Federal Reserve Bulletin, 1977-02

FEBRUARY 1977 FEDERAL RESERVE BULLETIN Equal Credit Opportunity Domestic Financial Developments in the Fourth Quarter of 1976 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 and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela 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 oar in U.S. currencv (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 2 • VOLUME 63 • FEBRUARY 1977 CONTENTS 101 Equal Credit Opportunity A1 Financial and Business Statistics 108 Domestic Financial Developments A3 Domestic Financial Statistics in the Fourth Quarter of 1976 A46 Domestic Nonfinancial Statistics A54 International Statistics 116 Statements to Congress A70 Board of Governors and Staff 129 Record of Policy Actions of the Federal Open Market Committee A72 Open Market Committee and Staff; Federal Advisory Council 147 Law Department A73 Federal Reserve Banks and Branches 170 Directors of Federal Reserve Banks and Branches A74 Federal Reserve Board Publications 185 Announcements A76 Index to Statistical Tables 187 Industrial Production A78 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation and Statistical Releases PUBLICATIONS COMMITTEE James L. Kichline Joseph R. Coyne John M. Denkler John E. Reynolds Stephen H. Axilrod Janet O. Hart John D. Hawke, Jr. 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

Equal Credit Opportunity This article was prepared in the Division of extended by utilities, credit extended to govern- Consumer Affairs. mental units, and incidental credit; that is, open book credit in which neither a credit card is used The Equal Credit Opportunity Act and the Fed- nor a finance charge is imposed. Whereas most eral Reserve's implementing Regulation B, of these classes of credit are not subject to many prohibiting discrimination in the granting of of the technical provisions of the regulation, credit on the basis of sex or marital status, they are subject to the general rule that prohibits became effective in October 1975. In March discrimination. 1976 the Congress amended the act by prohibiting discrimination on seven new bases: race, color, religion, national origin, age, receipt of REQUIREMENTS public assistance benefits, and the good faith exercise of rights under the Consumer Credit The principal new requirement of the act and Protection Act. These statutory amendments and Regulation B is that creditors must notify applia revised Regulation B go into effect on March cants of the action taken on their applications. 23, 1977. This article points out the highlights If the action is affirmative—that is, if the appliof the amended act and offers some insight into cation is approved—the notice of approval may the revised regulation. The technical aspects of be given by implication. Thus in most situations the regulation are treated first, followed by a when credit is granted, creditors will be required discussion of some aspects of discrimination. to do no more than they now do—for example, make the loan, or sell the goods, or mail the The Equal Credit Opportunity Act (ECOA) credit card. Only when the action is "adverse," is a hybrid law—geared in part to consumer must additional measures be taken. protection and in part to antidiscrimination. Its consumer protection aspects include two requirements: (1) that creditors notify applicants WHAT CONSTITUTES of the action taken on their applications, and ADVERSE ACTION? (2) in the event credit is denied, that applicants be told the reason for the denial. But the law Adverse action is one of the most important is primarily a civil rights law in that its principal aspects of the new regulation. Adverse action provision is a ban on discrimination, and it takes occurs when the creditor refuses to grant credit its meaning from the body of judicial decisions in substantially the amount or on substantially in such areas as employment and housing dis- the terms requested in an application. But if the crimination. creditor makes a counteroffer—offering less Regulation B applies to all types of credit, credit or different terms—and that offer is acbut it treats consumer credit differently from cepted, no adverse action has occurred. Adverse other kinds of credit. The definition of consumer action also may occur after the initial extension credit is similar to that found in Regulation Z of credit; for example, when an increase in a (Truth in Lending) except that credit extended line of credit is requested and refused. In this for agricultural purposes is not deemed to be event, action on the request must be in accordconsumer credit. The classes of transactions that ance with the creditor's normal procedures on are afforded specialized treatment in Regulation applications for such an increase. However, a B are business credit, securities credit, credit refusal to extend credit at a point of sale when Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 Federal Reserve Bulletin • February 1977 the credit would exceed a previously established Therefore, the revised regulation requires that credit limit is not considered adverse action. the ECOA notice be combined with the state- Finally, adverse action occurs when a creditor ment of adverse action. A sample ECOA notice terminates an account or changes the terms in is included in the regulation, but it need not a way unfavorable to the account-holder, but be used verbatim. a change expressly agreed to by the account- In addition to telling applicants that adverse holder or a change covering an entire class of action has been taken, creditors must tell them account-holders is not deemed to be adverse either the specific reasons for the adverse action action. or of their right to know the reasons and have Regulation B also describes other events that the explanation confirmed in writing upon reare not adverse action. An action taken as a quest. result of default or inactivity of an account is What happens if more than one creditor is not adverse action. If an applicant requests a involved in a transaction? A typical situation type of credit (a credit card, for instance) that involves an automobile dealer who checks with the creditor does not offer, the refusal to extend several sources of credit, such as one or more the credit is not adverse action. But if an appli- banks and possibly a sales finance company, cant requests a personal loan at an annual per- before making the sale. Each institution concentage rate of 5 per cent and the creditor tacted has "participated in the decision to exnormally charges 12 per cent, the refusal to tend credit" and thus is responsible for furnishmake the loan at 5 per cent is adverse action— ing the notice. Regulation B provides, however, unless, of course, the applicant agrees to pay that if credit is extended by one of the sources 12 per cent. contacted, no adverse action has occurred and no notice need be sent. If, on the other hand, no one agrees to buy the paper and the dealer NOTICE OF ADVERSE ACTION does not extend the credit, then the notice must To reiterate, if the action is not adverse, the be sent. Each source of credit may comply with notification of action taken may be given by the notice requirement directly, or the sources implication. However, if the action is adverse, may supply the information to a third party, then within 30 days after the decision is made, such as the dealer, who may provide the notices a written statement must be given to the appli- on their behalf. In doing so, however, the dealer cant. The statement must make clear the action must supply the name of each institution to taken and must contain the ECO A notice. which the contract was offered. The ECOA notice consists of a brief state- Institutions that purchase contracts after the ment of the act's prohibition of discrimination dealer has extended the credit are not considered and the name of the Federal agency that enforces to have participated in the decision to extend the act with respect to the particular creditor. credit and therefore are not subject to the notifi- It is principally an educational device that was cation provisions. included in the earlier Regulation B at the suggestion of consumer advocates who believed it REASONS FOR DENYING APPLICATIONS would improve public awareness of the law. The earlier regulation, which required creditors to How detailed or specific the reason for denial provide the ECOA notice to all applicants at must be was one of the most controversial the time an application was made, caused some questions the Board faced in revising Regulation serious compliance problems. B. The statute provides that a statement of When the regulation was revised, it was be- reasons is sufficient only if it contains the "spelieved that the notice probably was most impor- cific reasons for the adverse action taken" but tant to those persons whose applications had "specific" is not defined. The legislative history been denied and would be most meaningful at of the 1976 amendments indicates that the Conthe time they learned of the adverse action. gress viewed the statement of reasons for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Equal Credit Opportunity 103 denial of credit as an important tool for educa- tors to ask the sex and race of applicants for ting consumers and that the statement was in- credit. This change was based on the realization tended to help consumers understand the credit- that these data constituted an important engranting process. Against this background, the forcement tool. arguments of creditors that they should be per- The regulation provides that in applications mitted to tell applicants merely that they failed for residential mortgage credit, creditors must to qualify were not persuasive. ask applicants to provide information as to their However, it is often exceedingly difficult to race or national origin, sex, marital status, and identify the reason why an application has been age. Nevertheless, applicants are not required denied. Many factors enter into a credit judg- to supply the information. They are to be inment, and the decision to grant or deny credit formed that supplying the information is volunis made after weighing all of them. This is best tary and that the information is being sought illustrated by a credit-scoring system, although for the purpose of monitoring compliance with creditors that do not use such a system have the ECO A and the Fair Housing Act. the same problem. In a credit-scoring system, The Board's model real estate application if an applicant fails to achieve the cut-off score, form was developed in cooperation with the credit is denied. If the applicant had achieved Federal Home Loan Mortgage Corporation and more points on any of, say, five factors scored, the Federal National Mortgage Association. The credit might have been granted. Which, if any, model form includes the required questions and of the factors then can be pinpointed as the disclosures, but those inquiries need not appear principal reason or reasons for denial? on the application form. They may appear on To avoid the identification problem, creditors a separate piece of paper so long as that paper preferred to tell applicants that the reason for can be related to the application form. adverse action was the failure to achieve a qualifying score. The Board thought that such CREDIT REPORTING an explanation would not satisfy the statutory language or the congressional goals; hence the The credit-reporting provisions of revised Regregulation indicates that a statement that the ulation B are drawn from the earlier regulation. applicant failed to achieve a minimum score is Although the language has been altered subnot sufficient explanation. The regulation con- stantially, the basic requirements have not been tains a model form that lists specific reasons for changed. These provisions are intended to procredit denial such as insufficient income, exces- vide married women with credit histories in their sive obligations, and so on. own names. After June 1, 1977, whenever a new account is opened, a creditor will have to determine DATA FOR whether the applicant's spouse will use the MONITORING COMPLIANCE account, in the case of open-end credit, or will When the earlier version of Regulation B was be contractually liable for it, and the creditor being drafted, feminist groups fought hard for will report credit experience about the account a provision banning questions about an appli- in a manner that will result in the creation of cant's sex or marital status on application forms. a credit history in the name of each spouse. With They believed that keeping this information respect to existing accounts, creditors have alfrom creditors would reduce discrimination ternative ways to comply. If they can determine against women. Such a ban also was viewed from their files whether an account-holder's as a way of re-educating those who still thought spouse is contractually liable or is an authorized that these factors were crucial to the credit user, they may begin reporting in the name of decision. But a year later these same groups each spouse. Often, however, this information were supporting civil rights groups in calling would not be reflected in a creditor's files or for a provision in Regulation B requiring credi- could not be found easily. In such event, credi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 Federal Reserve Bulletin • February 1977 tors may send their account-holders the notice to extend credit to anyone over 65 years of age. set forth in the regulation informing them of The elderly also complained that certain banks their right to have credit history reported in both made a practice of terminating credit cards when their own and their spouses' names when both the account-holders reached the age of 60 or are liable for the account or, in the case of 65. Although the Congress wished to abolish open-end credit, when both use the account. arbitrary practices such as these, in the final analysis, the law's prohibition of age discrimination is not absolute. APPLICATION FORMS Unlike the absolute prohibition against con- The restrictions on requests for information sidering a person's sex, race, or religion in the about marital status or about the applicant's credit judgment, the prohibition relating to age spouse are drawn from the existing Regulation consideration is qualified—in recognition of the B, and therefore few changes in application fact that a person's age is relevant to the ability forms should be required. One difference be- to repay. In fact, the Senate report on the equal tween the old and new regulation involves the credit amendments states that the law is intended ECOA notice. To comply with the earlier Reg- to prevent creditors from rejecting or "blackulation B, many creditors chose to include the balling" any applicant solely because of age, notice on their application forms. Since that and is not intended to prevent any consideration notice is no longer required to be given to all of this factor. applicants, creditors may drop it from their forms. The regulation provides, however, that creditors may continue to use their existing SYSTEMS OF EVALUATION forms until their present stock is exhausted or until March 23, 1978, whichever comes first. The amended act divides the credit world into To help creditors comply with the regulation, two parts and specifies different rules about the the Board included model application forms in consideration of age for each. One part, by far an appendix to the regulation. Creditors need the larger, consists of the creditors who use what not use the model forms; but if they do, they Regulation B calls "judgmental" systems for will be deemed to be in compliance with those evaluating creditworthiness. In these systems provisions of the regulation affecting application the creditor relies primarily upon judgment in forms. It is anticipated that creditors will start determining whether to approve an application. with the model forms and strike out those in- The other part of the credit world consists quiries that they do not find useful in granting of the creditors who rely upon credit-scoring credit. systems to make their credit decisions. Such systems predict creditworthiness by allocating points to key attributes about the applicant (income, length of time on job, length of resi- DISCRIMINATION dence, and so on). Occasionally a credit-scoring BASED ON AGE system considers aspects of the transaction, such With respect to most of the bases of prohibited as the amount of credit applied for. These sysdiscrimination covered by the amended Equal tems are used principally by the large credit-card Credit Opportunity Act, the prohibition of dis- issuers and increasingly by consumer finance crimination is absolute. The same is not true, companies and smaller creditors. however, of the prohibition of discrimination on the basis of age. Therefore it is important to JUDGMENTAL SYSTEMS. The law says discuss this particular form of discrimination. that creditors who use judgmental systems may When the ECOA amendments were being ask the applicant's age. They may not consider considered in the Congress, representatives of age directly, but may use it to determine a the elderly testified that many creditors refused "pertinent element of creditworthiness." The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Equal Credit Opportunity 105 statute identifies amount of income, probable interest in having a system that accurately idencontinuance of income levels, and credit history tifies good and bad credit risks—would do. If, as pertinent elements of creditworthiness, and and only if, a creditor's system passes the Regulation B adds length of time until retire- standards set forth in the regulation, may the ment to the list. These four criteria are only creditor use age as a predictive variable in the examples, however, and do not exhaust the list system. of pertinent elements. After qualifying as being demonstrably and It is true that this standard is vague. Neither statistically sound and empirically derived, the the statute nor the regulation specifies a rule of system must then meet the requirements of the thumb that is easy to apply. In fact, the legisla- second rule. Section 701(b)(3) of the amended tive history reveals that the Congress chose to act forbids assigning a "negative" factor* or describe the standard by means of examples. value to the age of an "elderly" applicant, The Senate report identifies adequacy of collat- defined in Regulation B as 62 years or older. eral as another pertinent element of credit- To comply with the law, a creditor should worthiness and explains that examine the scores for age assigned to the various categories of applicants. If the creditor . . . [a]n elderly applicant might not qualify finds that in its system all applicants aged 62 for a 5% down condominium loan because or older receive a score at least as high as that the duration of the loan exceeds his life of any category below that age, no change is expectancy and the condominium itself has a speculative future value. But that same required. If, however, any category of appliapplicant ought to be deemed creditworthy cants aged 62 or older currently is being aswhen he seeks a $10,000 home improvement signed fewer points than any category of appliloan secured by a $50,000 homesite. cants younger than 62, the creditor must adjust In other words, the law prohibits arbitrariness the system. Either the score for persons aged and blanket rules, such as refusing to grant 62 or over must be increased or the score for credit to anyone over 65. The law does not mean the younger applicants must be lowered. that every refusal to grant credit to an elderly person is illegal. Credit may be denied after the EXCEPTION FAVORING THE ELDERLY creditor has evaluated the facts and determined that this particular applicant does not meet the The amended act contains one final rule relating creditor's usual standards. to the consideration of an applicant's age— namely that a creditor may consider the age of CREDIT SCORING. In a credit-scoring sys- an elderly applicant when this factor is used to tem, different rules apply. The first rule is that favor the applicant. It is not entirely clear how a creditor may consider the applicant's age this rule meshes with the rules just discussed, directly; that is, age may be used as a factor but it apparently was intended to authorize a only in a system that is a demonstrably and creditor to make an exception to its usual credit statistically sound, empirically derived credit- standards in order to grant credit to an elderly scoring system as defined by Regulation B. applicant. Although this definition seems long and sounds forbidding, a statistician will recognize that the regulatory standards are not very difficult to DETERMINING THE EXISTENCE satisfy. OF CREDIT DISCRIMINATION Fundamentally, the system must be based on the creditor's recent experience with credit ap- In recent years judicial decisions have outlawed plications, and generally accepted statistical practices that have had the effect of discrimtechniques must be used for sampling and vali- inating, regardless of an employer's motive in dation. In short, the regulatory definitions de- adopting the practice. Out of these decisions scribe what any creditor—motivated by business there has emerged the "effects" test for deter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 Federal Reserve Bulletin • February 1977 mining whether discrimination does, in fact, to the employer to demonstrate that the emexist. ployment practice is job-related. If the employer shows the relationship, the plaintiff then has the option of attempting to point out that other tests THE EFFECTS TEST or selection devices, without a similarly unde- The effects test is a judicial doctrine first enun- sirable racial effect, would also serve the emciated in Griggs v. Duke Power Company [401 ployer's legitimate interest in finding qualified U.S. 424 (1971)], a case brought under Title employees. VII of the Civil Rights Act of 1964. Such a test has been applied in a series of employment POSSIBLE APPLICATION discrimination cases. The legislative history OF EFFECTS TEST [Senate Report No. 94-589, 94th Congress, Second Session (1976), pp. 4 and 5] specifically It is not clear exactly how the courts will apply directs the Board of Governors and the other the effects test to the area of credit discrimenforcement agencies, as well as the courts, to ination, but the following three-step process use employment discrimination cases such as represents one possible approach. In step 1, the Griggs and Albermarle Paper Company v. plaintiff would attempt to show that, although Moody [422 U.S. 405 (1975)] as guides in consideration of a particular credit standard— determining the existence of credit discrim- homeownership for instance—does not appear ination under the ECOA. on its face to discriminate on the basis of sex, In the Griggs case, several black employees reliance on this standard of creditworthiness of the Duke Power Company challenged the results in the rejection of the credit applications company's policy of requiring, as a prerequisite of women, who are members of a class profor hiring and promoting workers in a power tected by the law, and that such rejections occur plant, a high school diploma and a passing score at a significantly higher rate than rejections of on an intelligence test. The Court of Appeals men. Such a showing would present a primafound for the company on the ground that the facie case of illegal discrimination by the crediplaintiffs had not shown that adoption of this tor. policy was motivated by discriminatory intent. In step 2, to rebut the plaintiff's prima-facie The Supreme Court reversed the decision, case, the creditor would have to show that this holding that Title VII outlawed practices that credit standard is customarily applied to all had the effect of discriminating, regardless of applicants, and that the standard has a manifest the employer's motive in adopting the practice. relationship to creditworthiness. Thus, the Griggs case obviates the need to prove The plaintiff then would have the option of racial purpose or invidious intent to establish going to step 3, where she would attempt to a violation of Title VII. prove that an alternative credit standard that In the second case, Albermarle Paper Com- would have a lesser adverse impact on women pany v. Moody, the Supreme Court described does exist and that the alternative would serve the plaintiff's and the defendant's respective the creditor's legitimate business interests at burdens of proof in a Title VII employment least as well as the criterion of homeownership. discrimination case. The Court explained that If the plaintiff made such a showing, the credithe initial burden is on the plaintiff to show that tor—to prevail—would have to demonstrate that the challenged employment practice selects ap- the alternative practice would not have a lesser plicants for hire or promotion in a racial pattern adverse impact or that it would not serve the significantly different from that of the pool of creditor's interests at least as well as the conapplicants. This showing of disproportionate sideration of homeownership. racial impact, which is usually made through In revising Regulation B to implement the the use of statistics, constitutes a prima-facie amendments to the act, one of the most difficult case of discrimination. The burden then shifts issues confronting the Board was how to deal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Equal Credit Opportunity 107 with the effects test. At one extreme, some credit field. It is possible that at some time in groups urged the Board to take the position that the future the Federal Reserve might propose credit was fundamentally different from em- guidelines for complying with the test. ployment and that therefore the effects test Without guidelines, creditors and their lawshould not be applied in cases arising under the yers are justifiably concerned about the prospect ECO A. At the other end of the spectrum, some of the effects test being applied in credit discivil rights groups urged that Regulation B con- crimination cases, and they question what they tain a list of credit practices that have the effect can do to protect themselves. Any advice on of violating the act or contain guidelines for this subject has to be prefaced with the warning complying with the test. that the courts may apply the effects test to credit In the light of the legislative history, there discrimination cases differently from the way it can be no doubt that the Congress intended the is applied in employment discrimination; and effects test to be applied to cases under the as noted above, the Supreme Court may re-in- ECO A. On the other hand, there was a persua- terpret the test. Nevertheless some preliminary sive argument against including in Regulation observations can be made: The relatively small B detailed guidelines on the effects test or a number of creditors that use demonstrably and "laundry list" of prohibited practices—the ar- statistically sound, empirically derived credit gument being that the test is a judicial doctrine systems should have little trouble in successfully and that as such it is subject to re-interpretation completing step 2 as described above—that is, and modification by the courts. rebutting the plaintiff's prima-facie case of dis- This fact was brought home forcibly on De- crimination—because if a credit-scoring system cember 7, 1976, when the Supreme Court meets the regulatory standard, the factors conhanded down its decision in General Electric sidered by the system must have a manifest v. Gilbert [45 USLW 4031]. This class action relationship to creditworthiness. was brought under Title VII by women em- For the great majority of creditors who rely ployees of the General Electric Company chal- on judgmental systems, building a credit system lenging the company's disability plan. Specifi- that will withstand an attack based on the effects cally, the plaintiffs challenged the fact that the test is by no means an easy task. Perhaps the disability plan excluded disabilities arising from most that can be done is to ask the credit pregnancy. The Supreme Court, reversing the manager, the lending officers, or the manage- Court of Appeal's decision in favor of the ment to identify the factors considered in makplaintiffs, held that General Electric's disability ing credit decisions. Once the factors are idenplan did not violate Title VII because of its tified, it is necessary to take a long, hard look failure to cover pregnancy-related disabilities. at each one to see whether there is a rational According to the majority opinion, the plaintiffs relationship between the factor and the goal of had failed to make the requisite showing that identifying acceptable credit risks. One should the failure to provide benefits for pregnancy had keep in mind that although almost every standgender-based effects. How the General Electric ard of creditworthiness traditionally used by case affects the effects test as formulated in creditors (income, own or rent, length of time Griggs, Albermarle, and similar cases is not on job, and so on) can be shown to have a clear. It would appear that the test still exists, disproportionate adverse impact on women or but the Supreme Court is re-examining it and minorities, that does not mean that a creditor may make some adjustments. must stop using these standards in evaluating A footnote to Regulation B states that the creditworthiness. It is likely that the creditor can legislative history indicates that the Congress show that these factors have a manifest relaintended the effects test to be applied to the tionship to creditworthiness. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 Domestic Financial Developments in the Fourth Quarter of 1976 This report, which was sent to the Joint Eco- dicators also led to a reappraisal of expected nomic Committee of the U.S. Congress on Feb- future pressures in credit markets. The resultant ruary 17, 1977, highlights the important devel- change in expectations was most evident in the opments in domestic financial markets during short- and intermediate-term maturity sectors, the fall and early winter. where yields posted declines of % of a percentage point. But yield declines on long-term bonds Interest rates generally declined during the also were substantial, amounting to about V2 of fourth quarter of 1976, in many cases reaching a percentage point. Incoming economic data their lowest levels in several years. The further began to strengthen late in the year, and in easing of credit conditions may in part have January market yields moved upward again, been attributable to the slower pace of economic erasing a portion of the fourth-quarter decrease. expansion since the spring. In this less robust Federal Reserve policy also tended to foster environment, business needs for external fi- the further easing in market rates of interest nancing were reduced on balance, reflecting during the fourth quarter. The System was efforts to balance inventories and, in some in- somewhat more accommodative in the provision stances, to stretch out or postpone capital of reserves through open market operations, and spending plans. The weakness of economic in- the interest rate on Federal funds—overnight Interest rates Per cent per annum ••••••••••••••••jjl^HI SHORT-TERM NOTES: Federal funds Monthly averages except for F.R. discount rate and conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; Aaa utility bonds, weighted averages of new publicly F.R. discount \ offered bonds rated Aaa, Aa, and rate A by Moody's Investors Service Treasury bills ^ and adjusted to Aaa basis; U.S. 3-month Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed 1974 1975 1976 1974 1975 1976 quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q4 1976 109 loans of immediately available bank funds—fell expanding along with enlarged inflows of savfrom 5V4 per cent at the end of September to ings to the major lending institutions, interest 45/s per cent around year-end. In addition, com- rates on conventional residential mortgages plementary adjustments were made in other in- posted only small declines. struments of monetary policy. The discount rate The narrowly defined money stock (M-l) was cut by lA of a percentage point to 5 lA per grew at an annual rate of 6.3 per cent in the cent on November 22, and a modest reduction fourth quarter, up from the 4.2 per cent rate in reserve requirements on demand deposits at of the previous quarter. Growth rates of the member banks was announced in December, to broader monetary aggregates accelerated more, become effective in the week ending-January as the decline in market rates of interest in- 5. Reserve requirements were reduced by V2 creased the relative attractiveness of savings and of a percentage point on the first $10 million small-denomination time deposits at commercial of net demand deposits of member banks, and banks and thrift institutions. M-2 rose at a 12.3 by V4 of a percentage point on the remainder per cent annual rate and M-3 at a 14.3 per cent in excess of $10 million; this action released rate—the largest quarterly gains for the broader about $550 million of bank funds for additional aggregates since the spring of 1975. Faced with loans and investments. heavy inflows of funds and declining returns on Total flows of funds through financial markets new loans and investments, some depositary were little changed from the preceding quarter, institutions toward year-end moved to cut offerand credit demands remained heavily focused ing rates on time and savings deposits or to take in the longer-maturity sectors. The home mort- other steps to slow the growth of higher cost gage market absorbed an especially large vol- funds. ume of funds; with demands for home loans Over the course of 1976, M-l increased 5.5 1. Changes in selected monetary aggregates In per cent, seasonally adjusted annual rates 1976 IItteemm 11997755 11997766 Qi Q2 Q3 Q4 NOTES: Member bank reserves: Total -.2 1.0 -3.9 .7 3.0 4.3 1M-1 is currency plus private Nonborrowed 3.2 1.2 -3.2 .4 3.0 4.6 demand deposits adjusted. M-2 is M-1 plus bank time and Concepts of money:1 savings deposits adjusted other M-l 4.4 5.5 2.9 8.2 4.2 6.3 than large CD's. M-2 8.3 10.9 9.9 10.5 9.2 12.3 M-3 is M-2 plus deposits at M-3 11.1 12.8 11.5 11.8 11.4 14.3 mutual savings banks and savings M-4 6.5 7.1 5.4 6.4 6.1 9.7 and loans and credit union shares. M-5 9.7 10.3 8.6 9.1 9.3 12.5 M-4 is M-2 plus large negotia- Time and savings de- ble CD's. posits at commer- M-5 is M-3 plus large negotiacial banks: ble CD's. Total (excluding 2Savings and loan associations, large CD's) .. 11.7 15.2 15.3 12.4 13.0 16.8 Savings 17.0 24.5 28.3 21.7 13.4 26.9 mutual savings banks, and credit Other time 8.0 8.0 5.6 4.9 12.5 8.2 unions. Thrift institutions2 ... 15.8 15.9 14.2 13.7 14.8 17.3 3 Total member bank deposits plus funds provided by Euro-dollar Bank credit proxy3 4.3 4.3 2.6 2.2 3.9 8.2 borrowings and bank-related com- MEMO (change in bil- mercial paper. lions of dollars, seasonally ad- NOTE.—Changes are calculated justed) Large CD's -5.3 -19.2 -6.4 -5.4 -4.3 -3.1 from the average amounts out- U.S. Govt. demand standing in each quarter. Annual deposits at all rates of change in reserve measures member banks -.2 .3 -.6 .2 .6 .1 have been adjusted for changes in reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 Federal Reserve Bulletin • February 1977 per cent, while M-2 and M-3 rose 10.9 per cent Consumer-type time deposit growth and 12.8 per cent, respectively. These advances at depositary intermediaries ranged between 1 and 2 V2 percentage points Basis points above the comparable figures for the preceding YIELD DIFFERENTIALS year. Commercial bank deposit rate ceilings 200 MONETARY AGGREGATES Over 2 1/2-year account minus 5-year Treasury yield Over the course of the fourth quarter, the shortliii^iiiiiW^aiiiiwM run growth rates of M-l—currency and 'demand Annual rate of growth, per cent deposits held by the public—exhibited consid- TIME DEPOSIT GROWTH erable short-run volatility, as had been the case 30 during earlier periods of 1976. Apart from the wide week-to-week fluctuations, however, the 20 aggregates trended upward during the quarter at a somewhat faster pace than in the preceding 3 months. The acceleration in growth of M-l 10 probably reflected to some extent the larger increases in personal income and in retail sales flHHHHHHHHi f that occurred in the closing months of the year, 1972 1974 1976 as well as the stimulative effects of a somewhat more accommodative monetary policy. Time deposit growth data are seasonally adjusted. Time deposit growth includes time accounts at mutual savings banks, Growth in the public's demand for checking savings and loan associations, and commercial banks. The commercial bank data include only time accounts of less than $100,000. Savings account growth account balances during 1976 again was deat depositary intermediaries pressed by the growing availability of interestbearing alternatives for transactions purposes. Basis points Given the observed behavior of income and YIELD DIFFERENTIAL 200 interest rates, it is estimated that the growth of Commercial bank savings account ceiling M-l was about IV2 percentage points less than minus 30-day Treasury bill rate .. y would have been expected on the basis of past relationships. Most of this difference appears to have stemmed from the shift of transactions balances into such alternatives as negotiable I t I order of withdrawal (NOW) accounts in New Annual rate of growth, per cent England and savings accounts for businesses SAVINGS ACCOUNT GROWTH and State and local governments. (Commercial 20 banks were first authorized to offer savings accounts to State and local governments in No- S vember 1974; in November 1975 they were first 10 permitted to offer savings accounts to businesses operated for profit, with a maximum balance of •HHNHHHHHHI $150,000.) 1972 1974 1976 The transfer of demand deposits into interest- Savings account growth data are seasonally adjusted. Sav- bearing alternatives did not depress the broader ings account growth includes accounts at commercial banks, mutual savings banks, and savings and loan associations. monetary aggregates as it did M-l because these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q4 1976 111 alternatives are included for the most part in Changes in income velocity of M-l and M-2 M-2 and M-3. Furthermore, growth of M-2 and M-3 may have been enhanced by shifts of funds from market instruments to the new interestbearing deposits because of their liquidity. More important in explaining the increased growth in the broader aggregates, however, was the decline in market yields below regulatory ceilings on both time and savings deposits. Growth in savings accounts at commercial banks, savings and loan associations, and mutual savings banks accelerated in the fourth quarter from the already high third-quarter pace (see accompanying chart). Time deposits other than large money market certificates of deposit (CD's) at all three types of institutions continued to expand at a very rapid, though slightly reduced, pace in the fourth quarter. The relationship between time deposit ceiling rates and rates on Treasury securities of comparable maturity remained very favorable. Responding to the continued ease in credit market conditions, an increasing number of depositary institutions took action in the fourth quarter to reduce their cost of funds. For ex- Data are at seasonally adjusted annual rates of growth. ample, toward the end of the quarter some institutions reduced offering rates or withdrew of M-l (V-l, the ratio of gross national product some maturities on certificate accounts. Many to M-l) and the velocity of M-2 (V-2, the ratio also cut back on promotional activity that had of GNP to M-2) in recent quarters. V-l inbeen used to attract deposits. Mutual savings creased at a 2.7 per cent annual rate during the banks and savings and loan associations seem fourth quarter, while V-2 declined at a 3.1 per to have focused their actions on longer-term cent rate. During the last year and throughout certificate accounts, while banks appear to have the current expansion, V-l has risen at an unuemphasized the lowering of costs on short-term sually rapid rate. In contrast, V-2, which had time and savings deposits. shown no systematic trend in previous years, Large commercial banks permitted further declined by 0.7 per cent in 1976. declines in outstanding large negotiable CD's during the fourth quarter. However, the attrition in CD volume at large banks was slightly more BANK CREDIT than offset by an increase in their net purchases AND COMMERCIAL PAPER of Federal funds. The total of such money market sources of funds of large banks thus Total loans and investments at commercial continued to increase moderately. banks increased at an 8 per cent annual rate The impact of the growth of interest-bearing during the fourth quarter, somewhat above the alternatives to demand deposits, and the rela- 6.3 per cent average rate of increase during the tively greater stimulus afforded interest-bearing year as a whole. The relatively strong demands deposits by declining market yields, help to for funds on the part of the household sector explain the divergent behavior of the velocity were reflected in continued gains in instalment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 Federal Reserve Bulletin • February 1977 loans and home mortgages. During 1976 as a Components of Major categories of whole, consumer and real estate loans accounted bank credit bank loans for three-fourths of total loan growth at Change, billion_s _of_ _do_ll_a_rs_ banks—an unusually large proportion. Banks TREASURY SECURITIES BUSINESS also stepped up their purchases of U.S. Government securities in the fourth quarter, particularly those with maturities of less than 1 year, bringing their total acquisitions for the year to $17 billion, compared with $30 billion during REAL ESTATE 1975. ! n n 1 n,n Short-term business credit—measured as the sum of business loans at banks plus commercial CONSUMER paper issued by nonfinancial firms—recorded j M —| m - n I I I | I P I I the largest increase in more than 2 years. Growth in business loans accounted for the bulk NONBANK FINANCIAL of this gain. About two-fifths of the $4 billion u u increase in such loans at all banks represented acquisitions of acceptances by large banks, ap- Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 parently to expand their asset bases used to 1975 1976 1975 1976 calculate tax-deductible loan loss reserves. Even Seasonally adjusted. Total loans and business loans adjusted after adjustment for the positioning of accept- for transfer between banks and their holding companies, affiliates, subsidiaries, or foreign branches. ances, however, growth of business loans—and of total short-term business credit—was stronger than in any other quarter of the past 2 years. Reflecting declines in short-term market yields, the prime rate at most banks fell during the quarter from 63A to 61A per cent. 2. Rate spreads and changes in business loans and commercial paper Change NONBANK INTERMEDIARIES AND THE MORTGAGE MARKET RRRaaattteee Busi- Commer- PPPeeerrriiioooddd sssppprrreeeaaaddd111 ness cial Total AAnnnnuuaall Total mortgage lending again expanded strongly (((bbbaaasssiiisss loans2 paper5 rraattee ffoorr pppoooiiinnntttsss))) ttoottaall in the fourth quarter, as commercial banks and In billions of dollars, ((ppeerr nonbank thrift institutions continued to receive cceenntt)) seasonally adjusted large inflows of time and savings deposits. The combined deposits of savings and loan associa- 1975— Q1 237 -2.4 .8 -1.6 -3.2 tions and mutual savings banks grew more than Q2 .. 170 -4.0 -1.5 -5.5 -11.1 I6V2 per cent in the final quarter, modestly Q3 .. 121 -1.4 -.3 -1.7 -3.5 Q4 192 .3 -1.6 -1.3 -2.7 above the 15% per cent pace for the year as a whole. 1976— The continuation of strong deposit growth Q1 .. 194 -3.3 .8 -2.5 -5.3 Q2 171 -1.0 1.9 .9 1.9 during the final quarter of 1976 enabled savings Q3 193 1.5 -1.2 .3 .6 and loan associations to extend new mortgage Q4 180 4.2 .6 4.8 10.3 credit at a record pace without placing signifi- 1 Prime rate less 30- to 59-day commercial paper rate. cant pressure on their liquidity positions. Out- 2At all commercial banks based on last-Wednesday-of-month data, adjusted for outstanding amounts of loans sold to affili- standing mortgage commitments (including ates. loans in process) at savings and loan associa- 3 Nonfinancial company paper measured from end-of-month tions rose to a new seasonally adjusted high of to end-of-month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q4 1976 113 $25.4 billion at year-end, as these institutions yields on primary mortgages and to extremely continued to dominate the market for conven- strong demands by households for home morttional 1- to 4-family home mortgages. Net gage funds. mortgage acquisitions by commercial banks and mutual savings banks also moved higher in the fourth quarter, but the continued weakness in Deposits the commercial and multifamily mortgage mar- Savings and loans and mutual savings banks ket restrained the increase in lending by these and other institutions such as life insurance companies. Issues of mortgage-backed pass- 16 through securities guaranteed by the Government National Mortgage Association (GNMA) continued to be important in the final quarter 8 of 1976, as extensions of credit through purchases of these securities were about one-fifth above the previous quarter's record rate. 0 Q4 Q1 Q2 Q3 Q4 Interest rates on new commitments for home 1975 1976 mortgages in the primary market moved about Seasonally adjusted. Quarterly averages at annual rates. 10 to 15 basis points lower in the final quarter of 1976, while yields on Government- SECURITIES MARKETS underwritten home mortgages in the secondary market declined about Vi of a percentage Gross long-term debt and equity financing by point. The relative stability of primary market U.S. corporations, seasonally adjusted, conrates was due both to a limited response by tracted somewhat in the final quarter of 1976, diversified lenders to the relatively attractive reflecting a lighter pace of new common and preferred stock offerings. Public bond offerings by industrial corporations—particularly primerated concerns—continued to be relatively 3. Net change in mortgage debt outstanding modest by recent standards, but lower-rated In billions of dollars, seasonally adjusted annual rates industrial corporations (less than Aa), public 1975 1976 utilities, and finance companies continued to CChhaannggee—— restructure their balance sheets by increasing Q4 Q1 Q2 Q3r Q4e their volume of long-term debt issuance. In addition, privately placed bond issues are esti- By type of debt: Total 70 76 73 88 94 mated to have been taken down in record Residential 53 59 55 66 71 Other1 17 17 18 22 23 amounts during the final months of the year. By type of holder: Although the $26 billion of public bond of- Commercial banks 10 11 9 10 12 ferings by domestic corporations in 1976 was Savings and loans 39 36 44 49 52 Mutual savings banks 3 3 3 4 5 only about 80 per cent of the record volume Life insurance cos 1 4 (2) 2 3 FNMA-GNMA 6 1 -3 -1 -1 in 1975, private placements of debt securities— Other1 11 21 20 24 23 most of which are for lower-rated industrial 1 Includes commercial and other nonresidential as well as concerns—are estimated to have increased about farm properties. 50 per cent to $15.3 billion in 1976. The step-up 2Less than $500 million. 3 Includes net changes in mortgage-backed securities in private placement activity, mostly in the form guaranteed by the Government National Mortgage Association, of bond acquisitions by major life insurance Federal Home Loan Mortgage Corporation, or Farmers Home companies, suggests that lower-rated corpora- Administration, some of which may have been purchased by the institutions shown separately. tions probably issued a record volume of new, e Estimated. rRevised. long-term debt in 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 Federal Reserve Bulletin • February 1977 4. Gross offerings of new security issues more than 1% per cent below its level at the In billions of dollars, seasonally adjusted annual rates end of 1975. New stock offerings continued to contract in 1975 1976 the last 3 months of 1976, due in large part TTyyppee ooff iissssuuee to reduced offerings by manufacturing and other Q4 Q1 Q2 Q3r Q4e industrial concerns. For the year as a whole, new common and preferred stock offerings are Corporate securities: total — 50 52 53 52 49 Bonds 39 38 41 42 42 estimated to have totaled $10.7 billion, slightly Stocks 11 14 12 10 7 less than the total for 1975. Major factors in- Foreign securities -10 12 10 10 10 State and local govt, bonds 26 33 35 ' 35 36 fluencing the reduced pace of offerings in the second half of the year were the continuing e Estimated. growth of internal sources of funds and the rRevised. over-all flatness in stock prices. Share prices moved up sharply early in the year, but then In addition to bond offerings by domestic fluctuated in a relatively narrow range through corporations, foreign bonds also continued to year-end as investors became increasingly conbe issued in large amounts in the U.S. market cerned about the probable future course of ecoduring the final quarter of 1976. Public offerings nomic activity. The Dow Jones industrial of foreign bonds were at a near record in the average closed the year at 1,005, compared with last 3 months of 1976, but private placements 852 a year earlier, but price/earnings ratios were below the pace registered earlier in the generally edged lower during the year as the year when Canadian provinces placed unusually growth in earnings per share outstripped market large issues with major institutional investors. price appreciation. For the year as a whole, about $9.8 billion of In municipal securities markets, State and foreign bonds were publicly offered or privately local governments continued to borrow heavily placed in U.S. capital markets; Canadian prov- in the long-term sector during the fourth quarter, inces and corporations accounted for more than as seasonally adjusted new bond offerings half of the total. equaled the previous record established in the With the volume of prime-rated industrial third quarter of 1975. State and local borrowing bond offerings remaining relatively light and the units took advantage of the lowest long-term continuing pause in economic activity contrib- tax-exempt yields in 2V2 years to refund prior uting to an appreciable decline in market in- high-cost issues, to reduce their dependence on terest rates, corporate bond yields during the the short-term market, and to accelerate offerfourth quarter declined to their lowest levels in ings originally scheduled for later dates. Innearly 3 years. The Federal Reserve index of creased participation by property-casualty inyields on newly issued Aaa-rated utility bonds surance companies, commercial banks, and moved below 8.00 per cent in early December, investment companies—including the newly a decline of almost V2 of a percentage point from authorized open-end municipal bond funds— the level of yields that had prevailed in late allowed the large volume of new securities to September. Bond yields continued to move be marketed with sharply lower yields. The lower throughout most of December and into Bond Buyer index of tax-exempt yields declined January, but then the indications of a re-emer- to 5.83 per cent at year-end 1976, a decline gence of more robust economic activity, to- of nearly two-thirds of a percentage point over gether with a build-up of the new issue calendar the quarter and IV2 per cent for the year. early in January, caused yields to move up again The Federal Government financed about oneand erase a large portion of their end-of-De- fourth of its sizable deficit during the final quarcember price gains. Nevertheless, the Board's ter of 1976 by running down its large end-ofindex of Aaa utility bond yields finished 1976 September cash balance. Net borrowing, at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q4 1976 115 5. Federal Government borrowing and cash balance Quarterly totals, in billions of dollars, not seasonally adjusted 1975 1976 IItteemm Q3 Q4 Qi Q2 Q3 Q4 Treasury financing: Budget surplus, or deficit -18.5 -26.8 -22.7 2.2 -12.7 -22.8 Off-budget deficit1 -.8 -2.4 -3.8 -.7 -2.0 .4 Net cash borrowings, or repayments (—) 23.5 25.9 24.1 9.4 18.0 17.4 Other means of financing2 -1.1 1.2 2.0 -4.0 -.7 -.8 Change in cash balance 2.9 -2.1 -.4 6.8 2.6 -5.7 Federally sponsored credit agencies, net cash borrowings8 .. .8 1.8 .3 .5 1.7 .3 'Includes outlays of the Export-Import Bank, Pension Benefit Guaranty Corporation, Postal Service Fund, Rural Electrification and Telephone Revolving Fund, Rural Telephone Bank, Housing for the Elderly or Handicapped Fund, and Federal Financing Bank. 2Checks issued less checks paid, accrued items and other transactions. 'Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal intermediate credit banks, banks for cooperatives, Federal National Mortgage Association (including discount notes and securities guaranteed by the Government National Mortgage Association), and farm credit banks. $17.4 billion, was little changed from the level of 1976, while its holdings of bills declined by of the third quarter. The U.S. Treasury contin- almost $900 million. For the year as a whole, ued to pursue the objective of lengthening the the System's securities portfolio increased $9.8 maturity structure of its marketable debt, al- billion, with about two-thirds of this amount though somewhat less aggressively than during accounted for by a rise in outright holdings of the preceding two quarters; it raised only $2.5 securities. Acquisitions of Treasury coupon sebillion of net new money with Treasury bills curities accounted for about 85 per cent of the compared with $11.1 billion of coupon issues. net outright purchases, while the System's bill Sales of savings bonds, State and local govern- holdings increased more than $850 million. The ment series obligations, and nonmarketable increase in the System's securities portfolio foreign series issues accounted for the remaining principally served to offset increases in currency $3.8 billion of the Treasury's net cash borrow- outstanding and Treasury balances held with the ings. Federal Reserve; the System's member bank The Federal Reserve System purchased about reserve balances posted a modest decline when $1.3 billion of U.S. Treasury coupon issues and measured from year-end 1975 to year-end Federal agency securities during the final quarter 1976. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 Statements to Congress Statement by Stephen S. Gardner, Vice Chair- uninformed would not expect the banking sysman, Board of Governors of the Federal Re- tem to be subjected to the financial pressures serve System, before the Commerce, Consumer, of an historic recession following immediately and Monetary Affairs Subcommittee of the after a severe period of inflation. Banks, how- Committee on Government Operations and the ever, were generally able to cope with these Financial Institutions Supervision, Regulation extraordinary problems. And there are no conand Insurance Subcommittee of the Committee clusions in the GAO study that suggest we do on Banking, Finance, and Urban Affairs, U.S. not still have a viable and sound banking in- House of Representatives, February 2, 1977. dustry. Federal oversight of banking and the per- Mr. Chairman, members of the committees. formance of the supervisory agencies aided in These introductory remarks will be brief. The the achievement of this result. In addition to General Accounting Office (GAO) report on supervising banks and other depositary institu- Federal bank supervision already contains the tions, Federal and State experts annually examcomments of the agencies. I would like to move ine banking and thrift institutions. No other on to an evaluation of major findings in the private industry is subject to such detailed Fedstudy. eral and State financial reviews. The experience The data and recommendations in the report of decades, through periods of changing ecoviewed in the perspective of the entire U.S. nomic conditions, has gone into the evolution banking system confirm the judgment that the of this process. The system, which was essenindustry is sound; that it has weathered the worst tially completed and enacted by the Congress economic conditions since the 1930's; that, as in the 1930's, has served the country well. a result of this experience, some additional Let me substantiate this. The GAO study supervisory powers to control abuses are de- directs considerable attention to banking probsirable; that formal coordination between agen- lems and "problem banks." Relatively few cies would be helpful; that the agencies them- banks, less than 5 per cent of the 14,000 banks selves have begun many new programs to refine in the United States, have been on the "problem examination techniques; and that no basic revi- lists" of the agencies at any one time. Moresion of the Federal structure of bank supervision over, as the data prepared by the GAO show, is required. the composition of these lists changes frequently The economy in 1974 and 1975 experienced as problems are identified by the regulators and the longest and most severe recession in the resolved by the institutions. Only a small perpost-World-War-II era. During this period, real centage of problem banks actually fail. In the GNP fell five consecutive quarters, industrial difficult period from 1970 through 1975, there production fell sharply, and unemployment were only 42 bank failures and most such instireached a post-World-War-II high of 8.9 per tutions were relatively small. In the majority of cent. The 14,000 commercial banks in our di- these cases, the supervisory agencies were able verse and regionalized banking system are the to arrange takeovers of the failed institutions by principal suppliers of credit to business. Their healthy banks. Few were liquidated, and this loan portfolios are a mirror image of America's permitted uninterrupted services to customers industrial and commercial economy. Only the and held losses to uninsured depositors to a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 117 minimal aggregate dollar amount. It seems un- Consumer Affairs is working closely with the necessary to compare the percentage and num- other agencies and has formed a task force to bers of bank failures to the many thousands of develop methods to enforce the newly enacted business liquidations and bankruptcies or to consumer credit laws. A cadre of examination compare the number of bank failures in the early specialists is being trained to concentrate on 1930's with the entire period since that time. inspection for compliance with consumer pro- I would also like to clarify the use of the tection statutes. Two schools on consumer reguterm "problem lists." The GAO study based lations were conducted in 1976 and four are some of its conclusions of supervisory effec- planned for 1977. In addition, examination tiveness on the length of time a given institution manuals that deal with the full array of consumer remained on such lists. The majority of banks regulations have recently been prepared. A new on these lists were institutions that had experi- examination report form dealing exclusively with enced some difficulties and had been identified this area has been developed and is expected to as needing more than the usual degree of super- be in use in the near future. In short, prior to the visory attention and monitoring. Supervisory GAO study, we had been moving ahead vigperformance should not be measured by the orously to insure implementation of these new number of institutions that the supervisor be- laws. lieves warrant close attention and/or the length The percentage of problem institutions among of time such attention is given. That may also bank holding companies is relatively as small be a measure of the supervisor's alertness. In ad- as the percentage of problem banks. In discussdition, it should be recognized that there are ing holding companies, it is again necessary to banking institutions—fortunately not many— seek perspectives. Despite the flurry of acquisithat are only marginally successful businesses tion activity in the early 1970's, most of the but that provide essential services to their com- major bank holding companies continue to be munities. If the supervisors believe they can primarily commercial banking operations with work closely with the bank and safely let it less than 5 per cent of their total assets reprecontinue, they may find it necessary to maintain senting nonbank activities. There are some close scrutiny for a number of years. We believe 1,800 bank holding companies, and they control this is a responsible policy that is in the public banks that hold more than two-thirds of the total interest. U.S. banking deposits. While there are dramatic The GAO study has resulted in considerable instances in which nonbank activities contribattention being focused on the number of vio- uted significantly to banking problems, there are lations of law uncovered by bank examiners. many more instances when this did not occur. The GAO study, however, quite correctly points This is due in large part to the tradition of sound out that many of these violations were of a banking that has been fostered across the dectechnical nature and had little or no impact on ades by our bank supervisory system. the financial soundness of the institutions. Fur- Following the 1970 amendments to the Bank ther, the very fact that examiners uncovered Holding Company Act, there were some insuch violations demonstrates the effectiveness stances of excessive expansion, and in early of the examination process. They found such 1974 the Board adopted a "go slow" policy violations, technical or otherwise, in reviewing concerning holding company and bank expantens of millions of transactions of the kind sion. This policy, which curbed expansion, was indigenous to the complex U.S. economy today. instituted because the Board believed that man- In the important area of consumer affairs, the agerial and financial resources in some instances Board of Governors of the Federal Reserve Sys- needed to be used first and foremost to tem has had the major responsibility for drafting strengthen existing operations of bank subsidicompanion regulations for the surging growth of aries, some of which had experienced sharply legislation that has taken place over the past 2 declining capital ratios. The Board took other years. The Board's newly organized Division of actions, such as the use of cautionary letters Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 Federal Reserve Bulletin • February 1977 concerning credit expansion. These efforts The GAO study also confirms the desirability helped to slow and discipline the accelerating of expanded supervisory legislation. The Board growth of the U.S. banks in the early 1970's. recommended such measures to the Congress The impact of the recession would have been as early as September 1975. The legislation more severe had these actions not been taken. proposed in H.R. 9743 and S. 2304 would have In October 1974 the Board's request for provided civil penalties for violations of a numcease-and-desist authority over bank holding ber of provisions of Federal law. It would have companies was granted. Since that time, the imposed new restrictions on a bank's transac- Board has significantly expanded its supervisory tions with insiders and placed the agencies in efforts and has concentrated primarily on bank a position to make more effective use of the holding companies exhibiting problems. The Financial Institutions Supervisory Act of 1966. on-site inspection program for bank holding These bills were not enacted, but the Board companies has been stepped up, and a refinement intends to propose similar measures again. of the System's computer-based monitoring ca- The principal recommendations in the GAO pabilities is under way. In the 26 months the study relate to refinement of examination tech- Board has had the authority, it has issued 12 niques, changes in the formats of examination cease-and-desist orders and 12 written agree- report forms, and improved communications ments against holding companies. with the banks. Most of the recommendations Far more important than the issuance of appear sound. In fact, they involve concepts that cease-and-desist orders have been the numerous have been extensively discussed and considered instances in which Federal Reserve personnel by bank supervisors, and some, in varying dehave advised holding companies to defer ex- grees, have been implemented. For example, pansionary programs. The withholding of super- the GAO recommends that the examiner meet visory approval needed by bank holding com- with the bank's board of directors after each panies that seek to engage in additional activities examination. The Federal Reserve has used a or, in some cases, to expand their present similar technique through its policy of insisting operation has proven to be a most effective that the board of directors of all State member supervisory tool. I am sorry that we do not have banks be informed of the examiners' findings. a precise record of the number of occasions In most examinations this is done by requesting when Federal Reserve personnel have advised the directors to approve the bank's reply to the holding companies against submitting expan- examiner's report. Many meetings with direcsionary proposals until bank deficiencies were tors have also been held. In addition, it is Board corrected. policy that such a meeting be required in those The GAO study makes a number of recom- instances when there has been a marked deterimendations to assure greater uniformity in oration in the condition of the bank. Reserve supervisory procedures among the agencies. Bank officials are routinely expected to request Senator Stevenson introduced the Federal Bank meetings with bank directors whenever they feel Examination Council Act (S. 3494) in May it is appropriate. 1976. Such a council would establish uniform The further evolution and improvement of the standards and procedures for Federal examina- supervisory system will be aided by congrestion of banks as well as uniform reporting sys- sional action on the legislative proposals that tems and joint schools for examiners. The Board are supported in the GAO study. There is apsupports such legislation. A proposal along propriate evidence in the GAO study that the those lines would accomplish most of the ob- supervisory agencies have adopted systems and jectives set forth in the GAO study's comments procedures to meet significant changes that have on uniform procedures. Even without such leg- occurred and will continue to occur in the inislation, the Board intends to continue to work dustry they oversee. We have a comprehensive toward more effective coordination with the system of Federal oversight of banks. It has been other agencies. improving, but it can be improved further as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 119 many of GAO's suggestions indicate. Never- actions contravene law or imperil the safety and theless, the present system has been well con- soundness of the bank. ceived, and, judged on the record of the industry In closing, I wish again to note that the U.S. it regulates, it has been successful. economy is in the process of recovering from I would also like to make an observation a prolonged and severe recession, which saw concerning the role of bank supervision. Bank the near collapse of the construction and housing examination and supervision should not only be industries. The commercial banking system has directed at securing compliance with laws and made progress in managing the loan problems regulations and assuring the safety and that have arisen from those hard-hit industries soundness of depositors' funds but supervisors and from other borrowers adversely affected by also should manage their responsibilities in the the sharp economic downturn. The experience broadest sense of the public interest, so that the with the problems encountered during this recommunity and the economy have competitive, cessionary period has increased the awareness vigorous, and sound banking units. A system of some bank managers as to the risk factors of bank regulation that goes beyond these goals in banking and improved their ability to assess imposes social costs and economic dangers. It and deal with such risks. It has also pointed is not the job of the supervisors to determine to the need for some additional legislation and whether specific loans or types of loans should for some improvements in supervisory techor should not be extended or even how a bank's niques. The Federal Reserve has taken steps to resources should be used except when such meet these needs. • Statement by Arthur F. Burns, Chairman, for several quarters, but a more rapid pace Board of Governors of the Federal Reserve resumed in 1963. Earlier, economic expansion System, before the Committee on Banking, Fi- appeared to falter in late 1951 and early 1952, nance, and Urban Affairs, U.S. House of Rep- and then picked up with some vigor. Looking resentatives, February 3, 1977. back still further to the business cycles before World War II, we find that periods of retarded I am pleased to meet once again with this growth and subsequent resurgence frequently distinguished committee to present the report of occurred during the longer phases of economic the Board of Governors of the Federal Reserve expansion. System on the condition of the national economy The improvement in the condition of the and the course of monetary policy. national economy over the past several months When I last met with you in July 1976, the is due in some measure to the impetus provided growth of economic activity had begun to slow by governmental policies. Monetary policy reperceptibly, after a year of brisk recovery. At mained accommodative throughout 1976. Inthat time, I noted that the balance of economic deed, open market operations by the Federal forces suggested an early return to stronger rates Reserve sought late last year to encourage of expansion in production and employment. somewhat more ample supplies of money and The favorable turn of events during the past credit. Also, the discount rate on loans to memseveral months indicates that our economy is, ber banks was reduced in November, and rein fact, emerging from the recent pause. serve requirements on demand deposits were Periods of retardation in economic growth, again lowered in December. By promoting some followed by a renewed upsurge of economic easing of conditions in the money and capital activity, have been a fairly common feature of markets at a time of business hesitation, these business-cycle expansions. In 1962, for ex- actions helped to bolster the state of business ample, the growth of output slowed markedly and consumer confidence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 Federal Reserve Bulletin • February 1977 Fiscal actions also became more stimulative but the rate of advance was much slower than during the latter half of 1976. Expenditures of in the summer and much slower also than the the Federal Government, as measured in the increase in final sales. This reduced pace of national income and product accounts, fell short inventory accumulation, along with strikes in of official projections during the first half of last some major industries, was responsible for a year. Later in the year, as a part of the earlier disappointing performance of physical output shortfall was made up, Federal expenditures during the final quarter of last year. But it set rose rather rapidly. the stage for a return to a more vigorous rate These facts deserve only passing notice. The of economic expansion by bringing sales and noteworthy feature of the recent pick-up in stocks into better balance. business activity is that it mainly resulted from Actually, the pace of orders and production the normal workings of self-corrective forces has already begun to quicken. New orders for within the private economy. Last summer, many durable goods began moving up in November manufacturers curtailed production of items for and rose sharply further in December. The outwhich inventories were rising too rapidly. Re- put of our Nation's factories, mines, and power tailers, in their turn, offered price concessions plants also rebounded sharply in November, as to consumers and increased their advertising in the depressing impact of major strikes abated; order to stimulate sales. Before long, consumers and another strong advance of production was began to respond energetically. Retail sales re- registered in December. gained strength in October and then moved up Conditions in labor markets were improving substantially further in the closing months of noticeably around year-end. Employment rose the year. briskly in December, and unemployment de- Homebuilding activity, which has been in an clined across a range of industries. The reducupward trend since early 1975, also rose signif- tion in unemployment among heads of houseicantly late last year in response to improving holds was particularly encouraging. A strengthconditions in the mortgage and real estate mar- ening of demand for labor has also been evident kets. The strong underlying demand for hous- in the recent declining rate of layoffs and the ing—especially in sections of the country ex- rising pace of new hires at manufacturing esperiencing rapid population growth—led to a tablishments. With employment growing more rapid increase in sales of new and existing rapidly, the volume of personal income during homes and to a rising level of new starts for the fourth quarter rose at an annual rate of nearly both single-family and apartment dwellings. 