Federal Reserve Bulletin, 1977-06
JU N E 1977 FEDERAL RESERVE BULLETIN The Commercial Paper Market Changes in Time and Savings Deposits, October 1976-January 1977 Foreign Exchange Operations: Interim Report 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 par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
N U M B E R 6 □ V O L U M E 63 □ JU N E 1977 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COM M ITTEE Stephen H. Axilrod □ Joseph R. Coyne □ John M. Denkler □ Janet O. Hart John D. Hawke, Jr. □ James L. Kichline □ John E. Reynolds Richard H. Puckett, Staff Director The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Table o f Contents 525 The Commercial Paper Market 556 J. Charles Partee, Member of the Board of Governors, presents the views Discussion of the technical opera of the Board on S. 600 before the tions of the commercial paper market, Subcommittee on Intergovernmental including a short history, in view of the Relations of the Committee on Gov increasing number of large corporations ernmental Affairs, U.S. Senate, May, that have met part of their credit needs 25, 1977. over the past decade through the sale of commercial paper. 558 Governor Partee also testifies on H.R. 5675 before the Committee on 537 Survey of Time and Savings De Banking, Housing and Urban Affairs, posits, October 1976-January 1977 U.S. Senate, June 6, 1977. Results of the most recent survey indicate that growth in total time and 561 Record of Policy Actions of the savings deposits at all insured commer Federal Open Market Committee cial banks accelerated moderately over In the meeting held on April 19, the 3-month period at a quarterly rate 1977, the Committee decided to retain of more than 3 per cent, not seasonally the existing longer-run range for growth adjusted. in M-l and to reduce the upper limits of the longer-run ranges for growth in 548 Treasury and Federal Reserve M-2 and M-3. Members were willing Foreign Exchange Operations to tolerate growth in the monetary ag gregates over the near term within Interim report for February through ranges that were higher than those April 1977 states that the markets for adopted for the year ahead, and in their most foreign currencies were fairly free judgment such growth rates were likely of strain in the period under review, in to be associated with a weekly-average large part due to the greater stability Federal funds rate of about 4% per cent. of several currencies—notably the Depending on the growth rates of the pound, lira, French franc—that had monetary aggregates, the Federal funds come under selling pressure in 1976. rate could be modified within a range of 4V2 to 5lA per cent. 551 Statements to Congress Subsequent to the meeting, when Stephen S. Gardner, Vice Chairman nearly final estimates indicated a record of the Board of Governors, discusses annual rate of growth for M-1 in April the views of the Board on S. 71, S. and a substantial rate of growth for 73, S. 895, and S. 1433 before the M-2, the upper limit of the range for Committee on Banking, Housing and the Federal funds rate was increased to Urban Affairs, U.S. Senate, May 24, 5Vi per cent, by vote of the Committee 1977. on May 6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
577 Law Department 615 Industrial Production Various rules and orders. Another strong increase in output— an estimated 1.1 per cent—was re 613 Announcements corded in May. New provision of Regulation B Al Financial and Business Statistics (Equal Credit Opportunity) regarding credit histories of married persons. A3 Domestic Financial Statistics A46 Domestic Nonfinancial Statistics Designation of five new standard A54 International Statistics metropolitan statistical areas affects banks and thrift institutions subject to A69 Guide to Tabular Presentation Regulation C (Home Mortgage Disclo and Statistical Releases sure). In a letter to the House Subcommit A72 Board of Governors and Staff tee on Financial Institutions, Regula tion, and Insurance, the Board of Gov A74 Open Market Committee and ernors expressed support of the Inter Staff; Federal Advisory Council national Banking Act of 1977. A75 Federal Reserve Banks and Publication of Sixty-Third Annual Branches Report of the Board of Governors. New Equal Credit Opportunity pam A76 Federal Reserve Board phlet. Publications Changes in Board staff. A81 Index to Statistical Tables Four State banks admitted to Federal Reserve membership. A83 Map of Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Com m ercial Paper M arket This article was prepared by Evelyn M. Hurley paper, and they have less incentive to stay in of the Capital Markets Section of the Board’s the market on a continuous basis to maintain Division of Research and Statistics. All notes investor contacts and acceptance. As a result, and/or references cited appear at the end of the growth in dealer placed paper often accelerates article. or decelerates in response to changes in the relative cost and availability of bank credit. Over the past decade, an increasing number of For the many investors that buy it, commer large corporations have met part of their credit cial paper—because of its relatively low risk and needs through the sale of commercial paper— short maturity—is a close substitute for money unsecured short-term promissory notes that are market instruments such as Treasury bills offered to investors either through dealers or and large-denomination certificates of deposit directly by the issuer.1 Most commercial paper (CD’s). As a consequence, yields on commer carries an initial maturity of 60 days or less, cial paper move in concert with yields on these and only financially strong, highly rated bor other short-term market instruments. Due to the rowers have access to this market. To insure lack of a well-developed secondary market, payment at maturity, issuers generally maintain however, commercial paper ordinarily requires back-up lines of credit at banks. The predomi a small premium above rates on other, more nant investors in commercial paper are large liquid short-term instruments. institutions—such as insurance companies, The following discussion presents a more nonfinancial corporations, and bank trust detailed examination of commercial paper is departments—which use these obligations as a suers and of the distribution mechanism. The relatively low-risk outlet for short-term funds. review includes a description of ratings and the The volume of commercial paper outstanding rating agencies, together with further informa has increased fivefold during the past 10 years. tion on investors in commercial paper. There At the end of 1976 about 700 firms had $52.6 billion, seasonally adjusted, of such paper out 1. Commercial paper outstanding standing (Table 1). More than 60 per cent of that total had been placed directly with inves Seasonally adjusted, in billions of dollars tors—mostly by large finance and bank holding companies that have continuing, substantial Type Jan 19 . 6 3 6 1, De 1 c 9 . 76 31, needs for short-term credit. The remainder, all of which had been offered through dealers, Total ......................................... 10.1 52.6 represented issues primarily of nonfinancial Financial firms .................... 10.0 39.7 Dealer placed ................ 1.7 7.3 corporations and of smaller finance and bank Bank-related .............. 1.9 holding companies. These issuers typically have Other ........................... 1.7 5.4 Directly placed .............. 8.3 32.4 irregular and relatively smaller financing re Bank-related .............. 6.0 Other ........................... 8.3 26.4 quirements. Nonfinancial firms ............. .1 13.0 For the firms that issue it, commercial paper is an important substitute for bank credit. Such Note.—Monthly data for total commercial paper and its substitution is especially prevalent among those major components for the period 1966-76 will be published offering paper through dealers. These issuers do in the Board’s forthcoming Annual Statistical Digest, 1972-1976. not maintain a special staff to market their Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
526 Federal Reserve Bulletin □ June 1977 is also an exploration of yield structure, re 2. Directly placed commercial paper demption procedures, and practices regarding outstanding, by type maturities and back-up lines of credit. The dis End-of-year figures, seasonally adjusted; in billions of cussion concludes with a short .analysis of the dollars growth of the market, particularly since World Bank- War II. Year Total Nonbank related 1966 ....................... 11.1 11.1 ISSUERS OF 1967 ....................... 12.7 12.7 DIRECTLY PLACED PAPER 1968 ....................... 14.6 14.6 1969 ....................... 20.8 17.7 3.1 Of the total volume of commercial paper out 1970 ....................... 20.5 18.5 2.0 standing at the end of 1976, $32.4 billion, or 1971 ....................... 20.6 19.2 1.4 more than 60 per cent, had been placed directly 1972 ....................... 22.1 20.7 1.4 1973 ....................... 27.2 24.3 2.9 by the borrowing firm with the investor without 1974 ....................... 31.8 25.3 6.5 the use of a dealer as intermediary (Table 2). 1975 ....................... 31.2 24.3 6.9 Currently, only about 75 companies offer their 1976 ....................... 32.4 26.4 6.0 paper in this way. For the most part, these are very large finance companies and bank holding money market instruments, perhaps on unfa companies that have top credit ratings, extensive vorable terms. banking and money market relationships, and Other costs, incurred by both direct placers a continuous need for large amounts of short and those distributing paper through dealers, term funds. include: (1) reimbursement of banks for back-up A considerable amount of borrowing is re lines of credit—usually with compensating bal quired to justify the substantial fixed costs of ances of 10 per cent of total lines extended to distributing paper without dealer assistance. As the issuer, plus an additional 10 per cent of lines a result, issuers seldom find it economical to actually used; (2) fees to a money market bank place paper directly unless the average monthly that acts as the issuer’s agent in the collection volume of their paper outstanding exceeds $100 and payment of notes; and (3) fees to rating million; in fact, average amounts outstanding services for evaluating commercial paper. of such paper at the end of 1976 were around Finance companies are the major issuers of $650 million per issuer. Purchases of new issues directly placed paper, accounting for more than of directly placed paper also are large, usually 80 per cent of the total of such paper outstanding about $500,000 per investor. Furthermore, in at the end of 1976. These issues have been an the case of one or two issuers that sell to large important and growing source of funds for fi institutions, sales of new paper average as much nance companies. By mid-1975—the latest pe as $1 million per investor. riod for which data are available—directly By distributing commercial paper on their placed paper represented 65 per cent of the total own, issuers save the dealer’s fee of Vs of a short-term debt of these companies, up from percentage point, or $125,000 per $100 million nearly 50 per cent 10 years earlier.3 By com of paper offered. Direct placement also allows parison, over the same period, the bank loan greater flexibility in adjusting interest rates and portion of short-term obligations of finance maturities to meet an investor’s preferences. companies fell from 36 to 22 per cent. Offsetting these advantages to some extent is It must be noted, however, that only a small the need to set up and maintain a marketing nilmber of very large finance companies have department. Another offsetting factor is that access to the directly placed commercial paper direct issuers typically accommodate customers market. According to the 1975 Federal Reserve by accepting all orders at quoted interest rates, survey of finance companies—which covered even if the issuer’s need for funds is already nearly 3,400 firms—46 companies, each report satisfied.2 As a result, there are times when ing combined business and consumer accounts excess funds may have to be reinvested in receivable of $100 million or more, accounted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Com m ercial Paper Market 5 27 for 99 per cent of all commercial paper placed 3. Dealer placed commercial paper directly by finance companies and outstanding outstanding, by type at the time of the survey. End-of-year figures, seasonally adjusted; in billions of About one-fifth of all finance company com dollars mercial paper outstanding is issued via ‘ ‘master Financial notes,” which are sold to large, steady suppliers Nonfi of funds such as bank trust departments. Under Year Total nancial Total Non- Bankthese master note agreements, bank trust bank related departments make daily purchases of commer 1966 ................ 3.2 .8 2.4 2.4 cial paper, payable on demand, up to some 1967 ................ 5.2 2.3 2.8 2.8 predetermined amount. Each day the trust 1968 ................ 7.5 3.0 4.5 4.5 1969 ................ 12.2 5.7 6.5 5.3 1.2 department informs the issuer of the amount of 1970 ................ 13.0 7.6 5.5 5.1 .4 paper it will take under the master note. Though 1971 ................ 11.9 6.6 5.3 4.8 .5 the amount outstanding may fluctuate from day 1972 ................ 13.0 7.4 5.6 4.4 1.2 1973 ................ 14.3 8.8 5.5 3.5 1.9 today, interest is usually payable on the average 1974 ................ 17.9 13.3 4.6 2.8 1.8 daily balance for the month, at the 180-day 1975 ................ 16.9 10.7 6.2 4.5 1.8 1976 ................ 20.3 13.0 7.3 5.4 1.9 commercial paper rate. Bank holding companies represent the second Note.—Components may not add to totals due to rounding. largest group of issuers of directly placed com mercial paper. These firms did not begin to tap this market until 1969, but by the end of 1976 portation, insurance, and leasing, plus a few real they accounted for about 18 per cent of all estate investment trusts (REIT’s), account for such paper outstanding. Although the paper the remainder. itself is an obligation of the bank holding com In view of the prevalence of industrial com pany or its nonbank affiliates or subsidiaries, the panies and the utilities among issuers, it is not proceeds from such sales may be channeled to surprising to find that nonfinancial corporations the subsidiary bank or to other affiliates and account for more than 60 per cent of the out subsidiaries. If the proceeds are channeled to standing paper issued through dealers. These a Federal Reserve member bank, they are sub corporations typically use paper to meet sea ject to reserve requirements. sonal needs, or as a substitute for bank credit because of relative cost, or at times to delay longer-term financing because of unfavorable market conditions. Although most of these firms ISSUERS OF have a net worth of $100 million or more, a DEALER PLACED PAPER few have a net worth as low as $50 million. More than $20 billion of the commercial paper The smaller companies, however, are not heav outstanding at the end of 1976, or about 38 per ily leveraged, and they have very good financial cent of the total, had been sold through dealers records or the guarantee of a well-established (Table 3). Borrowers market their paper through parent company. Many oil pipeline companies, dealers for several reasons: they may not be well for example, are able to sell paper backed by enough known to issue paper without dealer their parent oil companies, although they have contacts; their needs may be temporary; or their considerably lower net worth than other issuers. financing requirements may be too small to At the end of 1976 about 160 financial firms justify an in-house marketing department. More were using the dealer market, and their paper than 650 corporations currently sell or guarantee outstanding amounted to $7.3 billion (Table 3), paper in the dealer market.4 Of these, about 300 of which one-fourth was bank related. These are industrial companies and 170 are public firms, which include smaller and less wellutilities (Table 4). Smaller finance companies known bank holding companies and finance and bank holding companies, as well as mort companies (primarily finance subsidiaries of gage companies and firms engaged in trans- manufacturers and retailers), usually have a net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
528 Federal Reserve Bulletin □ June 1977 4. Companies having commercial paper to dealer inventories; paper in inventory usually ratings, by industry, October 19761 is turned over within 10 days. During periods of market stress, however, some dealers will Industry grouping Number of companies take new paper only on a “best efforts to sell” basis. Industrial ............................................. 316 Inventories are financed either by overnight Public utility ..................................... 173 Finance company ............................. 91 repurchase agreements (Rp’s) or by secured call Bank holding company .................. 80 REIT ................................................... 10 loans from banks, in both cases with financing Insurance ............................................ 18 costs closely tied to the Federal funds rate. Rates T Le ra a n si s n p g o rt . a .. t . i . o ... n .. ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4 on commercial paper Rp’s are usually Vs to Va Government ....................................... 1 of a percentage point above the Rp rate on Total .............................................. 714 Treasury securities, which fluctuates around the Federal funds rate. 1 Based on listings of Moody’s Investors Service, Standard Unlike direct placers, who accept all reason & Poor’s Corporation, and Fitch Investors Service. able offers from investors, dealers may not be worth on the order of $40 million to $50 mil able to accept all of the money that investors lion—smaller than the nonfinancial companies. wish to place in obligations of a particular As a result, financial companies in the dealer company on any given day, nor do they have market often have lower commercial paper rat direct control over maturities; they sell only the ings and pay somewhat higher interest rates than paper that they have purchased that day or the other borrowers. paper from their inventory. To satisfy investors’ Some even smaller or less well-known finan demands, dealers may relay to issuers any spe cial and nonfinancial firms use a bank “standby cial orders or requests they receive specifying letter of credit” to gain access to the dealer the quantity and maturity of paper, but the issuer market. The letter of credit guarantees that a makes the final decision on these matters and particular bank, if necessary, will repay the makes no commitment to issue regularly. issuer’s commercial paper at maturity. The is The average size of note placed by the major suer usually obtains the standby letter by paying dealers with an investor on a single day cur the bank a fee and obtaining a line of credit, rently varies between $1.5 million and $2.5 ordinarily supported by compensating balances. million. The minimum amount of a given issue The promissory note of the issuer, with the usually is $100,000, but some dealers occa attached standby letter of credit, is referred to sionally handle smaller denominations at the as a “documented discount note.”5 request of issuers that are exceptionally good At the end of 1976 about $600 million, or customers. Dealers also accommodate requests 3 per cent, of dealer placed commercial paper from money market banks to purchase smaller outstanding represented documented discount amounts because of the role of these banks as notes. The largest portion had been issued by major purchasers of paper for the accounts of companies that supply nuclear fuel or the energy their trust departments and other customers. derived from it to electric utilities. Other issuers of documented discount notes included leasing companies, REIT’s, and mortgage companies.6 RATING OF ISSUES Three services currently evaluate commercial paper; for such an evaluation the issuing com COMMERCIAL PAPER DEALERS pany pays a fee. Moody’s Investors Service At the end of 1976 there were 10 dealers ac rates the paper of more than 550 issuers. Stand tively engaged in placing commercial paper. In ard & Poor’s Corporation rates the paper of purchasing paper from issuers, dealers generally some of these same companies, plus 150 others. charge Vs of a percentage point as their fee. Fitch Investors Service rates 54 companies, but| Paper not sold immediately to investors is added most of these are also rated by one of the other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Com m ercial Paper Ma rket 5 29 two services. Thus, about 700 issuers are rated companies, and foundations. But there is rela by one or more of the three services (Table 4).7 tively little documented information on the Paper is rated Prime-1 (P-l), Prime-2 (P-2), or amounts of such paper held by these various Prime-3 (P-3) by Moody’s; A-l, A-2, or A-3 groups. As of year-end 1976 there was $52.0 by Standard & Poor’s; F-l, F-2, or F-3 by Fitch. billion of commercial paper outstanding, not Each service gives the “1” rating to the highest seasonally adjusted. Of this total, $11.3 billion quality paper and the “3” to the lowest. was held by corporations engaged in manufac Unrated or lower-rated paper cannot be sold turing, mining, and wholesale or retail trade.9 easily in today’s market. Only paper with the At the same time, life insurance companies two highest ratings by Moody’s or Standard & accounted for about $5.3 billion.10 Although Poor’s is readily accepted. However, P-3 or A-3 money market banks apparently make substan paper does sell occasionally, depending on the tial purchases for their own trust departments reputation of the issuer and the interest rate or for customers, they appear to purchase little premium. for their own accounts. As of December 29, Commercial paper with a given rating will 1976, less than $500 million of commercial pay a higher or a lower yield depending on the paper was included in commercial and industrial ratings assigned to the issuer’s bonds—the bet loans outstanding at large commercial banks. ter the bond rating, the lower the yield on com Though individuals do not play a major role mercial paper. In general, issuers or guarantors in the market, there is reason to believe that of paper in the present market have bonds out they have acquired larger amounts of directly standing that are rated as being of minimum placed paper over the past several years. This investment grade or better.8 is indicated by the fact that some finance com Since the default of the Penn Central Trans panies selling paper directly have greatly re portation Company in mid-1970, ratings on duced the minimum amount of paper they will commercial paper have affected the accept sell to any investor. Whereas previously most ability of an offering, but as of mid-1977 they companies had offered paper in minimum de will also affect the net capital requirements of nominations of $50,000 or $100,000, today the dealer who handles such paper. According at least nine companies have published minito a ruling by the Securities and Exchange mums of $25,000 for paper maturing in 30 days Commission (SEC), scheduled to become ef or more. And other companies, although they fective July 1, 1977, a dealer who takes into still post minimums of $50,000 or $100,000, inventory the paper of an issuer that does not will attempt to accommodate an order of any have ratings from two rating services must pro size given by a large money market bank in tect his solvency by “writing down” the value order to maintain good working relationships of this paper taken into inventory—the write with the institution. down varying from 15 to 30 per cent. In view of this requirement, most dealers are now ad vising issuers that they will handle any paper REDEMPTIONS AND without two ratings only on a “best efforts” MATURITIES OF PAPER, basis. AND BACK-UP LINES OF CREDIT There are no established secondary markets for INVESTORS either dealer or directly placed paper. Hence, Both direct issuers of, and dealers in, commer if an investor becomes hard pressed, it is cus cial paper have indicated that their principal tomary for a dealer to contact an issuer to customers are large money market banks (pur ascertain if the issuer is willing to redeem the chasing mainly on behalf of their trust depart obligation before the due date. Most issuers ments or bank customers), nonfinancial cor accommodate a hard-pressed investor if they porations, insurance companies, private pension can. Among direct placers, finance companies funds, State and local governments, investment redeem on a similar basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
