 40,753 Nov. 3 5,860 6,416 222,791 85,359 104,141 18,670 5,493 7,793 67,778 95 4,216 21,112 40,840 10 5,810 6,294 222,843 85,762 104,173 18,512 5,566 7,511 67,443 11 4,825 21,837 40,751 17 5,969 6,261 224,171 86,071 105,339 18,614 5,581 7,257 67,421 30 4,667 22,237 40,805 24 New York City 1975 3,731 2,910 47,488 7,274 26,901 1,565 3,311 7,582 12,990 1,648 8,571 10,233 Nov. 5 3,836 3,170 47,644 7,374 26,972 1,462 3,324 7,685 14,750 1,749 8,580 10,256 12 3,437 2,696 47,247 7,398 26,683 1,476 3,273 7,591 12,977 1,820 8,712 10,247 19 3,601 3,665 47,304 7,407 26,764 1,469 3,192 7,667 14,825 112 1,913 8,726 10,232 26 1976 4,105 4,117 41,011 9,115 22,524 1,252 2,515 4,699 16,778 1,802 9,333 11,543 Oct. 6 4,302 3,201 40,795 9,148 22,299 1,296 2,598 4,616 20,742 1,746 9,651 11,564 13 4,070 2,789 40,770 9,249 22,175 1,290 2,524 4,696 16,456 1,748 9,886 11,573 20 4,273 3,275 40,612 9,263 22,040 1,328 2,502 4,690 15,895 1,823 9,788 11,558 27 4,337 2,611 40,215 9,334 21,731 1,296 2,455 4,640 17,310 895 1,748 9,631 11,604 Nov. 3 4,544 2,870 40,542 9,366 22,095 1,274 2,489 4,563 20,747 95 2,104 9,012 11,663 10 4,470 2,909 40,724 9,429 22,353 1,243 2,574 4,363 19,434 2,297 9,691 11,657 17 4,558 2,797 41,296 9,446 23,082 1,240 2,559 4,198 18,813 2,341 9,456 11,654 24 Outside New York City 1975 1,282 3,664 177,003 59,180 88,227 20,461 4,481 4,178 35,793 2,125 15,254 26,351 Nov. 5 1,360 3,589 177,640 59,605 88,631 20,267 4,706 3,959 39,155 2.104 15,829 26,313 12 1,290 3,251 178,325 60,013 88,950 20,237 4,752 3,888 37,143 2.105 15,738 26,224 19 1,345 3,595 179,045 60,229 89,344 20,194 4,885 3,911 37,081 2,121 15,308 26,167 26 1976 1,412 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 1,404 3,417 182,428 74,112 82,780 18,272 3,383 3,254 46,830 11 2,203 11,580 28,913 13 1,369 3,269 182,036 74,635 82,324 18,015 3,275 3,172 47,611 40 2,177 11,984 29,036 20 1,314 3,330 182,008 75,036 82,227 17,837 3,184 3,117 44,617 511 2,079 11,724 28,973 27 1,206 3,883 181,431 75,575 81,723 17,365 3,058 3,124 50,527 189 2,194 11,896 29,149 Nov. 3 1,316 3,546 182,249 75,993 82,046 17,396 3,004 3,230 47,031 2,112 12,100 29,177 10 1,340 3,385 182,119 76,333 81,820 17,269 2,992 3,148 48,009 2,528 12,146 29,094 17 1,411 3,464 182,875 76,625 82,257 17,374 3,022 3,059 48,608 2,326 12,781 29,151 24 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 • DECEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued (In millions of dollars) Memoranda Large negotiable Savings ownership categories time CD's All other large Total included in time time deposits14 Gross Wednesday Total loans De- and savings deposits13 Individ- Part- liabililoans and mand uals ner- Do- ties of (gross) invest- deposits and ships mestic banks ad- ments ad- non- and govern- All to justedn (gross) justed 12 Issued Issued Issued Issued profit cor- mental other16 their ad- Total to to Total to to orga- pora- units foreign justed11 IPC's others IPC's others niza- tions for branches tions profit15 Large banks—Total 1975 Nov. 5 284,224 382,118 104,965 82,189 55,351 26,838 33,371 18,518 14,853 66,454 3,413 12 283.163 380,932 104,561 82,943 55,879 27,064 33,116 18,536 14,580 66,591 77 251 3,169 1 9 281.164 379,095 103,935 82,798 55,848 26,950 33,004 18,494 14,510 66,825 234 287 3,873 26 281,621 380,165 103,316 83,428 56,338 27,090 32,897 18,441 14,456 66,912 405 250 3,356 1976 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 4,094 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 3,794 2 0 283,351 388,034 106,224 63,563 41,584 21,979 26,819 15,107 11,712 78,609 3,777 1,420 5,449 27 283,341 387,647 106,619 63,087 41,252 21,835 26,213 14,812 11,401 78,834 3,880 1,504 5,233 Nov. 3 284,878 389,508 106,173 62,253 40,827 21,426 26,138 15,019 11,119 79,334 3,942 1,540 4,639 10 285,129 390,006 105,987 62,804 41,334 21,470 26,242 15,185 11,057 79,638 4,045 1,620 3,918 17 286,051 394,392 107,265 62,658 41,357 21,301 25,955 15,099 10,856 79,876 4,088 1,738 5,058 24 284,811 392,774 104,354 63,380 42,298 21,082 25,927 15,019 10,908 80,079 4,195 1,745 5,340 New York City 1975 Nov. 5 73,005 91,504 23,704 29,384 19,023 10,361 7,609 4,795 2,814 7,274 2,313 12 72,418 90,420 22,669 29,672 19,126 10,546 7,407 4,765 2,642 7,290 2,202 1 9 71,972 90,691 23,182 29,292 18,900 10,392 7,346 4,694 2,652 7,303 2,885 26 72,020 91,236 22,873 29,403 18,953 10,450 7,274 4,705 2,569 7,297 2,440 1976 Oct. 6 68,549 87,801 23,144 21,673 14,034 7,639 6,088 4,387 1,701 8,486 340 237 2,988 13 68,018 87,944 22,610 21,591 13,890 7,701 5,923 4,290 1,633 8,526 343 227 2,910 2 0 68,679 88,185 23,869 21,463 13,770 7,693 5,869 4,251 1,618 8,566 352 276 4,273 27 68,826 88,054 24,238 21,399 13,663 7,736 5,801 4,268 1,533 8,582 361 267 4,073 Nov. 3 69,036 88,754 24,267 21,094 13,470 7,624 5,749 4,260 1,489 8,653 371 248 3,614 10 68,853 88,382 23,382 21,407 13,809 7,598 5,804 4,357 1,447 8,697 378 251 2,979 17 69,687 90,845 24,557 21,611 14,083 7,528 5,696 4,316 1,380 8,713 387 281 4,132 24 68,676 89,548 22,428 22,118 14,775 7,343 5,673 4,290 1,383 8,739 403 259 4,232 Outside New York City 1975 Nov. 5 211,219 290,614 81,261 52,805 36,328 16,477 25,762 13,723 12,039 59,180 1,100 12 210,745 290,512 81,892 53,271 36,753 16,518 25,709 13,771 11,938 59,301 74 200 967 1 9 209,192 288,404 80,753 53,506 36,948 16,558 25,658 13,800 11,858 59,522 228 230 988 26 209,601 288,929 80,443 54,025 37,385 16,640 25,623 13,736 11,887 59,615 390 192 916 1976 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 1,106 13 213,739 298,382 82,829 42,983 28,382 14,601 21,049 10,925 10,124 69,704 3,351 1,032 884 2 0 214,672 299,849 82,355 42,100 27,814 14,286 20,950 10,856 10,094 70,043 3,425 1,144 1,176 27 214,515 299,593 82,381 41,688 27,589 14,099 20,412 10,544 9,868 70,252 3,519 1,237 1,160 Nov. 3 215,842 300,754 81,906 41,159 27,357 13,802 20,389 10,759 9,630 70,681 3,571 1,292 1,025 10 216,546 301,624 82,605 41,397 27,525 12,872 20,438 10,828 9,610 70,941 3,667 1,369 939 17 216,364 303,547 82,708 41,047 27,274 13,773 20,259 10,783 9,476 71,163 3,701 1,457 926 24 216,135 303,226 81,926 41,262 27,523 13,739 20,254 10,729 9,525 71,340 3,792 1,486 1,108 A See p. A-18. 11 Exclusive of loans and Federal funds transactions with domestic 1 Loan loss reserve and unearned income on loans had been reported commercial banks. as liability items through Mar. 24, 1976. Since then the item is netted 12 All demand deposits except U.S. Govt, and domestic commercial against total loans, and therefore against total assets also. As a proxy for banks, less cash items in process of collection. this item prior to Mar. 31, 1976, reserves for loans have been used to 13 Certificates of deposit issued in denominations of $100,000 or more. calculate year-ago figures. 14 All other time deposits issued in denominations of $100,000 or more 2 Includes securities purchased under agreements to resell. (not included in large negotiable CD's). 3 Includes official institutions and so forth. 15 Other than commercial banks. 16 Domestic and foreign com- 4 Includes short-term notes and bills. mercial banks, and official international organizations. 5 Federal agencies only. 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

DECEMBER 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 IInndduussttrryy Nov. Nov. Nov. Nov. Oct. 1st 2nd 24 17 10 3 27 Nov. Oct. Sept. III II I half half Durable goods manufacturing: Primary metals 2,097 2,099 2,088 2,075 2,013 84 -49 109 -36 73 -48 25 50 Machinery 4,620 4,611 4,649 4,633 4,592 28 -25 -123 -All -429 -296 -725 -1,668 Transportation equipment 2,187 2,241 2,242 2,271 2,295 -108 -131 33 -252 -315 -52 -367 -465 Other fabricated metal products... 1,718 1,702 1,687 1,669 1,662 56 -24 -14 -56 -144 -87 -231 -750 Other durable goods 33,,337722 33,,440000 33,,444466 33,,440000 3,415 -43 -88 -2 -109 106 53 159 -688 Nondurable goods manufacturing: Food, liquor, and tobacco 3,430 3,417 3,390 3,432 3,384 46 18 -154 3 92 -509 -417 468 Textiles, apparel, and leather 3,261 3,316 3,387 3,404 3,395 -134 -104 -38 178 243 387 630 -532 Petroleum refining 2,505 2,497 2,475 2,651 2,560 -55 40 399 217 79 -138 -59 -116 Chemicals and rubber 2,536 2,538 2,534 2,596 2,627 -91 102 -10 41 -167 -40 -207 -431 Other nondurable goods 11,,994422 11,,889988 11,,990033 11,,882211 11,,884477 95 -34 -24 -34 8 99 107 -415 Mining, including crude petroleum and natural gas 7,244 7,236 7,178 7,221 7,189 55 229 307 229 330 448 778 1,065 Trade: Commodity dealers 1,934 1,793 1,750 1,878 1,823 111 267 126 -212 121 65 186 All Other wholesale 6,221 6,171 6,177 6,152 6,126 95 93 77 189 47 358 405 -181 Retail 6,681 6,649 6,574 6,599 6,505 176 165 82 19 392 137 529 -517 Transportation 5,119 5,194 5,177 5,140 5,123 -4 -61 -103 -496 -157 -231 -388 3 Communication 1,407 1,443 1,448 1,470 1,414 -7 -75 -80 -263 57 -289 -232 -158 Other public utilities 5,509 5,469 5,493 5,500 5,581 -72 -118 -110 -526 113 -885 -772 -198 Construction 4,118 4,129 4,136 4,157 4,177 -59 -14 -82 -51 -177 -706 -883 -436 Services 10,422 10,483 10,413 10,380 10,435 -13 30 33 -174 -305 65 -240 -15 All other domestic loans 7,742 7,764 7,778 7,648 7,556 186 196 163 385 -840 -2,588 -3,428 643 Bankers acceptances 5,435 55,,115500 44,,885588 44,,778899 44,,229944 11,,114411 707 788 629 -337 --11,,665500 -1,987 22,,668855 Foreign commercial and industrial loans 5,653 5,682 5,691 5,743 5,806 -153 37 9 95 304 82 386 757 Total classified loans 95,153 9944,,888822 9944,,447744 9944,,662299 93,819 11,,333344 11,,116611 1,386 -641 -906 --55,,882255 --66,,773311 -422 Comm. paper included in total classified loans1 332 310 22 -16 50 -142 24 7 31 197 Total commercial and industrial loans of large commercial banks 115,008 114,702 114,310 114,619 113,679 1,329 1,366 1,640 -460 r —899 '-6982 -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 Nov. Oct. Sept. Aug. July June May Apr. Mar. 1st 24 27 29 25 28 30 26 28 31 IV half Durable goods manufacturing: Primary metals 1,253 1,191 1,214 1,146 1,191 1,241 1,293 1,283 1,291 -27 -50 -81 34 -131 Machinery 2,637 2,592 2,675 2,748 2,901 3,029 3,088 3,055 3,144 -354 -115 -169 -424 -284 Transportation equipment, 1,303 1,315 1,381 1,354 1,399 1,505 1,488 1,632 1,691 -124 -186 76 -78 -110 Other fabricated metal products 777 747 756 765 767 799 879 919 909 -43 -110 -115 -244 -225 Other durable goods 1,655 1,668 1,736 1,758 1,763 1,815 1,843 1,871 1,793 -79 22 -30 -189 Nondurable goods manufacturing: Food, liquor, and tobacco, 1,392 1,425 1,435 1,463 1,444 1,403 1,334 1,366 1,391 32 12 -187 107 -175 Te l x e t a il t e h s e , r apparel, and 1,118 1,125 1,144 1,159 1,123 1,116 1,075 1,044 993 28 123 -2 -108 121 Petroleum refining 1,864 1,931 1,908 1,606 1,659 1,707 1,781 1,785 1,685 201 22 -146 -136 -124 Chemicals and rubber. 1,449 1,486 1,464 1,460 1,444 1,466 1,462 1,495 1,540 -2 -74 -82 -43 -156 Other nondurable goods. 950 930 935 948 982 986 961 979 962 -51 24 74 -168 98 Mining, including crude pe- Trad t e r : o C le o u m m m a o n d d it n y a t d u e r a al l e g r a s. s 5,5 2 1 1 7 8 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 0 122 2 31 1 6 7 42 1 0 8 63 2 7 2 73 3 6 5 Transpo O R rt t e a h ta t e i r i o l n w holesale 2 3 1 , , , 2 8 4 4 0 7 9 9 4 2 3 1 , , , 1 8 4 7 8 0 3 3 0 2 3 1 , , , 1 9 3 3 3 9 4 4 4 2 3 1 , , , 9 0 3 4 8 4 1 0 0 2 4 1 , , , 0 0 3 6 3 0 2 8 1 2 4 1 , , , 2 0 3 3 3 0 7 2 8 2 4 1 , , , 0 2 3 3 5 4 1 5 6 2 4 1 , , , 0 2 3 3 5 1 6 2 2 2 4 1 , , , 0 2 3 0 5 4 8 0 4 -3 1 0 8 0 3 6 2 - - 3 1 2 6 3 4 -14 6 1 0 8 2 -1 - - 4 5 1 3 7 -15 3 3 3 2 6 Communication 913 910 903 948 937 990 1,008 984 998 -87 -8 -83 -51 -91 Other public utilities 3,549 3,523 3,604 3,685 3,895 3,908 3,811 3,770 3,898 -304 10 -81 13 -71 Construction 1,669 1,708 1,696 1,711 1,690 1,744 1,755 1,876 1,915 -48 -171 -266 -178 -437 Services 5,151 4,886 4,967 4,926 4,948 5,097 5,240 5,317 5,368 -130 -271 233 13 -38 All other domestic loans .. . 2,567 2,447 2,419 2,356 2,415 2,350 2,349 2,507 2,700 69 -350 -599 55 -949 Foreign commercial and industrial loans 3,309 3,388 3,522 3,462 3,141 3,157 3,121 3,085 2,984 365 173 63 158 236 Total loans 44,823 44,462 44,772 44,179 44,409 45,317 45,443 45,763 45,958 -545 -641 -1,017 -781 -1,658 l 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 • DECEMBER 1976 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holdei r Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u fi s n in a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec 17.3 92.7 53.6 1.3 10.3 175.1 1971 Dec 18.5 98.4 58.6 1.3 10.7 187.5 1972 Dec 18.9 109.9 65.4 1.5 12.3 208.0 1973—Sept 18.8 108.3 69.1 2.1 11.9 210.3 Dec 19.1 116.2 70.1 2.4 12.4 220.1 1974 Mar 18.9 108.4 70.6 2.3 11.0 211.2 June 18.2 112.1 71.4 2.2 11.1 215.0 Sept 17.9 113.9 72.0 2.1 10.9 216.8 Dec 19.0 118.8 73.3 2.3 11 .7 225.0 1975—Mar 18.6 111 .3 73.2 2.3 10.9 216.3 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 June 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 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 J5.1 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 Oct 16.8 68.4 29.6 2.4 6.6 123.8 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, Mar. 31, bank 1974 1975 1975 1976 bank 1974 1975 1975 1976 All commercial.... 333888999 333333888 222888000 All member—Cont. Insured 333888777 333333555 222888000 111999777 Other large banks 1 666999 777444 7766 12 National member 222333666 222222333 111888888 111111777 All other member i 222000666 111888666 114466 139 State member.... 333999 333666 333555 333555 All nonmember 111111555 777999 5588 All member 222777555 222666000 222222333 111555222 111111222 777666 5588 45 Noninsured 333 333 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-18-A-22 City and the City of Chicago) and "Country" categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-13. But they are included in the figures for "Time deposits" and "Loans" for call dates as shown on pp. A-14-A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 i By type of loan Date Total Commercial Real and estate industrial 1976—Aug. 4 4,598 2,886 209 4,298 2,613 209 18! 4,103 2,538 211 25, 3,990 2,508 213 Sept. 1. 3,952 2,491 210 8. 3,935 2,426 213 15. 3,818 2,354 213 22. 3,826 2,386 211 29. 3,920 2,463 222 1 To bank's own foreign branches, nonconsolidated non- Oct. 6. 3,833 2,372 221 bank affiliates of the bank, the bank's holding company (if 13. 3,890 2,463 221 not a bank), and nonconsolidated nonbank subsidiaries of 20. 3,844 2,455 221 the holding company. 27. 3,782 2,406 222 NOTE.—Series changed on Aug. 28,1974. For a comparison Nov. 3. 3,796 2,440 221 of the old and new data for that date, see p. 741 of the Oct. 10. 3,771 2,417 218 1974 BULLETIN. Revised figures received since Oct. 1974 17. 3,784 2,403 218 that affect that comparison are shown in note 2 to this table 24. 3,774 2,393 218 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— companies1 Non- All finan- Accepting banks F.R. Banks issuers cial Total Im- Ex- Dealer- Di- com- Dealer- Di- ports ports placed2 rectly- panies4 placed rectly- For- into from placed ^ placed Own Bills Own eign United United bills bought acct. corr.6 States States 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 32,126 ,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 34,721 ,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 41,073 ,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 49,144 ,61 31,839 12,694 1,814 6,518 18,484 4,226 3,685 542 999 1,109 12,150 4,023 4,067 48,257 5,574 30,496 12,187 1,482 7,316 16,790 5,002 4,190 812 948 302 10,538 3,313 3,783 50,394 6,360 32,308 11,726 1,634 7,114 17,304 5,213 4,288 924 1,047 284 10,760 3,467 3,947 49,512 6,389 32,003 11,120 1,715 6,974 17,875 6,497 5,684 813 727 279 10,372 3,545 3,888 47,690 6,239 31,276 10,175 1,762 6,892 18,727 7,333 5,899 ,435 1,126 293 9,975 3,726 4,001 48,858 6,072 31,305 11,481 1.657 6,918 18,677 6,294 5,367 927 1,230 248 10,904 3.891 3,906 49,927 6,401 31,534 11,992 1,567 6,753 19,060 5,950 5,255 695 1,051 231 11,827 3; 977 4,039 49,300 6,428 31,239 11,633 1.654 6,773 18,901 6,340 5,651 689 883 245 11,433 4,027 4,193 49,572 6,246 31,143 12,183 1.658 6,304 19,559 6,126 5,305 821 995 344 12,094 4,258 4,258 50,537 6,443 31,866 12,228 1,724 5,974 19,681 6,175 5,397 778 875 440 12,147 4,267 4,304 50,011 6,075 31,198 12,738 1,710 6,297 19,783 6,171 5,378 793 1,027 427 12,157 4,384 4,308 51,138 6,187 32,513 12,438 1.655 5,936 19,544 5,905 5,255 r650 656 447 12,968 4,61' 4,327 50,063 6,243 31,500 12,320 1,650 5,938 19,383 6,107 5,449 658 808 442 12,026 4,530 4,355 49,814 6,347 31,438 12,029 1,681 6,213 19,599 6,798 5,865 933 838 417 12,299 4,498 4,420 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 • DECEMBER 1976 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Monthly average Rate 1974—Apr. 11 10 1975—Jan. 9 10% 1975—July 18 7% 7.15 19 10% 15 10 28 7% 7.66 25 10% 20 9% 7.88 28 9% Aug. 12 77%% 7.96 May 2 10% 7.53 6 11 Feb. 3 9% Sept. 15 8 Dec 7.26 10 11% 10 9 17 11% 18 8% Oct. 27 7% 1976—Jan 7.00 24, 8% Feb 6.75 June 26 11% Nov. 5 77%% 6.75 Mar. 5, 8% 6.75 July 5, 12 10, 8 Dec. 2 7% 6.75 18, 7% 7.20 Oct. 7, 11% 24, 7% 1976—Jan. 12 7 July 7.25 21, 11% 21 6% 7.01 28, 11% May 20, 7% 7.00 June 1 7 6.78 Nov. 4, 11 June 9. 7, 7% 6.50 14. 10% 25, 10% Aug. 2, 7 RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over 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

DECEMBER 1976 • INTEREST RATES A27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities 5 PPrriimmee FFFiiinnnaaannnccceee ccoommmmeerrcciiaall CCCOOO... PPPrrriiimmmeee FFFeeeddd--- PPPeeerrriiioooddd ppaappeerr11 pppaaapppeeerrr bbbaaannnkkkeeerrrsss''' eeerrraaalll 3-month bills® 6-month bills 6 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 iissssuueess 77 days months mmmooonnnttthhhsss222 on new yield on new yield bill (mar- Other? 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—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 Nov., 4.98 5.05 4.92 4.90 4.95 4.810 4.75 4.944 4.88 5.00 5.29 6.35 Week ending— 11997766——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 Nov. 6.. . 5.00 5.13 5.00 4.98 5.06 4.862 4.83 5.030 5.00 5.12 5.43 6.51 13,. , 5.13 5.13 5.00 5.02 4.98 4.892 4.92 5.044 5.06 5.19 5.43 6.55 20,. . 5.08 5.13 5.00 4.95 5.02 4.890 4.80 5.018 4.92 5.05 5.35 6.44 27.. , 4.81 4.88 4.75 4.77 4.90 4.596 4.60 4.682 4.68 4.79 5.08 6.09 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 • DECEMBER 1976 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total 1 States ( tt l ee o rr n mm g )) - Total 1 Aaa Baa New ce R n e t - ly Aaa Baa In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Pre- Com- Comissue offered ferred mon mon Seasoned issues 1970 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11 .60 1975 6.98 7.05 6.42 7.62 9.40 9.41 9.46 8.83 10.39 9.25 9.39 9.88 8.38 4.31 9.03 1975—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 .27 Apr, , 6.73 6.61 5.68 7.50 8.48 8.52 9.04 8.40 9.83 8.98 9.05 9.27 8.04 3.66 May, 6.99 6.85 5.88 7.75 8.82 8.77 9.06 8.58 9.76 9.00 8.96 9.31 8.06 3.76 June, 6.92 6.83 5.85 7.75 8.72 8.73 9.05 8.62 9.72 8.96 8.88 9.36 8.10 3.75 .77 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 Nov., 6.62 6.26 5.27 7.16 8.17 8.16 8.58 8.25 9.12 8.54 8.48 8.77 7.80 4.04 Week ending— 1976—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 Nov. 6.. 6.69 6.31 5.31 7.21 8.23 8.61 8.30 9.14 8.56 8.50 8.81 7.75 3.99 13.. 6.71 6.35 5.36 7.25 8.31 8.28 8.60 8.31 9.12 8.56 8.47 8.80 7.89 4.12 20.. 6.62 6.23 5.24 7.13 8.24 8.15 8.60 8.27 9.13 8.56 8.49 8.79 7.84 4.06 27.. 6.52 6.14 5.16 7.03 8.05 8.04 8.54 8.17 9.10 8.50 8.48 8.72 7.71 4.00 Number of issues 2 1155 2200 5 5 112211 20 30 41 30 40 14 500 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

DECEMBER 1976 • SECURITY MARKETS 29 SECURITY PRICES Common stock prices Volume of trading in Bond prices New York Stock Exchange Amer- stocks (ver cent of par) 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 Indus- por- Utility Fi- 31, (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 55.77 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 60.21 76.4 59.2 101.19 112.96 50.55 13.99 11.58 54.17 59.45 39.28 38.85 53.25 99.20 19,370 1976—Nov. 6.. 59.64 75.9 58.9 102.06 114.12 50.11 13.78 11.70 54.51 60.00 38.84 38.64 53.41 99.31 17,140 13. . 59.52 75.4 59.7 99.32 110.87 49.91 13.62 11.32 53.14 58.25 38.27 38.43 52.15 98.57 16,222 20. . 60.15 76.5 59.0 100.87 112.61 50.51 13.99 11.49 53.99 59.27 39.34 38.72 53.02 98.87 21,006 27. . 61.00 77.7 60.4 102.53 114.36 51.45 14.37 11.76 54.99 60.32 40.38 39.43 54.18 100.32 21,945 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 credit at banks Brokers Banks Brokers Banks Brokers Banks Margin accts. 1975—Oct. 6,455 5,448 1.007 5,300 956 144 36 15 2,311 545 Nov. 6,527 5,519 1.008 5,370 958 146 37 13 2,270 490 Dec. 6,500 5,540 960 5,390 909 147 36 15 2,281 475 1976—Jan.. 6,568 5,568 1,000 5,420 946 146 34 20 2,321 655 Feb. 7,152 6,115 1,037 5,950 984 162 34 20 2,333 685 Mar. 7,617 6,575 1,042 6,410 988 162 34 20 2,355 595 Apr. 7,932 6,856 1,076 6,690 ,023 163 32 21 2,325 570 May 8,110 7,103 1,007 6,940 957 161 31 19 2,357 540 June 8,276 7,248 1,028 7,080 976 166 33 19 2,368 540 July. 8,417 7,519 898 7,340 854 176 28 16 2,317 530 Aug. 8,683 7,622 1,061 7,450 ,008 167 34 19 2,368 555 Sept. 8,566 7,707 859 7,530 813 174 32 14 2,830 555 Oct., 8,772 7,704 1,068 7,530 ,019 168 34 15 2,774 611 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS • DECEMBER 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 ddeebbtt Net in debit status Total ((mmiill-- End of period credit balance EE pp nn eerr dd ii oo oo dd ff ll dd ii oo oo oo ff nn ll -- ss m 80 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e n t 6 L 0 e p ss e r th 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—Oct.. 44.4 40.1 15.5 7,362 1975—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 Oct.. 42.7 45.3 12.0 8,560 Oct... 7,530 5.7 7.2 12.6 24.6 34.4 15.6 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 M ga o g r e t - Other G U o . v S t . . g S l a o o t n c a v d a t t e l . o C t r a o h a n r e t d p e r o 1 - Cash O as t s h e e t r s g li T e a a t n o b i n e e t i d s r a l i a l - l De i p ts o s- l O ia t t i b h e i s e l i r - G re e s n e e r r v a e l classi ( f i i n e d m b o y n t m h a s) t urity reserve accts. 3 or 3-6 6-9 less 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 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 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 74,891 3,812 2,555 930 22,550 2,167 2,645 109,550 98,701 2,888 7,961 664 418 232 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 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 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 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 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 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 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 77,738 5,366 5,452 1 ,867 30,043 1,740 3,321 125,526 114,090 2,859 8,577 1,092 360 251 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 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 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 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 79,781 5,210 5,733 2,399 32,319 1,552 3,576 130,571 118,225 3,490 8,555 1,173 414 192 80,145 5,478 5,851 2,359 32,432 1,581 3,567 131,413 119,590 2,898 8,925 1,404 364 236 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