11 per cent—half again as fast as in the previous Total housing starts during the last 3 months 3-month period. of 1976 advanced nearly 15 per cent from the Activity in the current quarter is being adpreceding quarter and reached the highest level versely affected by plant shutdowns in many in more than 3 years. parts of our country as a result of shortages of Thus, despite some weakening in the pace natural gas and other fuels. The difficulties imof business investment in fixed capital, the posed on many American families by the bitterly physical volume of final purchases—that is, all cold winter will be long remembered, but I do purchases of goods and services except for ad- not expect large or lasting effects on the perditions to inventories—rose at an annual rate formance of the economy during 1977. of almost 5 per cent in the fourth quarter. This Thus, further good gains in economic activity was the most rapid advance of any quarter seem very likely during the course of this year. during 1976. The strengthening of final pur- Consumers are now spending more freely—the chases enabled business firms across the Nation percentage of disposable personal income spent to work off a good part of the excess inventories on goods and services during the fourth quarter that had accumulated over the preceding was the highest in several years. Except for months. True, the aggregate volume of business areas where the weather has been unfavorable, inventories rose further in the fourth quarter, retail sales during January appear to have con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 121 tinued at a satisfactory pace. Moreover, con- when the pace of expansion slowed, and a few sumers have built up their stock of liquid assets firms postponed new projects while some others substantially during the past year, and they have stretched out their capital expenditure programs. also been cautious in adding to their debts. The These attitudes are now changing. Confidence over-all financial condition of the household has been strengthened by President Carter's firm sector has thus improved, and this will contrib- statement rejecting wage and price controls, as ute to stronger consumer markets in the months well as by the recent trend of business developahead. ments . Prospects for residential construction are also I feel reasonably confident that 1977 will be bright. Construction of single-family homes has a good year for the Nation's economy, but this already rebounded sharply, and production of is no time for complacency. Much remains to multifamily units is now gradually recovering be accomplished. Although the proportion of from overbuilding and the other problems that our adult population holding jobs has been rishad been troubling this sector. Mortgage credit ing, more than 7 million people are still out is in ample supply. Commitments by thrift insti- of work, and our labor force is growing very tutions for home mortgage loans are at record rapidly. Last year women entered the labor force levels; the inflow of savings to these institutions in exceptionally large numbers, and the total is continuing at a high rate; and mortgage interest number of individuals at work or seeking emrates are gradually declining. Housing starts ployment rose on an unprecedented scale—by should therefore continue to move up at a good 2.8 million. pace. Although unemployment is widespread, the Our export trades, too, can be expected to inflation from which our country has also been improve during 1977. Many foreign economies suffering has not come to an end. Despite heartexperienced a retardation of growth last year just ening progress over the past 2 years, prices are as we did, and they too are likely to enjoy a still rising at a troublesome rate. In 1976 conpick-up in the tempo of activity relatively soon. sumer prices on the average rose about 5 per The demand for our exports should therefore cent—down from 7 per cent in 1975 and 12 increase. Of course, our imports will also be per cent in 1974. But the American people are increasing as the domestic economy continues not content to live with a 5 per cent rate of to expand, so that our net trade balance may inflation, nor should they be. If the general price not improve appreciably during the course of level were to continue rising at a rate of 5 per this year. The growth of imports, however, is cent a year, the value of a family's savings—or not expected to be as rapid as it was in 1976, the purchasing power of a retiree's pension and net income from services should increase check—would be cut in half in just 15 years. further. Thus, our deficit on current account Worse still, if a 5 per cent rate of price advance with other countries will probably be rather were to be accepted complacently by Governmoderate in 1977. ment, inflationary expectations would intensify, Business spending should contribute substan- and the actual rate of price increases would then tially to economic expansion this year. Inven- almost certainly move toward higher levels. tory investment may proceed at a cautious pace Unfortunately, it will be difficult to achieve for a little while longer; but with consumer a significant reduction in the rate of inflation purchases continuing to grow satisfactorily, in the immediate future. Wholesale prices of business firms will soon have to add substan- industrial commodities rose during the past half tially to their inventories. year at an annual rate of over 9 per cent. At Outlays for plant and equipment should also the consumer level, prices of heating fuels and strengthen as 1977 unfolds. During the course gasoline have of late been rising rapidly again. of this recovery, businessmen have been plan- As the pace of economic activity quickens in ning for the future with considerable caution. coming months, pressures could develop for Additional hesitancy developed last summer larger and more widespread increases in wages Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Federal Reserve Bulletin • February 1977 and prices than we have recently experienced. and thereby create other, and perhaps even The outlook for prices is thus a worrisome greater, economic problems. It should be abunmatter, and it must be given very careful atten- dantly clear by now that a healthy and prospertion. For a durable prosperity will not be ous economy can be achieved only by pursuing achieved in our country until we gain better policies that are consistent with steady progress control of the inflationary forces that have dam- toward restoration of general price stability. aged our economy for more than a decade. That principle is continuing to guide Federal There are several other longer-range problems Reserve policy. Over the past year, growth rates to which public policy must attend. During the of the major monetary aggregates have not been past decade, increases in the output per manhour excessive, and our projected ranges for the in the private sector have averaged less than 2 future have been gradually reduced. This course per cent a year—a substantial decline from the of action, by dampening inflationary expecta- 3 per cent rate achieved during the preceding tions, has helped to restore public confidence— decade. There are numerous reasons for this both here and abroad—in the value of our cursorry performance. For one thing, the work rency and in the future of our economy. habits of the American people are not what they Mainly as a result of this lessening of inflaonce were: absenteeism is a growing problem tionary fears, interest rates have not increased for many firms, and there are other manifesta- as they usually do in a period of cyclical expantions of less dedication by workers. Another sion. In fact, the level of interest rates on shortreason is that the expansion and modernization and long-term securities is appreciably lower of our industrial plant has been inadequate. Last now than it was at the beginning of economic year, our country devoted less than 10 per cent recovery in 1975. of its total output of goods and services to the Thus, the monetary policy we have pursued production of new plant and equipment. Other has fostered conditions in financial markets that industrialized nations have been committing a have aided the process of economic recovery. much larger fraction of their resources to capital Supplies of credit have been ample. In fact, the formation than we—and they have also been volume of funds raised by the nonfinancial secexperiencing faster economic growth. tors of the economy has increased considerably Public policy must also come to grips with faster than the dollar value of the gross national the need to revitalize our central cities, with the product. Meanwhile, the financial condition of need to reform a welfare system that has become business firms has improved materially; and chaotic and inordinately costly, and with the financial institutions have rebuilt their liquidity, need to strengthen our national security by re- so that they will be able to accommodate a gaining substantial independence in the energy substantial rise of credit demands in the months area. Energy consumption is rising rapidly ahead. again, and the recent very cold weather has The growth rates of major monetary aggrereminded us poignantly of the critical role gates have remained relatively close to those we played by supplies of natural gas and petroleum had expected earlier. In the year ended in the in our economy. The shortage of natural gas fourth quarter of 1976, M-l—that is, the money is now receiving constructive attention from the stock defined narrowly so as to include only Congress. But, unfortunately, we are still at the currency and demand deposits—rose 5.4 per mercy of a few oil-exporting countries; in fact, cent, somewhat below the midpoint of the range our dependence on foreign sources of oil is projected a year ago. In contrast, M-2—which substantially larger now than at the time of the also includes savings and consumer-type time 1973 oil embargo. deposits at commercial banks—increased 10.9 We will not solve this or our other longer- per cent, just above the upper end of its proterm problems simply by loosening the Federal jected range. Growth of M-3—a still broader purse strings and letting the money roll out. That measure of money that encompasses, besides course would sooner or later accelerate inflation the components of M-2, the deposits at savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 123 banks, savings and loan associations, and credit hold an increasing fraction of its transactions unions—amounted to 12.8 per cent, and also balances in interest-bearing form. exceeded its range by a small margin. For example, the so-called negotiable order There was an unusually wide gap during the of withdrawal (NOW) accounts have grown past year between the growth rates of M-l and steadily in the New England States, and they the broader monetary aggregates. This stemmed serve effectively as checking accounts for many in large measure from changes in financial mar- individuals. Smaller businesses and State and kets that have served to reduce reliance on local governments nowadays hold a significant demand deposits for handling monetary trans- part of their cash balances in the form of savings actions. Recent financial innovations have im- accounts at commercial banks—which only reportant implications for the conduct of monetary cently were granted authority to accept such policy, and it may therefore be worthwhile to deposits. Moreover, many individuals are comment on them. learning to use savings accounts for transactions Elements of the innovational process cur- purposes by making payments through thirdrently under way in financial markets can be party transfer arrangements, or by telephonic traced as far back as the early 1950's. When transfers of funds from savings to demand deinterest rates rose during the cyclical upswing posits to cover newly written checks. Others are of 1952 and 1953, some large corporations using money market mutual funds for the same began to invest their spare cash in Treasury purpose. And still others have worked out overbills. In subsequent years, more and more firms draft arrangements with their banks to reduce increased their efforts to develop better systems the amount of funds held in demand deposits of cash management, so as to minimize holdings bearing no interest. of demand deposits which—under existing In projecting its monetary growth ranges, the law—bear no interest. In time, individuals Federal Open Market Committee has had to began to emulate business practices—by shift- keep these developments of financial technology ing idle funds into liquid market securities or carefully in mind because they affect the rates savings deposits. of growth of monetary aggregates that are In the late 1950's and early 1960's, the inno- needed to sustain economic expansion. At its vational process was accelerated by more ag- meeting about 2 weeks ago, the Committee gressive efforts of commercial banks, especially adopted ranges for the year ending in the fourth the larger institutions, to bid for loanable funds. quarter of 1977 that differ only a little from Major efforts were made to attract the highly those announced last November. For M-l, the interest-sensitive funds of corporations and previous range of 4Vz to 6V2 per cent has been other large depositors. For example, banks in retained. For M-2 and M-3, the lower boundathe money market centers began in 1961 to sell ries of the ranges were reduced by a half of large-denomination certificates of deposit on a a percentage point. Consequently, the new significant scale; and a secondary market, which range is 7 to 10 per cent for M-2 and SV2 to soon developed for these instruments, enhanced IIV2 per cent for M-3. their acceptability. The downward adjustment of the lower With inflation pushing interest rates to ex- boundary of the ranges for M-2 and M-3 largely traordinary heights during the past decade, both reflects technical considerations. By historical business firms and individuals have intensified standards, growth of the broader measures of their search for ways to minimize holdings of money in 1976 was relatively rapid in relation non-interest-bearing assets. Financial institu- to growth of M-l. Over the course of last year, tions, meanwhile, have been competing actively M-l rose 5.4 per cent, very close to the 5.6 to meet the public's needs. As a consequence, per cent average of the preceding 10 years. But the innovational process has accelerated. An M-2 increased 10.9 per cent in 1976, in contrast array of new financial instruments and practices to an average yearly rise of 8.3 per cent over has developed that has enabled the public to the preceding decade; and M-3 increased 12.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin • February 1977 per cent, in contrast to an average annual in- Let me also take this opportunity to state once crease of 8.8 per cent in the preceding 10 years. again that substantial further reduction in growth It seems likely that growth rates of these rates of all the major monetary aggregates will broader aggregates will move back toward his- be needed over the next few years if our Nation torical norms in 1977. Last year the growth of is to succeed in halting inflation. The long-run M-2 and M-3 was influenced by shifts of exist- growth rate of physical production at full eming stocks of financial assets from market se- ployment has declined in recent years and is curities to time and savings deposits. This ad- probably around 3V2 per cent at present. Judging justment of assets may not go much further. by the experience of the past two or three Moreover, some banks and thrift institutions, decades, a stable price level would require a having experienced larger inflows of funds than rate of expansion in M-l that over the long run they can readily invest, have of late taken steps is well below the growth rate of total output. to slow deposit inflows—by reducing the inter- Growth rates of the broader monetary aggreest rate offered on savings certificates and de- gates consistent with general price stability posits, or by curtailing promotional activity, or might be somewhat higher than long-term in other ways. These actions should tend to growth of output; but in any event they would moderate the growth of M-2 and M-3 without have to be far below the rates experienced in impairing the flow of funds for homebuilding. recent years. Besides these technical considerations, the Our Nation needs to make progress during adjustment of the lower limit of the projected 1977 in creating more jobs and in expanding ranges for M-2 and M-3 reflects the Federal our industrial capacity. We at the Federal Re- Reserve's firm intention to continue moving serve fully recognize this fact, as our recent gradually toward rates of monetary expansion policy actions have made clear. We are also that over the longer run are consistent with mindful of the need to make further progress general price stability. The step we have taken in the battle against inflation. Highly expanon this occasion is a very small one, but it may sionist policies that seek to achieve striking still bolster the confidence of the public in the gains in economic activity with little or no commitment of the Federal Reserve to do what regard to their inflationary consequences are apt it can to unwind the inflation from which our to fail. Once inflationary expectations are ineconomy continues to suffer. flamed, conditions in financial markets will de- The projected range for M-1 in the year ahead teriorate, and the confidence of businessmen and reflects our assumption that the financial inno- consumers will be eroded. Hopes for a sustained vations now in train will continue to reduce economic recovery would then be undermined. materially the proportion of transactions bal- Public policy must find a middle ground. ances that are held in the form of currency and Deficits in the Federal budget must be scrupudemand deposits. If our assumption is correct, lously watched and gradually reduced. Growth the range we have projected for M-l, together in supplies of money and credit must also be with the ranges projected for M-2 and M-3, brought down gradually to rates consistent with should be adequate to finance a faster rate of general price stability. growth of physical production in 1977 than we Our Nation has paid a heavy price for perexperienced in 1976. I must note, however, as mitting inflation to get out of control in the late I have repeatedly in the past, that profound 1960's and early 1970's. We must not lose sight uncertainties surround the relationships among of that fact. The substantial progress we have the various monetary aggregates and between made in slowing inflation since 1974 has helped rates of monetary expansion and economic per- to heal our economy. Gradual restoration of formance. We shall therefore monitor emerging price stability is within our means. Unless we developments closely and stand ready to modify stay on that course, the lasting prosperity to our projected growth ranges as circumstances which the American people aspire will continue may dictate. to elude us. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 125 Statement by Philip C. Jackson, Member, governs the credit sale of goods other than motor Board of Governors of the Federal Reserve vehicles, which fall under the Motor Vehicle System, before the Consumer Affairs Subcom- Retail Installment Sales Act. There are six sepmittee of the Committee on Banking, Finance, arate, but partially overlapping, laws in Illinois and Urban Affairs, U.S. House of Repre- governing consumer loans. Each of these difsentatives, February 9, 1977. ferent laws tends to have its own set of special requirements for contract provisions, notices, Mr. Chairman, I appreciate this opportunity to administration, advertising, insurance, discloparticipate on behalf of the Board of Governors sure, and related matters. Thus, even without of the Federal Reserve System in your subcom- Federal legislation, the statutory situation was mittee's hearings on the current status of con- complex. sumer credit laws. While it supports the basic The Federal Government entered the conpublic purpose of consumer credit legislation, sumer credit field initially through various credit the Board has become increasingly concerned programs concerning home mortgage credit, inabout the degree of complexity and overlap of surance or guaranties, and farm credit. The existing laws and hopes the situation can be Board of Governors first began to regulate conclarified and simplified. It is small wonder that sumer credit practices in 1968 with the passage the members of the Congress and of the Board of the Federal Consumer Credit Protection Act, have received a substantial quantity of com- commonly known as Truth in Lending. The Act plaints, particularly from small creditors, stating directed the Board to write implementing reguthat they have difficulty understanding and lations, which became Regulation Z. complying with all of the laws. Some responsi- Since 1968 the Congress has passed seven ble observers are now questioning whether the major amendments to the Consumer Credit Proexisting regulatory framework is providing ben- tection Act, as well as three separate disclosure efits to the public commensurate to its costs. statutes involving credit terms. Significantly, 8 To give perspective to the issues we will of these statutory changes have been enacted raise, I would like first to provide a brief review since October 1974—a period of less than 28 of consumer credit legislation in our country. months—and 9 of the 10 laws have required I will also report generally on the Board's ex- implementing regulations. perience to date as the principal agency charged Specifically, the statutory changes include in with writing regulations to implement Federal chronological order: legislation in this field. Finally, I would like 1. The Fair Credit Reporting Act (1970). to suggest some matters your committee may 2. The Credit Card Amendments to Truth in want to consider. Lending (1970). With rare exceptions, consumer credit regu- 3. Technical Amendments to Truth in Lendlatory legislation prior to 1968 was enacted by ing (1974). the various States rather than the Federal Gov- 4. The Fair Credit Billing Act (1974). ernment. Even then the laws were complicated. 5. The Equal Credit Opportunity Act (1974). Most States have long had laws setting a ceiling 6. The Real Estate Settlement Procedures on the price for loans to consumers. To this Act (1974). basic legislation, most States over time have 7. The Federal Trade Commission Improveadded a multiple layering of special conditions ment Act (1975). and rules. 8. The Home Mortgage Disclosure Act Your own home State of Illinois, Mr. Chair- (1976). man, is a typical example. I am told that vir- 9. The Consumer Leasing Act (1976). tually no consumer credit transactions take place 10. Amendments to the Equal Credit Opporunder the Illinois basic interest ceiling law. tunity Act (1976). Instead, they occur under many different laws. At the direction of the Congress, the Federal For example, the Retail Installment Sales Act Reserve has been involved in developing written Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 Federal Reserve Bulletin • February 1977 regulations under all but one of the Acts. The should a State law be pre-empted by a Federal Board also issues official interpretations of its law? When should transactions within a State regulations. Recently, the Congress empowered be exempted from a Federal law? Further conthe Board to authorize official staff interpreta- fusion arises from the fact that the various tions upon which creditors could rely without statutes set different standards applicable to diffear of civil liability, and the staff has begun ferent areas of law. In addition, the problem issuing these interpretations. In addition, our is more complex because the subject matter and staff has historically answered informal inquiries purposes of these statutes differ widely. Let me about the regulations. Although these staff in- give you some examples of the pre-empterpretations do not have the force and effect tion-exemption problem. of law, most conscientious creditors react to The original Truth in Lending Act set a rather them as if they did. Finally, the courts have simple standard under which those State disclobeen offering further interpretations of the Acts, sure laws found to be "inconsistent" with the regulations, and interpretations. At this time, Federal law were pre-empted. Likewise, the there are several hundred reported decisions on Truth in Lending standard for determining when Truth in Lending alone. a State should be exempt from Chapter II of In addition to implementing relatively spe- the Truth in Lending Act is that the State law cific statutory provisions, the Federal Trade must be "substantially similar" to the Federal Commission and the Board have been directed law. by the Congress to issue rules and regulations The Fair Credit Billing Act carried the standdefining and outlawing unfair or deceptive trade ard for Federal pre-emption of State law one practices under the 1975 FTC Improvement Act. step further. As under Truth in Lending, a Currently pending under that authority are three State's law is pre-empted to the extent that it detailed trade regulation rules proposed by the is found inconsistent. However, the Board may Commission: the Creditor Practices Rule, deal- find that the State law is not inconsistent to the ing with collateral and collection practices; the extent that it provides greater protection to the creditor amendment to the Rule Preserving consumer. This additional step has caused con- Consumers' Claims and Defenses (the so-called siderable conceptual difficulty. How should the Holder Rule); and the Used Motor Vehicle laws be compared—in their entireties or section Rule. by section? Defining and applying the standard In summary, we now have a system that raises still more problems. For example, New layers State laws, State regulations, Federal York requires that a billing inquiry be sent by laws and regulations, staff interpretations, and registered mail; the Federal law does not. It State and Federal court decisions. could be argued that the New York law is more If one had the advantage of knowing in ad- protective since it provides for better proof that vance that the governmental control of con- the customer sent the inquiry. Alternatively, one sumer credit would develop in the form I have could argue that it is less protective and thus outlined, two conclusions could readily have inconsistent because of the additional burden been drawn. First, State and Federal law would placed upon the consumer to register the letter not fit very well together and, therefore, would and pay the increased postage costs. produce substantial conflicts and difficulties. The Consumer Leasing Act adds a further The second would be that the entire consumer complication. Under it, to be protected from credit regulation framework would be complex pre-emption, an otherwise inconsistent State law and difficult to understand, administer, and must provide not only greater protection but also comply with. greater benefit to the consumer. The relationship between State and Federal While the pre-emption-exemption standards law is complicated by provisions in many of under the Equal Credit Opportunity Act (ECOA) the Acts the Board administers relating to pre- are similar to the Truth in Lending Act, the emption or exemption of State law. When subject matter of the ECOA—adverse discrim- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 127 ination—is so different as to make the experi- loan officer of a small bank—charged with the ence gained under Truth in Lending of limited varied responsibilities of making instalment value to the Board. Determining what is incon- loans, buying dealer paper, overseeing a creditsistent may not be too difficult. For example, card operation, making home mortgage loans, Ohio prohibits discrimination on the basis of extending construction credit, arranging for age. The Federal law permits the use of age credit insurance, and so forth—is hard pressed in a credit-scoring system so long as the age to comply. of an elderly applicant is not assigned a negative The Board of Governors is taking several factor. The Ohio law is in direct conflict and actions in an effort to be responsive to some thus is pre-empted as of March 23, 1977. of the obvious needs that I have outlined. We Determining what is more protective in the have established a Consumer Advisory Council context of an antidiscrimination law is much in accordance with the provisions of the 1976 trickier. Several years ago civil right groups statute. The Council met in November, with the insisted that questions as to an applicant's race next meeting scheduled for March 10. These should not be permitted. Today, they take the meetings are open to the public. Membership position that not only should race be asked but of the Council is broadly representative of the also the information should be recorded for interests of consumers and creditors alike. The enforcement purposes. Which approach is more Council is establishing study groups that plan protective? Similar questions arise with respect to make on-site investigations of large and small to recordkeeping as to sex, marital status, and creditors to better understand the ramifications age. of consumer credit laws regarding the credit- Other State statutes may be affected as well. granting process. For example, in Alabama a person gains legal The Board also has contracted with the Surcapacity to contract at the age of 21—unless vey Research Center of the University of Michthat person is married, in which case the legal igan to undertake a special consumer survey age is 18. Can a creditor take that statute into intended to provide much needed information account in granting credit? If the creditor does on the consumer's relationship to credit. Several so, is the creditor discriminating on the basis other Federal agencies are joining us in this of marital status? If that is illegal discrim- survey effort. It is our hope that the survey will ination, then the Alabama law may be pre- enable us to understand better the various cirempted. But if the Alabama statute is pre- cumstances in which consumers use credit, to empted, does that mean that an unmarried 18- evaluate consumers' perceptions of and interest year-old can enter into a binding contract or that in the benefits that consumer credit laws proa married 18-year-old cannot? vide, and to gain insight as to how regulations The intricacies of the State-Federal relation- can be more responsive to the consumer's ship is not the only source of complexity. The needs. economic practices and customs of every facet In order to assist creditors, particularly small of American society are more varied and diver- ones, in their efforts at compliance, the Board gent than any law or regulation can anticipate. is expanding its issuance of approved forms, A rule designed to meet one need often produces which may be used by creditors without fear unexpected consequences in another situation. of violating technical provisions of the statutes The extensive regulations that result are a direct or regulations. We are also continuing to issue product of the dynamic credit system to which binding staff interpretations when necessary. they apply. Under the statute, which your committee au- Given these dynamics and this complexity, thorized, creditors relying on these staff intergiven the sheer quantity of State and Federal pretations are protected from the penalties of statutes, regulations, interpretations, and judi- the law should the courts determine that such cial decisions, and given the fact that they fit interpretations are invalid. together so badly, it is not surprising that the Members of the Board's staff are engaged in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 Federal Reserve Bulletin • February 1977 a review of present consumer credit regulations Federal Government in consumer credit protecfor the purpose of developing proposals to make tion statutes. Such a determination should cover them easier to understand and comply with. not only which law might govern or which The Board recently promulgated a new Reg- might be pre-emptive of the other but also such ulation AA to encourage consumers to inform questions as which supervisor—State or Fedthe System of their credit problems and to eral—is charged with policing organizations provide a better basis for action on the part of operating within the States. As the larger credithe Board in response to these consumer com- tors conduct their affairs over wide geographical plaints. areas, there is more urgent need to understand Finally, as the supervisor for State member which benefits could accrue to the public from banks, we are substantially expanding our com- uniformity of regulations and procedures. Such pliance and enforcement activities under the benefits would then need to be weighed against various consumer credit statutes. Our experi- the historic rights of the citizens of the several ence in this process will enable us to better States to pass laws uniquely applicable to those understand the impact of our regulations issued who reside therein. under consumer credit statutes. The effort to simplify consumer credit laws The Board of Governors made a number of and regulations is complex in and of itself. specific legislative recommendations in its 1975 While the need for such action warrants your year-end report. Among these was a suggestion committee's consideration, it will not be easy that the Congress re-examine the Truth in to accomplish. Even some creditors would argue Lending Act's provisions on the issuance of against any attempt to simplify. Some feel that credit cards and on cardholder liability in the they have now mastered the complexities of the event of unauthorized use in light of recent regulations and that any attempts to simplify developments in the electronic funds transfer will result only in a new set of requirements field. that will require substantial retraining and pro- Specifically, the Board recommended that the duce another period of uncertainty. Congress extend the $50 limit on consumer There are many who feel that the complexity liability to noncredit funds transfer cards. In of the Truth in Lending statute is a byproduct addition, the Board suggested that the Congress of the penalties that the Act imposes. The origireconsider the need for the existing ban on the nal concept of private enforcement of this statute unsolicited issuance of credit cards. In the has obvious imperfections. We believe there Board's view, the present limitation on liability would be substantial potential for simplification has itself adequately curtailed the profligate is- if the penalties provided as a result of a private suance of credit cards prevalent in the mid- suit or class action were restricted to instances 1960's, while the Act's provisions restricting of substantive violations that impair the concredit card issuance have lessened competition sumer's capacity to comparison-shop for credit. in the credit card field. We sincerely hope that Technical violations of the statute might well your committee may find time to consider these be limited to administrative supervisory enproposals, as well as the other recommendations forcement. in the Board's report. Mr. Chairman, I hope these comments have In our view, substantial benefits to the public been responsive to the committee's needs and could be realized if there were a determination I will be pleased to respond to any questions as to the proper role of the States versus the you may have. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

129 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON DECEMBER 20-21, 1976 1. Domestic Policy Directive The information reviewed at this meeting suggested that growth in real output of goods and services in the fourth quarter had remained close to the pace in the third quarter—now indicated by revised estimates of the Commerce Department to have been at an annual rate of 3.8 per cent, compared with 4.5 per cent in the second quarter. The rise in average prices—as measured by the fixed-weighted index for gross domestic business product—appeared to have been somewhat faster than in the third quarter, when it had slowed to an annual rate of 4.3 per cent. A staff analysis suggested that final purchases of goods and services in real terms were expanding at a higher rate in the fourth quarter than in the third—reflecting a substantial increase in growth of personal consumption expenditures and an acceleration of the rise in residential construction, offset only in part by a slowing of the expansion in business fixed investment. It also appeared that the strengthening in final demands was being accompanied by a substantial reduction in the rate of inventory accumulation. The staff projections suggested that the rate of inventory accumulation would not decline further in the first quarter of 1977 and that, consequently, growth in real output of goods and services would pick up. Projections of economic activity for the rest of 1977, it was noted, depended on the assumptions made with respect to the economic policies that would be pursued by the new administration taking office on January 20. Currently, the question of the need for, and the character of, new fiscal stimulus was being considered by the incoming administration. Retail sales now appeared to be much stronger than they had seemed to be a month ago. Sales were estimated to have risen considerably more in October than had been indicated earlier, and the advance estimate for November suggested a large further Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 Federal Reserve Bulletin • February 1977 increase to a level appreciably higher than the average for the third quarter. Over the October-November period gains in sales were particularly strong at general merchandise stores and at furniture and appliance stores. In late November sales of new domestic automobiles began to recover, after having been reduced earlier by the strike-induced limitation of supplies; for November as a whole, sales were at an annual rate of 8.0 million units, compared with 7.6 million in October and an average of 8.7 million in the first three quarters of 1976. Sales of imported models fell in November from an advanced level in the preceding 2 months. The index of industrial production rose by an estimated 1.2 per cent in November, more than recovering the losses in the preceding 2 months that had been caused in part by strikes in the automobile and farm machinery industries. More than half of the November increase resulted from the termination of the strikes, although moderate gains in output were widespread among other industries. At 132 per cent of the 1967 average in November, the total index had recovered to the pre-recession high reached in June 1974. Capacity utilization in the materials-producing industries was 81 per cent in November, compared with about 90 per cent in the second quarter of 1974. In November employment in manufacturing recovered from the effects of strikes, and employment also expanded in the service sectors, in construction, and in mining. Adjusted for the effects of strikes, however, the increase in over-all payroll employment in nonfarm establishments was moderate. As measured by the household survey, total employment rose considerably after 2 months of decline; however, the civilian labor force—which had changed little over the preceding 3 months—rose even more, and the unemployment rate increased from 7.9 to 8.1 per cent. The advance in personal income—which had been sizable in October, in part because of an increase in pay scales in the Federal Government—was even greater in November. The gain in wage and salary disbursements was especially large in manufacturing, reflecting to a considerable extent the return to work after the major strikes were over, and it continued to be sizable in other private activities. Indicators of residential construction activity had remained strong in recent months. Residential building permits rose in November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 131 Although private housing starts declined further in November, the figure for October had been revised to show a somewhat smaller decrease than that indicated a month earlier; as a result, the October-November level of starts—at an annual rate of 1.7 million units—was about 10 per cent above the third-quarter average. In October, moreover, the dollar volume of mortgage commitments outstanding at savings and loan associations had continued to advance, again reaching a record. On the other hand, the latest data suggested a weakening in the outlook for business plant and equipment expenditures. Although the most recent Department of Commerce survey of business plans, conducted in late October and November, indicated that a strong gain in spending was being planned for the current quarter, it suggested that the increases planned for the first two quarters of 1977 would be no greater than the rise in prices. Other data suggested that in the current quarter actual spending would fall short of that planned, but that the shortfall might be made up later on. New orders for nondefense capital goods rose further in October. However, the rate of increase from June to October was appreciably below that during the first 6 months of the year. Backlogs of unfilled orders for such goods continued to change little in October. Construction contracts for commercial and industrial buildings—measured in terms of floor space—rose after having declined in September; the October level was close to the average for both the second and the third quarters. The index of average hourly earnings for private nonfarm production workers advanced at an annual rate of about 7 per cent in November, somewhat more than in the preceding 2 months. However, over the 3-month and 6-month periods ending in November the index rose at annual rates of about 6 per cent and 6V2 per cent, respectively, compared with a rise of almost 8 per cent over the 12 months ending in December 1975. The moderation in the rate of increase since 1975 had occurred in all major industries. The rise in wholesale prices of industrial commodities, which had accelerated around midyear, remained rapid in November; another substantial increase for the fuels and power group accounted for a large part of the rise, although increases continued to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin • February 1977 widespread among other commodity groups. Since May the index of industrial commodity prices had risen at an annual rate of nearly 10 per cent, compared with a rate of about 3 per cent over the first 5 months of the year. Average wholesale prices of farm products and foods changed little in November after having declined on the average over the preceding 4 months. The consumer price index rose in both October and November at an annual rate of about 3V£ per cent, and in November it was 5 per cent higher than a year earlier. In the October-November period average retail prices of foods changed little while average prices of all other items—including services as well as commodities—increased at an annual rate of about 6 per cent. The average value of the dollar against leading foreign currencies declined slightly over the 5 weeks between the November and December meetings of the Committee. The pound sterling and also the currencies associated in the European 4'snake" arrangement strengthened against the U.S. dollar, while the Canadian dollar depreciated sharply. The U.S. foreign trade deficit, which had increased in September, remained substantial in October—with declines in both exports and imports. Exports of agricultural commodities rose sharply, mainly because of a jump in shipments of corn to areas of Europe that had suffered drought earlier in 1976, but exports of other commodities fell by a larger amount. In real terms, exports of nonagricultural commodities had been falling since midyear. Among imports, the reduction in October was about equally divided between fuels and other commodities. In November expansion in total credit at U. S. commercial banks was somewhat slower than in October but was faster than in any other month of 1976. Banks added a substantial amount to their holdings of U.S. Government and other securities, and their outstanding business loans increased for the third consecutive month. While the expansion in business loans was appreciable, more than half was accounted for by acquisitions of bankers acceptances by some commercial banks that were enlarging their loan portfolios for purposes of their year-end statements. Outstanding commercial paper issued by nonfinancial corporations rose slightly in November, after having declined in the preceding 2 months. Over the October-November period the ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 133 pansion in the total of such commercial paper and of business loans at banks was larger than in any other 2-month period in more than 2 years, even after allowance for bank acquisitions of bankers acceptances. The narrowly defined money stock (Mi), which had declined slightly in September and then grown at an annual rate of 13% per cent in October, was unchanged in November. The average rate of increase in M was about 4Vi per cent over the 3 months, x and 4% per cent over the 12 months, ending in November. Growth in M and M moderated in November, reflecting the 2 3 behavior of M , but was still substantial. Inflows to commercial x banks of the types of time and savings deposits included in M 2 remained at the advanced rate of October, and inflows of deposits to thrift institutions—while down from the pace in October—continued strong. Offering rates on such deposits remained attractive in relation to yields on short-term market instruments, although a significant number of institutions were reported to have reduced rates offered on some types of deposits and to have withdrawn offerings of longer-term deposits. System open market operations since the November 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. Soon after that meeting, incoming data suggested that over the November-December period growth in M would be in the lower half of the range that had x been specified by the Committee while growth in M would be 2 near the midpoint of its specified range. Accordingly, System operations were conducted pursuant to the Committee's decision that the Manager should aim to reduce the Federal funds rate to about 4% per cent within the first week after the meeting and to 4%. per cent within the following week—provided that growth in the monetary aggregates did not appear to be strong relative to the specified ranges. By the last week of November the Federal funds rate had declined to 43A per cent. After the first week of December, incoming data suggested that in the November-December period growth in M would be below t its specified range while growth in M would be at about the 2 midpoint of its range. Therefore, System operations became somewhat more accommodative in the provision of reserves, and at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 Federal Reserve Bulletin • February 1977 time of this meeting the Federal funds rate was about 45/s per cent—near the lower limit of the specified range of 4V2 to 5V* per cent. On November 19 the Board of Governors of the Federal Reserve System announced its approval of actions by the directors of 11 Federal Reserve Banks reducing the discount rate from 5V£ to 5lA per cent, effective November 22; soon afterward the rate was reduced at the remaining Reserve Bank. On December 17 the Board announced a structural adjustment in reserve requirements on demand deposits that would reduce required reserves by about $550 million. This action applied to net demand deposits held by member banks beginning in the week of December 16-22; under the lagged reserve system, it would reduce required reserves during the week of December 30-January 5. Over the inter-meeting period, market interest rates declined substantially to their lowest levels in more than 2 years, under the influence of the actions to ease monetary conditions and of the continuing evidence of relatively slow growth in economic activity. Yields on bonds declined about 30 basis points. Yields on most short-term instruments fell 40 to 60 basis points to levels that suggested that market participants were expecting some further decline in the Federal funds rate. Most commercial banks reduced the prime rate on business loans from 6V2 to 6lA per cent during the period, and two large banks reduced the rate to 6 per cent. The volume of new bonds offered to the public by domestic corporations was unusually light in November as new issues of high-grade industrial firms and of finance companies fell substantially. However, declines in rates in the U.S. market attracted a record volume of publicly offered foreign bonds. A resurgence of offerings by domestic corporations appeared to be under way in December. The supply of new State and local government bonds remained large in November. Total offerings of such bonds during the first 11 months of 1976 amounted to $32 billion, exceeding the previous record volume of offerings in all of 1975. The U.S. Treasury raised $6.0 billion of new money during the inter-meeting period. In addition, it sold $1 billion of 2-year notes for payment in late December and announced an offering of $2Vi billion of 5-year notes to be auctioned before the end of the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 135 Activity in the mortgage market apparently remained at a high level during November. Mortgage credit expansion continued to be dominated by loans for new and existing single-family houses, but the multifamily sector also strengthened somewhat. With yields on market securities declining, downward pressures on home mortgage rates intensified. Although the latest available national series indicated little change in rates for primary home mortgages, trade sources suggested that some cutting of rates on these instruments was developing. The recent declines in long-term interest rates were expected to encourage a heavy volume of capital market financing both by business corporations and by State and local governments during the early weeks of 1977. However, much of this financing seemed likely to involve either funding of short-term debt or advance refunding of bonds issued in earlier years when interest rates were substantially higher. Growth in mortgage credit seemed likely to remain strong. Savings and loan associations, with a record volume of commitments outstanding, were expected to continue providing a large volume of mortgage credit. Also, the sizable premium prevailing for mortgage rates over bond yields was expected to encourage acquisitions of mortgages by more diversified types of lenders. At the same time, it appeared likely that continuing strong cash flows to insurance companies would sustain the demands of these companies for bonds. At its telephone meeting on November 8 the Committee had agreed that from the third quarter of 1976 to the third quarter of 1977 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: Mi, AVi to 6V2 per cent; M , IV2 to 10 per cent; and M , 2 3 9 to 11V2 per cent. The associated range for growth in the bank credit proxy was 5 to 8 per cent. It was agreed that the longer-term ranges, as well as the particular aggregates for which such ranges were specified, would be subject to review and modification at subsequent meetings. It also was understood that short-run factors might cause growth rates from month to month to fall outside the ranges contemplated for annual periods. In their discussion of economic developments and prospects at this meeting, Committee members generally agreed that the latest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 Federal Reserve Bulletin • February 1977 business statistics indicated a strengthening in the situation and that the recent sluggishness appeared to have been only a "pause" in the growth of real output rather than the forerunner of a new recession. It was noted that in November the rise in industrial production had exceeded the amount attributable to recovery from strikes, that increases in personal income and retail sales had been sizable, and that progress was apparently being made in adjusting inventories. Moreover, it was suggested that confidence had improved; in particular, it was thought that the business community had been reassured by indications that the incoming administration would take a cautious approach to economic problems and that it would not seek price and wage controls in any situation short of a national emergency. Despite the disappointing results of the Commerce Department survey of business spending plans for the first two quarters of 1977, one member expressed the opinion that the improvement in business confidence, combined with the recent declines in longer-term interest rates, would contribute to a significant expansion in plant and equipment outlays. Although Committee members in general viewed the business situation and outlook as having improved, some noted that the strengthening thus far had not been great and that it was not certain that the pause had ended. Also, attention was called to a number of continuing and potential problems. Among these was the outlook for unemployment, which might remain high for some time to come, especially if the labor force continued to rise at a rapid pace, in part because of increasing participation of women. In this connection, it was suggested that specific Government programs to deal with sectoral problems might be far more effective in reducing unemployment than general monetary and fiscal policies. Inflation also continued to be a source of concern; it was noted that while the rise in the consumer price index had moderated in recent months, the increase in average wholesale prices of industrial commodities had accelerated to an annual rate of about 10 per cent. It was also noted that there was continuing uncertainty about how much prices of imported oil would be raised at the start of 1977, and about how the impact of further increases in the price of oil would affect the performance of the economy. It was observed during the discussion that the Federal budget deficit in fiscal 1976 had been substantial—especially when "off- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 137 budget outlays" and deficits of Government-sponsored agencies were taken into account—and that another deficit of almost the same size was in prospect for fiscal 1977 even without allowance for new stimulative measures. Some concern was expressed that fiscal stimulus might foster new inflationary expectations or that, as at times in the past, its effects might come so late in the expansion as to cause growth of real output to accelerate at a time when it should be moving gradually toward the longer-term rate of growth in potential output. The view was also expressed, however, that a degree of fiscal stimulus was desirable. Members of the Committee did not differ greatly in their views on appropriate monetary policy for the period immediately ahead. With respect to the annual rate of growth in M over the Decemx ber-January period, most members favored a range of either 2Vi to 6V2 per cent or 3 to 7 per cent, although one suggested a range of 2 to 7 per cent. For M , there was general support for a range 2 of 9 to 13 per cent. Most members favored giving greater weight than usual to money market conditions in conducting open market operations in the period until the next meeting, in part because projections of growth in monetary aggregates around the year-end were highly uncertain. A majority favored directing operations toward maintaining the Federal funds rate at about its prevailing level of 4% per cent for the time being, unless growth in the monetary aggregates appeared to be deviating significantly from the rates currently expected. Most of these members favored specifying an inter-meeting range for the Federal funds rate that was symmetrical around the prevailing rate—specifically, AV* to 5 per cent—but one preferred a range of 4 to 5 per cent. A number of reasons were advanced for maintaining prevailing money market conditions at this time. These included the evidence of improvement in the economic outlook, the substantial declines in interest rates over the past few weeks, the recent reductions in Federal Reserve discount rates and in member bank reserve requirements, and the recent weakening in the value of the dollar in foreign exchange markets. Also noted were the uncertainties regarding the amount of fiscal stimulus that might be forthcoming, the large Federal deficit in prospect even without new fiscal measures, and the continuing inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Federal Reserve Bulletin • February 1977 A minority of Committee members favored aiming at the outset of the coming period for a slight further reduction in the Federal funds rate—to about AVi per cent, the midpoint of the 4 to 5 per cent range that they preferred. A principal argument offered for this course was that it would tend to avoid the increases in other short-term interest rates that—in the light of current market expectations—might result if the prevailing Federal funds rate were maintained. Other arguments advanced were that a slightly lower Federal funds rate might encourage further declines in long-term rates, that it would tend to validate the reduction in reserve requirements, and that the evidence of an end to the period of slow growth in real output was not yet conclusive. At the conclusion of the discussion the Committee decided that operations in the period immediately ahead should be directed toward maintaining the money market conditions now prevailing, including a weekly-average Federal funds rate of about 4% per cent. With respect to the annual rates of growth in M and M t 2 over the December-January period, the Committee specified ranges of 2Vi to 6V2 per cent and 9 to 13 per cent, respectively. The members agreed that, if growth in the aggregates should appear to be strong or weak relative to the specified ranges, the weeklyaverage Federal funds rate might be expected to vary in an orderly fashion within a range of 4XA to 5 per cent. As at other recent meetings, the Committee decided that approximately equal weight should be given to M and M in assessing the behavior of the x 2 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 in the fourth quarter has remained at about the reduced pace of the third quarter. In both October and November retail sales increased substantially. Industrial production rose appreciably in November—following 2 months of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 139 decline—in large part as a result of termination of strikes in two major industries, although advances in output were widespread among other industries. Employment in manufacturing also recovered from the effects of strikes. According to household survey data, the gain in total employment was large, but the unemployment rate increased from 7.9 to 8.1 per cent as the civilian labor force—which had changed little over the preceding 3 months—increased considerably. The wholesale price index for all commodities rose as much in November as in October, reflecting another substantial increase in average prices of industrial commodities; average prices of farm products and foods changed little. The advance in the index of average wage rates over recent months has remained below the rapid rate of increase during 1975. The average value of the dollar against leading foreign currencies has declined slightly in recent weeks. The pound sterling and also the currencies associated in the European "snake" arrangement strengthened against the U.S. dollar, while the Canadian dollar depreciated sharply. In October the U.S. foreign trade deficit remained substantial. M, which had expanded sharply in October, was unchanged in 1 November. Although growth in M and M moderated, it remained 2 3 substantial as inflows of the time and savings deposits included in these broader aggregates continued strong. Interest rates have declined appreciably in recent weeks. In late November Federal Reserve discount rates were reduced from 5Vi to 5V4 per cent, and in mid-December member bank reserve requirements were lowered somewhat. 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 maintain prevailing bank reserve and money market conditions over the period immediately ahead, provided that monetary aggregates appear to be growing at about the rates currently expected. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Votes against this action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 Federal Reserve Bulletin • February 1977 2. Foreign Currency Instruments At this meeting the Committee agreed upon broad revisions in the Authorization for Foreign Currency Operations and the Foreign Currency Directive. The most recent basic revision in these documents had been made in June 1966, and several amendments to specific provisions had been adopted over the ensuing period. The main purposes of the current revisions were to simplify and clarify the Committee's instructions to the Federal Reserve Bank of New York in this area and to bring the documents up to date in light of changes under way in the international monetary system and its functioning. These revisions were not intended to signify a change in policy orientation; they simply codified current practice under the evolving regime of floating exchange rates. The main change in the Authorization was to replace the several separate limits on various types of spot and forward transactions with a single limit on the System's "over-all open position," as defined in paragraph 1(D). The previous separate limits, which had been developed in particular historical circumstances under the Bretton Woods system, had lost relevance under current circumstances or under the evolving exchange rate regime. The main change in the Directive was to omit the detailed listing of basic purposes and specific objectives of System foreign currency operations—many of which were anachronistic in current circumstances—and to indicate instead that System operations were generally to be directed at countering disorderly conditions in the exchange markets. As revised, the two documents read as follows: AUTHORIZATION FOR FOREIGN CURRENCY OPERATIONS 1. The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York, for System Open Market Account, to the extent necessary to carry out the Committee's foreign currency directive and express authorizations by the Committee pursuant thereto, and in conformity with such procedural instructions as the Committee may issue from time to time: A. To purchase and sell the following foreign currencies in the form of cable transfers through spot or forward transactions on the open market at home and abroad, including transactions with the U.S. Exchange Stabilization Fund established by Section 10 of the Gold Reserve Act Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 141 of 1934, with foreign monetary authorities, with the Bank for International Settlements, and with other international financial institutions: Austrian schillings French francs Netherlands guilders Belgian francs German marks Norwegian kroner Canadian dollars Italian lire Swedish kronor Danish kroner Japanese yen Swiss francs Pounds sterling Mexican pesos B. To hold balances of, and to have outstanding forward contracts to receive or to deliver, the foreign currencies listed in paragraph A above. C. To draw foreign currencies and to permit foreign banks to draw dollars under the reciprocal currency arrangements listed in paragraph 2 below, provided that drawings by either party to any such arrangement shall be fully liquidated within 12 months after any amount outstanding at that time was first drawn, unless the Committee, because of exceptional circumstances, specifically authorizes a delay. D. To maintain an over-all open position in all foreign currencies not exceeding $1.0 billion, unless a larger position is expressly authorized by the Committee. For this purpose, the over-all open position in all foreign currencies is defined as the sum (disregarding signs) of open positions in each currency. The open position in a single foreign currency is defined as holdings of balances in that currency, plus outstanding contracts for future receipt, minus outstanding contracts for future delivery of that currency, i.e., as the sum of these elements with due regard to sign. 2. The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements ("swap" arrangements) for the System Open Market Account for periods up to a maximum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Amount of arrangement Foreign bank (millions of dollars equivalent) Austrian National Bank 250 National Bank of Belgium 1,000 Bank of Canada 2,000 National Bank of Denmark 250 Bank of England 3,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin • February 1977 Amount of arrangement Foreign bank (millions of dollars equivalent) Bank of France 2,000 German Federal Bank 2,000 Bank of Italy 3,000 Bank of Japan 2,000 Bank of Mexico 360 Netherlands Bank 500 Bank of Norway 250 Bank of Sweden 300 Swiss National Bank 1,400 Bank for International Settlements: Dollars against Swiss francs 600 Dollars against authorized European currencies other than Swiss francs 1,250 Any changes in the terms of existing swap arrangements, and the proposed terms of any new arrangements that may be authorized, shall be referred for review and approval to the Committee. 3. Currencies to be used for liquidation of System swap commitments may be purchased from the foreign central bank drawn on, at the same exchange rate as that employed in the drawing to be liquidated. Apart from any such purchases at the rate of the drawing, all transactions in foreign currencies undertaken under paragraph 1(A) above shall, unless otherwise expressly authorized by the Committee, be at prevailing market rates. 4. It shall be the normal practice to arrange with foreign central banks for the coordination of foreign currency transactions. In making operating arrangements with foreign central banks on System holdings of foreign currencies, the Federal Reserve Bank of New York shall not commit itself to maintain any specific balance, unless authorized by the Federal Open Market Committee. Any agreements or understandings concerning the administration of the accounts maintained by the Federal Reserve Bank of New York with the foreign banks designated by the Board of Governors under Section 214.5 of Regulation N shall be referred for review and approval to the Committee. 5. Foreign currency holdings shall be invested insofar as practicable, considering needs for minimum working balances. Such investments shall be in accordance with Section 14(e) of the Federal Reserve Act. 6. All operations undertaken pursuant to the preceding paragraphs shall be reported daily to the Foreign Currency Subcommittee. The Foreign Currency Subcommittee consists of the Chairman and Vice Chairman of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 143 the Committee, the Vice Chairman of the Board of Governors, and such other member of the Board as the Chairman may designate (or in the absence of members of the Board serving on the Subcommittee, other Board Members designated by the Chairman as alternates, and in the absence of the Vice Chairman of the Committee, his alternate). Meetings of the Subcommittee shall be called at the request of any member, or at the request of the Manager, for the purposes of reviewing recent or contemplated operations and of consulting with the Manager on other matters relating to his responsibilities. At the request of any member of the Subcommittee, questions arising from such reviews and consultations shall be referred for determination to the Federal Open Market Committee. 7. The Chairman is authorized: A. With the approval of the Committee, to enter into any needed agreement or understanding with the Secretary of the Treasury about the division of responsibility for foreign currency operations between the System and the Treasury; B. To keep the Secretary of the Treasury fully advised concerning System foreign currency operations, and to consult with the Secretary on policy matters relating to foreign currency operations; C. From time to time, to transmit appropriate reports and information to the National Advisory Council on International Monetary and Financial Policies. 8. Staff officers of the Committee are authorized to transmit pertinent information on System foreign currency operations to appropriate officials of the Treasury Department. 9. All Federal Reserve Banks shall participate in the foreign currency operations for System Account in accordance with paragraph 3 G(l) of the Board of Governors' Statement of Procedure with Respect to Foreign Relationships of Federal Reserve Banks dated January 1, 1944. FOREIGN CURRENCY DIRECTIVE 1. System operations in foreign currencies shall generally be directed at countering disorderly market conditions, provided that market exchange rates for the U.S. dollar reflect actions and behavior consistent with the proposed IMF Article IV, Section 1. 2. To achieve this end the System shall: A. Undertake spot and forward purchases and sales of foreign exchange. B. Maintain reciprocal currency ("swap") arrangements with selected foreign central banks and with the Bank for International Settlements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 Federal Reserve Bulletin • February 1977 C. Cooperate in other respects with central banks of other countries and with international monetary institutions. 3. Transactions may also be undertaken: A. To adjust System balances in light of probable future needs for currencies. B. To provide means for meeting System and Treasury commitments in particular currencies, and to facilitate operations of the Exchange Stabilization Fund. C. For such other purposes as may be expressly authorized by the Committee. 4. System currency operations shall be conducted: A. In close and continuous consultation and cooperation with the United States Treasury; B. In cooperation, as appropriate, with foreign monetary authorities; and C. In a manner consistent with the obligations of the United States in the International Monetary Fund regarding exchange arrangements under the proposed IMF Article IV. Paragraph 1(D) of the new Authorization specified a limit of $1.0 billion on the System's over-all open position in all foreign currencies "unless a larger position is expressly authorized by the Committee." The $1.0 billion limit was intended to apply to the open position exclusive of the System's obligations in Swiss francs remaining under drawings made in 1971, which currently were in process of repayment under a schedule agreed upon with the Swiss National Bank. Accordingly, the Committee adopted the following special authorization: The Federal Open Market Committee authorizes the Federal Reserve Bank of New York to maintain an over-all open position in foreign currencies exceeding the figure of $1.0 billion specified in paragraph 1(D) of the Authorization for Foreign Currency Operations by an amount equal to the remaining forward commitments associated with the System's outstanding 1971 swap drawings in Swiss francs. Votes for these actions: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Votes against these actions: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 145 The Committee also agreed upon certain procedural instructions. These were intended to clarify the respective roles of the Committee, the Foreign Currency Subcommittee designated in paragraph 6 of the Authorization, and the Chairman in providing guidance to the Manager of the System Open Market Account with respect to proposed or ongoing foreign currency operations under the Authorization and Directive. These instructions read as follows: PROCEDURAL INSTRUCTIONS In conducting operations pursuant to the authorization and direction of the Federal Open Market Committee as set forth in the Authorization for Foreign Currency Operations and the Foreign Currency Directive, the Federal Reserve Bank of New York, through the Manager of the System Open Market Account, shall be guided by the following procedural understandings with respect to consultations and clearance with the Committee, the Foreign Currency Subcommittee, and the Chairman of the Committee. All operations undertaken pursuant to such clearances shall be reported promptly to the Committee. 1. The Manager shall clear with the Subcommittee (or with the Chairman, if the Chairman believes that consultation with the Subcommittee is not feasible in the time available): A. Any transaction which would result in a change in the System's over-all open position in foreign currencies exceeding $100 million on any day or $300 million since the most recent regular meeting of the Committee. B. Any transaction which would result in gross transactions (excluding swap drawings and repayments) in a single foreign currency exceeding $100 million on any day or $300 million since the most recent regular meeting of the Committee. C. Any swap drawing proposed by a foreign bank not exceeding the larger of (i) $200 million or (ii) 15 per cent of the size of the swap arrangement. 2. The Manager shall clear with the Committee (or with the Subcommittee, if the Subcommittee believes that consultation with the full Committee is not feasible in the time available, or with the Chairman, if the Chairman believes that consultation with the Subcommittee is not feasible in the time available): A. Any transaction which would result in a change in the System's over-all open position in foreign currencies exceeding $500 million since the most recent regular meeting of the Committee. B. Any swap drawing proposed by a foreign bank exceeding the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 Federal Reserve Bulletin • February 1977 larger of (i) $200 million or (ii) 15 per cent of the size of the swap arrangement. 3. The manager shall also consult with the Subcommittee or the Chairman about proposed swap drawings by the System, and about any transactions that are not of a routine character. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Vote against this action: Mr. Coldwell. In dissenting from this action, Mr. Coldwell noted that paragraph 2 reserved to the full Committee the power to approve market transactions by the System and swap drawings by foreign central banks exceeding specified figures. However, that language was qualified by a parenthetical statement (similar to a statement in paragraph 1) indicating that such transactions could be approved by the Subcommittee or the Chairman under particular circumstances, relating to the availability of time. Mr. Coldwell would have preferred language indicating that such power—which extended to operations up to the limits permitted by the Authorization—was reserved to the full Committee except under circumstances of extreme emergency. The foregoing actions were effective December 28, 1976. 3. Authorization for Domestic Open Market Operations Paragraph 2 of the authorization for domestic open market operations authorizes the Federal Reserve Bank of New York (and, under certain circumstances, other Reserve Banks) to purchase short-term certificates of indebtedness directly from the Treasury, subject to certain conditions. This authorization is, in turn, based on a provision of Section 14(b) of the Federal Reserve Act authorizing the Federal Reserve Banks to buy and sell obligations of specified types 4'directly from or to the United States," subject to certain conditions. It was noted at this meeting that, because the statutory authority in question had expired on November 1, 1976, paragraph 2 of the authorization had been in a state of de facto suspension since then, and that the paragraph would remain in suspension until the enactment of expected legislation extending the authority. 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