530 Federal Reserve Bulletin □ June 1977 In general, however, the need to repurchase most dealer paper—even though rated A-l or paper before maturity is lessened by the fact P-l—is issued by companies with Aa bond that the maturities on a large part of this paper ratings, most of it yields at least Vs of a per are very short. Most of these obligations have centage point more than directly placed paper. an original maturity of less than 60 days, and Yields on commercial paper tend to move in for a large portion the initial maturity is less concert with yields on other short-term market than 1 month. The average maturity on directly instruments, with any differences reflecting spe placed paper ranges for the most part from 20 cial considerations or investor preferences. Two to 40 days, and that on dealer placed paper from instruments in particular may be mentioned— 30 to 45 days. Maturities vary among dealers, Treasury bills and large-denomination CD’s of depending upon the needs of the issuers and the banks. Rates on the highest quality commercial quality of the obligations. Paper of lower quality paper tend to move with, but at levels Vs to tends to have a shorter average maturity, as Va of a percentage point higher than, those on issuers attempt to tailor the maturity to appeal Treasury bills of comparable maturity; the dif to the cautiousness of investors. Short maturities ference between the two reflects the lack of a enable investors to reduce their positions well-established secondary market for commer quickly if signs of significant financial difficul cial paper and the fact that such paper carries ties for the issuer appear, but this corre a risk premium relative to obligations of the spondingly implies that commercial paper may U.S. Government. Insofar as commercial paper represent a volatile source of funds for weak and CD’s are concerned, both investors and borrowers. banks issuing CD’s treat the two as close sub To provide both an alternative means of fi stitutes. Yields on the two tend to move in nancing in case of reduced access to the market concert, although commercial paper rates may and an additional assurance that they can repay be either higher or lower than CD rates. The outstanding paper at maturity, issuers maintain relative costs may be of special importance to back-up lines of credit. Dealers and investors banks. If rates on CD’s are high relative to those often insist on formal contractual arrangements on commercial paper, banks may, if they are between the issuer and a bank to provide 100 part of a holding company group, obtain funds per cent coverage if a company’s paper is rated for lending and investment from the proceeds below A-l or P-l or if an issuer is thought to of commercial paper channeled to the bank from be in potential financial difficulty. The backing the parent holding company or other members may be less complete in the case of larger, better of the group. regarded issuers. Relative costs may also make it worthwhile for nonbank issuers of paper to seek funds from sources other than the commercial paper market. For such issuers, bank loans often constitute an STRUCTURE OF INTEREST RATES important alternative. Bank rates tend to move AND THE CYCLICAL BEHAVIOR more sluggishly than new-issue commercial OF COMMERCIAL PAPER paper rates, which adjust in step with more As might be expected, yields on commercial sensitive money market yields.11 In periods of paper are strongly affected by ratings, by ma rising open market rates the prime rate usually turities, by interest rates on alternative invest moves up less rapidly than commercial paper ments, and by the national reputation of the rates, and in periods of falling open market issuer. Interest rates differ little between, on the yields the prime edges down more slowly. Ac one hand, paper placed directly by large nation cordingly, many commercial paper issuers use ally known finance companies and, on the other bank credit relatively more in the upswing of hand, dealer placed paper of companies with the business cycle when this source of funds both Aaa bond ratings and A-l and/or P-l is relatively less expensive. Similarly, they use commercial paper ratings. Nevertheless, since bank credit relatively less in the downswing of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Paper Market 531 the cycle when commercial paper becomes Late 1940’s to Mid-1960’s comparatively more attractive. Issuers in the dealer market are in a better The economic conditions characterizing the de position than direct placers to switch between pression of the 1930’s, and the excess liquidity bank credit and commercial paper since they available during World War II, curtailed the have little need to maintain investor contacts and growth of the commercial paper market, and it acceptance by continuously offering these obli was not until the late 1940’s that the market gations. Thus, dealer placed paper, especially began to expand again. The volume of paper by nonfinancial issuers, may tend to grow con- outstanding was less than $200 million at yeartracyclically (Chart 1). end 1945, but after that it grew almost continu ously to about $3.7 billion by the end of 1959. This growth—which occurred in finance com 1. Business-cycle comparisons of pany paper, both directly placed and dealer commercial paper outstanding placed—reflected the general expansion of con : - . . - Billions of dollars sumer and business needs for credit during the postwar years. In order to meet these demands, finance companies sought to expand the market for their paper and increasingly tailored denom inations and maturities to appeal to nonbank investors. As a result, this group became the major investors in commercial paper, a role that had been played by commercial banks during the prewar periods. Commercial banks, on the other hand, began to use Treasury bills more extensively as a secondary reserve asset. The volume of commercial paper out standing—both dealer and directly placed— continued to expand in the early 1960’s. This Seasonally adjusted data. Peaks and troughs are those estab growth reflected in large part the over-all ex lished by the National Bureau of Economic Research, Inc. pansion in consumer and business loans of fi nance companies that accompanied the rise in economic activity. GROWTH OF THE COMMERCIAL PAPER MARKET Mid-1960’s to 1970 Although commercial paper was issued in lim ited amounts in the 1800’s, it was not until the In the latter part of the 1960’s activity in the first decade of the 1900’s that dealers began to dealer market expanded sharply as increased sell commercial paper in the open market. After numbers of nonfinancial corporations began is that, the market grew rapidly, and by 1920 there suing paper (Chart 2). The initial impetus for were between 4,000 and 5,000 corporations growth during the second half of the 1960’s issuing commercial paper on a fairly regular occurred in 1966, when the relatively high cost basis, with more than 30 commercial paper of borrowing in the capital market encouraged houses acting as intermediaries. In the early companies to place greater reliance on short 1920’s General Motors Acceptance Corporation term funds for their external financing. In the (GMAC) became the first major company to final three quarters of that year many companies place paper directly. In the 1930’s two other found it difficult to obtain bank credit as loans finance companies—CIT Financial Corporation were being stringently rationed. In this period and Commercial Credit Corporation—joined the interest rate ceilings allowed under Regula GMAC as direct placers. tion Q constrained banks from obtaining a larger Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
532 Federal Reserve Bulletin □ June 1977 2. Commercial paper outstanding Seasonally adjusted data. volume of funds through the sale of large-de- In the next month, August 1970, the Federal nomination CD’s. Since banks did not have the Reserve took action to make funds channeled funds to lend, many nonfinancial companies to a member bank from the proceeds of a were forced to seek new sources of funds. commercial paper issue by a bank holding com Under these circumstances commercial paper pany, affiliate, or subsidiary subject to reserve became an important source of financing for requirements. This action, coupled with the large, well-known firms, and a substantial num Board’s earlier liberalization of Regulation Q ber of companies—especially utilities and in interest rate ceilings on short-term, large-dedustrial concerns—began to issue such paper. nomination CD’s, contributed to a rapid drop Although bank credit became readily available in bank-related paper during the fall and winter in 1967, many companies that had turned to the of 1970. By the end of the year bank-related commercial paper market as a temporary alter paper outstanding had declined to $2.3 billion. native in 1966 continued to issue paper regu larly—and at a cost less than that of bank credit. Effect of When demands for credit intensified again in Penn Central Bankruptcy 1969, banks sought to develop new sources of funds to lend. One source was through bank Despite the sharp growth in the reliance on holding companies and their affiliates and sub commercial paper in the period between 1946 sidiaries, which sold commercial paper and used and early 1970 only two major defaults occurred the proceeds to purchase part of the bank’s loan among commercial paper issuers, and these in portfolio. This marked the beginning of a sharp volved rather small companies that were not too build-up in the volume of paper issued through well known.12 As a result of these defaults in holding companies. By the end of 1969 bank- vestors did become wary of the smaller and related paper outstanding amounted to $4.3 bil weaker companies, but they showed no lack of lion, and 7 months later—in July 1970—had confidence in the large, well-known companies. reached $7.8 billion. On June 21, 1970, the Penn Central Trans- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Paper Market 533 portation Company filed for bankruptcy, leaving pressures intensified and open market rates con $82 million of commercial paper outstanding. tinued to rise, the commercial paper rate moved The company’s default caused investors to be above the prime rate. This led large nonfinancial come concerned about the liquidity and ability companies to begin paying off their maturing of many other corporations to meet their com commercial paper and to use long-established mercial paper obligations. Because investors bank lines of credit instead. Bank loans out became extremely conscious of quality, many standing to nonfinancial businesses rose by companies encountered trouble in refinancing nearly $12 billion13 during the first quarter of their paper as it matured. the year, whereas nonfinancial commercial The Federal Reserve System immediately paper actually declined $1.7 billion. Largely as moved to make funds available for creditworthy a result of this shifting of short-term credit customers by temporarily liberalizing its dis demands to banks, the CID recommended a dual count policy for member banks. It also sus prime rate in April 1973. Under this system, pended Regulation Q interest rate ceilings on one rate was applicable to large businesses and large-denomination, 30- to 89-day CD’s to en was more reflective of market interest rates. The sure that commercial banks would be able to other, limited in movement, was applicable to accommodate creditworthy customers. Within a short period of time, the crisis had 3. Interest rates, and growth of passed and investors began to return to the nonfinancial commercial paper market. They were much more selective, how Billions of dollars ever, as is indicated by the fact that a sizable rate spread developed between paper issued by the highest rated companies and that of the lowest rated companies. Many lower-rated companies were unable or unwilling to pay such high premiums, and those that needed credit during the summer and fall of 1970 obtained it from their banks. Voluntary Restraints In Interest Rates, 1971-73 In 1971, with inflationary pressures accompa nying the limited recovery from the previous recession, wage and price controls were im posed on most sectors. As part of this program, the Committee on Interest and Dividends (CID) was created on October 15, 1971, to establish voluntary restraints on rates of return from cer tain types of financial transactions. The CID made no attempt to control open market interest rates but concentrated instead on institutional or “administered” rates. In 1972, for example, as the economy expanded further and both market rates and the prime rate began to move upward after some months of decline (Chart 3), the CID Data for nonfinancial paper outstanding is seasonally ad strongly urged banks to limit their prime rate justed. Rate spread is monthly-average difference between increases. the bank prime rate and the rate on 4- to 6-month dealer commercial paper through March 1971 and on 30- to 59-day In the early months of 1973, as inflationary paper thereafter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
534 Federal Reserve Bulletin □ June 1977 5. Bank prime rate and rate on commercial paper Monthly-average rates, per cent per annum; spread, percentage points Rate Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1971 Prime rate ....................................... 6.29 5.88 5.44 5.28 5.46 5.50 5.91 6.00 6.00 5.90 5.51 5.49 Dealer rate ....................................... 4.97 4.38 4.10 4.48 4.94 5.27 5.61 5.61 5.57 5.27 4.75 4.47 Spread .............................................. 1.32 1.50 1.34 .80 .52 .23 .30 .39 .43 .63 .76 1.02 1972 Prime rate ....................................... 5.17 4.75 4.75 4.98 5.00 5.06 5.25 5.28 5.50 5.73 5.75 5.79 Dealer rate ....................................... 3.84 3.41 3.74 4.35 4.20 4.42 4.58 4.54 4.87 4.98 4.93 5.27 Spread .............................................. 1.33 1.34 1.01 .63 .80 .64 .67 .74 .63 .75 .82 .52 1973 Prime rate ....................................... 6.00 6.03 6.30 6.61 7.01 7.49 8.29 9.22 9.88 9.94 9.76 9.75 Dealer rate ....................................... 5.63 6.02 6.61 6.90 7.06 7.90 9.19 10.15 10.28 9.42 9.38 9.79 Spread .............................................. .37 .01 -.31 -.29 -.05 -.41 -.90 -.93 -.40 .52 .38 — .04 1974 Prime rate ....................................... 9.73 9.21 8.83 10.02 11.25 11.54 11.98 12.00 12.00 11.68 10.83 10.50 Dealer rate ....................................... 9.31 8.36 8.92 10.10 10.86 11.16 11.94 11.78 11.46 9.73 9.15 9.47 Spread .............................................. .42 .85 -.09 -.08 .39 .38 .04 .22 .54 1.95 1.68 1.03 1975 Prime rate ....................................... 10.05 8.96 7.93 7.50 7.40 7.07 7.15 7.66 7.88 7.96 7.53 7.26 Dealer rate ....................................... 7.45 6.37 6.02 5.93 5.48 5.45 6.15 6.40 6.53 6.05 5.43 5.51 Spread .............................................. 2.60 2.59 1.90 1.57 1.92 1.62 1.00 1.29 1.35 1.91 2.10 1.75 1976 Prime rate ....................................... 7.00 6.75 6.75 6.75 6.75 7.20 7.25 7.01 7.00 6.78 6.50 6.35 Dealer rate ....................................... 4.76 4.86 5.05 4.81 5.18 5.58 5.29 5.10 5.09 4.89 4.78 4.51 Spread .............................................. 2.24 1.89 1.70 1.94 1.58 1.62 1.96 1.91 1.91 1.89 1.72 1.84 Note.—Rate for commercial paper is for 30- to 59-day paper placed by dealers. Prime rate is the predominant rate charged by banks on short-term business loans. Source for prime rate, Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System; for dealer commercial paper rate, Federal Reserve Bank of New York. small businesses. This new policy made it pos oil crisis, many utility rate regulations prevented sible for interest rates on bank loans to large a complete pass-through of the higher costs. national firms to be responsive to changes in Customers also reduced their consumption of money market conditions. energy in response to higher rates and conser In spite of the dual prime rate and the higher vation campaigns. As utility earnings and li rates it permitted on large loans, credit demands quidity deteriorated, the rating services down during the summer centered on banks because graded both the long-term debt and the com the commercial paper rate rose faster than the mercial paper ratings of the utilities. In 1974, prime. In the final quarter of 1973, however, for example, one major service lowered the the situation was reversed; the rate on commer commercial paper ratings of 13 utilities, while cial paper dropped below the prime and the 14 others withdrew from the service rather than volume of dealer placed commercial paper out receive lower ratings. Finding it difficult to sell standing rose substantially (Table 5). commercial paper, utilities turned to their banks for needed funds. In addition, REIT’s, which had begun to tap Stresses on the Market, 1973-74 the commercial paper market for short-term Severe economic problems became evident in funds during 1972 and 1973, began to experi 1974, exacerbated by the oil embargo imposed ence problems in selling commercial paper early in late 1973. Many utility companies, for ex in 1974. Their problems stemmed from a sharp ample, experienced serious difficulty in selling increase in loan defaults and foreclosure pro commercial paper in 1974. Although fuel costs ceedings in late 1973 and early 1974 mainly soared for these companies as a result of the in sectors not associated with “home build Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Paper Market 535 ing”—that is, multifamily and commercial billion to $1.5 billion, then revived somewhat. properties—and a number of the trusts ceased Rate spreads between the highest quality com paying dividends. As a result, rating services mercial paper and medium-quality paper rose began downgrading REIT commercial paper, from 38 basis points earlier in the year to a peak and many investors refused to purchase new of 169 basis points in October when Franklin issues of REIT paper as the existing paper National Bank was declared insolvent (Chart 4). matured. At the beginning of 1974, REIT’s had Several large finance company subsidiaries of nearly $1.8 billion in commercial paper out manufacturing and retailing firms also found that standing, but by the end of the year this total investors had become very “quality con had been reduced to $175 million. Much of the scious.” As in the case of the REIT’s and reduction was accomplished by borrowing from utilities, these subsidiaries were forced to turn banks. Since 1974 the volume of REIT paper to their banks for funds. The finance company has edged up only slightly. subsidiary of W.T. Grant Co. paid off most of In the spring of 1974 the publicity surround its commercial paper during the first half of 1974 ing the problems of Franklin National Bank and through the use of bank loans. its parent holding company caused investors to It may be noted, however, that throughout become concerned about commercial paper of 1974 firms with Aaa or Aa bond ratings and bank holding companies. Major bank holding the highest commercial paper ratings found a companies in New York and Chicago and on ready market for their paper. Reflecting strong the West Coast found that they had to pay demands for short-term credit, total commercial premiums to investors, and sales of paper by paper increased appreciably over the year, a few smaller holding companies came to a despite the problems of weaker borrowers. virtual fyalt. These difficulties were clearly re ‘ •- i ... flected in a sharp drop in the amount of dealerdistributed bank-related paper, which is issued Post-1974 Experience primarily by the less well-known holding com panies. From April 30 to July 31, the volume Since 1974 the extreme selectivity of investors of such paper outstanding declined from $2.3 in commercial paper has receded. The rate spread between highest quality and mediumquality paper, which was well over a full per 4. Quality rate spread centage point in early 1975, had narrowed to % of a percentage point by the end of that year Percentage points and by the end of 1976 had returned to the 3/s of a percentage point that had prevailed before the disturbances in the market in 1974 (Chart 4). Throughout most of 1975 total demands for short-term financing were weak as businesses liquidated excess inventories and restructured their balance sheets by relying on long-term debt markets. Over the year total commercial paper declined somewhat. But during 1976, as short term credit demands in total ceased declining and then rose, and as the cost of commercial paper remained low relative to the cost of bank loans, commercial paper outstanding rose Rate spread is medium-grade less high-grade commercial sharply. By year-end 1976, commercial paper paper calculated from rates charged by two major dealers for outstanding totaled $52.6 billion, seasonally dealer placed 30- to 59-day paper; ratings for medium-grade, A-2 or P-2; for high-grade, A-l or P-l. adjusted—a new record. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
536 Federal Reserve Bulletin □ June 1977 FOOTNOTES Section 3(a)(3) of the Securities Act of 1933 exempts 6 Under Section 3(a)(2) of the Securities Act of 1933, commercial paper from registration by the Securities and any security issued or guaranteed by a bank is exempt Exchange Commission (SEC) providing these are notes from registration and prospectus requirements of Section “which arise out of a current transaction or the proceeds 5 of the act, and the use of the proceeds from the sale of which have been or are to be used for current of such security need not be restricted to financing transactions, and which have a maturity at time of current transactions in order to keep the exemption. issuance of not exceeding nine months . . . or any 7 Twenty-four companies do not issue paper them renewal thereof . . . .” selves, but serve merely as guarantors of affiliates’ 2Issuers, though, may often change their quotes paper. With this guarantee the affiliates’ paper obtains throughout the day. a higher rating. 3See “Survey of Finance Companies, 1975,” Federal 8 The major exception is paper guaranteed by com Reserve Bulletin, Mar. 1976, p. 205. mercial banks, which often do not have any rated 4Of these, 16—mainly bank holding companies— long-term debt. also issue some directly placed paper, and 24 do not 9Federal Trade Commission, Quarterly Financial issue paper themselves but serve merely as guarantors Report for Manufacturing, Mining, and Trade Cor of affiliates’ paper. porations, 4th quarter, 1976. 5 The three Federal regulatory agencies that have 10 American Council of Life Insurance, Monthly Sta jurisdiction over commercial banks—Board of Gover tistical Services Report, Mar. 1977. nors of the Federal Reserve System, Federal Deposit 11 The few money market banks that establish prime Insurance Corporation, and Office of the Comptroller rates by use of a formula base those rates on an average of the Currency—adopted rules in 1974 specifying of past and present commercial paper rates. The best that banks issuing these standby letters of credit must: known of these, adopted by Citibank, currently sets the (a) aggregate the amount of all letters of credit, ineligi prime rate at 125 basis points above the average rate ble acceptances, and loans in determining whether the of 90-day commercial paper over the three previous bank would exceed applicable statutory limits on loans weeks. to any one borrower; (b) subject the customer for whose 12Atlantic Acceptance Corporation, a Canada-based account this standby letter of credit is issued to the same finance company, defaulted in 1965. In 1969, Mill credit analysis as that applicable to a potential borrower Factors Corporation, a long-established but smaller in an ordinary loan situation; and (c) adequately disclose commercial finance company with a “desirable” rather in the bank’s published financial statements the amount than “prime” paper rating, defaulted on $7 million of of all outstanding standby letters of credit and maintain commercial paper. records making it possible to determine the total amount 13 Monthly figures for this series may be found in the of potential liability of the bank from issuance of all Board’s Annual Statistical Digest, 1971-75, and in the its standby letters of credit. forthcoming Digest for 1972-76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