DECEMBER 1976 • SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities EEnndd ooff ppeerriioodd aa TT ss oo ss tt ee aa ttss ll Total S U t n a i t t e e s d 1 Sta lo te c a a l n d Foreign2 Total Bonds Stocks MM ggaa oo gg rr ee tt ss -- ee RR sstt ee aa aa tt ll ee PP lloo oo aa llii nn cc ss yy OO aass tt ss hh ee ee tt rr ss 1971 . 222,102 10,373 3,828 3,363 3,182 100,432 79,825 20,607 75,496 6,904 17,065 11,832 1972. 239,730 10,637 3,827 3,367 3,443 113,720 86,875 26,845 76,948 7,295 18,003 13,127 1973t. 252,436 10,519 3,444 3,412 3,663 118,599 92,680 25,919 81,369 7,693 20,199 14,057 19741. - 263,349 10,900 3,372 3,667 3,861 119,637 97,717 21,920 86,234 8,331 22,862 15,385 1975. 289,304 13,758 4,736 4,508 4,514 135,317 107,256 28,061 89,167 9,621 24,467 16,974 —Sept 282,065 12,253 3,821 4,165 4,267 132,037 105,440 26,597 88,331 9,197 24,099 16,148 Oct 285,015 12,858 4,342 4,193 4,323 133,865 106,250 27,615 88,481 9,342 24,242 16,227 Nov 287,122 13,243 4,613 4,260 4,370 134,961 107,040 27,921 88,657 9,450 24,343 16,468 Dec 289,304 13,758 4,736 4,508 4,514 135,317 107,256 28,061 89,167 9,621 24,467 16,974 i—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 Sept.? 312,044 16,862 5,150 5,364 6,348 152,125 118,706 33,419 90,217 10,175 25,505 17,160 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) Liabilities Mortgage Total loan com- End of period M ga o g r e t s - I s i m n e t v i c e e e u n s s r t 1 t - - Cash Other l a ia s T b s o e il t t i a s t — l i es 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 - y d 3 Other ou m a p t t s i e t t e r m a n i n d o e d n d i o 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—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 19,630 051 8,011 11,111 Feb.. 282,487 36,128 30,251 348,866 295,364 20,162 18,746 134 9,460 12,878 Mar.. 286,556 36,722 30,462 353,740 302,436 20,211 18,220 379 7,494 14,445 Apr.. 290,727 36,437 30,663 357,827 305,234 20,475 17,759 787 8,572 15,512 May. 294,759 37,005 31,268 363,032 308,284 20,688 17,670 156 10,234 16,620 June. 299,574 35,316 31,708 366,598 313,326 20,761 18,251 464 7,796 16,639 July., 303,815 36,029 32,112 371,956 316,510 20,997 18,439 640 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.. 312,139 35,262 32,524 379,925 324,272 21,384 19,161 6,756 8,352 15,470 Oct.*, 316,073 36,538 32,601 385,212 327,778 21.664 18,837 6,819 10,114 15,295 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 • DECEMBER 1976 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Surplus Less: Invest- of Receipts Outlays or Public ments by Govt, Trea- financdeficit debt Agency accounts Less: Equals: sury ing, (-) securi- securi- Special Total operat- Other net 2 ties ties notes i ing Special Other balance issues 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 r281,037 r324,642 -43,604 58,953 ,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 141,430 171,494 -30,065 40,524 -423 5,272 -1,231 36,060 1,657 1,333 -3,004 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—Oct. r 19,316 32,493 -13,177 8,352 -10 -3,656 260 11,738 1,958 -271 3,126 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 Oct 21,018 34,000 -12,981 2,902 -5 -1,463 -26 4,386 -5,371 1,100 4,325 Selected balances Treasury operating balance Borrowing from the public Memo : End Debt of of Less: Govt.period B F a . n R k . s ac l c 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 G I e n c o v i v a e l t s , tm ac e c n o t u s n o t f s S n L p o e e t c s e i s s a : 1 l E T q o u t a a l l s: s c p p o r o N r i n p v o s a s w o . 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—Oc t 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 81,704 Oct 10,238 1,805 12,043 637,603 11,673 126,304 20,259 502,713 1 Represents non-interest-bearing public debt securities issued to the verted from a time to a demand basis to permit greater flexibility in International Monetary Fund and international lending organizations. Treasury cash management). "Other depositaries" have been excluded New obligations to these agencies are handled by letters of credit. from the Treasury operating balance beginning July 1, 1976. 2 Includes accrued interest payable on public debt securities until June 4 Includes debt of Federal home loan banks, Federal land banks, R.F.K. 1973 and total accrued interest payable to the public thereafter; deposit Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate funds; miscellaneous liability (includes checks outstanding) and asset credit banks and banks for cooperatives (both beginning Dec. 1968). accounts; seigniorage; increment on gold; fiscal 1974 conversion of in- 5 Beginning July 1974, public debt securities excludes $825 million of terest receipts of Govt, accounts to an accrual basis; gold holdings, gold notes issued to International Monetary Fund to conform with Office of certificates and other liabilities, and gold balance beginning Jan. 1974; Management and Budget's presentation of the budget. and net gain/loss for U.S. currency valuation adjustment beginning June * See p. A33. 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. taries" (deposits in certain commercial depositaries that have been con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • FEDERAL FINANCE A33 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total Pres. taxes and Excise Cus- Estate Misc. elec- Non- Gross contribution1 Un- Other taxes toms and re- With- tion with- Re- Net re- Re- empl. net Net gift ceipts3 held cam- held funds total ceipts funds insur. re- total paign Pay- Self- ceipts2 fund roll empl. taxes Fiscal year: 197 3 232,225 98,093 27,017 21,866 103,246 39,045 2,893 52,505 2,371 6,051 3,614 64,542 16,260 3,188 4,917 3,921 197 4 264,932 112,092 30,812 23,952 118,952 41,744 3,125 62,878 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,369 197 5 '281,037 122,071 34,296 34,013 122,386 45,747 5,125 71,788 3,416 6,771 4,466 86,441 16,551 3,676 4,611 '6,752 197 6 300,005 123,408 35,528 27,367 131,603 46,783 5,374 76,391 3,518 8,054 4,752 92,714 16,963 4,074 5,216 8,026 Half year: 1974—July-Dec... 139,607 61,378 7,098 ,016 67,461 18,247 2,016 34,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,140 1975—Jan.-June.. 141,430 60.693 31 27,198 32,998 54,925 27,500 3,109 37,370 3,162 3,856 2,279 46,667 7,790 1,718 2,328 3,612 July-Dec... 139,453 59,549 7,649 1,362 65,835 18,810 2,735 35,443 268 2,861 2,314 40,886 8,759 1,927 2,573 3,397 1976—Jan.-June.. 160,552 63,859 33 27,879 26,004 65,767 27,973 2,639 40,947 3,250 5,193 2,438 51,828 8,204 2,147 2,643 4,630 Month: 1975—Oc t 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 1,771 218 5,540 225 223 442 6,430 1,335 348 401 292 Feb 20,845 10,938 933 4,100 1,203 422 8,330 237 693 370 9,631 1,354 288 475 538 Mar 20,431 11,377 2,532 8,646 6,485 621 5,796 275 129 435 6,635 1,344 384 450 482 Apr 33,348 10,029 12,723 7,512 6,727 607 6,179 ,832 952 386 9,349 1 ,353 357 387 535 May 22,679 10,749 573 5,171 1,396 380 9,132 359 2,940 380 12,811 1,329 349 489 528 June 37,615 11,249 5,275 490 10,391 391 5,969 322 254 425 6,971 1,489 421 442 2,255 July 22,660 10,731 1,018 549 1.885 372 5,937 723 408 7,068 1,510 389 454 524 Aug 27,360 11,813 542 267 1,111 422 9,328 1,822 464 11,614 1 ,476 394 547 552 Sept 31,753 10,406 5,249 142 6,812 554 6,269 269 153 386 7,077 1,486 429 453 537 Oct 21,018 10.694 564 163 1,874 846 5,308 503 388 6,199 1,408 345 417 527 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 tional Intl. ence, cul- sources, merce and employ- and Vet- Inter- law and offde- alfairs space, ture envir., and region ment, wel- erans est4 en- fiscal setting 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 28,072 5,789 6,746 -16,651 1975 r 324,642 86,533 4,356 4,048 1,667 9,567 16,010 4,431 15,249 136,252 16,594 30,975 6,029 7,006 -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 35,500 6,277 7,114 -14,704 TQ 7 94,473 22,389 1,450 1,129 760 3,592 4,685 1,505 4,683 41,830 3,975 7,304 1,714 2,024 -2,567 19776 400,000 101,600 7,100 4,500 1,800 15,100 16,400 6,000 18,400 172,700 17,800 40,200 6,900 7,400 -16,800 Month: 1975—Oct.' 32,493 8,192 355 376 287 816 1,975 449 858 13,665 1,526 2,377 449 1,622 -455 Nov. 29,401 7,533 419 405 196 786 1,203 315 1,653 12,612 1,624 2,996 531 15 -887 Dec. 31,792 7,981 290 409 175 814 1,994 433 1,515 13,721 1,704 2,820 1,154 1 -1,221 1976—Jan.. 30,725 6,915 351 336 228 718 1,819 421 1,478 13,714 1,626 2,813 121 1,627 -1,441 Feb. 29,833 6,120 320 413 315 1,833 900 421 1,530 13,360 1,696 3,143 570 53 -841 Mar. 29,054 7,752 320 379 44 935 -672 270 1,809 14,382 1,659 3,407 567 16 -1,814 Apr. 32,476 7,994 249 360 -51 984 1,610 464 1 ,606 13,679 1,652 3,356 420 1,605 -1,452 May 28,410 7,136 292 348 270 924 466 448 1,258 13,229 1,555 3,220 617 96 -1,449 June 30,567 8,134 ,077 371 -181 929 1,238 528 1,738 13,501 1,248 2,652 668 32 -1,368 July. 33,906 7,462 902 403 99 1 ,313 2,056 450 1,348 14,066 1,367 3,298 502 1,776 -1,136 Aug. 29,571 7,268 395 417 130 1,106 651 531 1,473 13,885 1,385 2,831 601 111 -1,213 Sept. 30,996 7,659 152 309 531 1,173 1,977 525 1,862 13,799 1,223 1,256 612 137 -217 Oct.. 34,000 7,604 539 431 122 1,057 2,237 425 1,128 14,321 1,401 2,642 417 2,112 -436 1 Old-age, disability, and hospital insurance, and Railroad Retirement 7 Effective in calendar year 1976, the fiscal year for the U.S. Govt, is accounts. being changed from July 1-June 30 to Oct. 1-Sept. 30. The period July 1- 2 Supplementary medical insurance premiums and Federal employee Sept. 30 of 1976, data for which are shown separately from fiscal year retirement contributions. 1976 and fiscal year 1977 totals, will be a transition quarter. 3 Deposits of earnings by F. R. Banks and other miscellaneous receipts. * As of Sept. 1975 Govt, receipt clearing account F3875 was reclassified 4 Effective September 1976. The "Interest" and "Undistributed offsetting as proprietary. Receipts for this account, previously included under receipts" columns reflect the accounting conversion for interest on special "miscellaneous receipts," are included as offsets to outlays beginning issues for Govt, accounts from an accrual basis to a cash basis. with fiscal year 1975, and on a monthly basis with revised data for 5 Consists of interest received by trust funds, rents and royalties on the January 1975. Outer Continental Shelf, and Govt, contributions for employee retirement. 6 Estimates presented in Mid-session Review of the 1977 Budget, July NOTE.—Half years may not add to fiscal year totals due to revisions in 16, 1976. Figures for outlay categories exclude special allowances for series that are not yet available on a monthly basis. civilian agency pay raises totaling $800 million for fiscal year 1977, and therefore do not add to totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 U.S. GOVERNMENT SECURITIES • DECEMBER 1976 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p d T g u e r o b b o t l t s a i c s l i Total Total Bills Ma C r c e k a r e t t e t if s a i b - le Notes Bonds 2 b C v i o e b o n r l n e d t- - s Total N 3 o nm Fo a r r e k i e g t n a bl S e b a o a v n n i d n d s g s i S s p su ec es i al 5 notes 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 107.1 1974—Dec. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 118.2 1975—Nov. 566.8 447.5 355.9 151.1 166.1 38.7 2.3 89.3 21.3 67.6 116.7 Dec. 576.6 457.1 363.2 157.5 167.1 38.6 2.3 91.7 21.6 67.9 118.5 1976—Jan.. 584.4 463.8 369.3 159.6 171 .1 38.6 2.3 92.2 21.6 68.2 118.1 Feb. 593.9 473.7 378.8 162.1 177.6 39.1 2.3 92.7 21.7 68.6 119.2 Mar. 600.5 480.7 385.3 163.1 183.1 39.0 2.3 93.1 21.7 69.0 118.5 Apr. 602.0 482.4 386.4 161 .8 185.8 38.9 2.3 93.6 21.6 69.4 118.6 May 610.7 484.4 388.0 161 .8 186.5 39.7 2.3 94.1 21 .5 69.8 123.7 June 620.4 489.5 392.6 161 .2 191 .8 39.6 2.3 94.6 21.5 70.1 129.8 July. 624.5 495.5 397.7 161 .4 197.2 39.1 2.3 95.5 21.4 70.8 128.1 Aug. 633.3 502.5 404.3 161 .4 203.0 39.9 2.3 95.9 21 .0 71 .5 129.8 Sept. 634.7 505.7 407.7 161 .5 206.3 39.8 2.3 95.8 20.8 71 .2 127.9 Oct.. 637.6 508.7 408.6 161.5 207.3 39.8 2.3 97.8 22.3 71.5 126.4 Nov. 644.6 517.0 415.4 161.7 213.0 40.7 2.3 99.3 22.5 71.9 126.7 1 Includes non-interest-bearing debt (of which $612 million on Novem- 4 Nonmarketable certificates of indebtedness, notes, and bonds in the ber 30, 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 pp TT gg dd uu rr oo ee bb oo tt bb ll ss aa tt ii ss ll cc aagg GG tt UU aa ee rr oo nn nn uu .. vv SS dd cc ss tt .. tt ii ,, ee ss B F a . n R k . s TToottaall mm CC bb ee aa oo rr nn mm cc kk ii -- aa ss ll MM ss bb aa aa uu vv nn ii tt nn uu kk gg aa ss ss ll p I c a n a o n s n m u c i e e r - s - r c O a o t t r i h p o e o n r - s g S l a o o t n v c a d a t te s l . Savi I n n g d s i vidu O a t ls h 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 i O m o n r t v i s h s e c e s 2 . r ffuunnddss 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—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 Sept. 634.7 146.1 96.4 392.2 93.3 5.3 11.6 25.7 39.1 70.9 28.8 74.6 42.9 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

DECEMBER 1976 • U.S. GOVERNMENT SECURITIES A35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) \ Within 1 yea r Type of holder and date Total y 1 ea -5 r s y 5 e - a 1 r 0 s 1 y 0 ea -2 r 0 s 20 O y v e e a r rs Total Bills Other All holders: 1973—Dec. 31 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—Dec. 31 282,891 148,086 119,747 28,339 85,311 27,897 14,833 6.764 1975—Dec. 31 363,191 199,692 157,483 42,209 112,270 26,436 14,264 10,530 1976—Sept. 30 407,663 206,062 161,505 44,557 131,102 44,029 13,221 13,249 Oct. 31 408,590 207,679 161,545 46,134 127,938 46,562 13,176 13,234 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—Sept. 30 16,640 2,298 544 1,754 5,726 2,540 3,676 2,401 Oct. 31 16,640 2,200 449 1,751 5,850 2,565 3,676 2,350 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—Sept. 30 96,427 50,462 41,364 9,098 30,531 10,242 1,606 3,587 Oct. 31 95,738 50,301 41,237 9,064 30,293 10,075 1,603 3,466 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—Sept. 30 294,596 153,302 119,597 33,705 94,845 31,247 7,939 7,261 Oct. 31 296,212 155,178 119,859 35,319 91,795 33,922 7,897 7,418 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—Sept. 30 70,201 26,524 14,413 12,111 36,740 6,151 451 334 Oct. 31 71,077 27,406 14,310 13,096 35,660 7,228 490 292 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—Sept. 30 3,975 1,026 368 658 2,097 600 184 68 Oct. 31 3,954 1,065 373 692 2,009 647 178 54 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—Sept. 30 9,654 1,899 1,263 636 3,744 2,333 1,117 561 Oct. 31 10,111 2,221 1,525 696 3,680 2,546 1,127 536 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—Sept. 30 14,102 10,115 8,731 1,384 3,578 316 60 32 Oct. 31 13,547 10,514 9,215 1,299 2,477 395 130 31 Savings and loan associations: 1973—Dec. 31 2,103 576 121 455 1,011 320 151 45 1974—Dec. 31 1,663 350 87 263 835 282 173 23 1975—Dec. 31 2,793 914 518 396 1,558 216 82 22 1976—Sept. 30 4,439 1,895 1,280 615 2,283 174 69 18 Oct. 31 4,375 1,978 1,319 659 2,102 214 68 14 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—Sept. 30 11,467 6,604 5,452 1,152 2,252 1,162 760 689 Oct. 31 12,427 6,764 5,571 1,193 2,373 1,581 909 800 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—Sept. 30 180,759 105,239 88,090 17,149 44,151 20,511 5,299 5,559 Oct. 31 180,720 105,231 87,547 17,684 43,493 21,311 4,994 5,691 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 728 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 • DECEMBER 1976 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com- All 1 year years years 10 years securities securities mercial other 1 dealers brokers banks 1975—Oc t 8,714 5,929 2,332 309 144 1,271 2,675 1,839 2,929 1,250 Nov 7,594 5,519 1,353 534 189 1,070 2,176 1,875 2,474 1,217 Dec 7,586 5,919 1,270 278 120 1,190 2,217 1,977 2,202 1,059 1976—Ja n 9,509 7,049 1,765 569 126 1,265 3,118 2,192 2,935 1,417 Feb 8,329 5,863 1,553 755 158 951 2,389 2,196 2,793 1 ,163 Mar 9,044 6,763 1,807 358 116 1,308 2,777 2,276 2,683 1,185 Apr. 10,293 7,667 2,186 306 134 1,341 3,154 2,426 3,372 1,665 May 8,557 6,002 1,593 700 263 952 2,907 2,128 2,571 1,131 June 8,582 6,415 1,616 426 126 1,312 2,543 1,983 2,743 1,118 July 9,663 6,846 1,771 946 99 1,356 3,230 2,078 2,999 1,371 Aug 10,579 6,170 2,548 1,498 363 1 ,401 3,284 2,355 3,539 1,557 Sept 9,541 5,828 2,488 956 270 1,273 2,889 2,239 3,139 1,616 Oct 13,240 7,603 3,084 2,252 300 1,632 4,769 2,956 3,882 2,230 Week ending— 1976—Oct. 6, 12,689 7,484 2,704 2,231 270 2,004 3,926 3,015 3,744 2,365 13, 16,153 8,796 3,848 3,136 373 1,876 6,215 3,708 4,354 3,268 20, 14,978 8,923 3,065 2,619 372 1,603 5,595 3,268 4,513 2,466 27, 10,636 6,279 2,815 1,317 226 1,227 3,813 2,205 3,391 1,397 Nov. 3, 10,031 6,439 2,071 1,315 206 1,475 3,465 2,091 3,000 1,117 10, 13,189 7,943 2.981 1,718 548 1,864 4,688 2,605 4,032 1,384 17, 16,203 9,696 4,350 1,802 355 2,008 5,750 3,409 5,037 1,988 24, 18,000 9,367 5.982 2,186 465 1,985 6,853 4,144 5,018 3,067 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period ma t A i t e u ll s r i- W y i e t 1 a h r i n y 1 ea -5 r s y 5 ea -1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e o i u e n v s r c t i , y - Period sou A r l c l es Y N C o e it r w y k w E h ls e e r - e C t o i r o p n o s1 r a- o A th l e l r 1975—Oc t 7,322 6,019 1,091 111 102 498 1975—Oc t 6,940 1,658 1,792 817 2,673 Nov.. . . 6,752 5,011 640 594 506 953 Nov 7,215 1 ,958 1,393 991 2,873 Dec 6,061 5,274 322 218 247 982 Dec 7,107 2,001 1,304 1,086 2,716 1976—Ja n 305 5,287 449 398 170 694 1976—Ja n 6,766 1,757 1,337 1,147 2,526 Feb 263 5,477 381 224 183 602 Feb 6,700 1,705 850 1 ,017 3,128 Mar.. . . 884 6,360 286 122 116 537 Mar 7,175 1,865 1,138 1 ,225 2,947 Apr 733 6,328 190 131 84 508 Apr 7,587 1 ,966 1,734 1,126 2,761 May.... 272 4,852 232 126 62 183 May.... 6,089 1,346 1,026 975 2,742 June.... 895 5,489 251 144 335 June.... 7,326 1,819 1,494 1,258 2,756 July 118 6,370 254 466 29 568 July 7,772 1,496 1 ,522 1 ,569 3,185 Aug ,511 6,948 493 624 446 806 Aug 9,264 1,671 1,600 1,879 4,114 Sept ,496 8,152 530 510 304 867 Sept 10,827 2,073 1,949 1,715 5,091 Oct ,045 6,441 672 695 237 1,084 Oct 9,433 2,038 2,038 1,523 3,835 Week ending— Week ending— 1976—Sept. 1 9,517 8,043 509 515 449 1,052 1976—Sept. 1. 10,541 1,950 1,497 1,984 5,109 8 9,963 8,351 637 571 403 910 10,996 2,182 2,202 1,963 4,650 15 9,244 7,825 597 478 344 774 15... 10,905 2,502 2,474 2,027 3,902 22 10,097 8,810 593 457 237 957 22... 10,715 2,005 1,814 1,435 5,461 29 8,751 7,813 248 443 246 767 29... 10,886 1,733 1,449 1,461 6,243 Oct. 6, 8,751 7,287 543 916 262 1,121 Oct. 6... 9,419 1,961 1,816 1,507 4,136 13, 7,731 5,835 769 838 290 1,295 13... 9,342 1,833 2,443 1,525 3,540 20 7,716 6,025 677 732 282 1,118 20... 9,200 2,008 2,013 1,555 3,623 27 7,984 6,623 716 480 165 939 27... 9,455 2,333 1,828 1,516 3,778 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

DECEMBER 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 17,578 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 15,215 5,585 97 17,114 2,891 2,836 32,113 29,805 4,470 3,761 10,823 10,034 17,731 15,274 3,739 118 17,136 2,949 2,839 32,090 29,863 4,413 3,733 11,188 9,998 17,979 15,403 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 15,865 5,745 93 17,121 3,393 2,871 32,066 30,656 4,872 4,016 9,550 10,616 18,741 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 - G l U o o a . v S n t . s , 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 d g d e s s i U ti t e i s l- 4 H in ou gs s 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 2,337 1,120 1,203 482 979 855 2,241 212 60 487 44 2,385 1,040 1,341 470 1,244 667 2.318 219 88 618 28 2,062 995 1,057 434 1,043 576 1,990 287 29 495 20 2,358 1,136 1,211 639 1,073 638 2,274 432 95 601 2,722 1,332 1,375 446 1,449 810 2,622 360 135 574 130 3,346 2,173 1,166 1,254 824 1,262 3,180 439 215 710 692 2,440 1,211 1,218 457 1,227 746 2.319 356 26 679 367 3,490 1,866 1,611 824 1,400 1,256 3,303 710 384 956 70 3,028 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 • DECEMBER 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 OOtthheerrss TToottaall Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d l y Preferred Common 197 2 84,792 17,080 12,825 23,070 1,589 4444444444444444400000000000000000,,,,,,,,,,,,,,,,,222222222222222222222222222222222288888888888888888 2222222222222222266666666666666666,,,,,,,,,,,,,,,,,111111111111111113333333333333333322222222222222222 1111111111111111177777777777777777,,,,,,,,,,,,,,,,,444444444444444442222222222222222255555555555555555 88888888888888888,,,,,,,,,,,,,,,,,777777777777777770000000000000000066666666666666666 33333333333333333,,,,,,,,,,,,,,,,,333333333333333337777777777777777700000000000000000 1111111111111111100000000000000000,,,,,,,,,,,,,,,,,777777777777777772222222222222222255555555555555555 197 3 99,050 19,057 23,883 22,700 1,385 3333333333333333322222222222222222,,,,,,,,,,,,,,,,,000000000000000002222222222222222255555555555555555 2222222222222222211111111111111111,,,,,,,,,,,,,,,,,000000000000000004444444444444444499999999999999999 1111111111111111133333333333333333,,,,,,,,,,,,,,,,,222222222222222224444444444444444444444444444444444 77777777777777777,,,,,,,,,,,,,,,,,888888888888888880000000000000000022222222222222222 33333333333333333,,,,,,,,,,,,,,,,,333333333333333333333333333333333377777777777777777 77777777777777777,,,,,,,,,,,,,,,,,666666666666666664444444444444444422222222222222222 197 4 3333333333333333388888888888888888,,,,,,,,,,,,,,,,,333333333333333331111111111111111111111111111111111 3333333333333333322222222222222222,,,,,,,,,,,,,,,,,000000000000000006666666666666666666666666666666666 2222222222222222255555555555555555,,,,,,,,,,,,,,,,,999999999999999990000000000000000033333333333333333 66666666666666666,,,,,,,,,,,,,,,,,111111111111111116666666666666666600000000000000000 22222222222222222,,,,,,,,,,,,,,,,,222222222222222225555555555555555533333333333333333 33333333333333333,,,,,,,,,,,,,,,,,999999999999999999999999999999999944444444444444444 1975r 5555555555555555533333333333333333,,,,,,,,,,,,,,,,,666666666666666661111111111111111177777777777777777 4444444444444444422222222222222222,,,,,,,,,,,,,,,,,777777777777777775555555555555555566666666666666666 3333333333333333322222222222222222,,,,,,,,,,,,,,,,,555555555555555558888888888888888833333333333333333 1111111111111111100000000000000000,,,,,,,,,,,,,,,,,111111111111111117777777777777777722222222222222222 33333333333333333,,,,,,,,,,,,,,,,,444444444444444445555555555555555588888888888888888 77777777777777777,,,,,,,,,,,,,,,,,444444444444444440000000000000000055555555555555555 1975—July 44444444444444444,,,,,,,,,,,,,,,,,333333333333333332222222222222222277777777777777777 33333333333333333,,,,,,,,,,,,,,,,,666666666666666667777777777777777733333333333333333 22222222222222222,,,,,,,,,,,,,,,,,666666666666666665555555555555555588888888888888888 11111111111111111,,,,,,,,,,,,,,,,,000000000000000001111111111111111144444444444444444 111111111111111119999999999999999988888888888888888 444444444444444445555555555555555566666666666666666 Aug 22222222222222222,,,,,,,,,,,,,,,,,444444444444444440000000000000000055555555555555555 11111111111111111,,,,,,,,,,,,,,,,,888888888888888884444444444444444422222222222222222 11111111111111111,,,,,,,,,,,,,,,,,333333333333333335555555555555555566666666666666666 444444444444444448888888888888888866666666666666666 111111111111111112222222222222222299999999999999999 444444444444444443333333333333333344444444444444444 Sept 22222222222222222,,,,,,,,,,,,,,,,,888888888888888883333333333333333366666666666666666 11111111111111111,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999 11111111111111111,,,,,,,,,,,,,,,,,444444444444444441111111111111111144444444444444444 555555555555555558888888888888888855555555555555555 333333333333333330000000000000000088888888888888888 555555555555555552222222222222222299999999999999999 Oct 44444444444444444,,,,,,,,,,,,,,,,,777777777777777770000000000000000055555555555555555 33333333333333333,,,,,,,,,,,,,,,,,111111111111111115555555555555555588888888888888888 22222222222222222,,,,,,,,,,,,,,,,,333333333333333338888888888888888899999999999999999 777777777777777776666666666666666699999999999999999 333333333333333333333333333333333322222222222222222 11111111111111111,,,,,,,,,,,,,,,,,222222222222222221111111111111111155555555555555555 Nov 44444444444444444,,,,,,,,,,,,,,,,,000000000000000006666666666666666688888888888888888 33333333333333333,,,,,,,,,,,,,,,,,222222222222222229999999999999999966666666666666666 11111111111111111,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666 11111111111111111,,,,,,,,,,,,,,,,,666666666666666663333333333333333300000000000000000 444444444444444444444444444444444444444444444444444 333333333333333332222222222222222244444444444444444 Dec 44444444444444444,,,,,,,,,,,,,,,,,333333333333333332222222222222222255555555555555555 33333333333333333,,,,,,,,,,,,,,,,,555555555555555552222222222222222288888888888888888 11111111111111111,,,,,,,,,,,,,,,,,777777777777777776666666666666666611111111111111111 11111111111111111,,,,,,,,,,,,,,,,,777777777777777776666666666666666677777777777777777 444444444444444446666666666666666622222222222222222 333333333333333333333333333333333355555555555555555 1976—jan 33333333333333333,,,,,,,,,,,,,,,,,333333333333333338888888888888888811111111111111111 22222222222222222,,,,,,,,,,,,,,,,,888888888888888880000000000000000022222222222222222 22222222222222222,,,,,,,,,,,,,,,,,111111111111111118888888888888888899999999999999999 666666666666666661111111111111111133333333333333333 111111111111111114444444444444444488888888888888888 444444444444444443333333333333333311111111111111111 Feb.r 33333333333333333,,,,,,,,,,,,,,,,,888888888888888886666666666666666633333333333333333 22222222222222222,,,,,,,,,,,,,,,,,999999999999999993333333333333333366666666666666666 22222222222222222,,,,,,,,,,,,,,,,,111111111111111114444444444444444422222222222222222 777777777777777779999999999999999944444444444444444 111111111111111117777777777777777733333333333333333 777777777777777775555555555555555544444444444444444 Mar 66666666666666666,,,,,,,,,,,,,,,,,666666666666666663333333333333333322222222222222222 44444444444444444,,,,,,,,,,,,,,,,,555555555555555558888888888888888855555555555555555 33333333333333333.................222222222222222223333333333333333388888888888888888 11111111111111111,,,,,,,,,,,,,,,,,333333333333333334444444444444444477777777777777777 444444444444444444444444444444444433333333333333333 11111111111111111,,,,,,,,,,,,,,,,,666666666666666660000000000000000044444444444444444 Apr.r 33333333333333333,,,,,,,,,,,,,,,,,555555555555555552222222222222222222222222222222222 22222222222222222,,,,,,,,,,,,,,,,,999999999999999999999999999999999944444444444444444 22222222222222222,,,,,,,,,,,,,,,,,333333333333333335555555555555555500000000000000000 666666666666666664444444444444444444444444444444444 6666666666666666611111111111111111 444444444444444446666666666666666677777777777777777 May r 44444444444444444,,,,,,,,,,,,,,,,,111111111111111118888888888888888866666666666666666 22222222222222222,,,,,,,,,,,,,,,,,999999999999999998888888888888888888888888888888888 11111111111111111,,,,,,,,,,,,,,,,,999999999999999993333333333333333377777777777777777 11111111111111111,,,,,,,,,,,,,,,,,000000000000000005555555555555555511111111111111111 222222222222222229999999999999999999999999999999999 888888888888888889999999999999999999999999999999999 Juner 66666666666666666,,,,,,,,,,,,,,,,,444444444444444441111111111111111166666666666666666 55555555555555555,,,,,,,,,,,,,,,,,000000000000000002222222222222222211111111111111111 33333333333333333,,,,,,,,,,,,,,,,,111111111111111114444444444444444400000000000000000 11111111111111111,,,,,,,,,,,,,,,,,888888888888888888888888888888888811111111111111111 333333333333333336666666666666666600000000000000000 11111111111111111,,,,,,,,,,,,,,,,,000000000000000003333333333333333355555555555555555 July 33333333333333333,,,,,,,,,,,,,,,,,000000000000000000000000000000000077777777777777777 22222222222222222,,,,,,,,,,,,,,,,,333333333333333337777777777777777788888888888888888 11111111111111111.................222222222222222223333333333333333399999999999999999 11111111111111111,,,,,,,,,,,,,,,,,111111111111111113333333333333333399999999999999999 8888888888888888899999999999999999 555555555555555554444444444444444400000000000000000 Aug 33333333333333333,,,,,,,,,,,,,,,,,111111111111111117777777777777777777777777777777777 22222222222222222,,,,,,,,,,,,,,,,,555555555555555550000000000000000055555555555555555 11111111111111111,,,,,,,,,,,,,,,,,555555555555555556666666666666666655555555555555555 999999999999999994444444444444444400000000000000000 222222222222222220000000000000000088888888888888888 444444444444444446666666666666666644444444444444444 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e l r la ci n a e l o a us n d Transportation Public utility Communication a R nd e a f l in 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 1,126 7,728 197 3 4,199 638 1,318 1,532 1,084 26 5,578 4,691 3,523 1,348 5,344 1 1 9 9 7 7 4 5 1 9 7 , , 8 0 6 0 7 6 1,6 5 7 4 0 4 2 1 , , 7 84 5 5 7 1,4 9 7 4 0 0 1 3, , 4 5 3 5 9 0 221 9 8 , , 6 8 5 7 8 3 6 3 , , 2 9 3 6 5 4 3 3 . , 7 4 1 6 0 4 1,0 21 0 7 2 6 6, ,4 2 5 1 9 8 1975—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.1 744 435 319 132 650 487 302 151 20 584 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 12 8 806 June 1,319 125 483 58 263 3 869 479 698 711 1,389 J A u u l g y . ' 7 9 1 1 5 1 2 1 7 0 9 8 2 1 6 6 8 6 1 6 6 9 4 1 4 1 8 2 "l3 6 6 0 5 7 6 2 31 5 1 4 2 2 0 0 9 1 6 3 5 6 6 1 3 0 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