147 Law Department Statutes, regulations, interpretations, and decisions INTERLOCKING BANK RELATIONSHIPS foregoing, as may be determined by the Board in UNDER THE CLAYTON ACT any specific case. The Board of Governors has amended its Regulation L to permit, with certain prescribed limitations, a director, officer, or employee of a member bank to serve simultaneously as a director, officer, or employee of a minority bank. VARIOUS TECHNICAL AMENDMENTS AMENDMENT TO REGULATION L The Board of Governors of the Federal Reserve Effective January 4, 1977, Regulation L is System has adopted various amendments to its amended by adding a new section 212.3(h) to read Regulations B (Equal Credit Opportunity), Z as follows: (Truth in Lending), A A (Unfair or Deceptive Acts SECTION 212.3— or Practices), and Rules Regarding Delegation of RELATIONSHIPS PERMITTED BY BOARD Authority. The amendments delegate authority to issue certain examination, inspection, and report- In addition to any relationships covered by the ing materials to the Board's Division of Banking foregoing exceptions, not more than one of the Supervision and Regulation and Division of Confollowing relationships is hereby permitted by sumer Affairs. The amendments also reflect the the Board of Governors of the Federal Reserve transfer of the Securities Credit Regulation section System in the case of any one individual. from the latter division to the former. The amendments are effective December 29, 1976. (h) MINORITY BANK. Any director, officer, or employee of a member bank of the Federal Re- 1. Section 202.13(c) is amended as follows: serve System may be at the same time a director, officer, or employee of not more than one other EQUAL CREDIT OPPORTUNITY bank that is controlled or managed by persons who are members of minority groups or by women SECTION 202.13—PENALTIES AND LIABILITIES subject to the following conditions: (1) Such relationship is determined by the Board to be necessary to provide management or operating expertise (c)(1) Any request for formal Board interpretato such other bank; (2) not more than three inter- tion or official staff interpretation of Regulation locking relationships between any two banks shall B must be addressed to the Director of the Division be permitted by this paragraph, except that persons of Consumer Affairs, * * * serving in interlocking relationships pursuant to this paragraph shall in no instance constitute a majority of the board of directors of the other (3) Pursuant to section 706(e) of the Act, the bank; (3) no interlocking relationship permitted by Board has designated the Director and other this paragraph shall continue for more than a officials of the Division of Consumer Affairs * * * five-year period; and (4) upon such other terms and conditions in addition to or in lieu of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 Federal Reserve Bulletin • February 1977 2. Section 226.1(d) is amended to read as fol- (19) Under the provisions of §§ 207.2(f), lows: 220.2(e), and 221.3(d) of this chapter (Regulations G, T, and U, respectively) to approve issuance TRUTH IN LENDING of the list of OTC margin stocks and to add, omit, or remove any stock in circumstances indicating SECTION 226.1— that such change is necessary or appropriate in the AUTHORITY, SCOPE, PURPOSE, ETC. public interest. (20) Under the provisions of § 207.4(a)(2)(ii) of this chapter (Regulation G) to approve repay- (d) (1) Any request for formal Board interpreta- ments of the "deficiency" with respect to stock tion or official staff interpretation of Regulation option or employee stock purchase plan credit in Z must be addressed to the Director of the Division lower amounts and over longer periods of time of Consumer Affairs, * * * than those specified in the regulation. (21) Pursuant to the provisions of Part 261 of this chapter, to make available reports and other (3) Pursuant to section 130(f) of the Act, the information of the Board acquired pursuant to Board has designated the Director and other Parts 207, 220, 221, and 224 (Regulations G, T, officials of the Division of Consumer Affairs * * * U, and X) of the nature and in circumstances described in § 261.6(a)(2) and (3) of Part 261. (22) Pursuant to the provisions of section 11(a) of the Federal Reserve Act (12 U.S.C. 3. Section 227.2(a) is amended to read as fol- 248(a)) and sections 17(c), 17(g), and 23 of the lows: Securities Exchange Act of 1934 (15 U.S.C. 78q(c), 78q(g), and 78w) to issue examination or UNFAIR OR inspection manuals, registration, report, agreement, and examination forms, guidelines, instruc- DECEPTIVE ACTS OR PRACTICES tions or other similar materials for use in connec- SECTION 227.2— tion with the administration of sections 7,8, 15B, CONSUMER COMPLAINT PROCEDURE and 17A(c) of the Securities Exchange Act of 1934 (a) SUBMISSION OF COMPLAINTS. * * * (15 U.S.C. 78g, 78h, 78o-4, and 78q-l). (2) Consumer complaints should be made to: (i) The Director, Division of Consumer Af- 5. Section 265.2(h) is amended by deleting fairs,* * * paragraphs (l)-(3), revising paragraphs (4) and (6), and redesignating paragraphs (4), (5), and (6) as paragraphs (1), (2), and (3) respectively. As 4. Section 265.2(c) is amended by adding new amended § 265.2(h) reads as follows: paragraphs (19), (20), (21), and (22). As amended §265.2(c) reads as follows: SECTION 265.2—SPECIFIC RULES REGARDING FUNCTIONS DELEGATED TO BOARD DELEGATION OF AUTHORITY EMPLOYEES AND TO FEDERAL RESERVE BANKS SECTION 265.2—SPECIFIC FUNCTIONS DELEGATED TO BOARD EMPLOYEES AND TO FEDERAL RESERVE BANKS (h) THE DIRECTOR OF THE DIVISION OF CONSUMER AFFAIRS (or, in the Director's absence, the Acting Director) is authorized: (c) THE DIRECTOR OF THE DIVISION OF (1) Pursuant to the provisions of section 11(a) BANKING SUPERVISION AND REGULATION (or of the Federal Reserve Act (12 U.S.C. 248(a)), in the Director's absence, the Acting Director) is sections 108(b), 621(c), and 704(b) of the Conauthorized: sumer Credit Protection Act (15 U.S.C. 1607(b), * * * * * 1681s(c), and 1691c(b)), section 305(c) of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 149 Home Mortgage Disclosure Act (12 U.S.C. Commission Act (15 U.S.C. 57a(f)(l)-(3)), and 2804(c)), section 18(f)(3) of the Federal Trade (iv) section 805 of the Civil Rights Act of Commission Act (15 U.S.C. 57a(f) (3)), and sec- 1968 (42 U.S.C. 3605); and rules and regulations tion 808(c) of the Civil Rights Act of 1968 (42 issued thereunder. U.S.C. 3608(c)), to issue examination or inspection manuals, report, agreement, and examination forms, guidelines, instructions or other similar materials for use in connection with (3) Pursuant to section 703(b) of the Consumer (i) sections 1 through 709 (excluding sections Credit Protection Act (15 U.S.C. 1691b(b)), to 201 through 500) of the Consumer Credit Protec- call meetings of and consult with the Consumer tion Act (15 U.S.C. 1601-1691f), Advisory Council established under that section, (ii) sections 301 through 310 of the Home to approve the agenda for such meetings, and to Mortgage Disclosure Act (12 U.S.C. 2801-2809), accept any resignation from Consumer Advisory (iii) sections 18(f)(l)-(3) of the Federal Trade Council members. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 homa, is the 19th largest of 43 banking organi- OF BANK HOLDING COMPANY ACT zations within the relevant banking market.2 Bank holds 1.0 per cent of the total commercial bank American National Bancshares, Inc., deposits in this market. Inasmuch as the proposal Midwest City, Oklahoma represents merely a restructuring of Bank's ownership into corporate form and Applicant has no Order Denying other banking interests, the acquisition of Bank Formation of Bank Holding Company by Applicant would have no adverse effects on American National Bancshares, Inc., Midwest existing or potential competition within the rele- City, Oklahoma, has applied for the Board's ap- vant banking market and would not increase the proval under § 3(a)(1) of the Bank Holding Com- concentration of banking resources in the relevant pany Act (12 U.S.C. § 1842(a)(1)) of formation market. Accordingly, competitive considerations of a bank holding company through acquisition are consistent with approval of the application. of 80 per cent (or more) of the voting shares of The Board has indicated on previous occasions American National Bank of Midwest City, Mid- that it believes that a holding company should west City, Oklahoma ("Bank"). constitute a source of financial and managerial Notice of the application, affording opportunity strength to its subsidiary bank(s), and that the for interested persons to submit comments and Board will closely examine the condition of an views, has geen given in accordance with § 3(b) applicant in each case with this consideration in of the Act. The time for filing comments and views mind. The financial and managerial resources and has expired, and the Board has considered the prospects of the newly formed Applicant are genapplication and all comments received, including erally dependent upon these considerations as they those of the Comptroller of the Currency, in light relate to Bank. While the Board considers the of the factors set forth in § 3(c) of the Act (12 financial and managerial resources of Bank to be U.S.C. § 1842 (c)). generally satisfactory, it appears that Bank is in Applicant is a nonoperating corporation orga- need of some additional capital. Although Applinized for the purpose of becoming a bank holding cant would initially increase Bank's capital, the company through acquisition of Bank. Bank, with Board notes that Applicant would borrow the funds deposits of $23 million,1 representing .22 per cent to make such a capital injection and that such of the total commercial bank deposits in Okla- borrowing, coupled with the acquisition debt Ap- *A11 banking data are as of December 31, 1975. 2The relevant market is approximated by Oklahoma County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 Federal Reserve Bulletin • February 1977 plicant would incur in connection with the pro- on a loan can be developed without reference to posed transaction, would increase the demands on confidential examination reports. Bank's earnings to service such debt, thus coun- In view of the substantial debt to be incurred teracting to a significant extent the benefits of any by Applicant in connection with this proposal, the capital contributions by Applicant. In the Board's strain that could be placed on Bank's capital posiview, besides straining Bank's capital adequacy, tion as a result of Applicant's debt servicing rethe debt servicing obligations to be incurred by quirements, the limited financial flexibility of Ap- Applicant would also significantly limit Appli- plicant and its principal shareholder, and the fact cant's ability to meet any unforeseen financial that the terms of the loan agreement may accelerate problems that might arise. any difficulties that might occur in Bank's opera- In addition, it appears that Applicant's principal tions, the Board is of the opinion that considshareholder may not be in a sufficiently strong erations relating to financial resources and future financial position because of his personal debt to prospects weigh against approval of the applicaprovide meaningful assistance to Applicant in the tion. event problems arise in the servicing of Appli- Applicant indicates that banking services curcant's debt or in meeting other unforeseen finan- rently rendered in the community served by Bank cial needs. Moreover, if Applicant is called upon will remain unchanged upon consummation of the to assist in the servicing and retirement of its proposal. Accordingly, considerations relating to principal shareholder's personal debt, further the convenience and needs of the community to strains would be placed on Bank's capital position. be served do not outweigh the adverse findings Finally, the Board notes that a covenant in the with respect to the financial factors involved in loan agreement between representatives of Appli- Applicant's proposal. cant and the lending institution from which Appli- On the basis of the circumstances concerning cant would borrow the funds to acquire Bank's this application, the Board concludes that the stock involves the use of Bank's examination banking considerations involved in this proposal reports to monitor the value of Bank's stock present adverse factors bearing upon the financial pledged as collateral on the loan.3 The Board does resources and future prospects of both Applicant not view such a covenant as an appropriate use and Bank. Such adverse factors are not outweighed of examination reports and is of the view that such by any procompetitive effects, managerial rea practice may threaten the integrity of the exami- sources, or by benefits that would result in serving nation process by providing a bank's management the convenience and needs of the community. an incentive to provide less than complete and Accordingly, it is the Board's judgment that apcandid disclosure of information to the examiner. proval of the application to become a bank holding In addition, the examiner would be subjected to company would not be in the public interest and extraneous outside pressures by the knowledge that that the application should be denied. if he classifies a large percentage of a bank's assets On the basis of the facts of record, the applicait may result in a default on the loan and increase tion is denied for the reasons summarized above. the likelihood of a change of ownership of the By order of the Board of Governors, effective bank that could further weaken the bank's condi- January 10, 1977. tion.4 The Board is of the opinion that an accurate assessment of the value of bank stock as collateral Voting for this action: Vice Chairman Gardner and Governors Wallich, Jackson, and Lilly. Absent and not voting: Chairman Burns and Governors Coldwell and Partee. 3 The loan agreement provides for default and immediate payment of all outstanding indebtedness: (Signed) GRIFFITH L. GARWOOD, (d) Sound Condition of Bank. In the event the applicable [SEAL] Deputy Secretary of the Board. governmental agency bank examiners should, in the course of an official examination, classify assets of Bank as substandard, doubtful or as a loss, to the extent that said classified assets equal or exceed 30 per cent of the total capital structure of Bank, the indebtedness to which this 4In commenting on this application, the Comptroller of the Loan Agreement relates shall become due and payable Currency expressed concern over this particular provision of immediately, unless such default shall have been cured the loan agreement. The Board notes that such a provision within 90 days after receipt by Debtor of notice of such appears to be inconsistent with the Comptroller's regulation classification. relating to disclosure of examination reports to financial insti- 4See opposite column for footnote. tutions (12 CFR § 4.18(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 151 The Daiwa Bank, Limited, the Board concludes that consummation of the Osaka, Japan proposed transaction will not have an adverse effect on existing or potential competition in the Order Approving relevant market, nor would it have a significant Formation of Bank Holding Company effect on the concentration of banking resources in any relevant area. Accordingly, competitive factors are consistent with approval of the subject The Daiwa Bank, Limited, Osaka, Japan, has application. applied for the Board's approval under § 3(a)(1) The financial and managerial resources and fuof the Bank Holding Company Act (12 U.S.C. ture prospects of Applicant and Bank are regarded 1842(a)(1)) of formation of a bank holding comas satisfactory and consistent with approval. Conpany through acquisition of 100 per cent of the siderations relating to the convenience and needs voting shares of Daiwa Bank Trust Company, New of the community to be served lend some weight York, New York ("Bank"), a proposed new bank. toward approval, due to the addition to the metro- Notice of the application, affording opportunity politan New York market of a new bank and for interested persons to submit comments and another international banking link to Japan. views, has been given in accordance with § 3(b) Applicant presently owns 6.9 per cent of the of the Act. The time for filing comments and views outstanding voting shares of New Japan Securities has expired, and the Board has considered the Co., Ltd., Tokyo, Japan ("New Japan"), a comapplication and all comments received in light of pany that indirectly engages in a general securities the factors set forth in § 3(c) of the Act (12 U.S.C. business in the United States through its wholly- 1842(c)). owned subsidiary New Japan Securities Interna- Applicant, a Japanese commercial bank with tional, Inc., New York, New York, a member of total assets of approximately $13.8 billion and the National Association of Securities Dealers, total deposits of approximately $9.2 billion, is the Inc., and the Boston Stock Exchange. The retenninth largest commercial bank in Japan.1 In addition of shares of New Japan by Applicant would tion to its offices in Japan, Applicant operates be impermissible under section 4 of the Act;4 thus, branches in London, Frankfurt, and Los Angeles, in accordance with the requirements of § 4(a)(2) and an agency in New York City. of the Act, Applicant will reduce its ownership Bank proposes to be a full-service commercial of shares in New Japan to not more than 5 per bank in the metropolitan New York market;2 cent of the outstanding voting shares of such however, Bank will primarily be a wholesale bank company within two years after the date on which specializing in the financing of trade between Applicant becomes a bank holding company.5 Japan and the United States. Bank will also offer In light of the purposes of the Bank Holding certain trust services. Applicant has one office in Company Act to maintain the separation of bank- New York City, but that office is an agency and ing and commerce in the United States, the Board under New York law it is not authorized to accept has given special attention in previous bank holddeposits or provide fiduciary services. Bank is ing company applications by Japanese commercial expected to compete primarily with other banks banks to the relationships that Japanese banks are in New York City that are controlled by Japanese permitted to have with industrial or commercial banks, and, to some extent, with the larger New companies under the laws of Japan. In particular, York banks having international banking capabilthe Board has been concerned where the applicant ities. At present, there are three banks in the relevant market that are controlled by Japanese banks.3 On the basis of the information of record 1A11 banking and financial data are as of March 31, 1976. 4 See Order Disapproving Retention by Banco di Roma of 2 The metropolitan New York market is defined to include its investment in Europartners Securities Corporation [58 Fedthe five boroughs of New York City, Nassau County, West- eral Reserve BULLETIN 940 (1972)] and the Board's Orders chester County, Putnam County, Rockland County, and west- approving the applications of The Fuji Bank, Limited, and ern Suffolk County in New York, as well as the northern The Industrial Bank of Japan, Ltd., to become bank holding two-thirds of Bergen County and eastern Hudson County in companies [39 Federal Register 39503, 39504], New Jersey, plus southwestern Fairfield County in Connecticut. 5Under § 4(c)(6) of the Act, a bank holding company may 3Bank of Tokyo Trust Company, the Fuji Bank and Trust own '' shares of any company which do not include more than Company, and The Industrial Bank of Japan Trust Company, 5 per centum of the outstanding voting shares of such comall of New York, New York. pany." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • February 1977 Japanese bank is linked in a group with its major application and all comments received in light of Japanese customers through interlocking stock the factors set forth in § 3(c) of the Act (12 U.S.C. ownership, and where these commercial customers § 1842(c)). do a significant business in the United States. On March 1, 1976, Indiana Bank received 8.16 Based on the record of this application, the per cent (48,960) of the outstanding voting shares Board has concluded at this time that Applicant of Bank from a predecessor trustee pursuant to is not linked through interlocking stock ownership a revocable inter vivos trust agreement between in a group with its major Japanese customers. Mildred C. Gasser and Bank. In that agreement, Accordingly, the Board has not found it necessary Indiana Bank, a wholly-owned subsidiary of Apin this application to reach the issues of "control" plicant, was named successor trustee and was present when a group of commercial companies granted sole discretionary voting power over the are closely associated with a Japanese bank 48,960 shares and is required by the terms of the through interlocking stock ownership. trust to vote the shares in the best interest of the On the basis of the record, the application is immediate beneficiaries of the trust, members of approved for the reasons summarized above. The the Gasser family, who control an additional 29.12 transaction shall not be made (a) before the thir- per cent of the outstanding voting shares. tieth calendar day following the effective date of Bank, with deposits of $367.8 million, is the this Order, or (b) later than three months after that fifth largest commercial bank in Indiana, controldate, and (c) Daiwa Bank Trust Company, New ling 2.1 per cent of the total deposits in commer- York, New York, shall be opened for business cial banks in the State.1 Indiana Bank, with denot later than six months after the effective date posits of $1.3 billion, is the second largest comof this Order. Each of the periods described in mercial bank in Indiana, controlling 7.3 per cent (b) and (c) may be extended for good cause by of the total commercial bank deposits in the State. the Board, or by the Federal Reserve Bank of New Indiana Bank and Bank are located in separate, York pursuant to delegated authority. non-adjacent banking markets, approximately 200 By order of the Board of Governors, effective miles apart. Each bank derives from the service January 26, 1977. area of the other less than 0.5 per cent of its loans to, and deposits from, individuals, partnerships, and corporations. Hence, the proposed retention Voting for this action: Chairman Burns and Goverof shares would not eliminate any significant exnors Gardner, Coldwell, Jackson, Partee, and Lilly. isting competition between the two banks nor Absent and not voting: Governor Wallich. would it increase concentration of banking re- (Signed) GRIFFITH L. GARWOOD, sources in any local banking market. Furthermore, [SEAL] Deputy Secretary of the Board. the proposal would not eliminate any significant future competition since Indiana law prohibits ei- Indiana National Corporation, ther bank from operating a branch office outside Indianapolis, Indiana its home office county and prohibits Applicant from acquiring an additional bank for its own Order Approving Retention of Bank Shares account. Hence, competitive considerations are Indiana National Corporation, Indianapolis, In- consistent with approval of the application, particdiana, a bank holding company within the meaning ularly in that it does not appear Applicant will of the Bank Holding Company Act, has applied be capable of controlling the management or polifor the Board's approval under § 3(a)(3) of the cies of Bank by virtue of the instant acquisition. Act (12 U.S.C. § 1842(a)(3)) to retain, through The financial and managerial resources and fuits wholly-owned subsidiary, The Indiana National ture prospects of Applicant, Indiana Bank, and Bank, Indianapolis, Indiana ("Indiana Bank"), Bank are satisfactory. Accordingly, banking fac- 8.16 per cent of the outstanding voting shares of tors are consistent with approval. There is no Gary National Bank, Gary, Indiana ("Bank"). indication that the convenience and needs of the Notice of the application, affording opportunity community to be served are not currently being for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views Unless otherwise indicated, all banking data are as of has expired, and the Board has considered the December 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 153 met. Although there will be no immediate increase representing less than one percent of the total in the services offered by Bank, convenience and commercial bank deposits in Michigan. Acquisineeds considerations are consistent with approval. tion of Bank would increase Applicant's share of Therefore, it is the Board's judgment that the commercial bank deposits in the State only slightly retention of the shares of Bank would be in the and would not have a significant effect upon the public interest and that the application should be concentration of banking resources in Michigan. approved. Bank (deposits of $11.3 million) operates three On the basis of the record, the application is offices, one in each of three separate banking approved for the reasons summarized above. markets, the Grand Rapids banking market,2 the By order of the Board of Governors, effective Freemont-Newaygo banking market,3 and the January 12, 1977. Montcalm County banking market,4 which are the relevant geographic markets for purposes of ana- Voting for this action: Vice Chairman Gardner and lyzing the competitive effects of the proposed Governors Wallich, Coldwell, Jackson, Partee, and acquisition. Bank is the sixteenth largest of seven- Lilly. Absent and not voting: Chairman Burns. teen banking organizations operating in the Grand (Signed) GRIFFITH L. GARWOOD, Rapids banking market, the seventh largest of [SEAL] Deputy Secretary of the Board. seven banking organizations operating in the Freemont-Newaygo banking market, and the sixth largest of nine banking organizations operating in Independent Bank Corporation, the Montcalm County banking market, with 0.1, Ionia, Michigan 0.4, and 7.6 per cent, respectively, of the total deposits in commercial banks in each market.5 Order Approving Acquisition of Bank Applicant is presently represented in each of the Independent Bank Corporation, Ionia, Michi- three relevant banking markets. In the Grand gan, a bank holding company within the meaning Rapids banking market, Applicant's subsidiary of the Bank Holding Company Act, has applied bank was formed de novo in 1974, and controls for the Board's approval under § 3(a)(3) of the deposits of $2.7 million, representing 0.2 per cent Act (12 U.S.C. § 1842(a)(3)) to acquire all of the of the total deposits in commercial banks in the voting shares of the successor by consolidation to market. In the Montcalm County banking market, Western State Bank, Howard City, Michigan Applicant's subsidiary bank controls deposits of ("Bank"). The bank with which Bank is to be $9.3 million,6 representing 7.9 per cent of the total consolidated has no significance except as a means deposits in commercial banks in the market. In to facilitate the acquisition of the voting shares the Freemont-Newaygo banking market, Appliof Bank. Accordingly, the proposed acquisition of cant's subsidiary bank controls deposits of $8.8 shares of the successor organization is treated million, representing 13.9 per cent of the total herein as the proposed acquisition of the shares commercial bank deposits in the market. It is the of Bank. Board's view that consummation of this proposal Notice of the application, affording opportunity would not have any significant adverse effect on for interested persons to submit comments and existing competition in any relevant market in views, has been given in accordance with § 3(b) view of the relative size of these organizations, of the Act. The time for filing comments and views their small market shares, and the number of has expired, and the Board has considered the remaining banking alternatives in each market. application together with all comments received, Accordingly, on the basis of the facts of record, including those of the Commissioner of the Financial Institutions Bureau of the State of Michigan, in light of the factors set forth in § 3(c) of the 2 The Grand Rapids banking market is approximated by the Act (12 U.S.C. § 1842(c)). Grand Rapids Ranally Metro Area ("RMA"). Applicant, the 51st largest commercial banking 3 The Freemont-Newaygo banking market is approximated organization in Michigan, controls three banks by the southern two-thirds of Newaygo County. 4 The Montcalm County banking market is approximated by with aggregate deposits of about $74 million,1 Montcalm County and the two extreme northeastern townships of Kent County which are not included in the Grand Rapids RMA. Unless otherwise indicated, banking data are as of De- 5Deposits as of June 30, 1975. cember 31, 1975. 6Deposits as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin • February 1977 the Board concludes that consummation of the Lake View Bancorp, Inc., proposal would have a slightly adverse effect on Northbrook, Illinois competition, but the Board does not regard it as significant and believes that it is outweighed by Order Denying the convenience and needs factors discussed Formation of Bank Holding Company below. Lake View Bancorp, Inc., Northbrook, Illinois, The financial and managerial resources and fu- has applied for the Board's approval under § ture prospects of Applicant, its subsidiary banks, 3(a)(1) of the Bank Holding Company Act (12 and Bank are satisfactory. Applicant will make U.S.C. § 1842(a)(1)) of formation of a bank available additional experienced financial person- holding company through acquisition of 100 per nel to assist Bank. Considerations relating to the cent of the voting shares (less directors' qualifying banking factors are consistent with approval of the shares) of Lake View Trust and Savings Bank, application. Applicant states that its affiliation Chicago, Illinois ("Bank"). with Bank would result in Bank's being able to Notice of the application, affording opportunity draw upon Applicant's financial and managerial for interested persons to submit comments and resources and, thus, should provide Bank with views, has been given in accordance with § 3(b) assistance in improving the quality of its services of the Act. The time for filing comments and views to the public, including the addition of data prohas expired, and the Board has considered the cessing services, increased real estate mortgage application and all comments received in light of lending, larger lines of credit, and the daily comthe factors set forth in § 3(c) of the Act (12 U.S.C. putation of interest on passbook savings accounts. § 1842(c)). Considerations relating to the convenience and Applicant is a recently chartered, nonoperating needs of the community to be served lend some corporation organized under the laws of Delaware weight toward approval of the application and for the purpose of becoming a bank holding comoutweigh in the public interest the slightly adverse pany through acquisition of Bank ($329.7 million competitive effects that might result from con- in deposits).1 Upon acquisition of Bank, Applicant summation of the proposal. Based upon the forewould control the 12th largest banking organigoing and other considerations reflected in the zation in the State of Illinois and would control record, it is the Board's judgment that the proapproximately 0.5 per cent of total deposits in posed acquisition is in the public interest and that commercial banks in the State. the application should be approved. Bank, located approximately 5 miles north of On the basis of the record, the application is downtown Chicago, is the 11th largest of 296 approved for the reasons summarized above. The commercial banks located in the Chicago banking transaction shall not be made (a) before the thir- market2 and holds approximately 0.8 per cent of tieth calendar day following the effective date of the total commercial bank deposits in the market. this Order or (b) later than three months after the The proposed transaction involves the transfer of effective date of this Order, unless such period ownership of Bank from an individual to a coris extended for good cause by the Board, or by poration owned by the same individual.3 Applithe Federal Reserve Bank of Chicago pursuant to cant's principal, the present owner of Bank, is also delegated authority. the owner and director of two registered bank By order of the Board of Governors, effective January 3, 1977. *A11 banking data are as of December 31, 1975. 2The Chicago banking market, the relevant geographic mar- Voting for this action: Vice Chairman Gardner and ket for purposes of analyzing the competitive effects of the Governors Cold well and Lilly. Voting against this ac- proposed transaction, is approximated by all of Cook and tion: Governor Wallich. Absent and not voting: Chair- DuPage Counties and the southern portion of Lake County. man Burns and Governors Jackson and Partee. 3Prior to the sale of Bank to William N. Lane, Applicant's principal, Bank was owned by N L Industries, Inc., New York, New York ("NL"), a diversified manufacturing company, which became a bank holding company by virtue of the 1970 Amendments to the Act. On May 5, 1972, NL filed an irrevocable declaration to divest its interest in Bank by year-end (Signed) GRIFFITH L. GARWOOD, 1980. Sale of Bank to Applicant's principal is intended to [SEAL] Deputy Secretary of the Board. comply with that commitment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 155 holding companies and an additional bank.4 Each zations under the standards that are normally apof these organizations operates in the Chicago plicable in analyzing acquisitions by multibank banking market. Given the size of the banks in- holding companies. The application of multibank volved and the structure of the market, it is the holding company standards in such circumstances Board's view that the combination of these entities appears appropriate because of the interdepenwould have no significant adverse effects on com- dence of the banks in a chain of commonly-owned petition. one-bank holding companies and the distinct pos- Moreover, since the subject proposal is essen- sibility that the financial and managerial resources tially a corporate reorganization and Applicant has of one or more of the banks in the chain may no subsidiaries, it does not appear that consum- be used to support the operations of other members mation of the proposal would have any adverse in the banking group.5 effect upon existing or potential competition nor As part of this proposal, Applicant would asincrease the concentration of banking resources, sume the debt that its principal incurred in his or have any other adverse effect upon any other acquisition of Bank's shares. Thus, Applicant banks in the relevant market. Thus, the Board proposes to incur a high level of acquisition debt, concludes that the competitive considerations are $27.6 million, which it expects to service over consistent with approval of the application. a 12-year period through Bank dividends that Under § 3(c) of the Act, the Board is required would appear to be in excess of half of Bank's to consider the financial and managerial resources projected annual net income, as well as through and future prospects of the proposed bank holding cash payments made by Bank and retained by company involved and the bank to be acquired. Applicant to the extent that they represent savings With respect to the subject application, it appears from filing consolidated tax returns. The projected that the financial and managerial resources and earnings for Bank, in the Board's view, would future prospects of Applicant are entirely depend- not provide Applicant with the necessary financial ent upon Bank. With respect to the managerial flexibility to meet its annual debt servicing reconsiderations of Applicant, they are regarded as quirements as well as any unexpected problems generally satisfactory. In acting on one-bank that might arise at Bank. Moreover, if Bank's rate holding company formations, the Board has been of growth approaches the growth rate of banks in less restrictive than otherwise with respect to fi- its market area,6 total capital funds of Bank as nancial considerations in cases that involve a cur- related to its total assets would become insufficient rent or prospective owner-chief executive estab- because of Applicant's inability to augment Bank's lishing a holding company to hold the individual's capital due to its substantial debt servicing redirect equity interest in the bank. The Board re- quirements. gards such a policy as being in the public interest Furthermore, the Board notes with concern the in order to facilitate management succession on highly leveraged condition of the two other onethe community level at the Nation's many smaller, bank holding companies owned by Applicant's independent banks. However, the Board has long principal as well as the high level of debt incurred held that, as a general matter, such a less restric- by Applicant's principal in acquiring Pioneer Bank tive policy with respect to financial considerations and Trust Co., Chicago, Illinois. It is also noted should not apply to those situations where the that the terms of the loan used to finance the individuals are involved in more than a single one-bank holding company, such as those .situations involving individuals that are engaged in establishing a series or chain of one-bank holding 5 See Board Order dated January 15, 1974, denying the companies. In such situations, the Board believes application of B H Co., Inc., Hardin, Montana (60 Federal that it is more appropriate to analyze such organi- Reserve BULLETIN 123 (1974)); Board Order dated October 17, 1975, approving the application of Commercial Bankshares, Inc., Grand Island, Nebraska (61 Federal Reserve BULLETIN 807 (1975)); and Board Order dated June 14, 1976, denying the application of Nebraska Banco, Inc., Ord, Ne- 4Northbrook Bancorp, Inc., which controls Northbrook braska (62 Federal Reserve BULLETIN 638 (1976)). Trust & Savings Bank, Northbrook, Illinois ($54.9 million in 6 Applicant has projected Bank's annual growth in assets over deposits) and Northwestco, Inc., which controls Northwest the debt-retirement period at 4.5 per cent. The Board notes National Bank of Chicago ($312.4 million in deposits); and that over the last ten years the other banks in the market area Pioneer Bank and Trust Co., Chicago, Illinois ($303.5 million of Bank have experienced an average compound rate of asset in deposits). growth of 11.2 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin • February 1977 purchase of Bank's shares are dependent upon a Company Act, has applied for the Board's apcompensating balance provided by Bank, an action proval under § 3(a)(3) of the Act (12 U.S.C. § which the Board regards as an improper use of 1842(a)(3)) to retain 5,509 voting shares (approx- Bank funds. On the basis of the foregoing and imately .42 per cent) of Nevada National Bancorother facts of record, the Board is of the view poration, Reno, Nevada ("NNB"), a one-bank that it would not be in the public interest to holding company that controls Nevada National approve the formation of a bank holding company Bank, Reno, Nevada ("Bank").1 with an initial debt structure that could result in Notice of the application, affording opportunity the weakening of Bank's overall financial condi- for interested persons to submit comments and tion. Accordingly, the Board concludes that the views, has been given in accordance with § 3(b) considerations relating to the banking factors of the Act. The time for filing comments and views weigh against approval of the application. has expired, and the Board has considered the As stated previously, the proposed formation of application and all comments received, including Applicant merely represents a restructuring of those submitted by the Comptroller of the Cur- Bank's ownership. No significant changes in rency, in light of the factors set forth in § 3(c) Bank's operations or in the services offered to of the Act (12 U.S.C. § 1842(c)). Bank's customers are contemplated. Conse- Seilon currently owns 39.4 per cent of the quently, considerations relating to the convenience voting shares of NNB, a one-bank holding comand needs of the community to be served are pany that owns 100 per cent of the voting shares consistent with, but lend no weight toward ap- (less directors' qualifying shares) of Bank.2 Bank proval of the application. (deposits of $192.6 million) is the fourth largest On the basis of all of the circumstances con- of eight commercial banking organizations in Necerning this application, the Board concludes that vada and, through its 24 banking offices, controls the financial considerations involved in this pro- approximately 10.2 per cent of the total deposits posal present adverse circumstances bearing upon held by commercial banks in that State.3 Inasmuch the financial resources and future prospects of both as Seilon's proposal involves the retention of vot- Applicant and Bank. Such adverse factors are not ing shares of a bank holding company that it outweighed by any procompetitive effects or by already controls, the proposed retention would benefits that would result in serving the conven- eliminate neither existing nor potential competiience and needs of the community. Accordingly, tion, and would not increase the concentration of it is the Board's judgment that approval of the banking resources in any relevant area. Therefore, application would not be in the public interest and competitive considerations are consistent with apthat the application should be denied. proval of the application. On the basis of the record, the application is The Board has indicated on previous occasions denied for the reasons summarized above. that it believes a bank holding company should By order of the Board of Governors, effective constitute a source of both financial and managerial January 3, 1977. strength to its subsidiary bank(s). Accordingly, in acting upon any application under the Act, the Voting for this action: Vice Chairman Gardner, and Board will closely examine the financial condition, Governors Wallich, Cold well, and Lilly. Absent and not voting: Chairman Burns, and Governors Jackson managerial resources, and future prospects of an and Partee. applicant and its subsidiary bank(s) with these (Signed) GRIFFITH L. GARWOOD, [SEAL] Deputy Secretary of the Board. formerly known as First Bancorporation. 2 Seilon became a bank holding company on December 31, 1970, by virtue of its ownership of 36.5 per cent of the voting shares of NNB and the 1970 Amendments to the Act. Seilon Seilon, Inc., engages, through its subsidiaries, in various activities including Toledo, Ohio banking and personal property leasing. In addition, it engages in manufacturing, selling, and distributing agricultural ma- Order Denying Retention of chinery in the United States and abroad, which activities are Additional Shares of Bank Holding Company impermissible for bank holding companies and must be divested by December 31, 1980, pursuant to § 4(a)(2) of the Seilon, Inc., Toledo, Ohio, a bank holding Act. 3 All banking data are as of December 31, 1975, unless company within the meaning of the Bank Holding otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 157 factors in mind. Based upon an evaluation of such control more than 5 per centum of the voting factors with respect to this application, the Board shares of such bank. ..." has determined that denial of this application is It appears from the facts of record in this case warranted. that Seilon, without prior Board approval, ac- With respect to the financial resources and future quired 5,509 voting shares of NNB that are the prospects associated with this application, the subject of this retention application in settlement Board notes the continued existence of some of of a lawsuit threatened by two shareholders of the same concerns that it expressed in its Order NNB. These voting shares were acquired, at a cost of July 20, 1972, denying Seilon's application to of $52,500, in three installments over a one-year acquire up to an additional 63.5 per cent of NNB.4 period.6 It appears that at the time of the acquisi- In this regard, Seilon's overall financial condition tion in question, Seilon was fully aware of the still does not permit it to be a source of financial Act's requirement of prior Board approval. strength to Bank. Rather, based upon an examina- Despite this knowledge, and without any obligation of all the facts of record, the Board concludes tion to do so, Seilon acquired the 5,509 voting that Seilon, through NNB, has sought to improve shares of NNB. In its application, Seilon has stated its overall financial condition at the expense of that: Bank through liberal dividends drawn from Bank. It appears that such a continued program could We were familiar as our application in hinder Bank's financial condition. Therefore, the 1971 [to acquire an additional 63.5 per cent Board concludes that banking factors weigh of the voting shares of NNB] indicates that against approval of this application. tender offers or market purchases of First Bancorporation [now known as NNB] com- With respect to the managerial resources assomon stock by Seilon required the prior apciated with this application, the Board is conproval of the Federal Reserve System. We cerned, as it was in its denial Order in 1972, with were not aware that the . . . Act went so absentee management of the nature involved in far as to prohibit management from exercis- Seilon's structure. Furthermore, as the Board has ing its responsibilities in the resolution of previously indicated, the reference to "managerial litigation by requiring the prior approval of resources" does not refer solely to the business the Federal Reserve where the acquisition abilities of management or to its past financial of a miniscule number of shares is a part success or failure but also to management's dispoof a larger settlement of litigation problem. sition to conduct the affairs of the bank holding company in accordance with the requirements of In assessing the managerial resources of an law.5 applicant the Board must consider all the factors Section 3(a)(3) of the Act states that it shall that bear upon the management's competence, be unlawful, except with the prior approval of the quality, and disposition to conduct in accordance Board "for any bank holding company to acquire with the requirements of law the affairs of any direct or indirect ownership or control of any bank holding company seeking to acquire, or to voting shares of any bank if, after such acquisition, such company will directly or indirectly own or harmony with the Bank Merger Act. The Federal Home Loan Bank Board has had occasion in a similar context to consider the scope of the "managerial resources" standard as contained 4 37 Fed. Reg. 15052 (1972); 58 Federal Reserve BULLETIN in that section of the National Housing Act dealing with savings 729 (August 1972). and loan holding companies. (12 U.S.C. § 1730a(e)(2)). The 5 See the Board's order dated July 29, 1976, denying the Bank Board concluded that its standard was adopted from the application by Florida National Banks of Florida, Inc., Jack- Bank Holding Company Act and that the phrase "managerial sonville, Florida, to acquire Citizens Bank of Bunnell, Bunnell, resources" encompasses considerations relating to the integrity Florida. 41 Fed. Reg. 33334 (1976); 1976 Federal Reserve of management. Opinion and Order of the Federal Home Loan BULLETIN 696. As originally enacted, § 3(c)(3) of the Bank Bank Board in the matter of the Joint Applications of Fidelity Holding Company Act provided that among the factors to be Financial Corporation and Fidelity Savings and Loan Associconsidered by the Board is the "character of [the man- ation, Sacramento, California, and Six Rivers Savings and agement.]" Also see Senate Report No. 1095, 84th Cong., Loan Association, Eureka, California (Resolution No. 73- 1st Sess., at page 10, accompanying the 1956 Act. The present 1772, December 7, 1973), at page 20. § 3(c) of the Act includes the same standard without any 6The shares were purchased as follows: 2,369 shares on substantive change in its meaning having been made by the November 1, 1973; 1,570 shares on May 1, 1974; and 1,570 1966 Amendments to the Act that brought this section into shares on November 1, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin • February 1977 retain, control of a bank or of any other bank siderations are not sufficient to outweigh the adholding company. The Board previously has stated verse managerial and banking factors associated that when it comes to the Board's attention that with this proposal. Accordingly, it is the Board's an acquisition has been made, or activities have judgment that approval of the application would been commenced, without the requisite prior ap- not be in the public interest and that the application proval of the Board, whether or not such violation should be denied. of the law appears to have been "willful," such On the basis of the record, and in light of the conduct may reflect so adversely upon the mana- factors set forth in § 3(c) of the Act, the application gerial factors in connection with an application for is denied for the reasons summarized above. Seipermission to retain the illegally acquired shares lon is hereby ordered to take all necessary steps or activity that the conduct, in and of itself, to divest the 5,509 voting shares of NNB that were constitutes grounds for denial of such an applica- illegally acquired by Seilon no later than thirty tion. days after the effective date of this Order. Section 3(a) of the Act is explicit that prior By order of the Board of Governors, effective Board approval is required for any acquisition by January 14, 1977. a company of voting shares of a bank in which Voting for this action: Vice Chairman Gardner and it owns less than a majority interest if, thereafter, Governors Wallich, Cold well, Jackson, and Partee. that company will own or control more than 5 per Absent and not voting: Chairman Burns and Governor cent of the bank's voting shares. While the Board Lilly. recognizes that Seilon was desirous of avoiding (Signed GRIFFITH L. GARWOOD, potential legal expenses in the defense of a threat- [SEAL] Deputy Secretary of the Board. ened lawsuit, the Board notes that the two shareholders involved were shareholders of NNB and not of Seilon and that Seilon was not obligated to acquire the shares in question. In view of the fact that Seilon was fully aware of the Act's Southeast Banking Corporation; requirement of prior Board approval in 1972 when Exchange Bancorporation, Inc., it sought to acquire 63.5 per cent of NNB's voting Miami, Florida shares; that the Board had issued an order in 1972 denying Seilon's previous application because of Order Approving Acquisition of Banks less than satisfactory financial and managerial considerations at that time; and that Seilon was Southeast Banking Corporation, Miami, Florida unable to substantiate its position that acquisitions ("Southeast"), a bank holding company within of small amounts of shares in settlement of threat- the meaning of the Bank Holding Company Act ened lawsuits were exempt from the Act's prior ("Act"), has applied for the Board's approval approval requirements; the Board concludes that under § 3(a)(3) of the Act (12 U.S.C. § insofar as this application is concerned the man- 1842(a)(3)) to acquire 80 per cent or more of the agement of Seilon has not demonstrated a disposi- voting shares of (1) The Exchange Bank of North tion to conform the conduct of Seilon's affairs to Winter Haven, Winter Haven, Florida ("Winter the requirements of the Act. As was mentioned Haven Bank"); and (2) The Exchange Bank of earlier, § 3(a) of the Act is explicit as to acquisi- Westshore, Tampa, Florida ("Westshore Bank"), tions of voting shares for which prior Board ap- both of which are presently controlled by Exproval is required. When an acquisition of voting change Bancorporation, Inc., Tampa, Florida shares is made without obtaining such prior Board ("Exchange"). Southeast proposes to acquire approval, under circumstances such as those pre- Winter Haven Bank through its wholly-owned sented here, the Board believes that it should not subsidiary, Southeast Acquisition Company. approve an application to retain the illegally ac- At the same time, Exchange, a bank holding quired shares and, thereby, allow the offending company within the meaning of the Act, has party to reap the fruits of its violation. applied for the Board's prior approval under § There is evidence in the record that the conven- 3(a)(3) of the Act to acquire 80 per cent or more ience and needs of the community are currently of the voting shares of (1) Southeast Bank of Gulf being adequately served by Bank. Therefore, Gate, Sarasota, Florida ("Gulf Gate Bank"); and within the context of this application, these con- (2) Southeast National Bank of Manatee, Braden- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 159 ton, Florida ("Manatee Bank"), both of which ently exists between Southeast's subsidiaries, both are presently controlled by Southeast.1 bank and nonbank, and Winter Haven Bank. On Notice of the applications, affording opportunity the other hand, acquisition of Winter Haven Bank for interested persons to submit comments and by Southeast should have some positive effects on views, has been given in accordance with § 3(b) competition by reducing the concentration of of the Act. The time for filing comments and views banking resources controlled by the market's larghas expired, and the Board has considered the est banking organization and introducing an addiapplications and all comments received in light of tional competitor. the factors set forth in § 3(c) of the Act (12 U.S.C. Westshore Bank holds deposits of approxi- § 1842(c)). mately $7.4 million, representing 0.4 per cent of the total deposits in commercial banks in the Applications of Southeast Tampa banking market,4 and ranks as the 31st Southeast, the largest banking organization in largest of 43 banks in the market. The three largest Florida, controls 47 banks with aggregate deposits banking organizations in the market control more of approximately $2.7 billion, representing 10.7 than 59 per cent of total commercial bank deper cent of the total deposits in commercial banks posits in the market. Southeast currently controls in the State.2 Acquisition of Winter Haven Bank one subsidiary bank in the Tampa market, and Westshore Bank would not significantly in- which holds deposits of approximately $26 milcrease Southeast's share of State deposits, nor lion, representing 1.5 per cent of the market's total would it alter Southeast's ranking among other deposits, and ranks as the market's 19th largest State banking organizations. Approval of the sub- bank. Although consummation of Southeast's ject applications to acquire Winter Haven Bank proposal to acquire Westshore Bank would elimiand Westshore Bank would not result in a signifi- nate some existing competition, the Board believes cant increase in the concentration of banking re- that on balance, the proposal should have a posisources in Florida. tive effect on competition in the Tampa banking Winter Haven Bank holds deposits of approxi- market. In view of the relatively small size of both mately $5.2 million, representing 1.6 per cent of Westshore Bank and Southeast's present subsidithe total deposits in commercial banks in the East ary bank in the market and the number of compet- Polk County banking market,3 and ranks as the ing banks in the market, the existing competition 13th largest of 15 banks operating in that market. that would be eliminated would be insignificant The three largest banking organizations operating in relation to the market. Furthermore, the amount in this market control approximately 69 per cent of competition existing between Southeast's mortof the market's commercial bank deposits. Ex- gage banking subsidiary and Westshore Bank is change is the largest banking organization in the also considered insignificant. However, the acquimartket, controlling 31.6 per cent of total deposits sition of Westshore Bank by Southeast would in commercial banks in the market. The office of decrease slightly the level of concentration of Applicant's subsidiary bank closest to Winter banking resources controlled by the market's larg- Haven Bank is located approximately 43 miles est holding companies. away in a separate banking market. It appears from On the basis of the foregoing, the Board conthe record that no meaningful competition pres- cludes that consummation of Southeast's proposals to acquire Winter Haven Bank and Westshore Bank from Exchange would not have any significant adverse effects on existing or potential competition in any relevant area, and that competitive 1 Southeast and Exchange propose to accomplish the subject acquisitions through the exchange of all of the voting shares considerations are consistent with approval of the of Winter Haven Bank and Westshore Bank now held by applications. Exchange for all of the voting shares of Gulf Gate Bank and With respect to the financial and managerial Manatee Bank now held by Southeast. In addition, Exchange would also acquire approximately 38,000 shares of the com- resources of Southeast and its subsidiaries, the mon stock of Southeast, which represents 0.3 per cent of Southeast's total outstanding voting shares. 2 All banking data are as of December 31, 1975. 3The East Polk County banking market, the relevant geographic market for purposes of analyzing the competitive 4 The Tampa banking market is approximated by all of effects of the proposal to acquire Winter Haven Bank, is Hillsborough County and the Land O'Lakes area of Pasco approximated by the eastern half of Polk County, Florida. County, all in Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin • February 1977 Board denied an application by Southeast to ac- 16 banks operating in the market. The three largest quire another bank in March of last year on the banking organizations in the market control apbasis that Southeast should not divert any of its proximately 86 per cent of the market's total financial or managerial resources from its existing deposits. Southeast is the second largest banking subsidiaries for purposes of making an acquisi- organization in the market controlling more than tion.5 However, the subject proposal is to be one-third of the market's deposits. The office of accomplished through an exchange of shares a subsidiary bank of Exchange closest to Gulf Gate without any cash outlay or increased indebtedness Bank is located approximately 60 road miles away and the two subject banks would not divert Appli- in a separate banking market. It appears that there cant's attention or resources from its present sub- is no meaningful competition presently existing sidiaries because of the generally satisfactory fi- between any of Exchange's subsidiary banks and nancial and managerial resources of the two banks. Gulf Gate Bank. Although Exchange could enter Therefore, the Board concludes that the banking this market on a de novo basis, the subject proposal factors are consistent with approval of the appli- would have a positive effect on competition by cations . reducing slightly the concentration of banking re- Southeast proposes to generally expand and sources held by the market's second largest bankimprove the services currently available to cus- ing organization and providing a foothold entry tomers of the two banks; thus, considerations for a new competitor in the market without elimirelating to the convenience and needs of the com- nating any independent banks that could be acmunities to be served are consistent with approval quired by other potential entrants in the future. of the applications. Accordingly, it is the Board's Manatee Bank holds deposits of approximately judgment that consummation of the proposal to $3.5 million, representing 0.9 per cent of the total acquire Winter Haven Bank and Westshore Bank deposits in commercial banks in the Bradenton from Exchange would be in the public interest and banking market,7 and ranks as the 9th largest of that the subject applications should be approved. 12 banks operating in the market. The three largest banking organizations in the market control ap- Applications of Exchange proximately 64 per cent of the market's total deposits. Southeast is the second largest banking Exchange, the 13th largest banking organization organization in the market controlling almost 22 in Florida, controls 14 banks with aggregate de- per cent of total market deposits. The office of posits of approximately $573 million, representing a subsidiary bank of Exchange closest to Manatee 2.3 per cent of the total deposits in commercial Bank is located approximately 45 road miles away banks in the State. Acquisition of Gulf Gate Bank in a separate banking market. It appears that no and Manatee Bank would not significantly increase meaningful competition presently exists between Exchange's share of State deposits, nor would it any of Exchange's subsidiary banks and Manatee alter Exchange's ranking among other State bank- Bank. Again, the acquisition of Manatee Bank ing organizations. Approval of the subject appli- from Southeast should have positive effects on cations to acquire Gulf Gate Bank and Manatee competition in the Bradenton market by slightly Bank would not result in a significant increase in decreasing the concentration of resources held by the concentration of banking resources in Florida. the market's second largest banking organization Gulf Gate Bank holds deposits of approximately and introducing an alternative source of banking $8.5 million, representing 1.5 per cent of the total services without eliminating any independent deposits in commercial banks in the Sarasota banks that could be acquired by potential entrants banking market,6 and ranks as the 13th largest of to the market in the future. The financial and managerial resources of Exchange, its subsidiaries, Gulf Gate Bank and 5 Board Order dated March 16, 1976, denying the application Manatee Bank are considered generally satisof Southeast to acquire Worth Avenue National Bank, Palm factory and the future prospects for each appear Beach, Florida. In addition, on November 17, 1975, the Board approved the acquisition by Southeast of the financially troubled Palmer Bank Corporation and its subsidiaries, all of Sarasota, Florida. 