537 Changes in Time and Savings Deposits at Commercial Banks, October 1976-January 1977 Results of the most recent survey of time and the period from October to January as yields savings deposits1 conducted jointly by the Fed on alternative market instruments, such as eral Reserve System and the Federal Deposit Treasury bills, remained below the 5 per cent Insurance Corporation indicate that growth in ceiling rate on savings deposits. During the total time and savings deposits at all insured 3-month period growth of these deposits totaled commercial banks accelerated moderately in the $12.2 billion, or 6.4 per cent at a quarterly rate, 3-month period from October 1976 to January not seasonally adjusted, compared with the 4.0 1977.2 It is estimated that total time and savings per cent rate registered in the previous 3-month deposits rose by $15 billion, or at a quarterly period. rate of more than 3 per cent, not seasonally Among the ownership classes, savings de adjusted. Savings deposits—which represent posits issued to domestic governmental units about two-fifths of the outstanding time and and to businesses grew most rapidly, reflecting savings deposits—accounted for more than continued adjustment by these entities to the four-fifths of the total increase. Inflows to opportunity of converting other financial assets small-denomination (less than $100,000) time (including demand balances) to savings deposits deposits remained strong, but growth in total coupled with their normal adjustment in portfo time deposits—continuing the pattern that had lios induced by the low market yields. Domestic begun in early 1975—was slowed by further governmental units, which had become eligible declines in large-denomination ($100,000 and to hold savings deposits in November 1974, over) time deposits. expanded their deposit balances by more than 50 per cent—about $2 billion, not seasonally adjusted. Similarly, savings deposits of profitmaking organizations, permitted at banks since SAVINGS DEPOSITS November 1975, increased by about $1.5 billion Savings deposit inflows to commercial banks to a level of $9 billion. Meanwhile, individuals maintained an extremely rapid pace throughout and nonprofit organizations, whose share of all savings balances still exceeds 90 per cent, Note.—John R. Williams and Rebekah F. Wright maintained rapid inflows by historical standards, of the Board’s Division of Research and Statistics prepared this article. increasing their holdings at a quarterly rate of Purveys of time and savings deposits (STSD) at all nearly 5 per cent. member banks were conducted by the Board of Gover Despite the large inflows of savings deposits nors in late 1965, in early 1966, and quarterly in 1967. and the low yields on alternative short-term In January and July 1967 the surveys also included data for all insured nonmember banks collected by the Fed money market securities, the January survey eral Deposit Insurance Corporation (FDIC). Since the found only a modest decline in offering rates beginning of 1968 the Board of Governors and the FDIC paid on new issues of savings deposits. The rate have jointly conducted quarterly surveys to provide estimates for all insured commercial banks based on cutting that did occur was most prevalent on. a probability sample of banks. The results of all earlier deposits issued to domestic governmental units, surveys have appeared in previous Bulletins from particularly at large banks. Among banks with 1966 to 1976, the most recent being April 1977. 2 The current sample—designed to provide estimates total deposits of $100 million and over, the of the composition of deposits—includes about 560 proportion paying the ceiling rate fell to 84 per insured commercial banks. For details of the statistical cent in January from 94 per cent in October. methodology, see “Survey of Time and Savings De posits, July 1976” in the B ulletin for December 1976. By comparison, at smaller banks the proportion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
538 Federal Reserve Bulletin □ June 1977 1. Types of time and savings deposits held by insured commercial banks on survey dates, July 28, 1976, October 27, 1976, and January 26, 1977 Deposits Number of issuing banks Type of deposit In millions of dollars Percentage change July 28, Oct. 27, Jan. 26, July 28, Oct. 27, Jan. 26, July 28- Oct. 27- 1976 1976 1977 1976 1976 1977 Oct. 27 Jan. 26 Total time and savings deposits.......................... 14,365 14,384 14,340 469,811 477,722 492,645 1.7 3.1 Savings.............................................................. 14,332 14,384 14,340 183,946 191,386 203,572 4.0 6.4 Issued to: Individuals and nonprofit organizations... 14,332 14,384 14,337 174,349 179,702 188,299 3.1 4.8 Partnerships and corporations operated for profit (other than commercial banks). 7,958 8,120 8,461 6,210 7,550 9,004 21.6 19.3 Domestic governmental units..................... 6,183 6,047 6,882 3,248 3,880 5,947 19.5 53.3 All other....................................................... 1,046 742 698 139 254 322 82.9 26.9 Interest-bearing time deposits in denomina tions of less than $100,000....................... 14,058 14,080 14,036 145,173 152,427 159,616 5.0 4.7 Issued to: Domestic governmental units....................... 10,592 10,401 10,627 4,422 4,145 4,349 -6.3 4.9 Accounts with original maturity of: 30 up to 90 days....................................... 4,865 4,315 4,290 1,499 1,099 935 -26.7 -14.9 90 up to 180 days..................................... 7,412 7,530 7,931 1,170 1,174 1,464 .4 24.7 180 days up to 1 year............................... 4,168 4,384 4,200 756 689 670 -8.9 -2.8 1 year and over......................................... 7,773 7,763 8,141 997 1,182 1,280 18.6 8.3 Other than domestic governmental units.... 13,974 14,049 14,008 140,751 148,282 155,267 5.4 4.7 Accounts with original maturity of: 30 up to 90 days....................................... 6,153 6,337 5,653 7,855 7,246 7,082 -7.8 -2.3 90 up to 180 days.................................... 11,574 11,525 11,064 27,064 30,086 31,510 11.2 4.7 180 days up to 1 year............................... 8,697 8,938 8,618 4,854 4,375 4,605 -9.9 5.2 1 up to 2 % years..................................... 13,195 13,547 13,587 33,008 34,054 34,403 3.2 1.0 2 Vi up to 4 years..................................... 12,056 12,191 12,082 18,690 18,426 18,011 -1.4 -2.3 11,762 11,758 11,929 41,372 44,785 48,566 8.2 8.4 7,992 8,133 8,433 7,909 9,310 11,091 17.7 19.1 Interest-bearing time deposits in denomina tions of $100,000 or more 11,154 11,171 10,937 133,733 127,158 123,566 -4.9 -2.8 Non-interest-bearing time deposits in de- 1,609 1,672 1,620 4,802 4,863 4,823 1.3 -.8 Less than $100,000............................. 1,315 1,419 1,396 1,556 1,587 1,640 2.0 3.3 628 677 657 3,246 3,275 3,183 .9 -2.8 Club accounts (Christmas savings, vacation, or similar club accounts)......................... 8,962 8,993 8,849 2,158 1,889 1,067 -12.4 -43.5 Note.—All banks that had either discontinued offering or never had discontinued issuing certain deposit types are included in the offered certain deposit types as of the survey date are not counted as amounts outstanding. issuing banks. However, small amounts of deposits held at banks that Figures may not add to totals because of rounding. fell from 86 to 82 per cent. At all banks the SMALL-DENOMINATION average interest rate paid on savings held by TIME DEPOSITS domestic governmental units, weighted by the Holdings of interest-bearing, small-denomi amount of deposits, declined to 4.90 per cent nation time deposits expanded sharply in the from 4.97 per cent. October to January period, continuing the strong For savings accounts of businesses the growth of such deposits in the previous 3-month proportion of banks paying the ceiling rate also period. Unlike the July to October period— declined appreciably, but it remained above 90 when governmental units had reduced their per cent. In contrast, survey data indicated that holdings of small-denomination time depos the proportion of banks paying the legal limit its—both governmental and nongovernmental on savings to individuals and nonprofit organi units increased such balances at a quarterly rate zations declined only 1 percentage point to 84 of nearly 5 per cent. In each ownership category per cent. But because the reductions were con growth was most rapid in the long maturity centrated among large banks, the proportion of deposit classes, on which legal maximum rates balances at banks paying the ceiling fell some set by Regulation Q are highest;3 growth in what more—by IVi percentage points, also to nongovernmental time deposits maturing in 4 84 per cent. For all savings deposits, the 3Of course, on issues to governmental units banks weighted-average rate was essentially un are currently permitted to pay interest of 7.75 per cent changed at 4.90 per cent. on all time deposits without regard to maturity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Time and Savings Deposits 539 2. Small-denomination time and savings deposits held by insured commercial banks on October 27, 1976, and January 26, 1977, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks All banks Deposit group, and dis tribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 Oct. 27 Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Savings deposits Individuals and non profit organizations Issuing banks............ 14,337 14,384 13,425 13,466 912 918 188,299 179,702 72,029 69,473 116,270 110,230 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less............ 4.8 4.7 4.6 4.6 6.8 6.3 3.9 4.0 3.5 3.6 4.2 4.3 4.01-4.50............... 11.1 10.4 11.1 10.6 9.9 7.2 11.4 9.6 9.6 10.1 12.6 9.3 4.51-5.00............... 84.2 84.9 84.2 84.8 83.4 86.5 84.7 86.4 87.0 86.3 83.2 86.5 Paying ceiling rate'... 83.9 84.7 84.0 84.6 82.5 86.4 83.7 86.2 86.8 86.1 81.8 86.3 Partnerships and cor porations Issuing banks............ 8,461 8,120 7,561 7,222 900 898 9,004 7,550 2,694 2,267 6,310 5,283 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less............ 1.6 1.7 1.5 1.6 2.2 2.2 1.4 1.6 1.3 2.2 1.5 1.4 4.01-4.50............... 7.7 5.7 7.5 5.7 9.3 5.2 8.7 4.3 5.3 6.2 10.1 3.5 4.51-5.00............... 90.7 92.6 91.0 92.6 88.5 92.5 89.9 94.0 93.4 91.6 88.4 95.1 Paying ceiling rate1... 90.3 92.3 90.6 92.3 87.5 92.4 88.0 93.6 93.4 91.5 85.7 94.5 Domestic governmental units Issuing banks............ 6,882 6,047 6,313 5,507 569 540 5,947 3,880 2,265 1,661 3,682 2,219 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less............ 5,1 2,9 5,3 3,0 2,5 1,9 1,1 1,2 1,2 1,0 1,0 1,3 4.01-4.50............... 12.5 8.5 12.5 8.9 12.4 3.9 16.0 4.2 12.7 7.6 18.0 1.6 4.51-5.00............... 82.5 88.7 82.3 88.1 85.1 94.2 83.0 94.6 86.2 91.4 81.0 97.0 Paying ceiling rate1... 82.0 86.8 81.8 86.1 84.1 93.8 81.4 94.2 86.1 91.0 78.5 96.5 All other Issuing banks............ 698 742 619 668 79 73 322 254 28 178 294 76 Distribution, total.. . 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less............ 12.4 .3 13.6 (2) 3.2 3.4 .5 .3 2.5 (2) .4 .9 4.01-4.50............... (2) .3 (2) (2) (2) 2.8 (2) (2) (2) (2) (2) (2) 4.51-5.00............... 87.6 99.4 86.4 100.0 96.8 93.8 99.5 99.7 97.5 100.0 99.6 99.1 Paying ceiling rate1... 87.6 99.4 86.4 100.0 96.8 93.8 99.5 99.7 97.5 100.0 99.6 99.1 Time deposits in denomina tions of less than $100,000 Domestic governmental units: Maturing in— 30 up to 90 days Issuing banks............ 4,290 4,315 3,655 3,702 635 613 935 1,099 580 490 356 609 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less............ 6.5 1.7 4.6 1.7 17.5 1.6 13.2 1.3 4.7 .9 27.1 1.6 4.51-5.00................ 74.6 73.6 75.3 72.2 70.5 81.6 61.7 66.6 73.6 75.2 42.4 59.7 5.01-5.50............... 14.5 19.7 15.4 20.6 9.3 14.3 17.5 28.2 11.7 15.2 27.0 38.6 5.51-7.75............... 4.5 5.1 4.8 5.5 2.7 2.5 7.6 3.9 10.0 8.6 3.6 .1 Paying ceiling rate1... (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) 90 up to 180 days Issuing banks............ 7,931 7,530 7,250 6,892 681 638 1,464 1,174 941 780 523 394 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less............ 5.1 .8 5.1 .8 5.0 (2) 3.3 .5 3.7 .8 2.5 (2) 4.51-5.00............... 14.6 8.6 13.6 8.2 25.8 13.4 15.2 10.7 10.4 10.3 23.9 11.4 5.01-5.50............... 74.7 81.1 75.4 80.9 67.9 83.6 76.6 81.9 78.9 82.6 72.4 80.5 5.51-7.75............... 5.6 9.5 6.0 10.1 1.2 2.9 4.9 6.9 7.0 6.3 1.2 8.1 Paying ceiling rate1... (2) .4 (2) .5 (2) (2) (2) .2 (2) .3 (2) (2) 180 days up to 1 year Issuing banks............ 4.200 4.384 3.685 3.884 515 500 670 689 410 430 260 259 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less............ 5.1 (2) 5.2 (2) 3.9 (2) 7.3 (2) 4.1 (2) 12.2 (2) 4.51-5.00............... 9.2 8.3 7.1 8.5 24.3 6.9 13.7 8.6 1.9 4.8 32.2 15.0 5.01-5.50............... 66.3 69.9 66.6 69.2 64.2 75.6 61.2 69.2 67.2 64.1 51.6 77.6 5.51-7.75............... 19.5 21.8 21.1 22.3 7.7 17.5 17.9 22.2 26.7 31.2 4.0 7.4 Paying ceiling rate1... (2) .8 (2) .9 (2) (2) (2) .1 (2) .1 (2) (2) 1 year and over Issuing banks............ 8,141 7,763 7,518 7,159 623 605 1,276 1,181 1,048 989 228 192 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less............ 5.1 2.8 4.7 2.7 10.3 4.3 2.9 .5 2.2 .3 6.1 1.3 5.01-5.50............... 4.6 5.5 3.4 5.0 19.6 11.2 12.7 4.3 4.4 3.9 51.2 6.2 5.51-6.00............... 67.9 66.2 69.1 66.6 52.9 62.0 69.0 63.4 76.3 60.1 35.2 79.9 6.01-7.75............... 22.4 25.5 22.8 25.7 17.2 22.5 15.4 31.9 17.1 35.6 7.5 12.7 Paying ceiling rate1... (2) .4 (2) .5 .4 (2) (2) .1 (2) .1 .2 (2) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
540 Federal Reserve Bulletin □ June 1977 TABLE 2—Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks All banks Deposit group, and dis tribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 Oct. 27 Jan. 26 JOct. 27 Jan. 26 Oct. 27 Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Time deposits in denomina tions of less than $100,000 (cont.) Other than domestic governmental units: Maturing in— 30 up to 90 days Issuing banks............ 5,653 6,337 4,852 5,543 801 794 7,056 7,245 1,390 1,926 5,666 5,320 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less............ 4.1 .2 2.9 (2) 11.6 1.4 17.5 1.2 9.5 (2) 19.5 1.6 4.51-5.00................ 95.9 99.8 97.1 100.0 88.4 98.6 82.5 98.8 90.5 100.0 80.5 98.4 Paying ceiling rate1... 92.8 94.2 95.3 94.4 78.3 92.8 76.2 92.0 86.6 93.4 73.7 91.5 90 up to 180 days Issuing banks............ 11,064 11,525 10,169 10,623 894 902 31,445 30,086 13,003 12,626 18,442 17,460 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less............ 1.0 .5 .9 .5 1.9 (2) .2 (2) (2) (2) .4 (2) 4.51-5.00............... 10.5 12.7 10.3 13.3 12.4 5.3 16.4 6.0 9.8 7.3 21.1 5.0 5.01-5.50............... 88.6 86.8 88.8 86.1 85.7 94.7 83.4 94.0 90.2 92.6 78.6 95.0 Paying ceiling rate1... 88.3 86.1 88.8 85.6 82.3 92.0 80.8 92.8 90.2 92.6 74.2 92.9 180 days up to 1 year Issuing banks............ 8,618 8,938 7,831 8,147 788 791 4,564 4,338 2,609 2,653 1,956 1,685 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less............ .6 .4 .4 .3 3.0 .4 .2 .1 (2) (2) .5 .3 4.51-5.00............... 8.7 5.4 8.2 5.5 13.3 4.6 9.9 2.2 4.2 2.7 17.5 1.5 5.01-5.50............... 90.7 94.2 91.4 94.2 83.7 95.0 89.9 97.6 95.8 97.3 82.0 98.2 Paying ceiling rate1... 89.4 91.6 90.7 91.6 76.3 91.4 84.8 91.0 95.8 93.8 70.3 86.6 1 up to 2 Vi years Issuing banks............ 13,587 13,547 12,685 12,644 903 903 34,402 34,054 21,981 22,175 12,420 11,880 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less............ .4 (2) .4 (2) .9 .2 1.7 (2) .3 (2) 4.1 (2) 5.01-5.50............... 2.8 1.8 2.5 1.8 7.0 1.2 2.9 1.3 2.1 1.8 4.2 .5 5,51-6.00............... 96.8 98.2 97.1 98.2 92.1 98.6 95.5 98.7 97.6 98.2 91.7 99.5 Paying ceiling rate1... 94.5 96.3 95.1 96.3 86.4 96.2 89.4 96.6 96.4 97.3 77.0 95.1 2 Vi up to 4 years 12,082 12,191 11,205 11,311 877 880 17,930 18,402 10,746 11,283 7,184 7,120 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less............ 2.6 1.8 1.9 1.9 10.7 .9 5.8 1.6 1.9 1.4 11.6 1.8 6.01-6.50............... 97.4 98.2 98.1 98.1 89.3 99.1 94.2 98.4 98.1 98.6 88.4 98.2 Paying ceiling rate1... 97.2 97.1 98.1 97.0 85.7 98.4 93.1 96.6 98.1 97.0 85.6 95.8 4 up to 6 years Issuing banks............ 11,929 11,758 11,058 10,886 871 871 48,109 44,362 24,763 22,349 23,346 22,013 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 6.50 or less............ 2.2 .9 1.2 .8 15.0 1.9 6.7 1.8 1.0 .6 12.8 3.0 6.51-7.00............... 17.4 14.8 17.6 15.5 15.3 6.7 15.1 9.8 16.0 13.0 14.2 6.6 7.01-7.25............... 80.4 84.3 81.2 83.7 69.7 91.4 78.1 88.4 83.0 86.4 73.0 90.4 Paying ceiling rate1... 80.1 84.3 81.0 83.7 69.2 91.4 78.0 88.4 82.9 86.4 72.8 90.4 6 years and over Issuing banks............ 8,433 8,133 7,673 7,379 760 754 10,933 9,175 4,737 4,020 6,196 5,155 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less............ .1 (2) (2) (2) .9 (2) .1 (2) (2) (2) .2 (2) 5.01-7.25............... 8.3 4.8 7.2 4.8 19.4 4.9 14.5 6.8 3.7 3.9 22.7 9.1 7.26-7.50............... 91.6 95.2 92.8 95.2 79.7 95.1 85.4 93.2 96.3 96.1 77.1 90.9 Paying ceiling rate1... 91.6 95.2 92.8 95.2 79.7 95.1 85.4 93.2 96.3 96.1 77.1 90.9 Club accounts Issuing banks............ 8,849 8,993 8,172 8,358 676 634 1,033 1,839 644 914 389 925 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 0.00........................ 49.5 55.3 51.3 57.4 28.1 27.5 13.3 22.9 13.0 31.8 13.8 14.0 0.01-4.00............... 12.1 13.6 11.9 13.5 13.9 15.3 10.2 11.0 8.3 11.9 13.3 10.2 4.01-4.50............... 6.8 7.3 6.6 7.1 9.6 10.3 9.8 10.9 5.8 6.4 16.5 15.2 4.51-5.50............... 31.6 23.8 30.2 22.0 48.4 46.9 66.7 55.3 73.0 49.8 56.4 60.7 1 See p. A-10 for maximum interest rates payable on time and held at banks that had discontinued issuing deposits are not included savings deposits at the time of each survey. The ceiling rate is included in the amounts outstanding. Therefore, the deposit amounts shown in the rate interval in the line above. in Table 1 may exceed the deposit amounts shown in this table. 2 Less than .05 per cent. The most common interest rate for each instrument refers to the stated rate per annum (before compounding) that banks paid on the Note.—All banks that either had discontinued offering or had largest dollar volume of deposit inflows during the 2-week period never offered particular deposit types as of the survey date are not immediately preceding the survey date. counted as issuing banks. Moreover, the small amounts of deposits Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Time and Savings Deposits 541 years or more accounted for nearly 80 per cent clined for all maturity categories of small-de of the total expansion in small-denomination nomination time deposits between October and time deposits. Deposits maturing in 90 up to January, the general lengthening of the maturity 180 days also increased in both ownership structure offset to some extent the impact of the classes, perhaps as some customers acquired declines on the total weighted-average interest temporary investments in anticipation of rising cost of these deposits. The weighted-average market rates. rate paid on new time deposits issued to domes Although average rates paid by banks de tic governmental units fell 9 basis points to 5.49 3. Average of most common interest rates paid on various categories of time and savings deposits at insured commercial banks on October 27, 1976, and January 26, 1977 Bank size (total deposits in millions of dollars) Type of deposit All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over January 26, 1977 Savings and small-denomination time deposits..................... 5.51 5.72 5.67 5.60 5.46 5.37 5.33 Savings, total............................................................................ 4.90 4.94 4.89 4.94 4.90 4.82 4.91 Individuals and nonprofit organizations............................ 4.90 4.94 4.88 4.94 4.89 4.82 4.91 Partnerships and corporations............................................ 4.94 4.99 4.94 4.97 4.93 4.90 4.93 Domestic governmental units............................................ 4.90 4.93 4.98 4.85 4.94 4.91 4.85 All other............................................................................... 4.98 4.84 5.00 5.00 4.98 .. 5.00 Time deposits in denominations of less than $100,000, total.. 6.28 6.28 6.44 6.38 6.25 6.22 6.12 Domestic governmental units, total................................... 5.49 5.61 5.65 5.44 5.34 5.12 5.11 Maturing in— 30 up to 90 days............................................................... 5.05 5.22 4.98 4.94 5.12 4.85 4.77 90 up to 180 days............................................................. 5.37 5.44 5.36 5.42 5.41 5.13 5.15 180 days up to 1 year...................................................... 5.37 5.38 5.62 5.34 5.12 5.26 5.14 1 year and over................................................................ 6.01 6.05 6.13 6.10 5.74 5.64 5.66 Other than domestic governmental units, total................. 6.30 6.32 6.46 6.39 6.28 6.23 6.13 Maturing in— 30 up to 90 days.............................................................. 4.88 4.89 5.00 4.92 4.95 4.90 4.81 90 up to 180 days............................................................. 5.40 5.47 5.46 5.41 5.45 5.37 5.27 180 days up to 1 year...................................................... 5.43 5.48 5.49 5.48 5.44 5.39 5.29 1 up to 2Vi years.............................................................. 5.95 5.99 5.99 5.95 5.97 5.87 5.84 2 Vi up to 4 years.............................................................. 6.46 6.49 6.49 6.46 6.42 6.39 6.43 4 up to 6 years................................................................. 7.13 7.19 7.17 7.22 7.07 7.10 7.06 Over 6 years..................................................................... 7.41 7.49 7.50 7.48 7.36 7.41 7.29 Memo : Club accounts1........................................................... 4.20 2.71 4.30 4.75 3.91 3.72 4.29 October 27, 1976 Savings and small-denomination time deposits.................... 5.54 5.71 5.66 5.58 5.49 5.42 5.39 Savings, total........................................................................... 4.91 4.93 4.88 4.94 4.91 4.86 4.93 Individuals and nonprofit organizations............................ 4.91 4.93 4.88 4.93 4.91 4.85 4.93 Partnerships and corporations............................................ 4.96 5.00 4.90 4.97 4.96 4.96 4.98 Domestic governmental units............................................. 4.97 4.96 4.98 4.90 4.98 5.00 4.97 All other............................................................................... 4.99 5.00 5.00 5.00 4.86 .. 5.00 Time deposits in denominations of less than $100,000, total.. 6.32 6.24 6.43 6.36 6.33 6.29 6.25 Domestic governmental units, total................................... 5.58 5.75 5.67 5.55 5.35 5.39 5.35 Maturing in— 30 up to 90 days.............................................................. 5.13 5.35 5.03 4.99 5.10 5.13 4.99 90 up to 180 days............................................................. 5.44 5.46 5.48 5.23 5.46 5.42 5.41 180 days up to 1 year...................................................... 5.53 5.59 5.60 5.59 5.41 5.59 5.35 1 year and over............................................................ 6.17 6.24 6.06 6.36 6.05 5.98 5.92 Other than domestic governmental units, total................. 6.34 6.27 6.45 6.38 6.36 6.30 6.27 Maturing in— 30 up to 90 days............................................................... 4.98 5.00 4.99 4.98 4.99 4.95 4.98 90 up to 180 days............................................................ 5.47 5.47 5.48 5.44 5.49 5.47 5.45 180 days up to 1 year...................................................... 5.47 5.48 5.50 5.47 5.49 5.47 5.43 1 up to 2 Vi years.............................................................. 5.99 5.98 6.00 5.98 5.99 5.98 5.98 2Vi up to 4 years............................................................. 6.49 6.48 6.50 6.48 6.49 6.45 6.49 4 up to 6 years................................................................. 7.21 7.22 7.19 7.24 7.21 7.23 7.19 Over 6 years..................................................................... 7.47 7.49 7.50 7.48 7.48 7.46 7.43 Memo: Club accounts1........................................................... 3.68 2.11 2.17 4.53 3.74 3.70 4.52 1 Club accounts are excluded from all of the above categories. amount of that type of deposit outstanding. All banks that had either discontinued offering or never offered particular deposit types as of the Note.—The average rates were calculated by weighting the most survey date were excluded from the calculations for those specific common rate reported on each type of deposit at each bank by the deposit types. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