DECEMBER 1976 • SECURITY ISSUES A39 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers 1 All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 42,306 10,224 32,082 27,065 8,003 19,062 15,242 1,222 13,018 33,559 11,804 21,754 21,501 8,810 12,691 12,057 ,993 9,064 39,334 9,935 29,399 31,554 6,255 25,098 7,980 ,678 4,302 53,255 10,991 42,263 40,468 8,583 31,886 12,787 ,408 10,377 15,602 3,211 12,390 11,460 2,336 9,124 4,142 875 3,266 9,079 2,576 6,503 6,654 2,111 4,543 2,425 465 1 ,960 13,363 3,116 10,247 9,595 2,549 7,047 3,768 567 3,200 13,671 2,315 11,356 9,404 1,403 8,001 4,267 912 3,355 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 i Redemp- Net Total 2 Cash Other Sales i Redemp- Net Cash tions sales position 3 tions sales position 3 2,460 1,504 952 25,214 1,341 23,873 1975—Oct... 914 995 -81 41,860 3,601 3,404 1,875 1,528 29,116 1,329 27,787 •Nov.. 786 911 -125 42,460 3,733 4,359 1,962 2,395 35,220 1,803 33,417 Dec.. 1,040 1,093 -53 42,179 3,748 4,671 2,005 2,665 34,829 2,971 31,858 1976—Jan... 411 538 -47 46,529 3,287 4,670 2,745 1,927 44,701 2,566 42,135 Feb.. 262 577 -315 46,540 3,084 6,820 3,841 2,979 52,677 3,187 49,490 Mar.. 326 677 -351 46,866 2,881 Apr.. 305 620 -315 45,956 2,683 6,717 3,661 3,056 48,291 3,846 44,445 May. 241 589 -348 45,122 2,769 4,624 2,987 1,637 47,618 3,649 43,969 June. 321 599 -278 46,801 2,679 5,145 4,751 394 55,045 3,038 52,007 July.. 281 596 -315 45,986 2,547 Aug.. 256 536 -280 45,457 2,561 4,892 6,563 -1,671 59,831 3,035 56,796 Sept.. 338 573 -235 46,138 2,507 4,358 5,651 -1,261 46,518 4,002 42,516 Oct... 378 450 -72 44,858 2,434 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 • DECEMBER 1976 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1974 1975 1976 Industry 1974 r 1975 ' Ir IIr III' IV r LR II' IIIr IV r QLR QII Total (170 corps) • Sales 564,862 586,948 126,859 143,108 145,089 149,806 138,392 145,898 148,008 154,650 159,311 166,452 Total revenue 573,275 595,337 128,759 145,259 147,286 151,971 140,482 147,811 149,841 157,203 161,461 169,348 Profits before taxes 67,858 60,356 16,621 18,239 17,902 15,096 12,925 14,875 15,507 17,049 16,802 18,202 Profits after taxes 32,591 27,040 7,751 9,302 8,449 7,089 5,566 6,715 7,102 7,657 8,613 9,539 Memo: PAT unadj.i 32,780 27,810 7,639 9,233 8,518 7,390 5,682 6,603 7,054 8,471 8,636 9,490 Dividends 12,434 12,458 2,913 2,932 3,077 3,512 3,132 3,036 3,076 3,214 3,187 3,452 Nondurable goods industries (86 corps.):2 Sales 309,033 323,136 68,782 77,193 80,543 82,515 77,297 78,656 82,361 84,822 86,927 87,404 Total revenue 314,584 328,502 70,066 78,654 82,021 83,843 78,616 79,940 83,595 86,351 88,179 89,254 Profits before taxes 46,446 40,905 11,887 11,998 12,618 9,943 9,378 9,989 10,924 10,614 10,674 10,595 Profits after taxes 20,568 16,303 5,055 5,740 5,473 4,300 3,586 3,919 4,441 4,357 4,809 4,833 Memo: PAT unadj.i 20,465 16,719 4,958 5,689 5,398 4,420 3,572 3,900 4,439 4,808 4,829 4,809 Dividends 6,873 7,228 1,626 1,645 1,720 1,882 1,815 1,784 1,803 1,826 1,879 1,950 Durable goods industries (84 corps.) Sales 255,829 263,812 58,077 65,915 64,546 67,291 61,095 67,242 65,647 69,828 72,384 79,048 Total revenue 258,691 266,835 58,693 66,605 65,265 68,128 61,866 67,871 66,246 70,852 73,282 80,094 Profits before taxes 21,412 19,451 4,734 6,241 5,284 5,153 3,547 4,886 4,583 6,435 6,128 7,607 Profits after taxes 12,023 10,737 2,696 3,562 2,976 2,789 1,980 2,796 2,661 3,300 3,804 4,706 Memo: PAT unadj.i 12,315 11,091 2,681 3,544 3,120 2,970 2,110 2,703 2,615 3,663 3,807 4,681 Dividends 5,561 5,230 1,287 1,287 1,357 1,630 1,317 1,252 1,273 1,388 1,308 1,502 Selected industries: Food and kindred products (28 corps.): Sales 52,753 57,149 11,885 12,729 13,663 14,476 13,490 14,117 14,600 14,942 14,762 15,057 Total revenue 53,728 58,156 12,110 12,996 13,939 14,683 13,708 14,356 14,844 15,248 14,993 15,785 Profits before taxes 4,602 5,025 1,046 1,190 1,289 1,077 1,066 1,190 1,385 1,384 1,471 1,507 Profits after taxes 2,298 2,496 529 607 645 517 502 607 919 668 665 778 Memo: PAT unadj.i 2,329 2,601 533 610 646 540 526 615 745 715 667 785 Dividends 1,011 1,100 243 248 253 267 268 271 274 287 307 325 Chemical and allied products (22 corps.): Sales 55,083 57,735 12,507 13,892 14,606 14,078 13,618 14,329 14,660 15,128 15,756 16,081 Total revenue 55,676 58,376 12,667 14,066 14,778 14,165 13,756 14,503 14,791 15,326 15,899 16,242 Profits before taxes 8,263 7,082 1,856 2,293 2,194 1,920 1,647 1,622 1,858 1,955 2,179 2,117 Profits after taxes 4,876 3,889 1,044 1,247 1 ,223 1,362 932 929 1,035 993 1,244 1,208 Div M id e e m n o d : s PAT unadj.i 4 1 , , 7 6 4 4 5 7 4 1 , , 0 7 1 2 5 3 1,0 3 3 8 1 3 1,2 4 4 0 5 5 1,1 4 8 2 0 2 1,2 4 8 3 9 7 9 4 2 3 7 0 4 9 2 3 5 7 1,0 4 2 2 8 9 1,1 4 2 3 3 9 1,2 4 2 4 5 4 1,1 4 5 4 3 8 Petroleum refining (15 corps): Sales 165,150 172,645 36,103 41,362 42,747 44,938 41,988 41,342 43,873 45,442 46,656 46,065 Total revenue 168,680 175,915 36,913 42,261 43,659 45,847 42,851 42,100 44,633 46,331 47,407 46,888 Profits before taxes 30,657 26,305 8,296 7,564 8,339 6,458 6,227 6,612 6,961 6,505 6,254 6,210 Profits after taxes 11,775 8,551 3,098 3,349 3,181 2,147 1,905 2,078 2,300 2,268 2,481 2,383 Memo: PAT unadj.i 11,746 8,712 3,011 3,304 3,132 2,299 1,871 2,040 2,268 2,533 2,512 2,404 Dividends 3,635 3,801 864 853 899 1,019 966 937 949 949 971 1,017 Primary metals and products (23 corps.): Sales 54,044 48,578 11,888 13,976 14,285 13,895 12,482 12,393 12,274 11,429 12,733 14,441 Total revenue 55,048 49,534 12,045 14,171 14,504 14,328 12,782 12,604 12,479 11,669 12,904 14,650 Profits before taxes 5,579 2,921 973 1,586 1,791 1,229 1,015 711 487 708 633 924 Profits after taxes 3,199 1,822 589 927 1,028 655 633 478 396 315 409 603 Memo: PAT unadj.i 3,485 2,003 607 942 1,137 799 639 485 381 498 416 610 Dividends 965 945 221 209 238 297 273 227 216 229 218 227 Machinery (27 corps.) :• Sales 74,032 79,049 16,877 18,867 18,888 19,400 18,315 19,907 19,786 21,041 20,455 21,627 Total revenue 74,864 80,000 17,060 19,055 19,110 19,639 18,535 20,130 19,977 21,358 20,707 22,072 Profits before taxes 7,782 8,735 1,854 2,095 1,985 1,848 1,757 2,105 2,233 2,640 2,469 2,781 Profits after taxes 4,270 4,837 1,018 1,159 1,095 998 986 1,186 1,232 1,433 1,355 1,528 Memo: PAT unadj.i 4,209 4,899 1,008 1,148 1,117 936 990 1,180 1,239 1,490 1,354 1,517 Dividends 1,970 2,031 442 445 480 603 487 489 523 532' 533 577 Motor vehicles and equipment (9 corps.): Sales 80,386 85,863 18,467 20,979 19,443 21,497 18,866 22,275 21,005 23,717 26,395 28,710 Total revenue 80,881 86,475 18,597 21,146 19,593 21,545 19,011 22,341 21,083 24,040 26,702 28,942 Profits before taxes 2,920 3,077 636 1,115 231 938 -98 854 590 1,731 1,794 2,356 Profits after taxes 1,686 1,471 369 657 133 527 -127 451 328 819 1,331 1,668 Memo: PAT unadj. i 1,742 1,604 361 648 147 586 -12 455 280 881 1,337 1,658 Dividends 1,537 1,121 384 382 386 385 294 276 274 277 285 422 ^ Historical data covering revisions for the machinery industry, as NOTE.—Data are obtained from published reports of companies and well as total durables and all manufacturing, are available upon request reports made to the Securities and Exchange Commission. Sales are net from the Capital Markets Section, Division of Research and Statistics, of returns, allowances, and discounts, and exclude excise taxes paid di- Board of Governors of the Federal Reserve System, Washington, D.C. rectly by the company. Total revenue data include, in addition to sales, 20551. income from nonmanufacturing operations and nonoperating income. 1 Profits after taxes unadjusted are as reported by the individual com- Profits are before dividend payments and have been adjusted to exclude panies. These data are not adjusted to eliminate differences in accounting special charges and credits to surplus reserves and extraordinary items not treatments of special charges, credits, and other nonoperating items. related primarily to the current reporting period. Income taxes (not 2 Includes 21 corporations in groups not shown separately. shown) include Federal, State and local government, and foreign. 3 Includes 25 corporations in groups not shown separately. Previous series last published in June 1972 BULLETIN, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 II 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 II 146.2 63.5 82.7 34.4 48.3 Ill 150.2 65.4 84.5 35.4 49.4 NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities 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 rrii ee ee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U ov .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 du N r o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s t her nn CC ii oo cc mm aatt mm iioo uu nn -- ss OOtthheerr ii AA T ( T (SS oo .. .. RR tt AA aa .. .. )) ll 1973 999999...777444 111999...222555 111888...777666 222...777444 111...999666 222...444111 111...666666 111555...999444 222...777666 111222...888555 222111...444000 1974 111111222...444000 222222...666222 222333...333999 333...111888 222...555444 222...000000 222...111222 111777...666333 222...999222 111333...999666 222222...000555 1975 111111222...777888 222111...888444 222666...111111 333...777999 222...555555 111...888444 333...111888 111777...000000 333...111444 111222...777444 222000...666000 1974—H 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 116.22 1975—1 25.82 5.10 5.74 .91 .59 .44 .62 3.84 .58 3.11 4.88 114.57 II 28.43 5.59 6.55 .97 .71 .47 .77 4.15 .79 3.22 5.19 112.46 Ill 27.79 5.16 6.51 .94 .62 .50 .85 4.16 .91 3.14 5.00 112.16 IV 30.74 5.99 7.30 .97 .62 .43 .93 4.85 .85 3.26 5.52 111.80 1976—1 25.87 4.78 6.18 .92 .49 .26 .72 4.18 .62 2.92 4.82 114.72 II 29.70 5.61 7.05 .99 .68 .42 1.02 4.74 .76 3.21 5.21 118.12 Ill 30.41 6.02 7.46 1.04 .64 .26 .95 4.54 .98 3.33 5.19 122.55 IV 2 35.26 7.19 8.69 1.03 .54 .38 .90 5.48 1.14 9. 92 127.87 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 • DECEMBER 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 Q 3f Q 4' Q 1 R Q 2r Q3 p All holders 603,417 682,321 '742,504 785,367 801,546 817,429 839,184 861,735 1- to 4-family 372,793 416,883 449,937 479,983 491,678 503,411 519,553 536,639 Multifamily 82,572 92,877 99,851 100,464 100,348 100,699 100,954 101,828 Commercial 112,294 131,308 146,428 154,736 158,644 160,954 164,428 167,539 Farm 35,758 41,253 '46,288 50,184 50,876 52,365 54,249 55,729 Major financial institutions 450,000 505,400 542.552 569,935 581,296 592,061 609,086 625,971 Commercial banks 1 99.314 119,068 132,105 134,514 136,186 137,986 141,086 143,986 1- to 4-family 57,004 67,998 74,758 76,149 77,018 78,218 80,218 81,928 Multifamily 5,778 6,932 7,619 6,363 5,915 5,515 5,115 5,040 Commercial 31,751 38,696 43,679 45,694 46,882 47,812 49,112 50,251 Farm 4,781 5,442 6,049 6,308 6,371 6,441 6,641 6,767 Mutual savings banks 67,556 73,230 74,920 76,490 77,249 77,738 78,735 79,842 1- to 4-family 46,229 48,811 49,213 49,719 50,025 50,344 50,989 51,705 Multifamily 10,910 12,343 12,923 13,523 13,792 13,876 14,030 14,228 Commercial 10,355 12,012 12,722 13,194 13,373 13,456 13,653 13,845 Farm 62 64 62 54 59 62 63 64 Savings and loan associations 206,182 231,733 249,293 270,600 278,693 286,556 299,574 312,152 1 - to 4-family 167,049 187,750 201.553 218,483 224,710 231,337 241,996 252,531 Multifamily 20,783 22,524 23,683 24,976 25,417 25,847 26,722 27,469 Commercial 18,350 21,459 24,057 27,141 28,566 29,372 30,856 32,152 Life insurance companies 76,948 81,369 86,234 88,331 89,168 89,781 89,691 89,991 1- to 4-family 22.315 20,426 19,026 17,955 17,590 17,321 16,861 16,558 Multifamily 17,347 18,451 19,625 19,703 19,629 19,726 19,374 19,168 C Fa o r m m m ercial 3 5 1 , , 6 6 7 0 8 8 3 5 6 , , 9 4 9 9 6 6 4 6 1 , , 3 2 2 5 7 6 4 6 4 , , 6 0 3 4 1 2 4 6 5 , , 7 1 5 9 3 6 4 6 5 , , 8 9 2 0 7 7 4c6 7 , , 4 0 5 0 6 0 4 7 7 , , 1 1 0 5 9 6 Federal and related agencies 40,157 46,721 58,320 64,464 66,891 67,350 66,192 67,108 Government National Mortgage Association 5,113 4,029 4,846 6,534 7,438 7,619 5,557 5,068 1- to 4-family 2,513 1,455 2,248 3,692 4,728 4,886 3,165 2,486 Multifamily 2,600 2,574 2,598 2,842 2,710 2,733 2,392 2,582 Farmers Home Administration 1,019 1,366 1,432 1,118 1,109 650 830 730 1- to 4-family 279 743 759 343 208 97 228 83 Multifamily 29 29 167 134 215 23 46 27 Commercial 320 218 156 181 190 96 151 112 Farm 391 376 350 460 496 434 405 508 Federal Housing and Veterans Administration 3,338 3,476 4,015 4,681 4,970 5,033 5,270 5,570 1- to 4-family 2,199 2,013 2,009 1,951 1,990 1,908 1,808 1,867 Multifamily 1,139 1,463 2,006 2,730 2,980 3,125 3,462 3,703 Federal National Mortgage Association... 19,791 24,175 29,578 31,055 31,824 32,182 32,028 32,962 1- to 4-family 17,697 20,370 23,778 25,049 25,813 26,262 26,112 27,030 Multifamily 2,094 3,805 5,800 6,006 6,011 5,920 5,916 5,932 Federal land banks 9,107 11,071 13,863 16,043 16,563 17,264 17,978 18,568 1- to 4-family 13 123 406 525 549 563 575 586 Farm 9,094 10,948 13,457 15,518 16,014 16,701 17,403 17,982 Federal Home Loan Mortgage Corporation 1,789 2,604 4,586 5,033 4,987 4,602 4,529 4,210 1- to 4-family 1,754 2,446 4,217 4,632 4,588 4,247 4,166 3,873 Multifamily 35 158 369 401 399 355 363 337 Mortgage pools or trusts2 14,404 18,040 23,799 31,483 34,138 37,684 41,225 44,762 Government National Mortgage Association 5,504 7,890 11,769 16,595 18,257 20,479 23,634 26,834 1- to 4-family 5,353 7,561 11,249 15,946 17,538 19,693 22,821 25,910 Multifamily 151 329 520 649 719 786 813 924 Federal Home Loan Mortgage Corporation 441 766 757 1,323 1,598 1,999 2,153 2,290 1- to 4-family 331 617 608 1,105 1,349 1,698 1,831 1,948 Multifamily 110 149 149 218 249 301 322 342 Farmers Home Administration 8,459 9,384 11,273 13,565 14,283 15,206 15,438 15,638 1- to 4-family 5,017 5,458 6,782 8,563 9,194 9,516 9,670 9,796 Multifamily 131 138 116 296 295 542 541 547 Commercial 867 1,124 1,473 1,765 1,948 2,122 2,104 2,131 Farm 2,444 2,664 2,902 2,941 2,846 3,026 3,123 3,164 Individuals and others3 98,856 112,160 '117,833 119,485 119,221 120,334 122,681 123,894 1- to 4-family 45,040 51,112 53,331 55,871 56,378 57,321 59,113 60,338 Multifamily 21,465 23,982 24,276 22,623 22,017 21,950 21,858 21,529 Commercial 19,043 21,303 23,085 22,719 22,489 22,189 22,096 21,892 Farm 13,308 15,763 '17,141 18,272 18,337 18,874 19,614 20,135 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

DECEMBER 1976 • REAL ESTATE CREDIT A43 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION- SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage EEEnnnddd ooofff holdings transactions commitments holdings transactions commitments pppeeerrriiioooddd (during period) (during period) Total i F su H in r A e - d - a g n V u t A a e r e - - d c P h u as r e - s Sales p d M e u r r a i i d o n e d g st O i a n n u g d t - - Total 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 s O t i a n u n g t d - - 1971 111777,,,777999111 111222,,,666888111 555,,,111111000 333,,,555777444 333366 999,,,888222888 666,,,444999777 996688 882211 114477 777788 6644 118822 119977 22 111999,,,777999111 111444,,,666222444 555,,,111111222 333,,,666999999 221111 888,,,777999777 888,,,111222444 11,,778899 11,,550033 228866 11,,229977 440099 1,606 119988 119977 33 222444,,,111777555 111666,,,888555222 666,,,333555222 666,,,111222777 7711 888,,,999111444 777,,,888888999 22,,660044 11,,774433 886611 11,,333344 440099 1,629 118866 119977 44 222999,,,555777888 111999,,,111888999 888,,,333111000 666,,,999555333 55 111000,,,777666555 777,,,999666000 44,,558866 11,,990044 22,,668822 22,,119911 5522 4,553 22,,339900 119977 55 333111,,,888222444 111999,,,777333222 999,,,555777333 444,,,222666333 22 666,,,111000666 444,,,111222666 44,,998877 11,,882244 33,,116633 11,,771166 11,,002200 982 111111 11997755——OOcctt...... 333111,,,333777333 111999,,,666444111 999,,,333000999 555000888 222888222 444,,,666888555 55,,111199 11,,884433 33,,227766 117766 5599 45 220011 NNoovv...... 333111,,,555555222 111999,,,666444888 999...444333000 333777222 333333222 444,,,333888555 44,,997711 11,,883344 33,,113377 110044 222255 50 112244 DDeecc...... 333111,,,888222444 111999,,,777333222 999,,,555777333 444555111 555111777 444,,,111222666 44,,998877 11,,882244 33,,116633 6699 3300 71 111111 11997766——JJaann.... .. 333111,,,777777222 111999,,,666777444 999,,,555555444 777666 111888999 333,,,111777000 44,,995588 11,,881166 33,,114422 4477 5577 42 9999 FFeebb...... 333111,,,666111888 111999,,,555444111 999,,,555222111 555666 5555 333555555 333,,,222000111 44,,668866 11,,880022 22,,888844 5511 229966 43 8877 MMaarr.. .. 333111,,,444888222 111999,,,444333111 999,,,444777333 888555 2222 444000555 333,,,111222000 44,,660022 11,,778877 22,,881155 9955 9988 93 112288 AApprr...... 333111,,,333888999 111999,,,333666888 999...444333111 111000333 118844 222111333 222,,,777888888 44,,552200 11,,776688 22,,775522 4433 8866 209 228899 MMaayy.... 333222,,,000555222 111999,,,222999666 999...333999000 888777777 111,,,333000555 333,,,777333222 44,,448866 11,,775522 22,,773355 7733 6644 178 337766 JJuunnee.... 333222,,,000222888 111999,,,222333888 999...333999111 222444000 888555777 444,,,111555333 44,,552299 11,,772299 22,,880011 116633 7755 72 228855 JJuullyy.. .. 333222,,,000111111 111999,,,111888444 999,,,333888888 222111000 559977 555888444 444,,,222444555 44,,555511 11,,771133 22,,883388 115522 8844 39 115544 AAuugg...... 333222,,,000666999 111999,,,111888000 999,,,333999444 222777777 668899 444999222 444,,,333333555 44,,331100 11,,669955 22,,661144 7777 227788 117 117755 SSeepptt...... 333222,,,000666222 111999,,,111333333 999,,,333666666 111999999 444666333 333,,,999888333 44,,226699 11,,667799 22,,559900 8888 9933 163 224433 OOcctt...... 333222,,,000111999 111999,,,000777777 999,,,333111444 111666222 444888000 333,,,666777222 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 June 28 July 12 July 26 Aug. 9 Aug. 23 Sept. 7 Sept. 20 Oct. 4 Oct. 18 Nov. 1 Nov. 15 Nov. 30 Amounts (millions of dollars): Govt.-underwritten loans Offered i 261.2 148.3 311.8 190.1 171.3 121.9 99.1 124.3 111.2 215.3 218.9 59.9 Accepted 157.5 88.4 212.0 107.4 107.0 68.8 49.1 61.8 45.3 73.2 114.2 33.7 Conventional loans Offered i 93.6 90.7 130.5 136.7 162.1 170.6 151.1 153.8 143.7 141.7 140.9 70.7 Accepted 59.2 82.0 105.2 93.4 115.3 117.8 107.6 94.4 121.4 112.2 126.5 58.2 Average yield (per cent) on shortterm commitments 2 Govt.-underwritten loans 9.12 9.05 9.04 9.01 8.97 8.92 8.84 8.80 8.70 8.67 8.68 8.63 Conventional loans 9.31 9.27 9.23 9.17 9.14 9.13 9.09 9.07 9.02 9.00 9.00 8.99 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 • DECEMBER 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 13.0 Savings and loan assns., Lif V F e A H i n A s urance cos 2 1 9 2 . . 9 9 2 1 9 2 . . 9 7 2 1 9 2 . . 9 5 3 1 0 2 . . 2 2 3 1 0 2. .4 1 3 1 0 1. .6 8 11.6 FHA 8.7 8.6 8.4 8.2 8.1 7.9 7.8 VA 4.2 4.2 4.1 4.0 4.0 3.9 3.8 Others 57.4 59.9 61.6 62.2 65.7 67.8 FHA VA NOTE.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages TToottaall aammoouunntt PPeerriioodd NNuummbbeerr ccoommmmiitttteedd Loan Contract Loanooff llooaannss ((mm dd ii oo llll ll ii ll oo aa nn rrss ss )) ooff ( o t f a h m o d u o o s l u l a a n n r t d s s ) (p in e r r te a r c te e e s n t t ) (y M rs a . t / u m r o it s y .) (p t e o r r - a v t c a i e o l n u t e ) C ( a p 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 ge P co er n s c t e a n n t t 1972 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 1973 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 10.0 1974 1,166 2,603.0 2,232 9.47 21/3 74.3 10.1 1 .29 10.6 1975 599 1,717.0 2,866 10.22 21/9 73.8 10.8 1.33 11.2 1975—Apr 32 108.4 3,386 10.02 23/0 75.6 10.8 1.36 10.8 May 73 227.5 3,116 10.23 20/9 74.7 10.8 1.30 11.1 June 61 167.5 2,745 10.11 21/9 73.0 10.5 1.29 11.2 July 53 178.6 3,370 10.19 20/7 74.6 10.9 1.31 11.3 Aug 44 106.5 2,420 10.26 21/2 72.7 10.8 1.32 11.4 Sept 57 123.8 2,172 10.24 22/8 73.6 10.7 1.37 11.1 Oct 57 144.7 2,538 10.29 20/10 74.3 10.7 1 .28 11.3 Nov 47 252.8 5,378 10.24 22/7 72.7 10.9 1 .35 11.2 Dec 52 159.4 3,065 10.15 23/4 73.7 11.0 1.34 11 .0 1976—Jan 32 99.2 3,099 10.25 20/11 74.3 10.7 1.29 11.2 Feb 40 140.2 3,506 10.08 20/6 74.2 10.5 1.26 11.0 Mar 71 294.6 4,150 10.04 21/11 73.8 10.6 1.30 11.0 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

DECEMBER 1976 • REAL ESTATE CREDIT AND CONSUMER CREDIT 45 TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms i Yields (per cent) in insured primary market loans—Yield Period in private C ra o c t n e e n tr ( t p a ) e c r t (p F c e e h r e a s c r e g a n e n s t d ) 2 M (y a e tu ar r s i ) t y L (p o e a r r n a / t c p i e o r n i t c ) e p o r P f i c u e d r o c ( l h t l h a a o r se s u ) 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 se m c a o r n k d e a t r 5 y 197 1 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 197 2 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.53 197 3 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 197 4 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 197 5 8.75 1.54 26.8 76.1 44.6 33.3 9.01 9.10 9.19 1975—Oct.. 8.75 1.59 27.3 77.5 43.9 33.2 9.01 9.25 9.53 Nov.. 8.74 1.65 27.6 76.5 46.4 34.8 9.01 9.20 9.41 Dec.. 8.74 1.65 27.8 76.9 45.9 34.7 9.01 9.15 9.32 1976—Jan.. 8.71 1.74 27.4 76.9 47.2 35.4 8.99 9.05 9.06 Feb.. 8.67 1 .56 26.0 75.1 45.2 33.4 8.93 9.00 9.04 Mar., 8.67 1.60 27.1 76.4 46.8 35.0 8.93 8.95 Apr.. 8.67 1.52 27.3 75.3 48.5 35.8 8.92 8.90 8.82 May. 8.75 1 .35 26.5 77.5 46.3 35.3 8.97 9.00 9.03 June. 8.69 1 .27 26.5 75.1 48.9 36.2 8.89 9.05 9.05 July. 8.76 1 .29 27.1 75.8 49.4 36.7 8.97 9.05 8.99 A Se u p g t . . . , 8 8 . . 8 7 5 9 1 1 . . 3 4 8 2 2 2 7 7. . 7 8 7 7 5 5 . . 8 6 r4 5 9 0 . . 6 6 3 3 6 7 . . 8 4 9 9. . 0 0 8 2 9 9 . . 0 0 5 0 8 8 . . 8 9 2 3 Oct.? 8.86 1.38 27.9 75.2 48.2 35.5 9.08 9.00 8.55 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 Month New Mobile Other Personal Credit- Automobiles Other automo- homes consumer loans card Mobile consumer Personal biles (84 mos.) goods (12 mos.) plans homes goods loans (36 mos.) (24 mos.) New Used 1974—Oct. 11.53 11.94 13.28 13.60 17.17 12.97 17.78 21.11 N D o ec v . . 1 11 1 . .6 57 2 1 1 1 1 . . 7 8 1 7 1 1 3 3 . . 2 1 7 6 1 1 3 3 . .4 6 7 0 1 17 7 . . 2 1 1 6 1 1 3 3 . .0 1 6 0 1 1 7 7 . .8 8 8 9 13.60 19.49 1975—Jan.. 11.61 11.66 13.28 13.60 17.12 13.08 17.27 13.60 19.80 21.09 M Fe a b r . . 1 11 1 . . 5 4 1 6 1 1 1 2 . . 6 14 6 1 1 3 3 . . 0 2 7 0 1 1 3 3 . . 4 4 0 4 1 1 7 7 . . 1 2 5 4 1 1 3 3 . . 0 0 7 7 1 17 7 . . 5 3 2 9 13.59 'io.'oo' 'io.'si' Apr. 11.44 11.78 13.22 13.55 17.17 13.07 17.58 May 11.39 11.57 13.11 13.41 17.21 13.09 17.65 13.57 19.63 20.72 June 11.26 12.02 13.10 13.40 17.10 13.12 17.67 J A u u l g y . . 1 1 1 1 . . 3 3 1 0 1 1 1 1 . . 8 94 0 1 1 3 3 . . 0 1 5 3 1 1 3 3 . . 3 4 7 9 1 1 7 7 . . 1 1 5 4 1 1 3 3 . . 0 1 9 0 1 1 7 7 . . 6 7 9 0 i 3 !78 19! 87 '20 .'93' Sept. 11.33 11.99 13.06 13.41 17.14 13.18 17.73 13.78 19.69 21.16 O N c o t v . . . 1 1 1 1 . . 2 2 4 4 1 1 1 2 . . 7 0 6 5 1 1 2 3 . . 9 0 6 0 1 1 3 3. . 3 4 8 0 1 1 7 7. . 1 0 1 6 1 1 3 3. . 1 1 5 7 1 1 7 7 . . 7 8 9 2 i 3! 43 ' 1*9.' 66' *2i:09' Dec. 11.25 11.83 13.11 13.46 17.13 13.19 17.86 1976—Jan.. 11 .21 11 .76 13.14 13.40 17.08 13.18 17.25 Feb. 11.18 11.77 13.02 13.24 17.14 13.14 17.37 13.18 19.58 21.13 Mar. 11.13 11.82 13.02 13.13 16.99 13.13 17.48 Apr. 11.08 11.66 12.95 13.16 17.04 13.13 17.58 May 11.00 11.61 12.96 13.27 17.02 13.15 17.64 13.35 19.37 20.87 June 11.02 11.82 12.99 13.32 17.04 13.17 17.68 July. 11.06 11.80 13.02 13.38 16.91 13.16 17.71 Aug. 11.07 11.84 13.02 13.31 17.10 13.18 17.71 ii.59 *i9*5i * '20.'86' Sept. 11.07 11.88 13.08 13.40 17.02 13.21 17.75 Oct.. 11.04 11.63 13.03 13.26 17.05 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 • DECEMBER 1976 INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1976 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 1973 1974 1975 Apr. May June July Aug. Sept. Oct. Amounts outstanding (end of period) Total 146,434 155,384 162,237 162,334 164,101 166,664 168,674 171,160 172,918 173,930 By holder: Commercial banks 71,871 75,846 78,703 78,982 79,785 80,850 81,930 82,961 83,714 84,152 35,404 36,208 36,695 36,745 37,022 37,490 38,026 38,398 38,575 38,809 19,609 22,116 25,354 26,403 26,975 27,842 28,234 28,956 29,600 29,711 Retailers1 16,395 17,933 18,002 16,448 16,465 16,633 16,660 16,911 17,012 17,205 Others2 3,155 3,281 3,483 3,756 3,854 3,849 3,824 3,934 4,017 4,053 By type of credit: Automobile, total 50,065 50,392 53,028 54,572 55,484 56,667 57,659 58,665 59,270 59,717 Commercial banks 31,502 30,994 31,534 32,162 32,664 33,269 33,877 34,414 34,701 35,009 Purchased 18,997 18,687 18,353 18,472 18,671 18,912 19,151 19,404 19,495 19,611 Direct 12,505 12,306 13,181 13,690 13,993 14,358 14,726 15,010 15,206 15,398 Finance companies 10,718 10,618 11,439 11,903 12,080 12,333 12,573 12,748 12,808 12,901 Credit unions 7,456 8,414 9,653 10,051 10,269 10,601 10,749 11,024 11,270 11,311 Others 389 366 402 456 471 464 460 479 491 496 Mobile homes: Commercial banks 8,340 8,972 8,704 8,439 8,408 8,390 8,384 8,379 8,340 8,294 Finance companies 3,358 3,524 3,451 3,351 3,336 3,343 3,333 3,323 3,319 3,309 Home improvement, total 6,950 7,754 8,004 8,089 8,209 8,367 8,452 8,562 8,665 8,726 Commercial banks 4,083 4,694 4,965 4,978 5,048 5,129 5,192 5,263 5,318 5,359 Revolving credit: Bank credit cards 6,838 8,281 9,501 9,343 9,402 9,531 9,725 9,924 10,153 10,232 Bank check credit 2,254 2,797 2,810 2,775 2,777 2,805 2,835 2,870 2,922 2,933 All other, total 68,629 73,664 76,738 75,765 76,485 77,561 78,286 79,438 80,249 80,719 Commercial banks, total 18,854 20,108 21,188 21,285 21,486 21,726 21,917 22,112 22,280 22,325 Personal loans 12,873 13,771 14,629 14,743 14,871 15,034 15,148 15,308 15,450 15,534 Finance companies, total 20,914 21,717 21,655 21,350 21,466 21,675 21,983 22,192 22,316 22,469 Personal loans 16,483 16,961 17,681 17,528 17,631 17,811 18,079 18,275 18,371 18,509 Credit unions 11,564 13,037 14,937 15,557 15,894 16,402 16,635 17,060 17,438 17,505 Retailers 16,395 17,933 18,002 16,448 16,465 16,633 16,660 16,911 17,012 17,205 Others 902 869 956 1,125 1,174 1,125 1,091 1,163 1,203 1,215 Net change (during period) 3 Total 19,676 8,952 6,843 1,427 1,474 1,330 1,303 1,403 1,481 1,564 By holder: Commercial banks 11,001 3,975 2,851 575 713 409 619 518 697 671 Finance companies 4,006 806 483 326 157 230 264 169 233 317 Credit unions 2,696 2,507 3,238 392 521 482 365 386 483 280 Retailers 1,632 1,538 69 177 5 214 116 183 24 263 Others 341 126 202 -42 78 -5 -61 148 45 33 By type of credit: Automobile, total 5,968 327 2,631 732 652 526 556 621 605 528 Commercial banks 4,197 -508 535 356 340 229 327 377 376 350 Purchased 2,675 -310 -340 162 110 32 60 159 125 117 Direct 1,523 -198 875 194 230 197 267 218 251 233 Finance companies 740 -100 821 224 122 116 108 62 28 77 Credit unions 1,024 958 1,239 151 181 186 135 136 172 105 Other 7 -23 36 2 9 -4 -13 46 28 -4 Mobile homes: Commercial banks 1,933 632 -268 -52 -37 -42 -28 -35 -53 -56 Finance companies 444 168 -73 -11 -17 * -9 -16 -16 -16 Home improvement, total 1,033 804 248 39 70 79 19 39 65 73 Commercial banks 482 611 271 26 36 29 22 25 43 44 Revolving credit: Bank credit cards 1,430 1,443 1,220 139 193 98 171 86 166 123 Bank check credit 478 543 14 35 44 14 27 -6 17 27 All other, total 8,389 5,036 3,072 546 570 655 567 714 698 884 Commercial banks, total 2,480 1,255 1,080 70 138 81 101 71 148 183 Personal loans 1,492 898 858 69 112 86 70 46 108 161 Finance companies, total 2,564 803 -64 119 53 115 170 126 223 258 Personal loans 1,746 479 717 116 21 95 143 106 198 237 Credit unions 1,591 1,473 1,900 228 326 282 220 240 297 166 Retailers 1,632 1,538 69 177 5 214 116 183 24 263 Others 122 -33 87 -49 48 -38 -39 96 5 15 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