6 The Sarasota banking market is approximated by the northern portion of Sarasota County and the extreme southern 7 The Bradenton banking market is approximated by all of portion of Manatee County, all in Florida. Manatee County, Florida, except the extreme southern portion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 161 favorable. Thus, the banking factors are consistent 3(a)(5) of the Act (12 U.S.C. § 1842(a)(5)) to with approval of the applications. acquire through merger Central Bankshares Cor- Exchange proposes to offer specialized loan poration ("Corporation"), Jonesboro, Georgia, a services to customers of Gulf Gate Bank and one-bank holding company that owns all the voting Manatee Bank. In addition, Exchange plans to shares of Central Bank and Trust Company provide both banks with staff training and man- ("Bank"), Jonesboro, Georgia. As part of the agement development programs. Considerations proposed transaction Applicant would acquire all relating to the convenience and needs of the com- the voting shares of Corporation's nonbank submunities to be served are consistent with approval sidiary, Central Bankshares Equity Corporation of the applications. It is the Board's judgment that ("Equity"), Jonesboro, Georgia, and would acconsummation of the proposed acquisition of Gulf quire direct ownership and control of the leasing Gate Bank and Manatee Bank from Southeast activities now engaged in directly by Corporation, would be in the public interest and that the appli- for which acquisitions Applicant has applied for cations should be approved. Board approval under section 4(c)(8) of the Act It should be emphasized that the Board will (12 U.S.C. § 1843(c)(8)). Both the leasing activiscrutinize with special care any proposal that inties of Corporation and the activities of Equity, volves the exchange of bank subsidiaries between which is engaged in making loans secured bank holding companies. Furthermore, the Board principally by second mortgages on single-family will only approve such a proposal if it would have residences, have been determined by the Board a positive competitive effect, as is present in the by regulation to be activities permissible for bank instant proposals, or a beneficial effect upon the holding companies under section 4(c)(8) of the convenience and needs of the communities to be Act. served sufficient to clearly outweigh any possible Notice of the applications, affording opportunity anticompetitive effects. Accordingly, on the basis for interested persons to submit comments and of the record, the subject applications are approved views, has been given in accordance with sections for the reasons summarized above. The transac- 3 and 4 of the Act (41 Federal Register 46650, tions shall not be made (a) before the thirtieth 46651). The time for filing comments and views calendar day following the effective date of this has expired, and the Board has considered the Order, or (b) later than three months after the applications and all comments received in light of effective date of this Order, unless such period the factors set forth in section 3(c) of the Act and is extended for good cause by the Board, or by the considerations specified in section 4(c)(8) of the Federal Reserve Bank of Atlanta pursuant to the Act. delegated authority. Applicant, the third largest banking organization By order of the Board of Governors, effective in Georgia, directly controls Trust Company Bank, January 10, 1977. Atlanta, Georgia, which has deposits of $796 Voting for this action: Vice Chairman Gardner and million, and indirectly controls five other banks Governors Wallich, Coldwell, Partee, and Lilly. Absent with aggregate deposits of approximately $400 and not voting: Chairman Burns and Governor Jackson. million.1 The aggregate deposits of Applicant's six (Signed) GRIFFITH L. GARWOOD, subsidiary banks represent about ten per cent of [SEAL] Deputy Secretary of the Board. the total deposits in commercial banks in the State. Acquisition of Bank, through merger of Corporation into Applicant, would increase Applicant's share of the commercial bank deposits in the State Trust Company of Georgia, by 0.14 per cent and would not have a significant Atlanta, Georgia effect upon the concentration of banking resources in Georgia or alter Applicant's statewide ranking. Order Approving Acquisition Bank is the 25th largest of 36 banking organiof Bank Holding Company and its Nonbank Subsidiary and Activities Trust Company of Georgia ("Applicant"), Atlanta, Georgia, a bank holding company within *A11 banking and market data are as of December 31, 1975. On December 7, 1976, the Board approved Applicant's acquithe meaning of the Bank Holding Company Act, sition of an additional bank, Security National Bank, Smyrna, has applied for the Board's approval under section Georgia, which holds deposits of $17.4 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • February 1977 zations in the Atlanta banking market2 and holds range and efficiency of Bank's trust services; will deposits of $13.7 million, representing approxi- cause Bank to apply for new branches and for mately 0.2 per cent of the total deposits in com- expansion of the services offered at an existing mercial banks in the market. Trust Company Bank office; and will increase the capabilities of Bank, Applicant's lead b^nk, and Security Na- Bank's existing 24-hour tellers. Considerations tional Bank, Applicant's acquisition of which the relating to convenience and needs of the commu- Board recently approved, also operate in the At- nity to be served accordingly lend some weight lanta banking market. Together they comprise the toward approval of the application to acquire Corthird largest banking organization in the market poration's interest in Bank, sufficient to outweigh with approximately 14 per cent of the total deposits the slightly adverse effects on banking competition in commercial banks in the market. Trust Com- that might result from consummation of this propany Bank has 37 branches, in DeKalb and Fulton posal. Counties; Security National Bank has two With respect to the nonbanking activities of branches, in Cobb County; and Bank has 4 Corporation and Applicant, consummation of this branches in Clayton County and one limited bank- proposal would eliminate some direct competition ing office there. Although it appears that consum- in three nonbanking activities, but the Board conmation of the proposed transaction would elimi- cludes that the effect of eliminating Corporation's nate some existing competition between Bank and nonbanking competition in the Atlanta banking certain of Applicant's subsidiary banks, the Board market would be negligible. Corporation and Apnotes that the competition that would be eliminated plicant's lead bank both engage in leasing activiis not of a significant magnitude and that numerous ties in the market, but Corporation has not actively independent banking organizations would remain engaged in leasing, and has only two relatively in the Atlanta market following the merger. In small leases on its books. Applicant's lead bank addition, Georgia law prohibits Applicant from and its mortgage banking subsidiary originate perbranching into or acquiring a de novo bank in manent loans secured by mortgages on residential Clayton County, and Bank, as the smallest of the real property in the Atlanta banking market, and six commercial banks in Clayton County, is the together accounted for 1.1 per cent of such mortsmallest vehicle that is available to Applicant as gages recorded in 1975. Bank has also engaged a means of entry into that county. Accordingly, in this activity, but on an extremely limited scale, Applicant's acquisition of Bank through this pro- and originated no such mortgages in 1975. Finally, posal is regarded as a foothold entry into Clayton both Bank and Equity presently compete with County. In view of the foregoing, the Board con- Applicant's subsidiaries in the origination of loans cludes that the proposed merger would have only secured by second mortgages on residential real a slightly adverse effect on banking competition. property, but in 1975 Bank and Equity together The financial and managerial resources of Cor- originated only $500,000 in such loans, which is poration, Applicant, and their respective subsidi- an insignificant part of the market's second mortaries, and their future prospects are regarded as gage originations. There is no evidence in the generally satisfactory, and considerations relating record indicating that acquisition by Applicant of to banking factors are consistent with approval of these nonbanking activities would result in an the application. Applicant intends to offer services undue concentration of resources, unfair competinot now available to customers of Bank and to tion, conflicts of interest, unsound banking pracimprove other services presently offered by Bank. tices, or other adverse effects on the public inter- Following consummation of the acquisition, Bank est. To the contrary, Equity and Corporation's would make available to its customers reduced leasing business, through affiliation with Appliminimum deposits on time certificates of deposit cant, may be expected to be better able to obtain and a more favorable method of compounding funds as necessary, and to draw on Applicant's interest on passbook savings accounts. In addition, expertise in nonbanking fields, resulting in the Applicant will assign a trust expert to improve the provision of more accessible and competitive leasing and mortgage lending service to the community, and the Board regards such considerations as being in the public interest. 2The Atlanta banking market is approximated by Fulton, Based on the foregoing and other considerations DeKalb, Cobb, Gwinnett, Clayton, Douglas, Henry, and reflected in the record, it is the Board's judgment Rockdale Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 163 that considerations affecting the competitive fac- services not already available in the market, and tors under section 3(c) of the Act and the balance I am unable to conclude that the considerations of the public interest factors set forth in section reflected in the record relating to the convenience 4(c)(8) of the Act both favor approval of Appli- and needs of the community to be served clearly cant's proposal. outweigh the adverse competitive effects that con- Accordingly, the applications are approved for summation of Applicant's proposal would have. the reasons summarized above. The merger shall Accordingly, for the foregoing reasons, it is my not be consummated before the thirtieth calendar judgment that the proposed transaction would not day following the effective date of this Order or be in the public interest and that the application later than three months after the effective date of should be denied. this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Atlanta pursuant to delegated authority. ORDER UNDER SECTION 4(C)(8) The approval of Applicant's nonbanking applica- OF BANK HOLDING COMPANY ACT tions is subject to the conditions prescribed in section 225.4 of Regulation Y and to the authority Hawaii Bancorporation, Inc., of the Board to require reports by, and make Honolulu, Hawaii examinations of, holding companies and their Order Approving subsidiaries, and to require such modifications or Acquisition of Resource Financial Corp. termination of the activities of a bank holding company or any of its subsidiaries as the Board Hawaii Bancorporation, Inc., Honolulu, Hawaii finds necessary to assure compliance with the ("Applicant"), a bank holding company within provisions and purposes of the Act and the Board's the meaning of the Bank Holding Company Act regulations and orders issued thereunder, or to ("Act"), has applied for the Board's approval prevent evasion thereof. under § 4(c)(8) of the Act (12 U.S.C. § 1843 By order of the Board of Governors, effective (c)(8)) and § 225.4(b)(1) of the Board's Regulation January 3, 1977. Y (12 C.F.R. § 225.4(b)(1)), to acquire shares of Resource Financial Corp., Honolulu, Hawaii Voting for this action: Vice Chairman Gardner, Gov- ("Company"), a company that will engage de ernors Wallich and Lilly. Voting against this action: Governor Coldwell. Absent and not voting: Chairman novo in the activity of operating an industrial loan Burns and Governors Jackson and Partee. company. Such activity has been determined by (Signed) GRIFFITH L. GARWOOD, the Board to be closely related to banking (12 C.F.R. § 225.4(a)(2)). [SEAL] Deputy Secretary of the Board. Applicant initiated the instant application by furnishing the Federal Reserve Bank of San Francisco a copy of a notice of the instant proposal Dissenting Statement of Governor Coldwell in proper form and timely published in a newspa- I would deny the application of Trust Company per of general circulation in Honolulu, Hawaii, of Georgia to acquire by merger Central Bank- the community to be served. Adverse comments shares Corporation, for the reasons recently ex- of a substantive nature from the Hawaii Consumer pressed in my dissenting statement regarding Trust Finance Association ("Protestant") were received Company of Georgia's application to acquire Se- by the Reserve Bank. The Reserve Bank informed curity National Bank.1 Applicant's acquisition of Applicant that the proposal should not be consuman additional bank in the Atlanta banking market mated unless specifically authorized by the Board. would result in a further concentration of banking Notice of the application, affording opportunity resources and adverse effects on competition, for interested persons to submit comments and without benefiting the convenience and needs of views on the public interest factors, has been duly that market to any important extent. Applicant's published (41 Federal Register 37420). The time proposal would not result in the introduction of for filing comments and views has expired, and the Board has considered the application and all comments received, including those of Protestant 1 Order approving application of Trust Company of Georgia and First Hawaiian, Inc., Honolulu, Hawaii to acquire Security National Bank, Smyrna, Georgia, December 7, 1976, 41 Federal Register 54541. ("FHI"), a bank holding company, in the light Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • February 1977 of the public interest factors set forth in § 4(c)(8) tant, a significant portion of these borrowed funds of the Act (12 U.S.C. § 1843(c)(8)). is derived from Bank of Hawaii and FHI's subsid- Applicant is the largest banking organization in iary bank. Protestant asserts that the creation of the State of Hawaii, and controls Bank of Hawaii, Company may encourage Bank of Hawaii to re- Honolulu, Hawaii, which holds deposits of ap- strict the amount and terms of credit available to proximately $1.1 billion, representing approxi- Protestant's members. Bank of Hawaii, as of mately 38.8 per cent of total deposits in the eight March 31, 1976, held 31% ($7.5 million) of loans commercial banks located in Hawaii.1 Through to real estate investment trusts and mortgage comnonbanking subsidiaries, Applicant is also en- panies made by Hawaii's eight banks and 55.2% gaged in personal property leasing and consumer ($11.8 million) of loans to other nondepository finance activities. FHI, the second largest Hawai- financial institutions made by Hawaii's eight ian bank holding company, controls approximately banks. The majority of loans to industrial loan 32 per cent of market deposits. In 1975, the Board companies are encompassed within the latter approved FHI's acquisition of an established Ha- group. Were Bank of Hawaii and FHI's subsidiary waiian industrial loan company, Hawaii Thrift and bank to restrict credit to Protestant's members, Loan, Inc. ("HTL"), (61 Federal Reserve BUL- many of these companies, according to Protestant, LETIN 524 (1975)). At that time HTL was under could not turn to mainland banks for credit, but severe financial pressure and was daily experienc- would have to resort to the remaining six Hawaiian ing substantial withdrawals of funds by its invest- banks for funds. Of these banks, two have lending ment certificate holders. limits below $1 million and the other four have Company, a proposed industrial loan company, lending limits below $2 million. Further, Proteswill engage in the activity of making commercial, tant asserts that the dependency of its members mortgage, and consumer loans pursuant to Chapter on Applicant's subsidiary bank for funds would 408 of the Hawaii Revised Statutes.2 Company's allow Company access to an extensive amount of sole office is to be located in downtown Honolulu. confidential information regarding those members, Protestant's major contentions with regard to thus granting Company an unfair competitive ad- Applicant's proposal to acquire Company may be vantage. summarized as follows:3 Bank of Hawaii is both regulated and insured The Hawaiian banking market is unique as it by the Federal Deposit Insurance Corporation includes only eight banks and beyond its bounda- (44FDIC"). Industrial loan companies, however, ries, the nearest bank is 2,500 miles away. The are regulated by the State of Hawaii and are market is highly concentrated and is dominated uninsured. Protestant believes consumers will by Applicant and FHI. Together, their banking confuse Bank of Hawaii and Company and will subsidiaries hold approximately 70 per cent of believe that Company will be regulated, and its market deposits. In their business operations, certificates will be insured, by FDIC. Protestant Protestant's members utilize borrowed funds to cites advertisements in which HTL was characsupplement the funds acquired through investment terized as a member of the "First Hawaiian Famcertificates and debentures. According to Protes- ily" for a limited period of time after its acquisition by FHI. The type of consumer confusion such advertising may cause, according to Protestant, 1 Unless otherwise noted, all financial data are as of June eliminates the probability that Company will be 30, 1976. viewed as an additional competitor. 2 Chapter 408 also grants industrial loan companies the power "to issue and sell certificates for the payment of Finally, Protestant contends that creation of money . . . provided, that nothing herein shall be construed Company will encourage tying and conflicts of to authorize any industrial loan company to receive deposits interest. The formation of Company will enable or to create any liability due on demand." Applicant has indicated, however, that it does not intend to issue certificates Applicant to offer second mortgage loans, a servfor the payment of money in its first year of operation and ice it does not currently offer. The nature of second accordingly the Board does not regard the issuance of such mortgage loans, according to Protestant, will certificates as being within the scope of the proposed transaction. readily lead to tying because of the existence of 3 The Board has considered all submissions made by Protes- potentially related first mortgage loans, and Aptant. In this Order, the Board has summarized and dealt plicant has indicated that it will refer first mortgage specifically with the major arguments advanced by Protestant. To the extent that any arguments opposing Applicant's proposal customers of Bank of Hawaii to Company. are not treated individually in this Order, they have been There are approximately 90 industrial loan considered and dismissed as without merit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 165 companies located in Hawaii. These companies company will result in restrictions of credit to have total assets of $798 million. During the non-affiliated firms. Protestant has offered no eviperiod of 1970 through 1975, deposits in Hawaiian dence that such an adverse effect is at all likely banks grew at an average annual rate of 10.1 per to occur and the Board concludes that, in view cent while industrial loan investment certificates of the above discussion, the mere possibility of and debentures grew at an average annual rate of such occurrence is entitled to little weight in this 23.0 per cent. Hawaiian industrial loan companies instance. derive their funds from two major sources: first, For the same reasons, the Board is unable to debentures and investment certificates offered to conclude that Protestant's mere assertions of a the public, which amounted to approximately $423 possibility of misuse of confidential information million as of December 1975, and second, bor- should be regarded as a significant factor in its rowed funds, which accounted for approximately consideration of Applicant's proposal. FHI has $143 million at that time. Of this $143 million now been operating an industrial loan company approximately $12 million is derived from Bank for approximately 18 months, and its subsidiary of Hawaii, which currently has lending relation- bank currently has more than $5.5 million in loans ships with 16 of the 90 Hawaiian industrial loan outstanding to industrial loan companies. As a companies. Nine of these 16 firms have little consequence of these loans, according to Protesdependence on Applicant as they are either na- tant, FHI should have access to substantial tional firms or major Hawaiian companies and amounts of confidential information regarding have access to many sources of credit. The re- firms that compete with its industrial loan subsidimaining seven firms have lines of credit of ap- ary. There has been no suggestion that it has made proximately $2 million with Applicant's banking improper use of whatever confidential information subsidiary of which approximately $1 million is it may have access to. Indeed, one of Protestant's currently being used. member firms that also borrows from FHI's sub- In addition to the fact that Applicant's banking sidiary bank indicates that FHI has not misused subsidiary currently is the source of a relatively any confidential information regarding that firm small amount of credit to Hawaii's industrial loan and describes its relationships with FHI's subsidicompanies, it appears that normal market forces ary bank as "very good."5 will encourage that bank to remain competitive Turning to the issue of potential consumer conwith the other seven banks located in Hawaii in fusion, the Board does not believe that Company's the provision of credit to industrial loan compa- affiliation with Applicant will result in significant nies. In the Board's judgment, it is unlikely that confusion regarding the regulation and insurance Applicant would intentionally jeopardize its busi- of industrial loan companies. In Hawaii, industrial ness relationships with creditworthy customers by loan companies, like banks, are highly regulated restricting credit.4 and examined.6 The fact that any Hawaiian indus- Although Protestant has asserted that the six trial loan company, bank-affiliated or not, is a Hawaiian banks not affiliated with industrial loan financial intermediary that issues deposit-like incompanies are not large enough to meet the credit vestment certificates and makes consumer and needs of Hawaii's largest industrial loan compa- mortgage loans, may lead certain consumers to nies, it is not the larger firms, but rather the smaller believe that the certificates are insured like deposits firms that may be dependent on local banks, and in most, albeit not all, commercial banks. That it appears that these smaller firms would be ade- such an industrial loan company is affiliated with quately served by the six non-affiliated Hawaiian banks in the unlikely event any of the adverse effects predicted by Protestant were to occur. In any case, the Board is not persuaded that bank holding company affiliation with an industrial loan 5 The same firm has not found the availability of credit from FHI's subsidiary bank restricted since FHI's acquisition of HTL. 6 With regard to the amount of regulation to which industrial loan companies are subject, the Board notes that they are regularly examined by the State bank examiner who is em- 4Indeed, the record reflects no instance of any such abuse powered to order the discontinuance of any illegal or unsafe in the case of FHI's subsidiary bank, which is affiliated with practices or to place the company in receivership in appropriate HTL. circumstances. Hawaii Rev. Stat. § 401-5, 12 (1968). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • February 1977 a bank holding company should not significantly will have a pro-competitive effect. HTL, since its enhance whatever confusion may already exist. affiliation with FHI, has lowered its interest rates Indeed, whatever potential for confusion may exist on certain loans. It further appears that this reducregarding Hawaiian industrial loan companies is tion has resulted in the lowering of interest rates substantially diminished by the fact that State law by industrial loan companies not affiliated with requires that each investment certificate issued by banks. Further bank holding company entry in the an industrial loan company bear the words "this industrial loan field may have similar effects. is not a certificate of deposit." Protestant also As the industrial loan industry in Hawaii has asserts that Company will not be viewed as an experienced some financial instability in the past, additional competitor to Bank of Hawaii. The the additional financial and managerial resources Board does not accept this assertion because Applicant will provide may tend to increase the Company will provide services, such as second overall strength of the industry and promote public mortgage loans, that may not lawfully be provided confidence in it. Thus, increased bank holding by that bank. company participation in this industry may en- With regard to Protestant's concern that acqui- courage more investors to purchase investment sition of Company will create the potential for certificates and debentures, thereby enlarging the tying of services, section 106 of the 1970 Bank amount of funds available for consumer loans in Holding Company Act Amendments provides a Hawaii. significant deterrent to coercive tying by bank Based upon the foregoing and other considholding companies as it enables any person injured erations reflected in the record, the Board has by such tying to bring a civil action for treble determined in accordance with the provisions of damages plus reasonable attorney's fees.7 Protes- Section 4(c)(8) of the Act, that Applicant's acquitant contends however, that even absent any coer- sition of Company can reasonably be expected to cive action on Applicant's part, Applicant's cus- produce benefits to the public that outweigh possitomers may think that the chance for approval of ble adverse effects. Accordingly, the application a first mortgage from Bank of Hawaii will be is hereby approved, and Applicant's proposal is enhanced by requesting a second mortgage from specifically authorized by the Board. This deter- Company. In an effort to reduce the possibility mination is subject to the conditions set forth in of such "voluntary" tying, Applicant has, on its § 225.4(c) of Regulation Y and to the Board's own initiative, volunteered to provide all of Com- authority to require such modification or terminapany's borrowing customers a statement to the tion of the activities of a holding company or any effect that loans are not conditioned in any way of its subsidiaries as the Board finds necessary to on obtaining other services from Applicant and its assure compliance with the provisions and pursubsidiaries. It is the Board's judgment that the poses of the Act and the Board's regulations and number of first mortgage sources in Hawaii is such orders issued thereunder, or to prevent evasion as to provide "a reasonable basis for the conclu- thereof. sion that the total amount of possible voluntary This transaction shall be made not later than tying is not of the magnitude Congress was con- three months after the effective date of this Order, cerned about,"8 particularly in view of Applicant's unless such period is extended for good cause by commitment. the Board or by the Federal Reserve Bank of San As Applicant proposes to enter the industrial Francisco, pursuant to authority hereby delegated. loan field on a de novo basis, the proposed trans- By order of the Board of Governors, effective action would neither eliminate existing or potential January 31, 1977. competition nor cause an increase in the concentration of resources in any relevant area. Indeed, the Board deems it likely that Applicant's entry Voting for this action: Vice Chairman Gardner and Governors Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns and Governors Wallich and Coldwell. 7 12 U.S.C. § 1971 et seq. HAlabama Ass'n. of Ins. Agents v. Board of Governors, (Signed) GRIFFITH L. GARWOOD, 553 F.2d 224, 250-51 (5th Cir. 1976). [SEAL] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 167 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During January 1977, 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 Administration 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 Marion National Corp- Marion National Bank 1/3/77 42 F.R. 2353 oration, Marion, of Marion, Marion, 1/11/77 Indiana Indiana Montgomery Bancorpora- Montgomery National 1/18/77 42 F.R. 4534 tion, Inc., Winchester, Bank of Mt. Sterling, 1/25/77 Kentucky Mt. Sterling, Kentucky Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation Redwood Bancorp, Montgomery Street Mort- 1/19/77 42 F.R. 5133 San Francisco, gage Corporation, San 1/27/77 California Francisco, California; and National Mortgage Co., Salt Lake City, Utah Sections 3 and 4 Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Mountain Financial Southeast State Permissible Kansas City 1/14/77 42 F.R. 4213 Services, Inc., Bank, Denver, insurance 1/21/77 Denver, Colorado Colorado activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin • February 1977 By Federal Reserve Banks During December 1976 and January 1977, an application was approved by the Federal Reserve Bank as listed below. The order has been published in the Federal Register, and copies are available upon request to the Reserve Bank. Section 3 Federal Reserve Effective Register Applicant Bank(s) Bank date citation Royal Trust Bank Royal Trust Bank Atlanta 12/29/76 42 F.R. 3897 Corp., Miami, of St. Petersburg, 1/2/77 Florida Gulf port, Florida ORDER APPROVED UNDER THE BANK MERGER ACT Federal Reserve Effective Register Applicant Bank(s) Bank date citation The Commercial The Farmers Bank Cleveland 1/13/77 42 F.R. 4533 Bank, Delphos, of Elida, Elida, 1/25/77 Ohio Ohio PENDING CASES INVOLVING THE BOARD OF GOVERNORS* Farmers State Bank of Crosby v. Board of Gov- First State Bank of Clute, Texas, et al. v. Board ernors, filed January 1977, U.S.C.A. for the of Governors, filed July 1976, U.S.C. A. for the 8th Circuit. 5th Circuit. National Automobile Dealers Association, Inc. v. International Bank v. Board of Governors, et al., Board of Governors, filed November 1976, filed July 1976, U.S.D.C. for the District of U.S.C.A. for the District of Columbia. Columbia. Michigan National Corporation v. Board of Gov- North Lawndale Economic Development Corernors, filed September 1976, U.S.C.A. for the portion v. Board of Governors, filed June 6th Circuit. 1976, U.S.C.A. for the 7th Circuit. First Security Corporation v. Board of Governors, Central Wisconsin Bankshares, Inc. v. Board of filed August 1976, U.S.C.A. for the 10th Cir- Governors, filed June 1976, U.S.C.A. for the cuit. 7th Circuit. Anthony R. Martin-Trigona v. Board of Gover- National Urban League, et al. v. Office of the nors, filed August 1976, U.S.C.A. for the Dis- Comptroller of the Currency, et al., filed April trict of Columbia. 1976, U.S.D.C. for the District of Columbia Circuit. Farmers & Merchants Bank of Las Cruces, New Mexico v. Board of Governors, filed April *This list of pending cases does not include suits against 1976, U.S.C.A. for the District of Columbia the Federal Reserve Banks in which the Board of Governors Circuit. is not named a party. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 169 Grandview Bank & Trust Company v. Board of of Insurance Agents, Inc. v. Board of Gover- Governors, filed March 1976, U.S.C.A. for the nors, filed August 1975, actions consolidated Eighth Circuit. in U.S.C.A. for the Fifth Circuit, Association of Bank Travel Bureaus, Inc. v. tt David R. Merrill, et al. v. Federal Open Mar- Board of Governors, filed February 1976, ket Committee of the Federal Reserve System, U.S.C.A. for the Seventh Circuit. filed May 1975, U.S.D.C. for the District of Memphis Trust Company v. Board of Governors, Columbia, appeal pending, U.S.D.A. for the filed February 1976, U.S.D.C. for the Western District of Columbia. District of Tennessee. CurvinJ. Trone v. United States, filed April 1975, First Lincolnwood Corporation v. Board of Gov- U.S. Court of Claims. ernors, filed February 1976, U.S.C.A. for the Louis J. Roussel v. Board of Governors, filed Seventh Circuit. April 1975, U.S.D.C. for the Eastern District International Bank v. Board of Governors, filed of Louisiana. December 1975, U.S.C.A. for the District of Georgia Association of Insurance Agents, et al. Columbia. v. Board of Governors, filed October 1974, Roberts Farms, Inc. v. Comptroller of the Cur- U.S.C.A. for the Fifth Circuit. rency, et al., filed November 1975, U.S.D.C. Alabama Association of Insurance Agents, et al. for the Southern District of California. v. Board of Governors, filed July 1974, National Computer Analysts, Inc. v. Decimus U.S.C.A. for the Fifth Circuit, Corporation, et al., filed November 1975, t Investment Company Institute v. Board of Gov- U.S.D.C. for the District of New Jersey. ernors, dismissed July 1975, U.S.D.C. for the t Peter E. Blum v. First National Holding Cor- District of Columbia, appeal pending, U.S.C. A. poration, filed May 1976, U.S.C.A. for the for the District of Columbia Circuit, Fifth Circuit. t Consumers Union of the United States, Inc., et tPeter E. Blum v. Morgan Guaranty Trust Co., al. v. Board of Governors, filed September et al., filed April 1976, U.S.C.A. for the Fifth 1973, U.S.D.C. for the District of Columbia. Circuit. Bankers Trust New York Corporation v. Board Florida Association of Insurance Agents, Inc. v. of Governors, filed May 1973, U.S.C.A. for Board of Governors, and National Association the Second Circuit. t Decisions have been handed down in these cases, subject :j:The Board of Governors is not named as a party in this to appeals noted. action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Directors of Federal Reserve Banks and Branches Following is a list of the directorates of the Federal which consists of banks of similar capitalization, and Reserve Banks and Branches as at present constituted. each group elects one Class A and one Class B director. The list shows, in addition to the name of each director, Class C directors may not be officers, directors, emhis principal business affiliation, the class of director- ployees, or stockholders of any bank. One Class C ship, and the date when his term expires. Each Federal director is designated by the Board of Governors as Reserve Bank has nine directors: three Class A and three Chairman of the Board of Directors and Federal Reserve Class B directors, who are elected by the stockholding Agent and another is appointed Deputy Chairman. Fedmember banks, and three Class C directors, who are eral Reserve Branches have either five or seven direcappointed by the Board of Governors of the Federal tors, of whom a majority are appointed by the Board Reserve System. Class A directors are representative of Directors of the parent Federal Reserve Bank; the of the stockholding member banks. Class B directors others are appointed by the Board of Governors of the at the time of their election must be actively engaged Federal Reserve System. One of the directors appointed in their district in commerce, agriculture, or some by the Board of Governors at each Branch is designated industrial pursuit, and may not be officers, directors, annually as Chairman of the Board in such a manner or employees of any bank. as the Federal Reserve Bank may prescribe. For the purpose of electing Class A and Class B In this list of the directorates, names followed by directors, the member banks of each Federal Reserve footnote 1 0) are Chairmen, those by footnote 2 (2) district are classified by the Board of Governors of the are Deputy Chairmen, and those by footnote 3 C) Federal Reserve System into three groups, each of indicate new appointments. DISTRICT 1—BOSTON Term expires Class A Dec. 31 James F. English, Jr. Chairman, The Connecticut Bank and Trust Co., Hartford, 1977 Conn. John D. Robinson President, Firstbank, N.A., Farmington, Me. 1978 John Hunter, Jr.3 President, Vermont National Bank, Brattleboro, Vt. 1979 Class B Weston P. Figgins Chairman of the Board, Wm. Filene's Sons Company, 1977 Boston, Mass. Alfred W. Van Sinderen President, The Southern New England Telephone Com- 1978 pany, New Haven, Conn. G. William Miller President, Textron Inc., Providence, R.I. 1979 Class C Robert M. Solow2 Institute Professor, Massachusetts Institute of Technology, 1977 Cambridge, Mass. Louis W. Cabot1 Chairman of the Board, Cabot Corporation, Boston, Mass. 1978 Kenneth I. Guscott President, Ken Guscott Associates, Boston, Mass. 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 171 DISTRICT 2—NEW YORK Term expires Class A Dec. 31 Stuart McCarty President, First-City National Bank of Binghamton, N.Y. 1977 Harry J. Taw President, First National Bank of Cortland, N.Y. 1978 Ellmore C. Patterson3 Chairman of the Board, Morgan Guaranty Trust Company 1979 of New York, N.Y. Class B William S. Sneath Chairman of the Board, Union Carbide Corporation, New 1977 York, N.Y. Vacancy 1978 Chairman of the Board, Texaco, Inc., New York, N.Y. 1979 Maurice F. Granville Class C Partner, Shearman and Sterling, Attorneys, New York, 1977 Robert H. Knight2 N.Y. Frank R. Milliken1 President, Kennecott Copper Corporation, New York, 1978 N.Y. Vacancy 1979 —BUFFALO BRANCH Appointed by Federal Reserve Bank Charles A. Marks President, Alden State Bank, N.Y. 1977 Kent O. Parmington President, The Bank of New York—Western Region, 1978 Buffalo, N.Y. M. Jane Dickman3 Partner, Touche Ross & Co., Buffalo, N.Y. 1979 William B. Webber3 Chairman and Chief Executive Officer, Lincoln First Bank 1979 of Rochester, N.Y. Appointed by Board of Governors Paul A. Miller1 President, Rochester Institute of Technology, Rochester, 1977 N.Y. Donald R. Nesbitt Owner-Operator, Silver Creek Farms, Albion, N.Y. 1978 Frederick D. Berkeley 3 Chairman of the Board and President, Graham Manu- 1979 facturing Co., Inc., Batavia, N.Y. DISTRICT 3—PHILADELPHIA Class A William B. Eagleson, Jr. Chairman of the Board, President, Girard Bank, Bala 1977 Cynwyd, Pa. James Patchell President and Chief Executive Officer, National Bank and 1978 Trust Company of Gloucester County, Woodbury, N.J. W. J. Smouse3 President, The First National Bank in Bedford, Pa. 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin • February 1977 DISTRICT 3—PHILADELPHIA—Continued Class B Term expires Dec. 31 Jack K. Busby Chairman and Chief Executive Officer, Pennsylvania Power 1977 & Light Company, Allentown, Pa. Harold A. Shaub President and Chief Executive Officer, Campbell Soup Co., 1978 Camden, N.J. William S. Masland President, C.H. Masland & Sons, Carlisle, Pa. 1979 Class C Werner C. Brown2 President, Hercules, Inc., Wilmington, Del. 1977 John W. Eckman1 Chairman, Rorer-Amchem, Inc., Fort Washington, Pa. 1978 Jean Crockett3 Professor of Finance, University of Pennsylvania, Phila- 1979 delphia, Pa. DISTRICT 4—CLEVELAND Class A Merle E. Gilliand Chairman of the Board, Chief Executive Officer, Pittsburgh 1977 National Bank, Pittsburgh, Pa. Richard P. Raish President, First National Bank, Bellevue, Ohio 1978 John Alford3 President, The Park National Bank, Newark, Ohio 1979 Class B Donald E. Noble Chairman of the Board, Chief Executive Officer, Rubber- 1977 maid Inc., Wooster, Ohio John J. Dwyer President, Oblebay Norton Co., Cleveland, Ohio 1978 Charles Y. Lazarus Chairman of the Board, the F & R Lazarus Co., Co- 1979 lumbus, Ohio Class C Horace A. Shepard1 Chairman of the Board, Chief Executive Officer, TRW 1977 Inc., Cleveland, Ohio Otis A. Singletary President, University of Kentucky, Lexington, Ky. 1978 Robert E. Kirby2 Chairman and Chief Executive Officer, Westinghouse 1979 Electric Corporation, Pittsburgh, Pa. —CINCINNATI BRANCH Appointed by Federal Reserve Bank Joe D. Blount President, The National Bank of Cynthiana, Ky. 1977 Robert A. Kerr Chairman of the Board and Chief Executive Officer, 1978 Winters National Bank and Trust Co., Dayton, Ohio Lawrence Hawkins Senior Vice President, University of Cincinnati, Ohio 1978 William N. Liggett3 Chairman of the Board and Chief Executive Officer, The 1979 First National Bank of Cincinnati, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 173 DISTRICT 4—CLEVELAND—Continued Term expires Dec. 31 —CINCINNATI BRANCH—Continued Appointed by Board of Governors Lawrence H. Rogers, II1 Chairman and Chief Executive Officer, Development 1977 Communications, Inc., Cincinnati, Ohio Martin B. Friedman President, Formica Corporation, Cincinnati, Ohio 1978 J. L. Jackson3 President, Falcon Coal Company, Inc., Lexington, Ky. 1979 —PITTSBURGH BRANCH Appointed by Federal Reserve Bank Richard D. Edwards President, The Union National Bank of Pittsburgh, Pa. 1977 R. Burt Gookin Vice Chairman and Chief Executive Officer, H.J. Heinz 1978 Co., Pittsburgh, Pa. William E. Midkiff, III Chairman of the Board and Chief Executive Officer, First 1978 National Bank and Trust Company in Steubenville, Ohio Peter Mortensen3 President, F.N.B. Corporation, Sharon, Pa. 1979 Appointed by Board of Governors Arnold R. Weber Dean, Graduate School of Industrial Administration, Pro- 1977 vost, Carnegie-Mellon University, Pittsburgh, Pa. William H. Knoell President, Cyclops Corporation, Pittsburgh, Pa. 1978 G. Jackson Tankersley1 President, Consolidated Natural Gas Company, Pittsburgh, 1979 Pa. DISTRICT 5—RICHMOND Class A James A. Hardison, Jr. Chairman and President, The First National Bank of Anson 1977 County, Wadesboro, N.C. J. Owen Cole Chairman of the Board and President, First National Bank 1978 of Maryland, Baltimore, Md. Frank B. Robards, Jr.3 President, Rock Hill National Bank, Rock Hill, S.C. 1979 Class B Henry Clay Hofheimer, II Chairman of the Board, Virginia Real Estate Investment 1977 Trust, Norfolk, Va. Vacancy 1978 President, Andy Clark Ford, Inc., Princeton, W. Va. 1979 Andrew L. Clark Class C E. Craig Wall, Sr.2 Chairman of the Board, Canal Industries, Inc., Conway, 1977 S.C. Maceo A. Sloan Executive Vice President, North Carolina Mutual Life 1978 Insurance Co., Durham, N.C. E. Angus Powell1 President, Chesterfield Land & Timber Corp., Midlothian, 1979 Va. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • February 1977 DISTRICT 5—RICHMOND—Continued Term expires Dec. 31 —BALTIMORE BRANCH Appointed by Federal Reserve Bank J. Pierre Bernard Chairman of the Board, The Annapolis Banking and Trust 1977 Company, Annapolis, Md. Catherine Byrne Doehler Senior Vice President, Chesapeake Financial Corporation, 1978 Baltimore, Md. Lacy I. Rice, Jr. President, The Old National Bank of Martinsburg, W. Va., 1979 and President, Suburban National Bank of Martinsburg, W. Va. A. R. Reppert3 President, Union National Bank of Clarksburg, W. Va. 1979 Appointed by Board of Governors James G. Harlow1 President, West Virginia University, Morgan town, W. Va. 1977 David W. Barton, Jr. President, The Barton-Gillet Company, Baltimore, Md. 1978 I. E. Killian Manager, Eastern Region, Exxon Company, U.S.A., Bal- 1979 timore, Md. —CHARLOTTE BRANCH Appointed by Federal Reserve Bank John T. Fielder President, J.B. Ivey and Company, Charlotte, N.C. 1977 William W. Bruner Chairman of the Board and President, First National Bank 1978 of South Carolina, Columbia, S.C. Thomas L. Benson President, The Conway National Bank, Conway, S.C. 1979 W. B. Apple, Jr. President and Trust Officer, First National Bank of Reids- 1979 ville, N.C. Appointed by Board of Governors Charles F. Benbow Senior Vice President and Director, R. J. Reynolds Indus- 1977 tries, Inc., Winston-Salem, N.C. Robert C. Edwards1 President, Clemson University, Clemson, S.C. 1978 Naomi G. Albanese3 Dean, School of Home Economics, University of North 1979 Carolina, Greensboro, N.C. DISTRICT 6—ATLANTA Class A Jack P. Keith President, First National Bank of West Point, Ga. 1977 Sam I. Yarnell Chairman, American National Bank and Trust Company, 1978 Chattanooga, Tenn. John T. Oliver, Jr. President, First National Bank of Jasper, Ala. 1979 Class B Ulysses V. Goodwyn Executive Vice President, Southern Natural Resources, 1977 Inc., Birmingham, Ala. George W. Jenkins Chairman, Publix Super Markets, Inc., Lakeland, Fla. 1978 Robert T. Hornbeck Manager, Tennessee Operations, Aluminum Company of 1979 America, Alcoa, Tenn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 175 DISTRICT 6—ATLANTA—Continued Term expires Class C Dec. 31 H. G. Pattillo1 Chairman of the Board, Pattillo Construction Company, 1977 Inc., Decatur, Ga. Fred Adams, Jr. President, Cal-Maine Foods, Inc., Jackson, Miss. 1978 Clifford M. Kirtland, Jr.2 President, Cox Broadcasting Corporation, Atlanta, Ga. 1979 -BIRMINGHAM BRANCH Appointed by Federal Reserve Bank D. C. Wads worth, Jr. President, American National Bank of Gadsden, Ala. 1977 Robert H. Woodrow, Jr. Chairman of the Board and Chief Executive Officer, First 1978 National Bank of Birmingham, Ala. Drury Flowers3 President, First Alabama Bank of Dothan, Ala. 1979 Martha H. Simms3 Huntsville, Ala. 1979 Appointed by Board of Governors Harold B. Blach, Jr. President, J. Blach & Sons, Inc., Birmingham, Ala. 1977 Frank P. Samford, Jr. Chairman of the Board, Liberty National Life Insurance 1978 Co., Birmingham, Ala. William H. Martin, III1 Executive Vice President, Martin Industries, Sheffield, Ala. 1979 —JACKSONVILLE BRANCH Appointed by Federal Reserve Bank DuBose Ausley President and Chief Executive Officer, Capital City First 1977 National Bank, Tallahassee, Fla. John T. Cannon, III President, Barnett Bank of Cocoa, N.A., Cocoa, Fla. 1978 Richard E. Ehlis3 President, Florida National Bank at Lakeland, Fla. 1979 William E. Arnold, Jr. 3 President, William E. Arnold Company, Jacksonville, Fla. 1979 Appointed by Board of Governors Gert H. W. Schmidt1 President, TeLeVision 12 of Jacksonville, Fla. 1977 James E. Lyons President, Lyons Industrial Corporation, Winter Haven, 1978 Fla. Copeland D. Newbern3 President, Newbern Groves, Inc., Tampa, Fla. 1979 —MIAMI BRANCH Appointed by Federal Reserve Bank Harry Hood Bassett Chairman of the Board, Southeast First National Bank of 1977 Miami, Fla. Sherrill E. Woods President, First National Bank and Trust Company of 1978 Naples, Fla. Jean McArthur Davis President, McArthur Dairy, Inc., Miami, Fla. 1978 Aristides R. Sastre3 President, Republic National Bank, Miami, Fla. 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • February 1977 DISTRICT 6—ATLANTA—Continued Term expires Dec. 31 —MIAMI BRANCH—Continued Appointed by Board of Governors David G. Robinson1 President, Edison Community College, Fort Myers, Fla. 1977 Alvaro Luis Carta President, Gulf 4- Western Americas Corporation, Vero 1978 Beach, Fla. Castle W. Jordan President, Aegis Corporation, Coral Gables, Fla. 1979 —NASHVILLE BRANCH Appointed by Federal Reserve Bank W. M. Johnson President, First National Bank, Sparta, Tenn. 1977 John W. Andersen President and Chief Executive Officer, First National Bank 1978 of Sullivan County, Kingsport, Tenn. Virgil H. Moore, Jr.3 President, First Farmers and Merchants National Bank, 1979 Columbia, Tenn. Frank C. Thomas3 Executive Vice President, Blue Diamond Coal Company, 1979 Knoxville, Tenn. Appointed by Board of Governors Robert C. H. Mathews President, R.C. Mathews, Contractor, Inc., Nashville, 1977 Tenn. John C. Bolinger2 Management Consultant, Knoxville, Tenn. 1978 Cecelia Adkins3 Executive Director, Sunday School Publishing Board, 1979 Nashville, Tenn. -NEW ORLEANS BRANCH Appointed by Federal Reserve Bank R. B. Lampton Vice Chairman, First National Bank, Jackson, Miss. 1977 Wilmore W. Whitmore President and Chief Executive Officer, First National Bank 1978 of Houma, La. Martin C. Miler Chairman of the Board and President, The Hibernia Na- 1979 tional Bank, New Orleans, La. George P. Hopkins, Jr.3 President, George P. Hopkins, Inc., Gulfport, Miss. 1979 Appointed by Board of Governors George C. Cortright1 Partner, George C. Cortright Co., Rolling Fork, Miss. 1977 Edwin J. Caplan President, Caplan's Men's Shops, Inc., Alexandria, La. 1978 Hettie D. Eaves Executive Vice President, Avondale Shipyards, Inc., New 1979 Orleans, La. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 177 DISTRICT 7—CHICAGO Term expires Dec. 31 Class A John F. Spies President, Iowa Trust and Savings Bank, Emmetsburg, 1977 Iowa A. Robert Abboud Chairman of the Board, First National Bank of Chicago, 1978 111. Jay J. DeLay President, Huron Valley National Bank, Ann Arbor, Mich. 1979 Class B John T. Hackett Executive Vice President, Cummins Engine Company, 1977 Inc., Columbus, Ind. Oscar G. Mayer Chairman of the Executive Committee, Oscar Mayer & 1978 Co., Inc., Madison, Wis. Paul V. Farver Vice Chairman, Rolscreen Company, Pella, Iowa 1979 Class C Leo H. Schoenhofen Retired Chairman of the Board, Marcor Inc., Chicago, 111. 1977 Peter B. Clark1 Chairman of the Board, President, The Evening News 1978 Association, Detroit, Mich. Robert H. Strotz2 President, Northwestern University, Evanston, 111. 1979 —DETROIT BRANCH Appointed by Federal Reserve Bank Harold A. Elgas President, Gaylord State Bank, Gaylord, Mich. 1977 Joseph B. Foster President, Ann Arbor Bank, Ann Arbor, Mich. 1978 Charles R. Montgomery President, Consolidated Gas Company, Detroit, Mich. 1978 Benjamin H. Paddock, III3 President, City National Bank of Detroit, Mich. 1979 Appointed by Board of Governors John Sagan Vice President-Treasurer, Ford Motor Company, Dearborn, 1977 Mich. Herbert H. Dow Secretary, Dow Chemical Company, Midland, Mich. 1978 Jordan B. Tatter1 President and Chief Executive Officer, Southern Michigan 1979 Cold Storage Co., Benton Harbor, Mich. DISTRICT 8—ST. LOUIS Class A Donald N. Brandin Chairman of the Board and President, The Boatmen's 1977 National Bank of St. Louis, Mo. Wm. E. Weigel Executive Vice President and Chief Executive Officer, First 1978 National Bank & Trust Co., Centralia, 111. Raymond C. Burroughs President and Chief Executive Officer, The City National 1979 Bank of Murphysboro, 111. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • February 1977 DISTRICT 8—ST. LOUIS—Continued Term expires Dec. 31 Class B Ralph C. Bain Vice President, Wabash Plastics, Inc., Evansville, Ind. 1977 Tom K. Smith, Jr. Group Vice President, Monsanto Company, St. Louis, Mo. 1978 Virginia M. Bailey3 Owner, Eldo Properties, Little Rock, Ark. 1979 Class C Edward J. Schnuck1 Chairman of the Board, Schnuck Markets, Inc., Bridgeton, 1977 Mo. William B. Walton2 Vice Chairman of the Board, Holiday Inns, Inc., Memphis, 1978 Tenn. Armand C. Stalnaker3 Chairman and President, General American Life Insurance 1979 Co., St. Louis, Mo. —LITTLE ROCK BRANCH Appointed by Federal Reserve Bank Thomas E. Hays, Jr. President and Chief Executive Officer, First National Bank 1977 of Hope, Ark. T. G. Vinson President, The Citizens Bank, Batesville, Ark. 1978 Field Wasson President, The First National Bank, Siloam Springs, Ark. 1978 B. Finley Vinson3 Chairman of the Board, The First National Bank in 1979 Little Rock, Ark. Appointed by Board of Governors Ronald W. Bailey1 Executive Vice President and General Manager, Producers 1977 Rice Mill, Inc., Stuttgart, Ark. G. Larry Kelly President, Pickens-Bond Construction Company, Little 1978 Rock, Ark. Vacancy 1979 -LOUISVILLE BRANCH Appointed by Federal Reserve Bank J. David Grissom Chairman and Chief Executive Officer, Citizens Fidelity 1977 Bank and Trust Company, Louisville, Ky. Tom G. Voss President, The Seymour National Bank, Seymour, Ind. 1978 Fred B. Oney President, The First National Bank of Carrollton, Ky. 1978 Howard Brenner3 President and Chief Executive Officer, Tell City National 1979 Bank, Tell City, Ind. Appointed by Board of Governors James C. Hendershot1 President, Reliance Universal, Inc., Louisville, Ky. 1977 James H. Davis Chairman and Chief Executive Officer, Porter Paint Co., 1978 Louisville, Ky. James F. Thompson3 Professor of Economics, Murray State University, Murray, 1979 Ky. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 179 DISTRICT 8—ST. LOUIS—Continued Term expires —MEMPHIS BRANCH Dec. 31 Appointed by Federal Reserve Bank Charles S. Youngblood President and Chief Executive Officer, First Columbus 1977 National Bank, Columbus, Miss. William Wooten Mitchell Chairman, First Tennessee Bank N.A., Memphis, Tenn. 1978 Stallings Lipford President, First-Citizens National Bank of Dyersburg, 1978 Tenn. W. M. Campbell Chairman of the Board, Chief Executive Officer, First 1979 National Bank of Eastern Arkansas, Forrest City, Ark. Appointed by Board of Governors Frank A. Jones, Jr.1 President, Cook Industries, Inc., Memphis, Tenn. 1977 Jeanne L. Holley Associate Professor of Business Education and Office Ad- 1978 ministration, University of Mississippi, University, Miss. Robert E. Healy Partner-in-Charge of the Mid-South Area, Price Water- 1979 house & Co., Memphis, Tenn. DISTRICT 9—MINNEAPOLIS Class A William E. Ryan President, Citizens State Bank, Ontonagon, Mich. 1977 John S. Rouzie President, First National Bank of Bowman, N. Dak. 1978 Nels E. Turnquist3 President, National Bank of South Dakota, Sioux Falls, 1979 S. Dak. Class B Donald P. Helgeson Secretary-Treasurer, Jack Frost, Inc., St. Cloud, Minn. 1977 Russell G. Cleary Chairman, President and Chief Executive Officer, G. Hei- 1978 leman Brewing Company, LaCrosse, Wis. Warren B. Jones Secretary-Treasurer, General Manager, Two Dot Land & 1979 Livestock Co., Harlowton, Mont. Class C Stephen F. Keating2 Chairman of the Board, Honeywell, Inc., Minneapolis, 1977 Minn. James P. McFarland1 Retired Chairman, General Mills, Inc., Minneapolis, Minn. 1978 Charles W. Poe3 President, Metropolitan Economic Development Associa- 1979 tion, Minneapolis, Minn. —HELENA BRANCH Appointed by Federal Reserve Bank Donald Olsson President, Ronan State Bank, Ronan, Mont. 1977 George H. Selover President and General Manager, Selover Buick-Jeep, Inc., 1978 Billings, Mont. William B. Andrews3 President, Northwestern Bank of Helena, Mont. 1978 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • February 1977 DISTRICT 9—MINNEAPOLIS—Continued Term expires —HELENA BRANCH—Continued Dec• 31 Appointed by Board of Governors Norris E. Hanford3 Fort Benton, Mont. 1977 Patricia P. Douglas1 Special Assistant to the President, University of Montana, 1978 Missoula, Mont. DISTRICT 10—KANSAS CITY Class A Craig Bachman President, First National Bank of Centralia, Kans. 1977 James M. Kemper, Jr. Chairman and President, Commerce Bancshares, Inc., 1978 Kansas City, Mo. Philip Hamm President, First National Bank & Trust Company, El 1979 Dorado, Kans. Class B Frank C. Love Of Counsel, Crowe, Dunlevy, Thweatt, Swinford, Johnson 1977 and Burdick, Oklahoma City, Okla. Alan R. Sleeper Alden, Kans. 1978 Maurice B. Mitchell3 Chancellor, University of Denver, Colo. 1979 Class C Joseph H. Williams2 President, The Williams Companies, Tulsa, Okla. 1977 Harold W. Andersen1 President, Omaha World-Herald Company, Omaha, Nebr. 1978 Paul H. Henson3 Chairman and Chief Executive Officer, United Telecom- 1979 munications, Inc., Westwood, Kans. —DENVER BRANCH Appointed by Federal Reserve Bank Felix Buchenroth, Jr. President, The Jackson State Bank, Jackson, Wyo. 1977 William H. Vernon Director and Retired Chairman and Chief Executive Of- 1978 ficer, Santa Fe National Bank, Santa Fe, N. Mex. Delano E. Scott3 President and Chairman, The Routt County National Bank 1978 of Steamboat Springs, Colo. Appointed by Board of Governors A. L. Feldman3 President and Chief Executive Officer, Frontier Airlines, 1977 Denver, Colo. Edward R. Lucero President and Chairman, Colorado Economic Development 1978 Association, Denver, Colo. —OKLAHOMA CITY BRANCH Appointed by Federal Reserve Bank J. A. Mauer Chairman of the Board, The Security National Bank and 1977 Trust Company, Duncan, Okla. V. M. Thompson, Jr. President, Utica National Bank and Trust Co., Tulsa, Okla. 1978 W. L. Stephenson, Jr.3 Chairman of the Board, Central National Bank & Trust 1978 Company of Enid, Okla. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 181 DISTRICT 10—KANSAS CITY—Continued Term expires Dec. 31 —OKLAHOMA CITY BRANCH—Continued Appointed by Board of Governors James G. Harlow, Jr.1 President, Oklahoma Gas and Electric Co., Oklahoma City, 1977 Okla. Harley Custer General Manager, National Livestock Commission Associ- 1978 ation, Oklahoma City, Okla. —OMAHA BRANCH Appointed by Federal Reserve Bank Glenn Yaussi Vice Chairman of the Board, National Bank of Commerce 1977 Trust & Savings, Lincoln, Nebr. Roy G. Dinsdale Chairman of the Board, Farmers National Bank of Central 1977 City, Nebr. F. Phillips Giltner President, First National Bank of Omaha, Nebr. 1978 Appointed by Board of Governors Durward B. Varner1 Chairman and Chief Executive Officer, University of Ne- 1977 braska Foundation, Lincoln, Nebr. Edward F. Owen President, Paxton & Vierling Steel Company, Omaha, 1978 Nebr. DISTRICT 11—DALLAS Class A Frank Junell Chairman of the Board, The Central National Bank of San 1977 Angelo, Tex. Robert H. Stewart, III Chairman of the Board, First International Bancshares, 1978 Dallas, Tex. Gene D. Adams President, The First National Bank of Seymour, Tex. 1979 Class B Gerald D. Hines Owner, Gerald D. Hines Interest, Houston, Tex. 1977 Thomas W. Herrick Cattle and Investments, Amarillo, Tex. 1978 Stewart Orton President, Foley's Division of Federated Dept. Stores 1979 Inc., Houston, Tex. Class C Irving A. Mathews1 Chairman of the Board and Chief Executive Officer, Frost 1977 Bros., Inc., San Antonio, Tex. Charles T. Beaird2 Publisher, Shreveport Journal, Shreveport Publishing Cor- 1978 poration, Shreveport, La. Margaret Scarbrough Wilson3 Chairman of the Board and Chief Executive Officer, Scar- 1979 broughs Stores, Austin, Tex. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • February 1977 DISTRICT 11—DALLAS—Continued Term expires Dec. 31 —EL PASO BRANCH Appointed by Federal Reserve Bank Wayne Stewart President, First National Bank in Alamogordo, N. Mex. 1977 Reed H. Chittim President, First National Bank of Lea County, Hobbs, 1978 N. Mex. Arnold B. Peinado, Jr President, Peinado, Peinado & Navarro, Consulting Struc- 1978 tural Engineers, El Paso, Tex. George V. Janzen3 President, First City National Bank of El Paso, Tex. 1979 Appointed by Board of Governors Gage Holland1 Owner, Gage Holland Ranch, Alpine, Tex. 1977 Josefina Salas-Porras2 Executive Director, BI Language Services, El Paso, Tex. 1978 A. J. Losee3 Partner, Losee & Carson, P.A., Artesia, N. Mex. 1979 —HOUSTON BRANCH Appointed by Federal Reserve Bank Seth W. Dorbandt Chairman and President, First National Bank in Conroe, 1977 Tex. Bookman Peters President, The City National Bank of Bryan, Tex. 1978 Nat S. Rogers President, First City National Bank of Houston, Tex. 1978 Page K. Stubblefield President, Victoria Bank & Trust Company, Victoria, Tex. 1979 Appointed by Board of Governors Gene M. Woodfin2 Chairman of the Board and Chief Executive Officer, 1977 Marathon Manufacturing Company, Houston, Tex. Alvin I. Thomas1 President, Prairie View A & M University, Prairie View, 1978 Tex. Jerome L. Howard3 Chairman of the Board and Chief Executive Officer, Mort- 1979 gage & Trust, Inc., Houston, Tex. —SAN ANTONIO BRANCH Appointed by Federal Reserve Bank Leon Stone President, The Austin National Bank, Austin, Tex. 1977 Richard W. Calvert Chairman of the Board, National Bank of Commerce of 1978 San Antonio, Tex. John H. Holcomb Owner-Manager, Progreso Haciendas Company, Holcomb 1978 Farms, Progreso, Tex. Ben R. Low Chairman of the Board, First National Bank of Kerrville, 1979 Tex. Appointed by Board of Governors Marshall Boykin, III1 Senior Partner, Wood, Boykin & Wolter, Lawyers, Corpus 1977 Christi, Tex. Pete J. Morales, Jr. President and General Manager, Morales Feed Lots, Inc., 1978 Devine, Tex. Pat Legan3 Investments, San Antonio, Tex. 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 183 DISTRICT 12—SAN FRANCISCO Term expires Class A Dec. 31 Carl E. Schroeder Chairman of the Board, The First National Bank of Orange 1977 County, Calif. Ronald S. Hanson President and Chief Executive Officer, The First National 1978 Bank of Logan, Utah Frederick G. Larkin, Jr.3 Chairman of the Board and Chief Executive Officer, Secu- 1979 rity Pacific National Bank, Los Angeles, Calif. Class B Charles R. Dahl President and Chief Executive Officer, Crown Zellerbach 1977 Corporation, San Francisco, Calif. Malcolm T. Stamper President, The Boeing Company, Seattle, Wash. 1978 Clair L. Peck, Jr. Chairman of the Board, C. L. Peck Contractor, Los An- 1979 geles, Calif. Class C Cornell C. Maier2 President and Chief Executive Officer, Kaiser Aluminum 1977 & Chemical Corporation, Oakland, Calif. Joseph F. Alibrandi1 President and Chief Executive Officer, Whittaker, Corp., 1978 Los Angeles, Calif. Dorothy Wright Nelson3 Dean and Professor of Law, University of Southern Cali- 1979 fornia Law Center, Los Angeles, Calif. —LOS ANGELES BRANCH Appointed by Federal Reserve Bank Rayburn S. Dezember Chairman and President, American National Bank, Bak- 1977 ersfield, Calif. W. Gordon Ferguson President, National Bank of Whittier, Calif. 1978 Caroline Ahmanson President, Caroline Leonetti, Ltd., Beverly Hills, Calif. 1979 J. J. Pinola3 President, United California Bank, Los Angeles, Calif. 1979. Appointed by Board of Governors Joseph R. Vaughan1 President, Knudsen Corporation, Los Angeles, Calif. 1977 Harvey A. Proctor Chairman of the Board, Southern California Gas Company, 1978 Los Angeles, Calif. Armando M. Rodriguez President, East Los Angeles College, Los Angeles, Calif 1979 —PORTLAND BRANCH Appointed by Federal Reserve Bank Kenneth L. Smith General Manager, The Confederated Tribes of Warm 1977 Springs, Oreg. Robert F. Wallace3 Chairman of the Board, First National Bank of Oregon, 1978 Portland, Oreg. Robert A. Young3 President, Northwest National Bank, Vancouver, Wash. 1978 Appointed by Board of Governors Loran L. Stewart1 Director, Bohemia Inc., Eugene, Oreg. 1977 Jean Mater3 Partner and General Manager, Mater Engineering, Cor- 1978 vallis, Oreg. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • February 1977 DISTRICT 12—SAN FRANCISCO—Continued Term expires Dec. 31 —SALT LAKE CITY BRANCH Appointed by Federal Reserve Bank Mary S. Jensen Chairman of the Board, Idaho State Bank, Glenns Ferry, 1977 Idaho David P. Gardner President, University of Utah, Salt Lake City, Utah 1978 Robert E. Bryans3 Chairman of the Board, Walker Bank and Trust Company, 1978 Salt Lake City, Utah Appointed by Board of Governors Theodore C. Jacobsen Partner, Jacobsen Construction Company, Inc., Salt Lake 1977 City, Utah Sam Bennion1 President, V-l Oil Company, Idaho Falls, Idaho 1978 —SEATTLE BRANCH Appointed by Federal Reserve Bank Rufus C. Smith Chairman of the Board, The First National Bank of Enum- 1977 claw, Wash. Harry S. Goodfellow Chairman of the Board and Chief Executive Officer, Old 1978 National Bank of Washington, Spokane, Wash. Douglas S. Gamble President and Chief Executive Officer, Pacific Gamble 1978 Robinson Co., Seattle, Wash. Appointed by Board of Governors Thomas T. Hirai President and Director, Quality Growers Company, Wood- 1977 inville, Wash. Lloyd E. Cooney1 President and General Manager, KIRO—Radio & Televi- 1978 sion, Seattle, Wash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

185 Announcements of New York, as Assistant to the Chairman effec- PROPOSED AMENDMENT tive February 17, 1977. The Board of Governors of the Federal Reserve Mr. Hudson holds a B.S. from Columbia Uni- System on February 10, 1977, proposed for public versity and an M.A. from New York University. comment an amendment to its Regulation Y (Bank He joined the Guaranty Trust Company in 1951, Holding Companies) concerning the control of was named Associate Economist of Morgan Guardivested assets and activities. The Board requested anty in 1960, and appointed Vice President in comment on its proposal by March 15, 1977. 1966. FEDERAL OPEN MARKET CHANGES IN BOARD STAFF COMMITTEE MINUTES The Board of Governors has announced the promotion of James L. Kichline from Associate The Federal Reserve announced on January 25, Director to Director of the Division of Research 1977, that minutes of discussions and actions at and Statistics to succeed Lyle E. Gramley, who the meetings of the Federal Open Market Comhas been named a member of the Council of mittee during 1971 are being transferred to the Economic Advisers. National Archives. The Board also announced these other promo- These minutes are contained in approximately tions and appointments: 1,300 pages of typed material. Their transfer has been arranged with the understanding that the Division of Research and Statistics National Archives will make them available for Joseph S. Zeisel, from Associate Director to inspection by interested persons under its usual Deputy Director. rules and procedures. Similar records for earlier Edward C. Ettin, from Senior Research Division years are already available at the National Ar- Officer to Associate Director. chives on the same basis. James B. Eckert, from Associate Adviser to Copies of the minutes for 1971 will also be Senior Research Division Officer. made available later for public inspection at the Richard H. Puckett as Assistant Research Divi- Board's offices in Washington and at each Federal sion Officer. Reserve Bank and branch, the same procedure Mr. Puckett holds a B.A. from the University followed with respect to earlier records. Meanof Colorado, an M.S. from Oklahoma State Uni- while, a work copy is available for inspection at versity, and a Ph.D. from University of Maryland. the Board's offices and another at the Federal Prior to joining the Board's staff in 1968, he served Reserve Bank of New York. as an instructor and as Assistant Professor at The The National Archives will furnish microfilm American University. copies of the FOMC minutes for a fee. The minutes through 1970 are now available in this form, Division of International Finance and those for 1971 will be available later. Edwin M. Truman, from Associate Adviser to Release of the minutes for the period since 1962 Associate Director. has presented special problems involving interna- George B. Henry, from Associate Adviser to tional financial relationships. A number of pas- Senior International Division Officer. sages have been deleted from the minutes for 1962 In addition, the Board has announced the ap- through 1971, with a footnote in each case indipointment of Milton W. Hudson, an economist and cating the general nature or subject of the deleted vice president at Morgan Guaranty Trust Company matter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • February 1977 SYSTEM MEMBERSHIP: Alabama Guntersville Home Bank of Guntersville Admission of State Banks New York The following State banks were admitted to mem- New York Bradford Trust Company bership in the Federal Reserve System during the New York Northwestern Trust Company period between January 16, 1977, and February Oregon 15, 1977: McMinville Yamhill County Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