542 Federal Reserve Bulletin □ June 1977 per cent, while the average rate on such deposits OTHER TIME DEPOSITS issued to nongovernmental entities declined 4 basis points to 6.30 per cent. Like savings Banks continued to allow interest-bearing, deposits, rate cutting on time deposits was con large-denomination time deposits to run off centrated primarily among large banks. For during the October to January interval. How issues to nongovernmental holders in all original ever, the decline in such deposits was less than maturity categories under 2% years, the propor in the previous 3 months, and the reduction may tion of large banks paying maximum allowable have reflected the fact that business demands rates fell 10 or more percentage points, but at for credit began to show a general rise late in small banks the proportions were about un 1976. Since the end of 1974 the total volume changed. The proportion of large banks paying of large-denomination deposits has declined by the ceiling rate on time deposits maturing in 4 more than $40 billion, to a level of $124 billion. up to 6 years was 69 per cent in January, down Remaining time deposits are distributed be from 91 per cent in October, but at other banks tween non-interest-bearing time deposits and the percentage declined only to 81 per cent from club accounts. Such non-interest-bearing de 84 per cent. In the 6-year-and-over maturity posits, most of which are likely to be escrow category the proportion of banks offering maxi accounts or compensating balances held against mum rates, which had been 95 per cent at all loans, declined slightly to a level of $4.8 billion; banks in October, fell to 80 per cent at large club account deposits declined seasonally to a banks but only to 93 per cent at other banks. level of $1.1 billion. □ Revised data for the appendix tables for the October survey are available on request from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. APPENDIX TABLES Al. Savings deposits issued to individuals and nonprofit organizations Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 (5.00 or to to per or to to per less 4.50 5.00 cent) less 4.50 5.00 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 14,337 681 1,587 12,070 12,034 188,299 7,369 21,486 159,444 157,578 Size of bank (total deposits in millions of dollars): Less than 20.................................................. 8,862 498 963 7,402 7,373 20,256 497 1,303 18,456 18,295 20-50.............................................................. 3,477 66 495 2,916 2,916 30,279 967 4,935 24,376 24,376 50-100............................................................ 1,086 55 39 992 992 21,494 1,023 652 19,819 19,819 100-500.......................................................... 725 50 56 620 617 40,063 2,324 3,502 34,238 34,127 500-1,000....................................................... 103 8 23 73 70 19,087 1,413 4,008 13,666 13,432 1,000 and over............................................... 84 4 12 68 66 57,120 1,146 7,086 48,888 47,528 NOTES TO APPENDIX TABLES 1-16: 1 See page A10 for maximum interest rates payable on time and held at banks that had discontinued issuing deposits are not included saving deposits at the time of each survey. The ceiling rate is the top in the amounts outstanding. Therefore, the deposit amounts shown of the rate interval immediately to the left. in Table 1 may exceed the deposit amounts shown in these tables. 2 Omitted to avoid individual bank disclosure. The most common interest rate for each instrument refers to the 3 Less than $500,000. stated rate per annum (before compounding) that banks paid on the largest dollar volume of deposit inflows during the 2 week period Note.—All banks that either had discontinued offering or had immediately preceding the survey date. never offered particular deposit types as of the survey date are not Figures may not add to totals because of rounding. counted as issuing banks. Moreover, the small amounts of deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Time and Savings Deposits 543 A2. Savings deposits issued to partnerships and corporations operated for profit Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 (5.00 or to to per or to to per less 4.50 5.00 cent) less 4.50 5.00 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 8,461 135 648 7,678 7,641 9,004 130 781 8,093 7,923 Size of bank (total deposits in millions of dollars): Less than 20................................................... 3,657 114 3,543 3,515 512 7 505 503 20-50.............................................................. 2,866 100 395 2,371 2,371 1,155 28 90 1,037 1,037 50-100............................................................ 1,038 16 55 967 967 1,027 7 45 975 975 100-500.......................................................... 713 17 47 649 647 2,081 60 149 1,873 1,864 500-1,000........................................................ 103 2 23 78 75 1,107 (2) (2) 918 874 1,000 and over............................................... 84 1 14 69 66 3,122 (2) (2) 2,786 2,670 A3. Savings deposits issued to domestic governmental units Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 (5.00 or to to per or to to per less 4.50 5.00 cent) less 4.50 5.00 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 6,882 348 858 5,677 5,643 5,947 63 950 4,934 4,842 Size of bank (total deposits in millions of dollars): Less than 20.................................................. 4,141 300 412 3,429 3,401 699 19 57 624 622 20-50.............................................................. 1,642 33 336 1,272 1,272 901 7 31 864 864 50-100 ...................................................... 530 39 491 491 665 200 465 465 100-500.......................................................... 433 9 41 382 382 1,272 2 139 1,131 1,131 500-1,000........................................................ 75 2 14 59 53 534 (2) (2) 476 386 1,000 and over............................................... 62 3 15 44 44 1,876 (2) (2) 1,374 1,374 A4. Savings deposits issued to all others Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 (5.00 or to to per or to to per less 4.50 5.00 cent) less 4.50 5.00 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 698 87 612 612 322 2 320 320 Size of bank (total deposits in millions of dollars): Less than 20.................................................. 277 84 193 193 11 1 10 10 20-50.............................................................. 303 303 303 2 2 2 50-100............................................................ 39 39 39 15 15 15 100-500.......................................................... 64 3 62 62 181 1 180 180 500-1,000....................................................... 2 2 2 (2) (2) (2) 1,000 and over............................................... 13 13 13 (2) (2) (2) For notes, see p. 542. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
544 Federal Reserve Bulletin □ June 1977 A5. Government time deposits in denominations of less than $100,000— Maturities of 30 up to 90 days Most common interest rates paid by insured commercial banks on new deposits, January 26,1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 5.00 5.01 5.51 (7.75 5.00 5.01 5.51 (7.75 or to to per or to to per less 5.50 7.75 cent) less 5.50 7.75 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................................. 4,290 3,477 622 191 935 701 164 71 Size of bank (total deposits in millions of dollars): Less than 20......................................... 2,238 1,573 524 141 337 215 65 20-50.................................................... 1,034 977 23 33 127 124 2 50-100.................................................. 384 368 16 . 116 115 1 100-500................................................ 485 430 41 175 91 71 (2) 500-1,000.............................................. 87 73 12 85 66 (2) (2) 1,000 and over..................................... 63 57 6 . 95 90 (2) A6. Government time deposits in denominations of less than $100,000— Maturities of 90 up to 180 days Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most commonrate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 5.00 5.01 5.51 (7.75 5.00 5.01 5.51 (7.75 or to to per or to to per less 5.50 7.75 cent) less 5.50 7.75 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................................. 7,931 1,560 5,926 445 1,464 271 1,121 72 Size of bank (total deposits in millions of dollars): Less than 20......................................... 4,715 667 3,801 248 582 52 473 56 20-50.................................................... 2,129 628 1,328 173 252 73 170 9 50-100.................................................. 405 55 335 16 107 8 99 (3) 100-500................................................ 530 126 399 5 285 34 245 6 500-1,000.............................................. 88 47 39 2 47 18 (2) (2) 1,000 and over..................................... 63 38 24 1 192 86 (2) (2) A7. Government time deposits in denominations of less than $100,000— Maturities of 180 days up to 1 year Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 5.00 5.01 5.51 (7.75 5.00 5.01 5.51 (7.75 or to to per or to to per less 5.50 7.75 cent) less 5.50 7.75 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................................. 4,200 598 2,785 818 . 670 140 410 120 Size of bank (total deposits in millions of dollars): Less than 20......................................... 2,159 414 1,361 384 . 161 21 131 10 20-50.................................................... 1,238 906 332 236 137 99 50-100.................................................. 288 39 187 62 . 13 4 8 1 100-500................................................ 380 87 263 29 . 182 76 105 2 500-1,000............................................. 79 33 39 6 . 31 13 10 8 1,000 and over..................................... 57 25 28 4 . 47 27 19 (3) For notes, see p. 542. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Time and Savings Deposits 545 A8. Government time deposits in denominations of less than $100,000— Maturities of 1 year or more Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate (per cent) Paying Most common rate (per cent) Paying ceiling ceiling rate 1 rate 1 Group Total 5.00 5.01 5.51 6.01 (7.75 Total 5.00 5.01 5.51 6.01 (7.75 or to to to per or to to to per less 5.50 6.00 7.75 cent) less 5.50 6.00 7.75 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................... 8,141 415 376 5,526 1,824 3 1,276 37 163 880 196 (3) Size oi bank (total deposits in millions of dollars): Less than 20.................. 4,499 278 221 2,779 1,221 614 18 46 455 95 20-50............................. 2,440 33 33 2,027 347 341 1 (3) 271 69 50-100........................... 579 39 391 149 93 4 74 15 100-500......................... 490 46 69 283 92 3 152 5 84 53 10 (3) 500-1,000....................... 78 11 36 25 6 35 3 17 12 3 1,000 and over.............. 55 7 17 22 9 41 6 15 16 4 A9. Other time deposits in denominations of less than $100,000— Maturities of 30 up to 90 days Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.50 4.51 (5.00 4.50 4.51 (5.00 or to per or to per less 5.00 cent) less 5.00 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.............................................................. 5,653 234 5,419 5,249 7,056 1,236 5,820 5,378 Size of bank (total deposits in millions of dollars): Less than 20..................................................... 2,341 85 2,256 2,199 202 20 182 178 20-50................................................................. 1,786 33 1,752 1,752 359 1 358 358 50-100............................................................... 725 23 702 670 829 111 717 667 100-500............................................................. 626 52 575 523 1,591 153 1,438 1,399 500-1,000.......................................................... 98 24 74 58 1,500 190 1,310 1,208 1,000 and over.................................................. 77 17 60 46 2,575 761 1,814 1,569 A10. Other time deposits in denominations of less than $100,000- Maturities of 90 up to 180 days Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.50 4.51 5.01 (5.50 4.50 4.51 5.01 (5.50 or to to per or to to per less 5.00 5.50 cent) less 5.00 5.50 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 11,064 107 1,157 9,800 9,769 31,445 66 5,162 26,217 25,418 Size of bank (total deposits in millions of dollars): Less than 20.................................................. 6,322 57 469 5,796 5,796 3,949 (3) 225 3,723 3,723 20-50.............................................................. 2,856 33 420 2,402 2,402 5,056 (3) 382 4,674 4,674 50-100............................................................ 992 156 836 836 3,999 669 3,330 3,330 100-500.......................................................... 711 4 67 639 621 7,813 (2) (2) 7,119 7,064 500-1,000........................................................ 100 10 23 67 62 2,747 20 516 2,212 2,034 1 000 and over............................................... 84 2 21 61 54 7,882 (2) (2) 5,159 4,593 For notes, see p. 542. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
546 Federal Reserve Bulletin □ June 1977 All. Other time deposits in denominations of less than $100,000— Maturities of 180 days up to 1 year Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 4.50 4.51 5.01 (5.50 4.50 4.51 5.01 (5.50 or to to per or to to per less 5.00 5.50 cent) less 5.00 5.50 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................................. 8,618 52 749 7,818 7,704 4,564 11 451 4,103 3,873 Size of bank (total deposits in millions of dollars): Less than 20......................................... 4,736 28 527 4,181 4,181 1,474 (3) 68 1,406 1,406 20-50.................................................... 2,330 69 2,261 2,228 558 14 544 543 50-100.................................................. 765 48 717 694 577 27 550 550 100-500................................................. 611 15 70 525 491 689 69 616 601 500-1,000.............................................. 98 7 14 77 65 398 (2) (2) 357 325 1,000 and over..................................... 79 2 20 57 45 869 (2) (2) 631 448 A12. Other time deposits in denominations of less than $100,000— Maturities of 1 up to ly-i years Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate * 5.00 5.01 5.51 (6.00 5.00 5.01 5.51 (6.00 or to to per or to to per less 5.50 6.00 cent) less 5.50 6.00 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................................. 13,587 57 378 13,152 12,840 34,402 576 982 32,843 30,762 Size of bank (total deposits in millions of dollars): Less than 20......................................... 8,168 221 7,947 7,726 10,400 183 10,217 9,973 20-50...................................................... 3,454 23 3,398 3,375 7,960 10 53 7,897 7,879 50-100.................................................... 1,063 71 976 960 3,622 56 222 3,344 3,342 100-500................................................ 719 42 677 636 4,988 219 4,769 4,532 500-1000................................................ 100 12 84 79 1,879 122 138 1,619 1,450 1,000 and over..................................... 84 9 71 65 5,554 389 168 4,997 3,584 A13. Other time deposits in denominations of less than $100,000— Maturities of ly-i up to 4 years Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 6.00 6.01 (6.50 6.00 6.01 (6.50 or to per or to per less 6.50 cent) less 6.50 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks.............................................................. 12,082 310 11,772 11,740 17,930 1,042 16,888 16,690 Size of bank (total deposits in millions of dollars): Less than 20..................................................... 6,798 113 6,685 6,685 3,855 60 3,795 3,795 20-50................................................................ 3,431 56 3,375 3,375 4,726 51 4,675 4,675 50-100.............................................................. 976 46 930 930 2,165 96 2,069 2,069 100-500............................................................ 701 67 634 608 2,778 426 2,352 2,297 500-1,000.......................................................... 96 19 77 73 1,079 158 921 833 80 9 71 70 3,327 250 3,077 3,022 For notes, see p. 542. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Changes in Time and Savings Deposits 547 A14. Other time deposits in denominations of less than $100,000— Maturities of 4 up to 6 years Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate i 6.50 6.51 7.01 (7.25 6.50 6.51 7.01 (7.25 or to to per or to to per less 7.00 7.25 cent) less 7.00 7.25 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 11,929 262 2,079 9,589 9,557 48,109 3,233 7,281 37,595 37,531 Size of bank (total deposits in millions of dollars): Less than 20................................................... 6,980 85 1,216 5,679 5,651 7,551 133 1,286 6,132 6,111 20-50.............................................................. 3,103 46 635 2,422 2,422 10,840 117 2,055 8,668 8,668 50-100............................................................ 976 94 882 882 6,372 625 5,747 5,747 100-500.......................................................... 693 ’ * * ioT* 108 478 473 9,720 1,457 1,951 6,312 6,269 500-1,000....................................................... 98 12 17 68 68 4,496 481 599 3,416 3,416 1,000 and over.............................................. 80 11 8 61 61 9,130 1,045 765 7,321 7,321 A15. Other time deposits in denominations of less than $100,000— Maturities of 6 years or more Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 5.00 5.01 7.26 (7.50 5.00 5.01 7.26 (7.50 or to to per or to to per less 7.25 7.50 cent) less 7.25 7.50 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................ 8,433 7 698 7,728 7,728 10,933 11 1,587 9,335 9,335 Size of bank (total deposits in millions of dollars): Less than 20.................................................. 4,529 386 4,143 4,143 906 36 870 870 20-50.............................................................. 2,277 79 2,198 2,198 2,115 28 2,086 2,086 50-100............................................................ 867 85 782 782 1,716 113 1,603 1,603 100-500.......................................................... 590 4 111 475 475 2,363 O) 496 1,866 1,866 500-1,000........................................................ 90 2 19 69 69 1,129 (2) (2) 943 943 1,000 and over............................................... 79 1 17 61 61 2,704 (2) (2) 1,966 1,966 A16. Club accounts—Christmas savings, vacation, or similar club accounts Most common interest rates paid by insured commercial banks on new deposits, January 26, 1977 Most common rate (per cent) Paying Most common rate (per cent) Paying ceiling ceiling Group Total rate 1 Total rate 1 .01 4.01 4.51 (5.50 .01 4.01 4.51 (5.50 0.00 to to to per 0.00 to to to per 4.00 4.50 5.50 cent) 4.00 4.50 5.50 cent) NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................... 8,849 4,381 1,070 601 2,796 161 1,033 137 105 101 689 165 Size of bank (total deposits in millions of dollars): Less than 20.................. 4,725 2,897 390 333 1,106 81 33 8 9 31 20-50............................. 2,556 1,021 478 149 909 122 286 27 29 14 217 3 50-100........................... 891 274 109 55 453 23 277 24 16 15 222 161 100-500......................... 543 153 76 40 273 16 178 27 35 20 95 2 500-1,000....................... 72 19 12 12 29 52 10 9 11 23 1,000 and over.............. 62 18 6 12 26 159 17 8 33 101 For notes, see p. 542. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
548 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period Febru to avoid the kinds of tensions that had beset ary through April 1977, is the ninth of a series their exchange markets during the months pre providing information on Treasury and System ceding the October 1976 realignment of parities. foreign exchange operations to supplement the On April 1 before any significant speculative regular series of semiannual reports that are pressures had re-emerged, the member countries usually issued each March and September. It agreed to a further realignment in which the was prepared by Alan R. Holmes, Manager, parities of the three Scandinavian currencies System Open Market Account, and Executive within the arrangement were adjusted downward Vice President in charge of the Foreign Func by 3 to 6 per cent against the German mark, tion of the Federal Reserve Bank of New York, the Dutch guilder, and the Belgian franc. and Scott E. Pardee, Deputy Manager for For Under these more settled trading conditions, eign Operations of the System Open Market the German mark stayed at the bottom of the Account and Vice President in the Foreign EC snake. Meanwhile, the continuing reversal Function of the Federal Reserve Bank of New of earlier hot money inflows to Switzerland York. contributed to a further easing of the Swiss franc. By contrast, the Japanese yen remained In contrast to much of last year, the markets in heavy demand through mid-April, largely in for most foreign currencies were fairly free of reaction to a further widening of the Japanese strain during the February-April period under current-account surplus. The yen rate advanced review. In part, the over-all improvement in 63A per cent, for a total rise of 10 per cent since trading conditions reflected the greater stability last December’s low, before settling back some of several currencies—mainly the pound ster 2Vi per cent by the end of April. ling, the Italian lira, and the French franc— At times during the 3-month period the dollar which had come under varying degrees of sell came on offer against continental currencies. By ing pressure in 1976. In those countries, many February the severe winter weather in much of of the policy measures that had been taken by the United States had contributed to highly the respective governments to restore internal publicized reductions in industrial and agricul and external balance in their economies were tural output, higher prices, and a larger trade beginning to take effect. These signs of progress deficit. As these developments revived market helped to bolster market confidence, stimulating reversals of earlier capital outflows and of pre viously adverse leads and lags in commercial 1. Federal Reserve System payments. repayments under special swap arrangement With their currencies now in demand, the with the Swiss National Bank respective central banks took the opportunity to In millions of dollars equivalent buy dollars in the market and to rebuild their Commitments, Jan. 31, 1977 ......................................... 992.5 international reserves. In part, also, the im Repayments, Feb.-Apr. 30, 1977 ................................—132.3 Commitments, Apr. 30, 1977 ....................................... 860.2 provement reflected the fact that participants in the European Community (EC) snake were able Note.—Data are on a transaction-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Foreign Exchange Operations 549 2. Drawings and repayments by countries with current-account surpluses were foreign central banks and the being urged to let their currencies appreciate Bank for International Settlements (BIS) generated expectations that further exchange under reciprocal currency arrangements rate adjustments might occur in the near term. In millions of dollars; drawings, or repayments ( —) Consequently, even as U.S. interest rates were beginning to firm in late April, dealers Out Feb. 1 Out standing through standing were by then offering dollars virtually across Banks drawing on System Jan. 31, Apr. 30, Apr. 30, the board against the possibility that an ex 1977 1977 1977 change rate realignment might emerge during Bank of Mexico .................... 150.0 - 150.0 the weekend of the London summit meeting, BIS (against German marks) J 35.0 May 7-8. In this atmosphere the New York 1 -35.0 market became unsettled on several occasions, Total ................................ 150.0 / 35.0 and the Federal Reserve intervened on 3 days 1-185.0 during April 15-29, selling a total of $30.6 uncertainties about our near-term economic million of marks. By the end of the period, the prospects, the dollar was marked down against dollar had declined by some 2 per cent against the German mark and other European currencies the mark. linked directly or indirectly to the mark. On In sum, the Federal Reserve sold a total of occasion, the German Federal Bank bought $66.8 million of German marks during the Febmodest amounts of dollars in Frankfurt. In New ruary-April period. These sales were all fi York the Federal Reserve offered marks when nanced from System balances, which were re trading became unsettled, selling $20.9 million plenished in part—$49.6 million equiva equivalent from existing balances on 3 days lent—by occasional purchases of marks from during February 14-28. correspondents and in the market. As the weather improved and the broad ex During the period, the Federal Reserve and pansion of the U.S. economy resumed, trading the U.S. Treasury made further progress in came into somewhat better balance through repaying debts in Swiss francs outstanding since most of March. Nevertheless, the market re August 1971. Pursuant to an agreement in Oc mained concerned over indications of a quick tober 1976 between the U.S. authorities and the ening of inflationary pressures in the United Swiss National Bank for orderly liquidation of States and of an even sharper widening in the these obligations over a 3-year period, the Fed trade deficit than could be explained by adverse eral Reserve paid $132.3 million equivalent of weather. For a while the dollar held steady amid special swap indebtedness and the Treasury re widespread expectations that interest rates deemed $79.3 million equivalent of Swiss would soon firm in the United States relative franc-denominated securities by the end of to rates abroad. April. As time passed, however, these expectations Most of the francs for these repayments were faded, and the dollar began to lose resiliency purchased directly from the Swiss National in the market. After the European close on Bank against dollars. But the Federal Reserve Friday, April 1, when incomplete reports of an EC snake realignment reached the New York 3. U.S. Treasury securities, market ahead of the official announcement, foreign currency series, trading became confused and the dollar sud issued to the Swiss National Bank denly came on offer. The Federal Reserve in In millions of dollars equivalent; issues, or tervened with modest offers of marks, selling redemptions ( —) $15.3 million equivalent. Commitments, Jan. 31, 1977 ...................................... 1,513.1 This nervousness quickly passed, but the Redemptions, Feb.-Apr. 30, 1977.............................. —79.3 Commitments, Apr. 30, 1977....................................... 1,433.8 dollar’s generally easier tone persisted. Over subsequent weeks, press reports that industrial Note.—Data are on a transaction-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