DECEMBER 1976 • CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND LIQUIDATIONS (In millions of dollars) 1976 Holder, and type of credit 1973 1974 1975 Apr. May June July Aug. Sept. Oct. Extensions1 Total 160,228 160,008 163,483 15,003 15,041 15,592 15,240 15,685 15,775 16,055 By holder: Commercial banks 72,216 72,605 77,131 6,989 7,223 7,289 7,358 7,487 7,546 7,618 Finance companies 38,922 35,644 32,582 2,913 2,776 2,986 2,861 2,965 3,072 3,148 Credit unions 21,143 22,403 24,151 2,386 2,448 2,456 2,329 2,313 2,424 2,350 Retailers2 25,440 27,034 27,049 2,544 2,313 2,650 2,533 2,548 2,463 2,673 Others 3 2,507 2,322 2,570 171 280 211 159 372 271 266 By type of credit: Automobile, total 46,105 43,209 48,103 4,583 4,471 4,600 4,477 4,712 4,769 4,587 Commercial banks 29,369 26,406 28,333 2,677 2,616 2,660 2,680 2,762 2,846 2,770 Purchased 17,497 15,576 15,761 1,475 1,413 1,386 1,417 1,480 1,511 1,479 Direct 11,872 10,830 12,572 1,202 1,204 1,274 1,263 1,282 1,335 1,291 Finance companies 9.303 8,630 9,598 975 914 935 891 937 891 904 Credit unions 7; 009 7,788 9,702 891 892 968 879 928 963 875 Others 424 385 470 40 49 36 27 84 69 37 Mobile homes: Commercial banks 4,438 3,486 2,681 186 182 204 223 186 200 178 Finance companies 1,573 1,413 111 61 49 68 59 54 53 59 Home improvement, total... 4,414 4,571 4,398 413 385 410 381 400 434 463 Commercial banks 2,487 2,789 2,122 259 233 235 240 242 266 282 Revolving credit: Bank credit cards 13,863 17,098 20,428 1,985 2,103 2,088 2,152 2,183 2,165 2,198 Bank check credit 3,373 4,227 4,024 394 422 435 401 413 375 413 All other, total 86,462 86,004 83,079 7,382 7,429 7,786 7,546 7,737 7,779 8,158 Commercial banks, total. 18,686 18,599 18,944 1,489 1,667 1,666 1,661 1,702 1,693 1,777 Personal loans 12,928 13,176 13,386 1,081 1,203 1,221 1,174 1,197 1,193 1,286 Finance companies, total 27,627 25,316 22,135 1,874 1,810 1,981 1,907 1,970 2,125 2,182 Personal loans 17,885 16,691 17,333 1,545 1,465 1,641 1,535 1,607 1,745 1,776 Credit unions 13,768 14,228 13,992 1,446 1,511 1,440 1,403 1,338 1,410 1,426 Retailers 25,440 27,034 27,049 2,544 2,313 2,650 2,533 2,548 2,463 2,673 Others 941 827 959 29 127 50 43 180 87 100 Liquidations1 Total 140,552 151,056 156,640 13,576 13,566 14,261 13,937 14,282 14,294 14,491 By holder: Commercial banks 61,215 68,630 74,280 6,414 6,510 6,879 6,739 6,970 6,849 6,947 Finance companies 34,916 34,838 32,099 2,587 2,619 2,756 2,597 2,796 2,839 2,831 Credit unions 18,447 19,896 20,913 1,994 1,927 1,974 1,964 1,927 1,941 2,070 Retailers2 23,808 25,496 26,980 2,367 2,308 2,436 2,417 2,365 2,439 2,410 Others 3 2,166 2,196 2,368 214 202 216 220 224 226 233 By type of credit: Automobile, total 40,137 42,883 45,472 3,851 3,819 4,074 3,922 4,090 4,165 4,059 Commercial banks 25,172 26,915 27,798 2,321 2,276 2,432 2,354 2,385 2,470 2,420 Purchased 14,823 15,886 16,101 1,313 1,303 1,354 1,357 1,321 1,386 1,363 Direct 10,349 11,029 11,697 1,008 973 1 ,077 996 1,064 1,084 1,058 Finance companies 8,563 8,730 8,777 751 792 819 784 874 862 827 Credit unions 5,985 6,830 8,463 740 711 783 745 792 791 770 Others 417 408 434 39 39 40 39 39 42 42 Mobile homes: Commercial banks 2,505 2,854 2,949 237 219 247 251 222 253 233 Finance companies 1,129 1,245 844 72 67 68 68 70 69 74 Home improvement, total... 3,381 3,767 4,150 374 314 330 362 361 369 390 Commercial banks 2,005 2,178 2,451 232 197 206 218 216 223 239 Revolving credit: Bank credit cards 12,433 15,655 19,208 1,846 1,911 1,990 1,981 2,097 2,000 2,074 Bank check credit 2,894 3,684 4,010 359 378 421 374 419 358 386 All other, total 78,072 80,969 80,007 6,836 6,859 7,132 6,979 7,023 7,081 7,274 Commercial banks, total. 16,205 17,345 17,864 1,418 1,529 1,585 1,560 1,631 1,545 1,594 Personal loans 11,435 12,278 12,528 1,012 1,091 1,135 1,104 1,151 1,085 1,125 Finance companies, total 25,063 24,513 22,199 1,756 1,758 1,866 1,737 1,844 1,902 1,924 Personal loans 16,139 16,212 16,616 1,429 1,445 1,546 1,392 1,501 1,547 1,539 Credit unions 12,177 12,755 12,092 1,218 1,185 1,158 1,183 1,098 1,113 1,260 Retailers 23,808 25,496 26,980 2,367 2,308 2,436 2,417 2,365 2,439 2,410 Others 819 860 872 77 79 87 82 85 82 86 1 Monthly figures are seasonally adjusted. 3 Mutual savings banks, savings and loan associations, and auto dealers. 2 Excludes 30-day charge credit held by retailers, oil and gas companies and travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 INDUSTRIAL PRODUCTION • DECEMBER 1976 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 11996677 11997755 1975 1976 pprroo-- aavveerr-- GGrroouuppiinngg ppoorr-- aaggee ttiioonn Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.f Nov.e Major market groupings 100.00 117.8 123.5 124.4 125.7 127.3 128.1 128.4 129.6 130.1 130.7 131.3 130.9 130.4 132.0 Products, total 60.71 119.3 123.8 124.9 126.0 127.4 128.1 128.0 128.9 129.5 129.8 130.3 130.0 129.6 131.5 Final products 47.82 118.2 122.3 123.5 123.9 125.3 126.4 126.3 127.3 127.6 127.6 128.3 127.5 127.3 129.5 Consumer goods 27.68 124.0 131.1 132.3 133.1 134.9 136.1 136.1 137.4 137.8 136.8 137.5 136.2 136.5 138.9 Equipment 20.14 110.2 110.0 111.5 111.2 112.1 112.9 112.9 113.5 113.8 114.9 115.7 115.5 114.7 116.6 Intermediate products 12.89 123.1 129.3 129.9 133.6 135.3 134.9 134.7 135.0 135.9 137.6 137.8 139.0 138.3 139.2 Materials 39.29 115.5 123.1 123.3 125.3 127.3 128.2 129.2 130.6 131.1 132.2 133.0 132.4 131.7 133.0 CONSUMER GOODS Durable consumer goods 7.89 121.4 132.5 134.0 134.7 137.9 140.3 141.1 143.2 144.2 141.8 143.7 138.5 138.1 144.6 Automotive products 2.83 125.9 143.2 147.7 142.8 148.9 155.2 155.2 154.0 156.6 155.9 158.4 146.5 146.4 161.9 Autos and utility vehicles 2.03 113.7 134.7 140.0 133.4 142.0 149.5 152.1 153.4 156.6 155.9 158.2 137.8 136.8 156.9 Autos 1.90 101.1 120.9 122.8 118.9 125.8 133.6 134.3 134.3 137.5 135.0 137.7 120.9 121.5 139.1 Auto parts and allied goods .80 156.6 164.9 167.0 167.4 166.5 169.5 163.1 155.6 156.9 156.0 158.4 168.6 170.2 175.0 Home goods 5.06 118.8 126.5 126.4 130.3 131.7 132.0 133.1 137.2 137.4 133.8 135.6 134.0 133.4 134.8 Appliances, A/C, and TV 1.40 98.0 100.9 101.1 107.8 112.6 114.6 117.2 123.5 123.8 110.3 119.1 112.8 112.8 113.3 1.33 100.2 103.7 104.4 110.6 115.2 117.1 119.6 126.4 126.7 114.1 121.9 116.5 116.5 1.07 126.8 144.7 142.0 144.8 145.6 141.4 143 0 142.6 142.5 142.0 145.0 146.3 146.5 Misc. home goods 2.59 126.9 132.9 133.6 136.6 136.3 137.9 137.8 142.5 142.6 143.0 140.7 140.5 139.4 141.1 Nondurable consumer goods 19.79 125.1 130.6 131.5 132.5 133.9 134.4 134.0 135.1 135.1 134.8 134.9 135.3 135.8 136.6 Clothing 4.29 111.6 123.2 123.9 127.4 127.6 130.1 129 6 132.1 127.9 126.3 123.2 123.3 Consumer staples 15.50 128.8 132.5 133.6 133.9 135.7 135.6 135.2 135.8 137.1 137.2 138.1 138.7 139.1 139.8 Consumer foods and tobacco. . . 8.33 122.8 127.6 127.2 128.5 129.9 129.0 128.4 129.8 130.8 131.4 131.9 133.1 134.0 Nonfood staples 7.17 135.8 138.2 141.0 140.2 142.3 143.3 143.3 142.7 144.5 143.9 145.3 145.3 144.9 145.9 Consumer chemical products.. 2.63 151.3 157.8 159.7 157.3 161.1 163.6 162.1 161 .4 165.4 166.2 168.8 169.2 168.5 Consumer paper products 1.92 107.0 107.5 113.4 113.3 113.9 113.4 114.2 113.8 112.3 112.8 113.9 112.5 112.1 Consumer energy products 2.62 141.6 140.9 142.8 142.4 144.3 145.0 145.9 145.1 147.2 144.1 144.8 145.2 145.4 Residential utilities 11..4455 115522..33 115522..00 115522..00 115544..55 115533..77 115533..77 115544..55 115544..77 153.2 150.4 EQUIPMENT Business equipment 12.63 128.2 129.6 131.6 131.0 132.6 134.0 134.1 134.6 135.0 136.9 137.7 137.6 136.4 139.3 Industrial equipment 6.77 121.2 123.0 124.5 123.5 124.0 125.6 125.3 126.9 127.4 127.5 128.1 129.8 130.7 131.5 Building and mining equip 1.44 168.3 174.9 172.9 171.4 171.5 172.1 170.7 174.6 174.9 176.9 179.8 180.4 178.8 180.8 3.85 99.9 99.9 101.3 101.2 102.7 104.4 105.4 106.4 106.5 107.2 107.2 108.6 109.7 110.2 Power equipment 1.47 130.8 132.3 137.6 134.6 133.1 135.6 132.7 134.0 135.4 132.6 132.0 135.6 138.5 139.0 Commercial transit, farm equip.... 5.86 136.3 137.2 139.7 139.7 142.4 143.7 144.6 143.7 143.8 147.7 148.7 146.7 142.9 148.4 Commercial equipment 3.26 157.8 159.5 164.4 165.0 166.6 168.5 170.0 169.5 171 .4 174.1 176.2 176.8 177.9 178.9 Transit equipment 1.93 101.9 102.8 102.9 100.2 103.7 104.7 105.6 104.2 102.9 107.6 106.6 101.0 98.5 103.0 .67 130.6 127.7 125.6 131.5 135.3 134.7 132.7 133.1 128.0 135.3 136.8 131.4 101.0 Defense and space equipment 7.51 80.0 77.3 77.7 78.0 77.6 77.4 77.3 78.2 78.3 78.0 78.6 78.5 78.5 78.7 INTERMEDIATE PRODUCTS Construction supplies 6.42 116.3 123.1 124.1 126.8 129.6 128.7 128.0 130.9 131.8 133.1 134.1 134.3 133.9 134.9 Business supplies 6.47 129.8 135.4 135.9 140.3 140.9 141.2 141.3 139.0 140.1 142.1 141.5 143.7 142.6 Commercial energy products 11..1144 115500..66 114499..88 114477..99 115588..11 115544..00 115577..66 115566..88 157.1 156.1 115599..11 115566..44 115555..22 115555..11 MATERIALS Durable goods materials 20.35 109.1 115.2 115.5 118.3 121.6 122.4 124.5 126.8 127.0 130.6 131.4 130.0 129.0 130.7 Durable consumer parts 4.58 97.7 109.3 111.6 111.7 116.7 118.5 119.2 123.0 123.1 126.1 125.1 122.7 120.8 126.3 Equipment parts 5.44 118.9 122.3 123.9 125.7 127.5 128.5 130.5 133.0 134.0 136.3 138.0 138.3 138.2 139.0 Durable materials n.e.c 10.34 109.0 114.0 112.9 117.4 120.7 121.0 123.5 125.2 125.0 129.8 130.6 128.7 127.8 128.3 Basic metal materials 5.57 99.1 99.5 96.1 101.9 105.1 104.0 107.8 113.2 111.3 117.5 120.0 113.9 111.7 Nondurable goods materials 10.47 126.6 141.3 142.6 142.9 145.5 146.7 146.9 146.2 147.5 146.0 146.1 148.0 147.5 148.4 Textile, paper, and chem. mat 7.62 129.0 146.2 147.9 147.5 150.5 152.7 152.2 150.9 151 .8 150.5 150.6 152.7 152.6 153.2 Textile materials 1.85 100.6 118.4 118.9 117.8 116.2 115.5 114.1 116.4 116.1 114.7 114.9 114.8 115.1 Paper materials 1.62 113.2 124.4 125.9 126.5 130.0 130.1 132.1 131.2 134.2 132.1 132.7 131.0 131.3 Chemical materials 4.15 147.9 167.2 169.5 168.9 173.9 178.0 177.2 173.9 174.7 173.8 173.4 178.1 177.9 Containers, nondurable 1.70 127.9 134.8 136.1 139.0 142.2 141.3 141.9 140.7 146.6 142.8 143.2 144.2 142.5 Nondurable materials n.e.c 1.14 108.3 118.4 116.7 118.3 117.3 115.1 120.4 123.2 119.6 120.4 121.2 121.9 121.0 Energy materials 8.48 117.2 119.7 118.7 120.6 118.8 119.6 118.8 120.6 120.6 119.5 120.5 119.1 119.0 119.7 Primary energy 4.65 108.3 110.5 107.3 107.7 105.4 106.2 105.0 106.2 107.5 106.9 107.9 107.3 107.7 Converted fuel materials 33..8822 112288..00 113300..88 113322..33 113366..33 113355..22 113366..00 113355..77 138.1 136.7 134.6 113366..00 113333..55 113322..99 SUPPLEMENTARY GROUPS Home goods and clothing 9.35 115.5 125.0 125.2 129.9 129.8 131.1 131.5 134.9 133.0 130.3 129.9 129.1 129.0 130.4 12.23 125.5 127.1 126.6 128.8 127.5 128.6 128.2 129.3 129.7 128.4 129.0 128.1 127.9 128.8 Products 3.76 144.3 143.7 144.5 147.2 147.1 148.8 149.3 148.8 149.9 148.7 148.2 148.2 148.3 149.4 Materials 8.48 117.2 119.7 118.7 120.6 118.8 119.6 118.8 120.6 120.6 119.5 120.5 119.1 119.0 119.7 For NOTES see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • INDUSTRIAL PRODUCTION A49 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 11996677 1975 1976 SSIICC pprroo-- 11997755 GGrroouuppiinngg ccooddee ppoorr-- aavveerr-ttiioonn aaggee Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.p Nov.e Gross value of products in market structure (Annual rates, in billions of 1972 dollars) PPrroodduuccttss,, ttoottaall 1286.3 505.9 527.1 528.4 531.9 544.3 546.0 545.0 551.5 552.4 552.7 556.4 551.4 548.0 559.8 FFiinnaall pprroodduuccttss 1227.4 393.3 409.7 410.6 410.9 421.7 423.0 421.8 427.5 428.3 427.8 431.3 424.9 422.2 432.5 CCoonnssuummeerr ggooooddss 1156.3 274.4 290.5 292.0 292.3 300.6 299.7 299.9 303.7 305.5 302.2 304.6 301.6 300.9 308.4 EEqquuiippmmeenntt 165.3 119.0 119.3 118.9 119.1 121.1 123.6 122.1 123.7 123.1 125.8 126.7 123.3 121.3 124.5 IInntteerrmmeeddiiaattee pprroodduuccttss 164.9 112.6 117.6 117.9 120.8 122.8 122.6 123.0 123.7 124.1 124.7 125.1 126.8 125.9 127.1 Major industry groupings Mining and utilities. 12.05 128.5 130.5 129.2 131.8 131.5 131.6 131.2 132.0 131.9 130.6 131.8 131.6 132.4 132.5 Mining 6.36 112.8 114.2 112.9 113.6 112.7 113.9 113.5 113.0 114.4 112.5 114.4 114.7 115.8 115.0 Utilities 5.69 146.0 148.8 147.2 152.0 152.5 151.4 150.8 153.0 151 .2 150.8 151.3 150.4 150.9 151.9 Electric 3.88 160.8 165 5 162.3 167.4 168.7 167.3 165.7 169.8 167.2 167.2 Manufacturing. 87.95 116.3 122.7 123.6 125.2 127.0 127.9 128.5 129.6 130.2 131.0 131.6 130.7 129.9 131.7 Nondurable. 35.97 126.4 136.2 136.9 138.4 140.2 140.7 140.7 140.9 141.3 141.1 140.9 142.4 141.9 142.5 Durable 51.98 109.3 113.4 114.4 115.8 117.9 119.0 120.1 121.7 122.3 124.2 125.1 122.5 121.6 124.4 MINING Metal mining 10 .51 115.8 118.1 117.9 122.2 124.2 122.3 124.3 118.3 118.3 121.6 127.5 123.6 127.2 Coal 11,12 .69 113.4 125.6 109.9 111.2 109.6 114.4 114.4 119.2 122.7 104.8 112.6 121.3 130.3 125.1 Oil and gas extraction 13 4.40 113.3 112.3 113.1 112.5 110.1 111.9 111.3 110.8 112.3 112.0 112.3 112.0 111.8 111.3 Stone and earth minerals. 14 .75 107.0 112.1 111 .5 117.1 120.0 119.3 117.5 116.7 116.5 116.5 119.0 118.1 118.4 NONDURABLE MANUFACTURES Foods 20 8.75 123.4 128.8 128.5 129.2 130.8 128.3 129.2 131.2 130.5 131.8 133.4 134.8 134.6 Tobacco products 21 .67 111.8 118.5 116.0 117.3 118.8 122.4 115.4 114.5 115.4 114.5 114.8 115.4 Textile mill products 22 2.68 122.3 141.6 139.0 137.6 138.7 136.4 135.7 138.0 138.1 136.8 135.1 135.8 136.1 Apparel products 23 3.31 107.6 118.3 121.2 123.8 128.0 126.3 126.1 130.3 126.8 125.6 123.7 122.9 Paper and products 26 3.21 116.3 127.7 129.5 130.3 133.0 132.2 133.9 130.4 139.1 132.0 134.6 132.1 131.8 133.6 Printing and publishing... 27 4.72 113.4 115.4 118.4 120.0 121 .0 121.0 122.0 120.5 119.7 122.0 120.6 120.9 119.9 120.0 Chemicals and products... 28 7.74 147.3 161.9 163.3 162.9 167.6 170.6 168.7 166.6 170.0 167.6 170.4 170.9 169.9 Petroleum products 29 1.79 124.1 124.9 126.3 125.7 129.1 131.8 131.6 132.7 135.1 434.1 133.8 132.3 128.7 " i33; i Rubber & plastic products. 30 2.24 166.7 185.2 185.3 188.4 196.7 203.5 198.2 185.6 189.1 191.2 186.1 212.4 209.0 Leather and products 31 .86 76.5 87.7 83.2 86.0 86.1 86.0 87.7 91.4 84.0 81.1 77.3 77.9 77.3 DURABLE MANUFACTURES Ordnance, pvt. & govt... 19,91 3.64 76.6 70.0 70.1 69.9 69.5 69.5 69.1 71.4 73.1 74.0 73.9 73.2 73.2 73.4 Lumber and products.. 24 1.64 107.6 114.1 116.4 123.5 123.9 121.1 122.8 123.0 120.3 124.6 128.1 128.7 129.2 Furniture and fixtures . , 25 1.37 118.2 128.7 130.3 132.7 134.1 130.6 131.7 131.0 130.1 131.6 134.4 133.0 134.3 Clay, glass, stone prod. 32 2.74 117.9 127.5 129.4 128.6 128.5 133.7 132.7 133.9 136.1 137.2 138.1 138.8 138.2 Primary metals 33 6.57 96.4 98.1 92.6 98.1 103.9 101.4 105.4 113.2 111.5 116.9 118.6 114.1 109.8 110.1 Iron and steel 4.21 95.8 96.5 89.1 92.9 100.9 97.7 103.5 110.7 110.0 115.3 116.2 110.3 105.4 105.4 Fabricated metal prod ... 34 5.93 109.9 116.3 117.3 116.6 120.9 120.2 121.5 121.4 124.0 124.6 125.8 126.4 124.6 125.7 Nonelectrical machinery. 35 9.15 125.1 126.6 128.6 129.0 131.5 132.9 133.5 134.0 133.5 135.0 136.4 136.8 134.4 138.6 Electrical machinery 36 8.05 116.5 120.1 122.7 124.7 126.5 127.8 130.0 131.8 132.0 131.0 135.3 133.9 134.8 136.4 Transportation equip 37 9.27 97.4 104.7 106.7 105.8 109.0 111 .2 110.6 112.9 112.6 113.3 115.0 104.4 104.9 113.1 Motor vehicles & pts 4.50 111.1 127.1 130.1 126.7 135.2 140.8 141.3 144.3 146.5 148.5 150.6 130.1 129.6 146.0 Aerospace & misc. tr. eq.. 4.77 84.5 83.6 84.7 86.1 84.3 83.3 81.7 83.3 80.7 80.3 81.5 80.2 81.6 82.2 Instruments ""38 2.11 132.3 136.4 140.9 142.0 141.8 144.4 145.4 149.0 149.5 151.3 149.6 148.7 149.7 152.4 Miscellaneous mfrs 39 1.51 128.3 137.6 137.3 139.5 140.7 142.5 140.7 145.5 145.9 148.5 142.1 143.8 141.9 143.5 i 1972 dollars. N.B. Published groupings include some series and subtotals not shown separately. For summary description and historical data, see BULLETIN for June 1976, pp. 470-79. Availability of detailed descriptive and historical data will be announced in a forthcoming BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 BUSINESS ACTIVITY; CONSTRUCTION • DECEMBER 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu- Prices4 CCCCaaaa---- facturing2 IIInnn--- ppppaaaacccciiiittttyyyy Market ddduuussstttrrryyy uuuuttttiiiilllliiiizzzzaaaa---- NNoonnaagg-ttttiiiioooonnnn CCoonn-- rriiccuull-- PPPPeeeerrrriiiioooodddd Products iiiinnnn mmmmffffgggg.... ssttrruucc-- ttuurraall TToottaall Whole- TTToootttaaalll ((((ppppeeeerrrr ttiioonn eemm-- Em- Pay- rreettaaiill Con- sale Final cccceeeennnntttt ooooffff ccoonn-- ppllooyy-- ploy- rolls ssaalleess33 sumer com- MMaattee-- MMMaaannnuuu--- 1111999966667777 ttrraaccttss mmeenntt—— ment modity Total Inter- rriiaallss fffaaaccctttuuurrr--- oooouuuutttt---- TToottaall ii Con- Equip- mediate iiinnnggg ppppuuuutttt)))) '''' 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 83.9 60.3 64 86.6 94.6 1959 64.8 64.5 63.2 68.1 56.5 69.5 65.3 64.1 81.6 81.0 88.1 67.8 69 87.3 94.8 1960 66.2 66.3 65.3 70.7 58.0 69.9 66.1 65.4 80.1 68.6 82.4 88.0 68.8 70 88.7 94.9 1961 66.7 67.0 65.8 72.2 57.3 71.3 66.2 65.6 77.3 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-—Nov 123.5 123.8 122.3 131 .1 110.0 129.3 123.1 122.7 148.0 117.8 92.4 158.9 192 165.6 178.2 Dec 124.4 124.9 123.5 132.3 111.5 129.9 123.3 123.6 >76.8 137.0 118.1 93.0 162.3 198 166.3 178.7 1976-—Jan 125.7 126.0 123.9 133.1 111 .2 133.6 125.3 125.2 ^ 183.0 118.7 94.0 165.9 197 166.7 179.3 Feb 127.3 127.4 125.3 134.9 112.1 135.3 127.3 127.0 79.0 170.0 119.0 94.3 165.4 201 167.1 179.3 Mar 128.1 128.1 126.4 136.1 112.9 134.9 128.2 127.9 1 185.0 119.4 94.9 167.4 204 167.5 179.6 Apr 128.4 128.0 126.3 136.1 112.9 134.7 129.2 128.5 i 189.0 119.9 95.$ 166.1 205 168.2 181 .3 May 129.6 128.9 127.3 137.4 113.5 135.0 130.6 129.6 80.2 205.0 119.8 95.4 170.7 202 169.2 181.8 June 130.1 129.5 127.6 137.8 113.8 135.9 131 .1 130.2 I 187.0 119.9 95.3 171 .6 206 170.1 183.1 July 130.7 129.8 127.6 136.8 114.9 137.6 132.2 131.0 ] 184.0 120.2 r95.2 173.2 205 171.1 184.3 Aug 131.3 130.3 128.3 137.5 115.7 137.8 133.0 131.6 162.0 '120.4 '95.2 175.9 209 171.9 183.7 O Se c p t t 1 13 3 0 0 . . 9 4 1 1 2 3 9 0 . . 6 0 1 1 2 2 7 7 . . 3 5 1 1 3 3 6 6 . . 5 2 1 1 1 1 4 5. . 5 7 1 1 3 3 8 9 . . 3 0 1 1 3 3 1 2 . . 7 4 1 1 2 3 9 0 . . 9 7 I > 80.8 2 1 3 6 7 4 . . 0 0 1 1 2 2 0 0. . 8 6 9 9 5 6. . 1 0 1 17 7 5 7 . . 9 7 2 2 0 0 7 9 1 17 7 3 2 . . 3 6 1 1 8 8 4 5 . . 7 2 Nov 113322..00 113311..55 112299..55 113388..99 111166..66 113399..22 113333..00 113311..77 112211..00 9955..66 117799..33 221122 118855..66 A Revised data for 1955-62, comparable to the revised data beginning Capacity utilization: Based on data from Federal Reserve, McGraw- 1963 shown below, will be published later. Hill Economics Department, and Dept. of Commerce. 1 Employees only: excludes personnel in the Armed Forces. Construction contracts; McGraw-Hill Informations Systems Company, 2 Production workers only. Revised back to 1973. F.W. Dodge Division, monthly index of dollar value of total construction 3 F.R. index based on Census Bureau figures. contracts, including residential, nonresidential, and heavy engineering. 4 Prices are not seasonally adjusted. Latest figure is final. Employment and payrolls: Based on Bureau of Labor Statistics data; NOTE.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1975 1976 Type of ownership and 1974 1975 type of construction Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. total construction contracts 1 93,685 90,237 7,767 5,573 5,431 6,390 6,149 8,908 9,408 9,836 10,533 9,774 8,505 8,112 10,063 By type of ownership: / Public 32,062 31,415 2,544 1,597 1,724 1,655 1,719 2,192 2,383 3,915 3,136 3,246 2,505 2,344 2,265 Private i 61,623 58,822 5,223 3,976 3,708 4,734 4,430 6,716 7,025 5,921 7,397 6,528 5,999 5,768 7,798 By type of construction: Residential building 1 33,567 31,347 3,189 2,404 2,233 2,157 2,546 3,618 4,003 3,955 4,166 4,149 4,099 3,758 4,064 Nonresidential building 33,131 30,577 2,629 1,859 1,865 1,939 1,996 2,561 2,741 2,819 2,805 3,031 2,536 2,875 2,728 Nonbuilding 26,988 28,313 1,949 1,309 1,334 2,294 1,608 2,729 2,664 3,062 3,562 2,594 1,869 1,478 3,271 'rivate housing units authorized... 1,074 926 1,111 1,127 1,091 1,147 1,165 1,188 1,082 1,158 1,150 1,215 1,296 '1,504 1,437 (In thousands, S.A., A.R.) i Because of improved procedures for collecting data for 1 -family homes, NOTE.—Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im- McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data may differ from annual totals because adjustments cent for total and private construction, in each case, and by 8 per cent for are made in accumulated monthly data after original figures have been residential building. published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public i Nonresidential Conser- Total d R en es ti i- al 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 i O n 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 d l l s - r i c Total M ta i r l y i- H w ig ay h - de v m v a a e t n e l i n d 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 3,227 136,204 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 3,573 147,537 110,188 59,967 50,221 6,902 12,984 6,689 23,646 37,349 1,450 9,596 4,046 150,628 112,997 62,358 50,639 6,894 12,786 6,669 24,290 37,631 1,352 8,895 4,236 148,786 114,359 64,921 49,438 6,448 12,550 6,561 23,879 34,427 1,374 l Data beginning Jan. 1976 are not strictly comparable with prior data 2 Includes religious, educational, hospital, institutional, and other buildbecause of change by Census Bureau in its procedure for estimating con- ings. struction outlays of State and local governments. Such governments accounted for 86 per cent of all public construction expenditures in 1974. NOTE.—Census Bureau data; monthly series at seasonally adjusted annual rates. PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale 1 Median prices Units (in thousands Mobile of dollars) of Period home units 2-or- 1- 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 ,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 c213 544 383 1975—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 May. 1,422 1,065 357 1,360 934 426 1,055 603 452 260 540 400 June. 1,510 1,139 371 1,373 1,052 321 1,064 609 455 233 r589 406 July. 1.382 1,123 259 ''1,307 n, 038 r269 1,063 615 448 224 ••611 r410 Aug.' 1,537 1,171 366 1,399 1,092 307 1,073 622 451 252 636 406 Sept.. 1,858 1,289 569 1,362 1,006 356 1,108 642 466 255 734 414 Oct.35 1,792 1,329 463 277 i 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 • DECEMBER 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilii in labor force <( S.A.) Period i p T n o ( s o N t p t i a u t .S l u l a . t n A i t o o i . n o ) n n a - l la ( b N N o . r o S t . f A i o n . r ) c e T l ( f a S o o b . r t A o c a e r . l ) Total Total E In i m n c d u n p u l o l t s n o u t a y r r g a e ie l r d s i 1 - agric I u n lture U pl n o e y m ed - U ( n p e e m r S r m a . e t A c p e n e . t 2 l ) n o t y ; - 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--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 Nov 157,006 59,220 98,048 95,899 88,130 84,898 3,232 7,769 8.1 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 s io t t r r n a u c c t - Tr t a i p o n u n s b p a l o i n c r d t a- Trade Finance Service G m ov e e n r t n utilities 197 0 70,924 19,351 622 3,537 4,504 15,039 3,686 11,621 12,560 197 1 71,216 18,572 609 3,634 4,457 15,350 3,801 11,903 12,887 197 2 73,702 19,089 625 3,829 4,515 15,971 3,943 12,390 13,338 197 3 76,888 20,069 643 4,012 4,643 16,673 4,090 13,019 13,737 197 4 78,418 20,048 694 3,962 4,696 17,017 4,208 13,617 14,175 197 5 76,986 18,346 744 3,462 4,498 16,945 4,222 13,997 14,769 SEASONALLY ADJUSTED 1975—No v 77,542 18,472 761 3,406 4,482 17,027 4,248 14,188 14,958 Dec 77,764 18,555 766 3.392 4,477 17,084 4,260 14,229 15,001 1976—Ja n 78,719 18,722 764 3,428 4,494 17,233 4,266 14,307 14,965 Feb 78,358 18,774 767 3.379 4,504 17,308 4,266 14,360 15,000 Mar 78,692 18,897 773 3.380 4.507 17,399 4,276 14,422 15,038 Apr 79,011 19,008 775 3,413 4,510 17,465 4,289 14,498 15,053 May 79,006 19,000 776 3.393 4.503 17,461 4,282 14,529 15,062 June 79,043 18,984 781 3,375 4,482 17,460 4,301 14,571 15,089 July 79,183 18,945 791 3,382 4.508 17,531 4,312 14,623 15,091 Aug 79,278 18,979 752 3,349 4,501 17,554 4,312 14,709 15,122 Sept 79,572 19,100 798 3,330 4,528 17,625 4,338 14,758 15,095 Oct 79,451 18,952 803 3,346 4.504 17,608 4,361 14,786 15,091 Nov.f 79,711 19,052 813 3,375 4,528 17,589 4,386 14,836 15,132 NOT SEASONALLY ADJUSTED 1975—No v 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 79,910 19,408 804 3.563 4,560 17,655 4,347 14,773 14,800 Oct.p 80,187 19,194 807 3.564 4,536 17,705 4,357 14,816 15,208 Nov.* 80,534 19,216 815 3,490 4,555 17,898 4,373 14,821 15,366 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

DECEMBER 1976 • PRICES A53 CONSUMER PRICES (1967 = 100) Housing Health and recreation PPeerriioodd iitt AA eemm llll ss FFoooodd Total Rent H ow s o h n m i e p e r - - F c a o o u n i a l d e l l t e r 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 d r s a - - - A u p p a p k n a d e 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 a i c e n n r a g d e d a - - g O s a o e t n o r h d v d e - r s tion tion ices 1929. 55551111....3333 44448888....3333 777666...000 48.5 1933. 33338888....8888 33330000....6666 555444...111 36.9 1941. 44444444....1111 33338888....4444 5533..77 555777...222 4400..55 8811..44 44.8 44.2 37.0 41.2 47.7 49.2 1945. 55553333....9999 55550000....7777 5599..11 58.8 4488..00 7799..66 61.5 47.8 42.1 55.1 62.4 56.9 1960. 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965. 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966. 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968. 104.2 103.6 104.2 102,4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969. 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970. 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971 . 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972. 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973. 133.1 141.4 135.0 12^.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1974. 147.7 161.7 150.6 130.6 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 1975. 161.2 175.4 166.8 137.3 181 .7 235.3 169.6 158.1 142.3 150.6 153.5 168.6 150.7 144.4 147.4 -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 -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 14:. i 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 Oct 173.3 181.6 180.1 146.9 194.8 253.1 193.9 170.9 150.9 170.9 166.1 188.9 163.9 153.5 154.4 NOTE.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Pro- Period m c t o o i m e d s i - - p F u r a c o r t d m s - c f f e o a e s n o e s d d d e d s s Total t T e il e t e c x s . - , H e i t d c e . ,, F e u tc e . l , C ic e h a t e c l m . s , - R b e u t e c r b . , - L b e u t e c m r . , - P e a t p c e . r, M e a t l e c s t , . - e c m M a q e h n e u r i a y d n n i - p t - - F t u e u t r r c n e . , i - N t e m m a r o l i a e l n n l - i - s c - T e p m t q r o i e a u o r n n n i t p a t s 1 - - - n c M e e l o i l s u a - s - 1960 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 196 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 *7.8 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 10).9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 197 0 110.4 111.0 112.0 110.0 107.2 110.1 101.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 197 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—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.) 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.: 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.'i 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 Nov. 185.6 183.6 174.8 187.0 149.8 169.7 281.8 188.7 164.8 214.3 181.7 199.9 174.7 147.4 189.1 156.2 156.1 1 Dec. 1968= 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 NATIONAL PRODUCT AND INCOME • DECEMBER 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1975 1976 1950 1970 1972 197S 1974 1975 III IV II III 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 1.708.4 Final purchases 279.4 978.6 1,161.7 1,288.6 ,402.5 1,531.0 1,550.6 1,592.5 1,621.4 1,659.2 1,693.3 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 1.088.5 Durable goods 30. 84.9 111.2 123.7 121.6 131.7 136.0 141.8 151.4 155.0 157.6 Nondurable goods 98.2 264.7 299.3 333.8 376.2 409.1 414.6 421.6 429. 434.8 441.8 Services 63.0 269.1 322.4 352.3 289.6 432.4 436.7 448.6 463.2 474.9 489.1 Gross private domestic investment 53.8 140.8 188.3 220.0 215.0 183.7 196.7 201.4 229.6 239.2 247.0 Fixed investment 47.0 137.0 178.8 202.1 204.3 198.3 198.6 205.7 214.7 223.2 231.9 Nonresidential 27.1 100.5 116.8 136.0 149.2 147.1 146.1 148.7 153.4 157.9 163.0 Structures 9.3 37.7 42.5 49.0 54.1 52.0 51.8 52.1 53.2 54.9 56.0 Producers' durable equipment. 17.8 62.8 74.3 87.0 95.1 95.1 94.3 96.6 100.2 103.0 107.0 Residential structures 19.9 36.6 62.0 66.1 55.1 51.2 52.6 57.0 61.3 65.3 68.9 Chan N g o e n i f n a b rm us iness inventories 1 6 8 . . 7 3 3 5. . 1 8 6 9 0 . . 4 3 6 1 4 7 . . 3 9 5 1 2 C .7 . 7 -1 4 4 9 . . 6 0 - 5 2 0 .0 .2 - 5 4 4 .3 .2 5 1 8 4 . . 6 8 6 1 2 6 . . 9 0 6 1 6 5 . . 3 1 Nonfarm 6.0 3.7 14.7 12.2 -17.6 -4.2 -9.5 12.7 17.3 15.6 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 3.4 Exports 13.9 62.5 72.7 101.6 144 4 148.1 148.2 153.7 154.1 160.3 166.3 Imports 12.0 58.5 75.9 94.4 136.9 127.6 126.8 132.7 145.7 151.0 162.9 Government purchases of goods and services. 38.5 218.9 253.1 269.5 303.3 339.0 343.2 353.8 354.7 362.0 369.6 Federal 18.7 95.6 102.1 102.2 111.6 124.4 124.6 130.4 129.2 131.2 134.5 National defense 14.0 73.5 73.5 73.5 77.3 84.3 84.6 87.1 86.2 86.9 88.5 Other 4.7 22.1 28.6 28.7 34.3 40. 40.0 43.2 42.9 44.2 46.0 State and local 19.8 123.2 151.0 167.3 191.6 214.5 218.6 223.4 225.5 230.9 235.0 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 1,271.7 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 119977?? 11997744 11997755 III IV I II III 236.2 798.4 951.9 1,044.6 1,135.7 1,207.6 1,233.4 1,264.6 1,304.7 1,337.4 1,362.5 Compensation of employees 154.8 609.2 715.1 "399.2 875.8 928.8 935.2 963.1 994.4 1,017.2 1,037.5 Wages and salaries 147.0 546.5 633.8 701.2 764.5 806.7 811.7 836.4 861.5 881.1 897.8 Private 124.4 430.5 496.2 552.6 604.1 630.8 634.4 654.1 676.1 692.4 706.1 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.f 60.4 61.1 65.3 66.3 69.0 71.4 72.8 74.4 Farm 13.5 13.9 18.1 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 221155 2211..66 21.0 22.4 22.4 22.9 23.3 23.1 23.4 Corporate profits and inventory valuation adjustment 37.6 6666..44 8899..66 9977..22 87.8 103.1 117.9 119.1 129.6 131.8 137.6 Profits before tax 42.6 71.5 9( .2 115.8 127.6 114.5 126.9 131.3 141.1 146.2 150.2 Profits tax liability 17.9 34.5 4,.5 48.7 52.4 49.2 54.8 57.2 61.4 63.5 65.4 Profits after tax 24.7 37.0 5t.6 67.1 75.2 65.3 72.1 74.1 79.7 82.7 84.8 8.8 22.9 3.6 27.8 30.8 32.1 32.6 32.2 33.1 34.4 35.4 Undistributed profits 15.9 14.1 30.0 39.3 44.4 33.2 39.5 41.9 46.6 48.3 49.4 Inventory valuation adjustment -5.0 -5.1 -6.6 -18.6 -39.8 -11.4 -9.0 -12.3 -11.5 -14.4 -12.6 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 83.5 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