187 Industrial Production Released for publication February 15 shortages. Production of nondurable goods materials was also reduced sharply, particularly textile, Industrial production declined by an estimated 1.0 paper, and chemical materials. Increases in output per cent in January, reflecting lost production due of some energy materials, such as electricity and to extremely cold weather and natural gas short- fuel oils, were offset by a sharp decline in coal ages, especially in the latter half of the month. production. Since the basic information now available for the index is incomplete regarding these effects, the Seasonally adjusted, ratio scale, 1967=100 January estimate is considered more tentative than usual. Industrial production increased by 0.8 per cent in December and 1.0 per cent in November. At 131.5 per cent of the 1967 average, the January index was 4.6 per cent above a year ago and slightly below the fourth-quarter average. Output of durable consumer goods declined sharply in January, reflecting the widespread weather-related cutbacks. Auto assemblies were reduced by 15 per cent to an annual rate of 8.5 million units from the exceptionally high level in December, mainly because of weather effects, but the reduction also reflected some production cutbacks to reduce inventories of smaller cars. Production of nondurable consumer goods was off only slightly, as some declines in goods output were about offset by increases in output of gas and electric utilities. Output of business equipment is estimated to have declined about 0.6 per cent. Curtailments in output of durable goods materi- F.R. indexes, seasonally adjusted. Latest figures: January. als were widespread in January in response to fuel *Auto sales and stocks include imports. Seasonally adjusted, 1967 = = 100 Per cent changes from— Industrial production 1976 1977 Month Year Q3 to Oct. Nov. Dec.p Jan.e ago ago Q4 Total 130.4 131.7 132.8 131.5 -1.0 4.6 .5 Products, total 129.6 131.6 133.6 132.5 -.8 5.2 1.3 Final products 127.4 129.7 131.7 130.4 -1.0 5.2 1.4 Consumer goods 136.9 139.1 141.6 139.5 -1.5 4.8 1.8 Durable goods 139.4 144.5 150.5 143.5 -4.7 6.5 2.5 Nondurable goods 135.8 136.9 138.1 138.0 -.1 4.2 1.4 Business equipment 135.9 139.6 141.7 140.9 -.6 7.6 1.2 Intermediate products 138.3 139.1 140.2 140.1 -.1 4.9 .9 Construction supplies 134.0 134.8 136.3 135.6 -.5 6.9 .9 Materials 131.6 131.5 131.8 130.2 -1.2 3.9 -.8 Preliminary. ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS DOMESTIC FINANCIAL STATISTICS WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and Liabilities of A4 Member bank reserves—Factors A20 All reporting banks supplying and factors absorbing A21 Banks in New York City A5 Reserves and borrowings of member A22 Banks outside New York City banks A23 Balance sheet memoranda A6 Federal funds transactions of money A24 Commercial and industrial loans market banks A25 Gross demand deposits of individuals, partnerships, and corporations POLICY INSTRUMENTS A8 Federal Reserve Bank interest rates FINANCIAL MARKETS A9 Member bank reserve requirements A10 Maximum interest rates payable on A25 Commercial paper and bankers time and savings deposits at Federally acceptances outstanding insured institutions A26 Prime rate charged by banks on All Federal Reserve open market short-term business loans transactions A26 Interest rates charged by banks on business loans A27 Interest rates in money and capital FEDERAL RESERVE BANKS markets A12 Condition and F.R. note statements A28 Stock market—Selected statistics A13 Maturity distribution of loan and security holdings A29 Savings institutions—Selected assets and liabilities MONETARY AND CREDIT AGGREGATES A13 Demand deposit accounts—Debits FEDERAL FINANCE and rate of turnover A30 Federal fiscal and financing operations A14 Money stock measures and A31 U.S. Budget receipts and outlays components A32 Federal debt subject to statutory A15 Aggregate reserves and deposits of limitation member banks A32 Gross public debt of U.S. A15 Loans and investments of all Treasury—Types and ownership commercial banks A33 U.S. Government marketable securities—Ownership, by maturity COMMERCIAL BANK ASSETS AND A34 U.S. Government securities LIABILITIES dealers—Transactions, positions, and A16 Last-Wednesday-of-month series financing A17 Call-date series A3 5 Federal and Federally sponsored A18 Detailed balance sheet, March 31, 1976 credit agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • February 1977 SECURITIES MARKETS AND CORPORATE INTERNATIONAL STATISTICS FINANCE A54 U.S. international transactions—Summary A36 New security issues—State and local A55 U.S. foreign trade government and corporate A55 U.S. reserve assets A3 7 Corporate securities—Net change in A56 Selected U.S. liabilities to foreigners amounts outstanding A37 Open-end investment companies—Net REPORTED BY BANKS IN THE UNITED sales and asset position STATES: A38 Corporate profits, taxes, and A57 Short-term liabilities to foreigners dividends A59 Long-term liabilities to foreigners A38 Nonfinancial corporations—Assets and A60 Short-term claims on foreigners liabilities A61 Long-term claims on foreigners A39 Business expenditures on new plant and equipment A62 Foreign branches of U.S. banks—Balance sheet data REAL ESTATE A40 Mortgage markets SECURITIES HOLDINGS AND TRANSACTIONS A41 Mortgage debt outstanding A64 Marketable U.S. Treasury bonds and notes—Foreign holdings and CONSUMER INSTALMENT CREDIT transactions A42 Total outstanding and net change A64 Foreign official accounts A43 Extensions and liquidations A65 Foreign transactions in securities FLOW OF FUNDS REPORTED BY NONBANKING CONCERNS IN THE UNITED STATES: A44 Funds raised in U.S. credit markets A45 Direct and indirect sources of funds A66 Short-term liabilities to and claims on to credit markets foreigners A67 Long-term liabilities to and claims on DOMESTIC NONFINANCIAL foreigners STATISTICS INTEREST AND EXCHANGE RATES A46 Nonfinancial business activity—Selected measures A68 Discount rates of foreign central banks A47 Output, capacity, and capacity A68 Foreign short-term interest rates utilization A68 Foreign exchange rates A47 Labor force, employment, and unemployment A48 Industrial production A79 Guide to Tabular Presentation and A50 Housing and construction Statistical Releases: Reference A51 Consumer and wholesale prices A52 Gross national product and income A53 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1976 1976 1977 IItteemm Ql Q2 Q3 Q4 Oct. Nov. Dec. Jan. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 MMeemmbbeerr bbaannkk rreesseerrvveess 11 TToottaall RReesseerrvveess -----------66666666666...........33333333333 33333333333...........99999999999 00000000000...........22222222222 88888888888...........22222222222 44444444444...........55555555555 11113333....6666 66666666666...........33333333333 2 Required Reserves -----------55555555555...........88888888888 44444444444...........00000000000 00000000000...........44444444444 77777777777...........00000000000 33333333333...........88888888888 11112222....3333 44444444444...........99999999999 3 Nonborrowed -----------55555555555...........44444444444 33333333333...........00000000000 11111111111...........00000000000 88888888888...........33333333333 33333333333...........33333333333 11114444....4444 77777777777...........00000000000 Concepts of money 1 4 M-l 22222222222...........77777777777 88888888888...........44444444444 44444444444...........11111111111 66666666666...........00000000000 1111111111133333333333...........77777777777 88888888888...........11111111111 5 M-2 99999999999...........77777777777 1111111111100000000000...........88888888888 99999999999...........22222222222 '''''''''''1111111111122222222222...........22222222222 1111111111155555555555...........77777777777 11111110000000.......3333333 '''''''''''1111111111122222222222...........55555555555 6 M-3 1111111111111111111111...........22222222222 1111111111122222222222...........00000000000 1111111111111111111111...........66666666666 1111111111144444444444...........00000000000 1111111111166666666666...........55555555555 11111111111111.......6666666 '''''''''''1111111111122222222222...........88888888888 Time and savings deposits Commercial banks: 7 Total 77777777777...........22222222222 55555555555...........33333333333 77777777777...........11111111111 1111111111122222222222...........11111111111 1111111111144444444444...........00000000000 11111115555555.......6666666 1111111111188888888888...........11111111111 8 Other than large CD's 1111111111155555555555...........33333333333 1111111111122222222222...........55555555555 1111111111133333333333...........22222222222 '''''''''''1111111111166666666666...........88888888888 1111111111177777777777...........33333333333 11111117777777.......9999999 '''''''''''1111111111155555555555...........66666666666 9 Thrift institutions2 1111111111133333333333...........77777777777 1111111111144444444444...........00000000000 1111111111155555555555...........44444444444 1111111111166666666666...........77777777777 1111111111177777777777...........33333333333 11111113333333.......8888888 1111111111133333333333...........44444444444 10 Total loans and investments at commercial banks 3 33333333333...........88888888888 55555555555...........44444444444 rrrrrrrrrrr66666666666...........00000000000 88888888888...........77777777777 1111111111122222222222...........22222222222 9999999.......4444444 '''''''''''22222222222...........00000000000 Interest rates (levels, per cent per annum) Short-term rates 11 Federal funds 4 4.83 5.19 5.28 4.88 5.03 4.95 4.65 4.61 12 Treasury bills (3-month market yield) 5 4.92 5.16 5.15 4.67 4.92 4.75 4.35 4.62 13 Commercial paper (90- to 119-day)6 5.18 5.45 5.41 4.91 5.10 4.98 4.66 4.72 14 Federal Reserve discount7 5.59 5.50 5.50 5.39 5.50 5.43 5.25 5.25 Long-term rates Bonds: 15 U.S. Govt. 8 8.00 8.01 7.90 '7.54 7.70 7.64 '7.30 7.48 16 Aaa utility (new issue)9 8.65 '8.69 8.48 '8.15 8.25 8.17 7.94 8.08 17 State and local government10 6.98 6.78 6.64 6.18 6.30 6.29 5.94 5.87 1188 Conventional mortgages11 99..0000 88..9988 99..0033 88..9955 99..0000 88..9955 88..9900 1 M-l equals currency plus private demand deposits adjusted. 7 Rate for the Federal Reserve Bank of New York. M-2 equals M-l plus bank time and savings deposits other than large 8 Market yields adjusted to a 20-year maturity by the U.S. Treasury. CD's. 9 Weighted averages of new publicly offered bonds rated Aaa, Aa, and M-3 equals M-2 plus deposits at mutual savings banks, savings and A by Moody's Investors Service and adjusted to an Aaa basis. Federal loan associations, and credit union shares. Reserve compilations. 2 Savings and loan associations, mutual savings banks, and credit I o Bond Buyer series for 20 issues of mixed quality. unions. II Average rates on new commitments for conventional first mortgages 3 Quarterly changes calculated from figures shown in Table 1.23. on new homes in primary markets, unweighted and rounded to nearest 4 Seven-day averages of daily effective rates (average of the rates on 5 basis points, from Dept. of Housing and Urban Development. a given date weighted by the volume of transactions at those rates). 12 Unless otherwise noted, rates of change are calculated from average 5 Quoted on a bank-discount rate basis. amounts outstanding in preceding month or quarter. 6 Most representative offering rate quoted by five dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • February 1977 1.11 MEMBER BANK RESERVES Factors Supplying and Factors Absorbing Millions of dollars Monthly averages of daily figures End-of-month figures Factor 1976 1977 1976 1977 July Aug. Sept. Oct. Nov. Dec. Jan.f Nov. Dec. Jan.f SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding. . .. 104,799 105,393 105,880 107,270 106,522 107,632 108,739 104,741 110,892 107,427 2 U.S. Govt, securities1 90,256 91,583 91,966 93,535 92,659 93,412 94,513 91,660 97,021 94,134 3 Bought outright 89,405 89,259 89,926 91,886 91,527 91,031 92,905 91,660 93,268 94,134 4 Held under repurchase agreement 885511 22,,332244 22,,004400 11,,664499 1 132 22,,338811 1,608 33,,775533 5 Federal agency securities, 66,,884499 66,,887755 66,,883311 66,,883399 6,848 66,,991166 6,884 6,857 77,,007722 6,790 6 Bought outright 66,,880055 66,,779999 66,,776633 66,,775577 6,804 66,,880055 6,792 6,857 66,,779944 6,790 7 Held under repurchase agreement 44 76 68 82 44 111 92 278 8 Acceptances 475 580 447 323 326 457 413 188 991 191 9 Loans 123 104 75 66 84 62 61 40 25 46 10 Float 2,721 2,512 2,880 2,763 3,094 3,536 3,553 2,635 2,601 2,657 11 Other Federal Reserve assets 4,375 3,739 3,681 3,744 3,511 3,249 3,315 3,361 3,182 3,609 12 Gold stock 11,598 11,598 11,598 11,598 11,598 11,598 11,638 11,598 11,598 11,658 13 Special Drawing Rights certificate account 700 700 703 1,123 1,200 1,200 1,200 1,200 1,200 1,200 14 Treasury currency outstanding 10,648 10,690 10,737 10,778 10,826 10,865 10,897 10,779 10,810 10,919 ABSORBING RESERVE FUNDS 15 Currency in circulation 89,423 89,548 89,863 90,312 91,988 93,730 92,582 93,003 93,717 91,242 16 Treasury cash holdings 467 454 442 482 458 464 461 469 460 480 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury 7,404 7,797 8,270 9,199 6,709 6,138 7,850 6,766 10,393 11,397 18 Foreign 262 275 249 266 259 306 269 305 352 383 19 Other 945 979 1,071 1,012 947 974 820 1,022 1,357 642 20 Other F.R. liabilities and capital... 3,310 3,326 3,315 3,372 3,326 3,253 3,223 3,514 3,063 3,475 21 Member bank reserves with F.R. Banks 25,933 26,001 25,708 26,127 26,458 26,430 27,268 23,239 25,158 ^ 23,585 Weekly averages of daily figures for weeks ending— Wednesday figures 1976 1977 1976 1977 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26*> Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26*> SUPPLYING RESERVE FUNDS 112,662 111,549 107,288 106,889 108,615 116,136 110,632 108,297 107,042 111,671 23 U.S. Govt, securities1 97,278 96,873 93,037 92,925 94,900 100,959 95,509 94,597 91,554 97,409 24 Bought outright 91,791 92,11A 92,323 91,241 94,028 91,505 93,134 91,653 90,210 95,049 25 Held under repurchase agreement 5,487 4,099 714 1,684 872 9,454 2,375 2,944 1,344 2,360 26 Federal agency securities.. . 7,076 7,083 6,817 6,856 6,854 7,203 7,029 6,881 6,890 6,989 27 Bought outright 6,794 6,194 6,794 6,794 6,790 6,794 6,794 6,794 6,790 6,790 28 Held under repurchase agreement 282 289 23 62 64 409 235 87 100 199 29 Acceptances 810 928 270 341 324 1,017 758 543 453 461 30 Loans 82 31 20 109 90 375 29 32 643 482 31 Float 4,224 3,350 4,065 3,463 2,967 3,340 4,336 3,095 4,188 2,314 32 Other Federal Reserve assets. . . 3,191 3,284 3,078 3,195 3,480 3,242 2,971 3,149 3,314 4,016 33 Gold stock 11,598 11,598 11,615 11,658 11,658 11,598 11,598 11,658 11,658 11,658 34 Special Drawing Rights certificate account 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 35 Treasury currency outstanding... . 10,881 10,857 10,893 10,896 10,900 10,884 10,884 10,896 10,896 10,901 ABSORBING RESERVE FUNDS 36 Currency in circulation 94,295 93,876 93,365 92,649 91,799 94,574 93,839 93,270 92,413 91,715 37 Treasury cash holdings 464 459 457 448 451 446 453 461 440 471 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury 9,781 9,019 6,485 5,783 8,630 9,684 5,400 6,303 6,123 10,283 39 Foreign 385 305 318 241 228 257 269 243 228 253 40 Other 882 1,188 690 857 750 932 690 769 784 722 41 Other F.R. liabilities and capital. . 3,492 3,150 3,057 3,212 3,301 3,567 3,053 3,159 3,260 3,416 42 Member bank reserves with F.R. Banks 27,043 27,203 26,623 27,452 27,216 30,357 30,610 21 Ml 27,548 28,570 i Includes securities loaned—fully guaranteed by U.S. Govt, securities NOTE.—For amounts of currency and coin held as reserves, see Table pledged with F.R. Banks—and excludes (if any) securities sold and sched- 1.12. uled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12 RESERVES AND BORROWINGS • Member Banks Millions of dollars Monthly averages of daily figures RReesseerrvvee ccllaassssiiffiiccaattiioonn 1975 1976 1977 Dec. May June July Aug. Sept. Oct. Nov. Dec. Jan.f All member banks Reserves: 1 At F.R. Banks 27,215 26,236 25,711 25,933 26,001 25,708 26,127 26,458 26,430 27,268 2 Currency and coin 7,773 7,838 7,903 8,064 7,989 8,113 8,025 8,180 8,548 8,916 3 Total held1 34,989 34,228 33,774 34,146 34,141 33,979 34,305 34,797 35,136 36,332 4 Required 34,727 33,846 33,657 34,076 33,844 33,692 34,116 34,433 34,964 35,802 5 Excess1 262 382 117 70 297 287 189 364 172 530 Borrowings at F.R. Banks:2 6 Total 127 121 120 123 104 75 66 84 62 61 7 Seasonal 13 11 20 24 28 31 32 21 12 10 Large banks in New York City 8 Reserves held 6,812 6,672 6,546 6,507 6,559 6,372 6,374 6,589 6,520 7,063 9 Required 6,748 6,659 6,524 6,548 6,501 6,308 6,346 6,485 6,602 6,948 10 Excess 64 13 22 -41 58 64 28 104 -82 115 1111 Borrowings2 6633 2299 2266 3377 2288 2222 3366 1155 6 Large banks in Chicago 12 Reserves held 1,740 1,578 1,767 1,672 1,684 1,615 1,648 1,621 1,632 1,733 13 Required 1,758 1,647 1,676 1,690 1,625 1,617 1,635 1,602 1,641 1,697 14 Excess -18 -69 91 -18 59 -2 13 19 -9 36 1155 Borrowings2 2 7 1133 6 3 3 4 2 Other large banks 16 Reserves held 13,249 12,829 12,318 12,633 12,610 12,584 12,704 12,889 13,117 13,261 17 Required 13,160 12,532 12,443 12,660 12,549 12,521 12,706 12,802 13,053 13,426 18 Excess 89 297 -125 -27 61 63 -2 87 64 -165 19 Borrowings2 26 33 22 11 20 3 17 7 14 25 All other banks 20 Reserves held 13,188 13,149 13,143 13,334 13,288 13,408 13,579 13,698 13,867 13,880 21 Required 13,061 13,008 13,014 13,178 13,169 13,246 13,429 13,544 13,668 13,731 22 Excess 127 141 129 156 119 162 150 154 199 149 23 Borrowings2 38 57 65 62 50 47 46 41 29 28 Weekly averages of daily figures for weeks ending— 1976 Nov. 24 Dec. 1 Dec. I Dec. 22 Dec. 29 Jan. 12 Jan. 19 All member banks Reserves: At F.R. Banks 26,596 26,573 25,660 26,365 26,859 27,043 27,203 26,623 27,452 Currency and coin 7,637 8,381 8,494 8,931 8,136 8,632 8,628 8,984 9,228 Total held1 34,392 35,113 34,313 35,456 35,154 35,834 35,974 35,753 36,830 Required 34,272 34,729 34,188 34,989 35,083 35,486 35,461 35,383 36,941 Excess1 120 384 125 467 71 348 513 370 -111 Borrowings at F.R. Banks:2 Total 44 87 26 69 37 82 31 20 109 Seasonal 21 18 14 13 11 11 7 Large banks in New York City 31 Reserves held 6,316 6,541 6,467 6,775 6,586 6,609 6,921 6,839 7,310 32 Required 6,320 6,526 6,406 6,763 6,569 6,629 6,778 6,800 7,454 3 3 3 4 Bo E rr x o c w es i s n gs2 -4 4 1 4 5 61 1 1 6 2 17 -20 6 143 39 -14 2 4 9 Large banks in Chicago 35 Reserves held 1,551 1,669 1,556 1,689 1,646 1,668 1,729 1,749 1.790 36 Required 1,521 1,654 1,586 1,660 1,630 1,673 1,691 1,713 1.791 37 Excess 30 15 -30 29 16 -5 38 36 38 Borrowings2 18 Other large banks 39 Reserves held. .. 12,746 13,020 12,588 13,245 13,096 13,507 13,377 13,396 13,728 40 Required 12,735 12,857 12,655 13,008 13,164 13,341 13,304 13,296 13,883 41 Excess 11 163 -67 237 -68 166 73 100 -155 42 Borrowings2 6 5 9 10 44 2 40 All other banks 43 Reserves held. 13,779 13,883 13,702 13,747 13,826 14,050 13,947 13,769 14,002 44 Required... 13,696 13,692 13,541 13,558 13,720 13,843 13,688 13,574 13,813 45 Excess 83 191 161 189 106 207 259 195 189 46 Borrowings2.. 38 38 26 26 27 32 31 18 31 1 Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with Board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available. nonmember bank merges into an existing member bank, or when a 2 Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • February 1977 1.13 FEDERAL FUNDS TRANSACTIONS of Money Market Banks Millions of dollars, except as noted 1976, week ending— 1977, week ending— TTyyppee Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Total, 46 banks Basic reserve position 1 Excess reserves1 34 46 237 71 31 246 312 -90 85 LESS : 2 Borrowings at F R Banks 4444 4411 4 1155 6633 4466 3 Net interbank Federal funds transactions 15,990 1199,,228822 2200,,445533 19,521 16,472 16,621 21,537 20,085 16,443 EQUALS : Net surplus, or deficit (-): 4 Amount --1166,,000000 --1199,,223366 -20,257 -19,454 -16,457 -16,375 -21,225 -20,237 -16,404 5 Per cent of average required reserves 105.5 130.3 131.2 127.5 106.7 105.2 135.7 120.8 104.7 Interbank Federal funds transactions Gross transactions: 6 Purchases 22,611 24,866 26,820 26,662 24,354 24,929 27,907 25,972 22,582 7 Sales 6,621 5,584 6,367 7,142 7,882 8,308 6,371 5,887 6,139 8 Two-way transactions2 44,,779955 4,517 4,686 4,942 5,191 6,033 5,627 5,031 4,921 Net transactions: 9 Purchases of net buying banks... 17,816 20,349 22,134 21,721 19,164 18,896 22,280 20,941 17,655 10 Sales of net selling banks 1,826 1,068 1,682 2,199 2,691 2,276 744 856 1,213 Related transactions with U.S. Govt." securities dealers 11 Loans to dealers 3 3,436 4,680 4,413 4,173 3,305 4,075 4,408 3,721 3,084 12 Borrowing from dealers4 1,552 1,496 1,359 2,034 2,574 1,712 1,313 1,426 1,532 13 Net loans 1,885 3,184 3,055 2,139 731 2,364 3,095 2,295 1,553 8 banks in New York City Basic reserve position 14 Excess reserves1 -57 57 30 34 4 141 149 -71 21 LESS: 15 Borrowings at F.R. Banks 4444 1166 2299 16 Net interbank Federal funds transactions 55,,004455 66,,993300 7,922 77,,776600 66,,441100 66,,886600 88,,889911 77,,114455 55,,551111 EQUALS : Net surplus, or deficit (-): 17 Amount --55,,114466 -6,873 -7,908 --77,,772266 --66,,440077 -6,719 --88,,774422 -7,244 -5,490 18 Per cent of average required reserves 85.0 117.3 127.5 128.9 106.1 108.8 141.1 105.9 87.2 Interbank Federal funds transactions Gross transactions: 19 Purchases 5,865 7,555 8,548 8,505 7,463 7,481 9,507 7,801 6,515 20 Sales 820 625 626 745 1,053 622 617 656 1,004 21 Two-way transactions2 820 625 626 745 841 622 617 656 11,,000044 Net transactions: 22 Purchases of net buying banks... 5,045 66,,993300 77,,992222 77,,776600 6,622 66,,886600 88,,889900 77,,114455 55,,551111 23 Sales of net selling banks 221122 Related transactions with U.S. Govt, securities dealers 24 Loans to dealers 3 1,966 2,407 2,542 2,573 1,813 2,366 2,316 2,108 1,878 25 Borrowing from dealers4 364 389 367 375 437 534 641 691 784 26 Net loans 1,602 2,018 2,175 2,198 1,377 1,832 1,674 1,417 1,093 38 banks outside New York City Basic reserve position 27 Excess reserves1 91 -11 207 37 27 105 163 -19 6644 LESS: 28 Borrowings at F.R. Banks 2255 4 1155 3344 4466 29 Net interbank Federal funds transactions 10,945 1122,,335522 1122,,553311 11,761 1100,,006622 9,761 1122,,664466 1122,,994400 10,932 EQUALS: Net surplus, or deficit (-): 30 Amount --1100,,885544 -12,363 --1122,,334499 --1111,,772299 --1100,,005500 --99,,665566 --1122,,448833 --1122,,999933 -10,913 31 Per cent of average required reserves 119.1 138.9 133.6 126.6 107.1 102.9 132.1 131.1 116.4 Interbank Federal funds transactions Gross transactions: 32 Purchases 16,746 17,311 18,272 18,158 16,891 17,448 18,400 18,171 16,067 33 Sales 5,801 4,959 5,741 6,397 6,829 7,687 5,754 5,231 5,135 34 Two-way transactions2 3,975 3,892 44,,006600 4,197 44,,335500 55,,441111 55,,001100 44,,337755 33,,992233 Net transactions: 35 Purchases of net buying banks... 12,771 13,419 14,212 13,961 12,542 12,036 13,390 13,796 12,144 36 Sales of net selling banks 1,826 1,068 1,682 2,199 2,480 2,276 744 856 1,213 Related transactions with U.S. Govt, securities dealers 37 Loans to dealers3 1,470 2,272 1,872 1,600 1,492 1,709 2,093 1,613 1,207 38 Borrowing from dealers4 1,188 1,107 992 1,659 2,138 1,178 672 735 747 39 Net loans 282 1,165 880 -60 -646 532 1,421 879 459 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds A7 1.13 Continued 1976, week ending— 1977, week ending— TTyyppee Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 30 -20 25 42 9 38 60 1155 2233 LESS: 41 1188 9 42 Net interbank Federal funds transactions 5,764 5,765 6,140 6,176 5,483 5,942 5,769 6,164 5,027 EQUALS : Net surplus, or deficit (-): 43 Amount -5,735 -5,785 -6,133 -6,134 -5,474 -'5,904 -5,710 -6,158 -5,004 44 Per cent of average required reserves 371.3 391.5 396.5 403.9 350.6 373.9 335566..33 336677..00 333322..11 Interbank Federal funds transactions Gross transactions: 45 Purchases 6,419 6,372 6,786 7,044 6,512 6,890 6,681 7,025 5,864 46 Sales 714 607 646 868 1,029 948 911 862 837 47 Two-way transactions2 714 607 646 856 1,029 902 889 846 837 Net transactions: 48 Purchases of net buying banks... 5,764 5,765 6,140 6,188 5,483 5,988 5,791 6,179 5,027 4499 Sales of net selling banks .. . 12 4466 22 15 Related transactions with U.S. Govt, securities dealers 50 Loans to dealers 3 365 508 565 500 308 331 331 392 299 51 Borrowing from dealers4 390 395 387 299 515 111 304 190 189 52 Net loans -24 114 178 201 -207 220 27 202 110 33 other banks Basic reserve position 53 Excess reserves1 61 9 182 -6 18 68 103 -34 41 LESS: 54 Borrowings at F R Banks 7 4 1155 2255 4466 55 Net interbank Federal funds transactions 5,181 6,587 6,391 5,585 4,579 3,820 6,877 6,776 5,905 EQUALS: Net surplus, or deficit (-): 56 Amount --55,,112200 --66,,557788 --66,,221166 --55,,559955 --44,,557766 -3,752 -6,774 -6,835 -5,910 57 Per cent of average required reserves 67.7 88.6 80.8 72.2 58.5 48.1 86.3 83.0 75.1 Interbank Federal funds transactions Gross transactions: 58 Purchases 10,268 10,939 11,486 11,114 10,380 10,558 11,719 11,145 10,203 59 Sales 5,087 4,353 5,095 5,529 5,801 6,738 4,843 4,369 4,298 60 Two-way transactions2 33,,226611 33,,228855 33,,441144 3,341 3,321 4,509 4,121 3,528 3,086 Net transactions: 61 Purchases of net buying banks... 7,007 7,654 8,072 7,773 7,058 6,049 7,599 7,617 7,118 62 Sales of net selling banks 1,826 1,068 1,682 2,188 2,480 2,229 722 841 1,213 Related transactions with U.S. Govt, securities dealers 63 Loans to dealers3 1,105 1,764 1,307 1,100 1,183 1,379 1,761 1,221 908 64 Borrowing from dealers4 798 712 604 1,361 1,623 1,067 368 545 558 65 Net loans 307 1,052 703 -261 -439 312 1,394 676 350 1 Based on reserve balances, including adjustments to include waivers 4 Federal funds borrowed, net funds acquired from each dealer by of penalties for reserve deficiencies in accordance with changes in Board clearing banks, reverse repurchase agreements (sales of securities to policy effective Nov. 19, 1975. dealers subject to repurchase), resale agreements, and borrowings secured 2 Derived from averages for individual banks for entire week. Figure by U.S. Govt, or other securities. for each bank indicates extent to which the bank's average purchases and sales are offsetting. NOTE.—Weekly averages of daily figures. For description of series, 3 Federal funds loaned, net funds supplied to each dealer by clearing see Federal Reserve BULLETIN for August 1964, pp. 944—53. Back data for banks, repurchase agreements (purchases from dealers subject to resale), 46 banks appear in the Board's Annual Statistical Digest, 1971-1975, or other lending arrangements. Table 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 DomesticN onfinancial Statistics • February 1977 1.14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and recent levels Loans to member banks— Loans to all others Under Sec. 10(b)2 under last par. Sec. 134 Federal Reserve Under Sees. 13 and 13a* BBaannkk Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 1/31/77 date rate 1/31/77 date rate 1/31/77 date 3 rate 1/31/77 date rate Boston 514 11/22/76 5% 534 11/22/76 6 6*4 11/22/76 61/2 81/4 11/22/76 81/2 New York 51/4 11/22/76 5% 534 11/22/76 6 61/4 11/22/76 61/2 81/4 11/22/76 81/2 Philadelphia 51/4 11/22/76 51/2 534 11/22/76 6 614 11/22/76 6*4 814 11/22/76 81/2 Cleveland 514 11/22/76 5% 534 11/22/76 6 614 11/22/76 61/4 81/4 11/22/76 8*4 Richmond 514 11/22/76 51/2 534 11/22/76 6 614 11/22/76 61/2 814 11/22/76 8*4 Atlanta 514 11/22/76 51/2 534 11/22/76 6 614 11/22/76 6V4 814 11/22/76 8*4 Chicago 514 11/22/76 51/2 534 11/22/76 6 61/4 11/22/76 61/2 814 11/22/76 8*4 St. Louis 514 11/26/76 5% 534 11/26/76 6 614 11/26/76 61/2 814 11/26/76 81/2 Minneapolis 51/4 11/22/76 51/2 53/4 11/22/76 6 61/4 11/22/76 61/2 81/4 11/22/76 8*4 Kansas City 514 11/22/76 5% 534 11/22/76 6 614 11/22/76 61/2 814 11/22/76 81/2 Dallas 514 11/22/76 5% 534 11/22/76 6 614 11/22/76 61/2 814 11/22/76 8*4 San Francisco.... 51/4 11/22/76 5*4 534 11/22/76 6 61/4 11/22/76 61/2 814 11/22/76 8*4 Range of rates in recent years5 Range F.R. Range F.R. Range Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— All F.R. of All F.R. of All F.R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1970. 5*4 5*4 1973—Jan. 15. 5 5 1975—Jan. 6 714-73/4 734 Feb. 26. 5-51/z 51/2 10 71/4-734 71/4 1971—Jan. 8. 51/4 Mar. 2. 5*4 51/2 24 71/4 7*4 15. 5*4 51/4 Apr. 23. 5*4-5% 5% Feb. 5 634-714 634 19. 5 -514 51/4 May 4. 53/4 53/4 7 634 . 634 22., 5 -5V4 5 11. 534-6 6 Mar. 10 614-634 6*4 29. 5 5 18. 6 6 14 61/4 614 Feb. 13. 4%-5 5 June 11. 6-6*4 61/2 May 16 6-6*4 6 19. 43/4 4V4 15. 6Vi 61/2 23 6 6 July 16. 43^-5 5 July 2. 7 7 23. 5 Aug. 14. 7-71/2 71/2 1976—Jan. 19 5*4-6 51/2 Nov. 11. 43/4-5 5 23. 71/2 71/2 23 51/2 51/2 19. 43/4 434 Dec. 13. 43/4 1974—Apr. 25. 7*4-8 8 Nov. 22 514-51/2 5i4 17. 4V2-4V4 4*4 30. 8 8 26 5*4 5*4 24. 4 *4 41/2 Dec. 9, 734-8 734 16, 734 734 In effect Jan. 31, 1977... 514 5*4 1 Discounts of eligible paper and advances secured by such paper or by 4 Advances to individuals, partnerships, or corporations other than U.S. Govt, obligations or any other obligations eligible for F.R. Bank member banks secured by direct obligations of, or obligations fully purchase. guaranteed as to principal and interest by, the U.S. Govt, or any agency 2 Advances secured to the satisfaction of the F.R. Bank. Advances thereof. secured by mortgages on 1- to 4-family residential property are made at 5 Rates under Sees. 13 and 13a (as described above). For description the Section 13 rate. and earlier data, see the following publications of the Board of Governors: 3 Applicable to special advances described in Section 201.2(e)(2) of Banking and Monetary Statistics, 1914-1941, Banking and Monetary Regulation A. Statistics, 1941-1970, and Annual Statistical Digest, 1971-75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 MEMBER BANK RESERVE REQUIREMENTS1 Per cent of deposits Requirements in effect Previous requirements Jan. 31, 1977 TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall iinn mmiilllliioonnss ooff ddoollllaarrss Per cent Effective date Per cent Effective date Net demand:2 0-2 7 12/30/76 71/2 2/13/75 2-10 91/z 12/30/76 10 2/13/75 10-100 11V4 12/30/76 12 2/13/75 100-400 12V4 12/30/76 13 2/13/75 Over 400 161/4 12/30/76 I6I/2 2/13/75 Time:2,3 Savings 3 3/16/67 3 Vi 3/2/67 Other time: 0-5, maturing in— 30-179 days 3 3/16/67 3% 3/2/67 180 days to 4 years 4 21/2 1/8/76 3 3/16/67 4 years or more 4 1 10/30/75 3 3/16/67 Over 5, maturing in— 30-179 days 6 12/12/74 5 10/1/70 180 days to 4 years 42Vi 1/8/76 3 12/12/74 4 years or more 41 10/30/75 3 12/12/74 Legal limits, Jan. 31, 1977 Minimum Maximum Net demand: Reserve city banks 10 22 Other banks 7 14 3 10 1 For changes in reserve requirements beginning 1963, see Board's (c) Member banks are required under the Board's Regulation M to Annual Statistical Digest, 1971-1975 and for prior changes, see Board's maintain reserves against foreign branch deposits computed on the basis Annual Report for 1975, Table 13. of net balances due from domestic offices to their foreign branches and 2 (a) Requirement schedules are graduated, and each deposit interval against foreign branch loans to U.S. residents. Loans aggregating $100,000 applies to that part of the deposits of each bank. Demand deposits or less to any U.S. resident are excluded from computations, as are total subject to reserve requirements are gross demand deposits minus cash loans of a bank to U.S. residents if not exceeding $1 million. Regulation D items in process of collection and demand balances due from domestic imposes a similar reserve requirement on borrowings from foreign banks banks. by domestic offices of a member bank. A reserve of 4 per cent is required (b) The Federal Reserve Act specifies different ranges of requirements for each of these classifications. for reserve city banks and for other banks. Reserve cities are designated 3 Negotiable orders of withdrawal (NOW) accounts and time deposits under a criterion adopted effective Nov. 9, 1972, by which a bank having such as Christmas and vacation club accounts are subject to the same net demand deposits of more than $400 million is considered to have the requirements as savings deposits. character of business of a reserve city bank. The presence of the head 4 The average of reserves on savings and other time deposits must be office of such a bank constitutes designation of that place as a reserve at least 3 per cent, the minimum specified by law. city. Cities in which there are F.R. Banks or branches are also reserve cities. Any banks having net demand deposits of $400 million or less NOTE.—Required reserves must be held in the form of deposits with are considered to have the character of business of banks outside of F.R. Banks or vault cash. reserve cities and are permitted to maintain reserves at ratios set for banks not in reserve cities. For details, see the Board's Regulation D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • February 1977 .16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Per cent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect Dec. 31, 1976 Previous maximum In effect Dec. 31, 1976 Previous maximum Per cent Effective Per cent Effective Per cent Effective Per cent Effective date date date date Savings 5 7/1/73 41/2 1/21/70 51/4 (4) 5 (5) Negotiable order of withdrawal (NOW) accounts1 5 11//11//7744 5 11//11//7744 Time (multiple- and single-maturity unless otherwise indicated):2 30-89 days: S M in u g lt le ip -m lea m tu a r t i u ty r ity J1 5 77//11//7733 // II 44 55 11 //22 9 1 / / 2 2 6 1 / / 6 7 6 0 }} ((66)) ((66)) 90 days to 1 year: S M in u g lt l i e p -m le- a m tu a r t i u ty r ity } 51/2 7/1/73 5 { 9 7 / / 2 2 6 0 / / 6 6 6 6 } 3 53/4 (4) 51/4 1/21/70 2 2 1 l / t t i o o t 2 2 o l / y i 4 e y y a e e r a a s r r 3 s s 3 } 6 6 1 /2 7 7 / / 1 1 / / 7 7 3 3 / I 5 5 5 3 3 i/ / ^ 2 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 } 6 6 1 3 / ^ 2 ( ( 4 4 ) ) / I 6 5 6 3 ^ 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 4 6 t y o e a 6 r s y e o a r r m s ore 77 77 11 11 // // 44 22 1122 1111 //22 //11 33 // // 77 77 33 44 II (( VV 77)) AA 11/1/73 77771133////2244 11 11 22 11 //22 // 33 11 // // 77 77 44 33 77 (( 11 77 // )) 22 11/1/73 Governmental units (all maturities) m 12/23/74 71/2 11/27/74 m 12/23/74 71/2 11/27/74 1 For authorized States only. Federally insured commercial banks, were limited to the 6V£ per cent ceiling on time deposits maturing in 7\/i savings and loan associations, cooperative banks, and mutual savings years or more. banks were first permitted to offer NOW accounts on Jan. 1, 1974. Effective Nov. 1, 1973, the present ceilings were imposed on certificates Authorization to issue NOW accounts was extended to similar institu- maturing in 4 years or more with minimum denominations of $1,000. tions throughout New England on Feb. 27, 1976. There is no limitation on the amount of these certificates that banks can 2 For exceptions with respect to certain foreign time deposits see the issue. In December 1975, the Federal regulatory agencies removed the Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p. minimum-denomination requirement on time deposits representing funds 1094), and February 1968 (p. 167). contributed to an individual retirement account (IRA) established pursuant 3 A minimum of $1,000 is required for savings and loan associations, to the Internal Revenue Code. Similar action was taken for Keogh (H.R. except in areas where mutual savings banks permit lower minimum de- 10) plans in November 1976. nominations. This restriction was removed for deposits maturing in less than 1 year, effective Nov. 1, 1973. NOTE—Maximum rates that can be paid by Federally insured commer- 4 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and cial banks, mutual savings banks, and savings and loan associations are loan associations. established by the Board of Governors of the Federal Reserve System, 5 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and the Board of Directors of the Federal Deposit Insurance Corporation, loan associations. and the Federal Home Loan Bank Board under the provisions of 12 6 No separate account category. CFR 217, 329, and 526, respectively. The maximum rates on time de- 7 Between early July 1, 1973, and Oct. 31, 1973, there was no ceiling for posits in denominations of $100,000 or more were suspended in midcertificates maturing in 4 years or more with minimum denominations 1973. For information regarding previous interest rate ceilings on all of $1,000; however, the amount of such certificates that an institution types of accounts, see earlier issues of the Federal Reserve BULLETIN, could issue was limited to 5 per cent of its total time and savings deposits. the Federal Home Loan Bank Board Journal, and the Annual Report Sales in excess of that amount, as well as certificates of less than $1,000, of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1976 TTyyppee ooff ttrraannssaaccttiioonn 11997744 11997755 11997766 June July Aug. Sept. Oct. Nov. Dec. U.S. Govt, securities Outright transactions (excl. matched sale-purchase transactions): Treasury bills: 1 Gross purchases 11111111,,,,666666660000 11111111,,,,555566662222 11114444,,,,333344443333 2222,,,,777711119999 222777999 1,100 11,,112255 618 333344446666 997755 5555,,,,888833330000 5555,,,,555599999999 8888,,,,444466662222 555522224444 111,,,444111333 117711 444488880000 11,,554466 4444,,,,555555550000 2222 6666,,,,444433331111 2222 5555,,,,000011117777 333355550000 888777555 220000 666600000000 Others within 1 year:1 444455550000 3333,,,,888888886666 444477772222 88883333 4422 112299 11118888 5599 6 Exchange, or maturity shift ---111,,,111888333 ---444 792 -449 59 -1,525 -285 66 1,047 7 111333111 333,,,555444999 1 to 5 years: 777999777 222333,,,222888444 2222 3333,,,,222200002222 661177 330011 558800 111133 668811 111177777777 10 Exchange, or maturity shift --669977 33,,885544 ----2222,,,,555588888888 444499 -59 --7799 228855 -66 443300 --77 5 to 10 years: 11 Gross purchases 443344 11,,551100 1111,,,,000044448888 119955 7722 227722 6622 117700 111,,,666777555 ---444,,,666999777 111,,,555777222 111,,,333555444 ---111,,,111666777 Over 10 years: 14 Gross purchases 111999666 111,,,000777000 666444222 9966 666555 9955 777333 111199 222220000055555 888884444488888 222222222255555 225500 -----333331111100000 All maturities:1 17 Gross purchases 1111133333,,,,,555553333377777 22222 2222211111,,,,,333331111133333 1111199999,,,,,777770000077777 333,,,777000999 222777999 11,,557799 22,,220022 618 666661111122222 22,,000044 18 Gross sales 44444 55555 ,,,,, ,,,,, 66666 88888 88888 33333 22222 00000 2222299999 55555 ,,,,, ,,,,, 99999 55555 88888 99999 00000 99999 2222255555 88888 ,,,,, ,,,,, 00000 66666 11111 33333 77777 99999 555 333 222 555 444 000 111,,,444 888 111 777 333 555 117711 220000 44444 66666 88888 00000 00000 00000 11,,554466 Matched sale-purchase transactions: 20 Gross sales 6666644444,,,,,222222222299999 111115555511111,,,,,222220000055555 111119999966666,,,,,000007777788888 222000,,,999777333 111000,,,555222222 16,389 19,828 2233,,228899 2222222222,,,,,666667777755555 23,193 21 Gross purchases 6666622222,,,,,888880000011111 111115555522222,,,,,111113333322222 111119999966666,,,,,555557777799999 222111,,,222000555 111000,,,444666888 16,180 19,563 2244,,550011 2222211111,,,,,555552222255555 24,343 Repurchase agreements: 22 Gross purchases 7777711111,,,,,333333333333333 111114444400000,,,,,333331111111111 222223333322222,,,,,888889999911111 111444,,,444000999 111222,,,999444777 26,641 24,108 1166,,660033 1111177777,,,,,666661111122222 30,872 23 Gross sales 7777700000,,,,,999994444477777 111113333399999,,,,,555553333388888 222223333300000,,,,,333335555555555 111333,,,666444333 111444,,,666555777 24,655 23,477 1188,,882211 2222200000,,,,,111117777733333 27,119 24 Net change 11111,,,,,999998888844444 77777,,,,,444443333344444 333,,,888333444 ---333,,,777777333 3,357 2,397 --558888 5,361 99999,,,,,000008888877777 -----44444,,,,,111117777799999 Federal agency obligations Outright transactions: 25 Gross purchases 33333,,,,,000008888877777 11111,,,,,666661111166666 111111111155555 27 Redemptions . . .... 332222 224466 888881199999661111199 2222 2277 2222 1144 6633 Repurchase agreements: 28 Gross purchases 2233,,220044 1155,,117799 1100,,552200 669999 495 776699 11,,007711 705 889977 11,,338800 29 Gross sales 2222,,773355 1155,,556666 1100,,336600 557766 726 667744 888899 949 997766 11,,110022 Bankers acceptances 30 Outright transactions, net 551111 116633 --554455 --7788 -31 --6688 --5555 -9 --99 88 31 Repurchase agreements, net 442200 --3355 441100 222299 -339 222200 8855 -492 --114400 779955 32 Net change in System Account 66,,114499 88,,553399 99,,883333 44,,008866 -4,375 33,,557777 22,,558877 -1,332 --44,,330077 66,,337799 1 Both gross purchases and redemptions include special certificates amounting to $189 million. Acquisition of these notes is treated as a created when the Treasury borrows directly from the Federal Reserve, purchase; the run-off of bills, as a redemption. as follows (millions of dollars): 1973, 1,187; 1974, 131; and 1975, 3,549. 2 In 1975, the System obtained $421 million of 2-year Treasury notes NOTE.—Sales, redemptions, and negative figures reduce holdings of in exchange for maturing bills. In 1976 there was a similar transaction the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • February 1977 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars 1976 1977 1976 1977 Account Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26p Nov. 30 Dec. 31 Jan. 31r Consolidated condition statement ASSETS 1 Gold certificate account 11,598 11,598 11,658 11,658 11,658 11,598 11,598 2 Special Drawing Rights certificate account. 1,200 1,200 1,200 1,200 1,200 1,200 1,200 3 Cash 357 351 361 373 381 362 364 Loans: 4 Member bank borrowings 375 29 32 643 482 40 25 5 Other Acceptances: 7 6 H Bo e u ld g h u t n d ou er tr r ig e h p t u rchase agreements., 8 1 2 9 1 6 5 1 6 9 2 6 3 1 4 9 7 6 2 1 5 9 6 7 2 1 6 9 8 3 188 7 1 9 9 5 6 Federal agency obligations: 9 8 H Bo e u ld g h u t n o d u er tr r ig e h p t u rchase agreements. 6,7 4 9 0 4 9 6,7 2 9 3 4 5 6,79 8 4 7 6,7 1 9 0 0 0 6,7 1 9 9 0 9 6,857 6,7 2 9 7 4 8 U.S. Govt, securities Bought outright: 10 Bills 37,345 38,437 36,956 35,513 39,675 37,992 38,571 11 Certificates—Special 12 Other 13 Notes 47,470 47,972 47,972 47.972 48,601 47,089 47,972 14 Bonds 6,690 6,725 6,725 6,725 6,773 6,579 6,725 15 Total i 91,505 93,134 91,653 90,210 95,049 91,660 93,268 16 Held under repurchase agreements. 9,454 2,375 2,944 1,344 2,360 3,753 17 Total U.S. Govt, securities. 100,959 95,509 94,597 91,554 97,409 91,660 97,021 18 Total loans and securities.. 109,554 103,325 102,053 99,540 105,341 98,745 105,109 19 Cash items in process of collection... 8,970 10,743 8,582 10,034 7,712 8,785 7.835 20 Bank premises 363 292 365 365 366 364 363 21 Operating equipment 26 28 25 Other assets: 22 Denominated in foreign currencies. 175 170 188 199 212 546 170 23 All other 2,678 2,509 2,596 2,750 3,438 2,423 2,620 24 Total assets. 134,921 130,188 127,003 126,119 130,308 124,051 129,284 LIABILITIES 25 F.R. notes 84,494 83,759 83,195 82,330 81,666 83,055 83,727 Deposits: 26 Member bank reserves 30,357 30,610 27,847 27,548 28,570 23,239 25,158 27 U.S. Treasury—General account. 9,684 5,400 6,303 6,123 10,283 6,766 10,393 28 Foreign 257 269 243 228 253 305 352 29 Other2 932 690 769 784 722 1,022 1,357 30 Total deposits. 41,230 36,969 35,162 34,683 39,828 31,332 37,260 Deferred availability cash items 5.630 6,407 5,487 5,846 5,398 6,150 5,234 Other liabilities and accrued dividends. 1,152 1,003 998 981 1,020 1,065 1,097 33 Total liabilities 132,506 128,138 124,842 123,840 127,912 121,602 127,318 CAPITAL ACCOUNTS 34 Capital paid in 984 983 984 984 984 974 983 35 Surplus 929 983 983 983 983 929 983 36 Other capital accounts 502 194 312 429 546 37 Total liabilities and capital accounts 134,921 130,188 127,003 129,284 126,119 130,308 124,051 MEMO: 38 Marketable U.S. Govt, securities held in custody for foreign and intl. account 50,345 51,212 51,996 52,020 51,798 48,000 50,269 Federal Reserve note statement 39 F.R. notes outstanding (issued to Bank) 89,262 89,185 89,039 88,894 88,712 87,650 89,303 88,603 Collateral held against notes outstanding: 40 Gold certificate account 11,596 11,596 11,656 11,656 11,656 11,596 11,596 11,656 41 Special Drawing Rights certificate account.... 643 643 643 643 643 643 643 643 42 Acceptances 43 U.S. Govt, securities 78,050 78,100 78,100 78,100 78,ioo 76,850 78,100 78,100 44 Total collateral. 90,289 90,339 90,399 90,399 90,399 89,089 90,339 90,399 i Includes securities loaned—fully guaranteed by U.S. Govt, securities 2 Includes certain deposits of domestic nonmember banks and foreignpledged with F.R. Banks—and excludes (if any) securities sold and owned banking institutions voluntarily held with member banks and scheduled to be bought back under matched sale-purchase transactions. redeposited in full with F.R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks A13 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity 1976 1977 1976 1977 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Nov. 30 Dec. 31 1 Loans 375 30 29 642 482 26 2 Within 15 days 369 24 23 640 480 17 3 16 days to 90 days. 6 6 6 2 2 9 4 91 days to 1 year... 5 Acceptances 1,017 758 543 453 461 188 991 6 Within 15 days 841 586 371 289 302 27 818 1 16 days to 90 days. 112 107 104 106 103 99 112 8 91 days to 1 year... 64 65 68 58 56 62 61 U.S. Govt, securities 100,959 95.509 94,597 91,554 97,409 91,660 97,021 Within 15 days1 13,354 7,081 5,404 3,323 7,081 2,322 7,207 16 days to 90 days 17,200 18,607 18,701 17,814 18,770 19,683 19,221 91 days to 1 year 26,216 25,117 25,788 25,713 26,204 25,914 25,889 Over 1 year to 5 years. . , 30,278 30,710 30,710 30,710 31,185 30,036 30,710 Over 5 years to 10 years. 8,997 9,045 9,045 9,045 9,173 8,876 9,045 Over 10 years 4,914 4,949 4,949 4,949 4,996 4,829 4,949 16 Federal agency obligations.. 7,203 7,029 6,881 6,890 6,989 6,857 7,072 17 Within 15 days i 450 247 99 148 239 206 319 18 16 days to 90 days 296 325 325 285 330 167 309 19 91 days to 1 year 977 1,031 1,031 1,031 1,037 995 964 20 Over 1 year to 5 years. . . 3,355 3,307 3,307 3,323 3,361 3,370 3,355 21 Over 5 years to 10 years. 1,388 1,382 1,382 1,366 1,281 1,381 1,388 22 Over 10 years 737 737 737 737 741 738 737 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 DEMAND DEPOSIT ACCOUNTS Debits and Rate of Turnover Seasonally adjusted annual rates 1976 SSttaannddaarrdd mmeettrrooppoolliittaann ssttaattiissttiiccaall aarreeaa 11997733 11997744 11997755 Aug. Sept. Oct. Nov. Dec. Debits (billions of dollars)2 1111 AAAAllllllll 222233333333 SSSSMMMMSSSSAAAA''''ssss 18,641.3 22,192.2 23.565.1 27.875.0 27.250.2 27,406.2 28.061.4 28,914.3 2222 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 8.097.7 9.931.8 10,970.9 13.221.1 12,727.9 13,522.0 13.495.5 13,835.0 3333 222233332222 SSSSMMMMSSSSAAAA''''ssss 10,543.6 12,260.6 12.594.2 14,653.9 14.522.3 13,884.2 14,565.9 15,079.3 4444 6666 lllleeeeaaaaddddiiiinnnngggg SSSSMMMMSSSSAAAA''''ssss ooootttthhhheeeerrrr tttthhhhaaaannnn NNNN....YYYY....CCCC.... iiii 4.462.8 5,152.7 4,937.5 5,935.8 5,857.3 5,447.9 5,693.2 5,917.1 5555 222222226666 ooootttthhhheeeerrrrssss 6,080.8 7.107.9 7,661.8 8,718.1 8,665.0 8,436.3 8,872.7 9,162.3 Turnover of deposits (annual rate) 6666 AAAAllllllll 222233333333 SSSSMMMMSSSSAAAA''''ssss 110.2 128.0 131.0 148.6 145.8 146.4 147.2 153.2 7777 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 269.8 312.8 351.8 400.6 393.7 416.2 395.1 419.8 8888 222233332222 SSSSMMMMSSSSAAAA''''ssss 75.8 86.6 84.7 94.8 94.0 89.8 93.1 96.8 9999 6666 lllleeeeaaaaddddiiiinnnngggg SSSSMMMMSSSSAAAA''''ssss ooootttthhhheeeerrrr tttthhhhaaaannnn NNNN....YYYY....CCCC.... iiii 115.0 131.8 118.4 138.2 136.1 126.6 131.7 136.9 11110000 222222226666 ooootttthhhheeeerrrrssss 60.6 69.3 71.6 78.1 77.7 75.6 78.3 81.4 1 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and NOTE.—Total SMSA's includes some cities and counties not designated Los Angeles-Long Beach. as SMSA's. 2 Excludes interbank and U.S. Govt, demand deposit accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • February 1977 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars; averages of daily figures 1976 1973 1974 1975 Dec. Dec. Dec. Item June July Aug. Sept. Oct. Nov. Dec. 3 Seasonally adjusted MEASURES l 1 M-l 270.5 283.1 294.8 303.2 304.9 306.4 306.3 309.8 309.8 311.9 2 M-2 571.4 612.4 664.3 698.5 705.4 710.8 716.4 725.8 732.0 739.6 3 M-3 919.5 981.6 1,092.9 1,157.4 1,169.9 1,182.3 1,195.3 1,211.7 1,223.4 1,236.5 4 M-4 634.9 702.2 747.2 769.1 774.9 775.1 778.8 787.9 794.0 803.4 5 M-5 982.9 1,071.4 1,175.8 1,228.0 1,239.4 1,246.7 1,257.7 1,273.7 1,285.5 1,300.3 COMPONENTS 6 Currency 61.5 67.8 73.7 77.6 78.1 78.6 7799..11 7799..88 8800..33 8800..77 Commercial bank deposits: 7 Demand 209.0 215.3 221.0 225.6 226.8 227.8 227.2 230.0 229.5 231.2 9 8 Tim Ne e g a o n t d ia s b a l v e i n C g D s 's2 36 6 4 3 . . 4 5 41 8 9 9 . . 1 8 45 8 2 2 . . 4 9 46 7 5 0 . . 9 6 47 6 0 9 . . 0 6 46 6 8 4 . . 7 4 47 6 2 2 . . 5 4 47 6 8 2 . . 0 0 48 6 4 2 . . 2 1 49 6 1 3 . . 5 8 10 Other 300.9 329.3 369.6 395.3 400.4 404.4 410.1 416.0 422.2 427.7 11 Nonbank thrift institutions 3 348.0 369.2 428.6 458.9 464.5 471.6 478.9 485.8 491.4 496.9 Not seasonally adjusted MEASURES i 12M-1 278.3 291.3 303.2 302.5 305.2 303.1 304.4 308.7 311.8 320.8 13 M-2 576.5 617.5 669.3 699.8 705.8 707.4 712.8 722.9 729.6 744.6 14 M-3 921.8 983.8 1,094.6 1.162.3 1,173.8 1,178.7 1,189.2 1,205.5 rl,216.5 1,237.6 15 M- 4 640.5 708.0 752.8 768.9 774.6 773.6 778.0 787.1 792.5 808.8 16M-5 985.8 1,074.3 1,178.1 1.231.4 1,242.6 1,245.0 1,254.5 1,269.7 1,279.3 1,301.9 COMPONENTS 17 Currency 62.7 69.0 75.1 77.8 78.7 78.9 79.0 79.6 80.8 , 82.2 Commercial bank deposits: 18 Demand. . . 2/5.7 222.2 228.1 224.7 226.5 224.3 225.4 229.1 230.9 238.6 19 Member 156.5 159.7 162.1 159.3 160.2 158.5 159.1 161.8 162.6 168.6 20 Domestic nonmember 56.3 58.5 62.6 62.3 62.8 62.4 63.2 64.1 65.0 66.5 2 2 1 2 Tim N e e g a o n ti d a s b a le vi n C g D s 's2 36 6 2 4 . . 2 0 41 9 6 0 . . 7 5 44 8 9 3 . . 6 5 46 6 6 9 . . 4 1 46 6 9 8 . . 4 9 47 6 0 6 . . 5 3 4 6 73 5 . . 7 3 4 6 78 4 . . 4 2 4 6 80 2 . . 7 9 48 6 8 4 . . 0 3 23 Other 298.2 326.3 366.2 397.3 400.6 404.2 408.4, 414.2 417.9 423.8 24 Nonbank thrift institutions 3 345.3 366.3 425.3 462.5 468.0 471.3 476.4 482.6 486.8 493.1 25 U.S. Govt, deposits (all commercial banks) 6.3 4.9 4.1 4.8 3.4 3.6 4.9 3.8 4.0 4.4 1 Composition of the money stock measures is as follows: M-4: M-2 plus large negotiable CD's. M-5: M-3 plus large negotiable CD's. M-1: Averages of daily figures for (1) demand deposits of commercial For a descrip ton of the latest revisions in the money stock measures, banks other than domestic interbank and U.S. Govt., less cash items in see "Revision of Money Stock Measures" on pp. 82-87 of the February process of collection and F.R. float; (2) foreign demand balances at F.R. 1976 BULLETIN. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults Latest monthly and weekly figures are available from the Board's H.6 of commercial banks. release. Back data are available from the Banking Section, Division of M-2: M-1 plus savings deposits, time deposits open account, and time Research and Statistics. certificates of deposits (CD's) other than negotiable CD's of $100,000 or 2 Negotiable time CD's issued in denominations of $100,000 or more more of large weekly reporting banks. by large weekly reporting commercial banks. M-3: M-2 plus the average of the beginning and end-of-month deposits 3 Average of the beginning- and end-of-month figures for deposits of of mutual savings banks, savings and loan shares, and credit union shares mutual savings banks, for savings capital at savings and loan associations, (nonbank thrift). and for credit union shares. NOTES TO TABLE 1.23: 1 Adjusted to exclude domestic commercial interbank loans. "Other securities," and $600 million in "Total loans and investments." 2 Loans sold are those sold outright to banks' own foreign branches, As of Oct. 31, 1974, "Total loans and investments" of all commercial nonconsolidated nonbank affiliates of the bank, the banks' holding banks were reduced by $1.5 billion in connection with the liquidation company (if not a bank), and nonconsolidated nonbank subsidiaries of of one large bank. Reductions in other items were: "Total loans," $1.0 the holding company. Prior to Aug. 28, 1974, the institutions included billion (of which $0.6 billion was in "Commercial and industrial loans"), had been defined somewhat differently, and the reporting panel of banks and "Other securities," $0.5 billion. In late November "Commercial and was also different. On the new basis, both "Total loans" and "Com- industrial loans" were increased by $0.1 billion as a result of loan remercial and industrial loans" were reduced by about $100 million. classifications at another large bank. 3 Reclassification of loans reduced these loans by about $1.2 billion as of Mar. 31, 1976. NOTE.—Data are for last Wednesday of month except for June 30 4 Data beginning June 30, 1974, include one large mutual savings and Dec. 31; data are partly or wholly estimated except when June 30 bank that merged with a nonmember commercial bank. As of that date and Dec. 31 are call dates. there were increases of about $500 million in loans, $100 million in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A15 1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks Billions of dollars; averages of daily figures 1976 1973 1974 1975 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1 Reserves 1 34.98 36.63 34.75 34.14 34.34 34.39 34.52 34.36 34.49 34.88 35.00 2 Nonborrowed 33.69 35.90 34.62 34.02 34.21 34.25 34.42 34.30 34.39 34.81 34.95 3 Required 34.68 36.37 34.49 33.93 34.12 34.15 34.32 34.16 34.27 34.62 34.72 4 Deposits subject to reserve requirements 2 442.8 486.9 506.0 507.8 513.9 514.9 513.6 515.3 519.6 525.3 530.0 5 Time and savings 279.7 322.9 338.7 338.3 342.3 344.2 341.1 342.6 345.9 350.0 355.5 Demand: 6 Private 158.1 160.6 164.4 167.2 167.9 168.0 168.7 168.9 170.3 170.8 171.2 7 U.S. Govt 5.0 3.4 3.0 2.3 3.7 2.7 3.9 3.8 3.4 4.5 3.2 8 Deposits plus nondeposit items 3 449.4 495.3 514.4 515.3 522.3 523.6 522.5 523.5 528.6 534.4 539.2 Not seasonally adjusted 9 Deposits subject to reserve requirements 2 447.5 491.8 510.9 506.0 512.7 513.9 511.3 514.9 518.9 522.5 534.8 10 Time and savings 278.5 321.7 337.2 339.9 342.5 343.7 342.7 344.1 346.7 347.6 353.6 Demand: 11 Private 164.0 166.6 170.7 163.4 166.7 167.7 165.9 167.2 169.5 171.9 177.9 12 U.S. Govt 5.0 3.5 3.1 2.8 3.6 2.5 2.7 3.6 2.8 3.0 3.3 13 Deposits plus nondeposit items 3 454.0 500.1 519.3 513.6 521.2 522.7 520.2 523.1 527.9 531.5 544.0 1 Series reflects actual reserve requirement percentages with no adjust- deposits except those due to the U.S. Govt., less cash items in process of ment to eliminate the effect of changes in Regulations D and M. There collection and demand balances due from domestic commercial banks. are breaks in series because of changes in reserve requirements effective 3 "Total member bank deposits" subject to reserve requirements, plus Dec. 12, 1974; Feb. 13, May 22, and Oct. 30, 1975; and Jan. 8, 1976. Euro-dollar borrowings, loans sold to bank-related institutions, and In addition, effective Jan. 1, 1976, statewide branching in New York certain other nondeposit items. This series for deposits is referred to as was instituted. The subsequent merger of a number of banks raised "the adjusted bank credit proxy." required reserves because of higher reserve requirements on aggregate deposits at these banks. NOTE.—Back data and estimates of the impact on required reserves 2 Includes total time and savings deposits and net demand deposits as of changes in reserve requirements are shown in Table 14 of the Board's defined by Regulation D. Private demand deposits include all demand Annual Statistical Digest, 1971-1975. 1.23 LOANS AND INVESTMENTS All Commercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 1976 1977 1973 4 1974 1975 Dec. 31 Dec. 31 Dec. 31 Category July 28 Aug. 25 Sept. 29 Oct. 27 Nov. 24 Dec. 31 Jan. 26 V V V V V V V Seasonally adjusted ! Loans and investments1 633.4 690.4 721.1 743.1 748.7 752.5 760.3 766.3 767.5 773.1 2 Including loans sold outright2 637.7 695.2 725.5 747.7 752.8 756.6 764.3 770.3 771.6 777.4 Loans: 3 Total 449.0 500.2 496.9 504.7* 507.6 511.4 519.3 521.8 521.6 528.4 4 Including loans sold outright2 453.3 505.0 501.3 509.3 511.7 515.5 523.3 525.8 525.7 532.7 5 Commercial and industrial3 156.4 183.3 176.0 171.0 171.0 172.0 174.8 176.7 176.2 177.1 6 Including loans sold outright2,3 159.0 186.0 178.5 173.9 173.6 174.6 177.4 179.3 178.8 180.0 Investments: 7 U.S. Treasury 54.5 50.4 79.4 92.7 95.0 94.0 93.5 94.3 96.5 95.7 8 Other 129.9 139.8 144.8 145.7 146.1 147.1 147.5 150.2 149.4 149.0 Not seasonally adjusted 9 Loans and investments1 647.3 705.6 737.0 740.3 746.1 752.9 758.7 766.0 784.4 771.4 10 Including loans sold outright 651.6 710.4 741.4 744.9 750.2 757.0 762.7 770.0 788.5 775.7 Loans: 11 Total i 458.5 510.7 507.4 505.2 508.5 513.3 518.2 520.6 532.6 523.6 12 Including loans sold outright2 462.8 515.5 511.8 509.8 512.6 517.4 522.2 524.6 536.7 527.9 13 Commercial and industrial3 159.4 186.8 179.3 170.7 170.3 172.5 174.2 176.0 179.5 175.2 14 Including loans sold outright2,3 162.0 189.5 181.8 173.6 172.9 175.1 176.8 178.6 182.1 178.1 Investments: 15 U.S. Treasury 58.3 54.5 84.1 89.5 91.8 92.6 93.5 96.9 101.7 99.8 16 Other 130.6 140.5 145.5 145.6 145.8 147.0 147.0 148.6 150.2 148.0 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • February 1977 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars, except for number of banks 1974 1975 1976 3 1977 Account Dec. 31 Dec. 31 May 26p June 30p July 28^ Aug. 25*> Sept. 29 p Oct. 27p Nov. 24p Dec. 29p Jan. 26* All commerical ! Loans and investments 744.1 775.8 766.8 779.8 772.5 782.1 790.4 796.9 805.6 826.4 811.5 2 Loans, gross 54<?.2 546.2 531.8 543.7 537.6 544.5 550.8 556.4 560.2 576.0 563.7 Investments: 3 U.S. Treasury securities. .. 54.5 84.1 90.4 90.8 89.5 91.8 92.6 93.5 96.9 101.2 99.8 4 Other 140.5 145.5 144.6 145.3 145.5 145.8 146.9 147.0 148.6 149.2 148.0 5 Cash assets 128.0 133.6 111.7 125.2 111.5 109.1 118.7 115.2 124.3 128.7 117.8 6 Currency and coin 11.7 12.3 12.0 12.0 12.2 12.0 12.2 12.5 11.8 13.9 12.6 7 Reserves with F.R. Banks. . . 27.1 26.8 26.2 27.1 28.0 25.4 29.7 26.4 29.1 29.9 28.6 8 Balances with banks 42.0 47.3 36.1 40.4 34.6 36.1 36.1 36.7 40.2 39.8 37.2 9 Cash items in process of collection.. 47.3 47.3 37.4 45.7 36.7 35.6 40.6 39.5 43.3 45.1 39.4 10 Total assets/total liabilities and capital i 919.6 964.9 927.7 957.1 934.3 940.5 960.0 962.6 982.9 1,010.8 983.4 11 Deposits 747.9 786.3 754.1 782.8 761.2 759.4 773.3 777.9 789.1 812.4 792.2 Demand: 12 Interbank 43.5 41.8 33.1 38.3 33.1 33.4 35.2 34.8 39.9 39.1 35.7 13 U.S. Govt 4.8 3.1 3.5 4.7 3.5 3.7 5.8 3.7 3.3 3.4 3.9 14 Other 267.5 278.7 247.5 266.4 250.6 247.4 252.9 258.2 260.8 275.9 256.9 Time: 15 Interbank 11.5 12.0 10.5 10.6 10.2 9.7 9.5 9.1 9.0 9.2 8.8 16 Other 420.6 450.6 459.4 462.9 463.8 465.3 469.9 472.2 476.1 484.8 486.8 17 Borrowings 58.4 60.2 66.2 65.9 66.8 72.3 77.5 76.0 83.6 88.0 81.2 18 Total capital accounts2 63.7 69.1 71.4 72.1 72.2 72.5 73.1 73.7 74.1 75.0 75.5 M 19 E M N O: u mber of banks 14,465 14,633 14,637 14,636 14,635 14,649 14,655 14,659 r14,674 r14,671 14,671 Member 20 Loans and investments 568.5 578.6 567.1 577.5 570.1 578.2 583.6 588.6 595.3 612.7 598.8 21 Loans, gross 429.5 416.4 402.3 411.7 405.3 410.8 415.1 419.5 421.9 435.3 424.2 Investments: 22 U.S. Treasury securities. .. 38.9 61.5 65.0 65.6 64.4 66.7 67.0 67.7 70.8 74.3 72.6 23 Other 100.1 100.7 99.7 100.2 100.3 100.7 101.5 101.4 102.6 103.1 102.0 24 Cash assets, total 107.0 108.5 92.3 104.0 92.3 89.4 98.9 94.9 103.0 107.6 97.7 25 Currency and coin 8.8 9.2 9. 1 9.0 9.1 9.0 9.2 9.4 8.9 10.5 9.5 26 Reserves with F.R. Banks. . . 27.1 26.8 26.2 27.1 28.0 25.4 29.8 26.4 29.1 29.9 28.6 27 Balances with banks 25.5 26.9 20.9 23.8 19.6 20.5 20.6 20.9 23.3 23.5 21.5 28 Cash items in process of collection.. 45.6 45.5 36.1 44.1 35.5 34.4 39.3 38.2 41.8 43.7 38.1 29 Total assets/total liabilities and capital i 715.6 733.6 702.3 726.8 706.2 710.7 726.8 727.6 744.8 769.1 744.6 30 Deposits 575.6 590.8 561.2 585.3 565.1 562.4 573.9 576.1 584.8 604.6 587.0 Demand: 31 Interbank 41.1 38.6 30.7 35.6 30.7 30.9 32.7 32.2 37.2 36.4 33.1 32 U.S. Govt 3.2 2.3 2.7 3.7 2.7 2.8 4.3 2.9 2.4 2.5 3.0 33 Other 204.2 210.8 187.0 202.1 188.6 185.9 191.0 194.7 196.0 208.6 193.7 Time: 34 Interbank 10.1 10.0 8.5 8.6 8.1 7.6 7.5 7.1 7.0 7.2 6.8 35 Other 317.1 329.1 332.3 335.4 334.9 335.1 338.4 339.2 342.1 ,349.9 186.9 36 Borrowings 52.9 53.6 59.6 59.3 60.3 65.9 70.6 69.1 76.4 80.4 73.6 37 Total capital accounts2 48.2 52.1 54.5 55.0 55.1 55.4 55.7 56.2 56.6 57.3 57.7 M 38 E M N O: u mber of banks 5,780 5,788 5,777 5,776 5,767 5,771 5,773 5,768 r5,767 r5,759 55,,775599 1 Includes items not shown separately. NOTE.—Figures include all bank-premises subsidiaries and other sig- Effective Mar. 31, 1976, some of the item "reserve for loan losses" nificant majority-owned domestic subsidiaries. and all of the item "unearned income on loans" are no longer reported Commercial banks: All such banks in the United States, including as liabilities. As of that date the "valuation" portion of "reserve for member and nonmember banks, stock savings banks, nondeposit trust loan losses" and the "unearned income on loans" have been netted companies, and U.S. branches of foreign banks, but excluding one naagainst "other assets," and against "total assets" as well. tional bank in Puerto Rico and two in the Virgin Islands. Total liabilities continue to include the deferred income tax portion of Member banks: The following numbers of noninsured trust companies "reserve for loan losses." that are members of the Federal Reserve System are excluded from mem- 2 Effective Mar. 31, 1976, includes "reserves for securities" and the ber banks in Tables 1.24 and 1.25 and are included with noninsured banks contingency portion (which is small) of "reserve for loan losses." in Table 1.25: 1974—June, 2; December, 3; 1975—June and December, 3 Figures partly estimated except on call dates. 4; 1976 (beginning month shown)—July, 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series Millions of dollars except for number of banks 1974 1975 1976 1974 1975 1976 Account Dec. 31 June 30 | Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Total insured National (all insured) 1 Loans and investments, Gross 773344,,551166 736,164 776622,,440000 777733,,669966 428,433 428,167 441,135 444433,,995555 Loans: 2 3 N G e r t o ss 54 ( 1 2 ,1 ) 11 52 ( 6 2 , ) 2 72 53 ( 5 2 , ) 1 70 5 53 2 9 0 , , 0 9 1 7 7 0 32 ( 1 2 , ) 4 66 31 ( 2 2 , ) 2 29 31 ( 5 2 ,7 ) 38 3 3 1 0 5 5, , 2 6 7 2 5 4 Investments: 4 U.S. Treasury securities 54,132 67,833 83,629 87.413 29,075 37,606 46,799 47,409 5 Other 139,272 142,060 143,602 147,266 77,892 78,331 78,598 80,922 6 Cash assets 125,375 125,181 128,256 124,072 76,523 75,686 78,026 75,488 7 Total assets/total liabilities1 906,325 914,781 944,654 942,511 534,207 536,836 553,285 548,698 8 Deposits 741,665 746,348 777755,,220099 777766,,995577 443311,,003399 431,646 444477,,559900 444,251 Demand : 9 U.S. Govt 4,799 3,106 3,108 4,622 2,437 1,723 1,788 2,858 10 Interbank 42,587 41,244 40,259 37,503 23,497 21,096 22,305 20,329 11 Other 226655,,444444 261,903 276,384 265,670 154,397 152,576 159,840 115522,,338822 Time: 12 Interbank 10,693 10,252 10,733 9,407 6,750 6,804 7,302 5,532 13 Other 418,142 429,844 444,725 459,753 243,959 249,446 256,355 263,148 14 Borrowings 55,988 59,310 56,775 63,824 39,603 41,954 40,875 45,184 15 Total capital accounts 63,039 65,986 68,474 68,990 35,815 37,483 38,969 39,504 16 MEMO : Number of banks 14,216 14,320 14,372 14,373 4,706 4,730 4,741 4,747 State member (all insured) Insured nonmember 17 Loans and investments, Gross 114400,,337733 113344,,775599 113377,,662200 113366,,991155 165,709 173,238 183,645 119922,,882255 Loans: 1 1 8 9 G Ne r t o ss 10 (( 8 22 , )) 3 46 10 (( 0 22 , )) 9 68 10 (( 0 22 , )) 8 23 9 99 8 66 , ,, 8 00 8 33 9 66 11 ( 1 2 , ) 3 00 11 ( 3 2 , ) 0 74 11 ( 8 2 , ) 6 09 1 1 2 1 4 9 , , 5 6 0 5 3 8 Investments: 20 U.S. Treasury securities 9,846 12,004 14,720 15,096 15,211 18,223 22,109 24,907 21 Other 22,181 21,787 22,077 22,929 39,199 41,942 42,927 43,414 22 Cash assets 30,473 31,466 30,451 30,422 18,380 18,029 19,778 18,161 23 Total assets/total liabilities 181,683 179,787 180,495 179,644 190,435 198,157 210,874 214,167 24 Deposits 114444,,779999 141,995 114433,,440099 114422,,006611 116655,,882277 117722,,770077 118844,,221100 119900,,664444 Demand: 25 U.S. Govt 746 443 467 869 1,616 940 853 894 26 Interbank 17,565 18,751 16,265 15,834 1,525 1,397 1,689 1,339 27 Other 4499,,880077 48,621 50,984 4499,,665588 61,240 60,706 65,560 6633,,662299 Time: 28 Interbank 3,301 2,771 2,712 3,074 642 676 719 799 29 Other 73,380 71,409 72,981 72,624 100,804 108,989 115,389 123,980 30 Borrowings 13,247 14,380 12,771 15,300 3,138 2,976 3,128 3,339 31 Total capital accounts 12,425 12,773 13,105 12,790 14,799 15,730 16,400 16,696 32 MEMO : Number of banks 1,074 1,064 1,046 1,029 8,436 8,526 8,585 8,597 Noninsured nonmember Total nonmember 33 Loans and investments, Gross 99,,998811 11,725 1133,,667744 1155,,990055 117755,,669900 118844,,996633 119977,,331199 220088,,773300 Loans : 34 Gross 8,461 9,559 11,283 13,209 119,761 122,633 129,892 137,712 35 Net ((22)) (2) (2) 13,092 (2) (2) (2) 132,751 Investments : 36 U.S. Treasury securities 319 358 490 472 15,530 18,581 22,599 25,379 37 Other 1,201 1,808 1,902 2,223 40,400 43,750 44,829 45,637 38 Cash assets 2,667 3,534 5,359 4,362 21,047 21,563 25,137 22,524 39 Total assets/total liabilities 13,616 16,277 20,544 21,271 204,051 214,434 231,418 235,439 40 Deposits 66,,662277 88,,331144 1111,,332233 11,735 172,454 181,021 195,533 202,380 Demand: 41 U.S. Govt 8 11 6 4 1,624 951 859 899 42 Interbank 897 1,338 1,552 1,006 2,422 2,735 3,241 2,346 43 Other 22,,006622 22,,112244 2,308 2,555 63,302 62,830 67,868 66,184 Time: 44 Interbank 803 957 1,291 1,292 1,445 1,633 2,010 2,092 45 Other 2,857 3,883 6,167 6,876 103,661 112,872 121,556 130,857 46 Borrowings 2,382 3,110 3,449 3,372 5,520 6,086 6,577 6,711 47 Total capital accounts 611 570 651 663 15,410 16,300 17,051 17,359 48 MEMO : Number of banks 249 253 261 270 8,685 8,779 8,846 8,867 1 Includes items not shown separately. For Note see Table 1.24. 2 Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • February 1977 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, June 30, 1976 Asset and liability items are shown in millions of dollars Member banks 1 All Insured Asset account commercial commercial Large banks banks banks Total All other New York City of Other City Chicago large 1 Cash bank balances, items in process 128,435 124,072 105,911 26,914 4,699 41,097 33,201 2 Currency and coin 11,984 11,972 8,987 686 184 3,054 5,063 3 Reserves with F.R. Banks 28,212 28,212 28,212 4,956 2,174 11,508 9,575 4 Demand balances with banks in United States 30,921 28,765 17,838 6,562 286 3,351 7,639 5 Other balances with banks in United States.. 6,833 6,041 3,818 93 7 1,478 2,240 6 Balances with banks in foreign countries 4,948 3,623 3,179 327 33 1,767 1,052 7 Cash items in process of collection 45,537 45,459 43,877 14,290 2,016 19,939 7,633 8 Total securities held—Book value 235,836 233,184 165,113 18,349 7,553 53,364 85,847 9 U.S. Treasury 91,420 90,948 66,013 9,209 3,766 22,163 30,875 10 Other U.S. Govt, agencies 34,264 33,729 20,706 996 348 5,880 13,482 11 States and political subdivisions 102,994 102,694 74,465 7,718 3,225 24,322 39,201 12 All other securities 6,995 5,701 3,849 425 214 970 2,239 13 Unclassified total 162 113 80 30 50 14 Trading-account securities 5,795 5,745 5,654 2,612 678 2,103 261 15 U.S. Treasury 3,535 3,535 3,507 1,950 494 970 93 16 Other U.S. Govt, agencies 665 665 659 244 44 342 28 17 States and political subdivisions 1,043 1,043 1,025 316 80 557 73 18 All other trading acct. securities 391 391 383 103 60 204 17 19 Unclassified 162 113 80 30 50 20 Bank investment portfolios 230,041 227,439 159,460 15,737 6,875 51,261 85,586 21 U.S. Treasury 87,886 87,413 62,506 7,260 3,272 21,193 30,782 22 Other U.S. Govt, agencies 33,600 33,064 20,047 752 304 5,538 13,454 23 States and political subdivisions 101,952 101,651 73,440 7,403 3,145 23,764 39,128 24 All other portfolio securities 6,604 5,310 3,466 323 155 766 2,223 25 F.R. stock and corporate stock 1,539 1,495 1,244 248 78 470 448 26 Federal funds sold and securities resale agreement 36,120 34,262 26,819 1,929 1,150 14,110 9,630 27 Commercial banks 30,954 29,471 22,170 1,094 1,016 10,937 9,124 28 Brokers and dealers 2,658 2,459 2,376 180 108 1,703 384 29 Others 2,507 2,333 2,273 655 26 1,470 123 30 Other loans, gross 516,107 504,755 387,695 67,105 20,802 147,088 152,699 31 LESS: Unearned income on loans 12,000 11,941 8,286 471 81 2,824 4,910 Reserves for loan loss 6,163 6,105 4,916 1,112 331 1,830 1,642 33 Other loans, net 497,944 486,709 374,493 65,522 20,390 142,434 146,148 Other loans, gross, by category 34 Real estate loans 141,964 141,737 100,545 8,693 36,933 52,930 35 Construction and land development 16,568 16,562 13,586 3,119 532 6,352 3,584 36 Secured by farmland 6,355 6,344 2,111 2 14 288 2,413 37 Secured by residential 80,203 80,062 57,630 3,976 922 21,168 31,563 38 1- to 4-family residences 75,826 75,692 54,450 3,563 821 20,034 30,032 39 FHA-insured or VA-guaranteed 8,297 8,262 7,150 533 52 3,958 2,607 40 Conventional 67,529 67,429 47,300 3,030 769 16,076 27,425 41 Multifamily residences 4,377 4,371 3,180 413 101 1,134 1,531 42 FHA-insured 412 411 321 121 25 99 11 43 Conventional 3,965 3,960 2,859 293 76 1,035 1,455 44 Secured by other properties 38,839 38,769 26,612 1,596 521 9,125 15,370 45 Loans to financial institutions 41,609 36,645 34,684 12,206 4,548 14,980 2,949 46 To REIT's and mortgage companies 10,556 10,510 10,172 3,753 1,457 4,193 769 47 To domestic commercial banks 5,182 3,201 2,527 806 138 1,215 369 48 To banks in foreign countries 8,625 6,076 5,907 2,297 324 2,873 413 49 To other depositary institutions 1,637 1,572 1,424 185 25 1,064 151 50 To other financial institutions 15,608 15,285 14,652 5,165 2,605 5,635 1,248 51 Loans to security brokers and dealers 7,743 7,521 7,390 4,535 987 1,734 134 52 Other loans to purch./carry securities 4,032 4,018 3,373 428 314 1,720 911 53 Loans to farmers—except real estate 22,174 22,149 12,380 77 135 2,988 9,179 54 Commercial and industrial loans 174,384 169,345 140,087 33,896 10,435 55,517 40,239 55 Loans to individuals 110,393 110,031 77,597 4,680 1,627 27,854 43,435 56 Instalment loans 87,465 87,141 61,238 3,322 916 22,383 34,617 57 Passenger automobiles 36,951 36,685 24,065 510 150 7,291 16,114 58 Residential-repair/modernize 6,107 6,106 4.320 263 37 1,747 2,274 59 Credit cards and related plans 12,196 12,193 10,746 1,127 534 6,112 2,973 60 Charge-account credit cards 9,517 9,516 8,540 817 504 4,987 2,232 61 Check and revolving credit plans 2,680 2,677 2,206 310 30 1,125 741 62 Other retail consumer goods 15,536 15,526 10,730 203 86 3,884 6,557 63 Mobile homes 8,720 8,719 6,238 112 33 2,300 3,792 64 Other 6,815 6,807 4,493 91 52 1,584 2,765 65 Other instalment loans 16,675 16,630 11,376 1,219 109 3,350 6,698 66 Single-payment loans to individuals 22,927 22,891 16,358 1,358 711 5,471 8,818 67 All other loans 13,807 13,309 11,639 2,589 766 5,362 2,922 68 Total loans and securities, net 771,439 755,650 567,670 86,047 29,171 210,378 242,074 69 Direct lease financing 4,675 4,675 4,455 983 128 2,714 630 70 Fixed assets—Buildings, furniture, real estate. . 18,585 18,484 13,902 1,626 611 5,605 6,060 71 Investment in unconsolidated subsidiaries 2,107 2,104 2,063 827 160 1,005 70 72 Customer acceptances outstanding 10,682 10,316 9,990 5,278 517 3,924 271 73 Other assets 27,861 27,210 24,353 9,081 1,627 9,775 3,871 74 Total assets 963,783 942,511 728,344 130,756 36,912 274,499 286,177 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks 1 AAAllllll IIInnnsssuuurrreeeddd LLLiiiaaabbbiiillliiitttyyy ooorrr cccaaapppiiitttaaalll cccooommmmmmeeerrrccciiiaaalll cccooommmmmmeeerrrccciiiaaalll Large banks aaaccccccooouuunnnttt bbbaaannnkkksss bbbaaannnkkksss NNoonn-- TToottaall mmeemmbbeerr New York City of Other AAllll ootthheerr bbaannkkss 11 City Chicago large 75 Demand deposits 311,363 307,796 241,932 54,110 9,807 87,697 90,318 69,431 76 Mutual savings banks 1,299 1,113 1,014 491 2 229 291 286 77 Other individuals, partnerships, and corporations 236,614 235,547 179,037 29,740 7,268 67,579 74,449 57,577 78 U.S. Govt 4,627 4,623 3,728 474 154 1,604 1,496 900 79 States and political subdivisions 17,336 17,216 12,278 620 155 3,732 7,770 5,058 80 Foreign governments, central banks, etc 1,757 1.295 1,250 981 21 230 17 507 81 Commercial banks in United States 30,870 30,573 29,454 13,524 1,781 10,589 3,560 1,416 82 Banks in foreign countries 6,341 5,817 5,697 4,240 148 1,192 117 644 83 Certified and officers' checks, etc 12,520 11,612 9,477 4,038 278 2,542 2,619 3,043 84 Time deposits 293,204 285,431 212,740 3322,,448833 13,165 77,746 89,347 80,464 171 171 136 13 123 35 86 Mutual savings banks 481 458 445 266 7 135 36 36 87 Other individuals, partnerships, and corporations 227,578 222,500 163,935 22,766 9,494 58,633 73,042 63,643 88 U.S. Govt 678 678 550 77 1 251 220 128 89 States and political subdivisions 43,942 43,653 30,739 803 1,106 13,711 15,121 13,203 90 Foreign governments, central banks, etc 10,143 9,029 8,778 5,255 1,295 2,187 41 1,366 91 Commercial banks in United States 8,082 7,522 6,797 2,613 1,162 2,337 685 1,285 92 Banks in foreign countries 2,129 1,419 1,360 702 100 478 80 769 93 Savings deposits 184,126 183,730 131,640 8,752 2,715 48,362 71,811 52,486 94 Individuals and nonprofit organizations 175,381 174,995 125,270 8,332 2,611 45,993 68,334 50,111 95 Corporations and other profit organizations. . . 6,049 6,043 4,521 262 95 1,982 2,182 1,529 96 U.S. Govt 2,648 2,645 1,805 130 9 376 1,290 843 97 All other 47 47 44 28 11 4 4 98 Total deposits 788,693 776,957 586,312 95,345 25,687 213,805 251,476 202,381 99 Federal funds purchased and securities sold under agreements to repurchase 60,719 58,944 55,906 11,224 7,215 29,308 8,158 4,813 100 Commercial banks 35,182 33,936 32,667 6,445 4,883 17,374 3,965 2,514 101 Brokers and dealers 8,053 7,976 7,512 735 1,073 4,903 801 542 102 Others 17,484 17,031 15,727 4,045 11,,225599 7,032 3,392 1,757 103 Other liabilities for borrowed money 6,478 4,881 4,579 2,243 8800 1,806 450 1,899 104 Mortgage indebtedness 789 787 577 53 16 316 192 212 105 Bank acceptances outstanding 11,287 10,917 10,591 5,854 525 3,938 274 696 106 Other liabilities 21,262 16,198 14,148 4,736 892 5,575 2,945 7,114 107 Total liabilities 889,228 868,684 672,114 119,456 34,415 254,749 263,495 217,114 108 Subordinated notes and debentures 4,901 4,837 3,935 1,099 83 1,752 1,001 966 109 Equity capital 69,655 68,991 52,295 10,201 22,,441144 17,998 21,681 17,360 110 Preferred stock 81 75 34 10 24 47 Ill Common stock 15,963 15,843 11,723 2,264 570 3,894 4,995 4,239 112 Surplus 27,903 27,648 20,676 3,966 1,155 7,509 8,047 7,226 113 Undivided profits 23,842 23,630 18,566 3,858 645 6,154 7,909 5,276 114 Other capital reserves 1,867 1,794 1,296 114 44 431 706 571 115 Total liabilities and equity capital 963,783 942,511 728,344 130,756 36,912 274,499 286,177 235,440 MEMO: 116 Demand deposits adjusted 2 230,329 227,142 164,874 25,822 5,857 55,566 77,629 65,455 Average for last 15 or 30 days: 117 Average cash and due from bank 123,703 119,246 102,291 26,314 4,360 39,625 3311,,999922 2211,,441122 118 Average Federal funds sold and securities purchased under agreements to resell 38,280 35,632 27,149 2,253 1,341 13,353 10,202 11,131 119 Average total loans 502,155 490,759 377,741 66,363 20,569 143,388 147,421 124,414 120 Average time deposits of $100,000 or more. .. 146,166 140,300 115,892 29,258 10,747 48,444 27,443 30,275 121 Average total deposits 775,140 763,837 574,789 89,888 2255,,000033 209,900 224499,,999999 220000,,335500 122 Average Federal funds purchased and securities sold under agreements to repurchase. 64,655 62,022 58,970 14,334 7,184 29,212 8,240 5,695 123 Average other liabilities for borrowed money.. 6,485 4,782 4,474 2,064 87 1,957 367 2,011 124 Standby letters of credit outstanding 10,950 10,535 9,927 5,289 954 3,043 641 1,023 125 Time deposits of $100,000 or more 146,783 141,105 117,342 28,910 11,159 49,561 27,712 29,441 126 Certificates of deposit 122,071 118,464 97,455 24,503 8,937 39,866 24,149 24,616 127 Other time deposits 24,712 22,641 19,887 4,407 2,221 9,696 3,563 4,825 128 Number of banks 14,643 14,373 5,776 11 9 155 5,601 8,867 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 Demand deposits adjusted are demand deposits other than domestic as soon as they become available. commercial interbank and U.S. Govt., less cash items reported as in Back data in lesser detail were shown in previous BULLETINS. Details process of collection. may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • February 1977 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1976 1977 AAccccoouunntt Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 1 Total loans and investments 409,928 415,285 414,897 416,399 415,647 413,172 410,576 404,902 Loans: 2 Federal funds sold1 23,262 23,936 24,385 24,509 24,716 24,251 22,655 20,727 3 To commercial banks 1188,,663388 1188,,993388 1199,,992266 2200,,117722 2200,,115599 1188,,555533 1177,,667766 1166,,558855 To brokers and dealers involving— 4 U.S. Treasury securities 2,619 3,065 2,638 2,235 2,505 3,193 3,029 2,184 5 Other securities 791 761 722 811 996 1,317 816 887 6 To others 1,214 1,172 1,099 1,291 1,056 1,188 1,134 1,071 7 Other, gross 286,049 288,752 288,361 289,063 288,576 285,976 286,369 284,048 8 Commercial and industrial 115,581 116,425 116,544 116,480 116,896 115,437 115,136 114,489 9 Agricultural 4,174 4,194 4,211 4,278 4,304 4,300 44,,227722 44,,224433 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 2,047 2,075 1,569 1,535 1,755 1,742 1,982 1,313 11 Other securities 7,484 8,558 8,254 8,209 77,,552288 77,,555577 88,,004422 77,,556677 To others: 12 U.S. Treasury securities 72 74 74 79 83 80 76 74 13 Other securities 2,530 2,505 2,506 22,,550044 22,,553333 22,,553311 22,,552266 22,,553344 To nonbank financial institutions: 14 Personal and sales finance cos., etc 6,849 7,258 7,233 7,503 7,394 7,011 6,936 6,871 15 Other 16,903 17,058 16,850 17,037 16,586 16,296 16,154 16,221 16 Real estate 63,189 6633,,440055 63,401 6633,,440099 6633,,669900 6633,,775533 6633,,990088 6633,,888866 To commercial banks: 17 Domestic 1,921 1,789 1,920 1,905 1,813 1,733 1,781 1,865 18 Foreign 6,216 5,982 5,980 6,133 6,042 5,869 5,944 5,834 19 Consumer instalment 38,613 38,840 39,079 39,397 39,633 39,583 39,480 39,509 20 Foreign governments, official institutions, etc.. 1,907 1,876 1,863 1,803 1,939 1,991 1,872 1,937 21 All other loans 1188,,556633 18,713 18,877 18,791 1188,,338800 1188,,009933 1188,,226600 1177,,770055 22 LESS : Loan loss reserve and unearned income on loans 8,734 8,740 8,726 8,625 8,536 8,531 8,551 8,552 23 Other loans, net 277,315 280,012 279,635 280,438 280,040 277,445 277,818 275,496 Investments: 24 U.S. Treasury securities 48,203 49,777 49,432 50,076 50,038 50,333 49,622 48,268 25 Bills 1111,,446611 1122,,883355 1122,,442288 13,251 1133,,772211 1133,,448877 1122,,885511 1111,,882211 Notes and bonds, by maturity: 26 Within 1 year 6,741 6,713 6,685 6,796 7,223 7,205 7,255 7,275 27 1 to 5 years 25,715 26,082 26,106 25,841 24,962 25,307 25,253 24,937 28 After 5 years 4,286 4,147 4,213 4,188 4,132 4,334 4,263 4,235 29 Other securities 6611,,114488 6611,,556600 6611,,444455 6611,,337766 6600,,885533 6611,,114433 6600,,448811 6600,,441111 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 6,713 6,893 6,656 6,530 6,269 6,602 6,324 6,354 31 All other 40,358 4400,,661133 40,384 40,476 4400,,335555 4400,,446655 4400,,332244 4400,,225566 Other bonds, corporate stocks, and securities: 2,251 2,239 2,153 2,217 32 Certificates of participation2 2,301 2,266 2,320 2,354 1111,,997788 1111,,883377 1111,,668800 1111,,558844 33 All other, including corporate stocks 11,776 11,788 12,085 12,016 34 Cash items in process of collection 35,890 45,042 42,354 39,752 39,933 36,679 36,792 34,904 35 Reserves with F.R. Banks 21,516 24,198 22,396 23,349 24,329 21,367 20,984 21,875 36 Currency and coin 5,550 5,827 5,793 6,436 5,756 5,908 5,779 5,768 37 Balances with domestic banks 13,261 13,306 14,120 13,785 13,929 13,303 12,392 12,083 38 Investments in subsidiaries not consolidated 2,287 2,287 2,390 2,345 2,402 2,441 2,471 2,470 39 Other assets 47,795 49,824 49,022 50,347 50,839 52,548 50,716 50,891 40 Total assets/total liabilities 536,227 555,769 550,972 552,413 552,835 545,418 539,710 532,893 Deposits: 41 demand deposits 170,509 190,763 182,432 181,528 184,662 178,242 174,253 168,152 42 Individuals, partnerships, and corporations.. 123,875 135,580 131,503 130,575 131,982 128,675 125,906 121,055 43 States and political subdivisions 5,550 6,243 6,594 6,041 6,397 5,970 6,391 6,056 44 U.S. Govt 1,064 5,623 2,085 1,620 2,721 11,,993300 33,,007777 22,,112233 Domestic interbank: 45 Commercial 24,761 26,360 26,686 27,383 28,093 27,328 23,520 24,435 46 877 871 744 744 11,,004400 942 889 839 Foreign: 47 Governments, official institutions, etc 11,,113344 1,357 1,228 1,428 1,463 1,344 1,276 1,218 48 Commercial banks 5,845 5,545 5,921 5,934 5,831 5,619 5,800 5,753 49 Certified and officers' checks 7,403 9,184 7,671 7,803 7,135 6,434 7,394 6,673 50 Time and savings deposits 226,790 227,221 229,223 231,416 231,951 230,310 223300,,550055 223300,,445522 Individuals, partnerships, and corporations: 51 Savings SI,169 88,381 88,702 89,473 91,008 91,038 91,301 91,376 52 Other 106,316 105,499 106,427 107,545 106,798 105,675 105,716 105,350 53 States and political subdivisions 18,336 18,827 19,214 19,311 19,252 19,336 19,435 19,550 54 Domestic interbank 5., 567 5,521 5,626 5,702 5,520 5,306 5,265 5,401 55 Foreign governments, official institutions, etc. 7,508 7,710 7,956 8,024 8,019 7,626 7,436 7,479 56 Federal funds purchased, etc.4 71,709 68,719 72,342 71,422 69,736 69,469 66,037 65,530 Borrowings from: 57 F.R. Banks 1 298 50 340 0 11 621 449 58 Others 4,392 4,161 3,929 4,157 3,645 3,384 3,578 3,708 59 Other liabilities, etc.5 21,809 23,671 21,962 22,470 2211,,339911 2222,,442200 2233,,116666 2222,,993344 60 Total equity capital and subordinated notes/debentures6 4411,,001177 40,936 41,034 41,080 41,450 41,582 41,550 41,668 1 Includes securities purchased under agreements to resell. 