550 Federal Reserve Bulletin □ June 1977 also bought francs from the Swiss central bank During the February-April period the Bank against the sale of $29.2 million equivalent of of Mexico repaid the remainder of last year’s marks and $26.1 million of French francs, borrowings from the Federal Reserve and the which in turn were either acquired in the market U.S. Treasury. In February the Mexican central or drawn from existing balances. In addition, bank liquidated at maturity the $150 million the System purchased $23.2 million equivalent drawn under the swap line with the Federal of Swiss francs in the market or from other Reserve. In April it prepaid the $150 million correspondents in late February-early March, in drawings under the Exchange Stabilization when the franc was weakening in the exchanges. Agreement with the Treasury. By the end of April the Federal Reserve’s spe Finally, in February, the U.S. Treasury es cial swap debt to the Swiss National Bank had tablished short-term credit facilities for Portugal been reduced to $860.2 million equivalent, totaling $300 million. During the period the while the Treasury’s Swiss franc-denominated Bank of Portugal drew a total of $125 million obligations had been lowered to $1,433.8 mil on these facilities and subsequently arranged to lion equivalent. repay $50 million in early May. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
551 Statements to Congress Statement by Stephen S. Gardner, Vice Chair growth of reviews by the Board and the other man, Board of Governors of the Federal Re banking agencies undertaken to determine if serve System, before the Committee on Bank there were some practicable new measures that ing, Housing and Urban Affairs, U.S. Senate, could increase the effectiveness of remedial May 24, J977. supervisory action, the Board has been very conscious of the need to achieve this result I appreciate the opportunity to testify before this without unduly interfering with the effective Committee for the Board of Governors of the conduct of banking business. Federal Reserve System on S. 71, S. 73, S. For example, in limiting insider transactions, 895, and S. 1433. These bills contain many the Board believes that its amended proposal needed and appropriate measures. Their timely contained in Section 203 of the revised recom enactment in this Congress will aid the regula mendations submitted to the committee on Jan tory agencies in carrying out supervisory re uary 31 is preferable to the amendment to Sec sponsibilities. As you know, many of the pro tion 22 contained in Section 3 of S. 71. The visions contained in the bills parallel recom Board concluded, as explained in our letter to mendations made by the Board and result from the Chairman of June 2, 1976, that the original the experience gained by the regulatory agencies suggestion for restrictions on insider transac in recent years. tions could have adverse effects on the avail S. 71, a bill similar to S. 2304, which your ability of qualified directors for banks in smaller committee dealt with in the 94th Congress, communities and also on the availability of proposes that violations of various banking laws credit in such communities. These adverse ef be subject to civil penalties in some circum fects could be avoided if the revised restrictions stances when present law carries no penalty on loans to one borrower in Section 22 were provisions at all or requires a finding of criminal not made applicable to outside directors who intent, a difficult procedure. S. 71 also restricts do not hold more than 10 per cent of the voting insiders in their dealings with banks and im stock of a bank. It is unlikely that such outside proves the regulatory agencies’ power to take directors would be in a position to induce the remedial action. bank to make questionable loans, particularly To both emphasize and summarize the in view of the liability to which the other direc Board’s support of S. 71, I am attaching a tors would become subject. The revised amend bibliography of testimony and recommendations ment would continue to require the aggregation previously submitted to this committee and to of loans to officers and also of loans to 10 per the Congress.1 My detailed comments today will cent stockholders and companies controlled by address only those measures that the Board them in applying the limit on loans to a single recommends that the committee incorporate in borrower. the bill as now drawn. While all of these pro At the same time the Board recommended posals for legislative improvement were an out other changes that we believe would serve to strengthen the authorities’ control over transac tions that are more susceptible to insider abuses. 1 The bibliography may be obtained from Publications We propose that specific approval of two-thirds Services, Division of Administrative Services, Board of the entire Board of Directors be required, of Governors of the Federal Reserve System, Washing ton, D.C. 20551. with the interested party abstaining, before a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
552 Federal Reserve Bulletin □ June 1977 loan could be made to a director or to a more- authority to issue subpoenas in connection with than-10-per-cent stockholder or to any company hearings and investigations under the Bank controlled by such person when the amount of Holding Company Act and the authority to all such loans exceeds $25,000. In the case of assess civil money penalties for failure of bank officers and companies controlled by an officer, holding companies to file reports required under approval of two-thirds of the directors also the act. I want to stress that the Board’s ability would be required for amounts aggregating to investigate possible violations or evasions of more than $15,000. We also recommend that the Bank Holding Company Act and to police Section 22 provide that any such loan be made effectively the requirements of the act is on substantially the same terms, including in seriously hampered by the lack of this explicit terest rates and collateral, as those prevailing subpoena authority. at the time for comparable transactions with Although not suggested in our revised pro other persons. posal, we believe that it would be desirable to The Board believes that these revised provi make the divestiture authority in Section 4 of sions, coupled with the proposal in S. 71 to S. 71 applicable to bank as well as nonbank provide civil penalties for violations of Section subsidiaries as originally suggested. In many 22 of the Federal Reserve Act, will effectively instances, the subsidiary bank represents only contain the risk of insider abuse. a small part of the holding company’s interests. Certain other changes in the provisions of S. In such cases, divestiture of the bank would be 71 suggested in the Board’s revised proposal the most efficient and simplest method of pre were not included in Senator Proxmire’s venting the unsatisfactory condition of the amendment no. 196. I would like to call atten holding company’s nonbank subsidiaries from tion to those that are of particular importance impairing the condition of the bank. to the Board and to urge their inclusion in S. I also want to comment on amendment no. 71. 155, which has been proposed by Senator The Board believes that the requirements for Tower. The Board has carefully studied this the issuance of a temporary cease-and-desist amendment, which would institute certain addi order should be broadened enough to include tional due process requirements when supervis circumstances when the perceived violations of ing agencies exercise removal authority over law and unsafe and unsound practices threaten officers and directors of insured banks. We not only insolvency or substantial dissipation of believe that the Board’s revised proposal already the assets or earnings of a bank or bank holding satisfies the requirements of due process. company but also a serious weakening of the Personal dishonesty must now be proven in condition of the bank or bank holding company. a removal action. Senator Tower’s amendment We also believe that the standard for judicial would to a large extent continue this require review of such orders should be made clear so ment. Experience has shown that it is extremely that a court may enjoin a temporary cease-and- difficult to establish evidence of dishonesty. desist order only when the agency’s issuance More importantly, it is too narrow a criterion of such order was arbitrary and capricious. A because the abuse of banks more frequently similar clarification should be made to Section occurs through the gross negligence or the con 8(f), the judicial review provisions for suspen tinuing disregard for sound operations. Thus, sion of officers or directors from office pending we believe the authority for suspension and administrative removal action under Section removal should be broadened as we proposed 8(e). to include serious charges such as these, The Board also believes that a need exists whether or not such conduct stems from a vio for extension of the Board’s removal powers lation of a cease-and-desist order. under the act to officers and directors of bank Further, S. 71 and the Board’s revised pro holding companies and their nonbank subsidi posal provide for the assessment (after notice aries and Edge Act and Agreement Corpora and opportunity for submission of views) of tions. The Federal Reserve should have explicit civil money penalties for violations of various Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 553 provisions of the Bank Holding Company Act, committee mechanism for a Federal Bank Ex and orders issued under the Financial Institu amination Council because both the membership tions Supervisory Act and the Federal Reserve and subjects to be considered would be dif Act. The assessment of penalties would be sub ferent. The Federal Home Loan Bank Board is ject to de novo review in an appropriate U.S. now a member of the Coordinating Committee, district court, and the Board believes that its and the Administrator of Federal Credit Unions proposals should be altered to include a formal may be added to its membership. The Bank hearing held in accordance with the Adminis Examination Council should be limited to the trative Procedure Act. Such an amendment Federal banking agencies and should include would result in less burden on the judiciary some degree of participation by the State bank (which would review the administrative decision ing departments so that attention can be con on the substantial evidence test rather than by centrated on the unique problems of bank ex a trial de novo) and would avoid the delays and aminations, bank reports, and the training of other difficulties associated with a collection suit bank examiners. A new undertaking of this kind by the U.S. Department of Justice, especially would be significantly assisted by statutory au in those cases where the assessment is not of thorization. substantial size. The administrative imposition The Board also suggests that this period of system proposed by the Board would conform strengthening in the banking system affords the to the recommendation of the Administrative opportunity for an objective assessment of the Conference of the United States. need for emergency takeover provisions such as The Board also suggests that the committee those contained in S. 890, introduced at the consider as additions to S. 71 some other provi Board’s request in the 94th Congress and con sions in the draft bill submitted to the committee tained in Section 301(b) to (d) of the Board’s last January. Title 1 of that proposal would attached draft bill. In the last Congress your provide for a Federal Bank Examination Council committee approved the elimination of the 30along the lines of S. 3494, introduced by Sena day notice requirement in Section 3(b) of the tor Stevenson in the 94th Congress, and con Bank Holding Company Act when the Board sistent with suggestions made by the Board in finds that an emergency situation exists or that testimony before your committee in December immediate action is necessary to prevent the 1975. The Council would establish uniform probable failure of the bank or bank holding standards, procedures, and reporting forms for company involved in the proposed acquisition. the examination of banks to be employed by We urge you to take similar action this year. each of the Federal banking agencies; establish The Board also recommends serious consid and conduct schools for bank examiners; and eration be given to the provisions in Section develop uniform reporting systems for banks, 301(d) to allow a large failing bank to be ac bank holding companies, and nonbank subsidi quired in carefully controlled circumstances by aries. It seems particularly appropriate to estab an out-of-State holding company. In the last lish such a Council now in a period of improving several years, there have been some instances liquidity and general strengthening of banking requiring sales of a failing bank when the com institutions and coordinate the advances in pro munities involved might have been better served cedure and technology that have been developed if an emergency interstate acquisition procedure by the individual banking agencies as a result of this kind had been available. of the experience of the last few years. Turning to S. 73, a bill to prohibit interlock The existing informal nonstatutory coordinat ing management and director relationships be ing committee has provided an effective forum tween depositary institutions, the Board con for consultation primarily on interest rate ceil tinues to urge enactment of this proposal with ings applicable to savings and time accounts of the technical modification noted in our report banks and savings and loan associations and on of February 4, 1977. related policy issues. However, we do not be Let me briefly comment on the Board’s in lieve that it is desirable to use the coordinating volvement in this subject. In 1970 as a result Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
554 Federal Reserve Bulletin □ June 1977 of a request from the Congress, the Board made 2(c)(ii), to continue the exemption for institu a special review of interlocking personnel rela tions under common control but in such a form tionships in all of the Federal Reserve districts as to prevent evasion of the prohibitions by such and also considered the adequacy of the present a device as the exchange of a few shares of provisions of Section 8 of the Clayton Act stock between majority shareholders of two affecting interlocking relationships. As a result separate institutions. of this extensive review the Board concluded In one instance, the draft would make the that it would be desirable to make several present law less restrictive by prohibiting inter changes in the existing interlock provisions. locking service by an employee or officer only The Board communicated the results of its if he performs management functions for one study to the Congress in 1970, and in each of of the institutions. Employee interlocks involv its annual reports thereafter has included a rec ing those who do not perform management ommendation that these interlocking relation functions do not present a significant potential ship prohibitions should be revised. Last year for diminishing competition. Chairman Proxmire requested the Board to draft Although we do not believe that detailed appropriate amendments to implement these regulations will be necessary, general regulatory recommendations. This resulted in our proposal authority is proposed to be given to the Board of a bill substantively the same as S. 73. as a precautionary matter to prevent evasions Although interlocking directorates are not of the statute. The Board would also be given necessarily harmful, such relationships between the authority to authorize some interlocks. We institutions that compete for the funds of the believe there are circumstances such as an in public involve a risk of abuse that the Board terlock between an established institution and believes outweighs any reasonable expectation a small or newly established depositary institu of benefits. We believe this reasoning applies tion or a minority bank that for a limited period equally to relationships between all institutions of time might result in an increase rather than engaged in the business of receiving deposits an inhibition of competition. that may be in competition with each other, Depositary institutions would have 5 years including member banks, nonmember banks, after the date of enactment to find replacements savings and loan associations, savings banks, for individuals who would be prohibited from industrial banks, credit unions, or other similar service under the new legislation. It would seem institutions, whether or not their deposits are needlessly disruptive to concentrate the search insured by a Federal agency. Accordingly, the for qualified individuals in a shorter period of provisions of S. 73 would extend the interlock time. prohibitions to all such depositary institutions. S. 895, amendments to the Federal Deposit In order to simplify the test of determining Insurance Act, has been introduced by Chair which institutions are to be covered by the man Proxmire at the request of the Federal prohibition, now specified as being institutions Deposit Insurance Corporation. The Board has in the same or adjacent communities, the bill no comment to make on the proposals in this would provide that interlocks would be prohib bill that are of a housekeeping nature and that ited between institutions located in either the extend to the Federal Deposit Insurance Cor same standard metropolitan statistical area or poration (FDIC) authority over foreign branches within 50 miles of each other. Since there is and investments of nonmember banks compara also a likelihood of nationwide competition for ble to that the Board exercises for member large commercial accounts between very large banks. institutions, this limitation would be supple However, the provisions that would extend mented by a nationwide prohibition against an FDIC examination and subpoena authority to interlock between an institution exceeding $1 bank holding companies and subsidiaries of billion in total assets and another exceeding bank holding companies, of which nonmember $500 million in total assets. banks are subsidiaries, amount to a substantive Provisions are also included in S. 73, Section change in the law. The Congress, in enacting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 555 the Bank Holding Company Act of 1956, placed in the case of new appointees, to apply these the jurisdiction and examination authority over prohibitions against both employment and in bank holding companies in the Board. In con vestment to officials who have served their full nection with the Bank Holding Company Act terms. With respect to conflicts of interest, Amendments of 1970, the Congress again gave under the provisions of Section 207 of the U.S. extensive consideration to various proposals for Criminal Code (18 U.S.C. § 207) it is a criminal a change in jurisdiction over bank hqlding com offense for any officer or employee of the exec panies and reconfirmed the Board’s authority. utive branch to appear at any time in connection We believe that giving this authority to the with any judicial or other proceeding in which FDIC introduces an undesirable duplication in he participated personally and substantially as the bank regulatory structure. We see no need an officer or employee. That section also pro for two Federal agencies to examine and super hibits any such officer or employee for 1 year vise the same institution. after the end of his employment from appearing Finally, I would like to comment on S. 1433, in connection with any such proceeding that was the “Depository Institutions Conflict of Interest under his official responsibility within a period Act.” This bill would revise the conflict of of 1 year prior to the termination of such re interest prohibitions applicable to members of sponsibility. In the case of the Board of Gover the Board of Directors of the Federal Deposit nors, these limitations are also contained in Insurance Corporation, which includes the Board regulations on limitations on activities of Comptroller of the Currency, and the Board of former members and employees of the Board. Governors of the Federal Reserve System and In view of these provisions, we doubt the prohibits employment by or investment in a need for the application of new limitations holding company or holding company affiliate against officials who serve their full term. With of an institution supervised by the agency. respect to these officials, if any additional limi Present law covers only supervised institu tation is imposed we suggest that it should be tions. The revisions would extend such prohibi limited to no more than 6 months after the end tions to affiliates of supervised institutions. It of their terms. would also apply similar prohibitions to the The Board supports Section 7 of the bill to members of the Federal Home Loan Bank Board raise to Level I of the executive schedule the and the Administrator of Federal Credit Unions. position of Chairman of the Board of Governors These prohibitions would be applicable for a of the Federal Reserve System, and to Level period of 2 years after leaving Government II the position of the Board Members. The service, whether or not the individual had com Board’s position on this matter was presented pleted his term of office. in testimony earlier this month by Governor The Board is in complete agreement with the Lilly before the Subcommittee on Employee desirability of a specific provision that the em Ethics and Utilization of the Committee on Post ployment and investment prohibitions are appli Office and Civil Service of the U.S. House of cable to affiliates of the supervised institution, Representatives, and I ask that his testimony be as well as the supervised institution itself. This made a part of the record of this hearing. is consistent with the spirit and purpose of the Mr. Chairman, the Board would be pleased conflict of interest prohibitions. to provide any further information or assistance However, we question whether it is fair to to you and to the Committee in your consid those now in office, or necessary or desirable, eration of these bills. □ Additional statements follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