DECEMBER 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 IV III 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 1,708.4 Less: Capital consumption allowances with capital consumption adjustment 23.9 90.8 105.4 117.7 137.7 161.4 164.4 169.5 173.6 177.7 181.6 Indirect business tax and nontax liability 23.4 94.0 111.0 120.2 128.4 138.7 141.5 144. 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. 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 7.4 Plus: Subsidies less current surplus of government enterprises .1 2.7 3.6 3.9 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 1,362.5 Less: Corporate profits with inventory valuation and capital consumption adjustments 33.7 67.9 92.1 99.1 84.8 91.6 105.3 105.6 115.1 116.4 122.0 Net interest 2.3 37.5 47.0 52.3 67.1 74.6 74.9 75.8 78.6 80.3 83.5 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: Government transfer payments to persons. 14.4 75.9 99.4 113.5 134.6 168.9 172.7 176.0 181. 180.6 185.2 Personal interest income 8.9 64.3 74.6 84.1 101.4 110.7 111.0 114.4 118.0 120.7 125.0 Dividends 22. 24.6 27.8 30.8 32.1 32.6 32.2 33 34.4 35.4 Business transfer payments 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 ,265.5 ,299.7 1,331.3 1,362.0 ,386.0 Less: Personal tax and nontax payments. 20.6 115.3 141.2 150.8 170.4 168.8 174.0 179.8 183. 189.5 195.8 Equals: Disposable personal income 205.5 685.9 801.3 901.7 982.9 1,080.9 ,091.5 ,119.9 1,147.6 1.172.5 ,190.2 Less: Personal outlays 194.7 635.4 751.9 831.3 910.7 996.9 ,011.1 ,036.2 1,068.0 1.089.6 ,114.3 Personal consumption expenditures 192.0 618. 733.0 809.9 887.5 973.2 987.3 ,012.0 ,043.6 1.064.7 ,088.5 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. 1.0 1.3 1.0 .9 .9 .9 1.0 1.0 Equals: Personal saving 10.8 50.6 49.4 70.3 72.2 84.0 80.5 83.7 79.5 82.9 75.8 Disposable personal income in (1972) dollars. 361.9 741.6 801.3 854.7 840.8 855.5 857.1 867.5 880.4 890.5 892.0 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct Total personal income. 1153.3 1249.7 1290.8 1300.2 1308.2 1320.8 1331.4 1341.9 1352.5 1362.9 1370.4 1380.8 1385.5 1391.7 1401.9 Wage and salary disbursements 765.0 806.7 828.5 836.6 844.0 854.2 861.4 868.8 876.9 883.3 883.1 892.7 897.4 903.5 910.2 Commodity-producing industries.. 273.9 275.3 282.9 285.7 288.6 292.8 294.9 298.4 301.7 303.5 303.4 306.5 306.4 307.9 309.4 Manufacturing only 211.4 211.7 218.1 220.1 222.8 227.2 229.4 232.2 234. 235.8 236.2 238.0 238. 239.9 240.1 Distributive industries 184.4 195.6 200.9 202.5 203.5 206.5 208.8 209.8 212.3 213.9 212.4 214.9 216.3 218.1 219.1 Service industries 145.9 159.9 163.6 166.0 168. 170.8 172.4 174.1 175.3 177.2 177.7 180.5 183.0 184.7 186.0 Government 160.9 175.8 181.1 182.4 183.2 184.2 185.4 186.6 187.6 188.7 189.6 190.7 191.7 192.7 195.7 Other labor income 55.5 62.5 64.5 65.2 65.8 66.4 67.1 67.7 68.4 69.0 69.7 70.4 71.1 71.7 72.4 Proprietors' income with inventory valuation and capital consumption adjustments 86.9 90.2 97.5 97.1 97.2 95.2 92.4 92.2 96.0 100.0 105.0 98.8 95.4 93.0 92.5 Business and professional 61.1 65.3 68.3 68.7 69.9 70.6 71.3 72.2 72.7 72.5 73.4 73. 74.4 74.9 75.3 Farm 25.8 24.9 29.2 28.4 27.3 24.6 21.1 20.0 23.3 27.5 31.6 26.0 21.0 18. 17.2 Rental income of persons with capital consumption adjustment 21.0 22.4 22.9 22.9 22.9 23.2 23.4 23.3 23.3 23.4 22.7 23.4 23.2 23.6 24.0 Dividends 30.8 32. 32.9 32.9 30.8 32.9 33.3 33.0 33.4 33.9 35.9 35.2 35.4 35.6 36.1 Personal interest income. 101.4 110.7 113.2 114.4 115.5 116.7 117.9 119.3 120.0 120.7 121.5 123.0 125.2 126.9 127.9 Transfer payments 140.3 175.2 182.1 182. 183.4 185.3 189.2 191.3 188.7 187.1 186.8 191.3 192.9 192.9 194.6 Less: Personal contributions for social insurance 47.6 50.0 50.7 51.0 51.4 53.1 53.4 53.7 54.1 54.4 54.3 54.9 55.2 55.5 55.8 Nonagricultural income. 1117.3 1213.4 1249.9 1260.0 1269.1 1284.4 1298.6 1310.1 1317.3 1323.3 1326.6 1342.5 1351.8 1360.8 1371.7 Agricultural income 36.0 36.3 40.9 40.2 39.1 36.4 32.8 31.8 35.2 39.6 43.8 38.4 33.6 30.9 30.2 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 • DECEMBER 1976 SUMMARY OF FUNDS RAISED IN U.S. 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 | HI H2 HI Credit market funds raised by nonfinancial sectors 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 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 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 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 4.1 3.1 -2.4 -1.0 -1.3 1.0 .4 * -.6 -1.2 -. 1 —. 1 5 6 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 2.4 * 3.9 5.8 11.5 10.5 7.7 3.8 10.0 10.5 9.6 13.7 7 8 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 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 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 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 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 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 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 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 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 18.4 30.2 37.6 20.1 22 8 44.0 68.6 56.3 1.0 -12.8 14.8 27.4 19 20 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 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 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 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 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 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 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 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 . 1 . 1 .3 31 32 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 1.2 1.1 1.0 .9 .9 1.0 1.0 2.1 6.2 5.7 6.7 7.6 33 34 -.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 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 .7 .5 .7 1.6 4.8 4.9 3.6 5.8 10.3 11.5 9.2 14.2 4 Loans from U S Government .... .2 —. 3 . 7 .9 1.1 .6 * 5 6 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 6 9 7 8 Co C rp o o r r p a o t r e a t e e q u b i o ti n e d s s — 3 1 . . 1 . 1 1 6 6 . . . 7 5 4 19 6 .5 . . 3 8 4 2 1. . . 2 8 7 3 3 7. . . 6 8 5 18 2 5 . . . 0 8 1 35 3 1 .3 . . 5 5 18 2 1 . . 9 . 1 0 2 1 . . . 9 2 1 3 1 . . 2 2 * 2 1 . . . 6 2 3 1 6 1 . . . 1 7 0 7 9 8 10 1.0 .4 .2 .7 2.1 1.7 -1.2 -1.3 2.3 1.2 3.4 1.2 10 11 Bank loans n.e.c -2.0 1.5 1.5 * 3.5 6.8 14.0 7.5 -3.9 -4.7 -3.2 -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 Total funds raised, by sector 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 -.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 .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 * .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 -1.9 -.4 .7 2.2 3.5 .3 .9 -.3 -1.3 19 20 * .1 .2 .1 1.6 .8 5.1 2.9 -.3 -.9 .2 -1.5 20 21 Savings and loans associations -1.7 1.1 4.1 1.8 -. 1 2.0 6.0 6.3 -2.1 -7.8 3.6 -.7 21 22 .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 -1.1 25 2266 Money market funds 22..44 11..33 22..66 * -.7 2266 Total credit market funds raised, all sectors, by type 1 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 Investment company shares 3.0 5.9 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .. 11 -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 1100..77 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 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 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

DECEMBER 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 HI 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 2 Total net advances 12.0 13.0 16.5 29.2 43.4 19.8 34.2 52.7 44.2 51.9 36.6 56.2 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 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 2.8 9.8 15.1 14.9 15.2 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 Monetary authorities 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 Foreign 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 •1 4.0 9.5 9.8 5.9 8.4 19.9 23.1 13.5 14.0 13.1 18.0 11 Private domestic funds advanced 12 Total net advances 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 Other finance -.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 of funds 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 90.51 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 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 5.7 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 { 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 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 -. 1 -2.9 -2.1 -4.1 -.7 2.9 2.4 3.4 2.6 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-56. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 45. Mainly an offset to line 9. security issues backed by mortgage pools. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 47. Line 2/line 1. Also sum of lines 27, 32, 39, and 44. 48. Line 19/line 12. 17. Includes farm and commercial mortgages. 49. Lines 10 plus 28. 25. Lines 39 plus 44. 26. Excludes equity issues and investment company shares. Includes Corporate equities line 18. Lines 1 and 3. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, and liabilities of foreign banking agencies to foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 U.S. INTERNATIONAL TRANSACTIONS • DECEMBER 1976 1. U.S. INTERNATIONAL TRANSACTIONS—SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted except as noted.1) 1975 1976 CCrreeddiittss ((++)),, ddeebbiittss ((--)) 11997733 11997744 11997755 Q2 Q3 Q4 Q1 Q2 1 Merchandise exports 71,410 98,310 107,088 25,851 26,562 27,657 26,836 28,450 2 Merchandise imports 70,499 103,679 98,058 22,568 24,483 25,437 28,510 29,735 3 Merchandise trade balance 2 911 -5,369 9,030 3,283 2,079 2,220 -1,674 -1,285 4 Military transactions, net -2,287 -2,083 -883 -378 -115 12 -5 -13 5 Investment income, net 5,178 10,227 6,007 1,531 1,682 1,670 2,279 2,157 6 Other service transactions, net 102 812 2,163 648 619 455 458 715 7 Balance on goods and services 3 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 --33,,559988 11,697 3,938 3,221 3,106 -60 702 1 o 33,,993344 551133 44,,330055 11,,447799 662255 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 --11,,443344 -607 -29 -342 89 -773 --11,,557788 15 Gold 16 SDR's 9 -172 -66 -16 -25 -21 -45 14 17 Reserve position in IMF -33 -1,265 -466 -7 -95 -57 -237 -798 18 233 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 40 Foreign private purchases of U.S. Treasury securities, net -214 697 2,667 -423 2,125 213 453 -586 41 4,041 378 2,505 385 738 1,038 1,030 130 42 Foreign direct investments in the United States, net 2,656 2,745 2,437 780 -48 1,229 -728 547 43 Allocations of SDR's 44 Discrepancy --22,,110077 4,557 44,,557700 98 -1,517 2,258 4,736 979 45 Owing to seasonal adjustments --3399 --22,,556611 11,,227755 11,,334488 --110088 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: 47 U.S. official reserve assets (increase,—) 209 -1,434 -607 -29 -342 89 -773 -1,578 48 Foreign official assets in the U.S. (increase,+) 5,145 10,257 5,166 1,913 -1,977 2,272 2,460 3,162 49 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

DECEMBER 1976 • FOREIGN TRADE; U.S. RESERVE ASSETS A59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports ] Imports 2 Trade balance 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 9,728 5,996 8,773 8,169 10,424 +589 -100 + 1,056 -696 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 Tot G al o 2 ld st T o r c e k a 1 s ury v c fo u e C c r r r i o t e r e i n i e s b g - n l n e - p R o I e s M s i i n e t F r io v n e SDR's3 E m n o d n t o h f Total Gold s T to r c e k a sury 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 - p R o I e s M s i i n e t F r io v n e SDR's3 1961... 18,753 16,947 16,889 116 1,690 1975— 1962... 17,220 16,057 15,978 99 1,064 Nov 16,592 11,599 11,599 423 2,234 2,336 1963... 16,843 15,596 15,513 212 1,035 Dec 16,226 11,599 11,599 80 2,212 2,335 1964... 16,672 15,471 15,388 432 769 1976— 1965... 15,450 13,806 13,733 781 863 Jan 16,622 11,599 11,599 333 2,314 2,376 1966... 14,882 13,235 13,159 1,321 326 Feb 16,661 11,599 11,599 296 2,390 2,376 1967... 14,830 12,065 11,982 2,345 420 Mar 16,941 11,599 11,599 571 2.420 2.351 1968.. . 15,710 10,892 10,367 3,528 1,290 Apr 17,437 11,598 11,598 936 2,578 2,325 1969... 4 16,964 11,859 10,367 42,781 2,324 May. ... 17,958 11,598 11,598 938 3,113 2,309 June.... 18,477 11,598 11,598 1,365 3,198 2,316 1970... 14,487 11,072 10,732 629 1,935 851 July 18,246 11,598 11,598 864 3,466 2,318 1971 ... 512,167 10,206 10,132 5 276 585 1,100 Aug 18,586 11,598 11,598 845 3,818 2,325 19726. . 13,151 10,487 10,410 241 465 1,958 Sept 18,945 11,598 11,598 1,038 3,952 2,357 19737. . 14,378 11,652 11,567 552 2,166 Oct 19,013 11,598 11,598 1,066 3,997 2.352 1974. . . 15,883 11,652 11,652 1,852 2,374 Nov *19,416 11,598 11,598 1,146 8 4,307 8 2,365 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 November amounted to $2,476 million, reserve position in IMF, $4,445 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $19,665. 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 • DECEMBER 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--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 31,520 231 169 312 882 1 ,781 916 98 76 103 July.. 6,412 11,598 231 169 312 882 1,781 916 98 76 103 Aug.. 6,412 11,598 231 169 312 882 1,781 916 98 76 103 Sept.. 49,500 6,379 11,598 3I,525 231 312 882 1,781 913 98 76 Oct.P. 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 1970. 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 1971. 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 1972. 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973 4,261 4,966 148 293 159 173 3,483 891 120 388 103 196 2,294 1974. 4,262 4,966 152 293 158 173 3,483 891 148 389 103 154 2,294 1975-—Nov 4,262 4,966 153 293 158 173 3,483 891 160 389 103 154 2,294 Dec 4,262 4,966 153 293 158 173 3,483 891 169 389 103 154 2,294 1976-—Jan 4,262 4,966 153 293 158 173 3,483 891 169 389 103 152 2,294 Feb 4,262 4,966 153 293 158 173 3,483 891 176 103 152 2,294 Mar 4,262 4,966 153 293 158 173 3,483 891 176 103 152 2,294 Apr 4,262 4,966 153 293 158 173 3,483 891 183 103 2,294 May 4,262 4,966 153 293 158 173 3,483 891 214 103 2,294 June 4,263 4,966 153 293 158 173 3,483 891 192 103 2,294 July 4,266 4,966 154 293 158 173 3,483 891 192 103 2,294 Aug 4,266 4,966 154 293 158 173 3,483 891 192 103 2,294 Sept 4,266 4,966 154 293 158 173 3,483 891 206 103 2,294 Oct p 44,,226666 44,,996666 115544 115588 33,,448833 889911 221122 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—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 11 ,,117700 129 540 602 244 3,514 99 151 888 135 472 290 July 69 129 540 602 244 3,514 99 151 135 472 298 Aug 66669999 111122229999 555544444444 666000222 222244444444 3333,,,,555511116666 99999999 111155551111 113355 444477772222 333300008888 Sept 66669999 111122229999 555544441111 666000222 222244444444 3333,,,,555511116666 99999999 111155551111 444477772222 222288880000 Oct.p 66669999 111122229999 555533335555 222244444444 3333,,,,555511116666 99999999 111155551111 444477772222 222277774444 i Includes reported or estimated gold holdings of international and the Bank's gold assets net of gold deposit liabilities. This procedure regional organizations, central banks and govts, of countries listed in avoids the overstatement of total world gold reserves since most of the this table, and also of a number not shown separately here, and gold to be gold deposited with the BIS is included in the gold reserves of individual distributed by the Tripartite Commission for the Restitution of Monetary countries. Gold; excludes holdings of the U.S.S.R., other Eastern European coun- 2 Net gold assets of BIS, i.e., gold assets minus gold deposit liabilities. tries, and People's Republic of China. 3 Reflects South African Reserve Bank sale of gold spot and repurchase The figures included for the Bank for International Settlements are forward. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 mone- Total arising 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- abroad 6 by bonds zations 8 banks and and ties5 banks and in notes 3 notes4 in notes3,7 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 3.743 528 906 131,019 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 4,444 609 725 138,473 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 f47,009 566 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 /67,681 544 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 1215,564 1,673 17,694 5,932 5,502 430 2,003 J119,240 76,801 53,057 5,059 16,339 2,346 30,314 8,803 8,305 498 3,322 1119,164 76,823 53,079 5,059 16,339 2,346 30,106 8,913 8,415 498 3,322 124,056 80,676 50,111 6,644 19,666 4,255 28,487 9,971 9,232 739 4,922 127,164 80,198 49,634 6,485 19,726 4,353 32,226 10,200 9,490 710 4,540 126,558 80,681 49,513 6,671 19,976 4,521 29,516 10,729 10,028 701 5,632 128,153 81,229 49,487 6,882 20,051 4,809 30,924 10,474 9,766 708 5,526 131,793 82,356 50,429 7,057 20,051 4,819 33,109 10,774 10,060 714 5,554 129,529 82,455 49,497 7,788 20,051 5,119 30,471 10,878 10,118 760 5,725 136,659 84,271 50,536 8,245 20,151 5,339 35,191 11,523 10,759 764 5,674 138,992 85,670 51,588 8,508 20,151 5,423 36,355 11,306 10,560 746 5,661 135,202 85,178 50,014 9,225 20,251 5,688 32,631 11,446 10,645 801 5,947 139,169 85,924 50,474 9,519 20,151 5,780 34,743 11,763 10,932 831 6,739 138,761 86,734 51,267 9,835 19,801 5,831 32,828 12,149 11,238 911 7,050 140,773 86,076 49,657 10,800 19,803 5,816 34,594 12,346 11,475 871 7,757 143,723 86,752 48,954 11,027 20,876 5,895 37,086 12,278 11,351 927 7,607 1 Includes (a) liability on gold deposited by the IMF to mitigate the shown for the preceding date; figures on second line are comparable with impact on the U.S. gold stock of foreign purchases for gold subscriptions those shown for the following date. to the IMF under quota increases, and (b) U.S. Treasury obligations at 10 Includes $101 million increase in dollar value of foreign currency cost value and funds awaiting investment obtained from proceeds of sales liabilities resulting from revaluation of the German mark in Oct. 1969. of gold by the IMF to the United States to acquire income-earning assets. 11 Data on the second line differ from those on first line because cer- 2 Includes Bank for International Settlements; also includes European tain accounts previously classified as official institutions are included Fund through Dec. 1972. with banks; a number of reporting banks are included in the series for 3 Derived by applying reported transactions to benchmark data. the first time; and U.S. Treasury securities payable in foreign currencies 4 Excludes notes issued to foreign official nonreserve agencies. issued to official institutions of foreign countries have been increased in 5 Includes long-term liabilities reported by banks in the United States value to reflect market exchange rates as of Dec. 31, 1971. and debt securities of U.S. Federally sponsored agencies and U.S. cor- 12 Includes $ 162 million increase in dollar value of foreign currency porations. liabilities revalued to reflect market exchange rates, as follows: short- 6 Includes short-term liabilities payable in dollars to commercial banks term liabilities, $15 million; and nonmarketable U.S. Treasury notes, abroad and short-term liabilities payable in foreign currencies to commer- $147 million. cial banks abroad and to other foreigners. 7 Includes marketable U.S. Treasury bonds and notes held by commer- NOTE.—Based on Treasury Dept. data and on data reported to the cial banks abroad. Treasury Dept. by banks and brokers in the United States. Table excludes 8 Principally the International Bank for Reconstruction and Develop- IMF holdings of dollars, and U.S. Treasury letters of credit and 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. • DECEMBER 1976 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe1 American countries2 End of period countries Canada republics Asia Africa 1972 61,526 34,197 4,279 1,733 17,577 777 2,963 1973 66,861 45,764 3,853 2,544 10,887 788 3,025 J76,801 44,328 3,662 4,419 18,604 3,161 2,627 \76,823 44,328 3,662 4,419 18,626 3,161 2,627 1975 Oct 80,676 45,354 3,044 4,254 22,406 3,018 2,600 80,198 45,095 3,218 4,056 22,263 2,951 2,615 Dec.r 80,681 45,676 3,132 4,448 22,545 2,983 1,897 1976 Jan.r 81,229 45,741 3,416 3,552 23,811 2,724 1,985 Feb.r 82,356 45,091 3,645 3,377 25,493 2,731 2,019 82,455 43,443 3,663 3,779 26,942 2,718 1,910 Apr.r 84,271 43,581 3,600 3,852 28,659 2,805 1,774 Mayr 85,670 43,242 3,590 3,827 30,092 3,141 1,778 June r..... 85,178 42,425 3,578 4,104 29,927 3,245 1,899 July 85,924 42,321 3,410 4,000 30,994 3,134 2,065 Aug 86,734 41,504 3,230 4,378 32,629 3,098 1,895 Sept.f 86,076 41,564 3,417 4,286 32,427 2,758 1,624 Oct.f 86,752 41,875 3,389 4,082 33,426 2,414 1,566 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 Deposits U.S. Other foreign bills and Treasury short- cur- certifi- Total bills and term rencies Demand cates Demand certifi- liab.4 cates3 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 94,771 94,005 14,052 9,932 35,662 34,360 766 3,171 139 111 497 92,413 91,778 12,128 10,259 37,728 31,663 635 4,583 132 150 2,397 95,821 95,181 12,810 10,076 37,268 35,028 640 4,471 145 156 1,605 94,350 89,057 13,564 10,348 37,414 32,466 558 5,293 139 148 2,554 95,111 94,502 12,271 10.483 38,789 32,958 609 4,925 114 217 2,498 98,119 97,465 13,350 10,222 39,763 34,129 654 4,520 118 162 2,435 94,855 94,283 13,091 10,351 37,974 32,867 572 4,769 130 192 2,495 102,004 101,237 14,244 10,240 39,417 37,336 767 5,518 140 193 2,739 104,016 103,284 13,846 10,100 40,245 39,093 727 5,508 91 185 2,876 98,655 97,964 14,135 9,978 38,244 35,607 687 5,360 258 160 2,236 101,820 101,147 14,714 10,259 39,632 36,542 667 5,671 483 192 3,129 100,982 100,313 14,198 10,212 40,964 34,939 669 5,649 379 149 3,475 101,692 100,990 14,793 10,644 40,119 35,434 697 5,962 331 151 4,031 102,469 101,703 14,624 10.484 38,962 37,634 766 5,078 256 164 3,196 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short- cur- Treasury short- foreign bills and term rencies bills and term currencies Demand Time 2 certifi- liab.4 Demand Time 2 certifi- liab.6 cates3 cates 3 1973 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 127 1974—Dec. 7 J \9 9 1 1 , , 6 6 0 76 0 1 1 3 3 , , 9 9 2 1 8 2 9 9 , , 9 8 9 2 5 1 3 3 5 5 , , 1 1 6 6 5 5 3 31 1 , , 9 8 3 2 5 2 7 7 6 6 6 6 5 5 3 3 , , 0 0 5 7 7 9 2 2 , , 9 9 5 5 1 1 4 4 , , 2 1 5 6 7 7 3 3 4 4 , , 6 6 5 5 6 6 1 11 1 , ,0 17 6 8 6 1 1 2 2 7 7 1975—Oct. 87,830 11,996 10,109 35,330 29,760 635 50,111 2,448 3,877 35,004 8,782 Nov.r 91,350 12,665 9,920 35,663 32,466 637 49,634 2,242 3,579 35,242 8,571 Dec.r 89,057 13,426 10,200 34,860 30,023 549 49,513 2,644 3,423 34.182 9,264 1976—Jan. 90,177 12,158 10,266 36,291 30,863 600 49,487 2,445 3,291 35,645 8,106 Feb.', 93,598 13,233 10,060 37,328 32,336 642 50,429 2,695 2,908 36,761 8,066 Mar.r 90,086 12,962 10,159 35,479 30,919 567 49,497 2,671 2,630 34,989 9,207 Apr.r, 96,486 14,104 10,047 36,678 34,894 763 50,536 2,782 2,330 36.183 9,241 Mayr, 98,503 13,755 9,914 37,369 36,737 727 51,588 2,799 2,400 36,846 9,543 June r. 93,290 13,877 9,818 36,008 32,900 687 50,014 2,632 2,395 35,519 9,468 July r. 96,149 14,231 10,067 36,504 34,680 667 50,474 2,932 2,251 36,016 9,275 Aug.., 95,315 13,819 10,046 37,489 33,300 661 51,249 2,380 2,207 36,974 9,688 Sept.* 95,726 14,462 10,493 36,088 33,985 697 49,657 2,544 2,144 35,653 9,317 Oct.f. 97,391 14,367 10,319 35,766 36,177 762 48,787 2,694 2,097 35,268 8,728 To banks9 To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Deposits U.S. Other Deposits UU..SS.. Other foreign Treasury short- TTrreeaassuurryy short- cur- Total bills and term Total bbiillllss aanndd term rencies Demand Time 2 certifi- liab.4 Demand Time 2 cceerrttiiffii-- liab.6 cates ccaatteess 1973 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 469 1974—Dec.7 \ / 3 3 8 8 , , 5 6 2 1 0 9 2 29 9 , , 4 6 6 7 7 6 8 8 , , 2 2 3 4 1 8 1 1 , , 9 9 1 4 0 2 2 2 3 3 2 2 1 1 9 9 , , 0 2 9 5 4 4 8 8 , , 4 3 1 0 4 4 2 2 , , 7 7 2 2 9 9 3 3 , , 7 7 4 9 4 6 2 2 7 7 7 7 1 1 , , 6 5 6 0 4 2 6 63 3 9 9 1975—Oct.r. 37,719 27,851 6,780 1,565 100 19,406 9,232 2,769 4,666 226 1,572 635 Nov.r, 41,716 31,590 7,584 1,544 135 22,327 9,490 2,839 4,797 287 1,568 637 Dec.r. 39,544 28,966 7,534 1,942 335 19,155 10,029 3,248' 4,835 342 1,604 549 1976—Jan. 40,690 30,324 6,809 1,979 369 21,168 9,766 2,904 4,996 277 1,588 600 Feb.r. 43,169 32,467 7,418 2,036 275 22,737 10,060 3,120 5,116 293 1,532 642 Mar.r, 40,589 29,904 7,248 2,268 214 20,175 10,118 3,044 5,261 276 1,538 567 Apr.r. 45,950 34,429 7,883 2,310 134 24,102 10,758 3,439 5,407 361 1,551 763 Mayr. 46,915 35,628 7,737 2,084 151 25,656 10,560 3,219 5,431 372 1,538 727 June r. 43,276 31,944 8,100 1,884 154 21,806 10,646 3,146 5,539 335 1,626 687 July. 45,675 34,076 7,992 2,275 155 23,654 10,932 3,307 5,541 333 1,751 667 Aug... 44,066 32,167 7,934 2,206 162 21,865 11,238 3,505 5,632 353 1,747 661 Sept.f, 46,069 33,897 8,233 2,578 176 22,909 11,474 3,686 5,771 259 1,759 697 Oct.f. 48,604 36,491 8,346 2,297 223 25,625 11,351 3,327 5,926 274 1,824 762 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. • DECEMBER 1976 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1974 1975 1976 Area and country Feb.r Mar.r Apr.r Mayr Juner Julyr Aug. Sept.f Oct.** Europe: Austria 607 607 754 715 581 585 577 549 589 412 335 Belgium-Luxembourg 2,506 2,506 2,898 2,440 2,395 2,332 2,213 2,336 1,977 1,976 1,946 Denmark 369 369 332 434 678 681 649 452 322 440 317 Finland 266 266 391 313 334 350 403 405 446 435 415 France 4,287 4,287 7,733 6,480 6,210 4,856 4,529 4,776 4,408 4,214 4,355 Germany 9,420 9,429 4,357 4,468 4,195 5,830 5,206 4,932 4,961 4,738 5,964 Greece 248 248 284 340 261 289 299 346 361 350 337 Italy 2,617 2,577 1,072 1,004 1,298 1,464 1,378 1,520 2,263 2,641 1,574 Netherlands 3,234 3,234 3,411 3,828 3,397 3,281 3,111 2,248 2,184 2,189 2,565 Norway 1,040 1,040 996 925 798 915 797 798 898 684 789 Portugal 310 310 195 221 209 213 189 196 250 257 193 Spain 382 382 426 400 386 462 392 447 416 419 542 Sweden 1,138 1,138 2,286 2,312 2,287 2,352 2,437 2,435 2,384 2,227 1,979 Switzerland 9,986 10,139 8,514 8,648 8,659 8,965 9,129 10,130 9,551 9,250 9,016 Turkey 152 152 118 104 106 113 101 95 80 100 65 United Kingdom 7,559 7,584 6,886 8,231 6,728 6,589 7,096 6,655 6,289 6,139 7,292 Yugoslavia 183 183 126 178 222 179 174 182 128 142 128 Other Western Europe2 4,073 4,073 2,970 2,116 2,199 1,989 2,222 2,066 2,150 2,130 2,103 U.S.S.R 82 82 40 43 38 34 45 40 35 24 70 Other Eastern Europe 206 206 200 201 159 161 153 188 209 215 182 Total 48,667 48,813 43,988 43,401 41,142 41,639 41,100 40,796 39,899 38,990 40,168 Canada 3,517 3,520 3,076 4,721 4,126 4,173 4,997 3,789 3,995 3,808 4,764 Latin America: Argentina 886 886 1,147 1.134 1,169 1,238 1,368 1,394 1,407 1,510 1,437 Bahamas 1,448 1,054 1,827 2,940 1,715 4,600 5,162 2,908 4,838 3,006 2,628 Brazil 1,034 1,034 1,227 1.135 1,320 1,475 1,176 1,271 1,308 1,200 1,132 Chile 276 276 317 248 273 310 367 369 301 303 325 Colombia 305 305 417 536 516 584 629 686 762 772 767 Mexico 1,770 1,770 2,078 2,048 2,003 2,134 2,222 2,162 2,110 2,301 2,348 Panama 488 510 1,099 953 779 961 1,098 1,207 1,050 1,387 912 Peru 272 272 244 223 235 219 230 221 235 239 236 Uruguay 147 165 172 204 242 216 215 229 219 226 244 Venezuela 3,413 3,413 3,289 2,571 2,574 2,742 2,757 2,643 2,747 3,092 3,208 Other Latin American republics 1,316 1,316 1,500 1,456 1,639 1,714 1,671 1,843 1,796 1,710 1,756 Netherlands Antilles and Surinam 158 158 129 142 119 121 125 129 135 149 147 Other Latin America 526 596 1,507 2,448 1,735 2,530 1,881 1,533 2,057 1,723 2,348 Total 12,038 11,754 14,954 16,037 14,322 18,842 18,901 18,964 17,619 17,490 Asia: China, People's Rep. of (China Mainland) 50 50 123 224 101 120 139 63 42 45 45 China, Republic of (Taiwan). 818 818 1,025 1,072 1, 100 1,134 1,130 1,182 1,070 1,131 1,122 Hong Kong 530 530 623 682 741 709 803 747 788 842 874 India 261 261 126 324 338 423 632 845 938 1,047 985 Indonesia 1,221 1,221 369 583 498 920 1,121 706 1,122 1,002 995 Israel 386 389 386 312 346 323 324 316 298 324 300 Japan 10,897 10,931 10,218 11,764 12,265 12,789 13,246 12,847 13,631 14,194 14,421 Korea 384 384 390 382 361 360 327 343 346 369 350 Philippines 747 747 698 616 605 525 593 742 636 653 622 Thailand 333 333 252 224 225 244 218 261 244 249 215 Middle East oil-exporting countries 3 4,633 4,623 6,461 6,993 7,723 7,992 8,473 7,292 7,286 8,127 7,198 Other 813 845 867 933 967 1,017 984 1,003 1,122 376 1,276 Total 21,073 21,130 21,539 24,109 25,271 26,555 27,990 26,347 27,522 29,360 28,404 Africa: Egypt 103 103 343 180 314 231 197 211 236 200 186 South Africa 130 130 169 133 186 177 202 161 123 164 165 Oil-exporting countries 4...., 2,814 2,814 2,239 2,208 ,919 2,256 2,423 2,567 2,443 2,368 2,075 Other 504 504 623 610 680 598 650 652 671 737 650 Total 3,551 3,551 3,373 3,131 3,099 3,262 3,472 3,591 3,473 3,469 3,076 Other countries: Australia 2,742 2,742 2,014 2,070 2,001 1,931 1,950 2,066 2,185 1,964 1,711 All other 89 89 114 131 125 84 93 107 111 122 114 Total 2,831 2,831 2,128 2,201 2,126 2,015 2,043 2,173 2,296 2,087 1,824 Total foreign countries 91,676 91,600 89,057 93,598 90,086 96,486 98,503 93,290 96,149 95,315 95,726 International and regional: International 5 2,900 2,900 5,064 4,180 4,450 5,260 5,258 5,050 5,383 5,285 5,613 Latin American regional 202 202 187 271 191 150 165 189 176 168 154 Other regional 6 69 69 42 70 128 109 109 126 112 196 199 Total 3,171 3,171 5,293 4,520 4,769 5,519 5,512 5,365 5,671 5,649 5,966 Grand total 94,847 94,771 94,350 98,119 94,855 102,004 104,015 98,655 101,820 100,982 101,692 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A65 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY-Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 7 1974 1975 1976 1974 1975 1976 Area and country Area and country Apr. Dec. Apr. Dec. Apr.f Apr. Dec. Apr. Dec. Apr.f Other Western Europe : Other Asia—Cont.: Cyprus 7 Cambodia 4 4 4 4 Iceland 21 Jordan 6 22 30 39 20 Ireland, Rep. of 29 Laos 3 3 5 2 2 Lebanon 68 126 180 117 Other Latin American republics: Malaysia 40 63 92 77 105 Bolivia 96 93 110 104 Pakistan 108 91 118 74 89 Costa Rica 118 120 125 69 Singapore 165 245 215 255 Dominican Republic 137 128 214 169 149 Sri Lanka (Ceylon). . . 13 14 13 13 9 Ecuador 90 122 157 120 Vietnam 98 126 70 62 33 El Salvador 129 129 144 171 128 Guatemala 245 219 255 260 177 Haiti 28 35 34 38 36 Honduras 71 88 92 99 69 Other Africa: Jamaica 52 69 62 41 49 Ethiopia (incl. Eritrea) 118 95 76 60 70 Nicaragua 119 127 125 133 89 Ghana 22 18 13 23 Paraguay 40 46 38 43 43 Kenya 20 31 32 19 37 Trinidad and Tobago 21 107 31 131 Liberia 29 39 33 53 61 Southern Rhodesia. . . 1 2 3 1 Other Latin America: Sudan 2 4 14 12 17 Bermuda 201 116 100 170 Tanzania 12 11 21 30 18 British West Indies 354 449 627 1,311 Tunisia 17 19 23 29 33 Uganda 11 13 38 22 Other Asia : Zambia 66 22 18 78 Afghanistan 18 19 54 Burma 42 65 49 All other: New Zealand 47 36 29 1 Data in the 2 columns shown for this date differ because of changes 4 Comprises Algeria, Gabon, Libya, and Nigeria. in reporting coverage. Figures in the first column are comparable in 5 Data exclude holdings of dollars of the International Monetary Fund. coverage with those for the preceding date; figures in the second column 6 Asian, African, and European regional organizations, except BIS, are comparable with those shown for the following date. which is included in "Europe." 2 Includes Bank for International Settlements. 7 Represent a partial breakdown of the amounts shown in the other 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, categories (except "Other Eastern Europe"). and United Arab Emirates (Trucial States). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To intl. End of period Total and Official Other United Total All regional Total institu- Banksi foreign- Ger- King- Total Latin Middle Other other tions ers many dom Europe America East2 Asia3 countries 197 2 1,018 580 439 93 259 87 165 63 260 136 33 10 197 3 1,462 761 700 310 291 100 159 66 470 132 83 16 197 4 1,285 822 464 124 261 79 146 43 227 115 94 8 20 1975—Oct... 1,525 311 1,212 868 261 83 118 61 226 126 832 6 24 Nov.. 1,561 297 1,263 894 286 83 115 66 231 147 857 12 24 Dec.. . 1,812 415 1,395 931 364 100 214 66 331 140 894 8 24 1976—Jan... 1,935 306 1,627 1,027 477 123 314 70 448 142 990 8 41 Feb... 1,919 286 1,631 1,050 473 107 312 69 444 141 1,009 12 26 Mar.. 2,132 182 1,949 1,342 492 115 306 78 443 147 1,305 16 40 Apr.r. 2,147 197 1,948 1,382 435 131 309 87 457 108 1,335 24 25 May. . 2,134 135 1,997 1,429 431 137 306 87 453 104 1,399 16 26 June. 2,255 189 2,065 1,490 434 141 308 88 459 107 1,458 16 26 July.. 2,308 235 2,072 1,479 450 143 307 89 463 117 1,448 17 28 Aug.. 2,254 246 2,003 1,402 452 149 311 92 469 122 1,369 19 28 Sept.P 2,218 214 1,998 1,386 453 159 312 91 470 125 1,340 41 28 Oct.2'. 2,312 333 1,959 1,314 479 166 310 95 485 151 1,286 27 29 1 Excludes central banks, which are included with "Official institutions." Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial 2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, States). 3 Until Dec. 1974 includes Middle East oil-exporting countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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. Oct. Nov. Dec. Jan. Feb r Mar.r Apr.r Mayr Juner Julyr Aug. Sept.p Oct.^ Europe: Belgium-Luxembourg. 10 14 13 13 13 13 13 14 13 12 11 9 9 Germany, 9 216 216 215 212 238 247 228 225 227 221 324 518 Sweden 251 275 275 276 276 276 276 276 281 291 291 275 240 Switzerland 30 54 58 55 68 72 75 89 99 101 132 171 268 United Kingdom 493 441 414 363 374 370 386 389 349 380 368 383 396 Other Western Europe 152 165 159 209 213 381 465 472 551 577 567 589 Eastern Europe 5 4 4 4 4 4 4 4 4 4 4 4 Total. 885 ,157 ,145 1,085 1,156 1,186 1,382 1,465 ,443 ,566 ,604 1,733 2,024 Canada 713 400 402 395 395 418 419 425 340 340 341 337 386 Latin America: Latin American republics.. 13 33 33 33 33 33 33 34 34 39 39 30 Netherlands Antilles 1.... 158 160 161 159 131 121 120 125 141 157 222 138 Other Latin America 6 6 6 7 7 7 7 7 7 7 10 10 Total. 177 199 200 160 166 182 203 271 178 Asia: Japan 3,498 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 1,818 1,869 2,099 2,229 2,432 2,974 3,331 3,800 4,391 4,624 4,931 5,499 Total 3,709 5,339 5,138 5,370 5,497 5,644 6,191 6,547 6,875 7,466 7,701 7,883 8,552 Africa 151 311 311 321 340 350 396 411 431 471 501 521 531 All other Total foreign countries. 5,557 7,383 7,195 7,372 7,589 7,771 8,548 9,009 9,254 10,026 10,350 10,746 11,671 International and regional: International 324 322 593 1,034 957 159 155 589 1,065 1,388 ,768 Latin American regional... 15 9 -1 -1 -1 -3 -6 -6 3 13 23 Total 150 339 69 331 592 1,033 956 156 149 582 1,068 1,401 1,791 Grand total., 5,708 7,722 7,263 7,702 8,181 8,803 9,503 9,165 9,403 10,608 11,419 12,147 13,462 1 Includes Surinam until Jan. 1976. year, and are based on a benchmark survey of holdings as of Jan. 31,1971, NOTE.—Data represent estimated official and private holdings of mar- and monthly transactions reports (see Table 14). ketable U.S. Treasury securities with an original maturity of more than 1 11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to— Accept- Foreign End of period Collec- ances govt, setions made Deposits curities, Official out- for acct. Other Total with for- coml. Total institu- Others2 stand- of for- eigners and fitions ing eigners nance paper 15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 20,723 20,061 7,660 284 4,538 2,838 4,307 4,160 3,935 662 428 39,056 37,859 11,296 381 7,337 3,579 5,637 11,237 9,689 1,196 669 48,189 46,848 12,800 649 7,635 4,516 5,465 10,145 18,438 1,341 769 48,779 47,440 13,557 697 8,381 4,479 5,363 10,623 17,898 1,339 672 50,240 48,910 13,247 614 7,705 4,927 5,467 11,147 19,049 1,329 656 51,584 50,318 13,464 697 8,126 4,642 5,311 11,058 20,485 1,266 721 54,184 52,752 14,270 754 8,735 4,781 5,191 11,006 22,285 1,432 764 53,856 52,260 13,617 765 8,043 4,809 5,367 11,156 22,120 1,326 798 55,700 54,220 14,525 766 8,809 4,951 5,325 11,310 23,060 1,480 955 57,622 56,203 15,815 1,011 9,537 5,267 5,379 11,323 23,686 1,419 885 57,965 56,370 15,190 820 9,130 5,240 5,517 11,541 24,123 1,595 954 59,332 57,875 15,597 737 9,670 5,189 5,542 11,451 25,285 1,457 850 58,016 56,474 15,266 1,016 9,059 5,191 5,495 11,144 24,568 1,542 903 60,315 58,659 14,921 793 9,007 5,121 5,746 11,213 26,779 1,656 1,029 60,858 59,167 16,233 1,008 10,081 5,143 5,586 11,461 25,887 1,691 1,039 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