5 includes minority interest in consolidated subsidiaries and deferred 2 Federal agencies only. tax portion of reserves for loans. 3 Includes U.S. Govt, and foreign bank deposits not shown separately. 6 includes reserves for securities and contingency portion of reserves 4 Includes securities sold under agreements to repurchase. for loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account Dec. i Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 1 Total loans and investments 91,612 93,895 92,743 93,144 91,843 90,131 91,350 Loans: 2 Federal funds sold 1 2,402 2,452 2,839 3,015 2,238 1,765 2,406 3 To commercial banks 1,384 1,527 1,820 2,269 1,611 737 1,305 To brokers and dealers involving— 4 U.S. Treasury securities 597 467 646 278 285 538 461 5 Other securities 102 37 20 21 56 288 274 6 To others 319 421 353 447 286 202 366 7 Other, gross 70,586 71,960 70,873 70,911 70,541 68,770 69,092 8 Commercial and industrial 34,705 35,187 34,951 35,039 35,622 34,341 33,977 9 Agricultural 101 102 110 118 124 123 121 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 1,850 1,854 1,344 1.322 1,590 1,815 11 Other securities 4,185 5,016 4,829 4,610 4,064 4,747 To others: 12 U.S. Treasury securities 14 14 16 16 18 14 12 13 Other securities 371 360 361 357 382 392 388 To nonbank financial institutions: 14 Personal and sales finance cos., etc 2,255 2,548 2,443 2,661 2,554 2,264 2,264 15 Other 6,035 6,036 5,991 6,001 5,511 5,410 5,389 16 Real estate 8,900 8,911 8,973 8,991 8,965 8,955 To commercial banks: 17 Domestic 713 566 624 587 608 537 609 18 Foreign 2,928 2,853 2,806 2,849 2,794 2,693 2,678 19 Consumer instalment 4,002 3,993 3,979 3,990 4,075 4,069 4,055 20 Foreign governments, official institutions, etc. 554 496 480 434 522 528 425 21 All other loans 3,973 4,024 3,966 3,939 3,686 3,666 3,657 22 LESS: Loan loss reserve and unearned income on loans 1,735 1,732 1,725 1,694 1,645 1,639 1,641 23 Other loans, net 68,851 70,228 69,148 69,217 68,896 67,131 67,451 Investments: 24 U.S. Treasury securities 11,136 11,672 11,231 11,485 11,462 11,990 12,304 25 Bills 2,884 3,352 2,663 2,878 3,085 3,398 3,855 Notes and bonds, by maturity: 26 Within 1 year 791 691 651 678 688 723 728 27 1 to 5 years 6,439 6,665 6,840 6,753 6,529 6,696 6,634 28 After 5 years 1,022 964 1,077 1,176 1,160 1,173 1,087 29 Other securities 9,223 9,543 9,525 9,427 9,247 9,245 9,189 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills. 1,414 1,518 1,505 1,381 1,223 1,205 1,177 31 Allother 6,086 6,327 6,187 6,258 6,095 6,238 6,212 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 237 231 230 231 223 223 222 33 All other, including corporate stocks 1,486 1,467 1,603 1,557 1,706 1,579 ,578 34 Cash items in process of collection 13,206 17.287 14,541 15,267 12,836 12,865 13,450 35 Reserves with F.R. Banks 6,475 7,346 5,669 6,823 8,229 7,844 5,782 36 Currency and coin 773 806 779 851 809 831 803 37 Balances with domestic banks . 6,058 5,983 6,640 6,655 5,995 5,862 5,534 38 Investments in subsidiaries not consolidated.... 1,054 1,056 1,056 1,068 1,107 1,138 1,152 39 Other assets 15,567 16,632 16,356 17,144 17,011 19,066 18,000 40 Total assets/total liabilities 134,745 143,005 137,784 140,952 137,830 137,737 136,071 Deposits: 41 Demand deposits 49,220 57,942 53,236 54,611 52,594 51,504 50,540 42 Individuals, partnerships, and corporations. 27,001 32,166 29,894 29,737 29,479 28,279 28,418 43 States and political subdivisions 481 527 643 492 578 511 585 44 U.S. Govt 96 1,549 229 119 511 285 507 Domestic interbank: 45 Commercial 11,977 12,753 12,882 14,318 12,971 13,696 11,167 46 Mutual savings 492 478 382 398 586 538 475 Foreign: 47 Governments, official institutions, etc 833 1,042 907 1,133 1,098 1,084 988 48 Commercial banks 4,463 4,119 4,486 4,346 4,380 4,274 4,519 49 Certified and officers' checks 3,877 5,308 3,813 4,068 2,991 2,837 3,881 50 Time and savings deposits3 41,767 41,350 41,712 42,315 42,401 41,912 42,275 Individuals, partnerships, and corporations: 51 Savings 9,637 9,678 9,722 9,824 10,149 10,241 10,299 52 Other 23,645 23,258 23,609 24,033 23,926 23,688 23,954 53 States and political subdivisions 1,159 1,155 1,115 1,124 1,080 1,047 1,064 54 Domestic interbank 2,379 2,277 2,216 2,267 2,192 2,095 2,132 55 Foreign governments, official institutions, etc 4,203 4,237 4,324 4,331 4,328 4,109 4,082 56 Federal funds purchased, etc.4 21,053 19,068 20,401 20,566 20,609 21,073 18,933 57 Bo F rr .R ow . i B n a g n s k f s r om: 0 110 0 45 0 0 200 58 Others 2,235 2,103 1,918 2,064 1,772 1,519 1,632 59 Other liabilities, etc. 5 8,754 10,712 8,812 9,673 8,612 9,875 10,636 60 Total equity capital and subordinated notes/debentures^ 11,716 11,720 11,705 11,678 11,842 11,854 11,855 1 Includes securities purchased under agreements to resell. 5 Includes minority interest in consolidated subsidiaries and deferred 2 Federal agencies only. tax portion of reserves for loans. 3 Includes U.S. Govt, and foreign bank deposits not shown sepa- 6 Includes reserves for securities and contingency portion of reserves rately. for loans. 4 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • February 1977 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1976 1977 AAccccoouunntt Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 1 Total loans and investments 318,316 321,390 322,154 323,255 323,804 323,041 319,226 315,386 Loans: 2 Federal funds sold,1 20,860 21,484 21,546 21,494 22,478 22,486 20,249 17,345 3 To commercial banks 1177,,225544 1177,,441111 1188,,110066 1177,,990033 18,548 1177,,881166 1166,,337711 1144,,332255 To brokers and dealers involving— 4 U.S. Treasury securities 2,022 2,598 1,992 1,957 2,220 2,655 2,568 1,839 5 Other securities 689 724 702 790 940 1,029 542 483 6 To others 895 751 746 844 770 986 768 698 7 Other, gross 215,463 216,792 217,488 218,152 218,035 217,206 217,277 216,559 8 Commercial and industrial 80,876 81,238 81,593 81,441 81,274 81,096 81,159 80,802 9 Agricultural 4,073 44,,009922 44,,110011 44,,116600 44,,118800 A,\ll 44,,115511 44,,112222 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 197 221 225 213 165 159 167 171 11 Other securities 33,,229999 33,,554422 33,,442255 33,,559999 33,,446644 33,,337722 33,,229955 33,,224444 To others: 12 U.S. Treasury securities 58 60 58 63 65 66 64 62 13 Other securities 2,159 22,,114455 22,,114455 22,,114477 22,,115511 2,139 22,,113388 22,,114466 To nonbank financial institutions: 14 Personal and sales finance cos., etc 4,594 4,710 4,790 4,842 4,840 4,747 4,672 4,600 15 Other 10,868 11,022 10,859 11,036 11,075 10,886 10,765 10,702 16 Real estate 5544,,228899 5544,,449944 5544,,442288 5544,,442211 5544,,669999 5544,,778888 5544,,995533 5544,,993311 To commercial banks: 17 Domestic 1,208 1,223 1,296 1,318 1,205 1,196 1,172 1,221 18 Foreign 3,288 3,129 3,174 3,284 3,248 3,176 3,266 3,285 19 Consumer instalment 34,611 34,847 35,100 35,407 35,558 35,514 35,425 35,462 20 Foreign governments, official institutions, etc. 1,353 1,380 1,383 1,369 1,417 1,463 1,447 1,465 21 All other loans 1144,,559900 1144,,668899 1144,,991111 1144,,885522 14,694 14,427 1144,,660033 1144,,334466 22 LESS : Loan reserve and unearned income on loans 6,999 7,008 7,001 6,931 6,891 6,892 6,910 6,920 23 Other loans, net 208,464 209,784 210,487 211,221 211,144 210,314 210,367 209,639 Investments: 24 U.S. Treasury securities 37,067 38,105 38,201 38,591 38,576 38,343 37,318 36,990 25 Bills 8,577 99,,448833 9,765 10,373 1100,,663366 1100,,008899 88,,999966 88,,664455 Notes and bonds, by maturity: 26 Within 1 year 5,950 6,022 6,034 6,118 6,535 6,482 6,527 6,553 27 1 to 5 years 19,276 19,417 19,266 19,088 18,433 18,611 18,619 18,523 28 After 5 years 3,264 3,183 3,136 3,012 2,972 3,161 3,176 3,269 29 Other securities 5511,,992255 5522,,001177 5511,,992200 51,949 5511,,660066 51,898 5511,,229922 51,412 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 5,299 5,375 5,151 5,149 5,046 5,397 5,147 5,176 31 All other 3344,,227722 3344,,228866 34,197 34,218 3344,,226600 3344,,222277 3344,,111122 34,144 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,064 2,035 2,090 2,123 2,028 2,016 1,931 1,995 33 All other, including corporate stocks 10,290 10,321 10,482 10,459 10,272 10,258 10,102 10,097 34 Cash items in process of collection 22,684 21,155 27,813 24,485 27,097 23,814 23,342 22,315 35 Reserves with F. R. Banks 15,041 16,852 16,727 16,526 16,100 13,523 15,202 15,778 36 Currency and coin A,111 5,021 5,014 5,585 4,947 5,077 4,976 4,952 37 Balances with domestic banks 7,203 7,323 7,480 7,130 7,934 7,441 6,858 6,290 38 Investments in subsidiaries not consolidated 1,233 1,231 1,334 1,277 1,295 1,303 1,319 1,322 39 Other assets 32,228 33,192 32,666 33,203 33,828 33,482 32,716 32,747 40 Total assets/total liabilities 401,482 412,764 413,188 411,461 415,005 407,681 403,639 398,790 Deposits: 41 Demand deposits 121,289 132,821 129,196 126,917 132,068 126,738 123,713 118,877 42 Individuals, partnerships, and corporations.. 96,874 103,414 101,609 100,838 102,503 100,396 97,488 94,629 43 States and political subdivisions 5,069 5,716 5,951 5,549 5,819 5,459 5,806 5,458 44 U.S. Govt 968 4,074 1,856 1,501 2,210 1,645 2,570 1,766 Domestic interbank: 45 Commercial 12,784 13,607 13,804 13,065 15,122 13,632 12,353 11,883 46 Mutual savings 385 393 362 346 454 404 414 364 Foreign: 47 Governments, official institutions, etc 301 315 321 295 365 260 288 232 48 Commercial banks 1,382 1,426 1,435 1,588 1,451 1,345 1,281 1,310 49 Certified and officers' checks 3,526 3,876 3,858 3,735 4,144 3,597 3,513 3,235 50 Time and savings deposits3 185,023 185,871 187,511 189,101 189,550 188,398 188,230 188,062 Individuals, partnerships, and corporations: 51 Savings 78,132 78,703 78,980 7799,,664499 80,859 80,797 81,002 81,027 52 Other 82,671 82,241 82,818 83,512 82,872 81,987 81,762 81,548 53 States and political subdivisions 17,177 17,672 18,099 18,187 18,172 18,289 18,371 18,443 54 Domestic interbank 3,188 3,244 3,410 3,435 3,328 3,211 3,133 3,167 55 Foreign governments, official institutions, etc. 3,305 3,473 3,632 3,693 3,691 3,517 3,354 3,317 56 Federal funds purchased, etc.4 50,656 49,651 51,941 50,856 49,127 48,396 47,104 47,156 Borrowings from: 57 F. R. Banks 1 188 50 295 0 11 421 449 58 Others 2,157 2,058 2,011 2,093 1,873 1,865 1,946 1,895 59 Other liabilities, etc. 5 13,055 12,959 13,150 12,797 12,779 12,545 1122,,553300 1122,,555500 60 Total equity capital and subordinated notes/debentures6 29,301 29,216 29,329 29,402 29,608 29,728 29,695 29,801 1 Includes securities purchased under agreements to resell. 5 Includes minority interest in consolidated subsidiaries and deferred 2 Federal agencies only. tax portion of reserves for loans. 3 Includes U.S. Govt, and foreign bank deposits not shown sepa- 6 Includes reserves for securities and contingency portion of reserves rately. for loans. 4 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1976 1977 Account and bank group Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Total loans (gross) and investments, adjusted1 1 Large banks 398,103 403,298 401,777 402,947 402,211 401,417 399,670 395,004 2 New York City banks 91,250 93,534 92,024 91,982 91,269 90,496 91,077 88,244 3 Banks outside New York City 306,853 309,764 309,753 310,965 310,942 310,921 308,593 306,760 Total loans (gross), adjusted 4 Large banks 288,752 291,961 290,900 291,495 291,320 289,941 289,567 286,325 5 New York City banks 70,891 72,319 71,268 71,070 70,560 69,261 69,584 67,967 6 Banks outside New York City 217,861 219,642 219,632 220,425 220,760 220,680 219,983 218,358 Demand deposits, adjusted2 7 Large banks 108,794 113,738 111,307 112,773 113,915 112,305 110,864 106,690 8 New York City banks 23,941 26,353 25,584 24,907 26,276 24,658 25,416 21,m 9 Banks outside New York City 84,853 87,385 85,723 87,866 87,639 87,647 85,448 82,913 Large negotiable time CD's included in time and savings deposits3 Total: 10 Large banks 64,151 63,474 64,698 65,928 64,593 62,803 62,500 62,093 11 New York City 22,275 21,798 22,218 22,714 22,264 21,770 22,016 22,052 12 Banks outside New York City 41,876 41,676 42,480 43,214 42,329 41,033 40,484 40,041 Issued to IPC's: 13 Large banks 42,966 42,201 42,991 44,008 42,899 41,656 41,538 40,996 14 New York City Banks 15,190 14,751 15,176 15,594 15,297 15,120 15,331 15,144 15 Banks outside New York City 27,776 27,450 27,815 28,414 27,602 26,536 26,207 25,852 Issued to others: 16 Large banks 21,185 21,273 21,707 21,920 21,694 21,147 20,962 21,097 17 New York City banks 7,085 7,047 7,042 7,120 6,967 6,650 6,685 6,908 18 Banks outside New York City 14,100 14,226 14,665 14,800 14,727 14,497 14,277 14,189 AH other large time deposits4 Total: 19 Large banks 25,571 25,987 26,178 26,226 26,108 25,955 25,922 25,936 20 New York City banks 5,575 5,457 5,321 5,244 5,295 5,205 5,197 5,176 21 Banks outside New York City 19,996 20,530 20,857 20,982 20,813 20,750 20,725 20,760 Issued to IPC's: 22 Large banks 14,852 14,723 14,570 14,503 14,443 14,253 14,151 14,148 23 New York City banks 4,211 4,120 4,011 3,939 3,991 3,924 3,915 3,910 24 Banks outside New York City 10,641 10,603 10,559 10,564 10,452 10,329 10,236 10,238 Issued to others: 25 Large banks 10,719 11,264 11,608 11,723 11,665 11,702 11,771 11,788 26 New York City banks 1,364 1,337 1,310 1,305 1,304 1,281 1,282 1,266 27 Banks outside New York City 9,355 9,927 10,298 10,418 10,361 10,421 10,489 10,522 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks 80,877 81,178 81,430 82,035 83,312 83,753 83,992 84,056 29 New York City banks 8,860 8,920 8,961 9,030 9,293 9,381 9,402 9,433 30 Banks outside New York City 72,017 72,258 72,469 73,005 74,019 74,372 74,590 74,623 Partnerships and corporations for profit:5 31 Large banks 4,386 4,378 4,378 4,415 4,444 4,515 4,556 4,669 32 New York City banks 419 429 434 445 455 470 476 486 33 Banks outside New York City 3,967 3,949 3,944 3,970 3,989 4,045 4,080 4,183 Domestic governmental units: 34 Large banks 2,415 2,747 2,818 2,949 3,150 2,689 2,656 2,547 35 New York City banks 282 267 266 292 317 332 349 351 36 Banks outside New York City 2,133 2,480 2,552 2,657 2,833 2,357 2,307 2,196 All other:6 37 Large banks 91 78 76 74 102 81 97 104 38 New York City banks 76 62 61 57 84 58 72 79 39 Banks outside New York City 15 16 15 17 18 23 25 25 Gross liabilities of banks to their foreign branches 40 Large banks 4,849 6,452 5,181 6,181 4,503 4,595 4,513 3,944 41 New York City banks 4,033 5,521 4,214 4,576 0 3,570 3,577 2,906 42 Banks outside New York City 816 931 967 1,605 4,503 1,025 936 1,038 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial 2,633 2,628 2,622 2,645 2,794 2,809 2,855 2,906 44 Real estate 215 215 216 217 216 216 216 215 45 All other 1,166 1,160 1,179 1,212 1,184 1,186 1,173 1,167 1 Exclusive of loans and Federal funds transactions with domestic 5 Other than commercial banks. commercial banks. 6 Domestic and foreign commercial banks, and official international 2 All demand deposits except U.S. Govt, and domestic commercial organizations. banks, less cash items in process of collection. 7 To bank's own foreign branches, nonconsolidated nonbank af- 3 Certificates of deposit (CD's) issued in denominations of $100,000 or filiates of the bank, the bank's holding company (if not a bank), and more. nonconsolidated nonbank subsidiaries of the holding company. 4 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD's). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • February 1977 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry group 1976 1977 1976 1977 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Q3 Q4r Nov. Dec. Jan. Total loans classified2 1 Total 96,706 97,044 95,512 95,155 94,655 -641 4,048 1,352 1,543 -2,051 Durable goods manufacturing: 2 Primary metals 2,200 2,343 2,338 2,368 2,391 -36 138 83 104 119911 3 Machinery 4,658 4,604 4,601 4,608 4,588 -417 41 28 38 -70 4 Transportation equipment 2,230 2,206 2,190 2,216 2,208 -252 -196 -120 55 -22 5 Other fabricated metal products... 1,710 1,686 1,696 1,686 1,697 -56 24 46 2 -13 6 Other durable goods 3,254 3,167 3,127 3,101 3,116 -109 -249 -47 -114 -138 Nondurable goods manufacturing: 7 Food, liquor, and tobacco 3,500 3,437 3,374 3,368 3,400 3 134 2244 9922 --110000 8 Textiles, apparel, and leather 2,996 3,129 3,140 3,093 3,121 178 -503 -141 -258 125 9 Petroleum refining 2,641 2,719 2,739 2,698 2,645 217 121 -53 134 4 10 Chemicals and rubber 2,558 2,552 2,556 2,555 2,549 41 33 -89 20 -9 11 Other nondurable goods 1,897 1,889 1,903 1,917 1,908 -34 16 86 -36 11 12 Mining, including crude petroleum and natural gas 7,314 7,388 7,386 7,480 7,444 229 354 51 74 113300 Trade: 13 Commodity dealers 1,933 2,018 2,057 1,953 1,925 -212 377 115 -5 -8 14 Other wholesale 6,260 6,273 6,256 6,271 6,211 189 227 85 49 -49 15 Retail 6,098 6,124 5,855 5,950 6,120 19 -242 183 -593 22 16 Transportation 5,305 5,050 5,047 5,051 5,043 -496 121 -4 183 -262 17 Communication 1,358 1,506 1,437 1,425 1,409 -263 -131 -20 -36 51 18 Other public utilities 5,601 5,678 5,596 5,682 5,595 -526 -98 -43 63 -6 19 Construction 3,908 3,963 3,916 3,909 3,874 -51 -283 -130 -141 -34 20 Services 10,555 10,961 10,895 10,832 10,789 -174 150 2 118 234 21 All other domestic loans 7,927 7,644 7,709 7,547 7,533 385 567 277 110 -394 22 Bankers acceptances 6,873 6,702 5,727 5,423 5,101 629 3,286 1,105 1,372 -1,772 23 Foreign commercial and industrial loans 5,930 6,005 5,967 6,022 5,988 95 161 -86 312 58 MEMO: 24 Commercial paper included in total classified loans1 444411 336611 --114422 111155 2222 110099 --8800 25 Total commercial and industrial loans of all large weekly reporting banks 116,480 116,896 115,437 115,136 114,489 -391 4,098 1,500 1,475 -1,991 1976 1977 1976 1977 Sept. 29 Oct. 27 Nov. 24 Dec.r 29 Jan. 26 Q3 Q4' Nov. Dec. r Jan. "Term" loans classified3 26 Total 44,772 44,462 44,823 45,211 45,291 -545 439 361 388 80 Durable goods manufacturing: 27 Primary metals 1,214 1,191 1,253 1,317 1,449 -27 103 62 64 113322 28 Machinery 2,675 2,592 2,637 2,585 2,587 -354 -90 45 -52 2 29 Transportation equipment 1,381 1,315 1,303 1,352 1,365 -124 -29 -12 49 13 30 Other fabricated metal products... 756 747 777 776 767 -43 20 30 -1 -9 31 Other durable goods 1,736 1,668 1,655 1,624 1,549 -79 -112 -13 -31 -75 Nondurable goods manufacturing: 32 Food, liquor, and tobacco 1,435 1,425 1,392 1,398 1,449 32 -37 -33 6 51 33 Textiles, apparel, and leather 1,144 1,125 1,118 1,098 1,033 28 -46 -7 -20 -65 34 Petroleum refining 1,908 1,931 1,864 1,971 1,925 201 63 -67 107 -46 35 Chemicals and rubber 1,464 1,486 1,449 1,444 1,456 -2 -20 -37 -5 12 36 Other nondurable goods 935 930 950 955 975 -51 20 20 5 20 37 Mining, including crude petroleum and natural gas 55,,334422 55,,551144 55,,551177 55,,668833 5,793 122 341 3 166 110 Trade: 38 Commodity dealers 209 220 218 200 227 2 -9 -2 -18 27 39 Other wholesale 1,394 1,400 1,474 1,463 1,483 86 69 74 — 11 20 40 Retail 2,134 2,173 2,249 2,045 2,085 102 -89 76 -204 40 41 Transportation 3,934 3,883 3,809 3,938 3,720 -303 4 -74 129 -218 42 Communication 903 910 913 847 810 -87 -56 3 -66 -37 43 Other public utilities 3,604 3,523 3,549 3,664 3,762 -304 60 26 115 98 44 Construction 1,696 1,708 1,669 1,629 1,638 -48 -67 -39 -40 9 45 Services 4,967 4,886 5,151 4,998 5,212 -130 31 265 -153 214 46 All other domestic loans 22,,441199 22,,444477 22,,556677 22,,660000 22,,338833 69 181 120 33 -217 47 Foreign commercial and industrial loans 3,522 3,388 3,309 3,624 3,623 365 102 -79 315 -1 1 Reported for the last Wednesday of each month. all outstanding loans granted under a formal agreement—revolving credit 2 Includes "term" loans, shown below. or standby—on which the original maturity of the commitment was in 3 Outstanding loans with an original maturity of more than 1 year and excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deposits and Commercial Paper A25 1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations Billions of dollars; estimated daily-average balances All commercial banks TTyyppee ooff hhoollddeerr 1975 1976 11997722 11997733 11997744 DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept.r Dec.? 1 All holders, IPC 208.0 220.1 225.0 222.2 227.0 236.9 227.9 234.2 236.1 250.0 2 Financial business 18.9 19.1 19.0 19.4 19.0 20.1 19.9 20.3 19.7 22.2 3 Nonfinancial business 109.9 116.2 118.8 115.1 118.7 125.1 116.9 121.2 122.6 130.2 4 Consumer 65.4 70.1 73.3 74.8 76.5 78.0 77.2 78.8 80.0 82.5 5 Foreign 1.5 2.4 2.3 2.3 2.2 2.4 2.4 2.5 2.3 2.7 6 Other 12.3 12.4 11.7 10.6 10.6 11.3 11.4 11.4 11.5 12.4 All weekly reporting banks 1976 1973 1974 1975 Dec. Dec. Dec. June July Aug. Sept.r Oct. Nov.r Dec.f 7 All holders, IPC 118.1 119.7 124.4 122.6 122.5 112.9 121.4 123.8 124.3 128.5 8 Financial business 14.9 14.8 15.6 16.1 16.3 15.0 15.4 16.8 16.2 17.5 9 Nonfinancial business 66.2 66.9 69.9 67.3 64.8 61.4 66.6 68.4 68.7 69.7 10 Consumer 28.0 29.0 29.9 31.2 33.3 29.2 30.7 29.6 30.4 31.7 2.2 2.2 2.3 2.0 2.3 1.8 2.2 2.4 2.5 2.6 12 Other 6.8 6.8 6.6 6.1 5.8 5.6 6.6 6.6 6.6 7.1 NOTE.—Figures include cash items in process of collection. Estimates of banks. Types of depositors in each category are described in the June 1971 gross deposits are based on reports supplied by a sample of commercial BULLETIN, p. 466. 1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1976 Instrument 1974 1975 1976 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. 1 Commercial paper, all issuers 49,144 47,690 52,011 50,011 51,138 59,063 49,814 51,334 53,080 52,011 Financial companies:1 Dealer-placed paper:2 2 Total 4,611 6,239 7,294 6,075 6,187 6,243 6,347 6,674 7,113 7,29 4 3 Bank-related 1,814 1,762 1,930 1,710 1,655 1,650 11,,668811 1,739 1,860 1,930 Directly-placed paper:3 4 Total 31,839 31,276 32,386 3311,,119988 32,513 31,500 31,438 31,844 32,655 3322,,338866 5 Bank-related 6,518 6,892 5,928 6,297 5,936 5,938 6,213 5,828 5,775 5,928 6 Nonfinancial companies4 12,694 10,175 12,331 12,738 12,438 12,320 12,029 12,816 13,312 12,331 7 Dollar acceptances, total 18,484 18,727 22,523 19,783 19,544 19,383 19,599 20,312 20,678 22,523 Held by: 8 Accepting banks 4,226 7,333 10,442 6,171 >•5,905 6,107 6,798 7,959 9,031 10,442 9 Own bills 3,685 5,899 8,769 5,378 5,255 5,449 5,865 6,789 7,706 8,769 10 Bills bought.. 542 11,,443355 11,,667733 793 '650 658 933 1,170 1,325 1,673 F.R. Banks: 11 Own account 999 1,126 991 1,027 656 808 838 337 188 991 12 Foreign correspondents 1,109 293 375 427 447 442 417 387 349 375 13 Others 12,150 9,975 13,447 12,157 12,968 12,026 12,299 11,629 12,184 13,447 Based on: 14 Imports into United States 4,023 3,726 4,992 4,384 4,611 4,530 4,498 4,737 4,667 4,992 15 4,067 4,001 4,818 4,308 4,327 4,355 4,420 4,715 4,628 4,818 16 All other 10,394 11,000 12,713 11,091 10,606 10,498 10,680 10,860 11,383 12,713 1 Institutions engaged primarily in activities such as, but not limited to, 3 As reported by financial companies that place their paper directly commercial, savings, and mortgage banking; sales, personal, and mortgage with investors. financing; factoring, finance leasing, and other business lending; insurance 4 Includes public utilities and firms engaged primarily in activities such underwriting; and other investment activities. as communications, construction, manufacturing, mining, wholesale and 2 Includes all financial company paper sold by dealers in the open retail trade, transportation, and services. market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • February 1977 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Effective date Effective date Rate Month 1975—Jan. 9.. 10V 4 1975—Aug. 12 m 1975—Aug. 15. . 10 Sept. 20. . 9V4 Sept. 15 8 Oct.. 28. . 9 V4 Nov. Oct. 27 7% Dec. Feb. 1 1 3 0 8 . . . . . . 9 9 8 V % 4 Nov. 5 71/2 1976— F Ja eb n . . . 24. . 8 % Dec. 2 71/4 Mar. 7 Apr. Mar. 5.. 8% 1976—Jan. 12 May 10. . 8 21 6% June 18. . July. 24. . m June 1 7 Aug. 7 Sept. May 20. . 71/4 7% Oct. Aug. 2 Nov. June 9. . 7 Dec. Oct. 4 July 18.. 71/4 6% 1977—Jan.. 28. . m Nov. 1 61/2 Dec. 13 6V4 1.35 INTEREST RATES CHARGED BY BANKS on Business Loans Per cent per annum Size of loan (in thousands of dollars) All sizes Center 1--9 10-99 100-499 500-999 1,000 and over 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Short-term rates 1 All 35 centers 7.28 7.80 8.83 9.06 8.18 8.58 7.66 7.99 7.31 7.84 7.02 7.61 2 New York City 6.88 7.48 8.56 8.85 7.94 8.40 7.43 7.91 7.24 7.77 6.74 7.36 3 7 Other Northeast 7.62 8.18 9.22 9.41 8.34 8.84 7.88 8.25 7.49 8.16 7.34 7.98 4 8 North Central 7.28 7.70 8.45 8.65 8.12 8.50 7.69 7.85 7.36 7.71 7.03 7.55 5 7 Southeast 7.51 7.95 9.13 9.33 8.48 8.76 7.71 8.00 7.04 7.85 7.07 7.54 6 8 Southwest 7.33 7.75 8.51 8.83 7.82 8.24 7.39 7.80 7.21 7.61 7.12 7.55 7 4 West Coast 7.52 8.15 8.69 9.26 8.46 8.79 7.88 8.28 7.44 8.06 7.34 8.05 Revolving credit rates 8 All 35 centers 7.19 7.87 8.37 8.70 8.14 8.33 7.60 8.02 7.41 7.80 7.12 7.88 9 New York City 7.18 8.14 7.23 7.25 7.86 8.26 7.21 7.70 6.97 7.56 7.19 8.19 10 7 Other Northeast 6.92 7.59 8.15 8.00 8.20 8.22 7.26 7.67 7.75 8.36 6.75 7.47 11 8 North Central 7.54 7.96 8.52 8.94 8.95 9.03 8.05 8.50 7.88 7.74 7.39 7.90 12 7 Southeast 7.05 7.48 8.31 8.75 8.09 8.40 7.56 8.16 6.77 6.83 7.13 13 8 Southwest 7.45 7.81 8.19 8.74 7.96 8.09 7.74 8.20 7.24 *7.'47* 7.39 7.80 14 4 West Coast 7.11 7.73 8.77 9.10 7.85 8.08 7.58 7.95 7.45 7.91 7.01 7.68 Long-term rates 15 All 35 centers 7.48 8.45 9.39 9.61 8.88 9.02 8.14 8.55 8.13 8.60 7.24 8.40 16 New York City 7.36 8.52 7.19 8.55 8.27 7.93 8.05 8.06 8.44 7.26 8.56 17 7 Other Northeast 6.64 8.62 9.22 9.40 8.84 9.43 7.95 8.93 7.92 7.50 5.73 8.70 18 8 North Central 7.66 8.05 9.20 8.83 9.03 9.07 8.35 8.26 8.99 8.36 7.32 7.92 19 7 Southeast 7.59 8.88 9.87 9.60 9.35 9.08 7.93 9.88 4.00 8.18 7.79 8.06 20 8 Southwest 7.73 8.42 10.54 10.85 9.05 9.04 8.28 8.23 8.44 8.69 7.20 8.30 21 4 West Coast 8.04 8.67 8.70 9.28 8.54 8.58 8.31 8.81 7.78 10.00 8.03 8.46 NOTE.—Weighted-average rates based on sample of loans made during first 7 days of the survey month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets All 1.36 INTEREST RATES in Money and Capital Markets Averages, per cent per annum 1976 1977 1977, week ending- Instrument 1974 1975 1976 Oct. Nov. Dec. Jan. Jan. 8 Jan.15 Jan. 22 Jan.29 Money market rates Prime commercial paper 1 1 90-to-119 day 10.05 6.26 5.24 5.10 4.98 4.66 4.72 4.63 4.73 4.75 4.78 2 4- to 6-month 9.87 6.33 5.35 5.22 5.05 4.70 4.74 4.63 4.75 4.75 4.83 3 Finance company paper, directly placed, 3- to 6month 2 8.62 6.16 5.22 5.08 4.92 4.56 4.64 4.50 4.60 4.70 4.75 4 Prime bankers acceptances, 90-day 3 9.92 6.30 5.19 5.06 4.90 4.62 4.81 4.70 4.80 4.84 4.87 5 Federal funds 4 10.51 5.82 5.05 5.03 4.95 4.65 4.61 4.47 4.55 4.65 4.72 Large negotiable certificates of deposit 6 3-month, secondary market 5 10.27 6.43 5.26 5.13 5.00 4.67 4.82 4.70 4.80 4.89 4.88 5.15 5.03 4.95 4.54 4.68 4.50 4.70 4.75 4.75 8 Euro-dollar deposits, 3-month 7 10.96 6.97 5.57 5.47 5.29 5.01 5.14 5.03 5.04 5.23 4.18 U.S. Govt, securities 8 Bills: Market yields: 9 3-month 7.84 5.80 4.98 4.92 4.75 4.35 4.62 4.49 4.58 4.65 4.72 10 6-month 7.95 6.11 5.26 5.06 4.88 4.51 4.83 4.64 4.79 4.86 4.97 11 1-year 7.71 6.30 5.52 5.19 5.00 4.64 5.00 4.76 4.93 5.08 5.18 Rate on new issue: 12 3-month 7.886 5.838 4.989 4.930 4.810 4.354 4.597 4.407 4.613 4.668 4.700 13 6-month 7.926 6.122 5.266 5.073 4.944 4.513 4.783 4.555 4.803 4.868 4.905 Notes and bonds maturing in— 14 9 to 12 months 8.25 6.70 5.84 5.49 5.29 4.92 5.34 5.06 5.33 5.43 5.51 15 3 to 5 years 7.81 7.55 6.94 6.50 6.35 5.96 6.49 6.12 6.48 6.57 6.71 Capital market rates Government bonds U.S. Treasury: 9 16 Long-term 6.99 6.98 6.78 6.65 6.62 6.39 6.68 6.42 6.62 6.73 6.88 17 20-year constant maturity 8.05 8.19 7.86 7.70 7.64 7.30 7.48 7.26 7.50 7.54 7.59 State and local: Moody's series: 18 Aaa 5.89 6.42 5.66 5.29 5.27 5.07 5.10 5.01 5.10 5.13 5.17 19 Baa 6.53 7.62 7.49 r7.20 r7.16 6.73 6.58 6.56 6.60 6.60 6.55 20 Bond Buyer series 11 6.17 7.05 6.64 6.30 6.29 5.94 5.87 5.78 5.89 5.90 5.92 Corporate bonds Seasoned issues (Moody's series)12 21 All industries 9.03 9.57 9.01 8.71 8.66 8.47 8.41 8.37 8.39 8.43 8.46 By rating groups: 22 Aaa 8.57 8.83 8.43 8.32 8.25 7.98 7.96 7.88 7.94 7.99 8.01 23 Aa 8.84 9.17 8.75 8.48 8.46 8.24 8.16 8.12 8.12 8.18 8.20 24 A 9.20 9.65 9.09 8.73 8.69 8.53 8.45 8.40 8.42 8.47 8.50 25 Baa 9.50 10.61 9.75 9.29 9.23 9.12 9.08 9.06 9.07 9.08 9.11 Aaa utility bonds: 13 26 New issue 9.33 9.40 8.48 8.25 8.17 7.94 8.08 7.90 8.05 8.10 8.22 27 Recently offered issues 9.34 9.41 8.49 8.24 8.18 7.93 8.09 7.95 8.06 8.15 8.18 1 Averages of the most representative daily offering rate quoted by 8 Except for new bill issues, yields are computed from daily closing dealers. bid prices. Yields for all bills are quoted on a bank-discount rate basis. 2 Averages of the most representative daily offering rates published by Yields for notes and bonds are unweighted averages for all outstanding finance companies for varying maturities in this range. issues in maturity ranges shown. 3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of 9 Yields are computed from daily closing bid prices. Long-term yield is the range of daily dealer closing rates offered for domestic issues; prior unweighted average for all bonds neither due nor callable in less than 10 data are averages of the most representative daily offering rate quoted by years; 20-year constant maturity represents yield on the more actively dealers. traded issues adjusted to a 20-year maturity by the U.S. Treasury. 4 Weekly figures are 7-day averages of daily effective rates for the week I o General obligations only, based on figures for Thursday, from ending Wednesday; the daily effective rate is an average of the rates on Moody's Investors Service. a given day weighted by the volume of transactions at these rates. II Twenty issues of mixed quality. 5 Averages of the daily midpoints as determined from the range of 12 Averages of daily figures from Moody's Investors Service. offering rates in the secondary market. 13 Compilation of the Board of Governors of the Federal Reserve 6 Posted rates, which are the annual interest rates most often quoted System. on new offerings of negotiable CD's in denominations of $100,000 or Issues included are long-term (20 years or more). New-issue yields are more. Rates prior to 1976 not available. Weekly figures are for Wednes- based on quotations on date of offering; those on recently offered issues day dates. (included only for first 4 weeks after termination of underwriter price 7 Averages of daily quotations for the week ending Wednesday. restrictions), on Friday close-of-business quotations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • February 1977 1.37 STOCK MARKET Selected Statistics 1976 1977 Indicator 1974 1975 1976 July Aug. Sept. Oct. Nov. Dec. Jan. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50), total 43.84 45.73 54.45 55.70 55.06 56.30 54.43 54.17 56.34 56.28 2 Industrial 48.08 51.88 60.44 62.10 61.09 62.34 60.07 59.45 61.54 61.26 3 Transportation 31.89 30.73 39.57 42.12 40.63 40.36 38.37 39.28 41.77 41.93 4 Utility 29.82 31.45 36.97 36.49 37.56 38.77 38.33 38.85 40.61 41.13 5 Finance 49.67 46.62 52.94 54.06 54.22 54.51 52.74 53.25 57.45 57.86 6 Standard and Poor's Corporation (1941-43 10), totali 82.85 85.17 102.01 104.20 103.29 105.45 101.89 101.19 104.66 103.81 7 American Stock Exchange (Aug. 31, 1973 = 100), total 79.97 83.15 101.63 105.24 102.79 102.92 98.99 99.20 104.06 111.04 Volume of trading (thousands of shares)2 8 New York Stock Exchange 13,883 18,568 21,189 18,977 15,758 18,892 17,397 19,370 23,621 23,562 9 American Stock Exchange 1,908 2,150 2,565 2,280 1,605 1,902 1,700 2,211 3,095 3,268 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers and banks3 4,836 6,500 9,001 8,417 8,683 8,566 8,772 8,629 9,001 11 Brokers, total 3,980 5,540 8,166 7,519 7,622 7,707 7,704 7,790 8,166 12 Margin stock4 3,840 5,390 7,960 7,340 7,450 7,530 7,530 7,610 7,960 13 Convertible bonds 137 147 204 176 167 174 168 178 204 14 Subscription issues 3 3 2 3 5 3 6 2 2 15 Banks, total 856 960 835 898 1,061 859 1,068 839 835 16 Margin stocks 815 909 790 854 1,008 813 1,019 790 790 17 Convertible bonds 30 36 31 28 34 32 34 35 31 18 Subscription issues 11 15 14 16 19 14 15 14 14 19 Unregulated nonmargin stock credit at banks5 2,064 2,281 3,785 2,317 2,368 2,830 2,774 3,351 3,785 MEMO: Free credit balances at brokers6 20 Margin-account 410 475 585 530 555 555 611 615 585 21 Cash-account 1,425 1,525 1,855 1,635 1,605 1,710 1,580 1,740 1,855 Margin-account debt at brokers (percentage distribution, end of period) 22 Total. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in per cent):7 Under 40 45.4 25.0 13.0 14.0 18.2 12.2 15.0 14.0 13.0 40-49 23.0 28.8 22.0 31.1 33.9 29.9 34.0 32.0 22.0 50-59 13.9 22.3 35.0 27.7 22.7 29.6 25.6 27.0 35.0 60-69 8.8 11.6 15.0 13.0 12.7 14.1 12.7 13.0 15.0 70-79 4.6 6.9 8.7 8.0 6.9 8.0 7.2 8.0 8.7 80 or more 4.3 5.3 6.0 6.1 5.7 6.3 5.7 6.0 6.0 Margin requirements 8 (per cent of market value) effective- Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Mar. 24, 1972 Jan. 3, 1974 29 Margin stocks .70 .80 .65 .55 .65 .50 30 Convertible bonds .50 .60 .50 .50 .50 .50 31 Short sales ..7700 .80 .65 .55 .65 .50 1 Effective July 1976 includes a new financial group, banks and in- counter margin stocks. At banks, loans to purchase or carry nonmargin surance companies. With this change the index includes 400 industrial stocks are unregulated; at brokers, such stocks have no loan value. stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public 6 Free credit balances are in accounts with no unfulfilled commitments utility (formerly 60), and 40 financial. to the brokers and are subject to withdrawal by customers on demand. 2 Based on trading for a 5Vi-hour day. 7 Each customer's equity in his collateral (market value of collateral 3 Margin credit includes all credit extended to purchase or carry less net debit balance) is expressed as a percentage of current collateral stocks or related equity instruments and secured at least in part by stock. values. Credit extended by brokers is end-of-month data for member firms of 8 Regulations G, T, and U, prescribed in accordance with the Securities the New York Stock Exchange; June data for banks are universe totals; Exchange Act of 1934, limit the amount of credit to purchase and carry all other data for banks are estimates for all commercial banks based on margin stocks that may be extended on securities as collateral by predata from a sample of reporting banks. scribing a maximum loan value, which is a specified percentage of the In addition to assigning a current loan value to margin stock generally, market value of the collateral at the time the credit is extended. Margin Regulations T and U permit special loan values for convertible bonds requirements are the difference between the market value (100 per cent) and stock acquired through exercise of subscription rights. and the maximum loan value. The term "margin stocks" is defined in 4 A distribution of this total by equity class is shown below. the corresponding regulation. 5 Nonmargin stocks are those not listed on a national securities ex- Regulation G and special margin requirements for bonds convertible change and not included on the Federal Reserve System's list of over-the- 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

Thrift Institutions A29 1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1976 1973 1974 1975 Apr. May June July Aug. Sept. Oct. Nov. Dec. Savings and loan associations 1 Assets 271,905 295,524 338,395 357,827 363,032 366,598 371,956 376,364 379,925 385,192 389,354r 392,192 2 Mortgages 231,733 249,293 278,693 290,727 294,759 299,574 303,815 308,049 312,139 316,034 319,568r 332233,,339944 3 Cash and investment securities1 21,055 23,240 30,900 36,437 37,005 35,316 36,029 35,873 35,262 36,499 36,661' 35,691 4 Other 19,117 22,991 28,802 30,663 31,268 31,708 32,112 32,442 32,524 32,659 33,125 33,107 5 Liabilities and net worth 271,905 295,524 338,395 357,827 363,032 366,598 371,956 376,364 379,925 385,192 389,354 r 392,192 6 Savings capital 226,968 242,959 286,043 305,234 308,284 313,326 316,510 318,675 324,272 327,739 330,331r 336,553 7 Borrowed money 17,172 24,780 20,709 17,759 17,670 18,251 18,439 18,935 19,161 18,888 r18,794 19,187 8 FHLBB 14,951 21,508 17,524 15,031 14,898 15,016 15,139 15,495 15,832 15,636 15,571 15,700 9 Other 2,221 3,272 3,185 2,728 2,772 3,235 3,300 3,440 3,329 3,252 3,223' 3,487 10 Loans in process 4,667 3,244 5,187 5,787 6,156 6,464 6,640 6,697 6,756 6,805 6,823r 6,907 11 Other 6,042 6,105 6,680 8,572 10,234 7,796 9,370 10,791 8,352 10,089 11,466' 7,518 12 Net worth 2 1177,,005566 18,436 19,776 20,475 20,688 20,761 20,997 21,266 21,384 21,671 21,940r 22,027 MEMO: 13 Mortgage loan commitments outstanding 3 9,526 7,454 10,675 15,512 16,620 16,639 16,328 15,796 15,470 15,338 r15,485 14,933 Mutual savings banks 14 Assets. 106,651 109,550 121,056 126,470 127,470 128,436 129,826 130,571 131,413 132,455 133,361 Loans : Mortgage.. 73,231 74,891 77,221 78,046 78,286 78,803 79,398 79,781 80,145 80,543 80,884 Other 3,871 3,812 4,023 5,027 5,103 5,137 5,341 5,210 5,478 5,549 5,801 Securities: 17 U.S. Govt.. 2,957 2,555 4,740 5,533 5,660 5,635 5,640 5,733 5,851 5,796 5,836 18 926 930 1,545 2,149 2,318 2,337 2,376 2,339 2,359 2,429 2,466 19 Corporate and other4... 21,383 22,550 27,992 30,707 31,179 31,493 32,028 32,319 32,432 32,793 33,074 20 Cash 1,968 2,167 2,330 1,647 1,539 1,558 1,538 1,552 1,581 1,695 1,668 21 Other assets 2,314 2,645 3,205 3,361 3,385 3,470 3,505 3,576 3,567 3,649 3,632 22 Liabilities 176,651 109,550 121,056 126,470 127,470 128,436 129,826 130,571 131,413 132,455 133,361 23 Deposits 96,496 98,701 109,873 114,752 115,521 116,876 117,883 118,225 119,590 120,360 120,971 24 Regular:5 96,056 98,221 109,291 113,960 114,761 115,985 116,895 117,203 118,510 119,346 120,125 25 Ordinary savings 65,221 64,286 69,653 71,801 72,156 72,763 73,223 72,872 73,484 73,610 73,857 26 Time and other 30,835 33,935 39,639 42,159 42,605 43,223 43,662 44,331 45,027 45,736 46,268 27 Other 440 480 582 792 760 890 988 1,022 1,080 1,014 1,846 28 Other liabilities 2,566 2,888 2,755 3,106 3,296 2,841 3,161 3,490 2,898 3,140 3,376 29 General reserve accounts.... 7,589 7,961 8,428 8,612 8,654 8,719 8,781 8,855 8,925 8,955 9,015 MEMO: 30 Mortgage loan commitments outstanding 6 3,261 2,040 1,803 2,290 2,426 2,402 2,433 2,459 2,671 2,548 2,553 Life insurance companies 31 Assets 254,436 263,349 289,304 299,983 301,754 304,728 307,005 309,295 312,044 313,960 316,505 Securities: 32 Government 19,519 ' 10,900 13,758 15,917 15,975 15,947 16,672 16,902 16,862 17,329 17,565 33 United States 7 3,444 3,372 4,736 5,198 5,141 4,863 5,150 5,922 5,150 5,448 5,606 34 State and local 3,412 3,667 4,508 5,100 5,146 5,196 5,263 5,324 5,364 5,446 5,467 35 Foreign 8 3,663 3,861 4,514 5,619 5,688 5,888 6,259 6,286 6,348 6,435 6,492 36 Business 118,599 119,637 135,317 143,197 114,496 147,193 148,617 150,303 152,125 153,298 154,502 37 Bonds 92,680 97,717 107,256 111,757 113,087 114,583 116,101 117,806 118,706 120,358 121,659 38 Stocks 25,919 21,920 28,061 31,440 31,409 32,610 32,516 32,497 33,419 32,940 32,843 39 Mortgages 81,369 86,234 89,167 89,489 89,529 89,691 89,753 89,891 90,217 90,323 90,808 40 Real estate 7,693 8,331 9,621 9,852 9,909 10,004 10,050 10,146 10,175 10,285 10,310 41 Policy loans 20,199 22,862 24,467 24,873 24,978 25,142 25,257 25,383 25,505 25,607 25,710 42 Other assets 14,057 15,385 16,971 16,655 16,867 16,751 16,656 16,670 17,160 17,118 17,610 1 Stock of the Federal Home Loan Bank Board (FHLBB) is included NOTE.—Savings and loan associations: Estimates by the FHLBB for in "other assets." all associations in the United States. Data are based on monthly reports 2 Includes net undistributed income, which is accrued by most, but not of Federally insured associations and annual reports of other associations. all, associations. Even when revised, data for current and preceding year are subject to 3 Excludes figures for loans in process, which are shown as a liability. further revision. 4 Includes securities of foreign governments and international organiza- Mutual savings banks: Estimates of National Association of Mutual tions and nonguaranteed issues of U.S. Govt, agencies. Savings Banks for all savings banks in the United States. Data are re- 5 Excludes checking, club, and school accounts. ported on a gross-of-valuation-reserves basis. 6 Commitments outstanding (including loans in process) of banks in Life insurance companies: Estimates of the Institute of Life Insurance New York State as reported to the Savings Banks Assn. of the State of for all life insurance companies in the United States. Annual figures are New York. annual-statement asset values, with bonds carried on an amortized basis 7 Direct and guaranteed obligations. Excludes Federal agency issues and stocks at year-end market value. Adjustments for interest due and not guaranteed, which are shown in this table under "business" securities. accrued and for differences between market and book values are not 8 Issues of foreign governments and their subdivisions and bonds of the made on each item separately but are included, in total, in "other assets." International Bank for Reconstruction and Development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 DomesticN onfinancial Statistics • February 1977 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year Transition quarter Type of account or operation (July- 1975 1976 1975 1976 Sept. 1976) H2 6 HI 6 H2 6 Oct. Nov. U.S. Budget 1 Receipts r280,997 300,005 81,773 r139,455 '•160,550 157,961 21,018 25,698 29,472 2 Outlays 1 r326,105 r366.466 '94,746 '185,114 181,351 193,719 34,000 33,083 31,891 4 3 Su T rp r l u u s s t , f o u r n d d e s f icit ( —) -45 r7 ,1 , 0 4 8 1 9 -66 r2 ,4 , 6 4 1 0 9 r - 1 — 2, 1 9 , 7 9 3 5 2 -r4 — 5,6 3 6 ,1 0 2 6 -20 r5 ,8 , 0 5 1 0 3 -3 - 5 4 ,7 ,6 58 2 1 -1 - 2 4 ,9 ,7 81 3 4 -7,38 3 5 2 8 -2, 1 4 , 1 7 9 3 7 5 Federal funds 2 -52,526 -68,870 — 11,021 '-42,534 -26,304 -31,137 -8,247 -7,713 -4,156 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays. .. -6,389 -5,915 -2,575 r—2,693 r —3,222 3,809 -702 -301 -1,598 7 Other i,3 -1,652 -1,355 793 '—236 '-1,119 -5,176 3,273 -305 48 U.S. Budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) -53,149 -73,731 -14,755 -48,588 -25,143 -37,125 -10,411 -7,991 -3,969 Financed by: 9 Borrowing from the public 50,867 r82,922 a8,027 r49,378 r33,544 35,457 4,386 6,738 6,306 10 Cash and monetary assets (decrease, or increase (—)) -320 -7,796 -2,899 -2,046 '-5,749 2,153 r4,271 c4,308 -3,527 11 Other4 2,602 -1,396 -373 '1,256 '-2,652 -485 C1,754 -3,055 1,189 MEMO: 12 Treasury operating balance {level, end of period) 7,591 14,836 17,418 8,452 14,836 11,670 12,038 8,657 11,670 13 F.R.Banks 5,773 11,975 13,299 7,286 11,975 10,393 10,239 6,766 10,393 14 Tax and loan accounts 1,475 2,854 4,119 1,159 2,854 1,277 1,799 1,891 1,277 15 Other demand accounts 5 343 7 7 7 1 Revised to reflect the reclassification of the Export-Import Bank from 5 Excludes the gold balance but includes deposits in certain commercial off-budget status to unified budget status. depositories that have been converted from a time deposit to a demand 2 Half years calculated as a residual of total surplus/deficit and trust deposit basis to permit greater flexibility in Treasury cash management. fund surplus/deficit. 6 Effective July 1, 1975, Export-Import Bank certificates of beneficial 3 Includes Pension Benefit Guaranty Corp., Postal Service Fund, Rural interest are treated as debt rather than asset sales. Half-year outlays and Electrification and Telephone Revolving Fund, Rural Telephone Bank, borrowings data do not necessarily reflect correctly the timing of these and Housing for the Elderly or Handicapped Fund. transactions. 4 Includes: Public debt accrued interest payable to the public; deposit funds; miscellaneous liability (including checks outstanding) and asset SOURCE.—Monthly "Treasury Statement of Receipts and Outlays of accounts; seignorage; increment on gold.; net gain/loss for U.S. currency the U.S. Government" and Treasury Bulletin. valuation adjustment; conversion of interest receipts of Government accounts to an accrual basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 5 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Fiscal year Calendar year Transition quarter Source or type (July- 1975 1976 1975 1976 Sept. 1976)6 HI H2 HI Oct. Nov. Dec. Receipts 1 All sources 280,997 300,005 81,773 141,190 139,453 160,552 21,018 25,698 29,472 2 Individual income taxes, net 122,386 131,603 38,801 54,926 65,835 65,767 11,095 12,535 12,663 3 Withheld 122,071 123,408 32,949 60,694 59,549 63,859 10,694 12,201 12,179 4 Presidential Election Campaign Fund 32 34 1 33 5 Nonwithheld 34,296 35,528 6,809 27,198 7,649 27,879 564 375 678 6 Refunds 34,013 27,367 958 32,997 1,362 26,004 163 41 194 7 Corporation income taxes 8 Gross receipts 45,747 46,783 '9,808 27,500 18,810 27,973 1,874 1,185 7,838 9 Refunds 5,125 5,374 1,348 3,109 2,735 2,639 846 486 205 10 Social insurance taxes and contributions, net 86,441 92,714 '25,760 46,667 40,886 51,828 6,199 9,432 6,207 11 Payroll employment taxes and contributions 1 71,789 76,391 21,534 37,371 35,443 40,947 5,308 7,775 5,809 12 Self-employment taxes and contributions 1 3,417 3,518 269 33,,116633 268 33,,225500 1177 13 Unemployment insurance '6,771 8,054 2,698 33,,885566 2,861 55,,119933 503 1,205 --2266 14 Other net receipts 2 4,466 4,752 '1,259 22,,227799 2,314 22,,443388 388 451 440077 15 Excise taxes 16,551 16,963 4,473 7,790 8,759 8,204 1,408 1,517 1,513 16 Customs 3,676 4,074 1,212 1,718 1,927 2,147 417 570 412 17 Estate and gift 4,611 5,216 1,455 2,327 2,573 2,643 345 392 502 18 Miscellaneous receipts 3 6,711 8,026 '1,612 3,370 3,397 4,630 527 553 542 Outlays 19 All types '326,105 '366,466 '94,746 171,494 184,545 181,066 34,000 33,083 31,891 20 National defense '86,585 '89,996 '22,518 43,979 46,164 44,052 7,604 7,434 7,575 21 International affairs '5,862 '5,067 '1,997 2,592 2,097 2,365 539 294 472 22 General science, space, and technology '3,989 '4,370 '1,161 2,047 2,489 1,708 431 400 418 23 Natural resources, environment, and energy '9,537 '11,282 '3,324 5,584 4,775 6,900 1,057 1,341 1,217 24 Agriculture '1,660 '2,502 '584 1,074 1,577 417 122 630 507 25 Commerce and transportation 16,010 '17,248 '4,700 7,020 11,472 5,766 2,237 1,726 995 26 Community and regional development. 4,431 '5,300 '1,530 2,192 2,612 2,411 425 756 506 27 Education, training, employment, and social services '15,248 '18,167 '5,013 8,980 8,563 9,116 1,128 1,709 1,563 28 Health 27,647 '33,448 '8,720 14,626 16,593 17,008 3,251 3,014 4,071 29 Income security 108,605 '127,406 '32,796 59,543 61,560 65,336 11,070 11,016 10,533 30 Veterans benefits and services.... '16,597 '18,432 '3,962 8,764 8,994 9,450 1,401 1,699 1,467 31 Law enforcement and justice 2,942 '3,320 '859 1,698 1,542 1,784 258 300 297 32 General government '3,089 '2,927 '878 1,204 2,082 870 160 395 326 33 Revenue sharing and general purpose fiscal assistance '7,005 '7,119 2,024 3,389 3,450 3,664 2,112 590 127 34 Interest4 '30,974 '34,589 '7,246 15,673 16,940 18,560 2,642 2,438 6,025 35 Undistributed offsetting receipts 4.5 14,075 -14,704 -2,567 -6,871 -6,365 -8,340 -436 -659 -4.207 1 1 Old-age, disability and hospital insurance, and Railroad Retirement 5 Consists of interest received by trust funds, rents and royalties on accounts. the Outer Continental Shelf, and U.S. Govt, contributions for em- 2 Supplementary medical insurance premiums, Federal employee re- ployee retirement. tirement contributions and Civil Service retirement and disability fund. 6 Effective in calendar year 1976, the fiscal year for the U.S. Govt, 3 Deposits of earnings by F.R. Banks and other miscellaneous receipts. changed from July 1-June 30 to October 1-September 30. The period 4 Effective September 1976, "Interest" and "Undistributed Offsetting July 1-September 30 of 1976, data for which are shown separately from Receipts" reflect the accounting conversion for the interest on special fiscal year 1976 and fiscal year 1977 totals, is a transition quarter. issues for U.S. Govt, accounts from an accrual basis to a cash basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • February 1977 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMIT Billions of dollars 1973 1974 1975 1976 IItteemm June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 468.4 480.7 486.2 504.0 544.1 587.6 611.4 631.3 '645.7 2 Public debt securities 457.3 469.1 474.2 492.7 533.7 576.6 600.5 620.4 634.7 3 Held by public 333.9 339.4 336.0 351.5 387.9 437.3 461.4 470.8 488.6 4 Held by agencies 123.4 129.6 138.2 141.2 145.3 139.3 139.1 149.6 146.1 5 Agency securities 11.1 11.6 12.0 11.3 10.9 10.9 10.9 11.9 11.0 6 Held by public 9.1 9.6 10.0 9.3 9.0 8.9 8.9 8.9 9. 1 7 Held by agencies 2.0 2.0 2.0 2.0 1.9 2.0 2.0 2.0 1.9 8 Debt subject to statutory limit 459.1 470.8 476.0 493.0 534.2 577.8 601.6 621.6 635.8 9 Public debt securities 456.7 468.4 473.6 490.5 532.6 576.0 599.9 619.8 634.1 10 Other debt1 2.4 2.4 2.4 2.4 1.6 1.7 1.7 1.7 1.7 11 MEMO: Statutory debt limit 465.0 475.7 495.0 495.0 577.0 595.0 627.0 636.0 636.0 i Includes guaranteed debt of Govt, agencies, specified participation SOURCE.—U.S. Treasury Bulletin. certificates, notes to international lending organizations, and District of Columbia stadium bonds. 1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1977 Type and holder 1973 1974 1975 Aug. Sept. Oct. Nov. Dec. Jan. 1 Total gross public debt1 469.9 492.7 576.6 633.3 634.7 637.6 644.6 653.5 653.9 By type: 2 Interest-bearing debt 360.7 373.4 457.1 502.5 505.7 508.7 517.0 523.5 527.0 3 Marketable 270.2 282.9 363.2 404.3 407.7 408.6 415.4 421.3 424.0 4 Bills 107.8 119.7 157.5 161.4 161.5 161.5 161.7 164.0 164.0 5 Notes 124.6 129.8 167.1 203.0 206.3 207.3 213.0 216.7 219.5 6 Bonds 37.8 33.4 38.6 39.9 39.8 39.8 40.7 40.6 40.5 7 Nonmarketable2 197.6 208.7 212.5 228.0 225.9 226.5 228.2 231.2 229.0 8 Convertible bonds3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 9 Foreign issues4 26.0 22.8 21.6 21.0 20.8 22.3 22.5 22.3 22.2 10 Savings bonds and notes 60.8 63.8 67.9 71.5 71.2 71.5 71.9 72.3 72.6 11 Govt, account series5 108.0 119.1 119.4 130.6 128.6 127.2 127.4 129.7 126.8 By holder:6 12 U.S. Govt, agencies and trust funds 129.6 141.2 139.3 148.0 146.1 144.6 144.9 13 F.R.Banks 78.5 80.5 87.9 94.0 96.4 95.7 91.7 14 Private investors 261.7 271.0 349.4 391.3 392.2 397.3 408.1 15 Commercial banks 60.3 55.6 85.1 92.5 93.3 94.8 99.8 16 Mutual savings banks 2.9 2.5 4.5 5.4 5.3 5.3 5.3 17 Insurance companies 6.4 6.1 9.3 11.6 11.6 12.1 12.2 18 Other corporations 10.9 11.0 20.2 27.8 25.7 24.7 24.2 19 State and local governments.... 29.2 29.2 33.8 38.7 39.1 41.5 42.1 Individuals: 20 Savings bonds 60.3 63.4 67.3 70.9 70.9 71.3 71.6 21 Other securities 16.9 21.5 24.0 28.8 28.8 28.8 29.0 22 Foreign and international? 55.5 58.4 66.5 74.6 74.6 75.2 76.0 23 Other miscellaneous investors8 . . 19.3 23.2 38.6 40.9 42.9 r43.6 47.7 1 Includes $.9 billion of non-interest-bearing debt (of which $612 6 Data for F.R. Banks and U.S. Govt, agencies and trust funds are million on Jan. 31, 1977, was not subject to statutory debt limitations). actual holdings; data for other groups are Treasury estimates. 2 Includes (not shown separately): Securities issued to the Rural 7 Consists of the investments of foreign balances and international Electrification Administration and to State and local governments, de- accounts in the United States. Beginning with 1974, the figures exclude positary bonds, retirement plan bonds, and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 3 These nonmarketable bonds, also known as Investment Series B 8 Includes savings and loan associations, nonprofit institutions, cor- Bonds, may be exchanged (or converted) at the owner's option for 1 Vi porate pension trust funds, dealers and brokers, certain Govt, deposit per cent, 5-year marketable Treasury notes. Convertible bonds, which accounts, and Govt.-sponsored agencies. have been so exchanged, are removed from this category and recorded in the notes category above. NOTE.—Gross public debt excludes guaranteed agency securities and, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the beginning in July 1974, includes Federal Financing Bank security issues. Treasury foreign series and foreign-currency series. SOURCE.—For data by type of security, Monthly Statement of the Public 5 Held only by U.S. Govt, agencies and trust funds. Debt of the United States, U.S. Treasury Department; for data by holder, Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 5 1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars; end of period 1976 1976 1975 1975 Type of holder Oct. Nov. Dec. Oct. Nov. Dec. All maturities 1 to 5 years 1 All holders 363,191 408,590 415,399 421,276 112,270 127,938 137,932 141,132 2 U.S. Govt, agencies and trust funds 19,347 16,640 16,429 16,485 7,058 5,850 6,213 6,141 3 F. R. Banks 87,934 95,738 91,660 96,971 30,518 30,293 30,036 31,249 4 Private investors 255,860 296,212 307,310 307,820 74,694 91,795 101,683 103,742 5 Commercial banks 64,398 71,077 74,013 IS,262 29,629 35,660 38,254 40,005 6 Mutual savings banks 3,300 3,954 3,956 4,072 1,524 2,009 2,083 2,010 7 Insurance companies 7,565 10,111 10,194 10,284 2,359 3,680 3,768 3,885 8 Nonfinancial corporations 9,365 13,547 13,062 14,193 1,967 2, All 2,873 2,618 9 Savings and loan associations 2,793 4,375 4,462 4,576 1,558 2,102 2,320 2,360 10 State and local governments 9,285 12,427 12,543 12,252 1,761 2,373 2,546 2,543 11 All others 159,154 180,720 189,080 184,182 35,894 43,493 49,840 50,321 Total, Within 1 year 5 to 10 years I 12 All holders 199,692 207,679 208,271 211,035 26,436 46,562 43,060 43,045 13 U.S. Govt, agencies and trust funds 2,769 2,200 1,929 2,012 3,283 2,565 2,835 2,879 14 F. R. Banks 46,845 50,301 47,920 51,569 6,463 10,075 8,876 9,148 15 Private investors 150,078 155,178 158,422 157,454 16,690 33,922 31,349 31,018 16 Commercial banks 29,875 27,406 28,629 31,213 4,071 7,228 6,301 6,278 17 Mutual savings banks 983 1,065 1,087 1,214 448 647 516 567 18 Insurance companies 2,024 2,221 2,348 2,191 1,592 2,546 2,427 2,546 19 Nonfinancial corporations 7,105 10,514 9,738 11,009 175 395 295 370 20 Savings and loan associations 914 1,978 1,926 1,984 216 214 139 155 21 State and local governments 5,288 6,764 7,072 6,622 782 1,581 1,380 1,465 22 All others 103,889 105,231 107,621 103,220 9,405 21,311 20,291 19,637 Bills, within 1 year 10 to 20 years 23 All holders 157,483 161,545 161,711 163,992 14,264 13,176 11,915 11,865 24 U.S. Govt, agencies and trust funds 207 449 375 449 4,233 3,676 3,102 3,102 25 F. R. Banks 38,018 41,237 37,992 41,279 1,507 1,603 1,303 1,363 26 Private investors 119,258 119,859 123,344 122,264 8,524 7,897 7,510 7,400 27 Commercial banks 17,481 14,310 15,202 17,303 552 490 406 339 28 Mutual savings banks 554 373 355 454 232 178 155 139 29 Insurance companies 1,513 1,525 1,621 1,463 1,154 1,127 1,122 1,114 30 Nonfinancial corporations 5,829 9,215 8,712 9,939 61 130 120 142 31 Savings and loan associations 518 1,319 1,257 1,266 82 68 65 64 32 State and local governments 4,566 5,571 6,022 5,556 896 909 723 718 33 All others 88,797 87,547 90,175 86,282 5,546 4,994 4,919 4,884 Other, within 1 year Over 20 years 34 All holders 42,209 46,134 46,560 47,043 10,530 13,234 14,221 14,200 35 U.S. Govt, agencies and trust funds 2,562 1,751 1,554 1,563 2,053 2,350 2,350 2,350 36 F. R. Banks 8,827 9,064 9,928 10,290 2,601 3,466 3,527 3,642 37 Private investors 30,820 35,319 35,078 35,190 5,876 7,418 8,344 8,208 38 Commercial banks 12,394 13,096 13,427 13,910 271 292 423 427 39 Mutual savings banks 429 692 732 760 112 54 115 143 40 Insurance companies 511 696 727 728 436 536 529 548 41 Nonfinancial corporations 1,276 1,299 1,026 1,070 57 31 36 55 42 Savings and loan associations 396 659 669 718 22 14 12 13 43 State and local governments 722 1,193 1,050 1,066 558 800 821 904 44 All others 15,092 17,684 17,446 16,938 4,420 5,691 6,409 6,120 NOTE.—Direct public issues only. Based on Treasury Survey of Owner- banks, 469 mutual savings banks, and 729 insurance companies, each ship. From Treasury Bulletin (U.S. Treasury Dept.). about 90 per cent; (2) 449 nonfinancial corporations and 486 savings Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, and loan assns., each about 50 per cent; and (3) 500 State and local but data for other groups include only holdings of those institutions govts., about 40 per cent. that report. The following figures show, for each category, the number "All others," a residual, includes holdings of all those not reporting and proportion reporting as of November 30, 1976; (1) 5,503 commercial in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • February 1977 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1976 1976 1977 IIIttteeemmm 111999777444 111999777555 Week ending Wednesday OOcctt.. NNoovv.. DDeecc.. Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 1 U.S. Govt, securities 3,579 6,027 13,240 14,995 13,059 12,704 8,649 10,786 15,529 13,811 9,814 By maturity: 2 Bills 2,550 3,889 7,425 8,565 7,511 7,853 5,641 6,788 9,115 8,555 6,108 3 Other within 1 year 250 223 179 170 172 144 130 145 150 153 126 4 1-5 years 465 1,414 3,084 4,034 3,355 3,038 '1,546 1,806 3,772 2,947 2,408 5 5-10 years 256 363 2,252 1,804 1,653 1,363 '1,047 1,788 2,098 1,807 962 6 Over 10 years 58 138 300 422 368 306 285 258 394 349 209 By type of customer: 7 U.S. Govt, securities dealers 652 885 1,632 1,873 1,650 1,748 '1,597 1,790 1,829 1.945 1,388 8 U.S. Govt, securities brokers 965 1,750 4,768 5,389 4,444 4,260 '2,116 3,288 6,144 5,234 3,167 9 Commercial banks 998 1,451 2,956 '3,279 2,999 3,002 '2,116 2,674 3,671 3,020 2,328 10 All others1 964 1,941 3,883 '4,454 3,966 3,694 '2,819 3,034 3,886 3,611 2,931 11 Federal agency securities 965 1,043 2,230 2,096 2,025 2,191 1,003 1,347 2,364 1,861 1,496 1 Includes—among others—all other dealers and brokers in commodi- Transactions are market purchases and sales of U.S. Govt, securities ties and securities, foreign banking agencies, and the F.R. System. dealers reporting to the F.R. Bank of New York. The figures exclude allotments of, and exchanges for, new U.S. Govt, securities, redemptions NOTE.—Averages for transactions are based on number of trading days of called or matured securities, or purchases or sales of securities under in the period. repurchase, reverse repurchase (resale), or similar contracts. 1.45 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing Par value; averages of daily figures, in millions of dollars 1976 1976 1977 Item 1974 1975 Week ending Wednesday Nov. Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Positions2 1 U.S. Govt, securities 2,580 5,884 8,045 9,744 10,840 9,188 11,090 11,452 10,248 11,310 10,140 2 Bills 1,932 4,297 6,213 7,321 8,394 6,829 8,480 9,521 8,174 8,250 7,123 3 Other within 1 year -6 265 228 161 155 169 161 119 113 217 182 4 1-5 years 265 886 672 1,102 1,336 1,257 1,483 918 1,108 1,815 1,631 5 5-10 years 302 S 300 695 789 596 553 591 554 514 649 779 6 Over 10 years 88 | 136 237 372 359 380 375 341 339 378 424 7 Federal agency securities 1,212 943 1,095 1,110 1,435 1,434 1,521 1,415 1,515 1,349 1,292 Sources of financing3 8 All sources 3,977 6,666 9,433 11,613 14,032 11,739 13,661 14,978 13,945 13,990 13,318 Commercial banks: 9 New York City 1,032 1,621 2,038 2,453 2,567 2,362 2,522 2,694 2,742 2,379 2,382 10 Outside New York City 1,064 1,466 2,038 2,397 2,839 2,050 2,945 3,185 2,946 2,515 2,242 11 Corporations1 459 842 1,523 1,871 2,437 . 1,815 2,545 2,843 2,437 2,100 2,059 12 All other 1,423 2,738 3,835 4,893 6,188 5,512 5,649 6,256 5,821 6,997 6,635 !A11 business corporations except commercial banks and insurance firms and dealer departments of commercial banks against U.S. Govt, companies. and Federal agency securities (through both collateral loans and sales 2 Net amounts (in terms of par values) of securities owned by nonbank under agreements tc repurchase), plus internal funds used by bank dealer dealer firms and dealer departments of commercial banks on a commit- departments to finance positions in such securities. Borrowings against ment, that is, trade-date basis, including any such securities that have been securities held under agreement to resell are excluded where the borrowing sold under agreements to repurchase. The maturities of some repurchase contract and the agreement to resell are equal in amount and maturity, agreements are sufficiently long, however, to suggest that the securities that is, a matched agreement. involved are not available for trading purposes. Securities owned, and hence dealer positions, do not include securities purchased under agree- NOTE.—Averages for positions are based on number of trading days ments to resell. in the period; those for financing, on the number of calendar days in the 3 Total amounts outstanding of funds borrowed by nonbank dealer period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 5 1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars; end of period 1976 Agency 1973 1974 1975 June July Aug. Sept. Nov. 1 Federal and Federally sponsored agencies. 71,591 89,378 97,678 99,853 100,837 101,722 102,454 '103,863 103,418 2 Federal agencies 11,554 12,719 19,046 20,848 21,029 21,453 21,895 22,676 22,645 3 Defense Department1 1,439 1,312 1,220 1,171 1,164 1,152 1,136 1,128 1,117 4 Export-Import Bank2,3 2,625 2,893 7,188 7,578 7,578 7,945 7,728 8,353 8,336 5 Federal Housing Administration4 415 440 564 581 584 '582 578 589 585 6 Government National Mortgage Association Participation Certificates5 4,390 4,280 4,200 4,180 4,145 4,145 4,145 4,145 4,145 7 Postal Service6 250 721 1,750 2,998 2,998 2,998 3,498 3,498 3,498 8 Tennessee Valley Authority 2,435 3,070 3,915 4,255 4,470 4,535 4,713 4,865 4,865 9 United States Railway Association6 3 209 85 90 96 97 98 99 10 Federally sponsored agencies 60,037 76,659 78,632 79,005 79,808 80,269 80,559 '81,187 80,773 11 Federal Home Loan Banks 15,362 21,890 18,900 17,140 17,102 17,113 17,061 ni, 122 16,807 12 Federal Home Loan Mortgage Corporation. 1,784 1,551 1,550 1,550 1,550 1,150 1,150 1,150 1,150 13 Federal National Mortgage Association 23,002 28,167 29,963 29,863 29,845 30,429 30,685 30,656 30,413 14 Federal land banks 10,062 12,653 15,000 16,060 16,566 16,566 16,566 17,124 17,127 15 Federal intermediate credit banks 6,932 8,589 9,254 10,298 10,595 10,687 10,791 10,712 10,669 16 Banks for cooperatives 2,695 3,589 3,655 3,694 3,745 3,919 3,901 4,023 4,207 17 Student Loan Marketing Association7 200 220 310 400 405 405 405 400 400 MEMO: 18 Federal Financing Bank Debt7,8 4,474 17,154 22,411 24,149 25,052 25,888 26,636 27,028 Lending to Federal and Federally sponsored agencies: 19 Export-Import Bank3 . 4,595 4,985 4,985 4,985 4,768 4,768 4,768 20 Postal Service6 500 1,500 2,748 2,748 2,748 3,248 3,248 '3,248 21 Student Loan Marketing Association7 220 310 400 405 405 405 400 395 22 Tennessee Valley Authority 895 1,840 2,180 2,495 2,560 2,738 2,810 2,890 23 United States Railway Association6 3 209 85 90 96 97 98 99 Other lending:9 24 Farmers Home Administration 2,500 7,000 8,800 9,200 9,650 9,650 10,250 10,250 25 Rural Electrification Administration. 566 1,114 1,164 1,215 1,514 1,573 1,320 26 Others 356 1,134 2,099 3,062 3,393 3,468 3,489 4,058 1 Consists of mortgages assumed by the Defense Department between 7 Unlike other Federally sponsored agencies, the Student Loan 1957 and 1963 under family housing and homeowners assistance programs. Marketing Association may borrow from the Federal Financing Bank 2 Includes participation certificates reclassified as debt beginning (FFB) since its obligations are guaranteed by the Department of Health, Oct. 1, 1976. Education, and Welfare. 3 Off-budget August 1971 through Oct. 1, 1976; on-budget there- 8 The FFB, which began operations in 1974, is authorized to purchase after. or sell obligations issued, sold, or guaranteed by other Federal agencies. 4 Consists of debentures issued in payment of Federal Housing Ad- Since FFB incurs debt solely for the purpose of lending to other agencies, ministration insurance claims. Once issued, these securities may be sold its debt is not included in the main portion of the table in order to avoid privately on the securities market. double counting. 5 Certificates of participation issued prior to fiscal 1969 by the Govern- 9 Includes FFB purchases of agency assets and guaranteed loans; ment National Mortgage Association acting as trustee for the Farmers the latter contain loans guaranteed by numerous agencies with the Home Administration; Department of Health, Education, and Welfare; guarantees of any particular agency being generally small. Note that the Department of Housing and Urban Development; Small Business Ad- Farmers Home Administration item consists exclusively of agency assets ministration; and the Veterans Administration. while the Rural Electrification Administration entry contains both 6 Off-budget. agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic NonfinancialS tatistics • February 1977 1.47 NEW SECURITY ISSUES State and Local Government and Corporate Millions of dollars 1976 Type of issue or issuer, 1973 1974 1975 or use 1 May June July Aug. 1 Sept. State and local government 1 All issues, new and refunding1 23,969 24,315 30,607 3,490 3,028 2,691 2,765 2,808 By type of issue: 2 General obligation 12.257 13.563 16,020 1,866 1,689 1,186 1,269 11,,226655 3 Revenue. 10,632 10,212 14,511 1,611 1,324 1,496 1,488 1,538 4 Housing Assistance Administration2 1 022 461 5 U.S. Govt, loans 58 79 76 13 15 9 8 5 By type of issuer: 6 State 4,212 4,784 7,438 824 590 308 669 470 7 Special district and statutory authority 9,505 8,638 12,441 1,400 1,097 1,261 1,162 1,229 8 Municipalities, counties, townships, school districts 10,249 10,817 10,660 1,256 1,331 1,118 930 1,104 9 Issues for new capital, total 22,397 23,508 29,495 3,303 2,807 2,470 2,504 2,590 By use of proceeds: 10 Education 4,311 4,730 4,689 710 414 309 373 356 2,804 1,712 2,208 416 128 36 166 251 12 Utilities and conservation 5,654 5,634 7,209 956 745 1,000 784 747 13 Social welfare 4.588 3,820 4,392 477 423 488 694 767 14 Industrial aid 571 494 445 14 47 66 24 30 4,465 7,118 10,552 730 1,050 571 463 439 Corporate 16 All issues3 32,025 38,311 53,644 4,186 6,418 3,216 3,350 4,803 17 Bonds 21,049 32,066 42,756 2,988 5,023 2,578 2,672 2,249 By type of offering: 18 Public 13,244 25,903 32,583 1,937 3,140 1 ,239 1,565 2,100 19 Private placement 7,802 6,160 10,172 1,051 1,883 1,348 1,107 2,149 By industry group: 20 Manufacturing 4,199 9,867 16,980 1,225 1,321 1,090 742 666 21 Commercial and miscellaneous 1,318 1,845 2,750 185 483 171 319 545 22 Transportation 1,084 1,550 3,439 118 263 118 48 1,205 23 Public utility 5,578 8,873 9,658 643 869 621 663 1,116 24 Communication 3,523 3,710 3,464 12 698 20 209 140 25 Real estate and financial 5,344 6,218 6,469 806 1,389 568 692 577 26 Stocks 10,979 6,247 10,863 1,198 1,395 629 678 554 By type: 27 Preferred 3,337 2,253 3,458 299 360 89 214 136 28 Common 7,642 3,994 7,405 899 1,035 540 464 418 By industry group: 29 Manufacturing 638 544 1,670 484 125 108 282 83 30 Commercial and miscellaneous 1,532 940 11,,447700 136 58 164 69 33 31 Transportation 26 22 11 1 3 13 7 32 Public utility 4,691 3,964 6,235 505 479 311 257 347 3 3 Communication 1,348 217 1,002 8 711 6 3 34 Real estate and financial 2,745 562 488 63 19 40 54 84 1 Par amounts of long-term issues based on date of sale. than $100,000, secondary offerings, undefined or exempted issues as 2 Only bonds sold pursuant to the 1949 Housing Act, which are secured defined in the Securities Act of 1933, employee stock plans, investment by contract requiring the Housing Assistance Administration to make companies other than closed-end, intracorporate transactions, and sales to annual contributions to the local authority. foreigners. 3 Figures, which represent gross proceeds of issues maturing in more SOURCES.—State and local government securities, Securities Industry than 1 year, sold for cash in the United States, are principal amount or Association; corporate securities, Securities and Exchange Commission. number of units multiplied by offering price. Excludes offerings of less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.48 CORPORATE SECURITIES Net Change in Amounts Outstanding Millions of dollars 1975 1976 SSoouurrccee ooff cchhaannggee,, oorr iinndduussttrryy 11997733 11997744 11997755 Ql Q2 Q3 Q4 Ql Q2 Q3 AH issues1 1 New issues 33,559 39,344 53,255 15,211 15,602 9,079 13,363 13,671 14,229 11,385 2 Retirements 11,804 9,935 10,991 2,088 3,211 2,576 3,116 2,315 3,668 2,478 21,754 29,399 42,263 13,123 12,390 6,503 10,247 11,356 10,561 8,907 Bonds and notes 4 New issues 21,501 31,354 40,468 12,759 11,460 6,654 9,595 9,404 10,244 8,701 5 Retirements 8,810 6,255 8,583 1,587 2,336 2,111 2,549 1,403 3,159 1,826 6 Net change: Total 12,691 25,098 31,886 11,172 9,124 4,543 7,047 8,001 7,084 6,875 By industry: 7 Manufacturing 801 7,404 13,219 5,134 4,574 1,442 2,069 2,966 1,529 1,551 8 Commercial and other2 -109 1,116 1,605 373 483 221 528 203 726 610 9 Transportation, including railroad 1,044 341 2,165 1 429 147 1,588 985 488 1,092 10 Public utility 4,265 7,308 7,236 2,653 1,977 1,395 1,211 1,820 1,260 2,109 11 Communication 3,165 3,499 2,980 1,269 810 472 429 498 953 335 12 Real estate and financial 3,523 5,428 4,682 1,742 852 866 1,222 1,530 2,128 1,178 Common and preferred stock 13 New issues 12,057 7,980 12,787 2,452 4,142 2,425 3,768 4,267 3,985 2,684 14 Retirements 2,993 3,678 2,408 501 875 465 567 912 509 652 15 Net change: Total 9,064 4,302 10,377 1,951 3,266 1,960 3,200 3,355 3,477 2,032 By industry: 16 Manufacturing 658 17 1,607 262 500 412 433 838 11,,112200 744 17 Commercial and other2 1,411 -135 1,137 77 490 108 462 88 318 117 18 Transportation, including railroad -93 -20 65 1 7 53 4 5 25 17 19 Public utility 4,509 3,834 6,015 1,569 1,866 1,043 1,537 2,174 1,300 932 20 Communication 1,399 398 1,084 24 359 97 604 47 735 19 21 Real estate and financial 1,181 207 468 18 43 247 160 203 -21 203 1 Excludes issues of investment companies. New issues and retirements exclude foreign sales and include sales of 2 Extractive and commercial and miscellaneous companies. securities held by affiliated companies, special offerings to employees, new stock issues and cash proceeds connected with conversions of bonds NOTE.—Securities and Exchange Commission estimates of cash trans- into stocks. Retirements, defined in the same way, include securities actions only, as published in the Commission's Statistical Bulletin. retired with internal funds or with proceeds of issues for that purpose. 1.49 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1976 IItteemm 11997755 11997766 June July Aug. Sept. Oct. Nov.r Dec. Investment companies excluding money market funds 1 Sales of own shares1 3,302 4,226 321 281 256 338 378 446 661 2 Redemptions of own snares2 3,686 6,802 599 596 536 573 450 419 628 3 Net sales r — 384 2,496 -278 -315 -280 -235 -72 27 33 4 Assets3 42,179 47,537 46,801 45,986 45,457 46,138 44,858 45,369 47,537 5 Cash position4 3,748 2,747 2,679 2,547 2,561 2,507 2,434 2,635 2,747 6 Other 38,431 44,790 44,122 43,439 42,896 43,631 42,424 42,734 44,790 1 Includes reinvestment of investment income dividends. Excludes 4 Also includes all U.S. Govt, securities and other short-term debt reinvestment of capital gains distributions and share issue of conversions securities. from one fund to another in the same group. 2 Excludes share redemption resulting from conversions from one fund NOTE.—Investment Company Institute data based on reports of memto another in the same group. bers, which comprise substantially all open-end investment companies 3 Market value at end of period, less current liabilities. registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Financial Statistics • February 1977 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates 1975 1976 Account 1973 1974 1975 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Profits before tax 115.8 127.6 114.5 94.2 105.8 126.9 131.3 141.1 146.2 150.2 2 Profits tax liability 48.7 52.4 49.2 40.2 44.8 54.8 57.2 61.4 63.5 r65.1 3 Profits after tax 67.1 75.2 65.3 54.0 61.0 72.1 74.2 79.7 82.7 r85.1 4 Dividends 27.8 30.8 32.1 31.7 31.9 32.6 32.2 33.1 34.4 35.4 5 Undistributed profits 39.3 44.4 33.2 22.3 29.1 39.5 42.0 46.6 48.3 49.7 6 Capital consumption allowances1 73.7 81.6 89.4 86.4 87.9 90.5 92.9 94.3 96.2 98.2 7 Net cash flow 113.0 126.0 122.6 108.7 117.0 130.0 134.9 140.9 144.5 147.9 1 With capital consumption adjustment. SOURCE.—U.S. Dept. of Commerce, Survey of Current Business. 