556 Federal Reserve Bulletin □ June 1977 Statement by J. Charles Partee, Member, Board and other depositary institutions, which are not of Governors of the Federal Reserve System, unknown for resorting to such devices, also before the Subcommittee on Intergovernmental frequently offer free services and give away free Relations of the Committee on Governmental merchandise in their efforts to attract new funds Affairs, U.S. Senate, May 25, 1977. when price competition is limited by interest rate ceilings on deposits. It is a pleasure to appear before this distin In addition, the costs of compliance with guished committee today to present the views regulation can be quite high. In banking, nu of the Board of Governors of the Federal Re merous reports must be filed with Federal bank serve System on S. 600. This bill sets out regulatory agencies or filled out and kept acces specific procedures for the periodic review of sible for enforcement purposes. The cost of this the myriad of regulations issued by our many paperwork to the institution constitutes a hidden Federal agencies, with consequent revision and tax imposed by the regulators on the regulated restructuring where appropriate. In testimony that must ultimately be passed on to the bank’s before the full committee on a similar bill 1 customers. The Board has been quite aware of year ago, Vice Chairman Gardner indicated the these costs and has embarked upon a System- Board’s strong sympathy and support for the wide effort to cut back on the reporting burden. basic objectives of the proposed legislation. I I am happy to say that, in the last year and am happy to note that the Board’s suggestions a half, we have been able to reduce the over-all with respect to the need to consider the interre volume of reports received by around 7 per cent. lated nature of separate industry regulations and Worst of all, Federal law and regulation have the greater time required for a truly comprehen sometimes had the effect of fostering monopo sive review process have been addressed in S. listic and cartel-like behavior on the part of 600. ostensibly competing firms by insulating these The Board continues to support the broad firms from the discipline of effective competi goals expressed in the Regulatory Reform Act. tion. On other occasions, regulatory action may By virtue of our continuing evaluation of eco preserve the inefficient marginal firm, or divert nomic developments in connection with the for resources to less than the most productive uses mulation and conduct of monetary policy, the through the offering of special advantages to Board is acutely aware that government regula certain industries. Moreover, promotion of the tion of various aspects of economic activity may special interests of individual industries via the introduce distortions and inequities into the legislative and regulatory process, in the name economy. Despite laudable objectives, there is of the public interest, may have the effect of little doubt that both Federal legislation and the advancing those special interests at the expense regulations implementing that legislation have of consumers. The danger that such regulation often had the unintended effects of introducing can be anticonsumer in nature has been en rigidities and imperfections into the functioning hanced because, until recently, the economic and evolution of industries and their related impact on consumers often was omitted from markets. All too frequently the results have been the factors considered in evaluating net public a lessening in competition, a reduced resilience benefits. to deal with economic change, and a higher and In fairness, it needs to be recognized that more rigid structure of costs and prices that the some Federal regulation does promote the public consuming public must inevitably bear. interest and contribute to the performance of the It is clear also that regulation has contributed economy. For example, regulation designed to to the inefficient use of real resources in the maintain the safety and soundness of individual economy. When regulated businesses are pre banks is critical to the strength of the financial cluded from competing directly on a price basis, system and the efficient functioning of the for example, they are likely to spend more on economy as a whole. Another example appears advertising, or elaborate office furnishings, or in the area of securities regulation where the an unnecessary proliferation of facilities. Banks SEC disclosure requirements help make needed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 557 information available to aid investor decision in the operation of the Nation’s payments sys making and increase the efficiency of securities tem; (4) its rules for the administration of the markets. But there is a critical need to review discount window through which the Federal and evaluate outstanding regulations on a peri Reserve System serves as the lender of last odic basis to see whether they are still justified, resort to the banking system and, in exigent can be simplified, or need to be modernized in circumstances, to the economy as a whole; and light of recent developments. (5) the supervision of member banks and bank It is important to recognize, I believe, that holding companies. In comparison with these regulation per se is never costless. As noted, functions, the Board’s strictly regulatory re there are always certain compliance and admin sponsibilities for banking and finance, including istrative costs incurred by both the regulator and its role in consumer credit protection, account the regulated. Moreover, there are usually indi for a relatively small portion of the agency’s rect and more subtle costs associated with re efforts or for the impact of its actions on the duced freedom of choice for the regulated and economy. the consuming public. The goal of the regulator The coverage of the Regulatory Reform Act, in implementing regulations should be to mini in the case of the banking agencies, specifically mize both these costs and their distributional refers to their “regulation of banking and fi effects and to assure that there are always public nance.” It would appear, therefore, that the benefits that outweigh these costs. As I under intent is not to discontinue all nonregulatory stand it, the principal purpose of the proposed functions or to dismantle an entire agency for legislation is to assure that there will be such want of reform plans to cover the agency’s a thorough and detailed review of these effects regulatory functions. We believe that the Con of the regulatory process, agency by agency and gress would not want to risk the abolishment industry by industry. or suspension, even temporarily, of the conduct While the Board agrees with the general of monetary policy or the supervision of banks. thrust and objectives of S. 600, there are certain Similarly, we would be deeply concerned if key features with respect both to its coverage there were no central oversight of the operation and method of implementation that need to be of the Reserve Banks and the payments mecha clarified. We are especially concerned with the nism, or of the discount window function. Such so-called “sunset” provisions that require the potential problems are by no means unique to termination of, first, regulatory enforcement au the Federal Reserve Board. For example, what thority and, second, the entire agency in the would become of the deposit insurance function event that no reform plans are enacted within of the FDIC or of its role with respect to the the prescribed time period. There are several banks requiring liquidation? I should also point reasons for questioning the advisability of using out that the Comptroller of the Currency is the such a strong forcing mechanism in order to chartering and supervisory authority for national assure that the necessary regulatory reform will banks, and these activities, too, would be sus take place. pended in the event of termination of that First, many Federal agencies, pursuant to agency. Surely these functions should continue. their legislative mandates, perform a variety of Nevertheless, there are no explicit provisions functions that are not basically regulatory in within the bill to provide for the continuance nature, but that may still depend in part for their of these functions. Even if they were construed implementation on enabling rules, orders, and to be covered by the provisions for regulations regulations. In the case of the Federal Reserve “essential for preserving public health and Board, for example, such responsibilities in safety,” we would have grave reservations that clude: (1) its central banking function with the Department of Justice could assemble the regard to international finance; (2) the formula necessary resources to perform these functions tion and implementation of monetary policy; (3) that are essential to the Nation’s economic oversight activities with respect to the Federal well-being. For these reasons, we must presume Reserve Banks, which in turn play a pivotal role that the bill is directed to the purely regulatory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
558 Federal Reserve Bulletin □ June 1977 activities of the agencies and would not, in the opportunity to have their applications for Board case of the Federal Reserve Board, encompass approval reviewed and acted upon. The same central banking, monetary policy, oversight of situation would exist with respect to applications the Reserve Banks, operation of the discount to the Board for new branch offices, to establish mechanism, bank supervision, and the inciden Edge corporations, to engage in foreign banking tal regulations of the Federal Reserve necessary activities requiring Board approval, or for per to carry out these functions. mission to issue new debt or equity securities— In view of the problems associated with the to name a few. The result could be severe sunset provisions, the Board would urge a nar inequities for firms who could not obtain the rower and more specific delineation of the approval of the Board to engage in activities aspects of regulation of banking and finance to that may have already been authorized for their be covered by the bill, to which the application competitors. of these provisions would then be directed. This brings me to the final point I wish to The Board has a second concern about the make about the proposed legislation. As I have sunset mechanism. Instead of easing the regula noted, most regulatory agency rules and regula tory climate, the abrupt termination of even the tions are issued pursuant to the mandates of regulatory functions of Federal agencies might specific laws. As such they represent the efforts present obstacles to the efficient functioning of of the agencies to implement congressional in the economy simply because of the language tent. It may therefore be that many of the of many of our laws. Federal statutes are gener economic problems and inequities caused by ally implemented by way of agency regulations, regulation are rooted in the enabling legislation and in many cases agency approval pursuant to itself, rather than in the specific form the regu those regulations is necessary before individuals lations have taken. or firms can participate in certain activities or I would suggest, therefore, that consideration markets. be given to broadening the scope of the review In the event the sunset provisions of S. 600 contemplated in the Regulatory Reform Act to were triggered by lack of action on bank regu encompass, where necessary, review and reform latory reform, under one possible interpretation of the enabling legislation as well as existing this would mean that institutions seeking Board regulation. Real progress in improving and approval would be hampered—not freed—for simplifying our Federal regulatory apparatus, I lack of a regulatory process. Thus, for example, would imagine, would often require rather fun as the Bank Holding Company Act is written, damental amendments to underlying statutes. it is unlawful for a bank holding company to In conclusion, I wish to reiterate that the be formed without the express approval of the Board supports the basic concepts of the Regu Board of Governors. Similarly, existing bank latory Reform Act but believes that further at holding companies wishing to expand or to tention should be given to problems of its scope engage in new activities would be denied the and implementation. □ Statement by J. Charles Partee, Member, Board ommends the enactment of this bill, because by of Governors of the Federal Reserve System, providing a means for earning a direct return before the Committee on Banking, Housing and on the Treasury’s liquid balances it will materi Urban Affairs, U.S. Senate, June 6, 1977. ally reduce certain operational difficulties en countered by the Federal Reserve in its day-to- I appreciate the opportunity to appear before this day management of monetary policy. distinguished committee to present the views of Until recent years, Treasury cash manage the Board of Governors of the Federal Reserve ment practices were conducted with a view to System on H.R. 5675. The Board strongly rec keeping fluctuations in Treasury balances from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 559 influencing the supply of bank reserves and cluded that the Treasury was adequately com short-term interest rates. This policy, in effect, pensated for this revenue loss by services pro recognized that the level of the Treasury balance vided by the banks. But with the general rise is quite volatile because cash flows to the in market interest rates that had occurred during Treasury—from taxes and Federal borrowing— the late 1960’s and early 1970’s, and the need tend to be bunched at particular times of the to maintain larger balances consistent with month and year, whereas cash outlays are more growing Federal outlays, it appeared that the evenly distributed. It makes a difference foregone interest income on the Treasury’s bal whether the Treasury maintains its cash balance ance had come to exceed substantially the value with private depositories or with the Federal of services rendered to the Treasury by the Reserve. By holding most of the balance in tax depositary institutions maintaining tax and loan and loan accounts at commercial banks the accounts. potential reserve effects of fluctuations in the The Treasury did not have the authority to Treasury’s cash position are minimized. When invest directly in short-term earning assets, and funds moved to or from the Treasury, they thus to earn some income with its idle cash. simply shifted between private and public de But it was assured of an indirect return when mand deposits at banks and exerted little net it reduced its non-interest-bearing deposits at impact on the total supply of reserves available commercial banks and transferred the bulk of to the banking system. The need for Federal its cash balance to the Federal Reserve System. Reserve open market operations to offset the When the Treasury’s account with the Federal reserve effects of variation in the Treasury’s Reserve is increased, the System makes corre balance was reduced correspondingly. sponding additions to its holdings of Govern The Treasury did maintain an operating bal ment securities. And since virtually all of the ance at Federal Reserve Banks as well, on which earnings on Federal Reserve assets are turned the bulk of its checks were drawn. But as checks over to the Treasury, this transfer of deposits for outlays were cashed, the operating balance provides a return to the Treasury that would not was quickly replenished by “calls” on the be available if the balances remained with de Treasury’s tax and loan accounts at private positary institutions. banks. In this way the Treasury held a roughly Unfortunately, this change in procedure has constant balance with the Federal Reserve Sys complicated the task of managing monetary tem. policy. This is so because virtually all of the Of course, some deviation in the level of the short-run volatility in Treasury deposits now operating balance was inevitable. An accurate occurs in the accounts held with Federal Reserve current measure of the volume of Treasury Banks. Since variation in the level of such checks written was difficult to obtain, and it was deposits has a dollar-for-dollar impact on the hard to forecast exactly when outstanding supply of reserves available to the banking sys checks would clear through the Federal Reserve. tem, the current concentration of the Treasury’s Nevertheless, the procedure was highly effec cash position in these accounts greatly increases tive in reducing the degree of fluctuation in the the need for offsetting Federal Reserve open Treasury’s account at the Federal Reserve market operations. Banks. Thus, from the standpoint of minimizing When most of the Treasury’s cash balance the impact of swings in the Treasury’s cash is held at Federal Reserve Banks—as has been position on the supply of bank reserves, the the case since 1974—increases in the Treasury’s former Treasury tax-and-loan account system account reduce the over-all reserve position of worked well, and the implementation of mone the banking system, and decreases ease that tary policy was insulated quite successfully. position. Erratic swings in the Treasury balance In 1974, however, the Treasury re-examined are often large and concentrated, so that the the tax-and-loan account system, especially with Federal Reserve must take action through open regard to the foregone potential interest earnings market operations to offset the unwanted influ on its cash balances. An earlier study had con ence on bank reserves. The need for intervention Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
560 Federal Reserve Bulletin □ June 1977 in the Government securities market on this Government securities, as is typical of periods scale has sometimes made the conduct of mon with relatively low interest rates and low inven etary policy in the short run more difficult. tory financing costs. As the economy continues A few comparisons will help to illustrate the to expand, however, the picture could change. significance for open market operations of this If pressures on financial markets intensify, shift in Treasury policy. In 1970—before the Government securities are likely to be less Treasury began to alter its cash management readily available in the market and a large techniques—the average weekly change in volume of open market operations may become Treasury deposits at the Federal Reserve was more difficult to accomplish. only $124 million. In 1976—after the new pol Thus, from a monetary policy standpoint, the icy had been fully implemented—the average Board urges prompt action on the proposed weekly change jumped to $2.0 billion. Prin legislation. Passage of H.R. 5675 would permit cipally due to this enormous increase in volatil the Treasury to receive at least the amount of ity, the average weekly change in reserves pro earnings it is obtaining now without the present vided or absorbed by Federal Reserve open complications and operational costs to Federal market operations rose to nearly $2.5 billion in Reserve open market policy. Moreover, there 1976 from less than $400 million in 1970. should be distributional advantages if the The shift is even more striking when one Treasury maintains its balance with depositary focuses on the weeks of peak need to offset institutions. Then, when balances shift between technical factors affecting bank reserves. In the private sector and the Treasury, the supply 1970, the maximum week-to-week change in of funds in regional and local credit markets reserves resulting from open market operations can remain unaffected. If, instead, these funds amounted to just under $1.2 billion, and the are moved to and from the Federal Reserve, movement in the Treasury balance necessitated there can be unsettling transitory effects on only $130 million of this change. By 1976, individual credit markets, since the impact of however, open market operations added or ab offsetting open market operations tends to focus sorbed more than $4.0 billion of reserves in 12 initially on major money market center institu different statement weeks, and in each case tions. fluctuation in the Treasury balance was the I have left all comments on the technical dominant factor requiring action. The largest of implementation of H.R. 5675 to Mr. Mosso, these week-to-week changes required interven since he has direct responsibility for adminis tion totaling $6.0 billion. tration of Treasury balances. However, I would To date the Federal Reserve has generally like briefly to comment on one provision of the been able to execute the requisite volume of bill. Under present law, commercial banks, open market operations needed to offset the mutual savings banks, and Federally chartered unwanted reserve effect of these enlarged credit unions may all hold Treasury deposits. swings in the Treasury balance. However, there Savings and loan associations are the only type have been significant difficulties. The Treasury of depositary institution not authorized to par balance has become harder to estimate, large ticipate in the tax-and-loan account system, and day-to-day variations in the balance make it this bill would add them to the list. In this more difficult to develop a consistent short-term connection, I would like to point out that sav operating strategy, and the sheer size of the ings and loans typically hold a very large share operations required has at times constrained the of their earning assets in long-term mortgage System’s flexibility in pursuing the more general loans. Since Treasury operating balances are by objectives of monetary policy. their very nature volatile, it seems particularly The Federal Reserve’s success in offsetting important that the regulatory authorities insist the reserve impact of sharp fluctuations in the that these institutions add to their short-term Treasury balance has been aided by the avail liquid assets in amounts commensurate with any ability of a relatively large market supply of such balances obtained. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
561 Record o f Policy Actions o f the Federal Open Market Committee MEETING HELD ON APRIL 19, 1977 Domestic Policy Directive The information reviewed at this meeting suggested that growth in real output of goods and services in the first quarter of 1977 had increased from the pace in the fourth quarter of 1976—now indicated by revised estimates of the Commerce Department to have been at an annual rate of 2.6 per cent, compared with 3.9 per cent in the third quarter and 4.5 per cent in the second. The rise in average prices—as measured by the fixed-weighted index for gross domestic business product—appeared to have been apprecia bly faster than the annual rate of 4.9 per cent estimated for the fourth quarter of last year, in part because of the adverse effects of severe winter weather on prices of foods. According to staff estimates, growth in real GNP had been at a slightly higher rate in the first quarter than had been projected a month earlier. It now appeared that the expansion in consumer purchases of goods and services was substantially stronger than had been anticipated; that the gain in business outlays for equipment was larger; and that the rebound in business inventory investment from the sharply reduced rate in the fourth quarter of 1976 was greater. On the other hand, growth in construction outlays slowed somewhat more than had been expected, and the deterioration in net exports was more pronounced. The staff projections for subsequent quarters incorporated revised assumptions for fiscal policy, as a result of the President’s an nouncement on April 14 of changes in his package of measures designed to stimulate growth in economic activity. The revised assumptions excluded rebates of Federal income taxes and related payments and any increase in the business investment tax credit. It was still assumed that personal income taxes would be reduced and that Federal spending for job-creating programs and for public Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