DECEMBER 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.' Feb.' Mar.' Apr.' May' June' July' Aug. Sept.25 Oct.f Europe: 21 15 23 2222 3399 25 35 24 24 47 42 Belgium-Luxembourg 384 352 417 432 398 427 537 562 472 445 497 Denmark 46 49 55 55 59 57 62 68 50 57 64 122 128 120 128 105 109 125 133 176 129 137 673 1,471 1,513 1,256 1,233 1,109 1,145 1,100 929 1,169 1,096 589 '436 420 469 446 442 384 432 414 501 587 Greece 64 49 52 53 63 62 53 70 68 117 88 Italy 345 370 402 360 406 492 552 644 617 648 733 Netherlands 348 300 267 269 290 267 318 251 266 254 397 119 71 63 66 71 76 71 74 78 68 79 Portugal 20 16 20 21 18 32 40 53 57 55 46 Spain 196 249 262 231 241 321 285 302 239 265 264 180 167 111 124 108 116 106 97 143 106 101 Switzerland 335 237 278 340 400 355 401 374 442 417 499 15 86 82 73 68 90 99 81 77 80 125 United Kingdom 2,580 4,718 4,778 4,561 5,295 4,987 5,074 5,435 5,167 4,844 5,582 Yugoslavia 22 38 49 62 48 44 45 45 40 28 37 Other Western Europe 22 27 29 29 27 41 57 42 50 56 54 U.S.S.R 46 103 84 85 63 70 70 69 53 52 83 Other Eastern Europe 131 '108 153 102 100 102 110 147 125 107 123 Total 6,255 8,987 9,177 8,738 9,479 9,224 9,567 10,003 9,487 9,443 10,633 Canada 2,776 2,817 2,983 2,917 3,253 3,364 3,166 3,027 3,050 3,169 3,129 Latin America: Argentina 720 1,203 1,338 11,,229900 11,,337744 1,342 1,149 1,149 1,149 961 902 Bahamas 3,405 7,577 10,048 10,324 10,277 11,114 11,466 12,381 11,532 14,192 12,591 Brazil 1,418 2,221 2,201 2,314 2,347 2,414 2,700 2,633 2,773 2,892 3,126 Chile 290 360 343 324 353 356 342 364 352 343 350 Colombia 713 r689 583 543 537 518 534 537 501 459 517 1,972 2,804 3,071 3,027 3,228 3,444 3,494 3,562 3,559 3,456 3,209 Panama 505 1,052 1,193 1,110 787 991 840 697 778 809 1,124 Peru 518 583 634 597 638 621 623 665 666 694 638 Uruguay 63 51 62 46 39 33 34 31 31 28 28 704 1,086 925 1,040 1,077 1,280 1,153 1,237 1,503 1,305 1,328 Other Latin American republics 866 980 1,061 986 1,052 1,153 996 1,072 991 1,125 1,050 Netherlands Antilles and Surinam 62 49 43 33 32 32 33 28 29 42 41 Other Latin America 1,142 1,885 3,264 2,747 3,747 4,023 3,667 4,121 3,751 3,737 4,049 Total 12,377 20,540 24,767 24,380 25,488 27,321 27,030 28,477 27,614 30,042 28,954 Asia: China, People's Rep. of (China Mainland) 4 22 17 22 18 9 10 12 4 4 5 China, Republic of (Taiwan) 500 737 729 775 793 860 863 908 939 981 991 Hong Kong 223 258 225 229 200 228 273 296 251 252 208 India 14 21 26 25 26 34 38 36 36 33 64 Indonesia 157 103 128 159 158 167 160 125 108 119 117 Israel 255 491 365 309 314 285 315 269 257 313 320 12,518 '10,776 9,904 10,212 10,154 10,009 10,389 10,340 10,116 10,218 10,534 955 1,561 1,720 1,604 1,717 1,679 1,713 1,614 1,551 1,594 1,555 Philippines 372 384 507 510 520 559 524 389 459 472 478 458 499 520 537 533 491 490 465 437 434 414 Middle East oil-exporting countries 1... 330 524 600 646 588 669 746 780 836 721 765 Other 441 684 705 731 632 786 718 665 838 553 647 Total 16,226 16,057 15,445 15,760 15,654 15,774 16,240 15,898 15,832 15,693 16,098 Africa: Egypt 111 '101 98 101 108 104 117 117 115 114 106 South Africa '329 545 546 575 631 672 689 698 695 691 770 Oil-exporting countries 2 115 231 230 226 210 211 181 185 268 176 215 Other 300 351 331 267 298 336 327 310 317 351 288 Total 855 1,228 1,205 1,169 1,247 1,323 1,314 1,310 1,395 1,332 1,379 Other countries: 466 535 492 521 498 547 548 542 553 521 558 All other 99 73 113 98 79 67 100 74 85 110 103 Total 565 609 605 619 577 615 647 617 638 631 661 Total foreign countries 39,055 '50,238 54,182 53,583 55,698 57,621 57,964 59,331 58,015 60,311 60,854 International and regional 1 2 3 2 1 1 1 5 3 Grand total 39,056 50,240 54,814 53,586 55,700 57,622 57,965 59,332 58,016 60,315 60,858 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. • DECEMBER 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 TTToootttaaalll PPaayyaabbllee period Loans to— iinn TToottaall TToottaall MMiiddddllee OOtthheerr AAllll OOtthheerr ffoorreeiiggnn EEuurrooppee CCaannaaddaa LLaattiinn JJaappaann EEaasstt33 AAssiiaa44 ootthheerr lloonngg-- ccuurrrreenn-- AAmmeerriiccaa ccoouunn-- Official Other tteerrmm cciieess ttrriieess 22 Total institu- Banks1 foreign- ccllaaiimmss tions ers 2 197 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—Oct. 8,959 8,005 1,281 1,542 5,181 840 114 2,574 595 3,179 292 222 1,233 865 Nov. r . 9,176 8,156 1,318 1,578 5,260 903 118 2,569 569 3,299 293 249 1,237 961 Dec.r.. 9,540 8,489 1,375 1,740 5,374 934 116 2,708 555 3,468 296 220 1,279 1,013 1976—Jan. . 9,463 8,400 1,299 1,671 5,430 945 118 2,709 552 3,394 289 205 1,280 1,033 Feb.r.. 9,566 8,407 1,268 1,678 5,460 1,012 148 2,634 576 3,487 289 210 1,273 1,096 Mar.r . 9,831 8,672 1,316 1,763 5,592 1,011 149 2,717 570 3,616 292 296 1,198 1,142 Apr. r.. 10,013 8,816 1,337 1,867 5,611 1,081 116 2,751 558 3,798 307 196 1,282 1,120 May r.. 10,266 9,018 1,381 1,945 5,692 1,133 115 2,839 607 3,973 307 196 1,266 1,077 Juner.. 10,216 8,957 1,370 1,961 5,626 1,138 121 2,742 590 4,081 324 182 1,261 1,037 July. . 10,386 9,098 1,346 2,085 5,667 1,155 133 2,871 575 4,103 337 183 1,290 1,027 Aug 10,960 9,603 1,369 2,220 6,014 1,224 133 3,093 592 4,383 355 187 1,293 1,057 Sept.P . 11,205 9,816 1,339 2,302 6,174 1,248 142 3,133 623 4,519 370 171 1,315 1,074 Oct.p.. 11,349 9,929 1,342 2,367 6,220 1,281 139 3,191 570 4,561 381 172 1,356 1,120 1 Excludes central banks, which are included with "Official institutions." Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 2 Includes international and regional organizations. (Trucial States). 3 Comprises Middle East oil-exporting countries as follows: Bahrain, 4 Until Dec. 1974 includes Middle East oil-exporting countries. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) Marketable U.S. Treas. bonds and notes1 U.S. corporate Foreign bonds3 Foreign stocks3 securities2,3 Net purchases or sales ( —) Period Pur- Net pur- Pur- Net pur- Pur- Net pur- Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases or Total and ssaalleess (( ——)) ssaalleess (( ——)) ssaaiieess (( ——)) 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 1,995 180 1,814 1,612 203 20,741 15,321 5,421 2,383 8,687 6,305 1,541 1,730 -189 1976-—J an.-Oct.25 6,779 2,197 4,582 4,356 226 20,301 16,568 3,733 3,852 10,646 -6,794 1,553 1,878 -325 1975--Oct.r 482 272 210 173 38 2,133 1,382 751 195 678 -484 138 162 -24 Nov.r -459 -270 -189 -159 -29 1,674 1,249 426 248 995 -747 108 79 28 Dec.r 439 262 177 187 -10 1,894 964 930 282 1,471 -1,190 148 97 51 1976-—Jan.r 478 261 217 210 7 2,838 2,080 758 462 800 -339 145 142 3 Feb. ' 623 441 182 176 6 2,507 2,088 418 402 1,547 -1,145 162 222 -60 Mar.r 700 -77 777 731 46 2,530 1,976 554 360 1,293 -933 193 246 -53 Apr.r -338 -799 461 457 4 2,265 1,683 571 342 763 -422 182 143 40 May r 238 -7 245 263 -18 1,639 1,501 138 373 822 -450 198 240 -42 Juner 1,205 434 772 717 55 1,823 1,333 490 281 813 -531 162 206 -44 July 810 486 324 294 31 1,902 1,517 385 440 2,173 -1,734 128 257 -129 Aug 729 333 396 316 80 1,461 1,194 268 333 811 -478 123 134 -11 Sept.? 1,315 390 925 964 -40 1,485 1,465 20 363 790 -427 126 153 -27 Oct.P 1,019 736 283 227 55 1,851 1,720 131 497 832 -335 132 133 -2 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.-Oct.f 3,108 210 abroad. 3 Includes transactions of international and regional organizations. 1975—Oct. 150 50 4 Includes transactions (in millions of dollars) of oil-exporting countries Nov. 51 in Middle East and Africa as shown in the tabulation in the opposite Dec. 179 10 column; 1976—Jan. 116 20 Feb. 181 10 Mar. 532 45 Apr. 320 15 May 460 20 June 611 40 July 246 30 Aug. 228 20 Sept.p 315 10 Oct? 98 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A69 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur- Net pur- Ger- Nether- Switzer- United Total Total Middle Other Period chases Sales chases or France many lands land King- Europe Canada America East1 Asia2 Other3 sales (—) dom Latin 1973 12,767 9,978 2,790 439 2 339 686 366 2,104 99 4 577 5 1974 7,636 7,096 540 203 39 330 36 -377 281 -6 -33 288 10 1975 15,347 10,678 4,669 262 251 359 899 594 2,491 361 -7 1,640 142 43 1976—Jan.-Oct.2'. 15,667 13,153 2,514 244 60 -135 -54 260 339 253 131 1,624 131 36 1975—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.r 2,091 1,548 543 1 136 -48 * 88 210 40 76 222 -6 1 Feb.r 2,098 1,727 372 15 12 -14 64 41 134 48 11 175 5 2 Mar.r 2,144 1,559 585 79 26 -6 148 69 329 16 30 153 42 13 Apr.r 1,695 1,284 411 10 10 31 -20 49 84 23 25 254 22 4 Mayr 1,212 1,097 115 3 -44 4 21 20 -9 30 6 67 16 4 June r 1,432 1,178 254 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.25 1,124 1,116 9 23 -6 -26 -55 29 -60 5 10 60 -4 -2 Oct.? 1,226 1,321 -95 -12 -16 -37 -95 -72 -251 18 -17 126 28 4 1 Comprises Middle East oil-exporting countries as follows: Bahrain, 2 Until 1975 includes Middle East oil-exporting countries. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 3 Includes international and regional organizations. (Trucial States). 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Ger- Nether- Switzer- United Total Total Middle Other Total Other Intl. and Period Total France many lands land Kingdom Europe Canada Latin East1 Asia2 Africa countries regional America 1973 11,,994488 220011 --3333 --1199 330077 227755 11,,220044 4499 4444 558888 ** 1100 5522 I974r 778899 9966 3333 118833 9966 339955 774411 4455 4433 663322 ** 1100 --448833 1975 r 752 82 -11 15 117 87 106 128 31 1,553 -42 5 1 -rl,029 1976—Jan.-Oct.^. 1,219 33 -54 -6 181 -8 27 73 61 1,126 -111 -9 -20 74 1975—Oct 323 1 -50 2 12 78 40 38 11 247 -4 3 * -11 Nov 88 39 8 -17 9 -41 -25 — 1 6 93 4 1 1 * 11 Dec 242 2 3 3 8 56 74 6 6 150 -11 * 16 1976—Jan 215 5 -1 ! 36 -30 7 29 3 221 -20 -2 -10 -13 Feb 47 2 -1 2 20 -2 23 4 6 30 -34 1 * 18 Mar -31 3 -56 -3 5 -11 -70 9 1 35 -20 4 -10 20 Apr 160 3 9 -5 4 -26 -25 7 3 179 -13 7 * 4 May 22 3 -2 * 23 19 -2 -3 -3 37 6 * * -13 June 236 6 -1 -2 18 8 29 1 * 224 -19 * * * July 153 10 -3 4 35 3 49 2 7 104 -2 1 * -8 Aug 179 4 -3 -3 16 23 29 9 9 121 5 * * 6 Sept.p 11 -1 * * 17 7 8 18 5 18 -15 -19 * -4 Oct.? 226 -1 5 1 8 * -23 29 156 2 -2 * 64 -1 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.-Oct.2'.. -7,118 -1,237 -5,881 -724 -4,419 45 -606 46 -221 Sept. 298 178 Dec. 293 194 1975—Oct -508 5 -513 48 -460 -48 -55 -3 6 Nov.r.. >•-719 -62 r —657 -27 r —588 6 2 -2 -48 1975—Mar. 349 209 Dec -1,139 -839 -300 79 -310 9 -79 -1 1 June, 380 233 Sept. 343 258 1976—Jan,., -335 94 -429 -109 -304 -9 -7 -3 2 Dec. 365 319 Feb -1,205 -139 -1,067 33 -973 5 -113 -4 -14 Mar.... -986 9 -995 -168 -738 -72 -14 -5 2 1976—Mar. 411 333 Apr.. . . -382 -94 -288 * -286 6 -15 4 2 May. .. -491 -158 -333 -19 -233 -39 -77 32 3 June... -576 6 -582 -52 -328 10 12 11 -234 NOTE.—Data represent the money credit balances and July.... -1,862 -819 -1,044 -130 -853 19 -93 9 3 money debit balances appearing on the books of reporting Aug.. .. -489 -66 -423 -60 -98 47 -317 1 3 brokers and dealers in the United States, in accounts of Sept. p.. r—454 17 -471 -145 -331 20 -16 * 2 foreigners with them, and in their accounts carried by Oct.p.. . -337 -87 -249 -75 -276 59 34 1 9 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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—Dec... 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 1974—Dec... 151,905 6,900 4,464 2,435 138,712 27,559 60,283 4,077 46,793 1975—Sept.r. 167,886 6,575 3,268 3,307 154,905 32,140 65.876 4,755 52,134 Oct.r. 171,465 7,924 4,896 3,027 156,989 33,496 65,348 5,138 53,007 Nov.r. 173,736 8,705 5,777 2,928 158,179 34,385 65,296 5,419 53,079 Dec.r. 176,493 6,743 3,665 3,078 163,391 34,508 69,206 5,792 53,886 1976—Jan.r. 179,761 8,033 5,045 2,988 165,548 37,064 67,787 6,044 54,653 Feb.r. 181,651 8,959 5.926 3,033 166,250 35,200 69,244 6,251 55,554 Mar.r. 186,870 6,742 3,525 3,217 173,577 38,867 72,404 6,579 55,727 Apr.r. 189.437 9,054 6,049 3,005 173,827 39,563 70,652 7,116 56,495 May r. 194,592 9,610 6,450 3,160 178,215 39,982 73,611 7,717 56,905 June r. 194,481 6,613 3,272 3,341 181,239 40,975 74,400 7,814 58,049 July r. 196,776 8,703 5,569 3,134 181,239 41,682 71,766 8,444 59,347 Aug... 196,116 7,169 3.927 3,242 182,232 40,890 71,605 8,835 60,902 Sept. 199,764 6,679 3,247 3,432 186,022 41,133 74,833 9,165 60,891 Payable in U.S. dollars. 1973—Dec... 79,445 4,599 2,751 73,018 12,799 39,527 1,777 18,915 1974—Dec.. . 105,969 6,603 4,428 2,175 96,209 19,688 45,067 3,289 28,164 1975—Sept.r. 124,373 6,238 3,211 3,027 115,178 26,043 51,998 3,934 33,202 Oct.r. 127,355 7,506 4,822 2,684 116,673 27,357 50,820 4,264 34,232 Nov.r. 130,233 8,350 5,725 2,625 118,603 28,317 51,624 4,549 34,113 Dec.r. 132,901 6,408 3,628 2,780 123,496 28,478 55,319 4,864 34,835 1976—Jan. 134,713 7,697 5,005 2,692 123,925 30,113 53,370 5,151 35,291 Feb.r. 136,307 8,644 5,881 2,763 124,433 28,730 54,497 5,283 35,923 Mar.r. 138,201 6,464 3,478 2,986 128,629 30,496 56,039 5,638 36,456 Apr.r. 140,971 8,759 5,980 2,778 129,141 31,510 54,496 6,061 37,075 May r. 146.438 9,294 6,374 2,921 133,900 32,121 57,532 6,553 37,695 June r. 145,994 6,296 3,203 3,093 136,629 32,857 58,856 6,611 38,304 July. 149,071 8,434 5,524 2,910 137,246 33,790 56,603 7,148 39,704 Aug... 147,200 6,855 3,J 2,967 137,139 32,933 56,226 7,643 40,337 Sept.*\ 150,394 6,269 3,184 3,085 140,879 33,319 58.877 7,906 40,777 IN UNITED KINGDOM Total, all currencies 1973—Dec... 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 1974—Dec... 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 1975—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—Jan.. . 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 18,143 35,799 888 15,695 July r. 73,494 1,862 1,002 860 69,359 18,843 33,589 909 16.018 Aug... 73,229 1,758 938 821 69,298 18,044 34,135 1,007 16,112 Sept.3'. 73,589 2,087 1,081 1,006 69,126 17,745 34,405 1,138 15,838 Payable in U.S. dollars. 1973—Dec... 40,323 1,642 730 912 37,816 6,509 23,389 510 7,409 1974—Dec... 49,211 3,146 2,468 678 44,693 10,265 23,716 610 10,102 1975—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—Jan.. . 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 15,455 27,066 631 9,747 July r. 54,871 1,780 997 783 52,249 16,204 25,370 659 10,018 Aug... 54,522 1,658 934 724 52,006 15,401 25,826 799 9,980 Sept.* 54,547 1,902 1,064 838 51,781 15,195 25,866 862 9,858 IN BAHAMAS AND CAYMANS i Total, all currencies 1973—Dec... 23,771 2,210 317 1,893 21,041 1,928 9,895 1,151 8,068 1974—Dec... 31,733 2,464 1,081 1,383 28,453 3,478 11,354 2,022 11,599 1975—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—Jan.. . 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 Mayr. 57,247 5,884 3,950 1,935 50,040 6,435 20,173 5,091 18,342 June r. 57,118 3,716 1,636 2,081 52,363 7,254 21,205 5,160 18,744 July r. 59,913 5,835 3,864 1,971 52,898 7,149 20,669 5,699 19,381 Aug... 57,677 3,750 1,641 2,109 52,737 6,791 20,021 5,929 19,995 Sept.?, 260,753 3,330 1,257 2,072 56,255 7,250 22,447 6,059 20,498 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 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. 18.502 11,026 7,476 143,182 31,567 70,853 19,780 20,981 6,202 . 1975—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 34,111 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 38,811 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' 28,620 15,951 12,669 161,543 41,061 74,189 22,233 24,060 6,612 July 27,116 16,485 10,631 162,635 40,064 74,348 23,393 24,829 6,366 Aug. 29,997 19,010 10,987 163,319 40,246 74,980 23,700 24,393 6,448 Sept.23 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. 17,871 10,823 7,048 105,765 25,607 50,726 16,777 12,654 3,213 . 1975—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 27,854 15,697 12,157 121,944 33,850 53.568 19,580 14,947 3,377 July r 26,348 16,246 10,102 122,148 32,687 53,298 20,585 15,579 3,252 Aug. 29,103 18,672 10,431 122,716 33,050 53,447 20,756 15,463 3,291 Sept.23 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 2,418 .1974—Dec. 5,112 1,833 3,279 64,962 6,396 33,130 14,486 10,950 2,046 . 1975—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 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. 5,387 1,442 3,945 66,018 6,788 31,007 16,389 11,834 2,184 Sept.? 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 ,328 .1974—Dec. 4,889 1,808 3,081 48,814 5,456 23,645 12,182 7,531 980 . 1975—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. 5,31 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 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. 5,191 1,404 3,787 49,572 5,790 20,518 14,418 8,846 862 Sept.3 IN BAHAMAS AND CAYMANS i 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. 9,928 6,490 3,439 30,861 8,918 16,834 2,570 2,540 812 .1975—Sept. 10,833 7,056 3,778 32,372 9,725 17,296 2,775 2,577 961 Oct. ,082 6,710 4,372 32,239 10,553 15,972 3,230 2,483 1,150 Nov. ,147 7,628 3,520 32,949 10,569 16,825 3,308 2,248 1,106 Dec. 13,111 8,088 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. 21,222 15,288 5,934 38,497 11,985 20,576 2,712 3,224 1,035 Sept.* 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. • DECEMBER 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 ir l custody Payable in dollars foreign currencies End of period Deposits U se . c S u . r T it r i e e a s1 s . Ear g m o a ld r ked EE ppee nn rr dd ii oo oo dd ff TToottaall Deposits i S n t h e v o r 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 1972 325 50,934 215,530 1973 251 52,070 217,068 1974 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—Nov... 346 60,512 16,745 1974 3,357 2,591 68 429 268 1,350 967 Dec.. . 352 60,019 16,745 1975—Aug 3,563 2,292 239 512 520 1,052 1,322 1976—Jan.... 294 61,796 16,669 Sept 3,696 2,456 266 478 496 1,139 1,261 Feb.... 412 62,640 16,666 Oct 3,527 2,498 351 429 249 1,199 1,167 Mar... 305 61,271 16,660 Nov 3,922 2,709 468 461 284 1,308 1,382 Apr.... 305 62,527 16,657 Dec 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 4,437 3,356 393 435 253 1,690 1,325 Sept... 392 64,215 16,590 Apr 4,968 3,855 412 432 267 2,061 1,381 Oct.... 362 64,942 16,505 May 5,201 4,088 426 451 237 1,912 1,521 Nov... 305 63,962 16,457 June 4,939 3,963 345 433 199 1,908 1,274 July. . . 5,190 4,172 380 431 207 2,060 1,415 Aug 5,111 4,088 419 377 227 2,064 1,393 1 Marketable U.S. Treasury bills, certificates of in- Sept.f.... 4,660 3,617 370 445 228 1,690 1,305 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 1QT) J 3,119 2,635 484 5,721 5,074 410 237 I 3,417 2,948 469 6,302 5,643 393 267 1973—Mar 3,320 2,848 472 7,024 6,154 456 414 June 3,295 2,772 523 7,298 6,456 493 349 Sept 3,579 2,931 648 7,635 6,708 528 399 Dec 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 5,139 4,184 955 11,079 10,154 429 496 Sept 5,605 4,656 949 10,764 9,796 430 537 Dec 5,933 5,017 916 11,296 10,239 473 584 1975—Mar 5,953 5,082 871 10,949 9,818 453 678 June 5,961 5,116 845 10,899 9,618 479 801 Sept 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 i 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