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, end of period 1975 1976 AAccccoouunntt 11997711 11997722 11997733 11997744 Q2 Q3 Q4 Ql Q2 Q3 1 Current assets 529.4 574.4 643.2 712.2 703.2 716.5 731.6 753.5 775.4 791.8 2 Cash 53.3 57.5 61.6 62.7 63.7 65.6 68.1 68.4 70.8 71.1 3 U.S. Govt, securities 11.0 10.2 11.0 11.7 12.7 14.3 19.4 21.7 23.3 23.9 4 Notes and accounts receivable 221.1 243.4 269.6 293.2 288.1 298.0 298.2 310.9 321.8 328.5 5 U.S. Govt.1 3.5 3.4 3.5 3.5 3.3 3.3 3.6 3.6 3.7 4.3 6 Other 217.6 240.0 266.1 289.7 284.8 294.7 294.6 307.3 318.1 324.2 7 Inventories 200.4 215.2 246.7 288.0 281.4 279.6 285.8 288.8 295.6 302.1 8 Other 43.8 48.1 54.4 56.6 57.3 59.0 60.0 63.6 63.9 66.3 9 Current liabilities 326.0 352.2 401.0 450.6 434.2 444.7 457.5 465.9 475.9 484.1 10 Notes and accounts payable 220.5 234.4 265.9 292.7 275.9 279.6 288.0 286.9 293.8 291.7 11 U.S. Govt, i 4.9 4.0 4.3 5.2 5.8 6.2 6.4 6.4 6.8 7.0 12 Other 215.6 230.4 261.6 287.5 270.1 273.4 281.6 280.5 287.0 284.7 13 Accrued Federal income taxes 13.1 15.1 18.1 23.2 17.7 19.4 20.7 23.9 22.0 24.9 14 Other 92.4 102.6 117.0 134.8 140.6 145.6 148.8 155.0 160.1 167.5 15 Net working capital 203.6 221.3 242.3 261.5 269.0 271.8 274.1 287.6 299.5 307.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts SOURCE.—Securities and Exchange Commission estimates published offset against each other on corporations' books. in the Commission's Statistical Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A39 1.52 BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates 1975 1976 IInndduussttrryy 11997733 11997744 11997755 Q2 Q3 Q4 Ql Q2 2Q3 2Q4 1 All industries. » 99.74 112.22 112.75 112.46 112.16 111.80 114.72 118.12 122.96 127.03 Manufacturing 2 Durable goods industries 19.25 22.57 21.88 22.59 21.01 21.07 21.63 22.54 24.08 24.80 3 Nondurable goods industries 18.76 23.28 26.13 26.19 26.38 25.75 27.58 28.09 29.73 31.49 Nonmanufacturing 4 Mining 2.74 3.18 3.80 3.78 3.82 3.82 3.83 3.83 3.87 4.02 Transportation: 5 Railroad 1.96 2.56 2.56 2.70 2.75 2.39 2.08 2.64 2.31 1.71 6 Air 2.41 2.00 1.87 1.60 2.12 1.65 1.18 1.44 1.42 1.31 7 Other 1.66 2.09 3.03 2.75 2.99 3.56 3.29 4.16 3.44 3.06 Public utilities: 8 15.94 17.61 16.99 16.41 16.58 17.92 18.56 18.82 19.66 20.28 9 Gas and other 2.76 2.93 3.14 3.11 3.21 3.00 3.36 3.03 3.44 3.80 1 1 0 1 C C o o m mm m e u r n c i i c a a l ti a o n n d other1 2 1 1 2 . .8 4 5 0 2 1 2 3 . . 0 9 5 6 2 1 0 2 . . 6 7 1 6 2 1 0 2 . . 8 5 3 0 2 1 0 2 . .9 3 5 4 2 1 0 2 . . 4 2 4 2 2 1 0 2 . . 6 5 8 4 2 1 0 2 . . 9 6 4 2 | 35 02 36 56 1 Includes trade, service, construction, finance, and insurance. NOTE.—Estimates for corporate and noncorporate business, excluding 2 Anticipated by business. agriculture; real estate operators; medical, legal, educational, and cultural service; and nonprofit organizations. SOURCE.—U.S. Dept. of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • February 1977 1.53 MORTGAGE MARKETS Millions of dollars, except as noted 1976 Item 1974 1975 1976 July Aug. Sept. Oct. Nov. j Dec. 1 Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms:1 1 Purchase price (thous. dollars) 40.1 44.6 48.4 49.4 49.6 50.6 49.0 45.6 50.8 2 Amount of loan (thous. dollars) 29.8 33.3 35.9 36.7 36.8 37.4 36.2 36.0 37.0 3 Loan/price ratio (per cent) 75.8 76.1 75.8 75.8 75.8 75.6 75.3 75.6 74.8 4 Maturity (years) 26.3 26.8 27.2 27.1 27.8 27.7 28.0 27.0 27.8 5 Fees and charges (per cent of loan amount)2. 1.30 15.4 1.44 1.29 1.38 1.42 1.38 1.36 1.39 6 Contract rate (per cent per annum) 8.71 8.75 8.76 8.76 8.79 8.85 8.85 8.83 8.87 Yield (per cent per annum): 7 FHLBB series3 9.37 9.01 8.99 8.97 9.02 9.08 9.07 9.05 9.10 8 HUD series4 9.22 9.10 8.99 9.05 9.05 9.00 9.00 8.95 8.90 SECONDARY MARKETS Yields (per cent per annum) on— 9 FHA mortgages (HUD series)5 9.55 9.19 8.82 8.99 8.93 8.82 8.55 8.45 8.25 10 GNMA securities6 8.62 8.56 8.17 8.37 8.30 8.10 7.98 7.93 7.59 FNMA auctions:7 11 Government-underwritten loans 9.53 9.31 8.92 9.05 8.99 8.88 8.75 8.66 8.45 12 Conventional loans 9.70 9.36 9.12 9.25 9.15 9.11 9.05 9.00 8.84 Activity in secondary markets ! FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings at end of period: 13 Total 29,578 31,824 32,904 32,011 32,069 32,062 32,019 32,929 32,904 14 FHA-insured 19,189 19,732 18,916 19,184 19,180 19,133 19,077 18,986 18,916 15 VA-guaranteed 8,310 9,573 9,212 9,388 9,394 9,366 9,314 9,264 9,212 16 Conventional 2,080 2,519 4,776 3,439 3,496 3,563 3,628 4,679 4,776 Mortgage transactions during period : 17 Purchases 6,953 4,263 ,606 210 277 199 162 1,131 191 18 Sales 4 2 86 J 1 8 Mortgage commitments:8 19 Contracted during period 10,765 6,106 247 584 492 463 480 615 290 20 Outstanding at end of period 7,960 4,126 398 4,245 4,335 3,983 3,672 3,649 3,398 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9 5.492.7 7,042.8 4,929.8 460.1 361.4 221.0 235.5 494.1 56.9 22 Accepted 2,371.4 3,848.3 2.787.2 300.4 214.4 117.9 107.1 221.1 41.5 Conventional loans: 23 Offered 9 1.206.8 1,401.1 2,595.7 221.2 298.8 321.7 297.5 353.3 150.2 24 Accepted 656.4 765.2 1.879.3 187.2 208.7 225.4 215.8 296.9 135.4 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings at end of period:1 o 25 Total 4,586 4,987 4,551 4,310 4,269 4,190 4,162 26 FHA/VA 1,904 1,824 1,713 1,695 1,679 1,660 1,638 27 Conventional 2,682 3,163 2,838 2,614 2,590 2,530 2,523 Mortgage transactions during period : 28 Purchases 2,191 1,716 152 77 88 78 101 29 Sales 52 1,020 84 278 93 116 91 Mortgage commitments:11 30 Contracted during period 4,553 982 39 117 163 171 245 31 Outstanding at end of period 2,390 111 154 175 243 326 452 1 Weighted averages based on sample surveys of mortgages originated securities, assuming prepayment in 12 years on pools of 30-year FHA/VA by major institutional lender groups. Compiled by the Federal Home Loan mortgages carrying the prevailing ceiling rate. Monthly figures are Bank Board in cooperation with the Federal Deposit Insurance Cor- unweighted averages of Monday quotations for the month. poration. 7 Average gross yields (before deduction of 38 basis points for mortgage 2 Includes all fees, commissions, discounts, and "points" paid (by servicing) on accepted bids in Federal National Mortgage Association's the borrower or the seller) in order to obtain a loan. auctions of 4-month commitments to purchase home mortgages, assuming 3 Average effective interest rates on loans closed, assuming prepayment prepayment in 12 years for 30-year mortgages. No adjustments are made at the end of 10 years. for FNMA commitment fees or stock purchase and holding requirements. 4 Average contract rates on new commitments for conventional first Monthly figures are unweighted averages for auctions conducted within mortgages, rounded to the nearest 5 basis points; from Dept. of Housing the month. and Urban Development. 8 Includes some multifamily and nonprofit hospital loan commitments 5 Average gross yields on 30-year, minimum-downpayment, Federal in addition to 1- to 4-family loan commitments accepted in FNMA's Housing Administration-insured first mortgages for immediate delivery free market auction system, and through the FNMA-GNMA Tandem in the private secondary market. Any gaps in data are due to periods of plans. adjustment to changes in maximum permissible contract rates. 9 Mortgage amounts offered by bidders are total bids received. 6 Average net yields to investors on Government National Mortgage 10 Includes participations as well as whole loans. Association-guaranteed, mortgage-backed, fully-modified pass-through 11 Includes conventional and Government-underwritten loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars End of year End of quarter Type of holder, and type of property 1976 11997722 11997733 11997744 1975 Ql Q2 Q3 Q4P 1 All holders 603,417 682,321 742,504 801,546 817,278 838,893 862,607 884,066 2 1- to 4-family 372,793 416,883 449,937 491,678 503,402 519,437 537,372 654,426 3 Multi family 82,572 92,877 99,851 100,348 100,487 100,680 101.082 101,649 4 Commercial 112,294 131,308 146,428 158,644 161,024 164,527 168,144 171,827 5 Farm 35,758 41,253 46,288 50,876 52,365 54,249 56,009 57,813 6 Major financial institutions 450,000 505,400 542,552 581,296 592,061 609,086 626,487 642,995 7 Commercial banks1 99,314 119,068 132,105 136,186 137,986 141,086 143,986 146,586 8 1-to 4-family 57,004 67,998 74,758 77,018 78,218 80,218 81,928 83,402 9 Multifamily 5,778 6,932 7,619 5,915 5,515 5,115 5,040 5,072 10 Commercial 31,751 38,696 43,679 46,882 47,812 49,112 50,251 51,233 11 Farm 4,781 5,442 6,049 6,371 6,441 6,641 6,767 6,879 12 Mutual savings banks 67,556 73,230 74,920 77,249 77, 738 78,735 80,145 81,485 13 1-to 4-family 46,229 48,811 49,213 50,025 50,344 50,989 51,902 52,769 14 Multifamily 10,910 12,343 12,923 13,792 13,876 14,030 14,282 14,524 15 Commercial 10,355 12,012 12,722 13,373 13,456 13,653 13,897 14,127 16 Farm 62 64 62 59 62 63 64 65 17 Savings and loan associations 206,182 231, 733 249,293 278,693 286,556 299,574 312,139 323,393 18 1- to 4-family 167,049 187,750 201,553 224,710 231,337 241,996 252,521 261,952 19 Multifamily 20,783 22,524 23,683 25,417 25,847 26,722 27,468 28,132 20 Commercial 18,350 21,459 24,057 28,566 29,372 30,856 32,150 33,309 21 Life insurance companies 76,948 81,369 86,234 89,168 89,781 89,691 90,217 91,531 22 1-to 4-family 22,315 20,426 19,026 17,590 17,321 16,861 16,458 16,058 23 Multifamily 17,347 18,451 19,625 19,629 19,726 19,374 19,256 19,276 24 Commercial 31,608 36,496 41,256 45,196 45,907 46,456 47,322 48,716 25 Farm 5,678 5,996 6,327 6,753 6,827 7,000 7,181 7,481 26 Federal and related agencies 40,157 46,721 58,320 66,891 67,350 66,165 67,692 67,303 27 Government National Mortgage Assn. 5,113 4,029 4,846 7,438 7,619 5,557 5,068 4,125 28 1- to 4-family 2,513 1,455 2,248 4,728 4,886 3,165 2,486 1,555 29 Multifamily 2,600 2,574 2,598 2,710 2,733 2,392 2,582 2,570 30 Farmers Home Admin 1,019 1,366 1,432 1,109 650 830 1,355 1,405 31 1- to 4-family 279 743 759 208 97 228 754 804 32 Multifamily 29 29 167 215 23 46 143 152 33 Commercial 320 218 156 190 96 151 133 131 34 Farm 391 376 350 496 434 405 325 318 35 Federal Housing and Veterans Admin. 3,338 3,476 4,015 4,970 5,033 5,243 5,470 5,614 36 1- to 4-family 2,199 2,013 2,009 1,990 1,908 1,781 1,767 1,811 37 Multifamily 1,139 1,463 2,006 2,980 3,125 3,462 3,703 3,803 38 Federal National Mortgage Assn... . 19,791 24,175 29,578 31,824 32,182 32,028 32,962 32,904 39 1- to 4-family 17,697 20,370 23,778 25,813 26,262 26,112 27,030 26,934 40 Multifamily 2,094 3,805 5,800 6,011 5,920 5,916 5,932 5,970 41 Federal land banks 9,107 11,071 13,863 16,563 17,264 17,978 18,568 19,125 42 1-to 4-family 13 123 406 549 563 575 586 601 43 Farm 9,094 10,948 13,457 16,014 16,701 17,403 17,982 18,524 44 Federal Home Loan Mortgage Corp., 1,789 2,604 4,586 4,987 4,602 4,529 4,269 4,130 45 1-to 4-family 1,754 2,446 4,217 4,588 4,247 4,166 3,917 3,810 46 Multifamily 35 158 369 399 355 363 352 320 47 Mortgage pools or trusts2 14,404 18,040 23,799 34,138 37,684 41,225 44,960 49,332 48 Government National Mortgage Assn. 5,504 7,890 11,769 18,257 20,479 23,634 26,725 30,572 49 1- to 4-family 5,353 7,561 11,249 17,538 19,693 22,821 25,841 29,583 50 Multifamily 151 329 520 719 786 813 884 989 51 Federal Home Loan Mortgage Corp. 441 766 757 1,598 1,999 2,153 2,506 2,731 52 1-to 4-family 331 617 608 1,349 1,698 1,831 2,141 2,335 53 Multifamily 110 149 149 249 301 322 365 396 54 Farmers Home Admin 8,459 9,384 11,273 14,283 15,206 15,438 15,729 16,029 55 1- to 4-family 5,017 5,458 6,782 9,194 9,516 9,670 9,587 9,785 56 Multifamily 131 138 116 295 542 541 535 535 57 Commercial 867 1,124 1,473 1,948 2,122 2,104 2,291 2,267 58 Farm 2,444 2,664 2,902 2,846 3,026 3,123 3,316 3,442 59 Individuals and others3 98,856 112,160 117,833 119,221 120,183 122,366 123,468 124,436 60 1-to 4-family 45,040 51 ,112 53,331 56,378 57,312 59,024 60,454 61,378 61 Multifamily 21,465 23,982 24,276 22,017 21,738 21,533 20,540 19,910 62 Commercial 19,043 21,303 23,085 22,489 22,259 22,195 22,100 22,044 63 Farm 13,308 15,763 17,141 18,337 18,874 19,614 20,374 21,104 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

A42 Domestic Nonfinancial Statistics • February 1977 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1976 Holder, and type of credit 1974 1975 1976 June July Aug. Sept. Oct. Nov. Dec. Amounts outstanding (end of period) 1 Total 155,384 162,237 178,775 166,664 168,674 171,160 172,918 173,930 175,333 178,775 By holder: 2 Commercial banks 75,846 78,703 85,379 80,850 81,930 82,961 83,714 84,152 84,278 85,379 3 Finance companies........ 36,208 36,695 39,642 37,490 38,026 38,398 38,575 38,809 39,129 39,642 4 Credit unions. 22,116 25,354 30,546 27,842 28,234 28,956 29,600 29,711 30,053 30,546 5 Retailers1 17,933 18,002 19,178 16,633 16,660 16,911 17,012 17,205 17,726 19,178 6 Others2 3,281 3,483 4,030 3.849 3,824 3,934 4,017 4,053 4,147 4,030 By type of credit: 7 Automobile 50,392 53,028 60,498 56,667 57,659 58,665 59,270 59,717 60,002 60,498 8 Commercial banks 30,994 31,534 35,313 33,269 33,877 34,414 34,701 35,009 35,095 35,313 9 Purchased 18,687 18,353 19,642 18,912 19,151 19,404 19,495 19,611 19,575 19,642 10 Direct 12,306 13,181 15,671 14,358 14,726 15,010 15,206 15,398 15,520 15,671 11 Finance companies 10,618 11,439 13,059 12,333 12,573 12,748 12,808 12,901 12,957 13,059 12 Credit unions 8,414 9,653 11,633 10,601 10,749 11,024 11,270 11,311 11,442 11,633 13 Others 366 402 493 464 460 479 491 496 508 493 Mobile homes: 14 Commercial banks 8,972 8,704 8,233 8,390 8,384 8,379 8,340 8,294 8,254 8,233 15 Finance companies....... 3,524 3,451 3,277 3,343 3,333 3,323 3,319 3,309 3,295 3,277 16 Home improvement 7,754 8,004 8,773 8,367 8,452 8,562 8,665 8,726 8,790 8,773 17 Commercial banks 4,694 4,965 5,381 5,129 5,192 5,263 5,318 5,359 5,388 5,381 Revolving credit: 18 Bank credit cards 8,281 9,501 11,075 9,531 9,725 9,924 10,153 10,232 10,329 11,075 19 Bank check credit 2,797 2,810 3,010 2,805 2,835 2,870 2,922 2,933 2,935 3,010 20 All other 73,664 76,738 83,910 77,561 78,286 79,438 80,249 80,719 81,728 83,910 21 Commercial banks, total, 20,108 21,188 22,368 21,726 21,917 22,112 22,280 22,325 22,277 22,368 22 Personal loans 13,771 14,629 15,606 15,034 15,148 15,308 15,450 15,534 15,517 15,606 23 Finance companies, total 21,717 21,655 23,178 21,675 21,983 22,192 22,316 22,469 22,748 23,178 24 Personal loans 16,961 17,681 19,043 17,811 18,079 18,275 18,371 18,509 18,773 19,043 25 Credit unions 13,037 14,937 17.993 16,402 16,635 17,060 17,438 17,505 17,706 17,993 26 Retailers 17,933 18,002 19,178 16,633 16,660 16,911 17,012 17,205 17,726 19,178 27 Others 869 956 1,193 1,125 1,091 1,163 1,203 1,215 1,271 1,193 Net change (during period)3 28 Total 8,952 6,843 16,539 1,330 1,303 1,403 1,481 1,564 1,243 1,823 By holder: 29 Commercial banks 3,975 2,851 6,678 409 619 518 697 671 381 913 30 Finance companies 806 483 2,946 230 264 169 233 317 245 364 31 Credit unions 2,507 3,238 5,192 482 365 386 483 280 395 537 32 Retailers 1,538 69 1,176 214 116 183 24 263 98 64 33 Others 126 202 547 -5 -61 148 45 33 124 -55 By type of credit: 34 Automobile 327 2,631 7,470 526 556 621 605 528 477 1,013 35 Commercial banks -508 535 3,779 229 327 377 376 350 221 652 36 Purchased -310 -340 1,289 32 60 159 125 117 70 330 37 Direct -198 875 2,490 197 267 218 251 233 151 322 38 Finance companies -100 821 1,620 116 108 62 28 77 98 146 39 Credit unions 958 1,239 1,980 186 135 136 172 105 144 207 40 Other -23 36 91 -4 -13 46 28 -4 14 8 Mobile homes: 41 Commercial banks 632 -268 -471 -42* -28 -35 -53 -56 -43 32 42 Finance companies 168 -73 -174 -9 -16 -16 -16 -16 -16 43 Home improvement 804 248 768 79 19 39 65 73 103 73 44 Commercial banks 611 271 416 29 22 25 43 44 55 54 Revolving credit: 45 Bank credit cards 1,443 1,220 1,576 98 171 86 166 123 71 -33 46 Bank check credit 543 14 199 14 27 -6 17 27 6 7 47 All other 5,036 3,072 7,172 655 567 714 698 884 645 747 48 Commercial banks, total. 1,255 1,080 1,180 81 101 71 148 183 72 199 49 Personal loans 898 858 977 86 70 46 108 161 47 148 50 Finance companies, total 803 -64 1,523 115 170 126 223 258 163 236 51 Personal loans 479 717 1,362 95 143 106 198 237 161 113 52 Credit unions 1,473 1,900 3,056 282 220 240 297 166 239 313 53 Retailers 1,538 69 1,176 214 116 183 24 263 98 64 54 Others -33 87 237 -38 -39 96 5 15 73 -66 1 Excludes 30-day charge credit held by retailers, oil and gas companies, NOTE.—Total consumer noninstalment credit outstanding—credit and travel and entertainment companies. scheduled to be repaid in a lump sum, including single-payment loans, 2 Mutual savings banks, savings and loan associations, and auto dealers. charge accounts, and service credit—amounted to $39.0 billion at the 3 Net change equals extensions minus liquidations(repayments, charge- end of 1976, $35.0 billion at the end of 1975, and $33.4 billion at the end offs, and other credits); figures for all months are seasonally adjusted. of 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A43 1.56 CONSUMER INSTALMENT CREDIT Extensions and Liquidations Millions of dollars 1976 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 1974 1975 1976 June July Aug. Sept. Oct. Nov. Dec. Extensions1 1 Total 160,008 163,483 186,221 15,592 15,240 15,685 15,775 16,055 15,763 16,702 By holder: 2 Commercial banks 72,605 77,131 88,666 7,289 7,358 7,487 7,546 7,618 7,486 8,182 3 Finance companies 35,644 32,582 35,956 2,986 2,861 2,965 3,072 3,148 3,059 3,157 4 Credit unions 22,403 24,151 28,829 2,456 2,329 2,313 2,424 2,350 2,395 2,688 5 Retailers2 27,034 27,049 29,569 2,650 2,533 2,548 2,463 2,673 2,467 2,480 6 Others 3 2,322 2,570 3,201 211 159 372 271 266 356 194 By type of credit: 7 Automobile 43,209 48,103 55,807 4,600 4,477 4,712 4,769 4,587 4,632 5,263 8 Commercial banks 26,406 28,333 32,687 2,660 2,680 2,162 2,846 2,770 2,691 3,170 9 Purchased 15,576 15,761 17,600 1,386 1,417 1,480 1,511 1,479 1,426 1,723 10 Direct 10,830 12,572 15,087 1,274 1,263 1,282 1,335 1,291 1,265 1,446 11 Finance companies 8,630 9,598 11,210 935 891 937 891 904 927 992 12 Credit unions 7,788 9,702 11,336 968 879 928 963 875 957 1,051 13 Others 385 470 574 36 27 84 69 37 57 51 Mobile homes: 14 Commercial banks 3,486 2,681 2,449 204 223 186 200 178 207 267 15 Finance companies 1,413 111 690 68 59 54 53 59 54 53 16 Home improvement 4,571 4,398 5,034 410 381 400 434 463 464 461 17 Commercial banks 2,789 2,122 3,036 235 240 242 266 282 216 288 Revolving credit: 18 Bank credit cards 17,098 20,428 25,481 2,088 2,152 2,183 2,165 2,198 2,181 2,217 19 Bank check credit A,221 4,024 4,832 435 401 413 375 413 410 426 20 All other 86,004 83,079 91,928 7,786 7,546 7,737 7,779 8,158 7,815 8,015 21 CQmmercial banks, total 18,599 18,944 20,182 1,666 1,661 1,702 1,693 1,777 1,721 1,815 22 Personal loans 13,176 13,386 14,463 1,221 1,174 1,197 1,193 1,286 1,238 1,317 23 Finance companies, total 25,316 22,135 24,014 1,981 1,907 1 ,970 2,125 2,182 2,072 2,108 24 Personal loans 16,691 17,333 19,610 1,641 1,535 1,607 1,745 1,776 1,696 1,688 25 Credit unions 14,228 13,992 16,911 1,440 1,403 1,338 1,410 1,426 1,389 1,582 26 Retailers 27,034 27,049 29,569 2,650 2,533 2,548 2,463 2,673 2,467 2,480 27 Others 827 959 1,253 50 43 180 87 100 166 30 Liquidations1 28 Total 151,056 156,640 169,682 14,261 13,937 14,282 14,294 14,491 14,520 14,879 By holder: 29 Commercial banks 68,630 74,280 81,988 6,879 6,739 6,970 6,849 6,947 7,105 7,269 30 Finance companies 34,838 32,099 33,010 2,756 2,597 2,796 2,839 2,831 2,814 2,793 31 Credit unions 19,896 20,913 23,637 1,974 1,964 1,927 1,941 2,070 2,000 2,151 32 Retailers2 25,496 26,980 28,393 2,436 2,417 2,365 2,439 2,410 2,369 2,416 33 Others 3 2,196 2,368 2,654 216 220 224 226 233 232 249 By type of credit: 34 Automobile 42,883 45,472 48,337 4,074 3,922 4,090 4,165 4,059 4,155 4,250 35 Commercial banks 26,915 27,798 28,908 2,432 2,354 2,385 2,470 2,420 2,470 2,517 36 Purchased 15,886 16,101 16,311 1 ,354 1,357 1,321 1,386 1,363 1,356 1,393 37 Direct 11,029 11,697 12,597 1,077 996 1,064 1,084 1,058 1,114 1,124 38 Finance companies 8,730 8,777 9,590 819 784 874 862 827 829 846 39 Credit unions 6,830 8,463 9,356 783 745 792 791 770 813 843 40 Others 408 434 483 40 39 39 42 42 43 43 Mobile homes: 41 Commercial banks 2,854 2,949 2,921 247 251 222 253 233 250 234 42 Finance companies 1,245 844 864 68 68 70 69 74 70 70 43 Home improvement 3,767 4,150 4,266 330 362 361 369 390 360 388 44 Commercial banks 2,178 2,451 2,620 206 218 216 223 239 221 234 Revolving credit: 45 Bank credit cards 15,655 19,208 23,905 1,990 1,981 2,097 2,000 2,074 2,110 2,250 46 Bank check credit 3,684 4,010 4,632 421 374 419 358 386 404 419 47 All other 80,969 80,007 84,757 7,132 6,979 7,023 7,081 7,274 7,170 7,268 48 Commercial banks, total, 17,345 17,864 19,002 1,585 1,560 1,631 1,545 1,594 1,649 1,615 49 Personal loans 12,278 12,528 13,486 1,135 1,104 1,151 1,085 1,125 1,191 1,169 50 Finance companies, total 24,513 22,199 22,491 1,866 1,737 1,844 1,902 1,924 1,909 1,872 51 Personal loans 16,212 16,616 18,248 1,546 1,392 1,501 1,547 1,539 1,535 1,575 52 Credit unions 12,755 12,092 13,855 1,158 1,183 1,098 1,113 1,260 1,150 1,268 53 Retailers 25,496 26,980 28,393 2,436 2,417 2,365 2,439 2,410 2,369 2,416 54 Others 860 872 1,016 87 82 85 82 86 93 96 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

A44 Domestic Nonfinancial Statistics • February 1977 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-year figures are at seasonally adjusted annual rates 1975 1976 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11996699 11997700 11997711 11997722 11997733 11997744 11997755 HI H2 HI 1 NONFINANCIAL SECTORS 93.5 100.7 151.0 176.9 197.6 188.8 210.4 184.2 236.5 242.0 1 2 Excluding equities 89.6 94.9 139.6 166.4 190.0 185.0 200.3 173.8 226.9 228.3 2 By sector and/or instrument: 3 U.S. Govt -3.7 11.9 24.7 15.2 8.3 12.0 85.2 80.8 89.6 73.8 3 4 Public debt securities -1.3 12.9 26.0 14.3 7.9 12.0 85.8 82.0 89.7 73.9 4 5 Agency issues and mortgages -2.4 -1.0 -1.3 1.0 .4 * -.6 -1.2 _ 1 -.1 5 6 All other nonfinancial sectors 97.1 88.8 126.3 161.7 189.4 176.8 125.2 103.4 146.9 168.2 6 7 Corporate equities 3.9 5.8 11.5 10.5 7.7 3.8 10.0 10.5 9.6 13.7 7 8 Debt instruments 93.3 83.0 114.8 151.2 181.7 173.0 115.1 93.0 137.3 154.5 8 9 Private domestic nonfinancial sectors 93.5 86.1 121.1 157.7 183.1 161.6 112.2 94.9 129.4 152.5 9 10 Corporate equities 3.4 5.7 11.4 10.9 7.9 4.1 9.9 10.3 9.5 13.3 10 11 Debt instruments 90.1 80.4 109.7 146.8 175.3 157.5 102.3 84.6 119.9 139.2 11 12 Debt capital instruments 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 9.9 11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 18.4 13 14 Corporate bonds 12.0 19.8 18.8 12.2 9.2 19.7 27.2 33.4 21.0 2200..77 14 Mortgages: 15 Home 18.1 14.4 28.6 42.6 46.4 34.6 40.8 33.5 48.1 54.4 15 16 Multifamily residential 4.9 6.9 9.7 12.7 10.4 7.0 -.1 * -.2 .9 16 17 Commercial 5.1 7.1 9.8 16.4 18.9 15.1 10.9 8.7 13.1 11.5 17 18 Farm 1.8 .8 2.4 3.6 5.5 5.1 5.2 5.6 4.8 5.9 18 19 Other debt instruments 37.6 20.1 22.8 44.0 68.6 56.3 1.0 -12.8 14.8 27.4 19 20 Consumer credit 10.4 5.9 11.6 18.6 21.7 9.8 8.5 1.1 16.0 19.4 20 21 Bank loans n.e.c 15.5 6.7 6.5 18.1 34.8 26.2 -14.5 -23.5 -5.5 --1122..77 21 22 Open market paper 1.8 2.6 -.4 .8 2.5 6.8 -2.2 -.2 -4.2 88..11 22 23 Other 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 93.5 86.1 121.1 157 7 183.1 161.6 112.2 94.9 129.4 152.5 24 25 State and local governments 10.7 11.3 17.8 15.2 14.8 18.6 14.9 13.9 15.9 16.7 25 26 Households 33.8 25.3 42.1 64.8 73.5 45.2 49.7 39.0 60.4 72.8 26 27 Farm 3.1 2.3 4.5 5.8 9.7 7.9 9.4 9.4 9.4 11.0 27 28 Nonfarm noncorporate 7.5 5.7 10.3 13.1 12.3 6.7 1.2 -.8 3.2 5.2 28 29 Corporate 38.4 41.5 46.4 58.8 72.9 83.1 37.1 33.5 40.6 46.8 29 30 Foreign 3.7 2.7 5.2 4.0 6.1 15.3 13.0 8.5 17.4 15.7 30 31 Corporate equities .5 .1 * -.4 -.2 -.2 .1 .1 . 1 .3 31 32 Debt instruments 3.2 2.7 5.2 4.4 6.4 15.5 12.8 8.4 17.3 15.3 32 33 Bonds 1.0 .9 .9 1.0 1.0 2.1 6.2 5.7 6.7 1.6 33 34 Bank loans n.e.c -.2 -.3 2.1 3.0 2.8 4.7 4.0 .6 7.4 33..77 4 35 Open market paper .3 .8 .3 -1.0 .9 7.1 — i -1.2 1.0 ..88 35 36 U.S. Govt, loans 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 .5 2.8 3.2 -.3 -1.7 -4.6 2.9 ..55 55..22 1100..88 3377 Totals net of changes in U.S. Govt, cash balance: 38 Total funds raised 93.0 97.9 147.8 177.2 199.3 193.4 207.5 183.7 231.3 231.2 38 39 By U.S. Govt -4.1 9.1 21.6 15.5 9.9 16.6 82.3 80.3 84.4 63.0 39 40 FINANCIAL SECTORS 35.2 15.8 17.0 29.1 56.7 43.0 14.8 15.1 14.6 29.7 40 By instrument: 41 U.S. Govt, related 9.5 9.8 5.9 8.4 19.9 23.1 13.5 14.0 13.1 8.0 41 42 Sponsored credit agencies 9.1 8.2 1.1 3.5 16.3 16.6 2.3 1.4 3.3 3.9 42 43 Mortgage pool securities .7 1.6 4.8 4.9 3.6 5.8 10.3 11.5 9.2 14.2 43 44 Loans from U.S. Govt -.3 7 9 1 1 .6 * 44 45 Private financial sectors 25.8 6.0 11.1 20.7 36.8 19.9 1.3 l'.l 1.4 11.7 45 46 Corporate equities 6.3 4.8 3.5 2.8 1.5 1.0 1.2 1.2 1.2 .1 46 47 Debt instruments 19.5 1.2 7.6 18.0 35.3 18.9 .1 * .3 11.0 47 48 Corporate bonds .8 2.7 3.8 5.1 3.5 2.1 2.9 3.2 2.6 6.1 48 49 Mortgages .2 .7 2.1 1.7 -1.2 -1.3 2.3 1.2 3.4 1.2 49 50 Bank loans n.e.c 1.5 * 3.5 6.8 14.0 7.5 -3.9 -4.7 -3.2 -2.8 50 51 Open market paper and Rp's 12.9 -3.5 .9 4.4 11.8 3.9 2.8 7.6 -1.9 8.7 51 52 Loans from FHLB's 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -7.3 -.6 -2.3 52 By sector: 53 Sponsored credit agencies 8.8 8.2 1.1 3.5 16.3 17.3 3.2 2.5 4.0 3.9 53 54 Mortgage pools .7 1.6 4.8 4.9 3.6 5.8 10.3 11.5 9.2 14.2 54 55 Private financial sectors 25.8 6.0 11.1 20.7 36.8 19.9 1.3 1.1 1.4 11.7 55 56 Commercial banks 2.4 -2.0 2.4 4.8 8.1 -1.1 1.7 6.4 -3.0 11.3 56 57 Bank affiliates 4.3 -1.9 -.4 .7 2.2 3.5 .3 .9 -.3 -1.3 57 58 Foreign banking agencies .2 .1 1.6 .8 5.1 2.9 -.3 -.9 .2 -1.5 58 59 Savings and loan associations 4.1 1.8 —. 1 2.0 6.0 6.3 -2.1 -7.8 3.6 -.7 59 60 Other insurance companies .5 .4 .6 .5 .5 .9 .9 .9 1.0 1.0 60 61 Finance companies 7.8 2.6 2.7 6.2 9.4 4.5 .7 -.8 2.1 6.7 61 62 REIT's 1.5 2.2 2.9 6.3 6.5 1.1 -1.9 -1.6 -2.2 -1.9 62 63 Open-end investment companies 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .1 -1.1 63 64 Monev market funds 2.4 1.3 2.6 * —. 7 64 65 ALL SECTORS, by instrument 128.7 116.4 168.1 206.0 254.3 231.8 225.2 199.4 251.1 271.7 65 66 Investment company shares 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 J -1.1 66 67 Other corporate equities 5.2 7.7 13.7 13.8 10.4 5.4 10.4 10.2 10*. 7 15.4 67 68 Debt instruments 118.6 105.9 153.1 192.8 245.2 227.0 214.0 187.7 240.3 257.4 68 69 U.S. Govt, securities 6.2 21.7 30.7 23.7 28.3 34.5 98.0 93.6 102.4 91.8 69 70 State and local obligations 9.9 11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 18.4 70 71 Corporate and foreign bonds 13.8 23.3 23.5 18.4 13.6 23.9 36.3 42.3 30.3 34.4 71 72 Mortgages 30.7 29.9 52.5 76.8 79.9 60.5 59.0 49.1 69.0 74.1 72 73 Consumer credit 10.4 5.9 11.6 18.6 21.7 9.8 8.5 1.1 16.0 19.4 73 74 Bank loans n.e.c 16.8 6.3 12.1 27.8 51.6 38.4 -14.4 -27.6 -1.2 -11.8 74 75 Open market paper and Rp's 15.1 -.1 .8 4.1 15.2 17.8 .5 6.2 -5.1 17.7 75 76 Other loans 15.8 7.7 4.2 8.0 18.5 22.5 8.7 6.8 10.7 13.5 76 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

Flow of Funds A45 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, unless noted otherwise; half-year figures are at seasonally adjusted annual rates 1975 1976 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11996699 11997700 11997711 11997722 11997733 11997744 11997755 HI H2 HI 1 Tota n l o f n u f n in d a s n a c d ia v l a n se c c e t d o r in s credit markets to 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 16.5 29.2 43.4 19.8 34.2 52.7 4444..22 5511..99 3366..66 5566..22 2 3 U.S. Govt, securities .5 15.1 34.4 7.6 9.6 11.9 22.5 32.6 12.4 26.9 3 4 Residential mortgages 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 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -7.3 -.6 -2.3 5 6 Other loans and securities 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 U.S. Govt 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 9.4 11.1 5.2 9.2 21.4 25.6 14.5 15.9 13.2 20.0 8 9 Monetary authorities 4.2 5.0 8.9 .3 9.2 6.2 8.5 7.0 10.1 13.7 9 10 Foreign -.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 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 82.5 75.5 102.1 155.0 175.7 155.3 169.6 135.9 203.4 193.8 12 13 U.S. Govt, securities 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 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 12.5 20.0 19.5 13.1 10.0 20.9 32.8 38.9 26.7 27.3 15 16 Residential mortgages 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 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 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 57.4 77.0 109.7 149.4 163.8 126.2 116.0 97.7 134.3 139.2 19 20 Commercial banks 18.6 35.0 50.6 70.5 86.5 64.6 27.6 13.5 41.7 22.1 20 21 Savings institutions 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 13.3 17.1 14.2 17.8 23.8 30.1 39.3 36.4 42.3 43.9 22 23 Other finance 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 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 2.3 60.7 89.4 100.9 86.4 69.4 90.5 90.3 90.6 90.9 25 26 Credit market borrowing 19.5 1.2 7.6 18.0 35.3 18.9 .1 * .3 11.0 26 27 Other sources 35.6 15.1 12.6 30.5 42.1 37.8 25.4 7.4 43.4 37.3 27 28 Foreign funds 9.6 -8.1 -3.9 5.3 6.9 14.5 -.4 -5.7 5.0 -.1 28 29 Treasury balances * 2.9 2.2 .7 -1.0 -5.1 -1.7 -3.5 . 1 3.5 29 30 Insurance and pension reserves 10.8 13.3 8.6 11.6 18.4 26.0 29.9 27.4 32.5 32.7 30 31 Other, net 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 44.6 — .3 * 23.6 47.2 48.0 53.7 38.1 69.4 65.6 32 33 U.S. Govt, securities 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 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 5.4 9.5 8.3 4.2 .9 5.3 10.4 13.6 7.2 6.0 35 36 Commercial paper 10.0 -5.1 -1.1 3.0 12.5 4.6 3.1 3.5 2.7 10.2 36 37 Other 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 5.1 64.2 92.8 105.3 90.3 75.7 96.7 95.7 97.7 95.1 38 39 Time and saving accounts -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 -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 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 8.4 16.6 39.6 45.4 28.4 22.4 59.2 63.0 55.4 66.0 42 43 Money 7.3 8.9 13.7 21.6 14.1 8.3 11.9 20.7 3.0 12.7 43 44 Demand deposits 4.5 5.4 10.4 17.2 10.2 2.0 5.7 15.3 -4.0 8.5 44 45 Currency 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 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) 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) 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 9.4 2.2 22.5 13.7 7.6 25.7 5.7 8.5 3.0 13.0 49 MEMO: Corporate equities not included above 50 Total net issues 10.1 10.5 15.0 13.3 9.2 4.9 11.2 11.7 10.8 14.3 50 51 Mutual fund shares 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .1 -1.1 51 52 Other equities 5.2 7.7 13.7 13.8 10.4 5.4 10.4 10.2 10.7 15.4 52 53 Acquisitions by financial institutions 13.0 10.6 17.8 15.3 13.3 5.5 8.3 9.2 7.4 11.7 53 54 Other net purchases -2.9 -2.9 -2.1 -4.1 -.7 2.9 2.4 3.4 2.6 54 "-1 NOTES BY LINE NO. 29. Demand deposits at commercial banks. 1. Line 2 of p. A-44. 30. Excludes net investment of these reserves in corporate equities. 2. Sum of lines 3-6 or 7-10. 31. Mainly retained earnings and net miscellaneous liabilities. 6. Includes farm and commercial mortgages. 32. Line 12 less line 19 plus line 26. 11. Credit market funds raised by Federally sponsored credit agencies. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 Included below in lines 13 and 33. Includes all GNMA-guaranteed includes mortgages. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 plus 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes 50. 52. Includes issues by financial institutions. line 18. 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

A46 Domestic Nonfinancial Statistics • February 1977 2.10 SELECTED MEASURES OF NONFINANCIAL BUSINESS ACTIVITY 1967 = 100 except as noted; monthly and quarterly data are seasonally adjusted 1976 1977 Measure 1974 1975 1976p July Aug. Sept. Oct. Nov. Dec.? Jan.e 1 Industrial production 129.3 117.8 129.8 130.1 130.7 131.3 130.8 130.4 131.7 132.8 131.5 Market groupings: Products, total 129.3 119.3 129.3 129.5 129.8 130.3 129.7 129.6 131.6 133.6 132.5 Final, total 125.1 118.2 127.3 127.6 127.6 128.3 127.4 127.4 129.7 131.7 130.4 Consumer goods. 128.9 124.0 136.8 137.8 136.8 137.5 136.2 136.9 139.1 141.6 139.5 Equipment 120.0 110.2 114.3 113.8 114.9 115.7 115.2 114.4 116.8 118.0 117.9 Intermediate 135.3 123.1 136.9 135.9 137.6 137.8 138.7 138.3 139.1 140.2 140.1 Materials 132.4 115.5 130.5 131.1 132.2 133.0 132.5 131.6 131.5 131.8 130.2 Industry groupings: Manufacturing... 129.4 116.3 129.4 130.2 131.0 131.6 130.7 129.9 131.5 132.5 130.9 Capacity utilization (per cent)1 in: 9 Manufacturing 84.2 73.6 80.1 80.5 80.9 81.1 80.4 79.7 80.6 80.9 79.8 10 Industrial materials industries 87.7 73.6 80.3 80.8 81.2 81.6 81.0 80.3 80.1 80.0 79.0 11 Construction contracts2. 173.9 162.3 190.2 187.0 186.0 186.0 182.0 237.0 186.0 183.0 Nonagricultural employment:3 12 Total 119.1 116.9 120.6 r120.5 120.7 120.9 121.4 r121.2 121.6 122.0 122.3 13 Goods-producing, total 106.2 96.9 100.3 r100.4 100.3 100.2 100.8 100.2 100.9 101.1 101.2 14 Manufacturing, total 103.1 94.3 97.5 97.4 97.4 97.6 98.2 97.4 98.0 98.2 98.7 15 Manufacturing, production-worker. 102.1 91.3 95.2 95.2 95.2 95.2 96.1 94.9 95.6 95.8 96.5 16 Service-producing 126.1 127.8 131.7 131.5 131.9 132.2 132.6 132.7 132.9 '133.4 133.8 Personal income:4 17 Total 184.1 199.4 218.7 220.4 221.1 222.1 224.9 226.8 229.9 Wages and salary disbursements: 18 Total 178.9 188.7 206.6 208.8 209.9 211.3 213.2 215.6 217.6 19 Manufacturing 157.6 157.9 176.1 177.5 178.1 178.9 179.1 182.4 184.0 20 Disposable personal income4. 180.5 198.5 218.1 217.0 218.2 21 Retail sales 5 171.2 186.1 206.5 206.3 205.4 208.8 206.7 206.7 208.8 212.3 220.6 Prices:6 22 Consumer. 147.7 161.2 170.5 170.1 171.1 171.9 172.6 173.3 173.8 174.3 23 Wholesale. 160.1 174.1 182.9 183.1 184.3 183.7 184.7 185.2 185.6 187.1 188.0 1 Ratios of indexes of production to indexes of capacity. Based on data 5 Based on Bureau of Census data published in Survey of Current from Federal Reserve, McGraw-Hill Economics Department, and De- Business (U.S. Dept. of Commerce). partment of Commerce. 6 Data without seasonal adjustment, as published in Monthly Labor 2 Index of dollar value of total construction contracts, including Review (U.S. Dept. of Labor). Seasonally adjusted data for changes in residential, nonresidential, and heavy engineering, from McGraw-Hill the price indexes may be obtained from the Bureau of Labor Statistics, Informations Systems Company, F. W. Dodge Division. U.S. Dept. of Labor. 3 Based on data in Employment and Earnings (U.S. Dept. of Labor). 7 Bureau of Labor Statistics revised these figures back to July 1975. Series covers employees only, excluding personnel in the Armed Forces. 4 Based on data in Survey of Current Business (U.S. Dept. of Com- NOTE.—Basic data (not index numbers) for series mentioned in notes merce). Series for disposable income is quarterly. 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be found in the Survey of Current Business (U.S. Dept. of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capacity and Manpower A47 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1976 1976 1976 Series Ql Q2 Q3 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r Output Capacity Utilization rate (1967 = 100) (per cent of 1967 output) (per cent) 1 Manufacturing 126.7 129.4 131.1 131.3 160.4 161.3 162.3 163.2 79.0 80.2 80.8 80.4 2 Primary processing 133.4 136.6 139.3 138.7 166.2 167.5 168.8 170.1 80.2 81.5 82.5 81.6 3 Advanced processing 122.9 125.2 126.3 127.4 157.2 158.0 158.8 159.6 78.2 79.2 79.6 79.8 4 Materials 126.9 130.3 132.6 131.6 160.6 161.7 163.1 164.3 79.0 80.6 81.3 80.1 5 Durable goods 120.8 126.1 130.7 128.3 164.4 165.5 166.7 167.8 73.5 76.2 78.4 76.4 6 Basic metal 103.7 110.8 117.1 108.2 142.4 143.1 143.7 144.4 72.8 77.4 81.5 74.9 7 Nondurable goods 145.0 146.9 146.6 147.3 169.4 171.0 172.5 174.1 85.6 85.9 85.0 84.6 8 Textile, paper, and chemical 150.2 151.6 151.2 152.0 176.5 178.3 180.1 182.0 85.1 85.0 84.0 83.5 9 Textile 116.5 115.5 114.4 111.4 138.2 139.0 139.8 140.6 84.3 83.1 81.8 79.3 10 Paper 128.9 132.5 131.9 130.7 144.6 145.7 146.7 147.9 89.1 90.9 89.9 88.4 11 Chemical 173.6 175.3 175.1 178.3 206.2 208.7 211.2 213.7 84.2 84.0 82.9 83.5 12 Energy 119.7 120.0 119.9 120.8 140.3 141.5 142.7 143.9 85.3 84.8 84.0 83.9 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted; exceptions noted 1976 1977 CCaatteeggoorryy 11997744 11997755 rr 11997766 July' Aug.r Sept. Oct.r Nov. J Dec. Jan. Household survey data 1111 NNNNoooonnnniiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnaaaallll ppppooooppppuuuullllaaaattttiiiioooonnnn1111 150,827 153,449 156,048 156,142 156,367 156,595 156,788 157,006 157,176 157,381 2222 LLLLaaaabbbboooorrrr ffffoooorrrrcccceeee ((((iiiinnnncccclllluuuuddddiiiinnnngggg AAAArrrrmmmmeeeedddd FFFFoooorrrrcccceeeessss))))1111 93,240 94,793 96,917 97,329 97,498 97,387 97,449 98,020 98,106 97,649 3333 CCCCiiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 91,011 92,613 94,773 95,189 95,351 95,242 95,302 95,871 95,960 95,516 EEEEmmmmppppllllooooyyyymmmmeeeennnntttt:::: 4444 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll iiiinnnndddduuuussssttttrrrriiiieeeessss2222 82,443 81,403 84,188 84,450 84,462 84,516 84,428 84,972 85,184 85,468 5555 AAAAggggrrrriiiiccccuuuullllttttuuuurrrreeee 3,492 3,380 3,297 3,333 3,372 3,278 3,310 3,248 3,257 3,090 UUUUnnnneeeemmmmppppllllooooyyyymmmmeeeennnntttt:::: 6666 NNNNuuuummmmbbbbeeeerrrr 5,076 7,830 7,288 7,406 7,517 7,448 7,564 7,651 7,517 6,958 7777 RRRRaaaatttteeee ((((ppppeeeerrrr cccceeeennnntttt ooooffff cccciiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee)))) 5.6 8.5 7.7 7.8 7.9 7.8 7.9 8.0 7.8 7.3 8888 NNNNooootttt iiiinnnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 58,655 59,130 56,971 58,813 58,869 59,208 59,339 58,986 59,071 59,732 Establishment survey data 9999 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll ppppaaaayyyyrrrroooollllllll eeeemmmmppppllllooooyyyymmmmeeeennnntttt3333 78,413 77,050 79,443 79,513 79,618 79,918 79,819 80,106 80,322 80,553 11110000 MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 20,046 18,347 18,958 18,945 18,979 19,100 18,941 19,065 19,100 19,194 11111111 MMMMiiiinnnniiiinnnngggg 694 745 783 791 752 798 800 805 808 814 11112222 CCCCoooonnnnttttrrrraaaacccctttt ccccoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn 3,957 3,515 3,593 3,608 3,579 3,565 3,582 3,619 3,606 3,541 11113333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn aaaannnndddd ppppuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttiiiieeeessss.... 4,696 4,499 4,508 4,508 4,501 4,528 4,506 4,519 4,538 4,550 11114444 TTTTrrrraaaaddddeeee 17,017 16,997 17,694 17,737 17,764 17,839 17,824 17,808 17,895 17,975 11115555 FFFFiiiinnnnaaaannnncccceeee 4,208 4,222 4,315 4,312 4,312 4,338 4,359 4,381 4,402 4,419 11116666 SSSSeeeerrrrvvvviiiicccceeee 13,617 14,008 14,645 14,664 14,751 14,798 14,819 14,873 14,918 15,004 11117777 GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 14,177 15,954 14,947 15,091 15,122 15,095 15,130 15,036 15,055 15,056 1 Persons 16 years of age and over. Monthly figures, which are based 3 Data include all full- and part-time employees who worked during, on sample data, relate to the calendar week that contains the 12th day; or received pay for, the pay period that includes the 12th day of the annual data are averages of monthly figures. By definition, seasonality month, and exclude proprietors, self-employed persons, domestic servants, does not exist in population figures. From Employment and Earnings (U.S. unpaid family workers, and members of the Armed Forces. Data are Dept. of Labor). adjusted to the February 1977 benchmark. From Employment and Earn- 2 Includes self-employed, unpaid family, and domestic service workers. ings (U.S. Dept. of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • February 1977 2.13 INDUSTRIAL PRODUCTION Unless otherwise noted, figures are indexes (1967 = 100); monthly data are seasonally adjusted 1967 1976p 1975 1976 1976 1977 Grouping pro- averpor- age tion Nov. Dec. Jan. Aug. Sept. Oct. Nov. Dec.f Jan.* Major market groupings 1 Total index 100.00 129.8 123.5 124.4 125.7 131.3 130.8 130.4 131.7 132.8 131.5 2 Products 60.71 129.3 123.8 124.9 126.0 130.3 129.7 129.6 131.6 133.6 132.5 3 Final products 47.82 127.3 122.3 123.5 123.9 128.3 127.4 127.4 129.7 131.7 130.4 4 Consumer goods 27.68 136.8 131.1 132.3 133.1 137.5 136.2 136.9 139.1 141.6 139.5 5 Equipment 20.14 114.3 110.0 111.5 111.2 115.7 115.2 114.4 116.8 118.0 117.9 6 Intermediate products 12.89 136.9 129.3 129.9 133.6 137.8 138.7 138.3 139.1 140.2 140.1 7 Materials 39.29 130.5 123.1 123.3 125.3 133.0 132.5 131.6 131.5 131.8 130.2 Consumer goods 8 Durable consumer goods 7.89 141.5 132.5 134.0 134.7 143.7 138.4 139.4 144.5 150.5 143.5 9 Automotive products 2.83 154.7 143.2 147.7 142.8 158.4 147.4 148.8 162.2 179.1 162.6 10 Autos and utility vehicles 2.03 149.8 134.7 140.0 133.4 158.2 139.1 137.9 155.2 178.5 155.5 11 Autos 1.90 132.0 120.9 122.8 118.9 137.7 120.9 121.5 139.1 159.8 136.9 12 Auto parts and allied goods... .80 167.2 164.9 167.0 167.4 158.4 168.6 176.6 180.3 180.6 13 Home goods 5.06 134.1 126.5 126.4 130.3 135.6 133.3 134.1 134.5 134.5 132.8 14 Appliances, A/C, and TV 1.40 115.7 100.9 101.1 107.8 119.1 111.4 115.8 115.3 111.5 15 Appliances and TV 1.33 118.6 103.7 104.4 110.6 121.9 115.1 118.6 117.6 113.8 16 Carpeting and furniture 1.07 144.3 144.7 142.0 144.8 145.0 146.3 147.0 145.8 144.5 17 Misc. home goods 2.59 139.9 132.9 133.6 136.6 140.7 139.8 138.6 140.4 142.8 18 Nondurable consumer goods 19.79 134.9 130.6 131.5 132.5 134.9 135.3 135.8 136.9 136.1 138.0 19 Clothing 4.29 126.6 123.2 123.9 127.4 123.2 123.0 125.9 123.9 20 Consumer staples 15.50 137.2 132.5 133.6 133.9 138.1 138.7 138.5 140.6 141.9 21 Consumer foods and tobacco 8.33 131.0 127.6 127.2 128.5 131.9 133.0 133.2 133.8 134.0 22 Nonfood staples 7.17 144.5 138.2 141.0 140.2 145.3 145.4 144.8 148.4 151.0 23 Consumer chemical products. 2.63 166.4 157.8 159.7 157.3 168.8 169.2 168.3 i74.0 176.5 24 Consumer paper products... 1.92 113.3 107.5 113.4 113.3 113.9 111.9 109.9 113.8 116.8 25 Consumer energy products. . 2.62 145.3 140.9 142.8 142.4 144.8 145.9 146.9 148.3 150.3 26 Residential utilities 1.45 153.1 152.0 152.0 154.5 151.4 Equipment 27 Business equipment 12.63 135.9 129.6 131.6 131.0 137.7 137.5 135.9 139.6 141.7 140.9 28 Industrial equipment 6.77 \21.1 123.0 124.5 123.5 128.1 129.8 129.9 130.6 132.0 131.1 29 Building and mining equip... 1.44 111.2 174.9 172.9 171.4 179.8 180.4 180.9 180.1 184.8 30 Manufacturing equipment... 3.85 106.2 99.9 101.3 101.2 107.2 108.6 107.9 108.9 109.0 31 Power equipment 1.47 135.5 132.3 137.6 134.6 132.0 135.6 137.8 139.0 140.8 32 Commercial transit, farm equip, 5.86 145.3 137.2 139.7 139.7 148.7 146.1 142.7 150.0 153.0 152.3 33 Commercial equipment 3.26 173.0 159.5 164.4 165.0 176.2 176.8 177.5 179.1 182.8 34 Transit equipment 1.93 103.6 102.8 102.9 100.2 106.6 99.3 98.3 107.0 109.4 35 Farm equipment .67 130.6 127.7 125.6 131.5 136.8 131.4 102.0 132.2 134.3 36 Defense and space equipment 7.51 78.0 77.3 77.7 78.0 78.6 77.7 78.5 78.4 78.1 79.2 Intermediate products 37 Construction supplies 6.42 132.0 123.1 124.1 126.8 134.1 134.3 134.0 134.8 136.3 135.6 38 Business supplies 6.47 141.6 135.4 135.9 140.3 141.5 143.0 142.5 143.3 144.1 39 Commercial energy products... 1.14 156.6 149.8 147.9 158.1 156.4 156.4 154.0 155.4 157.7 Materials 40 Durable goods materials 20.35 126.5 115.2 115.5 118.3 131.4 130.0 128.5 128.3 128.0 126.1 41 Durable consumer parts 4.58 121.5 109.3 111.6 111.7 125.1 123.5 119.4 125.3 124.5 42 Equipment parts 5.44 133.9 122.3 123.9 125.7 138.0 138.3 138.0 137.9 138.7 43 Durable materials n.e.c 10.34 124.9 114.0 112.9 117.4 130.6 128.4 127.5 124.6 123.8 44 Basic metal materials 5.57 110.0 99.5 96.1 101.9 120.0 113.9 112.0 107.3 105.3 45 Nondurable goods materials 10.47 146.5 141.3 142.6 142.9 146.1 147.8 147.5 147.3 147.0 145.6 46 Textile, paper, and chem. mat.. 7.62 151.3 146.2 147.9 147.5 150.6 152.6 152.5 151.4 152.0 47 Textile materials 1.85 114.5 118.4 118.9 117.8 114.9 113.6 112.6 108.8 112.9 48 Paper materials 1.62 131.2 124.4 125.9 126.5 132.7 131.0 132.1 131.0 129.0 49 Chemical materials 4.15 175.7 167.2 169.5 168.9 173.4 178.2 178.2 178.5 178.3 50 Containers, nondurable 1.70 142.5 134.8 136.1 139.0 143.2 143.5 141.7 145; 8 142.4 51 Nondurable materials n.e.c 1.14 120.0 118.4 116.7 118.3 121.2 122.8 122.4 122.2 120.5 52 Energy materials 8.48 120.1 119.7 118.7 120.6 120.5 119.6 119.6 120.3 122.5 121.0 53 Primary energy 4.65 107.0 110.5 107.3 107.7 107.9 108.4 109.0 107.2 106.6 54 Converted fuel materials 3.82 136.0 130.8 132.3 136.3 136.0 133.2 132.7 136.4 141.7 Supplementary groups 55 Home goods and clothing 9.35 130.7 125.0 125.2 129.9 129.9 128.7 130.3 129.7 130.0 56 Energy, total 12.23 128.9 127.1 126.6 128.8 129.0 128.6 128.6 129.6 131.8 131.6 57 Products 3.76 148.7 143.7 144.5 147.2 148.2 149.1 149.1 150.5 152.5 58 Materials 8.48 120.1 119.7 118.7 120.6 120.5 119.6 119.6 120.3 122.5 For NOTE see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 11996677 \\991166PP 1975 1976 1976 1977 GGrroouuppiinngg SSIICC pprroo-- aavveerr-ccooddee ppoorr-- aaggee ttiioonn Nov. Dec. Jan. Aug. Sept. Oct. Nov. Dec.* Jan.e Gross value of products in market structure (Annual rates, in billions of 1972 dollars) 1 Products, total . 1286.3 550.9 527.1 528.4 531.9 556.4 548.8 549.4 561.0 570.7 562.3 2 Final products..... U21.4 426.3 409.7 410.6 410.9 431.3 422.2 423.6 434.3 443.3 435.6 3 Consumer goods. U56.3 302.9 290.5 292.0 292.3 304.6 300.7 302.2 308.7 314.7 308.3 4 Equipment 165.3 123.6 119.3 118.9 119.1 126.7 121.7 121.4 125.9 128.6 127.1 Intermediate products. 164.9 124.5 117.6 117.9 120.8 125.1 126.6 126.0 127.0 127.4 126.6 Major industry groupings 6 Mining and utilities. 12.05 131.8 130.5 129.2 131.8 131.8 131.9 133.1 133.0 134.5 134.0 7 Mining 6.36 114.1 114.2 112.9 113.6 114.4 115.7 116.7 116.2 116.0 112.3 8 Utilities 5.69 151.5 148.8 147.2 152.0 151.3 150.1 151.2 151.9 155.2 158.1 9 Electric 3.88 168.1 165.5 162.3 167.4 168.5 10 Manufacturing. 87.95 129.4 122.7 123.6 125.2 131.6 130.7 129.9 131.5 132.5 130.9 11 Nondurable. 35.97 140.9 136.2 136.9 138.4 140.9 142.6 142.2 142.8 143.6 142.6 12 Durable 51.98 121.4 113.4 114.4 115.8 125.1 122.4 121.5 123.7 124.8 122.8 Mining: 13 Metal mining 10 .51 122.8 118.1 117.9 122.2 127.5 123.6 127.4 128.1 130.4 14 Coal 11, 12 .69 116.7 125.6 109.9 111.2 112.6 121.3 132.3 125.1 123.5 88.8 15 Oil and gas extraction.... 13 4.40 112.0 112.3 113.1 112.5 112.3 113.3 112.5 112.4 112.9 113.6 16 Stone and earth minerals., 14 .75 118.3 112.1 111.5 117.1 119.0 119.2 120.0 121.3 117.9 Nondurable manufactures: 17 Foods 10 8.75 132.1 128.8 128.5 129.2 133.4 135.7 134.7 135.2 135.2 18 Tobacco products. 21 .67 117.5 118.5 116.0 117.3 114.8 115.4 118.3 119.7 19 Textile mill products.. . 22 2.68 135.9 141.6 139.0 137.6 135.1 135.7 134.2 132.2 i33!4 20 Apparel products 23 3.31 125.5 118.3 121.2 123.8 123.7 122.5 126.4 122.1 21 Paper and products 26 3.21 133.1 127.7 129.5 130.3 134.6 132.1 132.3 132.5 131.7 131.0 22 Printing and publishing 27 4.72 120.6 115.4 118.4 120.0 120.6 120.6 119.2 119.7 121.7 23 Chemicals and products.... 28 7.74 169.5 161.9 163.3 162.9 170.4 170.5 170.6 174.2 175.4 24 Petroleum products....... 29 1.79 132.4 124.9 126.3 125.7 133.8 134.1 130.2 134.1 136.3 137.0 25 Rubber & plastic products. 30 2.24 199.3 185.2 185.3 188.4 186.1 212.4 211.1 210.8 211.5 26 Leather and products 31 .86 82.0 87.7 83.2 86.0 77.3 77.9 77.2 75.8 73.3 Durable manufactures: 27 Ordnance, pvt. & govt.. 19,91 3.64 71.9 70.0 70.1 69.9 73.9 73.2 73.3 73.1 73.2 74.0 28 Lumber and products.. 24 1.64 125.5 114.1 116.4 123.5 128.1 128.7 130.7 129.8 131.7 29 Furniture and fixtures.. 25 1.37 132.7 128.7 130.3 132.7 134.4 133.0 134.5 134.2 134.8 30 Clay, glass, stone prod. 32 2.74 135.8 127.5 129.4 128.6 138.1 138.4 138.4 142.1 142.1 31 Primary metals 33 6.57 108.0 98.1 92.6 98.1 118.6 114.1 109.9 106.8 102.7 98.5 32 Iron and steel 4.21 104.4 96.5 89.1 92.9 116.2 110.3 105.1 103.1 95.8 89.8 33 Fabricated metal prod... 24 5.93 123.1 116.3 117.3 116.6 125.8 126.6 123.5 126.0 126.3 34 Nonelectrical machinery. 35 9.15 134.4 126.6 128.6 129.0 136.4 136.8 134.1 136.9 138.6 35 Electrical machinery 36 8.05 131.7 120.1 122.7 124.7 133.3 133.7 135.0 135.8 136.1 36 Transportation equip 37 9.27 110.6 104.7 106.7 105.8 115.0 104.4 104.7 113.2 118.6 113.3 37 Motor vehicles & pts 4.50 140.7 127.1 130.1 126.7 150.6 130.2 129.3 146.2 156.4 142.8 38 Aerospace & misc. tr. eq., 4.77 82.3 83.6 84.7 86.1 81.5 80.1 81.4 82.0 83.0 85.4 39 Instrument 2.11 148.0 136.4 140.9 142.0 149.6 148.7 150.3 150.4 153.1 40 Miscellaneous mfrs 1.51 143.4 137.6 137.3 139.5 142.1 143.8 142.2 143.7 146.2 11972 dollars. NOTE.—Published groupings include some series and subtotals not shown separately. For summary description and historical data, see BULLETIN for Jtine 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 Domestic Nonfinancial Statistics • February 1977 2.14 HOUSING AND CONSTRUCTION Monthly figures at annual rates except as noted 1976 Item 1974 1975 1976 June July Aug. Sept. Oct. Nov. Dec.? Private residential real estate activity (thousands of units; monthly figures, seasonally adjusted; exceptions noted) NEW UNITS 1 Permits authorized 1,074 939 1,282 1,150 1,215 1,296 1,504 1,492 1,590 2 1-family 644 676 894 829 870 874 926 998 1,072 3 2-or-more-family 431 264 388 321 345 422 578 494 518 4 Started 1,338 1,160 1,540 1,510 1,382 1,537 1,840 1,814 1,716 5 1-family 888 892 1,163 1,139 1,123 1,171 1,280 1,337 1,237 6 2-or-more-family 450 269 377 371 259 366 560 477 479 7 Under construction, end of period 1,189 1,003 1,064 1,063 1,074 1,107 1,141 1,168 8 1-family 516 531 609 615 622 641 665 678 9 2-or-more-family 673 472 455 448 452 466 477 489 10 Completed 1,692 1,297 1,373 1,307 1,401 1,387 1,314 1,445 11 1-family 931 866 1,052 1,038 1,094 1,017 976 1,104 12 2-or-more-family 760 430 321 269 307 370 338 341 13 Mobile homes shipped 213 250 233 224 252 255 277 251 Merchant builder activity in 1-family units: 14 Number sold 501 544 589 606 640 744 729 696 15 Number for sale, end of period.. 407 383 406 411 406 415 419 430 Price (thous. of dollars)1 Median: 16 Units sold 35.9 39.3 46.1 44.6 44.2 44.8 45.5 46.1 17 Units for sale 36.2 38.9 40.5 40.7 40.8 40.9 41.0 41.2 Average: 18 Units sold 38.9 42.6 49.2 48.0 48.5 50.5 50.2 EXISTING UNITS (1-family) 19 Number sold 2,272 2,452 2,998 2,990 2,900 3,070 3,330 3,290 3,320 Price of units sold (thous. of dollars) 20 Median 32.0 35.3 38.1 38.6 38.9 39.4 38.7 38.5 38.8 21 Average 35.8 39.0 42.2 41.9 43.2 43.4 42.7 42.4 42.9 Value of new construction 2 (millions of dollars; monthly figures, seasonally adjusted) CONSTRUCTION 22 Total put in place 138,526 132,043 144,458 145,403 141,055 142,031 146,281 146,805 150,478 23 Private 100,179 93,034 108,012 106,487 104,288 104,682 108,650 112,833 116,409 24 Residential 50,378 46,476 59,437 58,685 57,176 55,427 58,701 63,428 66,413 25 Nonresidential, total 49,801 46,558 48,575 47,802 47,112 49,255 49,949 49,405 49,996 Buildings: 26 Industrial 7,902 8,017 6,915 6,738 6,097 6,902 6,894 6,407 6,461 27 Commercial 15,945 12,804 12,561 12,006 12,574 12,984 12,786 12,560 12,522 28 Other 5,797 5,585 6,268 6,229 6,178 6,689 6,669 6,489 6,677 29 Public utilities and other 20,157 20,152 22,831 22,829 22,263 22,680 23,600 23,949 24,336 30 Public 38,347 39,009 36,446 38,916 36,767 37,349 37,631 33,972 34,069 31 Military 1,188 1,391 1,479 1,368 1,448 1,450 1,352 1,467 1,622 32 Highway 12,069 10,345 8,616 10,292 8,297 9,596 8,856 8,738 7,830 . 33 Conservation and development. . . 2,741 3,227 3,370 3,674 3,573 3,618 4,281 2,976 4,112 . 34 Other 22,349 24,046 20,548 23,582 23,449 22,685 23,142 20,791 20,505 . 1 Not seasonally adjusted. NOTE.—Census Bureau estimates for all series except (a) mobile 2 Value of new construction data in recent periods may not be strictly homes, which are private, domestic shipments as reported by the Manucomparable with data in prior periods due to changes by the Bureau of factured Housing Institute and seasonally adjusted by the Census Bureau the Census in its estimating techniques. For a description of these changes and (b) sales and prices of existing units, which are published by the see Construction Reports (C-30-76-5), issued by the Bureau in July 1976. National Association of Realtors. All back and current figures are available from originating agency. Permit authorizations are for 14,000 jurisdictions reporting to the Census Bureau. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices A51 2.15 CONSUMER AND WHOLESALE PRICES Percentage changes based on seasonally adjusted data, except as noted 12 months to— 3 months (at annual rate) to— 1 month to Index level Item 1976 1976 Dec. 1975 1976 1976 Dec. Dec. (1967 Mar. June Sept. Dec. Aug. Sept. | Oct. Nov. Dec. = 100)1 Consumer prices 1 All items 7.0 4.8 2.9 6.1 5.8 4.2 .5 .4 .3 .3 .4 174.3 2 Commodities 6.3 3.3 -1.2 6.3 4.7 3.6 .5 .2 .3 .2 .4 168.1 6.5 0.6 -7.9 1.2 1.8 1.1 .3 .3 -.2 .2 181.7 4 Commodities less food 6.2 5.1 2.9 5.6 6.6 5.4 .6 .4 .4 .4 .5 160.6 5 Durable 7.6 6.1 6.9 6.5 5.8 5.2 .5 .4 .3 .4 .6 158.4 6 Nondurable 5.2 4.4 .8 4.7 7.3 5.1 .8 .4 .4 .5 .4 162.3 7 Services 8.1 7.3 10.6 6.2 7.1 5.4 .6 .5 .5 .4 .4 185.8 8 Rent 5.2 5.5 5.5 5.1 5.4 5.9 .3 .5 .5 .4 .5 148.3 9 Services less rent 8.6 7.6 11.7 6.2 7.3 5.4 .5 .6 .6 .4 .4 192.6 Other groupings: 10 All items less food1 7.1 6.2 5.3 7.0 7.4 5.3 .6 .7 .5 .5 .3 117722..22 11 All items less shelter1 6.9 4.9 3.0 6.9 5.6 4.3 .4 .4 .4 .4 .3 172.2 12 Homeo wnership1 7.9 3.8 1.9 4.3 8.0 1.2 .6 .5 .2 1 195.0 Wholesale prices 13 All commodities 4.2 4.7 -1.8 6.6 4.7 9.0 -.1 .9 .6 .6 .9 187.1 14 Farm products, and processed foods and feeds -.3 -1.1 -15.8 18.0 -11.0 7.9 -2.9 1.0 -.9 .2 2.7 183.9 15 Farm products 5.5 -1.1 -21.0 22.1 -8.3 8.0 -2.9 1.9 -1.2 -.5 3.7 191.6 16 Processed foods and feeds -3.8 -1.1 -12.4 15.6 -12.5 7.7 -2.9 .5 -.1 .6 2.0 179.0 17 Industrial commodities 6.0 6.4 3.2 3.6 9.6 8.9 .7 .9 1.0 .5 .3 187.4 Materials, supplies, and components of which: 18 Crude materials 2 4.5 13.5 1.9 17.3 14.4 21.3 . 1 -.5 4.0 2.3 -1.3 262.3 19 Intermediate materials 3 5.4 6.3 3.7 3.3 9.3 9.3 .7 1.0 .7 .8 .7 194.1 Finished goods, excluding foods: 20 Consumer 6.7 4.8 .5 2.3 10.1 6.8 .6 1.1 .7 .7 .2 165.9 21 Durable 5.1 3.9 3.4 1.1 5.1 6.2 .3 1.0 1.0 .5 .1 147.8 22 Nondurable 7.6 5.4 -.9 2.6 13.3 7.2 .9 1.1 .7 .7 .4 178.0 23 Producer 8.2 6.5 6.8 3.3 5.7 10.0 .2 .8 1.4 .2 .7 178.9 24 MEMO: Consumer foods 5.5 -2.5 -20.5 16.8 -12.2 11.7 -2.2 .7 -.4 .8 2.4 180.9 1 Not seasonally adjusted. 3 Excludes intermediate materials for food manufacturing and manu- 2 Excludes crude foodstuffs and feedstuff's, plant and animal fibers, factured animal feeds. oilseeds, and leaf tobacco. SOURCE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • February 1977 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted 1975 1976 1974 1975 1976P Q3 Q4 Ql Q2 Q3 Q4p Gross national product 1 Total 1,413.2 1,516.3 1,692.4 1,548.7 1,588.2 1,636.2 1,675.2 1,708.9 1,748.5 By source: 2 Personal consumption expenditures... 887.5 973.2 1,078.6 987.3 1,012.0 1,043.6 1,064.7 1,088.5 1,117.5 3 Durable goods 121.6 131.7 156.3 136.0 141.8 151.4 155.0 157.6 161.2 4 Nondurable goods 376.2 409.1 440.3 414.6 421.6 429.1 434.8 441.8 455.5 5 Services 389.6 432.4 482.0 436.7 448.6 463.2 474.9 489.1 500.8 6 Gross private domestic investment. . . 215.0 183.7 241.2 197.7 201.4 229.6 239.2 247.0 249.0 7 Fixed investment 204.3 198.3 227.7 198.6 205.7 214.7 223.2 231.9 241.1 8 Nonresidential 149.2 147.1 160.0 146.1 148.7 153.4 157.9 163.0 165.5 9 Structures 54.1 52.0 55.4 51.8 52.1 53.2 54.9 56.0 57.5 10 Producers' durable equipment 95.1 95.1 104.5 94.2 96.6 100.2 103.0 107.0 108.0 11 Residential structures 55.1 51.2 67.8 52.6 57.0 61.3 65.3 68.9 75.6 12 Nonfarm 52.7 49.0 65.1 50.2 54.2 58.6 62.9 66.3 72.7 13 Change in business inventories. . . 10.7 -14.6 13.5 -2.0 -4.3 14.8 16.0 15.1 7.9 14 Nonfarm 12.2 -17.6 13.6 -4.2 -9.5 12.7 17.3 15.6 8.9 15 Net exports of goods and services... . 7.5 20.5 6.9 21.4 21.0 8.4 9.3 "4.7 5.2 16 Exports 144.4 148.1 161.9 148.2 153.7 154.1 160.3 '167.7 165.6 17 Imports 136.9 127.6 155.1 126.8 132.7 145.7 151.0 "163.0 160.4 18 Govt, purchases of goods and services. 303.3 339.0 365.8 343.2 353.8 354.7 362.0 369.6 376.8 19 Federal 111.6 124.4 133.4 124.6 130.4 129.2 131.2 134.5 138.9 20 State and local 191.6 214.5 232.3 218.6 223.4 225.5 230.9 235.0 238.0 By major type of product: 21 Final sales, total 1,402.5 1,531.0 1,679.0 1,550.6 1,592.5 1,621.4 1,659.2 rl,694.7 1,742.6 22 Goods, total 639.7 681.7 761.5 703.5 719.7 742.3 758.4 766.1 779.2 23 Durable goods 247.2 254.4 301.7 265.0 270.0 282.7 301.2 308.2 314.8 24 Nondurable 392.4 427.3 459.8 438.4 449.7 459.6 457.1 457.9 464.1 25 Services [[[ 626.6 1 692.5 771.3 700.2 719.5 742.6 759.6 "781.5 801.4 26 Structures '.' 146.9 142.1 159.7 145.0 149.1 151.3 157.3 162.2 168.0 27 Change in business inventories 10.7 -14.6 13.5 -2.0 -4.3 14.8 16.0 15.1 7.9 28 Durable goods 7.1 -12.1 4.3 -7.0 -10.6 -3.6 5.4 6.8 8.5 29 Nondurable goods 3.6 -2.6 9.2 5.0 6.3 18.5 10.6 8.3 -.5 MEMO: 30 Total GNP in 1972 dollars 1,214.0 1,191.7 1,265.0 1,209.3 1,219.2 1,246.3 1,260.0 rl,272.2 1,281.5 National income 31 Total 1,135.7 1,207.6 1,349.4 1,233.4 1,264.6 1,304.7 1,337.4 1,362.5 3 3 2 3 Co W m a p g e e n s s a a t n io d n s a o l f a r e i m es p loyees 8 7 7 64 5 . . 5 8 8 9 0 2 6 8 . . 7 8 1,0 89 2 0 8 . . 4 4 9 81 3 1 5 . . 7 2 9 83 6 6 3 . . 4 1 8 9 6 9 1 4 . . 5 4 1,0 8 1 81 7 . . 1 2 1,0 8 3 97 7 . . 8 5 1,0 9 6 21 4 . . 0 5 34 Government and Government enterprises 160.4 175.8 190.7 177.3 182.2 185.4 188.7 191.7 197.0 35 Other 604.1 630.8 699.7 634.4 654.1 676.1 692.4 706.1 724.0 3 3 6 7 Su E pp m le p m lo e y n e t r t c o o w nt a r g ib es u t a i n o d n s s a f l o a r r i s e o s cial 111.3 122.1 138.0 123.5 126.7 132.9 136.2 139.6 143.5 insurance 55.8 59.7 67.9 60.2 61.6 65.9 67.1 68.6 70.2 38 Other labor income ......!!. 55.5 62.5 70.1 63.3 65.2 67.1 69.0 71.1 73.3 4 3 0 9 Pr B op u r s i i e n to es r s s ' a i n n d c o p m ro e1 f essional1 !!!!!!!!! 6 86 1 . . 9 1 9 6 0 5 . . 2 3 9 7 6 3 . . 7 8 6 95 6 . . 5 3 9 6 7 9 . . 2 0 7 93 1 . . 2 4 1 7 0 2 0. . 3 8 9 7 6 4 . . 1 4 9 7 7 6 . . 1 8 41 Farm* !.'.".!!!'.'. 25.8 24.9 22.8 29.2 28.3 21.9 27.5 21.7 20.3 42 Rental income of persons2 r21.0 r22.4 r23.5 r22.1 "22.9 "23.3 '23.1 "23.4 24.3 43 Corporate profits1 84.8 91.6 118.1 105.3 105.6 115.1 116.4 122.0 44 Profits before tax 3 127.6 114.5 148.8 126.9 131.3 141.1 146.2 150.2 4 4 6 5 C In a v p e i n ta to l r c y o n v s a u lu m a p ti t o io n n a a d d ju ju s s t t m m e e n n t t . .. !.....!. -3 -3 9 . . 0 8 - -1 1 1 1 . . 5 4 - - 1 1 4 5 . . 6 5 -1 -9 2 . . 0 6 - - 1 13 2 . . 5 3 - - 1 1 1 4 . . 5 5 - - 1 1 4 5 . . 4 4 - - 1 1 5 2 . . 7 6 - - 2 1 0 6 . . 0 4 47 Net interest 67.1 74.6 82.1 74.9 75.8 78.6 80.3 83.5 86.0 2 1 W W i i t t h h i c n a v p e i n ta t l o r c y o n v s a u l m ua p t t i i o o n n a a n d d ju c s a tm pi e ta n l t s c . onsumption adjustments. 3 For after-tax profits, dividends, etc., see Table 1.50. SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Income Accounts A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1975 1976 11997744 11997755 11997766pp Account Q3 Q4 Ql Q2 Q3 Q4p Personal income and saving Total personal income. 1,153.3 1,249 7 1,375.4 1,265.5 1,299.7 1,331.3 1,362.0 1,386.0 1,422.1 2 Wage and salary disbursements 765.0 806.7 890.4 811.7 836.4 961.5 881.1 897.8 921.0 3 Commodity-producing industries 273.9 275.3 304.8 272.2 285.8 295.3 302.9 307.0 314.0 4 Manufacturing 211.4 211.7 237.0 212.5 220.3 229.6 235.6 238.9 243.8 5 Distributive industries 184.4 195.6 214.9 196.8 202.3 208.3 212.8 216.5 221.8 6 Service industries 145.9 159.9 180.0 161.3 166.1 172.4 176.7 182.7 188.3 7 Government and government enterprises., 160.9 175.8 190.7 177.3 182.2 185.4 188.7 191.7 197.0 8 Other labor income 55.5 62.5 70.1 63.3 65.2 67.1 69.0 71.1 73.3 9 Proprietors' income1 86.9 90.2 96.7 95.5 97.2 93.2 100.3 96.1 97.1 10 Business and professional1 61.1 65.3 73.8 66.3 69.0 71.4 72.8 74.4 76.8 11 Farm1 25.8 24.9 22.8 29.2 28.3 21.9 27.5 21.7 20.3 12 Rental income of persons2. 21.0 22.4 23.5 22.4 22.9 23.3 23.1 23.4 24.3 13 Dividends 30.8 32.1 35.1 32.6 32.2 33.1 34.4 35.4 37.7 14 Personal interest income... 101.4 110.7 123.1 111.0 114.4 118.0 120.7 125.0 128.7 15 Transfer payments 140.3 175.2 191.3 179.1 182.5 188.6 187.6 192.4 196.6 16 Old-age survivors, disability, and health insurance benefits 70.1 81.4 93.0 84.7 86.3 88.1 89.5 95.8 98.4 17 LESS: Personal contributions for social insurance 47.6 50.0 54.9 50.1 51.0 53.4 54.3 55.2 56.6 18 EQUALS : Personal income 1,153.3 1,249.7 1,375.4 1,265.5 1,299.7 1,331.3 1,362.0 1,386.0 1,422.1 19 LESS: Personal tax and nontax paym 170.4 168.8 193.6 174.0 197.8 183.8 189.5 195.8 205.3 20 EQUALS : Disposable personal income. 982.9 1,080.9 1,187.8 1,091.5 1,119.9 1,147.6 1,172.5 1,190.2 1,216.9 21 LESS: Personal outlays 910.7 996.9 1,104.0 1,011.1 1,036.2 1,068.0 1,089.6 1,114.3 1,144.0 22 EQUALS : Personal saving 72.2 84.0 77.8 80.5 83.7 79.5 82.9 75.8 72.9 MEMO: Per capita, 1972 dollars: 23 Gross national product 3,968 4,007 4,141 4,009 4,049 4,103 4,143 4,142 4,171 24 Personal consumption expenditures. 887.5 973.2 1,078.6 987.3 1,012.0 1,043.6 1,064.7 1,088.5 1,117.5 25 Disposable personal income 840.8 855.5 890.7 857.1 867.5 880.4 890.5 892.0 900.2 26 Saving rate (per cent) 7.3 7.8 6.6 7.4 7.5 6.9 7.1 6.4 6.0 Gross saving 27 Gross private saving. 211.6 255.6 276.4 262.7 269.4 273.8 279.1 278.6 28 Personal saving 72.2 84.0 77.8 80.5 83.7 79.5 82.9 75.8 72.9 29 Undistributed corporate profits1 1.7 10.3 18.8 17.9 16.2 20.6 18.5 '21.5 30 Corporate inventory valuation adjustment.... -39.8 -11.4 -14.6 -9.0 -12.3 -11.5 -14.4 -12.6 -20.0 Capital consumption allowances: 31 Corporate 84.6 100.9 112.8 103.1 106.4 108.8 111.6 113.9 116.9 3 2 Noncor p orate 53.1 60.4 67.0 61.3 63.2 64.8 66.1 67.7 69.3 33 Wage accruals less disbursements 34 Government surplus, or deficit (—), national income and product accounts -4.2 -64.4 -44.5 -58.1 -61.5 -51.6 -44.9 r—44.7 35 Federal -11.5 -71.2 -58.3 -66.0 -69.4 -63.8 -54.1 r—57.4 36 State and local 7.3 6.9 13.9 7.9 7.9 12.2 9.2 12.7 37 Capital grants received by the United States, net —2.0 38 Investment 211.9 195.6 239.5 209.8 214.0 229.4 240.0 r242.9 245.8 39 Gross private domestic. 215.0 183.7 241.2 196.7 201.4 229.6 239.2 247.0 249.0 40 Net foreign -3.0 11.9 -1.7 13.1 12.6 -.2 .8 r—4.1 -3.2 41 Statistical discrepancy. 6.8 4.4 7.6 5.1 6.1 7.2 5.8 '8.7 1 With inventory valuation and capital consumption adjustments. SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). 2 With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 International Statistics • February 1977 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars. Quarterly data are seasonally adjusted except as noted.1 1975 1976 IItteemm CCrreeddiittss oorr ddeebbiittss 11997733 11997744 11997755 Q3 Q4 QL Q2 Q3 1 Merchandise exports 71,410 98,310 107,088 26,562 27,657 26,836 28,428 29,581 2 Merchandise imports 70,499 103,679 98,058 24,483 25,437 28,510 29,771 32,614 3 Merchandise trade balance 2 911 -5,369 9,030 2,079 2,220 -1,674 -1,343 -3,033 4 Military transactions, net -2,287 -2,083 -883 -115 12 -5 -146 366 5 Investment income, net 5,178 10,227 6,007 1,682 1,670 2,279 2,460 2,712 6 Other service transactions, net 102 812 2,163 619 455 458 765 824 7 Balance on goods and services 3 3,905 3,586 16,316 4,265 4,357 1,058 1,736 869 8 Unilateral transfers -3,883 -7,185 -4,620 -1,044 -1,251 -1,118 -920 -1,925 9 Remittances, pensions, and other transfers -1,945 -1,710 -1,727 -429 -433 -483 -452 -464 10 U.S. Govt, grants (excluding military) -1,938 -5,475 -2,893 -615 -818 -635 -468 -1,461 11 22 --33,,559988 11,697 3,221 3,106 -60 816 -1,056 P 551133 44,,330055 11,,447799 777711 --44,,003333 13 U.S. Govt, capital transactions, other than official reserve assets, -1,492 1,089 -1,731 -401 -453 798 -212 301 14 Change in U.S. official reserve assets (increase,—) 209 -1,434 -607 -342 89 -773 -1,578 -407 IS 16 SDR's 9 -172 -66 -25 -21 -45 14 -18 17 -33 -1,265 -466 -95 -57 -237 -798 -716 18 Foreign currencies 233 3 -75 -222 167 -491 -794 327 19 Change in U.S. private assets abroad (increase, — ) -13,998 -32,323 -27,523 -3,297 -10,375 -8,550 -7,288 -7,040 20 Bank-reported claims -5,980 -19,494 -13,487 -617 -5,348 -3,582 -4,767 -3,339 21 -933 -1,183 -2,373 -60S -943 -250 -385 -989 22 Short-term -5,047 -18,311 -11,114 -9 -4,405 -3,332 -4,382 -2,350 23 Nonbank-reported claims -2,378 -3,221 -1,522 -972 —972 -751 -962 350 24 -396 -474 -441 -139 -379 -187 146 21 25 -1,982 -2,747 -1,081 -833 -593 -564 -1,108 329 26 -671 -1,854 -6,206 -938 -2,361 -2,460 -1,357 -2,806 27 U.S. direct investments abroad, net -4,968 -7,753 -6,307 -770 -1,694 -1,757 -202 -1,245 28 Change in foreign official assets in the United States (increase,+).. 5,145 10,257 5,166 -1,977 2,272 2,460 3,308 1,258 29 U.S. Treasury securities 114 3,282 4,338 -2,847 1,069 1,998 2,166 1,261 30 Other U.S. Govt, obligations 582 902 891 25 307 68 316 66 31 Other U.S. liabilities reported by U.S. banks 4,126 5,818 -2,158 320 134 -275 135 -595 32 Other foreign official assets 323 254 2,095 525 762 669 691 526 33 Change in foreign private assets in the United States (increase,+)• • 12,220 21,452 8,427 4,313 3,103 1,454 3,225 5,458 34 U.S. bank-reported liabilities 4,702 16,017 647 1,639 691 675 3,518 1,719 35 227 9 -300 -114 146 -91 -25 67 36 4,475 16,008 947 1,753 545 766 3,543 1,652 37 1,035 1,615 171 -141 -68 24 -248 -141 38 298 -212 345 -99 10 -332 -188 -215 39 737 1,827 -174 -42 -78 356 -60 74 40 Foreign private purchases of U.S. Treasury securities, net -214 697 2,667 2,125 213 453 -598 3,020 41 Foreign purchases of other U.S. securities, net 4,041 378 2,505 738 1,038 1,030 131 77 42 Foreign direct investments in the United States, net 2,656 2,745 2,437 -48 1,229 -728 422 784 43 Allocations of SDR's . 44 Discrepancy -2,107 44,,555577 44,,557700 -1,517 2,258 4,671 1,729 1,485 45 Owing to seasonal adjustments --22,,556611 11,,227755 11,,334499 -76 --22,,882299 46 Statistical discrepancy in recorded data before seasonal -2,107 4,557 4,570 1,044 983 3,322 1,805 4,314 MEMO: Changes in official assets: 47 209 -1,434 -607 -342 89 --777733 --11,,557788 --440077 48 Foreign official assets in the U.S. (increase,+) 5,145 10,257 5,166 -1,977 2,272 2,460 3,308 1,258 49 Transfers under military grant programs (excluded from lines 1, 4, and 10 above) 2,809 1,817 2,232 56 117777 5500 9999 115566 1 Seasonal factors are no longer calculated for capital transactions— the national income and product (GNP) account. The GNP definition lines 14 through 49. excludes special military sales from exports and U.S. Govt, interest pay- 2 Adjusted to a balance of payments basis; among other adjustments, ments from imports. excludes military transactions and includes imports into the Virgin Islands. NOTE.—Data are from Bureau of Economic Analysis, Survey of Current 3 Differs from the definition of "net exports of goods and services" in Business (U.S. Dept. of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data, are seasonally adjusted 1976 IItteemm 11997744 11997755 11997766 June' July Aug. Sept. Oct. Nov. Dec. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 97,908 107,130 114,807 9,713 '10,011 '9,687 9,872 9,728 9,625 10,515 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses r100,252 '96,115 120,677 10,095 10,849 10,446 '10,650 '10,406 10,531 11,066 3 Trade balance '-2,344 +11,014 -5,870 -382 '-838 '-759 '-778 '-678 -906 -551 NOTE.—Bureau of Census data reported on a free-alongside-ship exports (which are combined with other military transactions and are (f.a.s.) value basis. Before 1974 imports were reported on a customs reported separately in the "service account"). On the import side, the import value basis. For calendar year 1974 the f.a.s. import value was largest single adjustment is the addition of imports into the Virgin Islands $100.3 billion, about 0.7 per cent less than the corresponding customs (largely oil for a refinery on St. Croix), which are not included in Census import value. The international-accounts-basis data shown in Table 3.10 statistics. adjust the Census basis data for reasons of coverage and timing. On the SOURCE.—U.S. Dept. of Commerce, Bureau of the Census, Summary export side, the largest adjustments are: (a) the addition of exports to of U.S. Export and Import Merchandise Trade (FT 900). Canada not covered in Census statistics, and (b) the exclusion of military 3.12 U.S. RESERVE ASSETS Millions of dollars; end of period 1976 1977 TTyyppee ooff aasssseett 1973 1974 1975 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Total 3 14,378 15,883 16,226 18,246 18,586 18,945 19,013 19,416 18,747 4 19,087 2 Gold stock, including Exchange Stabilization Fund1 311,652 11,652 11,599 11,598 11,598 11,598 11,598 11,598 11,598 11,658 3 Special Drawing Rights2 32,166 2,374 2,335 2,318 2,325 2,357 2,352 2,365 2,395 4 2,375 4 Reserve position in International Monetary Fund 3552 1,852 2,212 3,466 3,818 3,952 3,997 4,307 4,434 4 4,682 5 Convertible foreign currencies 8 5 80 864 845 1,038 1,066 1,146 320 372 1 Gold held under earmark at Federal Reserve Banks for foreign and 4 Beginning July 1974, the IMF adopted a technique for valuing the international accounts is not included in the gold stock of the United SDR based on a weighted average of exchange rates for the currencies States; see 3.24. of 16 member countries. The U.S. SDR holdings and reserve position in 2 Includes allocations by the International Monetary Fund of SDR's the IMF also are valued on this basis beginning July 1974. At valuation as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets and $710 million on Jan. 1, 1972; plus net transactions in SDR's. at end of January amounted to $19,309; SDR holdings, $2,482; and 3 Change in par value of U.S. dollar on Oct. 18, 1973 increased total reserve position in IMF, $4,797. reserve assets by $1,436 million, gold stock by $1,165 million, SDR's by $217 million, and reserve position in IMF by $54 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 International Statistics • February 1977 3.13 SELECTED U.S. LIABILITIES TO FOREIGNERS Millions of dollars; end of period 1974 1976 HHoollddeerr,, aanndd ttyyppee ooff lliiaabbiilliittyy 11997733 11997755 Dec. 9 July Aug. Sept. Oct. Nov.p Dec.p 1 Total 92,490 119,240 119,164 126,558 139,169 138,743 140,788 143,711 144,677 151,037 2 Foreign countries 90,487 115,918 115,842 120,926 132,430 131,693 133,032 136,081 136,451 142,618 3 Official institutions 1 6666,,886611 7766,,880011 7766,,882233 8800,,668811 85,924 86,716 8866,,007766 8866,,881155 8877,,667799 91,797 4 Short-term, reported by banks in the United States.2 43,923 53,057 53,079 49,513 50,474 51,249 49,657 49,017 4499,,221166 5533,,445577 U.S. Treasury bonds and notes: 5 Marketable3 5,701 5,059 5,059 6,671 9,519 9,835 10,800 11,027 11,367 11,788 6 Nonmarketable4 15,564 16,339 16,339 19,976 20,151 19,801 1199,,880033 20,876 2211,,113311 2200,,664488 7 Other readily marketable liabilities 5 1,673 2,346 2,346 4,521 5,780 5,831 5,816 5,895 5,965 5,904 Commercial banks abroad 8 Short-term reported by banks in the United States2,6 17,694 30,314 30,106 29,516 34,743 32,828 34,610 36,940 35,527 37,309 9 Other foreigners 55,,993322 88,,880033 88,,991133 1100,,772299 1111,,776633 1122,,114499 12,346 1122,,332266 1133,,224455 1133,,551122 10 Short-term, reported by banks in the United States2 5,502 8,305 8,415 10,028 10,932 1111,,223388 1111,,447755 11,399 1122,,227755 1122,,553366 11 Marketable U.S. Treasury bonds and notes3,7 430 498 498 701 831 911 871 927 970 976 12 Nonmonetary international and regional organizations 8 2,003 3,322 3,322 5,632 6,739 77,,005500 7,756 7,630 8,226 8,419 13 Short-term, reported by banks in the United States2 11,,995555 33,,117711 33,,117711 55,,330011 55,,667711 55,,664499 55,,996655 55,,110022 55,,550055 5,391 14 Marketable U.S. Treasury bonds and notes 3 48 151 151 331 1,068 1,401 1,791 2,528 2,721 3,028 1 Includes Bank for International Settlements. 9 Data in the two columns shown for this date differ because of changes 2 Includes Treasury bills as shown in Table 3.15. in reporting coverage. Figures in the first column are comparable in cover- 3 Derived by applying reported transactions to benchmark data. age with those for the preceding date; figures in the second column are 4 Excludes notes issued to foreign official nonreserve agencies. comparable with those shown for the following date. 5 Includes long-term liabilities reported by banks in the United States and debt securities of U.S. Federally sponsored agencies and U.S. cor- NOTE.