562 Federal Reserve Bulletin □ June 1977 works would be expanded. No assumptions were made with respect to the administration’s energy program, which was to be the subject of an address by the President to the Congress on April 20. Growth in real GNP over the next few quarters was still projected to be substantial, reflecting strength in consumer demands and expansion of business investment in both fixed capital and invento ries. The projections continued to suggest that the rise in the fixed-weighted price index for gross business product would be less rapid in the quarters immediately ahead than in the first quarter, when it had accelerated because of the adverse effects of severe weather. Upward price pressures over the next several quarters were nonetheless expected to be somewhat greater than had been antici pated earlier, partly because of further deterioration in the outlook for prices of some foods and partly because of the prospect of another increase in the minimum wage soon after midyear. In March economic activity continued to gain in strength. Indus trial production—which had risen 1 per cent in February, recovering to the December level—expanded about lVi per cent further in March. About one-third of the gain was attributable to a substantial rise in production of motor vehicles, but increases in output were widespread among other types of consumer durable goods and business equipment and among construction supplies and materials. For the first quarter as a whole, industrial production expanded almost twice as much as in the preceding quarter, despite the adverse effects of the weather in January and early February. Rates of capacity utilization rose in March to about 82 per cent in manufacturing as a whole and to about 81 per cent in the materials-producing industries. However, these utilization rates were still 6 and 10 percentage points, respectively, below the peaks in the previous business expansion, when capacity constraints in a number of materials-producing industries limited growth in out put. Private housing starts, following their weather-related drop in January, rebounded in February and rose sharply further in March to an annual rate of about 2.1 million units—the highest rate in nearly 4 years. For the first quarter as a whole, starts about equaled the total for the fourth quarter of 1976 and remained more than one-tenth above that for the third quarter. Developments in the labor market in recent months reflected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 563 the strengthening in economic activity. Payroll employment in nonfarm establishments rose sharply in March, after having in creased considerably in each of the preceding 4 months. Employ ment gains in March were widespread by industry and were particularly large in the manufacturing, construction, and serviceproducing industries. The labor force also increased sharply further in March; nevertheless, the unemployment rate declined from 7.5 to 7.3 per cent, returning to the January level. Personal income, which had changed little in January, rose substantially in February. The rise was concentrated in wage and salary disbursements and for the most part reflected further gains in employment and recovery in the average length of the workweek from the adverse effects of the weather in January. The gain in employment in March suggested that wage and salary payments continued to grow at a rapid pace. Expansion in retail sales had been quite strong recently. Sales for February had been revised upward, and in March they rose substantially further, reflecting widespread increases among types of retail outlets. Sales of new domestic and foreign automobiles surged upward in March to an annual rate of about 12% million units, compared with rates of about 103A million in February and 10 million in the fourth quarter of 1976. The rate in March was the highest since the spring of 1973, and it suggested improvement in consumer confidence and a strong underlying demand for automobiles stem ming in part from postponed replacement needs. The gains were impressive for foreign as well as for domestic models; sales of foreign models reached a new record annual rate of 2 million units. Business capital outlays appeared to have strengthened in the first 2 months of 1977, although much of the improvement reflected recovery in shipments of trucks, automobiles, and farm equipment from the effects of strikes in the fourth quarter of 1976. The value of private nonresidential construction put in place rebounded in February, but it remained below the peak attained last September. New orders for nondefense capital goods—which, according to revised data, had risen somewhat more in January than had been reported earlier—declined in February. However, the average for the 2 months was significantly higher than the monthly average for the fourth quarter of 1976. Unfilled orders for such goods edged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
564 Federal Reserve Bulletin □ June 1977 up over the January-February period. Contract awards for com mercial and industrial buildings—measured in terms of floor space—declined in February, and the average for the first 2 months of 1977 was unchanged from that for the fourth quarter of 1976. The Commerce Department had reported in mid-March that busi nesses were planning to spend 11.7 per cent more for plant and equipment in 1977 than in 1976. The index of average hourly earnings for private nonfarm pro duction workers rose at an annual rate of about 5 per cent in March. Indexes for January and February had been revised upward appre ciably, however, with the result that the rise over the 3 months was at an annual rate of IVi per cent—somewhat faster than the pace during 1976. Much of the acceleration in the first quarter was attributable to an increase in the minimum wage at the beginning of 1977, which had affected rates of pay in the service and trade industries in particular. The wholesale price index—which had risen 0.9 per cent in February, after having increased 0.6 per cent on the average in the preceding 5 months—rose 1.1 per cent in March, the largest monthly increase since late 1975. Average prices of farm products and foods rose 2.1 per cent in March, reflecting especially sharp increases for coffee, cocoa, tea, soybeans, fresh fruits and vegeta bles, and sugar. Average prices of industrial commodities rose 0.8 per cent—somewhat more than in the immediately preceding months—reflecting large increases for metals and metal products, transportation equipment, textiles and apparel, and fuels and power. The consumer price index went up 1.0 per cent in February, compared with 0.8 per cent in January and with 0.4 per cent on the average during the second half of 1976. Retail prices of foods rose sharply in February, led by increases in fresh fruits and vegetables and coffee. Among nonfood items, substantial increases were reported for fuel oil, gasoline, and used cars. The average value of the dollar against leading foreign currencies had declined about Vi per cent since mid-March, returning to about its level at the beginning of the year. The depreciation of the dollar in the recent period was accounted for mainly by an appreciation of the Japanese yen, which rose 4 per cent in response to intensified demands for that currency. Demands also intensified for the U.K. pound, but exchange market intervention by the Bank of England Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 565 kept the pound from appreciating. The average value of the curren cies associated in the European “snake” arrangement changed little against the dollar. The U.S. foreign trade deficit remained large in February, and the average for the first 2 months of the year was sharply higher than that for the fourth quarter of 1976. In the January-February period, as compared with the fourth quarter, the value of imports of foods rose sharply—as more coffee entered the country at higher prices—and imports of a variety of other consumer goods increased. The over-all value of exports declined slightly; exports of agricul tural commodities were sustained—as their average unit values advanced while the physical quantity declined—but exports of other goods declined somewhat. Since the middle of 1976 exports of nonagricultural commodities had shown little net growth, reflecting sluggishness in the economies of other major industrial countries. At U.S. banks, growth in total credit was somewhat less rapid in March than in February. Total loans expanded at an accelerated pace, but holdings of Treasury securities increased much less than in February and holdings of other securities declined. Over the first quarter, expansion in total bank credit was greater than in any other quarter in 2Vi years. Business credit demands remained generally strong. Business loans at banks rose during March at about the average rate for the preceding 5 months. At the same time the outstanding volume of commercial paper issued by nonfinancial corporations declined, as such corporations relied to a greater extent than in other recent months on internal sources of funds and on the proceeds of the sizable amount of securities sold in the capital market during the month. The narrowly defined money stock (M-l), which had increased little in February, rose at an annual rate of about 6 per cent in March. From the fourth quarter of 1976 to the first quarter of 1977, M-l grew at a rate of about 43A per cent. Weekly data suggested that M-l had expanded substantially in early April. Reflecting the pick-up in growth of M-l, the annual rate of growth in M-2 increased to about 8V4 per cent in March from about 6% per cent in February. Inflows to banks of time and savings deposits other than large-denomination CD’s continued to slacken in March, mainly because of a contraction in savings deposits held Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
566 Federal Reserve Bulletin □ June 1977 by State and local governments. Inflows of deposits to nonbank thrift institutions also continued to slow, but the rate of growth in M-3 edged up. From the fourth quarter of 1976 to the first quarter of 1977, M-2 and M-3 grew at rates of about 9Vi and 11 per cent, respectively. At its March meeting the Committee had decided that growth in M-l and M-2 over the March-April period at annual rates within ranges of 4xh to 8V2 per cent and 7 to 11 per cent, respectively, would be appropriate. It had judged that these growth rates were likely to be associated with a weekly-average Federal funds rate in the area of 4% to 4% per cent. The Committee had agreed that if growth rates in the aggregates over the 2-month period appeared to be deviating significantly from the midpoints of the indicated ranges, the operational objective for the weekly-average Federal funds rate should be modified in an orderly fashion within a range of 4lA to 5XA per cent. Over most of the interval between the March and April meetings, incoming data suggested that the 2-month growth rates for M-l and M-2 would be well within their respective ranges. Conse quently, the Manager of the System Open Market Account contin ued to aim for a Federal funds rate in the area of 4% to 43A per cent. Near the end of the period, however, it appeared that growth in M-l would exceed the upper limit of its 2-month range and that growth in M-2 would be in the upper part of its range. In those circumstances, the Manager aimed for a Federal funds rate of around 43A per cent. Market interest rates changed little over most of the inter-meeting period, but they generally moved lower late in the period when the President’s intention to drop the tax rebates and related pay ments from his fiscal program became known. Yields on mediumterm Treasury notes declined more than other rates, because market participants had anticipated that most of the Treasury borrowing in the second quarter to finance the rebates and related payments would follow the pattern of recent borrowings and would be concentrated in the medium-term area. The Treasury raised $3.7 billion of new money in securities markets during March, largely through sales of 2- and 4-year notes. For the first quarter as a whole, the Treasury sold $14 billion of marketable securities—considerably less than the $20 billion to $23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 567 billion it had projected in January. The difference was attributable to several factors: The Federal deficit in the first quarter was not so large as had been anticipated, chiefly because of a shortfall in outlays; the Treasury sold substantially more nonmarketable se curities than had been expected—primarily to State and local governments undertaking advance refundings of their own securi ties; and the Treasury had drawn down its cash balance to a level at the end of March that was $3 billion below the amount projected in late January. In early April the Treasury sold $4.5 billion of short-dated cash-management bills in order to bridge a low point in its cash balance prior to the mid-April date for tax payments. In the corporate bond market the volume of new securities offered publicly expanded more than seasonally during March, reflecting large offerings by utilities—for the most part telephone companies. For the first quarter of 1977 as a whole, however, offerings were about the same as those for the final quarter of 1976 and were below those for the first quarter of that year. In the market for State and local government bonds, offerings of new issues reached a record of $4 billion in March, and the total for the first quarter substantially exceeded offerings in the final quarter of 1976. In March, however, investment interest from property-casualty insurance companies and from investment com panies remained substantial, and yields on tax-exempt securities moved lower during the month and in early April, even before the withdrawal of the proposed rebate of Federal taxes. About one-third of the new issues in March were associated with advance refundings. Interest rates on new commitments for primary conventional home mortgages at savings and loan associations rose somewhat during March and early April from recent lows in late February and early March, as demands for mortgages remained strong. In February outstanding commitments of savings and loan associations to acquire mortgage loans had returned to record levels after having edged down a little in January. Over the past two quarters the ratio of commitments to total cash inflows at these institutions had risen noticeably. For the period immediately ahead, the principal new factor in the outlook for credit demands was the prospective shift in the position of the U.S. Treasury from a sizable net borrower to a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
568 Federal Reserve Bulletin □ June 1977 temporary repayer of debt. At the same time, however, business demands for credit were still expected to expand as a result of continuing improvement in economic activity. Projections of con sumer expenditures implied a continued high rate of growth in consumer credit outstanding, and expansion of mortgage debt was anticipated to remain large. State and local government borrowing was also expected to remain sizable. In the discussion of the economy at this meeting, it was suggested that for some time the situation in general had been strengthening, and that—in the light of the housing starts figures for March, which had been released just the day before—residential construction activity might prove to be even stronger than had been projected by the staff. It was emphasized that developments were taking place in the sphere of governmental economic policy that could have important consequences for the course of economic activity and prices—including the recent changes in the administration’s fiscal policy proposals, the President’s announcement on April 15 of a series of measures aimed at controlling and reducing inflation, and the energy program to be presented to the Congress on the day after this meeting. With respect to the consequences of the changes in fiscal policy, it was suggested that elimination of the proposal to raise the investment tax credit from 10 to 12 per cent was not of much significance, because an increase of 2 percentage points would have at best only a small effect on business fixed investment—especially in view of the rate at which prices of plant and equipment were rising. Insofar as an increase in the tax credit would add to investment outlays, the effect of its elimination was likely to be offset by another consequence of the changes in fiscal policy proposals: the favorable effect on interest rates to be expected from the reduction in the prospective Federal deficit. It was observed that business investment also would be encouraged by one of the measures proposed to reduce the rate of inflation—specifically, the development of procedures to speed up the issuance of construction permits by government agencies. Withdrawal of the proposal for tax rebates was thought to be of considerable significance. Some members expected that this change, especially in conjunction with the measures aimed at reducing inflation, would contribute to improvement in business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 569 and consumer confidence and in that way would add strength to the economic outlook. The details of the energy program had not yet been announced, but its probable major features had already been described in the press. It was observed that the program was extensive and complex; that its effects were difficult to appraise; and that uncertainties would be heightened during the long period that was likely to be consumed in legislating the actual measures. Although the need for such a program appeared clear, the suggestion was made that it could have some negative consequences for economic activity in the short run—chiefly, perhaps, if uncertainties led to a dampen ing of growth in business capital investment—and that over time it would tend to exert some upward pressure on prices. Attention was drawn to other potentially troublesome aspects of the developing economic situation. Thus, one member com mented that growth in nominal GNP over the quarters ahead at the rate indicated in the staff projections—which did not take the energy program into account—might well be accompanied by considerable strain in financial markets. Another member suggested that the economic expansion had become unbalanced in the sense that growth in business fixed investment had lagged that in other major sectors of demand. The question was raised whether in this expansion—in contrast with earlier ones—an acceleration in busi ness capital outlays might not be delayed until capacity utilization reached a relatively high rate and shortages were developing. With respect to the degree of balance during this upswing, it was also pointed out that net exports had deteriorated sharply since 1975 and had exerted a drag on the expansion in over-all activity in this country. At this meeting the Committee reviewed its 12-month ranges for growth in the monetary aggregates. At its January meeting the Committee had specified the following ranges for growth over the period from the fourth quarter of 1976 to the fourth quarter of 1977: M-l, 4% to 6V2 per cent; M-2, 7 to 10 per cent; and M-3, 8V2 to IIV2 per cent. The associated range for growth in the bank credit proxy was 7 to 10 per cent. The ranges being considered at this meeting were for the period from the first quarter of 1977 to the first quarter of 1978. In the discussion of the ranges for growth in the aggregates over Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
570 Federal Reserve Bulletin □ June 1977 the year ahead, members of the Committee were almost unanimous in believing that a reduction of some kind would be appropriate at this time as another step toward the ultimate objective of achieving longer-run rates of monetary expansion consistent with general price stability. However, opinions differed as to the specific reduction to be made. In advocating a further reduction in the longer-run ranges for monetary growth, a few members noted that the economic situation had strengthened over recent months and that less stimulus from monetary policy was required now, even though the administra tion’s proposals for fiscal stimulus had been scaled down. At the same time, it was observed, inflationary forces appeared to have increased. One member expressed the view that advances in prices attributable to exogenous forces—such as an increase in the price of oil—should not be fully accommodated in establishing appro priate rates of monetary growth; but neither should they be wholly unaccommodated because that could create a high degree of mone tary stringency. In the current circumstances, it was observed, a further step in the gradual process of reducing the longer-run ranges would make a useful contribution to rebuilding confidence in economic pros pects. It was suggested, moreover, that continuation of that process would be consistent with the President’s announced objective of achieving a 2-percentage-point reduction in the rate of inflation by the end of 1979. In support of some reduction in the longer-run ranges, it was noted that from the first quarter of 1976 to the first quarter of 1977 growth in M-l—at 6.2 per cent—was more rapid than in any four-quarter period since April 1975 when the Committee had begun to adopt 1-year ranges, and that rates of growth for M-2 and M-3 had been relatively high as well. Over the most recent two quarters, growth in M-l—at an annual rate of about 5% per cent—had been well within its range, but growth in both M-2 and M-3 had been above the upper limits of their ranges. Partly because of the uncertainties associated with the energy program, there was little sentiment for making more than small reductions in the longer-run ranges at this time. Most members were inclined to favor retaining the existing AVi to 6V2 per cent range for M-l while reducing the upper limit—in some cases, both Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 571 limits—of the ranges for M-2 and M-3 by V2 of a percentage point. In this connection, it was noted that growth in the interest-bearing deposits included in M-2 and M-3 had slackened in recent months. However, there also was some sentiment for reducing the lower limit of the range for M-l by V2 of a percentage point—either alone or in combination with some reduction in the ranges for M-2 and M-3. At the conclusion of its discussion the Committee arrived at a consensus calling for retention of the existing range for M-l and reductions of V2 of a percentage point in the upper limits of the ranges for M-2 and M-3. The ranges thus were 4V2 to 6V2 per cent for M-l, 7 to 9xh per cent for M-2, and 8V2 to 11 per cent for M-3. The associated range for the rate of growth in the bank credit proxy was 7 to 10 per cent. It was agreed that the longer-run ranges, as well as the particular aggregates for which such ranges were specified, would be subject to review and modification at subsequent meetings. It was also understood that short-run factors might cause growth rates from month to month to fall outside the ranges contemplated for the year ahead. The Committee adopted the following ranges for rates of growth in monetary aggregates for the period from the first quarter of 1977 to the first quarter of 1978: M-l, 4V6 to 6V2 per cent; M-2, 7 to 9V2 per cent; and M-3, 8V2 to 11 per cent. Votes for this action: Messrs. Burns, Volcker, Coldwell, Gardner, Guffey, Jackson, Lilly, Mayo, Morris, Roos, and Wallich. Vote against this action: Mr. Partee. Mr. Partee—although he agreed in principle with the longer-term objective of reducing the ranges—dissented from this action be cause he opposed any adjustment at this particular juncture. He noted that the administration had just withdrawn its proposal for the tax rebate; that the forthcoming energy program, by raising the price structure, might tend to dampen economic expansion; and that very large increases in the velocity of the various monetary aggregates would have to occur over the next year if nominal GNP were to grow at the rate projected by the staff and good progress were thus to be made in reducing unemployment. As to policy for the period immediately ahead, the Committee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