DECEMBER 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. • DECEMBER 1976 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims EEEnnnddd ooofff pppeeerrriiioooddd TTToootttaaalll Country or area llliiiaaabbbiiillliiitttiiieeesss TToottaall 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 ll e r 1971—Dec 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1 Q70 T>or> 1 J 3,540 3,312 163 715 775 184 60 658 156 406 87 109 \ 3,603 3,666 191 745 1,141 187 64 703 133 378 86 38 1973—Mar 3,781 3,798 156 802 1,151 165 63 796 123 393 105 45 June 3,785 3,853 180 805 1,163 146 65 825 124 390 108 48 Sept 4,000 3,999 216 822 1,166 147 73 832 134 449 108 51 Dec 3,886 4,057 290 761 1,172 145 79 829 125 488 115 53 1974—Mar 3,836 4,194 369 737 1,210 194 81 809 123 488 122 61 June 3,536 4,191 363 699 1,226 184 138 756 123 515 126 61 Sept 3,371 4,324 370 704 1 ,256 181 145 796 119 571 122 59 Dec 3,889 4,544 364 644 1,290 187 153 1,045 112 569 127 54 1975—Mar 4,168 4,523 340 655 1,334 182 169 1,008 102 540 139 54 June 4,273 4,454 299 634 1,328 182 161 982 98 556 146 68 Sept 4,224 4,589 366 620 1,347 177 228 927 95 608 154 67 Dec 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 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 months * money2 bills, 3 months money deposit mmoonneeyy33 60-90 money 5 3 months money rate 3 months rates days4 1973 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1974 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 6.67 1975 7.36 7.34 10.57 10.16 10.13 7.23 7.89 3.51 4.23 4.41 3.65 6.25 1975—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 9.07 9.13 1144..7755 14.40 14.34 1111..0000 11.08 33..1133 2.48 4.50 Nov 88..8888 99..0099 1144..1155 1144..8888 1100..6677 33..8855 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, orcv^ii vci^ i . 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 $56,600 million and $57,232 million, respectively, on September 30, 1976. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent NOTE.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1976 • CENTRAL BANK AND EXCHANGE RATES A75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Nov. 30 1976 Rate as of Nov. 30 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.... 6.0 Nov. 1976 Canada 9.0 Nov. 1976 Norway 6.0 Sept. 1976 Denmark 11 .0 Oct. 1976 Sweden 8.0 Oct. 1976 France 10.5 Sept. 1976 Switzerland 2.0 June 1976 Germany, Fed. Rep. of, 3.5 Sept. 1975 United Kingdom 14.75 Nov. 1976 Venezuela 5.0 Oct. 1970 NOTE.—Rates shown are mainly those at which the central bank either Japan—Penalty rates (exceeding the basic rate shown) for borrowings discounts or makes advances against eligible commercial paper and/or from the central bank in excess of an individual bank's quota; govt, securities for commercial banks or brokers. For countries with United Kingdom—The bank's minimum lending rate, which is the more than one rate applicable to such discounts or advances, the rate average rate of discount for Treasury bills established at the most recent shown is the one at which it is understood the central bank transacts tender plus one-half per cent rounded to the nearest one-quarter per cent the largest proportion of its credit operations. Other rates for some of above; these countries follow: Venezuela—2 per cent for rediscounts of certain agricultural paper, 4% Argentina—3 and 5 per cent for certain rural and industrial paper, de- per cent for advances against government bonds, and 5l/i per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; 27. FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (deutsche (rupee) (pound) (lira) (yen) mark) 1972. 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973. 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1974, 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1975 130.77 5.7467 2.7253 98.297 17.437 23.354 40.729 11.926 222.16 .15328 .33705 1975-—Nov 126.26 5.4535 2.5618 98.631 16.564 22.684 38.619 11.238 204.84 .14721 .33053 Dec 125.38 5.3986 2.5311 98.627 16.253 22.428 38.144 11.134 202.21 .14645 .32715 1976-—Jan 125.65 5.4300 2.5443 99.359 16.231 22.339 38.425 11.178 202.86 .14245 .32826 Feb 125.85 5.4628 2.5554 100.652 16.278 22.351 39.034 11.186 202.62 .13021 .33157 Mar 124.79 5.4383 2.5480 101.431 16.273 21.657 39.064 11.157 194.28 .12113 .33276 Apr 123.72 5.4964 2.5667 101.668 16.553 21.411 39.402 11.123 184.63 .11371 .33433 May 123.37 5.4535 2.5517 102.02 16.487 21.272 39.035 11.080 180.79 .11676 .33444 June 122.75 5.4136 2.5220 102.71 16.314 21.109 38.797 10.980 176.40 .11780 .33424 July 123.59 5.4500 2.5182 102.86 16.225 20.651 38.842 11.205 178.50 .11943 .33940 Aug 124.18 5.5645 2.5632 101.49 16.448 20.131 39.538 11.143 178.28 .11936 .34410 Sept 124.25 5.6567 2.6046 102.56 16.694 20.334 40.169 11.036 172.72 .11837 .34800 Oct 123.40 5.7960 2.6822 102.81 16.968 20.072 41.165 11.243 163.77 .11684 .34344 Nov 120.66 5.8332 2.7047 101.46 16.934 20.042 41.443 11.155 163.81 .11554 .33879 Malaysia Mexico Nether- New Norway Portugal South Spain Sweden Switzer- United Period (ringgit) (peso) lands Zealand (krone) (escudo) Africa (peseta) (krona) land Kingdom (guilder) (dollar) (rand) (franc) (pound) 1972 35.610 8.0000 31.153 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1973 40.988 8.0000 35.977 136.04 17.406 4.1080 143.88 1.7178 22.970 31.700 245.10 1974 41.682 8.0000 37.267 140.02 18.119 3.9506 146.98 1.7337 22.563 33.688 234.03 1975 41.753 8.0000 39.632 121.16 19.180 3.9286 136.47 1.7424 24.141 38.743 222.16 1975—Nov 38.929 8.0000 37.638 104.75 18.116 3.7318 114.69 1.6869 22.788 37.683 204.84 Dec 38.670 8.0000 37.234 103.77 17.988 3.6836 114.75 1.6765 22.685 37.970 202.21 1976—Jan 38.696 8.0000 37.429 104.06 17.992 3.6562 114.80 1.6751 22.831 38.418 202.86 Feb 38.998 8.0000 37.529 104.25 18.098 3.6394 114.79 1.5523 22.861 38.912 202.62 Mar 39.047 8.0000 37.149 102.42 18.022 3.4987 114.83 1.4947 22.702 38.980 194.28 Apr 39.032 8.0000 37.215 100.19 18.201 3.3759 114.84 1.4864 22.709 39.531 184.63 May 39.079 8.0000 36.811 99.33 18.184 3.3195 114.85 1.4788 22.653 40.205 180.79 June 39.148 8.0000 36.524 98.09 18.020 3.2145 114.94 1.4724 22.475 40.484 176.40 July 39.589 8.0000 36.643 99.05 17.899 3.1810 114.83 1.4685 22.379 40.242 178.50 Aug 40.077 8.0000 37.393 99.66 18.150 3.1982 114.84 1.4651 22.660 40.302 178.28 Sept 39.753 5.0286 38.390 98.87 18.427 3.2062 114.77 1.4721 22.998 40.431 172.72 Oct 39.575 4.8535 39.265 96.48 18.812 3.1920 114.85 1.4675 23.511 40.876 163.77 Nov 39.513 4.0200 39.678 95.39 18.954 3.1742 114.88 1.4626 23.699 40.958 163.81 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

> C\ Board of Governors of the Federal Reserve System ARTHUR F. BURNS, Chairman STEPHEN S. GARDNER, Vice Chairman HENRY C. WALLICH PHILIP E. COLD WELL 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 tJoHN J. MINGO, Associate Adviser DIVISION OF FEDERAL RESERVE BALDWIN B. TUTTLE, Deputy General J. CORTLAND G. PERET, Associate Adviser BANK EXAMINATIONS AND BUDGETS Counsel HELMUT F. WENDEL, Associate Adviser ROBERT E. MANNION, Assistant General JAMES R. WETZEL, Associate Adviser WILLIAM H. WALLACE, Director Counsel JAMES M. BRUNDY, Assistant Adviser ALBERT R. HAMILTON, Associate Director ALLEN L. RAIKEN, Assistant General Counsel JARED J. ENZLER, Assistant Adviser CLYDE H. FARNSWORTH, JR., Assistant Director GARY M. WELSH, Assistant General Counsel ROBERT M. FISHER, Assistant Adviser JOHN F. HOOVER, 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 1"HELEN B. JUNZ, Adviser HARRY A. GUINTER, Assistant Director OFFICE OF THE SECRETARY G SA E M OR U G E E L B P . IZ E H R E , NR A Y d , vi A se ss r o ciate 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 DIVISION OF PERSONNEL RALPH H. GELDER, Associate Director 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. > <-J1 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 Robert H. Boykin El Paso 79999 J. Luther Davis Fredric W. Reed Houston 77001 Thomas J. Barlow J. Z. Rowe 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. 125 pp. $1.00 each; 10 or more pp. $4.00 each; 10 or more to one address, $3.50 to one address, $.75 each. each. THE PERFORMANCE OF BANK HOLDING COMPANIES. ANNUAL REPORT 1967. 29 pp. $.25 each; 10 or more to one address, $.20 each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. year or $2.00 each in the United States, its posses- 102 pp. $1.00 each; 10 or more to one address, sions, Canada, and Mexico; 10 or more of same $.85 each. issue to one address, $18.00 per year or $1.75 SURVEY OF FINANCIAL CHARACTERISTICS OF CONeach. Elsewhere, $24.00 per year or $2.50 each. SUMERS. 1966. 166 pp. $1.00 each; 10 or more BANKING AND MONETARY STATISTICS, 1914-1941-. to one address, $.85 each. (Reprint of Part 1 only) 1976. 682 pp. $5.00. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 BANKING AND MONETARY STATISTICS, 1941-1970. pp. $1.00 each; 10 or more to one address, $.85 1976. 1,168 pp. $15.00. each. ANNUAL STATISTICAL DIGEST, 1970-75. 1976. 339 pp. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE $4.00 per copy for each paid subscription to Fed- STUDY OF THE U.S. GOVERNMENT SECURITIES eral Reserve Bulletin. All others, $5.00 each. MARKET. 1969. 48 pp. $.25 each; 10 or more to FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- one address, $.20 each. tion includes one issue of Historical Chart Book. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE $12.00 per year or $1.25 each in the United States, GOVERNMENT SECURITIES MARKET: STAFF STUDits possessions, Canada, and Mexico; 10 or more IES—PART 1. 1970. 86 pp. $.50 each; 10 or more of same issue to one address, $1.00 each. Else- to one address, $.40 each. PART 2. 1971. 153 pp. where, $15.00 per year or $1.50 each. and PART 3. 1973. 131 pp. Each volume $1.00; HISTORICAL CHART BOOK. Issued annually in Sept. 10 or more to one address, $.85 each. Subscription to Monthly Chart Book includes one OPEN MARKET POLICIES AND OPERATING PROCEissue. $1.25 each in the United States, its posses- DURES—STAFF STUDIES. 1971. 218 pp. $2.00 sions, Canada, and Mexico; 10 or more to one each; 10 or more to one address, $1.75 each. address, $1.00 each. Elsewhere, $1.50 each. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. year or $.40 each in the United States, its posses- 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; sions, Canada, and Mexico; 10 or more of same 10 or more to one address, $2.50 each. issue to one address, $13.50 per year or $.35 each. THE ECONOMETRICS OF PRICE DETERMINATION CON- Elsewhere, $20.00 per year or $.50 each. FERENCE, October 30-31, 1970, Washington, D.C. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY 1972. 397 pp. Cloth ed. $5.00 each; 10 or more SERIES OF CHARTS. Weekly. $15.00 per year or to one address, $4.50 each. Paper ed. $4.00 each; $.40 each in the United States, its possessions, 10 or more to one address, $3.60 each. Canada, and Mexico; 10 or more of same issue FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE to one address, $13.50 per year or $.35 each. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. Elsewhere, $20.00 per year or $.50 each. 487 pp. $4.00 each; 10 or more to one address, THE FEDERAL RESERVE ACT, as amended through De- $3.60 each. cember 1971, with an appendix containing provi- LENDING FUNCTIONS OF THE FEDERAL RESERVE sions of certain other statutes affecting the Federal BANKS. 1973. 271 pp. $3.50 each; 10 or more Reserve System. 252 pp. $1.25. to one address, $3.00 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE INTRODUCTION TO FLOW OF FUNDS. 1975. 64 pp. $.50 FEDERAL RESERVE SYSTEM each; 10 or more to one address, $.40 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- IMPROVING THE MONETARY AGGREGATES (Report of the ERNORS, as of June 30, 1976. $2.50. Advisory Committee on Monetary Statistics). TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 1976. 43 pp. $1.00 each; 10 or more to one each; 10 or more to one address, $.85 each. address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 81 STAFF ECONOMIC STUDIES BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— REVISED SERIES. 7/72. Studies and papers on economic and financial subjects YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. that are of general interest in the field of economic RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. research. BANKS. 10/72. REVISION OF CONSUMER CREDIT STATISTICS. 10/72. SUMMARIES ONLY PRINTED IN THE BULLETIN ONE-BANK HOLDING COMPANIES BEFORE THE 1970 (Limited supply of mimeographed copies of full text AMENDMENTS. 12/72. available upon request for single copies.) YIELDS ON RECENTLY OFFERED CORPORATE BONDS. 5/73. THE GROWTH OF MULTIBANK HOLDING COMPANIES: CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMER- 1956-73, by Gregory E. Boczar. Apr. 1976. 27 CIAL BANKS. 9/73. pp. RATES ON CONSUMER INSTALMENT LOANS. 9/73. EXTENDING MERGER ANALYSIS BEYOND THE SINGLE- NEW SERIES FOR LARGE MANUFACTURING CORPORA- MARKET FRAMEWORK, by Stephen A. Rhoades. TIONS. 10/73. May 1976. 25 pp. U.S. ENERGY SUPPLIES AND USES, Staff Economic SEASONAL ADJUSTMENT OF MX—CURRENTLY PUB- Study by Clayton Gehman. 12/73. LISHED AND ALTERNATIVE METHODS, by Edward INFLATION AND STAGNATION IN MAJOR FOREIGN IN- R. Fry. May 1976. 22 pp. DUSTRIAL COUNTRIES. 10/74. EFFECTS OF NOW ACCOUNTS ON COSTS AND EARNINGS THE STRUCTURE OF MARGIN CREDIT. 4/75. OF COMMERCIAL BANKS IN 1974-75, by John D. NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT Paulus. Sept. 1976. 49 pp. SELECTED LARGE COMMERCIAL BANKS. 4/75. RECENT TRENDS IN FEDERAL BUDGET POLICY. 7/75. RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL MARKETS. 10/75. PRINTED IN FULL IN THE BULLETIN MINNIE: A SMALL VERSION OF THE Staff Economic Studies shown in list below. MIT-PENN-SSRC ECONOMETRIC MODEL, Staff Economic Study by Douglas Battenberg, Jared J. Enzler, and Arthur M. Havenner. 11/75. REPRINTS AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff (Except for Staff Papers, Staff Economic Studies, and Economic Study by Robert J. Lawrence and some leading articles, most of the articles reprinted do Samuel H. Talley. 1/76. not exceed 12 pages.) INDUSTRIAL ELECTRIC POWER USE. 1/76. REVISION OF MONEY STOCK MEASURES. 2/76. 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. RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF REVISED MEASURES OF MANUFACTURING CAPACITY FOREIGN BANKS. 10/76. UTILIZATION. 10/71. NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- REVISION OF BANK CREDIT SERIES. 12/71. FACTURING AND MATERIALS. 11/76. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF SURVEY OF TIME AND SAVINGS DEPOSITS, July 1976. U.S. BANKS. 2/72. 12/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • December 1976 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE OR PERIOD APPROXIMATE TO WHICH DATA WEEKLY RELEASES RELEASE DAY REFER Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received or Acted on and All Other Actions Friday Week ended previous of the Board (H.2) Saturday Assets and Liabilities of all Commercial Banks in the United Wednesday Wednesday, 2 weeks States (H.8) earlier Changes in State Member Banks (K.3) Tuesday Week ended previous Saturday Commmercial and Industrial Loans Outstanding by Industry (H. 12)2 Wednesday Wednesday, 1 week earlier Deposits, Reserves, and Borrowings of Member Banks (H.7) Wednesday Week ended 3 Wednesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Thursday Week ended previous Reserve Banks (H.4.1) Wednesday Monday Week ended previous Foreign Exchange Rates (H.10) Friday Thursday Week ended Wednes- Money Stock Measures (H.6) day of previous week Open Market Money Rates and Bond Prices (H.15) Monday Week ended previous Saturday Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednesday of previous week Weekly Condition Report of Large Commercial Banks in New Thursday Previous Wednesday York and Chicago (H.4.3) Weekly Condition Report of Large Commercial Banks and Do- Wednesday Wednesday, 1 week mestic Subsidiaries (H.4.2)3 earlier Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week SEMIMONTHLY RELEASE Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last reof month lease MONTHLY RELEASES Assets and Liabilities of all Member Banks, by Districts (G.7.1) 14th of month Last Wednesday of previous month Automobile Instalment Credit Developments (G.26) 6th working 2nd month previous day of month 1 Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2On second Wednesday of month, contains monthly data release. 3Contains revised H.4.3 data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 83 MONTHLY RELEASES (cont.) DATE OR PERIOD APPROXIMATE TO WHICH DATA RELEASE DAY REFER Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Capacity Utilization: Manufacturing and Materials (G.3-formerly E.5) 17th of month Previous month Changes in Status of Banks and Branches (G.4.5) 25th of month Previous month Consumer Instalment Credit (G.19) 3rd working 2nd month previous day of month Federal Reserve System Memorandum on Exchange Charges (K.14) 5 th of month Period since last release Finance Companies (G.20) 5 th working 2nd month previous day of month Foreign Exchange Rates (G.5) 1st of month Previous month Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.3) 15 th of month Previous month Interest Rates Charged on Selected Types of Bank Loans (G.10) 15 th of month 2nd month previous Loan Commitments at Selected Large Commercial Banks (G.21) 20th of month 2nd month previous Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposit (G.9) previous month Monthly Report of Condition for Foreign Banking Institutions in the 15th of month 2nd month previous U.S. (G.ll) 6th of month Previous month Open Market Money Rates and Bond Prices (G.13) Summary of Equity Security Transactions (G.16) Last week of Release date month QUARTERLY RELEASES Bank Rates on Short Term Business Loans (E.2) 18th of 1st 15 days of Febru- March, June, ary, May, August, September, November December Finance Rates and Other Terms on Selected Types of Consumer 25th of Jan- 2nd month previous Instalment Credit Extended by Major Finance Com- uary, April, panies (E.10) July, October Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 15th of Febru- Previous quarter ary, May, Volume and Composition of Individuals' Saving August, (Flow of funds series) (E.8) November Geographical Distribution of Assets and Liabilities of Major 15th of Previous quarter Foreign Branches of U.S. Banks (E.ll) March, June, September, December Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo- 10th of March, 2nd quarter previous rations (E.6) July, September, December SEMIANNUAL RELEASES Assets and Liabilities of Commercial Banks, by Class of Bank May and No- End of previous De- (E.3.4) vember cember and June Check Collection Services—Federal Reserve System (E.9) February Previous six and July months Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • December 1976 DATE OR PERIOD APPROXIMATE TO WHICH DATA SEMIANNUAL RELEASES (cont.) RELEASE DAY REFER List of OTC Margin Stocks (E.7) June 30, De- Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No- End of previous De- Savings Banks—Reports of Call (Joint Release of the Federal vember cember and June Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) ANNUAL RELEASES Aggregate Summaries of Annual Surveys of Security Credit February End of Previous June Extension (C.2) Bank Debits and Demand Deposits (C.5) March 25 Previous Year Member Bank Income (C.4) End of May Previous year State Member Banks of Federal Reserve System and Nonmember 1st quarter of End of previous year Banks that Maintain Clearing Accounts with Federal Reserve year Banks (G.4) (Supplements issued monthly) 15th of month Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