—Based on Treasury Dept. data and on data reported to the porations. Treasury Dept. by banks (including Federal Reserve banks) and brokers 6 Includes short-term liabilities payable in foreign currencies to com- in the United States. Data exclude the holdings of dollars of the Intermercial banks abroad and to other foreigners. national Monetary Fund derived from payments of the U.S. subscription, 7 Includes marketable U.S. Treasury bonds and notes held by com- and from the exchange transactions and other operations of the IMF. mercial banks abroad and other foreigners. Data also exclude U.S. Treasury letters of credit and nonnegotiable, non- 8 Principally the International Bank for Reconstruction and Develop- interest-bearing special U.S. notes held by nonmonetary international ment and the Inter-American and Asian Development Banks. and regional organizations. 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars; end of period 1974 1976 AArreeaa 11997733 11997755 Dec. 3 July Aug. Sept. Oct. Nov.*> Dec.*' 1 Total 66,861 76,801 76,823 80,681 85,924 86,716 86,076 86,815 87,679 91,797 2 Western Europe 1 45,764 44,328 44,328 45,676 42,321 41,504 41,564 41,927 44,059 45,820 3 Canada 3,853 3,662 3,662 3,132 3,410 3,212 3,417 3,389 2,406 3,406 4 Latin American republics 2,544 4,419 4,419 4,448 4,000 4,378 4,286 4,092 4,089 4,850 5 Asia 10,887 18,604 ,8,626 22,545 30,994 32,629 32,427 33,436 33,860 34,099 6 Africa 788 3,161 3,161 2,983 3,134 3,098 2,758 2,414 1,925 1,843 7 Other countries 2 3,025 2,627 2,627 1,897 2,065 1,895 1,624 1,557 1,340 1,779 1 Includes Bank for International Settlements. 3 See Note 9 to Table 3.13. 2 Includes countries in Oceania and Eastern Europe, and Western European dependencies in Latin America. NOTE.—Data represent breakdown by area of line 3, Table 3.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A57 3.15 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States By Holder and by Type of Liability Millions of dollars; end of period 1974 1976 HHoollddeerr,, aanndd ttyyppee ooff lliiaabbiilliittyy 11997733 1975 Dec. 8 July Aug. Sept. Oct. NOV.P Dec.*3 1 All foreigners, excluding the International Monetary Fund 69,074 94,847 94,771 94,350 101,820 100,964 101,708 102,458 102,523 108,694 2 Payable in dollars 6688,,447777 9944,,008811 94,004 93,793 101,147 100,295 101,006 101,691 101,742 107,972 Deposits: Demand 11,310 14,068 14,051 13,564 14,714 14,198 14,793 14,658 15,846 1166,,779900 4 Time1 6,882 10,106 9,932 10,348 10,259 10,194 10,644 10,548 10,754 11,370 5 U.S. Treasury bills and certificates2 31,886 35,662 35,662 37,414 39,632 40,964 40,119 38,934 38,661 40,744 6 Other short-term liabilities3 18,399 34,246 34,359 32,466 36,542 34,939 35,450 37,552 36,482 39,069 7 Payable in foreign currencies 597 766 766 558 673 669 702 766 781 722 8 Nonmonetary international and regional organizations 4 1,955 3,171 3,171 5,293 5,671 5,649 5,966 5,102 5,518 55,,339911 9 Payable in dollars 1,955 3,171 3,171 5,284 5,665 5,641 5,962 5,098 5,502 5,387 Deposits: 10 Demand 101 139 139 139 483 379 331 256 287 290 11 Time1 83 111 111 148 192 148 151 164 199 206 12 U.S. Treasury bills and certificates 296 497 497 2,554 3,129 3,475 4,031 3,196 3,604 2,701 13 Other short-term liabilities5 1,474 2,424 2,424 2,443 1,862 1,639 1,449 1,482 1,412 2,190 14 Payable in foreign currencies 8 6 8 4 4 4 5 15 Official institutions, banks, and other foreigners.. 67,119 91,676 91,600 89,057 96,149 95,315 95,742 97,356 97,018 103,303 16 Payable in dollars 66,522 9900,,991100 9900,,883344 88,508 95,482 94,654 95,045 96,594 96,241 102,585 Deposits: 17 Demand 11,209 13,928 13,912 13,426 14,231 13,819 14,462 14,402 15,559 1166,,550000 18 Time1 6,799 9,995 9,821 10,200 10,067 10,046 10,493 10,383 10,555 11,164 19 U.S. Treasury bills and certificates2 31,590 35,165 35,165 34,860 36,504 37,489 36,088 35,738 35,057 38,042 20 Other short-term liabilities3 16,925 31,822 31,935 30,023 34,680 33,300 34,001 36,070 35,070 36,879 21 Payable in foreign currencies 597 766 766 549 667 661 697 762 776 718 22 Official institutions6 43,923 53,057 53,079 49,513 50,474 51,249 49,657 49,017 49,216 53,457 23 Payable in dollars 4433,,779955 52,930 52,952 49,513 50,474 51,249 49,657 49,017 49,216 53,457 Deposits: 24 Demand 2,125 2,951 2,951 2,644 2,932 2,380 2,544 2,706 22,,667722 33,,339933 25 Time1 3,911 4,257 4,167 3,423 2,251 2,207 2,144 2,127 2,130 2,334 26 U.S. Treasury bills and certificates2 31,511 34,656 34,656 34,182 36,016 36,974 35,653 35,241 34,674 37,668 27 Other short-term liabilities5 6,248 11,066 11,178 9,264 9,275 9,688 9,317 8,943 9,1 AO 10,062 1R Pnvnhlp in fnreion rurvprmiov 127 127 127 29 Banks and other foreigners 23,196 38,619 38,520 39,544 45,675 44,066 46,084 48,339 47,802 49,846 30 Payable in dollars 22,727 37,980 37,881 38,995 45,008 43,404 43,387 47,577 47,026 49,128 31 Banks ? 1177,,222244 2299,,667766 2299,,446677 28,966 34,076 32,167 33,913 36,178 34,751 36,592 Deposits: 32 Demand 6,941 8,248 8,231 7,534 7,992 7,934 8,233 8,361 8,946 9,082 33 Time1 529 1,942 1,910 1,942 2,275 2,206 2,578 2,291 2,001 2,388 34 U.S. Treasury bills and certificates 11 232 232 335 155 162 176 223 174 169 35 Other short-term liabilities3 9,743 19,254 19,094 19,155 23,654 21,865 22,925 25,303 23,631 24,953 36 Other foreigners 5,502 8,304 8,414 10,029 10,932 11,238 11,474 11,399 12,275 12,536 Deposits: 37 Demand 2,143 2,729 2,730 3,248 3,307 3,505 3,686 3,335 3,942 44,,002244 38 Time1 2,359 3,796 3,744 4,836 5,541 5,632 5,771 5,965 6,424 6,442 39 U.S. Treasury bills and certificates 68 277 277 342 333 353 259 274 209 205 40 Other short-term liabilities5 933 1,502 1,664 1,605 1,751 1,747 1,759 1,824 1,700 1,864 41 Payable in foreign currencies 469 639 639 549 667 661 697 762 776 718 1 Excludes negotiable time certificates of deposit, which are included 6 Foreign central banks and foreign central governments and their in "Other short-term liabilities." agencies, and Bank for International Settlements. 2 Includes nonmarketable certificates of indebtedness and Treasury 7 Excludes central banks, which are included in "Official institutions." bills issued to official institutions of foreign countries. 8 Data in the two columns shown for this date differ because of changes 3 Includes liabilities of U.S. banks to their foreign branches, liabilities in reporting coverage. Figures in the first column are comparable with of U.S. agencies and branches of foreign banks to their head offices and those for the preceding date; figures in the second column are comparable foreign branches of their head offices, bankers acceptances, commercial with those shown for the following date. paper, and negotiable time certificates of deposit. 4 Principally the International Bank for Reconstruction and Develop- NOTE.—"Short-term obligations" are those payable on demand, or ment, and the Inter-American and Asian Development Banks. having an original maturity of 1 year or less. 5 Principally bankers acceptances, commercial paper, and negotiable time certificates of deposit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 International Statistics • February 1977 3.16 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States By Country Millions of dollars end of period 1974 1976 AArreeaa aanndd ccoouunnttrryy 11997733 11997755 Dec. 7 July Aug. Sept. Oct.f Nov.f Dec.f 1 Total 69,074 94,847 94,771 94,350 101,820 100,964 101,708 102,458 102,523 108,694 2 Foreign countries 67,119 91,676 91,600 89,057 96,149 95,315 95,742 97,356 97,018 103,303 3 Europe 40 J42 48,667 48,813 43,988 39,899 38,990 40,165 39,967 42,586 46,767 4 Austria 161 607 607 754 589 412 335 334 332 348 5 Belgium-Luxembourg 1,483 2,506 2,506 2,898 1,977 1,976 1,946 1,879 2,085 2,268 6 Denmark 659 369 369 332 322 440 317 372 416 373 7 Finland 165 266 266 391 446 435 415 407 378 419 8 France 3,483 4,287 4,287 7,733 4,408 4,214 4,355 4,409 4,642 4,875 9 Germany 13,227 9,420 9,429 4,357 4,961 4,738 5,964 6,532 5,418 5,964 10 Greece 389 248 248 284 361 350 337 405 378 403 11 Italy 1,404 2,617 2,577 1,072 2,263 2,641 1,574 1,583 2,884 3,206 12 Netherlands 2,886 3,234 3,234 3,411 2,184 2,189 2,565 2,534 2,694 2,813 13 Norway 965 1,040 1,040 996 898 684 789 690 740 785 14 Portugal 534 310 310 195 250 257 193 177 206 239 15 Spain 305 382 382 426 416 419 540 506 478 565 16 Sweden 1,885 1,138 1,138 2,286 2,384 2,227 1,979 1,295 1,420 1,693 17 Switzerland 3,377 9,986 10,139 8,514 9,551 9,250 9,016 8,332 8,846 9,473 18 Turkey. . * 98 152 152 118 80 100 65 74 88 166 19 United Kingdom 6,148 7,559 7,584 6,886 6,289 6,139 7,292 7,953 8,516 10,004 20 Yugoslavia 86 183 183 126 128 142 128 131 147 188 21 Other Western Europe1 3,352 4,073 4,073 2,970 2,150 2,130 2,103 2,089 2,628 2,681 22 U.S.S.R 22 82 82 40 35 34 70 80 84 51 23 Other Eastern Europe 110 206 206 200 209 215 182 184 204 254 24 Canada 3,627 3,517 3,520 3,076 3,995 3,790 4,780 4,033 3,944 4,748 25 Latin America 7,664 12,038 1111,,775544 14,954 18,964 17,619 17,490 19,065 17,684 19,005 26 Argentina 924 886 888866 1,147 1,407 1,510 1,437 1,374 1,293 1,535 27 Bahamas 852 1,448 1,054 1,827 4,838 3,006 2,628 4,817 2,685 2,789 28 Brazil 860 1,034 1,034 1,227 1,308 1,200 1,132 1,323 1,168 1,431 29 Chile 158 276 276 317 301 303 325 298 315 336 30 Colombia 247 305 305 417 762 772 767 804 922 1,016 31 Cuba 7 7 7 6 6 7 6 6 6 6 32 Mexico 1,296 1,770 1,770 2,078 2,110 2,301 2,348 2,475 2,860 2,838 33 Panama 282 488 510 1,099 1,050 1,387 912 866 1,188 1,140 34 Peru 135 272 272 244 235 239 236 247 243 256 35 Uruguay 120 147 165 172 219 226 244 233 238 245 36 Venezuela 1,468 3,413 3,413 3,289 2,747 3,092 3,208 2,644 3,009 3,072 37 Other Latin American republics 884 1,316 1,316 1,494 1,790 1,703 1,750 1,676 1,740 2,035 38 Netherlands Antilles2 71 158 158 129 135 149 147 160 157 161 39 Other Latin America 359 519 589 1,507 2,057 1,723 2,348 2,142 1,860 2,147 40 10,839 21,073 21,130 21,539 27,522 29,360 28,406 29,745 28,910 28,465 41 China, People's Republic of (Mainland) 38 50 50 123 42 45 45 48 59 47 42 China, Republic of (Taiwan) 757 818 818 1,025 1,070 1,131 1,122 1,182 1,022 977 43 Hong Kong 372 530 530 623 788 842 874 887 858 889 44 India 85 261 261 126 938 1,047 985 1,048 910 648 45 Indonesia 133 1,221 1,221 369 1,122 1,002 995 1,154 314 339 46 Israel 327 386 389 386 298 324 300 310 325 385 47 Japan 6,967 10,897 10,931 10,218 13,631 14,194 14,424 14,664 14,736 14,378 48 Korea 195 384 384 390 346 369 350 366 324 436 49 Philippines 515 747 747 698 636 653 622 582 606 635 50 Thailand 247 333 333 252 244 249 215 223 244 274 51 Middle East oil-exporting countries3 4,633 4,623 6,461 7,286 8,127 7,198 7,741 8,109 8,041 52 Other4 1,202 813 844 867 1,122 1,376 1,276 1,540 1,403 1,416 53 Africa 1,056 3,551 3,551 3,373 3,473 3,469 3,076 2,782- 2,296 2,299 54 Egypt 35 103 103 343 236 200 186 213 171 333 55 Morocco 11 38 38 68 60 107 80 85 72 88 56 South Africa 114 130 130 169 123 164 165 183 132 143 57 Zaire 87 84 84 63 45 36 37 45 64 35 58 Oil-exporting countries 5 2,814 2,814 2,239 2,443 2,368 2,075 1,732 1,321 1,113 59 Other4 808 383 383 491 567 593 533 524 537 587 60 Other countries 3,190 2,831 2,831 2,128 2,296 2,087 1,824 1,763 1,598 2,019 61 Australia 3,131 2,742 2,742 2,014 2,185 1,964 1,711 1,645 1,486 1,911 62 All other 59 89 89 114 111 122 114 119 112 108 63 Nonmonetary international and regional organizations 1,955 3,171 3,171 5,293 5,671 5,649 5,966 5,102 5,506 5,391 64 International 1,627 2,900 2,900 5,064 5,383 5,285 5,613 4,717 5,109 5,055 65 Latin American regional 272 202 202 187 176 168 154 182 160 133 66 Other regional6 57 69 69 42 112 196 199 203 237 203 For notes see bottom of p. A59. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A59 3.17 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States Supplemental "Other" Countries 1 Millions of dollars end of period 1974 1976 1974 1976 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec, Apr. Apr. Other Western Europe: Other Asia: 1 Cyprus 10 7 17 6 25 Afghanistan 11 18 19 41 54 2 3 I I r c e e l l a a n n d d , Republic of.. 5 1 3 1 2 2 1 9 2 2 0 9 7 3 5 3 39 2 2 6 7 B B a u n rm gl a a desh 4 1 2 2 2 65 1 5 4 0 9 5 3 4 1 '34' 28 Cambodia 4 4 4 4 Other Eastern Europe: 29 Jordan 6 22 30 39 20 Bulgaria 6 36 13 19 13 30 Laos 3 3 5 2 2 Czechoslovakia 19 34 11 32 10 31 Lebanon 68 126 180 117 German Democratic Republic. 3 36 18 17 3 32 Malaysia 40 63 92 77 105 Hungary 8 14 11 13 10 33 Nepal 21 25 22 28 34 Poland 36 55 42 66 65 34 Pakistan 108 91 118 74 89 Rumania 16 25 14 44 28 35 Singapore 165 245 215 256 36 Sri Lanka (Ceylon) 13 14 13 13 9 Other Latin American republics: 37 Vietnam 98 126 70 62 33 10 Bolivia 102 96 93 110 104 11 Costa Rica 88 118 120 124 69 Other Africa: 12 Dominican Republic 137 128 214 169 149 38 Ethiopia (incl. Eritrea), 118 95 76 60 13 Ecuador 90 122 157 120 39 Ghana 22 18 13 23 14 El Salvador 129 129 144 171 128 40 Ivory Coast 13 7 11 62 15 Guatemala 245 219 255 260 177 41 Kenya 20 31 32 19 37 16 Haiti 28 35 34 38 33 42 Liberia 29 39 33 53 61 17 Honduras 71 88 92 99 69 43 Southern Rhodesia 1 2 3 1 18 Jamaica 52 69 62 41 49 44 Sudan 2 4 14 12 17 19 Nicaragua 119 127 125 133 89 45 Tanzania 12 11 21 30 18 20 Paraguay 40 46 38 43 43 46 Tunisia 17 19 23 29 33 21 Surinam2 12 47 Uganda 11 13 38 22 22 Trinidad and Tobago 21 107 31 131 48 Zambia 66 22 18 78 Other Latin America: All Other: 23 Bermuda 201 116 100 170 49 New Zealand 33 47 36 42 29 24 British West Indies. 354 449 627 ,311 1 Represents a partial breakdown of the amounts shown in the "Other" 2 Surinam included with Netherlands Antilles until January 1976. categories on Table 3.16. 3.18 LONG-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States Millions of dollars end of period 1976 Holder, and area or country 1973 1974 1975 June July Aug. Sept. Oct. Nov.* Dec.f 1 Total. 1,462 1,285 1,812 2,255 2,308 2,254 2,218 2,315 2,310 2,382 2 Nonmonetary international and regional organizations 761 822 415 189 235 246 214 333 308 259 3 Foreign countries 700 464 1,397 2,066 2,073 2,008 2,003 1,983 2,003 2,123 4 Official institutions, including central banks. 310 124 931 1,490 1,479 1,402 1,386 1,314 1,313 1,329 5 Banks, excluding central banks 291 261 364 435 451 457 458 499 524 597 6 Other foreigners 100 79 100 141 143 149 159 170 165 196 Area or country: 7 Europe 470 226 330 459 463 470 470 489 507 538 8 Germany 159 146 214 308 307 311 312 310 309 313 9 United Kingdom. 66 59 66 89 92 91 99 125 132 10 Canada 19 23 24 26 26 26 28 26 29 11 Latin America. 132 115 140 107 117 122 125 151 152 230 12 Middle East oil-exporting countries1 894 1,458 1,448 1,369 1,340 1,2 86 1,239 1,251 13 Other Asia2 "82 16 17 20 41 27 77 73 14 African oil-exporting countries3. 15 Other Africa4 16 All other countries. 1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 4 Includes African oil-exporting countries until December 1974. and United Arab Emirates (Trucial States). 2 Includes Middle East oil-exporting countries until December 1974. NOTE.—Long-term obligations are those having an original maturity 3 Comprises Algeria, Gabon, Libya, and Nigeria. of more than 1 year. NOTES TO TABLE 3.16: 1 Includes Bank for International Settlements. 6 Asian, African, and European regional organizations, except BIS, 2 Surinam included with Netherlands Antilles until January 1976. which is included in "Other Western Europe." 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 7 Data in the two columns shown for this date differ because of changes and United Arab Emirates (Trucial States). in reporting coverage. Figures in the first column are comparable with 4 Includes oil-exporting countries until December 1974. those shown for the preceding date; figures in the second column are 5 Comprises Algeria, Gabon, Libya, and Nigeria. comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 International Statistics • February 1977 3.19 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States By Country Millions of dollars; end of period 1976 Area and country 1973 1974 1975 June July Aug. Sept. Oct. NOV.P Dec.? 1 Total 20,723 39,056 50,240 57,965 59,332 58,016 60,317 60,986 64,190 68,782 2 Foreign countries. 20,723 39,055 50,238 57,964 59,331 58,015 60,305 60,981 64,184 68,742 3 Europe 3,970 6,255 8,987 9,567 10,003 9,487 9,436 10,435 10,887 12.133 4 Austria 11 21 15 35 24 24 47 42 54 44 5 Belgium-Luxembourg.. 147 384 352 537 562 472 437 504 501 662 6 Denmark 48 46 49 62 68 50 57 64 129 86 7 Finland 108 122 128 125 133 176 129 137 136 141 8 France 621 673 1,471 1,145 1,100 929 1,169 1,096 1,098 1,447 9 Germany 311 589 436 384 432 414 501 585 667 563 10 Greece 35 64 49 53 70 68 117 88 76 79 11 Italy 316 345 370 552 644 617 648 733 877 928 12 Netherlands 133 348 300 318 251 266 254 399 240 307 13 Norway 72 119 71 71 74 78 68 79 85 85 14 Portugal 23 20 16 40 53 57 55 46 53 65 15 Spain 222 196 249 285 302 239 265 264 304 431 16 Sweden 153 180 167 106 97 143 106 101 93 267 17 Switzerland 176 335 237 401 374 442 417 499 510 472 18 Turkey 10 15 86 99 81 77 80 125 140 158 19 United Kingdom 1,459 2,580 4,718 5,074 5,435 5,167 4,844 5,376 5,591 6,064 20 Yugoslavia 10 22 38 45 45 40 28/ 37 38 45 21 Other Western Europe. 25 22 .27 57 42 50 56 54 58 56 22 U.S.S.R 46 46 103 70 69 53 52 83 103 97 23 Other Eastern Europe.. 44 131 108 110 147 125 107 123 134 136 24 Canada 1,955 2,776 2,817 3,166 3,027 3,050 3,169 3,129 3,136 3,097 25 Latin America 5,900 12,377 20,540 27,030 28,477 27,614 30,042 29,275 31,628 33,694 26 Argentina 499 720 1,203 1,149 1,149 1,149 961 902 858 962 27 Bahamas 883 3,405 7,577 11,466 12,381 11,532 14,192 12,587 14,616 15,197 28 Brazil 900 1,418 2,221 2,700 2,633 2,773 2,892 3,125 3,267 3,385 29 Chile 151 290 360 342 364 / 352 343 350 358 393 30 Colombia 397 713 689 534 537 / 501 459 517 523 574 31 Cuba 12 14 13 16 13 13 13 13 14 13 32 Mexico 1,373 1,972 2,804 3,494 3,562 3,559 3,456 3,211 3,298 3,214 33 Panama 274 505 1,052 840 697 778 809 1,119 780 1,031 34 Peru 178 518 583 623 665 666 694 638 630 688 35 Uruguay 55 63 51 34 31 31 28 28 35 37 36 Venezuela 518 704 1,086 1,153 1,237 1,503 1,305 1,338 1,512 1,552 37 Other American republics. 493 852 967 980 1,059 978 1,112 1,037 1,069 1,153 38 Netherlands Antilles1 13 62 49 33 28 29 42 41 46 40 39 Other Latin America 154 1,142 1,885 3,667 4,121 3,751 3,737 4,369 4,620 5,457 40 Asia. 8,224 16,226 16,057 16,240 15,898 15,832 15,695 16,099 16,516 17,763 41 China People's Republic of (Mainland) 31 4 22 10 12 4 4 5 3 3 42 China, Republic of (Taiwan) 140 500 737 863 908 939 981 991 1,099 996 43 Hong Kong 147 223 258 273 296 251 252 208 267 361 44 India 16 14 21 38 36 36 33 64 48 41 45 Indonesia 88 157 102 160 125 108 119 117 120 76 46 Israel 155 255 491 315 269 257 313 320 330 554 47 Japan 6,398 12,518 10,776 10,389 10,340 10,116 10,220 10,534 10,429 10,992 48 Korea 403 955 1,561 1,713 1,614 1,551 1,594 1,555 1,577 1,720 49 Philippines 181 372 384 524 389 459 472 478 495 560 50 Thailand 273 458 499 490 465 437 434 415 414 418 51 Middle East oil-exporting countries2 330 524 746 780 836 721 765 1,082 1,312 52 Other3 392 441 684 719 665 838 552 647 653 731 53 Africa 388 855 1,228 1,314 1,310 1,395 1,332 1,382 1,394 1,491 54 Egypt 35 111 101 117 117 115 114 106 109 133 55 Morocco 5 18 9 21 18 15 17 8 15 13 56 South Africa 129 329 545 689 698 695 691 772 748 767 57 Zaire 61 98 34 28 24 24 23 14 25 29 58 Oil-exporting countries4. 115 231 181 185 268 176 215 213 256 59 Other3 158 185 308 279 269 277 312 267 284 293 60 Other countries., 286 565 609 647 617 638 631 661 625 565 61 Australia 243 466 535 548 542 553 521 558 502 467 62 All other 43 99 73 100 74 85 110 103 123 98 63 Nonmonetary international and regional organizations 1 * 1 1 1 12 6 6 39 1 Includes Surinam until January 1976. 3 Includes oil-exporting countries until December 1974. 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 4 Comprises Algeria, Gabon, Libya, and Nigeria. and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A61 3.20 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States By Type of Claim Millions of dollars; end of period 1976 TTyyppee 11997733 11997744 11997755 June July Aug. Sept. Oct. Nov.® Dec.® 1 Total 20,723 39,056 50,240 57,965 59,332 58,016 60,317 60,986 64,190 68,782 2 Payable in dollars 20,061 37,859 48,910 56,370 57,875 56,474 58,661 59,282 62,385 67,160 3 Loans, total 7,660 11,296 13,247 15,190 15,597 15,266 14,914 16,221 16,342 18,300 4 Official institutions, including central banks 284 381 613 820 737 1,016 793 1,060 1,419 1,455 5 Banks, excluding central banks 4,538 7,337 7,705 9,130 9,670 9,059 9,003 10,067 9,614 11,002 6 All other, including nonmonetary international and regional organizations 2,838 3,579 4,928 5,240 5,190 5,191 5,118 5,144 5,303 5,803 7 Collections oustanding 4,307 5,637 5,467 5,517 5,542 5,495 5,746 5,586 5,731 5,947 8 Acceptances made for accounts of foreigners... 4,160 11,237 11,147 11,541 11,451 11,144 11,213 11,461 11,422 12,371 9 Other claims1 3,935 9,689 19,049 24,123 25,285 24,568 26,789 26,015 28,890 30,542 10 Payable in foreign currencies 662 1,196 1,329 1,595 1,457 1,542 1,656 1,704 1,805 1,622 11 Deposits with foreigners. 428 669 656 954 850 903 1,029 1,052 1,084 1,039 12 Foreign government securities, commercial and finance paper 119 289 301 158 132 143 120 102 85 84 13 Other claims 115 238 372 484 475 496 507 550 635 498 1 Includes claims of U.S. banks on their foreign branches and claims made to, and acceptances made for, foreigners; drafts drawn against of U.S. agencies and branches of foreign banks on their head offices and foreigners, where collection is being made by banks and bankers for foreign branches of their head offices. 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. 3.21 LONG-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States Millions of dollars outstanding; end of period 1976 Type, and area or country 1973 1974 1975 June July Aug. Sept. Oct. Nov.® Dec.® 1 Total 5,996 7,179 9,540 10,216 10,386 10,960 11,205 11,345 11,613 11,666 By type: 2 Payable in dollars 5,924 7,099 9,423 10,094 10,253 10,827 11,064 11,206 11,457 11,510 3 Loans, total 5,446 6,490 8,489 8,957 9,098 9,603 9,552 9,670 9,831 9,906 4 Official institutions, including central banks 1,156 1,324 1,350 1,346 1,323 1,340 1,312 1,323 1,370 I, All 5 Banks, excluding central banks 591 929 11,,774400 1,961 2,085 2,220 2,039 2,115 2,163 2,181 6 All other, including nonmonetary international and regional organizations 3,698 4,237 5,399 5,650 5,690 6,043 6,201 6,232 6,297 6,298 7 Other long-term claims 478 609 934 1,138 1,155 1,224 1,512 1,536 1,629 1,605 8 Payable in foreign currencies 72, 80 116 121 133 133 142 139 154 156 By area or country: 9 Europe 1,271 1,908 2,708 2,741 2,871 3,093 3,133 3,191 3,287 3,239 10 Canada 490 501 555 590 575 592 623 570 590 586 11 Latin America 2,116 2,614 3,468 4,081 4,103 4,383 4,519 4,565 4,694 4,793 12 Asia 1,582 1,619 1,795 1,766 1,810 1,835 1,856 1,900 1,885 1,886 13 Japan 251 258 296 324* 337 355 370 381 368 391 14 Middle East oil-exporting countries1 384 220 182 183 187 171 171 141 146 15 Other Asia2 1,331 977 1,279 1,260 1,290 1,293 1,316 1,348 1,382 1,349 16 Africa 355 366 747 736 742 771 800 839 888 884 17 Oil-exporting countries3 62 151 197 212 226 236 259 269 264 18 Other4 355 305 596 539 529 544 564 580 619 620 19 A11 other countries 5 181 171 235 301 286 287 274 281 270 278 1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 3 Comprises Algeria, Gabon, Libya, and Nigeria. and United Arab Emirates (Trucial States). 4 Includes oil-exporting countries until December 1974. 2 Includes Middle East oil-exporting countries until December 1974. 5 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 International Statistics • February 1977 3.22 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars; end of period 1976 Asset account 1973 1974 1975 May June July Aug.r Sept.r Oct. Nov.f All foreign countries 1 Total, all currencies 121,866 151,905 176,493 194,592 194,481 196,770 196,097 199,764 206,216 207,274 2 Claims on United States 5,091 6,900 6,743 9,610 6,613 8,703 6,973 6,628 10,133 7,556 3 Parent bank 1,886 4,464 3,665 6,450 3,272 5,569 3,927 3,247 7,028 4,280 4 Other 3,205 2,435 3,078 3,160 3,341 3,134 3,046 3,381 3,105 3,276 5 Claims on foreigners 111,974 138,712 163,391 178,215 181,239 181,233 182,428 186,114 188,968 192,510 6 Other branches of parent bank 19,177 27,559 34,508 39,982 40,975 41,682 40,959 41,133 41,523 42,693 7 Other banks 56,368 60,283 69,206 73,611 74,400 71,760 71,801 74,790 76,131 77,158 8 Official institutions 2,693 4,077 5,792 7,717 7,814 8,444 8,766 9,208 9,205 9,540 9 Nonbank foreigners 33,736 46,793 53,886 56,905 58,049 59,347 60,902 60,983 62,109 63,120 10 Other assets 4,802 6,294 6,359 6,767 6,629 6,834 6,695 7,022 7,115 7,207 11 Total payable in U.S. dollars 79,445 105,969 132,901 146,438 145,994 149,065 147,200 150,394 155,854 156,317 12 Claims on United States 4,599 6,603 6,408 9,294 6,296 8,434 6,659 6,268 9,789 7,213 13 Parent bank 1,848 4,428 3,628 6,374 3,203 5,524 3,888 3,184 6,984 4,217 14 Other 2,751 2,175 2,780 2,921 3,093 2,910 2,771 3,085 2,805 2,996 15 Claims on foreigners 73,018 96,209 123,496 133,900 136,629 137,240 137,335 140,880 142,724 145,788 16 Other branches of parent bank.. 12,799 19,688 28,478 32,121 32,857 33,790 32,971 33,319 33,775 34,357 17 Other banks 39,527 45,067 55,319 57,532 58,856 56,597 56,422 58,877 59,239 60,229 18 Official institutions 1,777 3,289 4,864 6,553 6,611 7,148 7,606 7,906 7,885 8,289 19 Nonbank foreigners 18,915 28,164 34,835 37,695 38,304 39,704 40,337 40,778 41,824 42,913 20 Other assets 1,828 3,157 2,997 3,243 3,070 3,392 3,206 3,246 3,342 3,315 United Kingdom 21 Total, all currencies 61,732 69,804 74,883 75,926 74,460 73,494 73,229 73,589 76,854 77,249 22 Claims on United States 1,789 3,248 2,392 2,443 1,702 1,862 1,758 2,036 3,456 3,426 23 Parent bank 738 2,412 1,449 1,534 802 1,002 938 1,081 2,613 2,538 24 Other 1,051 776 943 909 900 860 821 955 843 888 25 Claims of foreigners 57,761 64,111 70,331 71,189 70,526 69,359 69,298 69,217 70,962 71,469 26 Other branches of parent bank. 8,773 12,724 17,557 18,619 18,143 18,843 18,044 17,745 18,158 17,949 27 Other banks 34,442 32,701 35,904 36,270 35,799 33,589 34,135 34,405 35,336 35,838 28 Official institutions 735 788 881 851 888 909 1,007 1,138 1,211 1,168 29 Nonbank foreigners 13,811 17,898 15,990 15,499 15,695 16,018 16,112 15,929 16,257 16,514 30 Other assets 2,183 2,445 2,159 2,294 2,233 2,273 2,173 2,335 2,436 2,354 31 Total payable in U.S. dollars 40,323 49,211 57,361 56,667 55,360 54,871 54,522 54,547 57,161 57,699 32 Claims on United States 1,642 3,146 2,273 2,322 1,614 1,780 1,658 1,902 3,324 3,313 33 Parent bank 730 2,468 1,445 1,519 795 997 934 1,064 2,606 2,523 34 Other 912 678 828 803 819 783 724 838 719 789 35 Claims on foreigners 37,817 44,694 54,121 53,467 52,900 52,250 52,006 51,782 52,912 53,532 36 Other branches of parent bank, 6,509 10,265 15,645 15,860 15,455 16,204 15,401 15,195 15,629 15,405 37 Other banks 23,389 23,716 28,224 27,218 27,066 25,370 25,826 25,866 26,421 27,000 38 Official institutions 510 610 648 635 631 659 799 862 912 817 39 Nonbank foreigners 7,409 10,102 9,604 9,754 9,747 10,018 9,980 9,859 9,950 10,311 40 Other assets 865 1,372 967 879 846 841 858 863 925 854 Bahamas and Caymans 41 Total, all currencies 23,771 31,733 45,203 57,247 57,118 59,913 SI,611 60,753 63,507 61,758 42 Claims on United States 2,210 2,464 3,229 5,884 3,716 5,835 3,554 3,330 5,464 2,892 43 Parent bank 317 1,081 1,477 3,950 1,636 3,864 1,641 1,257 3,490 766 44 Other 1,893 1,383 1,752 1,935 2,081 1,971 1,913 2,072 1,973 2,126 45 Claims on foreigners 21,041 28,453 41,040 50,040 52,363 52,898 52,933 56,255 56,806 57,634 46 Other branches of parent bank, 1,928 3,478 5,411 6,435 7,254 7,149 6,791 7,250 7,296 7,389 47 Other banks 9,895 11,354 16,298 20,173 21,205 20,669 20,217 22,447 22,136 22,438 48 Official institutions 1,151 2,022 3,576 5,091 5,160 5,699 5,929 6,059 6,040 6,485 49 Nonbank foreigners 8,068 11,599 15,756 18,342 18,744 19,381 19,995 20,498 21,334 21,322 50 Other assets 520 815 933 1,322 1,039 1,180 1,190 1,169 1,238 1,232 51 Total payable in U.S. dollars 21,937 28,726 41,887 53,545 53,365 56,076 53,520 56,600 59,217 57,672 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A63 3.22 Continued 1976 Liability account 1973 1974 1975 May June July Aug. Sept.r Oct. Nov.p All foreign countries 1 Total, all currencies 121,866 151,905 176,493 194,592 194,481 196,770 196,097 199,764 206,216 207,274 2 To United States 5,610 11,982 20,221 28,272 27,968 28,614 27,116 30,066 29,541 30,853 3 Parent bank 1,642 5,809 12,165 15,918 16,502 15,945 16,493 19,045 17,953 19,154 4 Other 3,968 6,173 8,057 12,354 11,467 12,669 10,623 11,020 11,588 11,699 5 To foreigners 111,615 132,990 149,815 160,261 160,364 161,543 162,635 163,241 169,928 169,782 6 Other branches of parent bank 18,213 26,941 34,111 38,994 39,969 41,061 40,064 40,115 41,040 40,259 7 Other banks 65,389 65,675 72,259 75,919 75,527 74,189 74.348 75,033 78,879 79,158 8 Official institutions 10,330 20,185 22,773 22,467 21,605 22,233 23,393 23,700 24,957 23,967 9 Nonbank foreigners 17,683 20,189 20,672 22,881 23,262 24,060 24,829 24,393 25,052 26,399 10 Other liabilities 4,641 6,933 6,456 6,059 6,148 6,612 6,346 6,458 6,747 6,638 11 Total payable in U.S. dollars 80,374 107,890 135,907 151,124 150,502 153,169 151,749 155,109 160,333 160,772 12 To United States 5,027 11,437 19,503 27,572 27,167 27,848 26,348 29,178 28,779 29,964 13 Parent bank 1,477 5,641 11,939 15,657 16,229 15,691 16,254 18,714 17,719 18,918 14 Other 3,550 5,795 7,564 11,914 10,938 12,157 10,094 10,464 11,060 11,046 15 To foreigners 73,189 92,503 112,879 120,445 120,145 121,944 122,148 122,638 128,250 127,491 16 Other branches of parent bank 12,554 19,330 28,217 31,661 32,758 33,850 32,687 32,919 33,848 32,566 17 Other banks 43,641 43,656 51,583 54,559 54,085 53,568 53,298 53,500 56,290 56,836 18 Official institutions 7,491 17,444 19,982 19,791 19,036 19,580 20,585 20,756 21,848 20,924 19 Nonbank foreigners 9,502 12,072 13,097 14,434 14,266 14,947 15,579 15,463 16,264 17,165 20 Other liabilities 2,158 3,951 3,526 3,107 3,190 3,377 3,252 3,294 3,304 3,317 United Kingdom 21 Total, all currencies 61,732 69,804 74,883 75,926 74,460 73,494 73,229 73,589 76,854 77,249 22 To United States 2,431 3,978 5,646 6,483 5,874 5,628 5,266 5,379 5,310 5,520 23 Parent bank 136 510 2,122 1,796 1,562 1,727 1,520 1,442 1,468 1,459 24 Other 2,295 3,468 3,523 4,687 4,312 3,901 3,746 3,938 3,842 4,061 25 To foreigners 57,311 63,409 67,240 67,212 66,536 65,594 65,883 66,026 69,151 69.368 26 Other branches of parent bank 3,944 4,762 6,494 7,030 7,288 6,927 6,668 6,788 6,826 6,783 27 Other banks 34,979 32,040 32,964 33,189 33,313 31,487 30,834 31,015 32,488 33,690 28 Official institutions 8,140 15,258 16,553 15,782 14,825 15,462 16,147 16,389 17,567 16,181 29 Nonbank foreigners 10,248 11,349 11,229 11,212 11,110 11,718 12,234 11,834 12,270 12,713 30 Other liabilities 1,990 2,418 1,997 2,231 2,050 2,272 2,080 2,184 2,394 2,360 31 Total payable in U.S. dollars 39,689 49,666 57,820 57,923 56,574 55,978 55,701 55,625 58,031 58,757 32 To United States 2,173 3,744 5,415 6,271 5,682 5,443 5,093 5,183 5,152 5,330 33 Parent bank 113 484 2,083 1,759 1,546 1,703 1,498 1,404 1,448 1,447 34 Other 2,060 3,261 3,332 4,513 4,136 3,740 3,595 3,779 3,704 3,883 35 To foreigners 36,646 44,594 51,447 50,727 50,044 49,691 49,746 49,579 52,017 52,503 36 Other branches of parent bank 2,519 3,256 5,442 5,863 6,218 5,878 5,604 5,790 5,742 5,520 37 Other banks 22,051 20,526 23,330 22,544 22,690 21,765 20,910 20,526 21,493 23,040 38 Official institutions 5,923 13,225 14,498 13,914 13,074 13,604 14,296 14,418 15,550 14,283 39 Nonbank foreigners 6,152 7,587 8,176 8,406 8,062 8,444 8,936 8,846 9,233 9,660 40 Other liabilities 870 1,328 959 925 848 844 862 862 862 924 Bahamas and Caymans 41 Total, all currencies 23,771 31,733 45,203 57,247 57,118 59,913 57,677 60,753 63,507 61,758 42 To United States 1,573 4,815 11,147 18,286 18,286 19,370 18,237 21,308 20,734 21,246 43 Parent bank 307 2,636 7,628 11,529 12,203 11,611 12,311 15,333 14,094 14,899 44 Other 1,266 2,180 3,520 6,757 6,083 7,759 5,927 5,975 6,640 6,347 45 To foreigners 21,747 26,140 32,949 38,112 37,817 39,411 38,380 38,411 41,815 39,515 46 Other branches of parent bank, 5,508 7,702 10,569 11,918 12,117 13,317 12,416 11,854 13,381 11,548 47 Other banks 14,071 14,050 16,825 20,303 19,724 20,350 20,125 20,621 22,240 20,908 48 Official institutions 492 2,377 3,308 2,950 2,917 2,811 2,857 2,712 2,784 3,198 49 Nonbank foreigners 1,676 2,011 2,248 2,941 3,059 2,933 2,982 3,224 3,409 3,861 50 Other liabilities 451 778 1,106 849 1,016 1,131 1,059 1,035 958 997 51 Total payable in U.S. dollars 22,328 28,840 42,197 54,160 53,834 56,636 54,154 57,232 59,970 58,244 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 International Statistics • February 1977 3.23 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1976 Country or area 11997744 11997755 11997766 June July Aug. Sept. Oct. Nov.® Dec.® Holding, end of period4 I 1 Estimated total. . 5,708 7,703 10,608 11,419 12,147 13,462 14,482 15,058 15,792 2 Foreign countries. 5,557 7,372 10,026 10,350 10,746 11,671 11,954 12,337 12,763 3 Europe 885 1,085 1,566 1,604 1,733 2,024 2,064 2,293 2,329 4 Belgium-Luxembourg.. 10 13 12 11 9 9 13 14 14 5 Germany 9 215 227 221 324 518 535 746 764 6 Netherlands 6 16 283 283 283 282 283 288 288 7 Sweden 251 276 291 291 275 240 242 192 191 8 Switzerland 30 55 101 132 171 268 267 291 261 9 United Kingdom 493 363 380 368 383 396 403 433 485 10 Other Western Europe. 81 143 268 294 284 307 317 325 321 11 Eastern Europe 5 4 4 4 4 4 4 4 4 12 Canada. 713 395 340 341 337 386 390 250 256 13 Latin America 100 200 182 203 271 178 160 302 312 14 Latin American republics. 12 33 34 39 39 30 36 111 184 15 Netherlands Antilles1 83 161 141 157 222 138 113 115 118 16 Asia. 3,709 5,370 7,466 7,701 7,883 8,552 8,808 8,950 9,323 17 Japan. 3,498 3,271 3,075 3,077 2,952 3,052 3,093 2,587 2,687 18 Africa 151 321 471 501 521 531 531 543 543 19 All other. * * * * I* * * * • 20 Nonmonetary international and regional organizations 151 331 582 1,068 1,401 1,791 2,528 2,721 3,028 21 International 97 322 582 1,065 1,388 1,768 2,504 2,655 2,905 22 Latin American regional. 53 9 * 3 13 23 23 66 123 Transactions, net purchases, or sales (—), during period 23 Total -472 1,994 8,089 1,205 810 729 1,315 1,019 577 734 24 Foreign countries. -573 1,814 5,392 772 324 396 925 283 383 427 25 Official institutions. -642 1,612 5,116 717 294 316 964 227 340 421 26 Other foreign 69 202 276 55 31 80 -39 56 43 6 27 Nonmonetary international and regional organizations 101 180 2,698 434 486 333 390 736 193 307 MEMO: Oil-exporting countries 28 Middle East2 1,797 3,876 611 246 228 315 98 630 29 Africa3 170 221 40 30 20 10 11 1 Includes Surinam until January 1976. 4 Estimated official and private holdings of marketable U.S. Treasury 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, securities with an original maturity of more than 1 year. Data are based and United Arab Emirates (Trucial States). Data not available until 1975. on a benchmark survey of holdings as of Jan. 31, 1971, and monthly 3 Comprises Algeria, Gabon, Libya, and Nigeria. Data not available transactions reports. Excludes nonmarketable U.Sf. Treasury bonds and until 1975. notes held by official institutions of foreign countries. 3.24 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars outstanding, end of period 1976 1977 Assets 1973 1974 1975 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Deposits 251 418 352 295 254 393 362 305 352 383 Assets held in custody: 2 U.S. Treasury securities1 52,070 55,600 60,019 62,955 63,457 64,215 64,942 63,962 66,532 66,992 3 Earmarked gold2 17,068 16,838 16,745 16,607 16,565 16,590 16,505 16,457 16,414 16,343 1 Marketable U.S. Treasury bills, certificates of indebtedness, notes, NOTE.—Excludes deposits and U.S. Treasury securities held for interand bonds; and nonmarketable U.S. Treasury securities payable in dollars national and regional organizations. Earmarked gold is gold held for and in foreign currencies. foreign and international accounts and is not included in the gold stock 2 The value of earmarked gold increased because of the changes in of the United States. par value of the U.S. dollar in May 1972 and in October 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment transactions A65 3.25 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1976 Transactions, and area or country 1974 1975 1976 June July Aug. Sept. Oct. Nov.f Dec.p U.S. corporate securities3 Stocks; 1 Foreign purchases 7,636 15,347 18,188 1,432 1,595 1,050 11,,112244 11,,222266 977 1,544 2 Foreign sales 7,096 10,678 15,449 1,178 1,363 962 1,116 1,321 1,025 1,269 3 Net purchased, or sales (—) 540 4,669 2,740 254 232 88 9 -95 -49 275 4 Foreign countries 527 4,651 2,727 252 233 85 7 -98 -50 281 5 281 2,491 332 -47 -32 -19 -60 -251 -118 111 6 203 262 215 24 72 28 23 -12 -25 37 7 Germany 39 251 83 -27 -20 -11 -6 -16 -13 24 8 Netherlands 330 359 -201 2 -22 -21 -26 -37 -29 -35 9 Switzerland 36 899 -104 -47 -58 -11 -55 -95 -44 -7 10 United Kingdom -377 594 340 20 5 12 29 -72 -5 84 11 Canada -6 361 305 -5 44 35 5 18 1 60 1? Latin America -33 -7 157 11 3 -24 10 -17 25 1 13 Middle East1 1,640 1,803 266 209 92 60 126 64 115 14 Other Asia2 288 142 117 20 10 -2 -4 28 -23 9 15 Africa. -6 10 9 3 -3 3 -4 -3 1 2 16 Other countries 3 15 -4 3 1 2 * 1 * -17 17 Nonmonetary international and regional organizations 13 18 1122 2 -2 3 2 4 2 -6 Bonds 3: 18 Foreign purchases 8,571 5,393 5,523 391 307 411 361 625 355 533 19 Foreign sales 7,582 4,641 4,306 155 154 232 375 386 356 524 20 Net purchases, or sales (—) 988 752 1,217 236 153 179 -14 239 -1 9 21 Foreign countries 1,472 1,782 1,382 236 161 173 -9 203 113 6 22 Europe 741 106 91 29 49 29 -16 -10 24 53 23 France 96 82 38 6 10 4 -1 -1 5 7 24 Germany 33 -11 -48 -1 -3 -3 * 5 4 1 25 Netherlands 183 15 28 -2 4 -3 * -5 3 -20 26 Switzerland 96 117 158 18 35 16 -7 -2 -3 13 27 United Kingdom 395 87 22 8 3 23 7 * 15 54 28 Canada 45 128 94 1 2 9 18 -1 16 7 29 Latin America 43 31 93 * 7 9 5 29 6 27 30 Middle East1 1,553 1,178 224 104 121 18 156 74 -21 31 Other Asia2 632 -42 -158 -19 -2 5 -15 3 -5 -43 32 Africa * 5 -26 * 1 * -19 -2 -2 -14 33 Other countries 10 1 -22 * * * * * * -2 34 Nonmonetary international and regional organizations -483 -1,030 --3388 * -8 6 -4 6644 --111155 3 Foreign securities 35 Stocks, net purchases, or sales (—) 184 -189 -334 -44 -129 -11 -27 -1 -1 -9 36 Foreign purchases 1,907 1,541 1,912 162 128 i23 126 132 167 194 37 Foreign sales 1,723 1,730 2,247 206 257 134 153 133 168 203 38 Bonds, net purchases, or sales ( —) -2,218 -6,301 8,475 -532 -1,734 -478 -427 -367 -400 -1,256 39 Foreign purchases 1,036 2,383 4,932 281 440 333 363 452 455 670 40 Foreign sales 3,254 8,683 13,406 813 2,173 811 790 819 855 1,926 41 Net purchases, or sales (—) of stocks and bonds.. -2,034 -6,490 8,818 -576 -1,862 -489 -454 -369 -402 -1,265 42 Foreign countries -1,974 -4,299 -6,920 -582 -1,044 -423 -471 -282 -270 -736 43 Europe -546 -53 -836 -52 -130 -60 -145 -37 -10 -139 44 Canada. -1,508 -3,178 -511 -328 -853 -98 -331 -301 -26 -640 45 Latin America -93 -306 9 10 19 47 20 13 -28 37 46 Asia 142 -622 -615 12 -93 -317 -16 34 -10 1 47 Africa 7 15 56 11 9 1 * 1 * 2 48 Other countries 22 -155 -416 -234 3 3 2 9 -197 3 49 Nonmonetary international and regional organizations -60 -2,192 --11,,889988 6 -819 --6666 1177 --8877 --113322 --552299 1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, 3 Includes State and local government securities, and securities of U.S. Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial Govt, agencies and corporations. Also includes issues of new debt securities States). sold abroad by U.S. corporations organized to finance direct investment 2 Includes Middle East oil-exporting countries until 1975. abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 International Statistics • February 1977 3.26 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars; end of period 1974 1975 1976 1974 1975 1976 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy Dec. Dec. Mar. June Sept.® Dec.r Dec.r Mar.r June Sept.® Liabilities to foreigners Claims on foreigners 1 5,927 6,010 6,326 6,301 6,335 11,266 12,172 12,733 13,899 13,220 By type: 2 Payable in dollars 5,017 5,393 5,659 5,663 5,696 10,241 11,025 11,688 12,895 12,173 3 Payable in foreign currencies 910 617 667 638 639 1,024 1,146 11,,004455 994 11,,004488 4 Deposits with banks abroad in reporter's 473 565 483 501 505 5 Other 555511 558811 556622 449933 554433 By area or country: 6 Foreign countries 5,769 5,734 6,108 6,056 6,149 11,265 12,171 12,732 13,888 13,220 7 Europe 3,016 2,338 2,342 2,284 2,282 4,450 4,504 4,946 5,344 5,162 8 Austria 20 14 6 13 16 26 16 17 17 21 9 Belgium-Luxembourg 524 299 296 233 181 128 133 116 193 195 10 Denmark 24 9 12 12 13 42 39 35 30 26 11 Finland 16 14 10 7 21 120 91 36 138 139 12 France 202 149 205 159 185 428 293 358 365 418 13 Germany 313 149 152 228 256 335 355 305 360 489 14 Greece 39 19 25 29 28 65 33 41 Al 56 15 Italy 124 172 124 115 126 395 380 406 335 357 16 Netherlands 117 114 162 170 141 143 167 176 147 141 17 Norway 9 20 22 22 24 36 41 58 52 43 18 Portugal 19 4 3 3 5 81 44 45 22 28 19 Spain 56 81 68 51 36 367 407 516 432 335 20 Sweden 41 29 25 24 35 89 62 80 84 62 21 Switzerland 138 130 159 213 239 136 242 207 270 254 22 Turkey 8 25 14 20 16 26 27 26 31 23 23 United Kingdom 1,256 996 928 845 806 1,847 1,905 2,289 2,609 2,370 24 Yugoslavia 40 76 91 108 113 22 36 30 28 30 25 Other Western Europe 5 8 6 7 8 21 14 18 14 17 2 2 6 7 O U. t S h . e S r . R E astern Europe 4 1 8 6 2 1 0 1 2 1 3 0 1 1 0 6 1 1 9 4 9 5 1 0 1 7 5 0 0 1 8 0 0 6 9 7 6 5 7 8 9 1 28 Canada 307 295 316 373 332 1,613 2,109 2,244 2,211 2,224 29 Latin America 929 914 1,177 1,073 1,007 2,336 2,369 2,564 3,055 2,814 30 Argentina 38 36 41 42 41 67 58 48 43 39 31 Bahamas 374 277 376 330 251 594 667 883 1,150 924 32 Brazil 118 96 91 90 53 468 409 475 462 417 33 Chile 22 14 11 15 16 106 36 27 46 26 34 Colombia 14 17 16 19 11 54 49 Al 57 66 35 Cuba * * * * * 1 1 1 1 36 Mexico 60 82 92 72 74 308 362 331 332 352 37 Panama 28 24 17 14 11 132 92 86 103 84 38 Peru 14 23 24 26 28 44 41 37 39 35 39 Uruguay 2 3 2 3 3 5 4 4 4 22 40 Venezuela 49 100 163 184 222 193 178 156 186 215 41 Other Latin American republics 83 71 71 95 100 199 160 171 185 180 42 Netherlands Antilles 1 26 35 58 54 68 20 12 7 10 9 43 Other Latin America 101 138 214 130 129 147 301 292 437 445 44 1,237 1,719 1,699 1,749 2,024 2,326 2,634 2,493 2,729 22,,441188 45 China, People's Republic of (Mainland) 17 6 5 8 7 17 65 35 23 1111 46 China, Republic of (Taiwan) 92 97 110 124 129 138 164 100 215 136 47 Hong Kong 19 17 23 28 33 62 110 66 104 83 48 India 7 7 9 10 11 37 39 60 51 53 49 Indonesia 60 137 137 133 146 92 143 158 166 196 50 Israel 50 29 23 28 26 44 54 42 53 48 51 Japan 348 295 307 290 275 1,230 1,130 1,161 1,169 1,008 52 Korea 75 69 53 62 83 201 263 105 127 143 53 Philippines 25 14 18 18 28 97 96 106 114 93 54 Tahiland 10 18 18 11 23 24 22 20 19 22 55 Other Asia 536 1,031 995 1,038 1,263 384 549 640 691 625 56 Africa 193 395 508 532 437 374 414 351 391 422 57 Egypt 3 37 30 22 25 15 22 22 28 36 58 Morocco 14 8 7 32 42 7 10 10 12 9 59 South Africa 43 100 113 88 65 101 93 78 86 79 60 Zaire 18 6 7 12 24 24 28 28 30 33 61 Other Africa 115 245 351 377 281 227 261 213 235 267 62 Other countries 86 73 65 43 67 165 141 133 157 180 63 Australia 56 55 47 32 50 116 102 97 101 113 64 All other 30 17 18 12 18 49 39 36 56 67 65 Nonmonetary international and regional organizations 158 276 219 246 186 * 1 1 1 1 1 Includes Surinam until 1976. mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks and intercompany accounts NOTE.—Reported by exporters, importers, and industrial and com- between U.S. companies and their affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A67 3.27 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Large Nonbanking Concerns in the United States Millions of dollars; end of period 1976 Type and country 1973 1974 1975 May r June7" July Aug.r Sept. Oct.f Nov.* 3,164 3,357 3,791 5,204 4,949 5,185 5,142 4,750 4,869 5,133 By type: 2 Payable in dollars 2,625 2,660 3,035 4,516 4,315 4,552 4,538 4,075 4,284 4,597 3 Deposits 2,588 2,591 2,703 4,090 3,970 4,192 4,119 3,705 3,893 4,210 4 Short-term investments 1 37 69 332 426 345 360 419 370 391 387 5 Payable in foreign currencies 540 697 756 689 632 634 604 675 586 535 6 Deposits 435 429 510 452 432 431 377 447 344 308 7 Short-term investments 1 105 268 246 237 200 203 227 228 242 227 By country: 8 United Kingdom 1,118 1,350 1,304 1,915 1,915 2,068 2,082 1,712 1,641 1,691 9 Canada 765 967 1,153 1,521 1,276 1,415 1,397 1,356 1,400 1,563 10 Bahamas 589 390 546 1,035 1,029 918 823 810 1,059 1,059 11 Japan 306 398 343 245 190 139 137 146 116 135 12 All other 386 252 445 488 539 645 703 726 653 685 i Negotiable and other readily transferable foreign obligations payable NOTE.—Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 3.26. 3.28 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars; end of period 1974 1975 1976 1974 1975 1976 AArreeaa aanndd ccoouunnttrryy Dec. Dec. Mar. June? Sept.f Dec. Dec. Mar. June** Sept.? Liabilities to foreigners Claims on foreigners 1 Total 3,889 4,277 4,092 3,960 3,705 4,544 4,959 5,152 5,008 4,958 2 Europe 3,033 3,280 3,128 3,007 2,790 1,007 1,002 949 959 925 3 Germany 474 506 446 425 406 23 41 38 39 77 4 Netherlands 218 202 214 214 270 280 217 219 211 211 5 Sv/itzerland 572 505 466 448 308 44 55 52 52 50 6 United Kingdom 1,256 1,629 1,601 1,520 1,441 364 396 349 365 290 7 Canada 110 164 153 175 121 1,290 1,426 1,473 1,516 1,510 8 Latin America 216 269 248 222 230 1,384 1,633 1,770 1,602 1,547 9 Bahamas 177 210 184 157 132 19 8 7 37 37 10 Brazil 3 4 5 5 5 187 171 182 164 171 11 Chile 1 1 1 1 1 435 315 312 306 244 12 Mexico 3 3 6 6 7 153 216 209 187 219 13 Asia 460 496 496 489 498 681 669 685 709 736 14 Japan 367 397 394 388 402 112 90 91 85 80 15 Africa 6 2 2 2 2 127 168 214 163 181 16 All other i 65 66 65 64 64 54 60 62 59 58 i Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 International Statistics • February 1977 3.28 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate as of Rate as of Rate as of Jan. 31, 1977 Jan. 31, 1977 Jan. 31, 1977 Country Country Country Per Month Per Month Per Month cent effective cent effective cent effective Argentina 18.0 Feb.1972 France 10.5 Sept. 1976 Norway 6.0 Sept. 1976 Austria... 4.0 June 1976 Germany, Fed. Rep. of. 3.5 Sept. 1975 Sweden 8.0 Oct. 1976 Belgium. . 8.0 Jan. 1976 Italy 15.0 Oct. 1976 Switzerland 2.0 June 1976 Brazil 28.0 May 1976 Japan 6.5 Oct. 1975 United Kingdom 12.25 Jan. 1977 Canada.. 8.5 Dec. 1976 Mexico 4.5 June 1942 Venezuela 5.0 Oct. 1970 Denmark. 10.0 Dec. 1976 Netherlands 5.0 Jan. 1977 NOTE.—Rates shown are mainly those at which the central bank either more than one rate applicable to such discounts or advances, the rate discounts or makes advances against eligible commercial paper and/or shown is the one at which it is understood the central bank transacts the government securities for commercial banks or brokers. For countries with largest proportion of its credit operations. 3.29 FOREIGN SHORT-TERM INTEREST RATES Per cent per annum; averages of daily figures 1976 1977 Country, or type 1974 1975 1976 Aug. Sept. Oct. Nov. Dec. Jan. 1 Euro-dollars 11.01 7.02 5.58 5.68 5.53 5.46 5.29 5.01 5.14 2 United Kingdom. 13.34 10.63 11.35 11.07 12.11 14.57 14.75 14.27 13.53 3 Canada 10.47 8.00 9.39 9.54 9.40 9.34 9.08 8.51 8.24 4 Germany 9.80 4.87 4.19 4.51 4.57 4.76 4.61 4.82 4.70 5 Switzerland.. 3.01 1.45 1.17 1.40 1.80 2.12 1.98 1.24 6 Netherlands. 5.17 7.02 12.92 12.67 10.23 8.22 6.51 6.18 7 France 7.91 8.65 9.58 9.53 10.39 10.41 10.55 10.02 8 Italy 10.37 16.32 17.43 16.83 18.61 17.76 17.13 15.68 9 Belgium. 6.63 10.25 11.55 13.90 13.94 12.48 10.73 8.49 10 Japan... 11.64 7.70 7.75 7.50 7.50 8.00 8.00 7.50 NOTE.—Rates are for 3-month interbank loans except for—Canada, over; and Japan, loans and discounts that can be called after being held finance company paper; Belgium, time deposits of 20 million francs and over a minimum of two month-ends. 3.30 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1976 1977 CCoouunnttrryy//ccuurrrreennccyy 11997744 11997755 11997766 Aug. Sept. Oct. Nov. Dec. Jan. 1 Australia/dollar 143.89 130.77 122.15 124.18 124.25 123.40 120.66 105.29 108.53 2 Austria/shilling 5.3564 5.7467 5.5744 5.5645 5.6567 5.7960 5.8332 5.9061 5.8852 3 Belgium/franc 2.5713 2.7253 2.5921 2.5632 2.6046 2.6822 2.7047 2.7483 2.7249 4 Canada/dollar 102.26 98.30 101.41 101.49 102.56 102.81 101.46 98.204 98.985 5 Denmark/krone 16.442 17.437 16.546 16.448 16.694 16.968 16.934 17.145 16.967 6 Finland/markka 26.565 27.285 25.938 25.754 25.781 25.938 26.073 26.315 26.313 7 France/franc 20.805 23.354 20.942 20.131 20.334 20.072 20.042 20.055 20.108 8 Germany/deutsche mark... 38.723 40.729 39.737 39.538 40.169 41.165 41.443 41.965 41.792 9 India/rupee 12.460 11.926 11.148 11.143 11.036 11.243 11.155 11.296 11.231 10 Ireland/pound 234.03 222.16 180.48 178.28 172.72 163.77 163.81 167.84 171.24 11 Italy/lira .15372 .15328 .12044 .11936 .11837 .11684 .11554 .11521 .11372 12 Japan/yen .34302 .33705 .33741 .34410 .34800 .34344 .33879 .33933 .34359 13 Malaysia/ringgit 41.682 41.753 39.340 40.077 39.753 39.575 39.513 39.550 39.718 14 Mexico/peso 8.0000 8.0000 6.9161 8.0000 5.0286 4.8535 4.0200 4.8626 4.8114 15 Netherlands/guilder 37.267 39.632 37.846 37.393 38.390 39.265 39.678 40.240 39.953 16 New Zealand/dollar 140.02 121.16 99. 115 99.657 98.869 98.484 95.392 92.179 94.839 17 Norway/krone 18.119 19.180 18.327 18.150 18.427 18.812 18.954 19.193 18.946 18 Portugal/escudo 3.9506 3.9286 3.3159 3.1982 3.2062 3.1920 3.1742 3.1674 3.1276 19 South Africa/rand 146.98 136.47 114.85 114.84 114.77 114.85 114.88 114.95 114.94 20 Spain/peseta 1.7337 1.7424 1.4958 1.4651 1.4721 1.4675 1.4626 1.4634 1.4577 21 Sri Lanka/rupee 14.978 14.385 11.908 11.504 11.516 11.453 11.479 11.246 11.421 22 Sweden/krona 22.563 24.141 22.957 22.660 22.998 23.511 23.699 24.051 23.734 23 Switzerland/franc 33.688 38.743 40.013 40.302 40.431 40.876 40.958 40.823 40.127 24 United Kingdom/pound.. . 234.03 222.16 180.48 178.28 172.72 163.77 163.81 167.84 171.24 MEMO: 25 United States/dollar i 84.11 82.20 89.68 90.46 90.25 90.88 91.06 90.55 90.35 1 Index of weighted-average exchange value of U.S. dollar against cur- NOTE.—Averages of certified noon buying rates in New York for cable rencies of other G-10 countries plus Switzerland. May 1970 parities = 100. transfers. Weights are 1972 global trade of each of the 10 countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

69 Board of Governors and Staff are shown on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

DIVISION OF DIVISION OF CONSUMER AFFAIRS JAMES R. WETZEL, Associate Research FEDERAL RESERVE BANK OPERATIONS Division Officer JANET O. HART, Director JAMES M. BRUNDY, Assistant Research JAMES R. KUDLINSKI, Director NATHANIEL E. BUTLER, Associate Director Division Officer WALTER A. ALTHAUSEN, Assistant Director JERAULD C. KLUCKMAN, Associate Director JARED J. ENZLER, Assistant Research Division BRIAN M. CAREY, Assistant Director Officer HARRY A. GUINTER, Assistant Director ROBERT M. FISHER, Assistant Research OFFICE OF THE SECRETARY Division Officer DIVISION OF DATA PROCESSING RICHARD H. PUCKETT, Assistant Research THEODORE E. ALLISON, Secretary Division Officer CHARLES L. HAMPTON, Director GRIFFITH L. GARWOOD, Deputy Secretary STEPHEN P. TAYLOR, Assistant Research BRUCE M. BEARDSLEY, Associate Director *RUTH A. REISTER, Assistant Secretary Division Officer UYLESS D. BLACK, Assistant Director LEVON H. GARABEDIAN, Assistant Director GLENN L. CUMMINS, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF INTERNATIONAL FINANCE DIVISION OF PERSONNEL BRENTON C. LEAVITT, Director D CH A A V R ID L E L S . W SH . A W N O N O O D N , , A D ss i i r s e ta ct n o t r Director J W P O E I T H L E N L R IA E M E . . R W B Y A . A R N W N , I A L A , E s A s S o , s s c i A i s a t s t a s e n o c t ia D te D i r i e r c e t D c o t i r o r r e ctor J E R O D O H W B N E I N R E T . M F R . . E T G Y R E N U M O M L M A D IL N S, L , , A A S c s t s e i o n n c i g o i a r t e D I i n r t e D e c r i t n r o e a r c t t i o o r n al FREDERICK R. DAHL, Assistant Director Division Officer OFFICE OF THE CONTROLLER JACK M. EGERTSON, Assistant Director GEORGE B. HENRY, Senior International JOHN N. LYON, Assistant .Director Division Officer JOHN KAKALEC, Controller JOHN T. MCCLINTOCK, Assistant Director REED J. IRVINE, Senior International TYLER E. WILLIAMS, JR., Assistant Controller THOMAS E. MEAD, Assistant Director Division Officer THOMAS A. SIDMAN, Assistant Director THELEN B. JUNZ, Senior International Division DIVISION OF ADMINISTRATIVE SERVICES Officer SAMUEL PIZER, Senior International Division WALTER W. KREIMANN, Director *On loan from the Federal Reserve Bank of Minneapolis. Officer DONALD E. ANDERSON, Assistant Director CHARLES J. SIEGMAN, Associate International JOHN D. SMITH, Assistant Director Division Officer fOn leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 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 HARRY BRANDT, Associate Economist MURRAY ALTMANN, Deputy Secretary RICHARD G. DAVIS, Associate Economist NORM AND R. V. BERNARD, Assistant MICHAEL W. KERAN, Associate Economist Secretary JAMES L. KICHLINE, Associate Economist THOMAS J. O'CONNELL, General Counsel JAMES PARTHEMOS, Associate Economist EDWARD G. GUY, Deputy General Counsel JOHN E. REYNOLDS, Associate Economist BALDWIN B. TUTTLE, Assistant General JOSEPH S. ZEISEL, Associate Economist Counsel STEPHEN H. AXILROD, Economist (Domestic Finance) ALAN R. HOLMES, Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager for Domestic Operations SCOTT E. PARDEE, Deputy Manager for Foreign Operations Federal Advisory Council RICHARD D. HILL, FIRST FEDERAL RESERVE DISTRICT, President GILBERT F. BRADLEY, TWELFTH FEDERAL RESERVE DISTRICT, Vice President WALTER B. WRISTON, SECOND FEDERAL EDWARD BYRON SMITH, SEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ROGER S. HILL AS, THIRD FEDERAL DONALD E. LASATER, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT M. BROCK WEIR, FOURTH FEDERAL RICHARD H. VAUGHAN, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOHN H. LUMPKIN, FIFTH FEDERAL J. W. MCLEAN, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT FRANK A. PLUMMER, SIXTH FEDERAL BEN F. LOVE, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

73 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 Paul A. Miller John T. Keane PHILADELPHIA 19105 John W. Eckman David P. Eastburn Werner C. Brown 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 Robert C. Edwards 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 William H. Martin, III Hiram J. Honea Jacksonville 32203 Gert H. W. Schmidt Edward C. Rainey Miami 33152 David G. Robinson W. M. Davis Nashville 37203 John C. Bolinger Jeffrey J. Wells New Orleans 70161 George C. Cortright, Jr. 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 James C. Hendershot Donald L. Henry Memphis 38101 Frank A. Jones, Jr. L. Terry Britt MINNEAPOLIS 55480 James P. McFarland Vacant Stephen F. Keating Clement A. Van Nice Helena 59601 Patricia P. Douglas John D. Johnson KANSAS CITY 64198 Harold W. Andersen Roger Guffey Joseph H. Williams Henry R. Czerwinski Denver 80217 A. L. Feldman Wayne W. Martin Oklahoma City 73125 James G. Harlow, Jr. William G. Evans Omaha 68102 Durward B. Varner Robert D. Hamilton DALLAS 75222 Irving A. Mathews Ernest T. Baughman Charles T. Beaird Robert H. Boykin El Paso 79999 Gage Holland Fredric W. Reed Houston 77001 Alvin I. Thomas J. Z. Rowe San Antonio 78295 Marshall Boykin, III Carl H. Moore SAN FRANCISCO ... .94120 Joseph F. Alibrandi John J. Balles Cornell C. Maier 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 74 Federal Reserve Board Publications Available from Publications Services, Division of Ad- request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed- of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND THE PERFORMANCE OF BANK HOLDING COMPANIES. FUNCTIONS. 1974. 125 pp. $1.00 each; 10 or more 1967. 29 pp. $.25 each; 10 or more to one address, to one address, $.75 each. $.20 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. ANNUAL REPORT 102 pp. $1.00 each; 10 or more to one address, FEDERAL RESERVE BULLETIN. Monthly. $20.00 per $.85 each. year or $2.00 each in the United States, its posses- SURVEY OF FINANCIAL CHARACTERISTICS OF CONsions, Canada, and Mexico; 10 or more of same SUMERS. 1966. 166 pp. $1.00 each; 10 or more issue to one address, $18.00 per year or $1.75 to one address, $.85 each. each. Elsewhere, $24.00 per year or $2.50 each. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 BANKING AND MONETARY STATISTICS, 1914-1941. pp. $1.00 each; 10 or more to one address, $.85 (Reprint of Part 1 only) 1976. 682 pp. $5.00. each. BANKING AND MONETARY STATISTICS, 1941-1970. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE 1976. 1,168 pp. $15.00. STUDY OF THE U.S. GOVERNMENT SECURITIES ANNUAL STATISTICAL DIGEST, 1970-75. 1976. 339 pp. MARKET. 1969. 48 pp. $.25 each; 10 or more to $4.00 per copy for each paid subscription to Fed- one address, $.20 each. eral Reserve Bulletin. All others, $5.00 each. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- GOVERNMENT SECURITIES MARKET: STAFF STUDtion includes one issue of Historical Chart Book. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more $12.00 per year or $1.25 each in the United States, to one address, $.40 each. PART 2. 1971. 153 pp. its possessions, Canada, and Mexico; 10 or more and PART 3. 1973. 131 pp. Each volume $1.00; of same issue to one address, $1.00 each. Else- 10 or more to one address, $.85 each. where, $15.00 per year or $1.50 each. OPEN MARKET POLICIES AND OPERATING PROCE- HISTORICAL CHART BOOK. Issued annually in Sept. DURES—STAFF STUDIES. 1971. 218 pp. $2.00 Subscription to Monthly Chart Book includes one each; 10 or more to one address, $1.75 each. issue. $1.25 each in the United States, its posses- REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT sions, Canada, and Mexico; 10 or more to one MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. address, $1.00 each. Elsewhere, $1.50 each. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per 10 or more to one address, $2.50 each. year or $.40 each in the United States, its posses- THE ECONOMETRICS OF PRICE DETERMINATION CONsions, Canada, and Mexico; 10 or more of same FERENCE, October 30-31, 1970, Washington, D.C. issue to one address, $13.50 per year or $.35 each. 1972. 397 pp. Cloth ed. $5.00 each; 10 or more Elsewhere, $20.00 per year or $.50 each. to one address, $4.50 each. Paper ed. $4.00 each; SELECTED INTEREST AND EXCHANGE RATES—WEEKLY 10 or more to one address, $3.60 each. SERIES OF CHARTS. Weekly. $15.00 per year or FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE $.40 each in the United States, its possessions, FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. Canada, and Mexico; 10 or more of same issue 487 pp. $4.00 each; 10 or more to one address, to one address, $13.50 per year or $.35 each. $3.60 each. Elsewhere, $20.00 per year or $.50 each. LENDING FUNCTIONS OF THE FEDERAL RESERVE THE FEDERAL RESERVE ACT, as amended through De- BANKS. 1973. 271 pp. $3.50 each; 10 or more cember 1971, with an appendix containing provi- to one address, $3.00 each. sions of certain other statutes affecting the Federal INTRODUCTION TO FLOW OF FUNDS. 1975. 64 pp. $.50 Reserve System. 252 pp. $1.25. each; 10 or more to one address, $.40 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE IMPROVING THE MONETARY AGGREGATES (Report of the FEDERAL RESERVE SYSTEM Advisory Committee on Monetary Statistics). PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- 1976. 43 pp. $1.00 each; 10 or more to one ERNORS, as of June 30, 1976. $2.50. address, $.85 each. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 ANNUAL PERCENTAGE RATE TABLES (Truth in Lendeach; 10 or more to one address, $.85 each. ing—Regulation Z) Vol. I (Regular Transactions). INDUSTRIAL PRODUCTION—1971 EDITION. 1972. 383 1969. 100 pp. Vol. II (Irregular Transactions). pp. $4.00 each; 10 or more to one address, $3.50 1969. 116 pp. Each volume $1.00, 10 or more each. of same volume to one address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 75 CONSUMER EDUCATION PAMPHLETS REVISION OF BANK CREDIT SERIES. 12/71. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF (Short pamphlets suitable for classroom use. Multiple U.S. BANKS. 2/72. copies available without charge.) BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— REVISED SERIES. 7/72. FAIR CREDIT BILLING YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. IF YOU BORROW TO BUY STOCK RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. U.S. CURRENCY BANKS. 10/72. REVISION OF CONSUMER CREDIT STATISTICS. 10/72. WHAT TRUTH IN LENDING MEANS TO YOU ONE-BANK HOLDING COMPANIES BEFORE THE 1970 AMENDMENTS. 12/72. STAFF ECONOMIC STUDIES YIELDS ON RECENTLY OFFERED CORPORATE BONDS. Studies and papers on economic and financial subjects 5/73. that are of general interest in the field of economic CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMERresearch. CIAL BANKS. 9/73. RATES ON CONSUMER INSTALMENT LOANS. 9/73. SUMMARIES ONLY PRINTED IN THE BULLETIN NEW SERIES FOR LARGE MANUFACTURING CORPORA- (Limited supply of mimeographed copies of full text TIONS. 10/73. available upon request for single copies.) U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. THE GROWTH OF MULTIBANK HOLDING COMPANIES: INFLATION AND STAGNATION IN MAJOR FOREIGN IN- 1956-73, by Gregory E. Boczar. Apr. 1976. 27 DUSTRIAL COUNTRIES. 10/74. pp. THE STRUCTURE OF MARGIN CREDIT. 4/75. EXTENDING MERGER ANALYSIS BEYOND THE SINGLE- NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT MARKET FRAMEWORK, by Stephen A. Rhoades. SELECTED LARGE COMMERCIAL BANKS. 4/75. May 1976. 25 pp. RECENT TRENDS IN FEDERAL BUDGET POLICY. 7/75. SEASONAL ADJUSTMENT OF M1—CURRENTLY PUB- RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL LISHED AND ALTERNATIVE METHODS, by Edward MARKETS. 10/75. R. Fry. May 1976. 22 pp. MINNIE: A SMALL VERSION OF THE EFFECTS OF NOW ACCOUNTS ON COSTS AND EARNINGS MIT-PENN-SSRC ECONOMETRIC MODEL, Staff OF COMMERCIAL BANKS IN 1974-75, by John D. Economic Study by Douglas Battenberg, Jared J. Paulus. Sept. 1976. 49 pp. Enzler, and Arthur M. Havenner. 11/75. AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff PRINTED IN FULL IN THE BULLETIN Economic Study by Robert J. Lawrence and Staff Economic Studies shown in list below. Samuel H. Talley. 1/76. INDUSTRIAL ELECTRIC POWER USE. 1/76. REPRINTS REVISION OF MONEY STOCK MEASURES. 2/76. (Except for Staff Papers, Staff Economic Studies, and SURVEY OF FINANCE COMPANIES, 1975. 3/76. some leading articles, most of the articles reprinted do CHANGING PATTERNS IN U.S. INTERNATIONAL TRANSnot exceed 12 pages.) ACTIONS. 4/76. REVISED SERIES FOR MEMBER BANK DEPOSITS AND SEASONAL FACTORS AFFECTING BANK RESERVES. 2/58. AGGREGATE RESERVES. 4/76. MEASURES OF MEMBER BANK RESERVES. 7/63. BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS RESEARCH ON BANKING STRUCTURE AND PERFORM- IN 1975. 4/76. ANCE, Staff Economic Study by Tynan Smith. CHANGES IN BANK LENDING PRACTICES, 1975. 4/76. 4/66. INDUSTRIAL PRODUCTION—1976 Revision. 6/76. A REVISED INDEX OF MANUFACTURING CAPACITY, FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- Staff Economic Study by Frank de Leeuw with NISMS: A SUMMARY. 6/76. Frank E. Hopkins and Michael D. Sherman. 11/66. RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN FOREIGN BANKS. 10/76. 1960-67. 4/68. NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- MEASURES OF SECURITY CREDIT. 12/70. FACTURING AND MATERIALS. 11/76. REVISED MEASURES OF MANUFACTURING CAPACITY SURVEY OF TIME AND SAVINGS DEPOSITS, July 1976. UTILIZATION. 10/71. 12/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 Federal Reserve Bulletin • February 1977 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits—Continued Agricultural loans of commercial banks, 18, 20-22 Ownership by individuals, partnerships, and corpora- Assets and liabilities (See also Foreigners): tions, 25 Banks, by classes, 16, 17, 18, 20-23, 29 Subject to reserve requirements, 15 Federal Reserve Banks, 12 Turnover, 13 Nonfinancial corporations, current, 38 Deposits (See also specific types of deposits): Automobiles: Banks, by classes, 3, 16, 17, 19, 20-23, 29 Consumer instalment credit, 42, 43 Federal Reserve Banks, 4, 12 Production, 48, 49 Subject to reserve requirements, 15 Discount rates at F.R. Banks (See Interest rates) BANK credit proxy, 15 Discounts and advances by F.R. Banks (See Loans) Bankers balances, 16, 18, 20, 21, 22 Dividends, corporate, 38 (See also Foreigners) Banks for cooperatives, 35 EMPLOYMENT, 46, 47 Bonds (See also U.S. Govt, securities): New issues, 36, 37 Euro-dollars, 15, 27 Yields, 3 Branch banks: FARM mortgage loans, 41 Assets and liabilities of foreign branches of U.S. Farmers Home Administration, 41 banks, 62 Federal agency obligations, 4, 11, 12, 13 Liabilities of U.S. banks to their foreign Federal and Federally sponsored credit agencies, 35 branches, 23 Federal finance: Business activity, 46 Debt subject to statutory limitation and Business expenditures on new plant and equipment, 39 types and ownership of gross debt, 32 Business loans (See Commercial and industrial loans) Receipts and outlays, 30, 31 Treasury operating balance, 30 CAPACITY utilization, 46, 47 Federal Financing Bank, 35 Capital accounts: Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 Banks, by classes, 16, 17, 19, 20 Federal home loan banks, 35 Federal Reserve Banks, 12 Federal Home Loan Mortgage Corp., 35, 40, 41 Central banks, 68 Federal Housing Administration, 35, 40, 41 Certificates of deposit, 23, 27 Federal intermediate credit banks, 35 Commercial and industrial loans: Federal land banks, 35, 41 Commercial banks, 15, 18, 23, 26 Federal National Mortgage Assn., 35, 40, 41 Weekly reporting banks, 20, 21, 22, 23, 24 Federal Reserve Banks: Commercial banks: Condition statement, 12 Assets and liabilities, 3, 15-18, 20-23 Discount rates (See Interest rates) Business loans, 26 U.S. Govt, securities held, 4, 12, 13, 32, 33 Commercial and industrial loans, 24 Federal Reserve credit, 4, 5, 12, 13 Consumer loans held, by type, 42, 43 Federal Reserve notes, 12 Loans sold outright, 23 Federally sponsored credit agencies, 35 Number, by classes, 16, 17 Finance companies: Real estate mortgages held, by type of holder and Loans, 20, 21, 22, 42, 43 property, 41 Paper, 25, 27 Commercial paper, 3, 24, 25, 27 Financial institutions, loans to, 18, 20, 21, 22, 23 Condition statements (See Assets and liabilities) Float, 4 Construction, 46, 50 Flow of funds, 44, 45 Consumer instalment credit, 42, 43 Foreign: Consumer prices, 46, 51 Currency operations, 12 Consumption expenditures, 52, 53 Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Corporations: Exchange rates, 68 Profits, taxes, and dividends, 38 Trade, 55 Security issues, 36, 37, 65 Foreigners: Cost of living (See Consumer prices) Claims on, 60, 61, 66, 67 Currency and coin, 5, 16, 18 Liabilities to, 23, 56-59, 64-67 Currency in circulation, 4, 14 Customer credit, stock market, 28 GOLD. Certificates, 12 DEBITS to deposit accounts, 13 Stock, 4, 55 Debt (See specific types of debt or securities) Government National Mortgage Assn., 35, 40, 41 Demand deposits: Gross national product, 52, 53 Adjusted, commercial banks, 13, 15, 19 Banks, by classes, 16, 17, 19, 20-23 HOUSING, new and existing units, 50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All INCOME, personal and national, 46, 52, 53 REAL estate loans: Industrial production, 46, 48 Banks, by classes, 18, 20-23, 29, 41 Instalment loans, 42, 43 Life insurance companies, 29 Insurance companies, 29, 32, 33, 41 Mortgage terms, yields, and activity, 3, 40 Insured commercial banks, 17, 18 Type of holder and property mortgaged, 41 Interbank deposits, 16, 17, 20, 21, 22 Reserve position, basic, member banks, 6 Interest rates: Reserve requirements, member banks, 9 Bonds, 3 Reserves: Business loans of banks, 26 Commercial banks, 16, 17, 20, 21, 22 Federal Reserve Banks, 3, 8 s Federal Reserve Banks, 12 Foreign countries, 68 Member banks, 3, 4, 5, 15, 16 Money and capital market rates, 3, 27 U.S. reserve assets, 55 Mortgages, 3, 40 Residential mortgage loans, 40 Prime rate, commercial banks, 26 Retail credit and retail sales, 42, 43, 46 Time and savings deposits, maximum rates, 10 International capital transactions of the SAVING: United States, 56-67 Flow of funds, 44, 45 International organizations, 56-61, 65-67 National income accounts, 53 Inventories, 52 Savings and loan assns., 3, 10, 29, 33, 41 Investment companies, issues and assets, 37 Savings deposits (See Time deposits) Investments (See also specific types of investments): Savings institutions, selected assets, 29 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Securities (See also U.S. Govt, securities): Commercial banks, 3, 15, 16, 17 Federal and Federally sponsored agencies, 35 Federal Reserve Banks, 12, 13 Foreign transactions, 65 Life insurance companies, 29 New issues, 36, 37 Savings and loan assns., 29 Prices, 28 Special Drawing Rights, 4, 12, 54, 55 LABOR force, 47 State and local govts.: Life insurance companies (See Insurance companies) Deposits, 19, 20, 21, 22 Loans (See also specific types of loans): Holdings of U.S. Govt, securities, 32, 33 Banks, by classes, 16, 17, 18, 20-23, 29 New security issues, 36 Commercial banks, 3, 15-18, 20-23, 24, 26 Ownership of securities of, 18, 20, 21, 22, 29 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Yields of securities, 3 Insurance companies, 29, 41 State member banks, 17 Insured or guaranteed by U.S., 40, 41 Stock market, 28 Savings and loan assns., 29 Stocks (See also Securities): New issues, 36, 37 MANUFACTURERS: Prices, 28 Capacity utilization, 46, 47 Production, 46, 49 TAX receipts, Federal, 31 Margin requirements, 28 Time deposits, 3, 10, 15, 16, 17, 19, 20, 21, 22, 23 Member banks: Trade, foreign, 55 Assets and liabilities, by classes, 16, 17, 18 Treasury currency, Treasury cash, 4 Borrowings at Federal Reserve Banks, 5, 12 Treasury deposits, 4, 12, 30 Number, by classes, 16, 17 Treasury operating balance, 30 Reserve position, basic, 6 Reserve requirements, 9 UNEMPLOYMENT, 47 Reserves and related items, 3, 4, 5, 15 U.S. balance of payments, 54 Mining production, 49 U.S. Govt, balances: Mobile home shipments, 50 Commercial bank holdings, 19, 20, 21, 22 Monetary aggregates, 3, 15 Member bank holdings, 15 Money and capital market rates (See Interest rates) Treasury deposits at Reserve Banks, 4, 12, 30 Money stock measures and components, 3, 14 U.S. Govt, securities: Mortgages (See Real estate loans) Bank holdings, 16, 17, 18, 20, 21, 22, 29, 32, 33 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 34 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Federal Reserve Bank holdings, 4, 12, 13, 32, 33 Foreign and international holdings and NATIONAL banks, 17 transactions, 12, 32, 64 National defense outlays, 31 Open market transactions, 11 National income, 52 Outstanding, by type of security, 32, 33 Nonmember banks, 17, 18 Ownership, 32, 33 Rates in money and capital markets, 27 OPEN market transactions, 11 Yields, 3 Utilities, production, 49 PERSONAL income, 53 Prices: VETERANS Administration, 40, 41 Consumer and wholesale, 46, 51 Stock market, 28 WEEKLY reporting banks, 20-24 Prime rate, commercial banks, 26 Wholesale prices, 46 Production, 46, 48 Profits, corporate, 38 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis^1 C hicago j frt&kCUjf Ornate' 'enver Kansas Citt^ Oklahoma CiUf Dallas Jiousvm Anttmioi January 1977 LEGEND —• Boundaries of Federal Reserve Districts © Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation and Statistical Releases GUIDE TO TABULAR PRESENTATION SYMBOLS AND ABBREVIATIONS p Preliminary SMSA's Standard metropolitan statistical areas r Revised REIT's Real estate investment trusts rp Revised preliminary Amounts insignificant in terms of the partice Estimated ular unit (e.g., less than 500,000 when c Corrected the unit is millions) n.e.c. Not elsewhere classified (1) Zero, (2) no figure to be expected, or Rp's Repurchase agreements (3) figure delayed or, (4) no change (when IPC's Individuals, partnerships, and corporations figures are expected in percentages). GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) obligations of the Treasury. "State and local govt." a negative figure, or (3) an outflow. also includes municipalities, special districts, and other "U.S. Govt, securities" may include guaranteed political subdivisions. issues of U.S. Govt, agencies (the flow of funds figures In some of the tables details do not add to totals also include not fully guaranteed issues) as well as direct because of rounding. STATISTICAL RELEASES 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