85 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

86 Federal Reserve Bulletin • December 1976 References are to pages A-2 through A-75 although the prefix "A" is omitted in this index INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 45 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property mortgaged, 42^4 Insured commercial banks, 14, 16, 17, 24 Reserve position, basic, member banks, 5 Interbank deposits, 14, 20 Reserve requirements, member banks, 7 Interest rates: Reserves: Bond and stock yields, 28 Central banks and govts., 60 Business loans of banks, 26 Commercial banks, 17, 20, 22 Federal Reserve Banks, 6 Federal Reserve Banks, 10 Foreign countries, 74, 75 Member banks, 3, 4, 13, 17 Money market rates, 27 U.S. reserve assets, 59 Mortgage yields, 43, 45 Residential mortgage loans, 43, 44, 45 Prime rate, commercial banks, 26 Retail credit, 46, 47 Time and savings deposits, maximum rates, 8 Retail sales, 50 International capital transactions of U.S., 61-74 International institutions, 60-64, 66, 67-69, 73 SALES, revenue, profits, and dividends of large manu- Inventories, 54 facturing corporations, 40 Investment companies, issues and assets, 39 Saving: Investments (See also specific types of investments): Flow of funds series, 56, 57 Banks, by classes, 14, 16, 19, 30 National income series, 54, 55 Commercial banks, 13 Savings and loan assns., 31, 35, 42, 44 Federal Reserve Banks, 10, 11 Savings deposits (See Time deposits) Life insurance companies, 31 Savings institutions, principal assets, 30, 31 Savings and loan assns., 31 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 37 LABOR force, 52 International transactions, 68, 69 Life insurance companies (See Insurance companies) New issues, 37, 38, 39 Loans (See also specific types of loans): Yields and prices, 28, 29 Banks, by classes, 14, 16, 18, 30 Special Drawing Rights, 2, 10, 58, 59 Commercial banks, 13, 14, 16, 18, 23, 25, 26 State and local govts.: Federal Reserve Banks, 2, 4, 6, 10, 11 Deposits, 17, 20 Insurance companies, 31, 44 Holdings of U.S. Govt, securities, 34, 35 Insured or guaranteed by U.S., 42, 43, 44, 45 New security issues, 37, 38 Savings and loan assns., 31 Ownership of securities of, 16, 19, 30 Yields and prices of securities, 28, 29 MANUFACTURERS: State member banks, 15, 24 Capacity utilization, 50 Stock market credit, 29, 30 Production index, 49, 50 Stocks (See also Securities): Margin requirements, 8 New issues, 38, 39 Member banks: Yields and prices, 28, 29 Assets and liabilities, by classes, 14, 16, 17 TAX receipts, Federal, 33 Borrowings at Federal Reserve Banks, 4, 10 Time deposits, 8, 13, 14, 17, 21, 22 Number, by classes, 14 Treasury currency, Treasury cash, 2, 3 Reserve position, basic, 5 Treasury deposits, 3, 10, 32 Reserve requirements, 7 Treasury operating balance, 32 Reserves and related items, 2, 4, 13 Mining, production index, 49 UNEMPLOYMENT, 52 Mobile home shipments, 51 U.S. balance of payments, 58 Money market rates (See Interest rates) U.S. Govt, balances: Money stock and related data, 12 Commercial bank holdings, 17, 20 Mortgages (See Real estate loans and Residential Member bank holdings, 13 mortgage loans) Treasury deposits at Reserve Banks, 3, 10, 32 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 20, 30, 34, 42, 44 Bank holdings, 14, 16, 19, 30, 34, 35 Dealer transactions, positions, and financing, 36 NATIONAL banks, 14, 24 Federal Reserve Bank holdings, 2, 10, 11, 34, 35 National defense expenditures, 33 Foreign and international holdings, 10, 66, 68, 72 National income, 54, 55 International transactions, 66, 68 Nonmember banks, 15, 16, 17, 24 New issues, gross proceeds, 38 Open market transactions, 9 OPEN market transactions, 9 Outstanding, by type of security, 34, 35 Ownership, 34, 35 PAYROLLS, manufacturing index, 50 Yields and prices, 28, 29 Personal income, 55 Utilities, production index, 49 Prices: Consumer and wholesale commodity, 50, 53 VETERANS Administration, 43, 44 Security, 29 Prime rate, commercial banks, 26 WEEKLY reporting banks, 18-22 Production, 48, 49, 50 Profits, corporate, 40, 41 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 87 Index to Volume 62 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A " pages) Other ("A" pages) Text Text etc. Index to etc. Index to Issue total Total tables Issue total Total tables January 1- 70 1-84 82-83 July 557-650 1-84 82-83 February ... 71-188 1-84 82-83 August 651-732 1-84 82-83 March 189-282 1-84 82-83 September . 733-814 1-84 82-83 April 283^100 1-84 82-83 October 815-884 1-84 82-83 May 401-462 1-84 82-83 November.. 885-978 1-84 82-83 June 463-556 1-88 85-86 December.. 979_1064 1-100 85-86 (References to ' 'A" pages in this index are to such pages in the December issue.) Pages Pages ABBOUD, A. Robert, elected Class A director, Articles—Continued Chicago 176 Payment mechanisms, summary of Federal Re- Abrahamson, Richard D., temporary appointment serve operations in 481 as Assistant Secretary of Board 649 Prices in recession and recovery 557 Adams, Fred, Jr., appointed Class C director, At- Thrift institutions, nonbank, in 1975 and lanta 174 1976 979 Advisory Committee on Monetary Statistics, report Time and savings deposits, surveys 22,313, on improving monetary aggregates 422 567, 825, 986 Altmann, Murray, appointed Assistant to Board, Treasury and Federal Reserve foreign exchange Office of Staff Director for Monetary Policy .. 459 operations, reports 29,208, Andersen, John W., appointed director, Nashville 490, 743, 1004 Branch 175 Assets and liabilities, foreign branches of member Annual Report, 1975, Board of Governors 533 banks, new quarterly report and data from year- Articles: end report 460, 812 Bank holding company financial developments in Automobile credit, statistical release 186 1975 302 Axilrod, Stephen H., appointed Staff Director for Bank lending practices, changes in 1975 307 Monetary Policy 186 Capacity utilization rates for manufacturing and industrial materials, new estimates 892 BANK holding companies (For orders issued to Corporate financing patterns, recent shifts 733 individual companies under the Bank Holding Economy in 1975 71 Company Act, see Bank Holding Company Electric power, new monthly data on industrial Act): use 11 Assessment, staff economic study 15 Federal Reserve System: Financial developments in 1975, article 302 Equal employment opportunity program, Financial Institutions and the Nation's Economy progress report for period 1971-75 665 study applicable to, statement 113 Independence of, address 493 Growth of multibank holding companies, Finance companies, 1975, survey 197 1956-73, staff economic study 300 Financial developments, quarterly reports to Merger analysis, extending beyond single-market Congress (See Statements to Congress) framework, staff economic study 409 Foreign banks, recent growth in activities of U.S. Regulation Y (See Regulations and rules) offices 815 Bank Holding Company Act: Industrial production—1976 revision 470 Orders issued under: International transactions of United States, Abilene Company 276 changing patterns 283 Adair Insurance Agency, Inc 547 Labor market developments 1 Agri-Bank Corporation 852 Liquidity of major sectors of U.S. economy, Alabama B ancorporation 165 recent changes 463 Allen Bancshares, Inc 48 Member bank deposits and aggregate reserves, Ameribanc, Inc 384 revision of data 294 American Affiliates, Inc 616 Member bank income in 1975 658 American Bancorporation 150 Monetary aggregates, report of Advisory Com- American Security Corporation 255 mittee on Monetary Statistics 422 Ancorp Bancshares, Inc 166, 1040 Monetary control, strategy 411 BanCal Tri-State Corporation 805, 806 Money stock measures, revision 82 Banco de Santander, S.A., Santander, Spain 690 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • December 1976 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued under—Cont. Orders issued under—Cont. BancOhio Corporation 366 First Commercial Banks, Inc 1042 BancOklahoma Corp 644 First Freeport Corporation, Freeport, 111. ... 1059 Bank Land Company 954, 1041 First Freeport Corporation, Freeport, Tex. . 618 Bank Shares Incorporated 626 First International Bancshares, Inc 1043 Bankers Trust New York Corporation 794 First Lincolnwood Corp 153 Banks of Iowa, Inc 392 First Marine Banks, Inc 370 Bankshares of Hawley, Inc 610 First Michigan Bank Corporation 969 Barnett Banks of Florida, Inc 367 First Midwest Bancorp., Inc 969 Benson Bancshares, Inc 611 First Missouri Banks, Inc 727 Boatmen's Bancshares, Inc 452, 1059 First National Bancorporation, Inc 856 Bren-Mar Properties, Inc 955 First National Boston Corporation 372, 456 Broward Bancshares, Inc 386 First National Charter Corporation 393 BUY A Corp 546 First National Corporation 695 Cameron Bancshares, Inc 393 First National Financial Corporation 969 Capital First Corporation 252 First National Holding Corp 62 CCNB Bancshares Corporation 1058 First New Mexico Bankshare Corporation .. 373 Cedar Investment Company 617 First Penn Corporation 50 Central Banking System, Inc 166 First Security Corporation ..701, 807, 868, 1053 Central Missouri Bancshares, Inc 277 First Tennessee National Corporation 263 Central Mortgage Bancshares, Inc 542 First Tribune Insurance Agency, Inc 393 Central Wisconsin Bankshares, Inc 538 First Wewoka Bancorporation, Inc 853 Century Financial Corporation of First Yukon Bankshares, Inc 807 Michigan 968 Fishback Insurance Agency, Inc 876 Charter Clarendon Bancorporation, Inc 949 Florida Bankshares, Inc 621 Chemical New York Corporation 3.88 Florida National Banks of Florida, Inc 696 Chester Insurance Agency, Inc 277 Fort Sam Houston Bankshares, C.I.T. Financial Corporation 864 Incorporated 798 Citi Bancorp 791 FrostBank Corporation 963 Citicorp 163, 390, 866 Gallatin Bancshares, Inc 51 Citizens and Southern Holding Company, Glencoe Capital Corporation 165 Order for hearing 274 Great Lakes Financial Corporation 264, 276 Citizens Bancorp 49 Hampton Bankshares Corporation 868 Citizens Bancorporation 393 Harlan National Company 615, 871 Citizens Bancshares 62 Harvard State Company 807 Clayton Bancshares Corporation 868 Hastings State Company 726 CleveTrust Corporation 261, 540 Hawkeye Bancorporation 1044 C N Banc Holding Corporation 691 Horizon Bancorp 965 Colonial Bancorp, Inc 956 Humboldt Bancshares Inc 166 Columbia Holding Corp 692 IB&T Corp 859 Commercial National Corporation 546 Indian Head Banks Inc 699 Community Bancshares, Inc 803 International Bancorporation 793 Crawford State Company 547 Kaskaskia Bancshares, Inc 456 Crestwood Bank Shares Corporation 868 King Ranch, Inc 876 Crestwood Banking Company, Ltd 1058 Labanco, Inc 392 CU Bank Shares, Inc 364 Landmark Banking Corporation 375 CUbanc Corp 792 Lawrence Bancshares, Inc 876 Dakota Bancorporation 544 Leeds Holding Company 643 Dale Sprague Enterprises, Inc 644 Lisco State Company 859, 968 Delta Bancorporation, Inc 1058 LITCO Corporation of New York 960 Deseret Bancorporation 969 Lyons Bankshares, Inc 1059 D. H. Baldwin Company 629 M & S BanCorp 860 Dubois Bankshares, Inc 167 Mark Twain Bancshares, Inc 377 El Dorado Bancshares, Inc 611 Marshall & Ilsley Corporation 546 Ellis Banking Corporation 165, 392 Mellon National Corporation 58, 702 Empire Bancorp, Inc 62 Mercantile Texas Corporation 1046 Erie Bankshares, Inc 1052 Merrill Bankshares Company 546 Exchange Bancorporation, Inc 968 Metro Insurance Agency, Inc 265 Exchange Bancshares, Inc 447 Michigan National Corporation 53, 795 FAM Financial Incorporated 876 Milco Bancorporation, Inc 969 Federated Capital Corporation 262, 272 Millikin Bancshares, Inc., and Estate of Fiduciary Investment Company of New James Millikin, Deceased 1059 Jersey 612 Milwaukee Western Corporation 800 First Arkansas Bankstock Corporation, Order Mountain Financial Services, Inc 254 for hearing 642 National Central Financial Corpora- First Banc Group 538 tion 1049, 1059 First Bancorp, Inc 276 National City Corporation 622 First Bancshares of Florida, Inc 52, 958 National Detroit Corporation 154, 392, 861 First Bank System, Inc 854 NCNB Corporation 1054 First City Bancorporation of Texas, Nebraska Banco, Inc 638 Inc 876, 958 Nevada Brick and Tile Co 166 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 62 A89 Pages Pages Bank Holding Company Act—Continued Bank lending practices, 1975, article on changes 307 Orders issued under—Cont. Bank Merger Act: Northeast United Bancorp, Inc. of Texas .. 155 Orders issued under: Northstream Investments, Inc 166 Bankers Trust New York Corporation, N.Y., Northwest Ohio Bancshares, Inc 166 N.Y., and Bankers Trust Company of Offerle Investment Co 456 Western New York, Jamestown, N.Y. .. 876 Old Kent Financial Corporation 266 Baybank Newton-Waltham Trust Company, Old National Bancorporation (formerly Wash- Waltham, Mass 644 ington Bancshares, Inc.) 801 Catoctin First Company, Thurmont, Md. .. 63 Old Stone Corporation 1055 Central Trust Company Rochester, N.Y., Orwig and Company, Inc 57, 160 Rochester, N.Y 457 P.B.C., Inc 365 Commerce Bancshares, Inc., Kansas City, Peninsula Financial, Inc 968 Mo 368 Peoples Bankshares, Inc 166 First Guaranty Bank, Hurt, Va 727 Peoples Credit Co 268, 456, 1050, 1059 Manufacturers Hanover Trust Company, New Philadelphia National Corporation 869, 964 York, N.Y 548 Popular Bancshares Corporation 54 Massachusetts Bay Bancorp, Inc., Lawrence, Republic of Texas Corporation ... 59, 269, 378, Mass 277 545, 630, 797 North Lawndale Economic Development Cor- Ribanco, Inc 393 poration, Chicago, 111 639 Roger Billings, Incorporated 863 Old Kent Bank of Kentwood, Kentwood, Rossiter and Matney Insurance Agency, Inc. 644 Mich 268 Roxton Bancshares, Inc 392 Seattle Trust and Savings Bank, Seattle, Royal Trust Company, Montreal, Quebec, Wash 808 Canada 453,623 United Counties Trust Company, Elizabeth, Royal Trust Company, Montreal, Quebec, N.J 277 Canada; Royal Trust Bank Corp., Miami, United Jersey Bank/Central, Elizabeth, N.J. 970 Fla 962 Bank mergers and acquisitions, statement 227 Security Bancorp, Inc 632 Bank supervision and regulation: Security Pacific Corporation 634, 644 Federal Reserve System, statements on examina- Shaw Investment Company 968 tion, supervision, and regulatory functions, Sierra Petroleum Co., Inc., and United In- and on performance 125, 130, 132 vestments Corp 615 Financial Institutions and the Nation's Economy Sioux National Company 968 study, statements 33, 90 South Dakota Bancshares, Inc 448 Foreign bank operations in United States: Southeast Banking Corporation 381 Article 815 Southern Bancorporation, Inc 63, 273, 1056 Statements on proposed legislation — 103, 769 Southern Bankshares, Inc 968 Banking and Monetary Statistics: Southland Bancorporation 158 1914-1941 813 Southwest Florida Banks, Inc 541 1941-1970 813 Spalding City Corporation 968 Barna, Peter E., appointed Assistant Director, Di- Starbuck Bancshares, Inc 450 vision of Banking Supervision and Regulation 459 Stark Bankshares, Inc 1059 Beck, Darwin, article 82 State Street Boston Financial Corporation .. 159 Black, Uyless D., appointed Assistant Director, Stepp, Inc 950 Division of Data Processing 649 Suburban Bancorporation 63 Board of Governors (See also Federal Reserve Sumner County Bancshares, Inc 547 System): Tennessee National Bancshares, Inc 807 Condition reports and income reports, changes Texarkana National Bancshares, Inc 968 and large bank supplements 67, 279 Texas American Bancshares, Inc 382 Electronic payments (See Electronic fund Texas Commerce Bancshares, Inc 56, 383 transfers) Tioga Bank Holding Company 643 Foreign joint ventures by U.S. banks, policy Toronto-Dominion Bank, Toronto, Ontario, statement and interpretation of Regulations K, Canada 60 M, and Y 185, 249 Town Financial Corporation 454 Interpretations (See Interpretations) Trans Texas Bancorporation, Inc 271 Litigation, pending cases 64, 167, 278, 394, Union Holding Company 951 457, 548, 644, 727, 808, 877, 970, 1059 Union Trust Bancorp 802 Members: United Bancorp 967 Gardner, Stephen S., appointment 185 United Bancshares of Nebraska, Inc 694 Holland, Robert C., resignation 397 United Missouri Bancshares, Inc 277, 393 Lilly, David M., appointment 550 Utica Agency, Inc 953 List 31,88,497 Valley of Virginia Bankshares, Inc 547 Partee, J. Charles, appointment 65 Valparaiso Enterprises, Inc 63 Members and officers A76 Vermillion Bankshares, Inc 456 Office of Saver and Consumer Affairs, redes- Walter E. Heller International ignated Division of Consumer Affairs (Oct. 1, Corporation 636 1976) 882 West Point First National Co 277 Publications (See Publications and releases in Western Michigan Corporation 624, 1058 1976) Woodbine Agency, Inc 547 Records maintained by, notice pursuant to Pri- Woodfield Investment Corporation 276 vacy Act of 1974 521,791 Worcester Bancorp, Inc 725 Regulations and rules (See Regulations and rules) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • December 1976 Pages Pages Board of Governors—Continued Check clearing and collection (See Electronic fund Staff changes: transfers) Abrahamson, Richard D 649 Clay, George H., retirement as President, Federal Altmann, Murray 459 Reserve Bank of Kansas City 280 Axilrod, Stephen H 186 Cleary, Russell G., elected Class B director, Min- Barna, Peter E 459 neapolis 178 Black, Uyless D 649 Coldwell, Philip E.: Broida, Arthur L 186 Federal Reserve System emergency preparedness Brundy, James M 813 plans, statement 574 Bryant, Ralph 813 Financial Institutions and the Nation's Economy Denkler, John M 186 study, statement 113 Engstrom, Keith 813 Cole, J. Owen, elected Class A director, Garbarini, Joseph P 186, 649 Richmond 172 Garwood, Griffith L 977 Commercial banks (See also Member banks): Gelder, Ralph H 459 Boycott practices, foreign, statement on U.S. Hart, Janet 813 bank participation and limitations of existing Hoover, John F 1061 laws 507 Kalchbrenner, John H 977 Foreign bank operations in United States: Keir, Peter M 553 Article 815 Lawrence, Robert J 186 Statements on proposed legislation 103, 769 Mannion, Robert E 68 Insured, changes in condition reports and income Mead, Thomas E 553 reports and large bank supplements 67, 279 Peret, J. Cortland G 977 Loans and investments, revisions in series 554 Plotkin, Robert S 883 Negotiable order of withdrawal (NOW) accounts, Raiken, Allen L 68 amendment of Regulation Q and staff eco- Ryan, John E 459 nomic study 248, 280, 741 Shannon, David L 977 Time and savings deposits, surveys ...22, 313,567, Smith, Robert E. Ill 186 825, 986 Solomon, Frederic 813 Condition reports and income reports, changes and Solomon, Robert 397 large bank supplements 67, 279 Stockwell, Eleanor J 977 Consumer Advisory Council (replaces Truth in Tuttle, Baldwin B 68 Lending Advisory Committee) 974, 1038 Welsh, Gary M 68 Consumer credit (See Credit) Wiles, William W 459 Cooney, Lloyd E., appointed director, Seattle Statements to Congress (See Statements to Con- Branch 184 gress) Corporate financing patterns, article on recent Boczar, Gregory F., staff economic study 300 shifts 733 Bolinger, John C., appointed director, Nashville Cortright, George C., appointed director, New Or- Branch 175 leans Branch 176 Boltz, Paul, article 307 Credit (See also Loans): Boycott practices, foreign, statement on U.S. bank Automobile, statistical release 186 participation and limitations of existing laws . 507 Consumer: Branch banks: Advisory Council 974, 1038 Federal Reserve: Data, revision 67 Directors (See Directors) Equal Credit Opportunity (See Equal Credit Vice Presidents in charge A79 Opportunity) Foreign branches of member banks: Fair Housing Act, statement 1016 Assets and liabilities, new quarterly report and Federal Trade Commission Act, amendments data from year-end report 460, 812 regarding unfair or deceptive acts or prac- Reserve requirements on Euro-dollar borrow- tices by banks; adoption of Regulation ings, amendment of Regulation M ... 248 AA 850, 879 Broida, Arthur L., appointed Deputy Staff Director Home Mortgage Disclosure Act, for Monetary Policy 186 statement 1016 Brown, Werner C., appointed Class C director, Laws, statement on enforcement 674 Philadelphia 171 Truth in Lending (See Truth in Lending) Brundy, James M., appointed Assistant Adviser, Federal Reserve Banks, extensions by, changes Division of Research and Statistics 813 in rates and amendment of Regulation Bryant, Ralph, resignation as Director, Division of A 65, 185, 649, 787, 1061 International Finance 813 Stocks (See Stock market credit) Burns, Arthur F.: Cyrnak, Anthony W., articles 302, 658 Economy, statements on condition, and course of monetary policy 110, 119,231, DAVIES, Reginald M., appointed director, Helena 427, 575, 668, 765, 906 Branch 179 Federal budget for 1977, statement 333 Debs, Richard A., statement of First Vice President Federal Reserve Reform Act of 1976, statement 353 and Chief Administrative Officer, Federal Re- Federal Reserve System, address on inde- serve Bank of New York 227 pendence of 493 Defense production loans 249 Financial Institutions and the Nation's Economy Denkler, John M., appointed Staff Director for study, statement 90 Management 186 Financial Reform Act of 1976, statement 323 Deposits: Interest rates (See Interest on deposits) CAPACITY utilization rates for manufacturing and Member bank, and aggregate reserves, revision industrial materials, new estimates 553, 892 of data 280,294 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 62 A91 Pages Pages Deposits—Continued FEDERAL Advisory Council A78 Negotiable order of withdrawal (NOW) accounts, Federal budget, statements 137, 333, 342 amendment of Regulation Q and staff eco- Federal Open Market Committee: nomic study 248, 280, 741 Foreign exchange operations, reports 29,208, Reserve requirements (See Reserve require- 490, 743, 1004 ments) Members and officers A78 Time and savings deposits at commercial banks, Minutes, 1970, availability 66 surveys 22, 313, 567, 825, 986 Monetary control, article on strategy 411 Directors: Policy actions: Federal Reserve Banks: Publication speed-up 536, 552 Chairmen and Federal Reserve Agents 169, A79 Record 38, 141, 239, 357, 439, 513,581, Deputy Chairman 169, A79 676, 774, 837, 916, 1019 List 169 Rules, amendment 536 Federal Reserve branch banks: Swap arrangements 552 Chairmen and Deputy Chairmen 169, A79 Federal Reserve Act: List 169 Section 9, Order approving application of First Discount rates at Federal Reserve Banks (See In- Progressive Bank, Brewton, Ala., to become terest rates) member of Federal Reserve System 873 Dividends: Section 25, Order under 164 Federal Reserve Banks, 1975 65 Federal Reserve and Treasury foreign exchange Member banks, 1975, article 658 operations, reports 29, 208, 490, 743, 1004 Doehler, Catherine B., appointed director, Balti- Federal Reserve Banks: more Branch 173 Branches (See Branch banks) Dow, Herbert H., appointed director, Detroit Chairmen and Deputy Chairmen A79 Branch 176 Credit extended by (See Credit) Delegation by Board of certain authority to, amendment of rules 46 EARNINGS and expenses: Directors (See Directors) Federal Reserve Banks, 1975 65 Discount rates (See Interest rates) Member banks, article 658 Earnings and expenses, 1975 65 Eaves, Hettie D., appointed director, New Orleans Electronic payments (See Electronic fund Branch 176 transfers) Eckman, John W., appointed Class C director and Presidents and Vice Presidents: Deputy Chairman, Philadelphia 171 Appointment of Presidents 280 Economy: List A79 Condition, and course of monetary policy, state- Retirement of Presidents 280 ments 110, 119, 231, 427,509, Federal Reserve district, transfer of territory 1061 575, 668, 765, 906 Federal Reserve Reform Act of 1976, statement 353 Liquidity of major sectors, article on recent Federal Reserve System (See also Board of Goverchanges 463 nors): Monetary policy and its effects on economy, Emergency preparedness plans, statement 574 statement 509 Equal employment opportunity program, 1975, article 71 progress report for period 1971-75 665 Electric power, article on new monthly data on Independence of, address 493 industrial use 11 Map of districts and their branch territories ... A99 Electronic fund transfers: Membership of State banks: Federal recurring payments, interim guidelines Admissions 68, 186, 280, 398, 460,555, for delivery by Reserve Banks to financial 649, 730, 813, 883, 977 institutions 47, 66 Application, Order approving 873 Federal Reserve: Payment mechanisms, summary of operations 481 Clearing and settlement facilities, interim pol- Regulatory reform proposals, statements 132,232, icy on access 147 353, 504 Operations in payment mechanisms, sum- Swap arrangements 552 mary 148 Finance companies, 1975, survey 197 Government role in Electronic Fund Transfer Financial developments, quarterly reports to Con- Systems, statement at public hearing 912 gress 189, 401, 651, 885 Employment, statements on Full Employment and Financial Institutions and the Nation's Economy Balanced Growth Act of 1976 347, 499 study, statements 33, 90, 96, 100, 113 Engstrom, Keith, resignation as Director, Division Financial Reform Act of 1976, statement 323 of Personnel 813 Financing patterns, corporate, article on recent Equal Credit Opportunity: shifts 733 Act, statements on rule-making procedures Fonda, Avery H., appointed director, Buffalo under, proposal for new private enforcement Branch 170 remedy for violations of Truth in Lending Act, Foreign applications, amendment of Rules Regardand recent Federal Reserve activity concern- ing Delegation of Authority 46 ing 320, 1016 Foreign banks: Regulation B (See Regulations and rules) Activities of U.S. offices, article on growth .. 815 Equal employment opportunity program of Federal Operations in United States, statements on pro- Reserve System, progress report for period posed legislation 103, 769 1971-75 665 Foreign branches of member banks (See Branch Euro-dollar borrowings, reserves against, amend- banks) ment of Regulation M 248 Foreign currency arrangements 552 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • December 1976 Pages Pages Foreign exchange operations of Treasury and Fed- Industrial production—Continued eral Reserve, reports 29, 208, 490, 743, 1004 Electric power, industrial, article on new Foreign joint ventures, Board policy statement and monthly data 11 interpretation, Regulations K, M, and Y 185, 249 Manufacturing and industrial materials, new es- Forest, Lawrence R., article 892 timates of capacity utilization rates for 553, 892 Francis, Darryl R., retirement as President, Federal 1976 revision, article and data availabil- Reserve Bank of St. Louis 280 ity 470, 812, 882 Friedman, Martin B., appointed director, Cincin- Interest on deposits (See also Interest rates): nati Branch 171 Individual retirement accounts (See Individual Fry, Edward R., articles and staff economic retirement accounts) study 82, 294, 410 Keogh accounts (See Keogh plan retirement accounts) Negotiable order of withdrawal (NOW) accounts, GARBARINI, Joseph P., temporary appointment amendment of Regulation Q and staff ecoas Assistant Secretary of Board and subsequent nomic study 248, 280, 741 return to Federal Reserve Bank of St. Penalty for early withdrawal, Order granting Louis 186, 649 temporary suspension of Regulation Q 605, 648 Gardner, Stephen S.: Subordinated debt and debenture issues consid- Appointed Member, Board of Governors 185 ered part of banks' capital structures, amend- Electronic Fund Transfer Systems, statement at ment and interpretation of Regulation Q and public hearing on role of Government 912 criteria to be used in evaluating requests for Foreign bank operations in United States, stateapproval 601,604,646 ment on proposed legislation 769 Transfers of funds from savings accounts to cover Regulatory reform proposals, statement 504 check overdrafts and change with respect to State and local "doing business" taxes, statepooled funds, proposed amendment of Regument on application to out-of-State financial lation Q 459 depositories 433 Interest rates (See also Interest on deposits): Garwood, Griffith L., appointed Deputy Secretary, Federal Reserve Banks, changes and amendment Office of Secretary 977 of Regulation A 65, 185, 649, 787, 1061 Gehman, Clayton, articles 11, 470 Interlocking relationship between member bank and Gelder, Ralph H., appointed Associate Director, minority bank, proposed amendment of Regula- Division of Banking Supervision and Regulation L 882 tion 459 International transactions of United States, article 283 Gookin, R. Burt, appointed director, Pittsburgh Interpretations: Branch 172 Bank holding companies: Guffey, Roger, appointed President, Federal Re- Automobile leasing as permissible serve Bank of Kansas City 280 activity 880, 930-43 Escrow arrangements involving bank stock re- HANSON, Ronald S., elected Class A director, San sulting in violation of Bank Holding Com- Francisco 182 pany Act 251 Hart, Janet, appointed Director, Office of Saver and Foreign joint ventures 249 Consumer Affairs 813 Travel agency operation as permissible Hawke, John D., Jr., statement on U.S. bank activity 148 participation in foreign boycott practices 507 Underwriting and dealing in U.S. Govt., State Holcomb, John H., appointed director, San Antonio and local, and other authorized obligations Branch 182 as permissible activity, deferred action on Holland, Robert C.: amendment of Regulation Y 928, 973 Federal banking law violations, statement on Underwriting of credit life insurance and credit proposals for civil penalties, restrictions, and accident and health insurance as permissible remedial actions — 339 activity 537 Federal Reserve System, statement on perform- Equal Credit Opportunity: ance in supervising banking institutions — 132 Change, notice pursuant to State law 364, 398 Financial Institutions and the Nation's Economy Student loan programs, signature requirestudy, statements 33, 96 ment 46 Resignation as Member, Board of Governors 397 Foreign banking and financing, foreign joint Holmes, Alan R., reports 29, 208, 411,490, ventures 249 743, 1004 Reserves of member banks, cash items in process Hoover, John F., appointed Assistant Director, of collection 605 Division of Federal Reserve Bank Examinations Stock market credit, use of escrow receipts for and Budgets 1061 option transactions effected in special cash Housing (See Real estate) account 790 Hurley, Evelyn M., article 197 Truth in Lending 186, 251, 730 Investment Policy Act of 1976 1012 Investments, revision in series on commercial bank INCOME and expenses (See Earnings and ex- loans and investments 554 penses) Individual retirement accounts (IRA's), amendment of Regulation Q to facilitate offering, notice JACKSON, Philip C., Jr.: concerning rule-making proceeding on ceiling Consumer credit laws, statement on enforcerate, and extension of conditions for IRA's to ment 674 Keogh plans 45, 688, 729, 973, 1035 Consumer field, recent Federal Reserve activity Industrial production: concerning, and issues related to Fair Hous- Board releases 69, 187, 281, 399, 461, 556, ing, Equal Credit Opportunity, and Home 650, 731, 814, 884, 978, 1063 Mortgage Disclosure Acts 1016 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 62 A93 Pages Pages Jackson, Philip C., Jr.—Continued Legislation—Continued Equal Credit Opportunity Act, statements on Real festate Settlement Procedures Act 147, 185 rule-making procedures under, proposal for Regulatory reform proposals, statements . 130,323, new private enforcement remedy for violations 353, 504 of Truth in Lending Act, and recent Federal State Taxation of Depositories Act 247 Reserve activity concerning 320, 1016 Truth in Lending Act, amendments and state- Financial Institutions and the Nation's Economy ments 147, 185, 247, 320, 833 study, statement 100 Lewis, Virginia L., articles 22, 307, 567, 825 Nondiscriminatory lending practices in financing Lilly, David M., appointed Member, Board of of housing by State member banks, statement 237 Governors 550 Truth in Lending Act, statement on Lipford, Stallings, appointed director, Memphis enforcement 833 Branch 178 Liquidity of major sectors of U.S. economy, article on recent changes 463 KALCHBRENNER, John H., appointed Associate Litigation, pending cases involving Board of Gov- Director, Division of Research and Statistics . 977 ernors 64, 167, 278, 394, 457, 548,644, Keating, Stephen F., appointed Class C director and 727, 808, 877, 970, 1059 Deputy Chairman, Minneapolis 178 Loans (See also Credit): Keir, Peter M., appointed Assistant to Board, Of- Bank lending practices, 1975, article on fice of Staff Director for Monetary Policy 553 changes 307 Kemper, James M., Jr., elected Class A director, Commercial bank loans and investments, revi- Kansas City 179 sions in series 554 Keogh plan retirement accounts, amendment of Defense production 249 Regulation Q 973, 1035 Real estate (See Real estate) Kerr, Robert A., appointed director, Cincinnati Branch 171 MANNION, Robert E., appointed Assistant Gen- Knight, Robert H., appointed Class C director and eral Counsel 68 Deputy Chairman, New York 170 Manufacturing and industrial materials, new estimates of capacity utilization rates 553, 892 Margin credit, new release on security credit ex- LABOR market developments, article 1 tensions 554 Lawrence, Robert J.: Margin requirements (Regulations G, T, and U): Appointed Deputy Staff Director for Manage- Federal Reserve Form U-l, revision and postment 186 ponements of effective date 606, 790, 949 Staff economic study 15 Options, uniform requirement for, amendment Leasing: and proposed amendment, Regulation T ... 849, Automobile, order scheduling oral presentation 880, 1061 under Regulation Y, ruling, amendment 149, Over-the-counter stock list 280, 554, 608, 648 880, 881, 930-43, 944 Registration, termination of registration, and re- Personal property, amendment of Regulation Z porting requirements, amendment of Regulain conformity with Consumer Leasing Act of tion G 687,729 1976 649,881,944 Marks, Charles A., appointed director, Buffalo Leavitt, Brenton C., statements on examination, Branch 170 supervision, and regulatory functions, and on Martin, Michael, article 302 performance of Federal Reserve System 125, 130 Maurer, J. A., appointed director, Oklahoma City Legislation (See also Statements to Congress): Branch 180 Depository Institutions Act of 1974 880, 928 Mead, Thomas E., appointed Assistant Director, Equal Credit Opportunity Act (See Equal Credit Division of Banking Supervision and Regula- Opportunity) tion 553 Fair Credit Billing Act, issuance of supplement Member banks (See also National banks): to Regulation Z pertaining to 1061 Branches (See Branch banks) Fair Housing Act, statement 1016 Credit, extensions by Federal Reserve Banks, Federal Reserve Reform Act of 1976 353 changes in rates and amendment of Regulation Federal Trade Commission Act, amendments re- A 65, 185, 649, 787, 1061 garding unfair or deceptive acts or practices Deposits: of banks; adoption of Regulation A A ..850, 879 Data, revision 280, 294 Financial Reform Act of 1976 323 Interest rates (See Interest on deposits) Foreign bank operations in United States, state- Negotiable order of withdrawal (NOW) acments on proposed legislation 103, 769 counts, amendment of Regulation Q and Full Employment and Balanced Growth Act of staff economic study 248, 280, 741 1976, statements 347, 499 Foreign joint ventures, Board policy statement Home Mortgage Disclosure Act of 1975, adop- and interpretation of Regulations K, M, and tion of new Regulation C and addition of Y 185,249 new part to implement Act; statement Income in 1975, article 658 and exemption of certain States 550,592, Interlocking relationship with minority bank, 1016, 1062 proposed amendment of Regulation L 882 Investment Policy Act of 1976, statement 1012 Reserve requirements (See Reserve require- Leasing of personal property, amendment of ments) Regulation Z in conformity with Consumer State member banks (See State member banks) Leasing Act of 1976 649, 881, 944 Midkiff, William E. Ill, appointed director, Pitts- Privacy Act of 1974, notices of records main- burgh Branch 172 tained by Board of Governors pursuant to, and Mitchell, George W., statement on proposed legisamendment of Rules Regarding Delegation of lation on foreign bank operations in United Authority 521,688,791 States 103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • December 1976 Pages Pages Monetary aggregates, report of Advisory Commit- Publications—Continued tee on Monetary Statistics on improving 422 Industrial production, 1976 revision, article and Monetary control, article on strategy 411 data availability 470, 812, 882 Monetary policy, statements on course of, and List, available A80 condition of economy 110, 119, 231, Over-the-counter margin stock list, changes, re- 427, 509, 575, 668, 765, 906 vised list, and revision of criteria for Money stock measures, article on revision and staff inclusion 280, 554, 608, 648 economic study 82, 410 Security credit extensions, new releases 554 Montgomery, Charles R., appointed director, Detroit Branch 176 Mortgages (See Real estate) RADDOCK, Richard D., article 892 Moyers, James, article 11 Raiken, Allen L., appointed Assistant General Counsel 68 NATIONAL banks: Raish, Richard P., elected Class A director, Cleve- Foreign joint ventures, Board policy statement, land 171 interpretation of Regulation M 185, 249 Real estate: Reserve requirements on Euro-dollar borrowings, Closing costs, disclosure in certain transactions, amendment of Regulation M 248 rescission of amendments to Regulation Z State and local "doing business" taxes, state- concerning 147,185 ment on application to out-of-State financial Fair Housing Act, statement 1016 depositories 433 Financial Institutions and the Nation's Economy Negotiable order of withdrawal (NOW) accounts, study, statements on implications for 100 amendment of Regulation Q and staff economic Home Mortgage Disclosure Act of 1975, adopstudy 248,280,741 tion of new Regulation C and addition of new Nonbank thrift institutions in 1975 and 1976, part to implement Act; statement and exemparticle 979 tion of certain States 550, 592, 1016, 1062 Loans in identified flood-hazard areas, amend- ONEY, Fred B., appointed director, Louisville ment of Regulation H 45, 247 Branch 177 Mortgage debt data, revision 813 Open market operations (See Federal Open Market Nondiscriminatory lending practices in financing Committee) of housing by State member banks, Over-the-counter margin stock list 280, 554, statement 237 608, 648 Record of policy actions of Federal Open Market Committee (See Federal Open Market Commit- PARDEE, Scott E., reports 29, 208, 490, 743, 1004 tee) Parke, Darrel P., article 986 Regulations and rules: Partee, J. Charles: A, Extensions of Credit by Federal Reserve Appointed Member, Board of Governors 65 Banks: Economy, statement on monetary policy and its Conditions that govern borrowing, liberalizaeffects 509 tion, amendment 649, 787 Full Employment and Balanced Growth Act of AA, Unfair or Deceptive Acts or Practices: 1976, statements 347,499 Adoption 850, 879 Patchell, James, elected Class A director, Phila- B, Equal Credit Opportunity : delphia 170 Credit history in name of each spouse, re- Paulus, John D., staff economic study 741 quirement and postponement of effective Payment mechanisms, summary of Federal Reserve date 811 operations 481 1976 legislation, proposed revision to imple- Peinado, Arnold B., Jr., appointed director, El Paso ment 649, 974 Branch 181 Notice pursuant to State law, interpretation Peret, J. Cortland G., appointed Associate Adviser, regarding modification 364, 398 Division of Research and Statistics 977 Officials authorized to issue interpretations, Plotkin, Robert S., appointed Assistant Director, designation, amendment 607, 646 Division of Banking Supervision and Original form of Equal Credit Opportunity Regulation 883 Act, amendments 459 Policy actions, Federal Open Market Committee Student loan programs, signature requirement, (See Federal Open Market Committee) interpretation 46 Prices in recession and recovery, article 557 C, Home Mortgage Disclosure: Privacy Act of 1974 (See Legislation) New regulation, adoption, addition of new Production (See Industrial production) part, and exemption of certain States 550, Publications and releases in 1976: 592, 1062 Annual Report, 1975 553 D, Reserves of Member Banks: Annual Statistical Digest, 1971-1975 882 Cash items in process of collection, interpre- Automobile credit, statistical release 186 tation 605 Banking and Monetary Statistics: Subordinated debt and debenture issues con- 1914-1941 813 sidered part of banks' capital structure, 1941-1970 813 amendment and criteria to be used in evalu- Federal Open Market Committee policy actions, ating requests for approval 601, 646 speed-up of publication 536, 552 Time deposits maturing in 180 days up to 4 Foreign branches of U.S. banks, new quarterly years, amendment 45, 66 report 460 F, Securities of Member State Banks: Industrial electric power use, new monthly Securities and Exchange Commission rules, data 11 amendment to conform 880, 928 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 62 A95 Pages Pages Regulations and rules—Continued Regulations and rules—Continued G, Securities Credit by Persons Other Than V, Loan Guarantees for Defense Production: Banks, Brokers, or Dealers: Guaranteeing agency, change in name, Over-the-counter margin stock list, revision of amendment 249 criteria for inclusion, amendments ...608, 648 Y, Bank Holding Companies: Registration, termination of registration, and Automobile leasing as permissible activity, reporting requirements, amendments 687, 729 order scheduling oral presentation, ruling, H, Membership of State Banking Institutions in and amendment 149, 880, 930-43, 944 the Federal Reserve System: Certain clearing agencies for stock market Application, order approving 873 transactions, proposed amendment on Operations of certain clearing agencies for operations 649 stock market transactions, proposed amend- Escrow arrangements involving bank stock rement 649 sulting in violation of Bank Holding Com- Real estate loans in identified flood-hazard pany Act, interpretation 251 areas, amendments 45,247 Foreign joint ventures, interpretation 249 K, Corporations Engaged in Foreign Banking and Management consulting advice as permissible Financing Under the Federal Reserve Act: activity, proposed amendment 730 Joint ventures, interpretation 249 Purchase of own stock, amendment requiring L, Interlocking Bank Relationships under the prior notification 398,446 Clayton Act: Travel agency operation as permissible activ- Between member bank and minority bank, ity, interpretation 148 proposed amendment 882 Underwriting and dealing in U.S. Govt., State M, Foreign Activities of National Banks: and local, and other authorized obligations Joint ventures, interpretation 249 as permissible activity, deferred action on Reserve requirements on Euro-dollar borrow- amendment 928,973 ings, amendment 248 Underwriting of credit life insurance and credit Q, Interest on Deposits: accident and health insurance as permissible Individual retirement accounts (IRA's), activity, interpretation 537 amendments to facilitate offering, notice Z, Truth in Lending: concerning rule-making proceeding on ceil- Closing costs, disclosure in certain real estate ing rate, and extension of conditions for transactions, rescission of amendments 147, 185 IRA's to Keogh plans45, 688, 729, 973, 1035 Disclosures in Spanish, proposed Keogh plan retirement accounts, extension of amendment 1061 <: conditions for individual retirement ac- Finance charge, itemization, amendment ... 687 counts (IRA's) to, amendments — 973, 1035 Interpretations 186, 251, 730 Negotiable order of withdrawal (NOW) ac- Leasing of personal property in conformity counts, amendments 248, 280 with Consumer Leasing Act of 1976, Penalty for early withdrawal, order granting amendments 649, 881,944 temporary suspension 605, 648 Officials authorized to issue interpretations, Subordinated debt and debenture issues con- designation, amendment 607, 646 sidered part of banks' capital structure, Open-end charge accounts, proposed modifiamendment and interpretation, and criteria cations and amendments adopted regarding to be used in evaluating requests for ap- identification of transactions 459, 787, 811 proval 601,604,646 Supplement, issuance 1061 Transfers of funds from savings accounts to Reserve requirements: cover check overdrafts and change with re- Member banks: spect to pooled funds, proposed amend- Cash items in process of collection, interprements 459 tation of Regulation D 605 Rules of Organization, amendments to update Euro-dollar borrowings, amendment of Regudescriptions of functions of offices and divi- lation M 248 sions 1035 Subordinated debt and debenture issues con- Rules of Organization and Procedure of the Con- sidered part of banks' capital >structure, sumer Advisory Council, adoption 1038 amendment of Regulation D and criteria Rules Regarding Availability of Information, to be used in evaluating requests for apamendment, Federal Open Market Committee 536 proval 601, 646 Rules Regarding Delegation of Authority, Time deposits maturing in 180 days up to 4 amendments 46, 446, 536, 604, 688, 851 years, amendment of Regulation D to T, Credit by Brokers and Dealers: reduce 45, 66 Options, interpretation re use of escrow re- Reserves, aggregate, and member bank deposits ceipts for option transactions effected in data, revision 280, 294 special cash account, amendments institut- Revisions: ing a uniform margin requirement, and pro- Aggregate reserves and member bank deposits posed amendment for exception .... .790, 849, data 280,294 880, 1061 Capacity utilization rates for manufacturing and Over-the-counter margin stock list, revision of industrial materials, revision of manufacturing criteria for inclusion, amendments ...608, 648 series 553,892 U, Credit by Banks for the Purpose of Purchasing Commercial bank loans and investments 554 or Carrying Margin Stocks: Consumer credit data 67 Federal Reserve Form U-l, revision and post- Industrial production, 1976, article and data ponements of effective date 606, 790, 949 availability 470, 812,882 Over-the-counter stock list, revision of criteria Money stock measures 82 for inclusion, amendments 608, 648 Mortgage debt information 813 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 Federal Reserve Bulletin • December 1976 Pages Pages Revisions—Continued Statements to Congress—Continued Time and savings deposits, survey 986 Electronic Fund Transfer Systems, role of Gov- Rhoades, Stephen A., staff economic study 409 ernment, public hearing 912 Robinson, John D., elected Class A director, Equal Credit Opportunity Act, rule-making pro- Boston 169 cedures under, proposal for new private en- Roos, Lawrence K., appointed President, Federal forcement remedy for violations of Truth in Reserve Bank of St. Louis 280 Lending Act, and recent Federal Reserve ac- Rouzie, John S., elected Class A director, Min- tivity concerning 320, 1016 neapolis 178 Fair Housing Act 1016 Ryan, John E., appointed Associate Director, Federal banking law violations, proposals for Division of Banking Supervision and civil penalties, to restrict dealings, and for Regulation 459 remedial actions 339 Federal budget and outlook for adequate supply SECURITIES: of capital 137, 333, 342 State member banks, amendment of Regulations Federal Reserve Reform Act of 1976 353 F and H 649,880,928 Federal Reserve System: Stocks (See Stock market credit) Emergency preparedness plans 574 Underwriting and dealing in U.S. Govt., State Examination, supervision, and regulatory and local, and other authorized obligations as functions, and performance 125, 130, 132 permissible activity by bank holding compa- Regulatory reform proposals 504 nies, deferred action on amendment of Regu- Financial developments, quarterly reports to lation Y 928, 973 Congress: Security credit extensions, new release 554 Q4, 1975 189 Shannon, David L., appointed Director, Division Ql, Q2, and Q3, 1976 401, 651, 885 of Personnel 977 Financial Institutions and the Nation's Economy Sleeper, Alan R., elected Class B director, Kansas study 33, 90, 96, 100, 113 City 179 Financial Reform Act of 1976 323 Sloan, Maceo A., appointed Class C director, Foreign bank operations in United States, pro- Richmond 172 posed legislation 103, 769 Smith, Ken, appointed director, Portland Branch 183 Full Employment and Balanced Growth Act of Smith, Robert E. Ill, return to Federal Reserve 1976 347,499 Bank of Dallas 186 Home Mortgage Disclosure Act 1016 Smith, Rufus C., appointed director, Seattle Housing, nondiscriminatory lending practices by Branch 184 State member banks in financing 237 Solomon, Frederic, retirement as Director, Office Investment Policy Act of 1976 1012 of Saver and Consumer Affairs 813 State and local "doing business" taxes, applica- Solomon, Robert, retirement as Adviser to Board 397 tion to out-of-State financial depositories ... 433 Staff economic studies: Truth in Lending Act, enforcement 833 Bank holding companies, assessment 15 Sternlight, Peter D., article 411 Mi, seasonal adjustment 410 Stock market credit: Merger analysis, extending beyond single-market Federal Reserve Form U-l, revision and postframework 409 ponements of effective date 606, 790, 949 Multibank holding companies, growth 300 Options (See Regulations and rules) "NOW" accounts, effects on costs and earnings Over-the-counter margin stock list 280, 554, of commercial banks in 1974-75 741 608, 648 Stamper, Malcolm T., elected Class B director, San Registration, termination of, and reporting re- Francisco 182 quirements, amendment of Regulation State member banks: G 687,729 Admissions to membership in Federal Reserve Security credit extensions, new release 554 System 68, 186, 280, 398, 460, 555, Stock market transactions, proposed amendment of 649, 730, 813, 883, 977 Regulations H and Y 649 Condition reports and income reports, changes Stockwell, Eleanor J., appointed Adviser, Division and large bank supplements 61, 279 of Research and Statistics 977 Federal Trade Commission Act, amendments re- Swap arrangements 552 garding unfair or deceptive acts or practices by banks; adoption of Regulation A A ..850, 879 TABLES (See guide at top of p. A87 for index Mergers (See Bank Merger Act) to tables published monthly): Operations of certain clearing agencies for stock Aggregate reserves and member bank deposits, market transactions, proposed amendment of revision of data 280, 294 Regulations H and Y 649 Annual Statistical Digest, 1971-1975 882 Real estate loans (See Real estate) Talley, Samuel H., staff economic study and Securities, amendment of Regulations F and article 15, 302 H 649,880,928 Taw, Harry J., elected Class A director, New Statements to Congress (includes reports and a York 170 statement at public hearings): Taxation, statement on application of State and Bank mergers and acquisitions 227 local "doing business" taxes to out-of-State fi- Boycott practices, foreign U.S. bank partici- nancial depositories 433 pation 507 Territory of Federal Reserve district, transfer ... 1061 Consumer credit laws, enforcement 674 Thrift institutions: Economy, condition, and course of monetary Financial Institutions and the Nation's Economy policy 110, 119, 231, 427,509, study, statement 96 575, 668, 765, 906 Nonbank, in 1975 and 1976, article 979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 62 A97 Pages Pages Transfer agent registration, amendment of Rules WALLICH, Henry C.: Regarding Delegation of Authority 536 Federal budget and outlook for adequate supply Treasury Department: of capital, statements 137, 342 Federal recurring payments, interim guidelines Investment Policy Act of 1976, for delivery by Reserve Banks to financial statement 1012 institutions 47, 66 Weaver, Mary F., article 82 Foreign exchange operations of Treasury and Welsh, Gary M., appointed Assistant General Federal Reserve, reports 29, 208, 490, 743,1004 Counsel 68 Swap arrangements 552 Whitmore, Wilmore W., appointed director, New Truth in Lending: Orleans Branch 175 Act, amendments and statements ...147, 185, 247, Wiles, William W., appointed Associate Director, 320, 833 Division of Banking Supervision and Regula- Regulation Z (See Regulations and rules) tion 459 Tuttle, Baldwin B., appointed Deputy General Williams, John R., articles 22, 313, 825, 986 Counsel 68 Woodrow, Robert H., Jr., appointed director, Birmingham Branch 174 U.S. GOVERNMENT securities, underwriting and dealing in 928, 973 ZELLER, Stephen, article 294 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 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 U Uses of funds III, IV Quarters * 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 "U.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 Dec. 1976 A-82 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

99 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories HAWAII d> 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