572 Federal Reserve Bulletin □ June 1977 members were willing to tolerate growth in the monetary aggregates over the April-May period within ranges that were higher than those adopted for the year ahead because of the expectation that the forces contributing to rapid expansion in M-l in early April would prove to be transitory and that the bulge in growth for the month as a whole would for the most part be offset by slower growth later on. Members of the Committee did not differ greatly in their prefer ences for ranges of growth for the monetary aggregates over the April-May period. For M-l, most of them favored a range of 6 to 10 per cent, but a number expressed a preference for a slightly lower range—specifically, 5% to 9xh per cent. For M-2, -most members favored a range of 8 to 12 per cent; a few preferred IVi to 11V2 per cent. Almost all of the members favored directing operations initially toward the objective of maintaining the Federal funds rate at its current level of about 4% per cent, but one or two members suggested that initial operations be directed toward achieving a slightly higher rate. With respect to the degree of leeway for operations during the inter-meeting period in the event that the aggregates appeared to be deviating significantly from the midpoints of the specified ranges, almost all of the members preferred to specify a range for the funds rate of 4Vi to 5XA per cent. However, one expressed a preference for a range of 41/* to 5% per cent and another for 4Vi to 5Vi per cent. The member who proposed the latter range also advocated directing operations toward moving the funds rate slowly toward 5 per cent even if the aggregates appeared to be growing at rates near the midpoints of their specified ranges, primarily because he thought that the recent acceleration in growth of M-l might reflect fundamental forces to a greater extent than was generally assumed. At the conclusion of the discussion the Committee decided that growth in M-l and M-2 over the April-May period at annual rates within ranges of 6 to 10 per cent and 8 to 12 per cent, respectively, would be appropriate. It was understood that in assessing the behavior of the aggregates, the Manager should continue to give approximately equal weight to the behavior of M-l and M-2. In the judgment of the Committee, such growth rates of the aggregates were likely to be associated with a weekly-average Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 573 Federal funds rate of about 4% per cent. The Committee agreed that if growth rates of the aggregates over the 2-month period appeared to be deviating significantly from the midpoints of the indicated ranges, the operational objective for the weekly-average Federal funds rate should be modified in an orderly fashion within a range of 4Vi to 5% per cent. 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 increased in the first quarter from the reduced pace in the fourth quarter of 1976. In March industrial output, retail sales, and employment expanded substan tially further. Although the labor force also increased sharply, the unemployment rate declined from 7.5 to 7.3 per cent. The wholesale price index for all commodities again rose substantially; increases were particularly sharp among farm products and foods, and there were sizable advances for many industrial commodities. The index of average wage rates rose in the first quarter of 1977 at a somewhat faster pace than it had on the average during 1976, reflecting largely an increase in the minimum wage. The average value of the dollar against leading foreign currencies has declined somewhat over the past month, returning to about the level at the beginning of the year. Demand for the Japanese yen and the U.K. pound intensified. The U.S. foreign trade deficit continued large in February. M-1 grew at a moderate pace in March but increased substantially in early April. At banks and thrift institutions, inflows of time and savings deposits other than large-denomination CD’s continued to slacken in March. Market interest rates declined considerably in mid-April, after having changed little since mid-March. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster bank reserve and other financial conditions that will encourage continued economic expan sion, while resisting inflationary pressures and contributing to a sustainable pattern of international transactions. Growth in M-l, M-2, and M-3 within ranges of 4xh to 6V2 per cent, 7 to 9Vi per cent, and 8V2 to 11 per cent, respectively, from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
574 Federal Reserve Bulletin □ June 1977 the first quarter of 1977 to the first quarter of 1978 appears to be consistent with these objectives. These ranges are subject to reconsideration at any time as conditions warrant. The Committee seeks to encourage near-term rates of growth in M-l and M-2 on a path believed to be reasonably consistent with the longer-run ranges for monetary aggregates cited in the preceding paragraph. Specifically, at present, it expects the annual growth rates over the April-May period to be within the ranges of 6 to 10 per cent for M-l and 8 to 12 per cent for M-2. In the judgment of the Committee such growth rates are likely to be associated with a weekly-average Federal funds rate of about 43A per cent. If, giving approximately equal weight to M-l and M-2, it appears that growth rates over the 2-month period will deviate significantly from the midpoints of the indicated ranges, the operational objective for the Federal funds rate shall be modified in an orderly fashion within a range of 4Vi to 5Va per cent. If it appears during the period before the next meeting that the operating constraints specified above are proving to be significantly inconsistent, the Manager is promptly to notify the Chairman who will then decide whether the situation calls for supplementary instructions from the Committee. Votes for this action: Messrs. Burns, Volcker, Coldwell, Gardner, Guffey, Jackson, Lilly, Mayo, Morris, Partee, Roos, and Wallich. Votes against this action: None. Subsequent to the meeting, on May 5, nearly final estimates indicated that in April M-l had grown at a record annual rate of 19.4 per cent and that M-2 had grown at the substantial rate of 13.0 per cent. For the April-May period staff projections suggested that the annual rate of growth in M-l would be well above the upper limit of the 6 to 10 per cent range specified by the Committee in the next-to-last paragraph of the domestic policy directive issued at the April meeting. Growth in M-2 for the 2-month period was projected to be close to the midpoint of the Committee’s range of 8 to 12 per cent for that aggregate. The Federal funds rate had averaged 5.15 per cent in the statement week ended May 4, about 40 basis points above the average for the preceding 3 weeks. The Manager of the System Open Market Account was currently aiming at a funds rate of 5lA Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 575 per cent, the upper limit of the inter-meeting range specified in the directive. Against that background, Chairman Burns recommended on May 5 that the upper limit of the range for the Federal funds rate be increased to 5V2 per cent, on the understanding that the Manager would use the additional leeway only if new data becoming avail able before the meeting scheduled for May 17 suggested that the aggregates were strengthening significantly further on balance. On May 6, 1977, the Committee modified the inter-meeting range for the Federal funds rate specified in the next-to-last paragraph of the domestic policy directive issued on April 19, 1977, by increasing the upper limit from 5% to 5xh per cent. Votes for this action: Messrs. Burns, Volcker, Coldwell, Gardner, Guffey, Jackson, Lilly, Morris, Partee, Roos, Wallich, and Winn. Votes against this action: None. Absent and not voting: Mr. Mayo. (Mr. Winn voted as alternate for Mr. Mayo.) * * * * * 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
577 Law Department Statutes, regulations, interpretations, and decisions employee responsibilities and avoid employee involvement in a possible AND CONDUCT conflict-of-interest situation. The Board of Governors has amended its rules of Employee Responsibilities and Conduct to ex >« Sf" pand the number of positions for which statements of employment and financial interests are required. Effective May 26, 1977, section 264.735-8(a) APPENDIX A is amended to read as follows: General Section 264.735-8— Statem ents Each Head, Associate, Deputy or Assistant Head of of Employment and Financial Interests a Division or Office of the Board (regardless of specific title), Research Officer or Assistant to the (a) EMPLOYEES REQUIRED TO SUBMIT Board. STATEMENTS. Except as provided in paragraph (b) of this section, statements of employment and Division of International Finance financial interests shall be filed by: Assistant to the Director (1) Employees receiving compensation equiva Chief, Trade and Financial Studies Section Chief, International Banking Section lent to GS-13 or above whose positions are identi Chief, U.S. International Transactions Section fied in Appendix A to this Part by reason of Chief, Financial Markets Section meeting the following criteria: * Economist, Financial Markets Section (i) positions the incumbents of which are Chief, World Payments and Economic Activity Sec tion responsible for making a Government decision or Chief, Quantitative Studies Section taking a Government action in regard to: Chief, International Development Section (A) contracting or procurement; (B) administering or monitoring grants or Division of Banking Supervision and Regulation subsidies; Chief, Banking Activities, Bank Holding Companies (C) regulating or auditing private or other Section non-Federal enterprise; or Chief, Nonbanking Activities, Bank Holding Com panies Section (D) other activities where the decision or *Review Examiner, Bank Holding Companies Section action has an economic impact on the interests of Chief, Financial Institutions Supervisory Section any non-federal enterprise. Senior Attorney, Financial Institutions Supervisory (ii) positions which the Board determines Section require the incumbent to report employment and Senior Staff Assistant, Financial Institutions Supervi sory Section financial interests in order to carry out the purpose Chief, Trust Activities Section of law, executive order, this Part, and the Board’s Trust Review Examiner, Trust Activities Section regulations. Chief, Bank Holding Company Analysis Section (2) Employees receiving compensation below *Financial Analyst, Bank Holding Company Analysis Section the equivalent to GS-13 whose positions otherwise Chief Attorney, Securities Credit Regulation meet the criteria in subparagraph (1) when the Senior Attorney, Securities Credit Regulation inclusion of the positions in Appendix A has been Accountant Analyst, State Bank Securities/Account specifically justified by the Board in writing to the ing Section Civil Service Commission as an exception that is essential to protect the integrity of the Government *Grade 13 and above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
578 Federal Reserve Bulletin □ June 1977 *Foreign Banking Analyst, Foreign Banking Section Office of Board Members Supervisory Exam iner, Foreign Banking Section Adm inistrative Assistant to the Chairm an Division of Administrative Services Staff Assistant Econom ist Program Analyst/Construction Office of Staff Director for Management Chief of Planning Chief of Procurem ent Assistant for Program Coordination Office of the Controller Office of Staff Director for Monetary Policy Chief, Finance and Accounting Section Econom ist Division of Consumer Affairs Staff Assistant Division of Data Processing Chief, Fair Credit Practices Section Chief, Equal Credit Opportunity Section Senior Staff Assistant Chief, Com pliance Section Chief, Mathem atical/Statistical Section Senior Attorney Project Analyst/Program m er-Reserves, M athem at Division of Research and Statistics ical/Statistical Section Project Analyst/Program m er-M odels, M athem at Chief, Banking Section ical/Statistical Section * Econom ist, Banking Section Project Analyst/Program m er-Transm issions of Chief, Capital M arkets Section Edited Deposit System s, Mathem atical/Statistical * Econom ist, Capital M arkets Section Section Chief, Governm ent Finance Section Project Analyst/Program m er-Capital M arkets, M ath *Econom ist, Governm ent Finance Section ematical/Statistical Section Chief, M ortgage and Consum er Finance Section Chief, Bank Holding Com pany Applications Section Chief, Financial Structure Section Chief, Data Production Section *Econom ist, Financial Structure Section Chief, Econom etric and Com puter Applications Section * Econom ist, Econom etric and Com puter Applications Section RULES REGARDING Chief, National Incom e Section Chief, W ages, Prices and Productivity Section DELEGATION OF AUTHORITY Chief, Business Conditions Section Chief, Financial Studies Section The Board of Governors has amended its Rules Chief, Special Studies Section Regarding Delegation of Authority by revoking Chief, Flow of Funds Section certain previous delegations and by delegating new Division of Federal Reserve functions to the Director of the Division of Bank Bank Examinations and Budgets ing Supervision and Regulation and to the Federal M anager, Financial Exam inations Section Reserve Banks. *Senior Financial Exam iner Effective May 9, 1977, 12 C.F.R. 265.1a is Division of Federal Reserve Bank Operations amended by deleting paragraph (a) and redesig nating paragraphs (b) and (c) as (a) and (b), Architect, Building Planning Section M anager, Lending, Credit and Cash Services respectively. (12 U.S.C. 248(k)). M anager, Paym ents M echanism Section Effective May 26, 1977, Part 265 is amended Program M anager for EFT S Operations as follows: Program Manager for EFT S Planning Legal Division 1. A new paragraph (23) is added to § 265.2(c) to read as set forth below: Senior Attorney Section 265.2—Specific Functions Delegated to Board Employees and to Federal Reserve Banks. *Grade 13 and above. * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 579 (c) THE DIRECTOR OF THE DIVISION OF (f) EACH FEDERAL RESERVE BANK is author BANKING SUPERVISION AND REGULATION (or, ized: in the Director’s absence, the Acting Director) is authorized: * * * * * * * * * * (35) With the prior approval of both the (23) With the prior concurrence of the appro Director of the Board’s Division of Banking priate Federal Reserve Bank and the General Supervision and Regulation and the General Counsel of the Board, to act to refuse an applica Counsel of the Board, to enter into a written tion to the Board to stay, modify, terminate or agreement with a bank holding company or any set aside any effective cease and desist order nonbanking subsidiary thereof or with a State previously issued by the Board pursuant to section member bank concerning the correction of an 8(b) of the Federal Deposit Insurance Act or any unsafe or unsound practice in conducting the busi written agreement between the Board or the Re ness of such bank holding company, non-banking serve Bank and a bank holding company or any subsidiary or State member bank and concerning nonbanking subsidiary thereof or a State member the correction of any violation of law, rule or bank. (12 U.S.C. § 1818(b)). regulation incident to such an unsafe or unsound 2. A new paragraph (35) is added to § 265.2(f) practice. (12 U.S.C. 248(a), 321, 324, 325, 330, to read as set forth below: 1844; 12 CFR § 208.8). BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS Orders Under Section 3 for interested persons to submit comments and of Bank Holding Company Act views, has been given in accordance with §§ 3 and 4 of the Act (42 Federal Register 3876). The Mahaska Investment Company, time for filing comments and views has expired Oskaloosa, Iowa and the applications and all comments received have been considered in light of the factors set Order Denying Formation of forth in § 3(c) of the Act, and the considerations Bank Holding Company specified in § 4(c)(8) of the Act. Mahaska Investment Company, Oskaloosa, Applicant, a corporation organized under the Iowa, has applied for the Board’s approval under laws of Iowa, is currently engaged, either directly § 3(a)(1) of the Bank Holding Company Act (12 or indirectly, in the leasing of real and personal U.S.C. § 1842(a)(1)) of formation of a bank property and brokering of credit life, accident and holding company through acquisition of 51.47 per health insurance and mortgage guaranty insurance cent of the voting shares of Farmers Savings Bank, for mobile homes.1 Upon acquisition of Bank Fremont, Iowa (“Bank”). Applicant has also ap ($12.4 million in deposits), Applicant would con plied, pursuant to the Board’s Regulation Y, for trol the 276th largest commercial bank in Iowa, permission to continue to engage directly in the with approximately 0.1 per cent of the total de activity of leasing real property or acting as agent, posits in commercial banks in the State.2 broker or advisor in leasing such real property, Bank is the third largest of the five commercial and to engage indirectly, through its wholly-owned banks in the Mahaska County banking market and subsidiary, MIC Leasing Co., Oskaloosa, Iowa controls approximately 13.5 per cent of the total (“MIC”), in the activity of leasing personal prop erty or acting as agent, broker or advisor in leasing such personal property. Such activities have been determined by the Board to be closely related to Applicant has indicated that it intends to terminate all of banking [12 CFR § 225.4(a)(6)(a) and (b)]. its insurance activities if these applications are approved. 2 Unless otherwise indicated, all banking data are as of June Notice of the applications, affording opportunity 30, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
580 Federal Reserve Bulletin □ June 1977 commercial bank deposits in the relevant banking requires the Board to consider whether any pro market.3 In analyzing the competitive effects of posed acquisition by a bank holding company (1) this proposal, it is also necessary to consider would further the monopolization or attempted Applicant’s affiliate relationship with Mahaska monopolization of a banking market, or (2) may State Bank, Oskaloosa, Iowa (“Mahaska Bank”), substantially lessen competition or tend to create the largest commercial banking organization in the a monopoly in any banking market. Where, as market. Mahaska Bank holds total deposits of here, a proposed acquisition involves the use of $44.1 million, representing 47.7 per cent of the a holding company by a group of individuals to deposits in the market, and is more than twice acquire control of a bank that is a competitor of the size of the next largest competitor in the another bank under the control of essentially the market. In view of the nature and scope of Appli same individuals, the Board believes it must apply cant’s affiliation with Mahaska Bank, the Board these standards.4 is of the view that competitive effects of this In the Board’s view, the subject proposal pre proposal are such that denial of the application sents a compelling case where the holding com is warranted. pany form is being used to further an anticompeti Applicant was originally incorporated in Febru tive arrangement. Under this proposal, two banks ary 1973 as a wholly-owned subsidiary of Ma that up to last year were independent banks com haska Bank for the purpose of leasing a site for peting as the first and third largest banks in the a new drive-in facility to that bank. Subsequently, Mahaska County market would be brought under during November 1973, as a result of a directive common control through the use of a holding by the Iowa Superintendent of Banking, Mahaska company structure. In view of the sizes of the Bank was required to divest of Applicant and it organizations involved and their collective position caused Applicant’s shares of be spun-off to the in the Mahaska market (together the two banks then shareholders of Mahaska Bank. Since that hold 61.2 per cent of the market’s deposits), the time, there has been a close identity of share Board is of the opinion that approval of this holders, as well as a commonality of management, proposal would have significant adverse competi involving Mahaska Bank and Applicant. At the tive effects. While denial of this proposal may not present time, four of Applicant’s six directors immediately result in a complete termination of serve as directors of Mahaska Bank and 126 of the present situation (Applicant’s president would Applicant’s 133 shareholders collectively own 100 continue to own Bank), it would preserve the per cent of the shares of Mahaska Bank. distinct possibility that Bank could again become While this proposal does not itself involve Ma an independent organization in the future. Ap haska Bank, the Board does not believe that it proval, on the other hand, would almost certainly would be appropriate to ignore the identity of foreclose that possibility since, as a result of the interests between Applicant and Mahaska Bank in flexibility afforded by the holding company struc assessing the competitive effects of a proposal that ture, Applicant would appear capable of servicing seeks to bring Bank into the affiliated group its acquisition debt and, in addition, a mutuality through the formation of a bank holding company. of interest between Mahaska Bank and Bank Applicant’s president, who also serves in the same would likely be established. capacity with Mahaska Bank, acquired in an indi On the basis of the foregoing and the facts of vidual capacity approximately 52 per cent of the record, the Board concludes that approval of this shares of Bank in 1976 by means of a loan from application would have significant adverse com an unaffiliated bank. As part of this proposal, petitive effects. Accordingly, under the standards Applicant would assume the outstanding indebt set forth in the Bank Holding Company Act, the edness (as well as accrued interest) in return for proposal may not be approved unless the adverse the shares now held by its president. Thereafter, competitive factors are clearly outweighed by as a corporation, Applicant would proceed to retire other public interest considerations reflected in the the acquisition debt from dividends from Bank and record. earnings from its nonbanking activities. The financial and managerial resources and fu Section 3(c) of the Bank Holding Company Act 4 Even in the absence of any use of the holding company form, the standards of §§ 1 and 2 of the Sherman Act may 3 The relevant geographic market for purposes of analyzing apply to the acquisition by a group of individuals of control the competitive effects of the proposed transaction is approxi of a bank that is a competitor of another bank controlled by mated by Mahaska County, Iowa. essentially the same group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 581 ture prospects of Applicant, which are dependent has expired, and the Board has considered the upon Bank, MIC, and Applicant’s leasing activi application and all comments received, including ties, are considered satisfactory and generally those submitted by the Metropolitan National Bank consistent with approval of the subject application. of Farmington, Farmington Hills, Michigan Therefore, considerations relating to banking fac (“Protestant”), in light of the factors set forth in tors are consistent with approval of the application. § 3(c) of the Act (12 U.S.C. § 1842(c)). Applicant plans changes and improvements in the Applicant, the second largest banking organi form of both physical expansion of Bank’s facili zation in Michigan, controls 15 banks1 with ag ties and new and additional banking services. The gregate deposits of $3.3 billion,2 representing 10.3 Board finds that considerations relating to the per cent of the total commercial bank deposits in convenience and needs of the community lend the State.3 Since Bank is a proposed new bank, some weight toward approval but, in the Board’s no existing competition between Bank and Appli view, do not outweigh the significant adverse cant’s subsidiary banks would be eliminated, nor findings with respect to competitive consid would Bank’s acquisition by Applicant cause any erations. Accordingly, it is the Board’s judgment immediate increase in banking concentration in the that approval of this application would not be in relevant banking market or cause an increase in the public interest and that the application should Applicant’s share of commercial bank deposits in be denied. the State. On the basis of all facts of the record, and in Bank, which is currently in formation, has re light of the factors set forth in § 3(c) of the Act, ceived preliminary charter approval from the it is the Board’s judgment that consummation of Comptroller of the Currency and is to be located the proposal to form a bank holding company in the city of Farmington Hills, Michigan, in the would not be in the public interest and that the west-central portion of the relevant banking mar application should be, and is hereby, denied for ket.4 Of the 46 banking organizations (67 banks) the reasons summarized herein.5 in this market, Applicant ranks as the fourth largest By order of the Board of Governors, effective controlling deposits of approximately $1.4 billion, May 11, 1977. representing 8.5 per cent of the market deposits. Applicant established two branches of a subsidiary Voting for this action: Vice Chairm an Gardner and bank in Farmington Township prior to the incor Governors W allich, Coldw ell, Partee, and Lilly. Absent poration of the Township into the city of Far and not voting: Chairm an Burns and Governor Jackson. mington Hills in 1973.5 Michigan banking law (Signed) Griffith L. Garwood, restricts branching within incorporated areas to [seal] Deputy Secretary of the Board. banks that are headquartered in such an area, although branches of banks that were located in areas prior to their incorporation but whose parent M ichigan N ational C orporation, Bloomfield Hills, Michigan Order Approving Acquisition of Bank 1Applicant has applied to the Board to acquire Michigan National Bank-Sterling, Sterling Heights, Michigan, a pro Michigan National Corporation, Bloomfield posed new bank. Hills, Michigan (“Applicant”), a bank holding 2State banking data are as of December 31, 1976; and relevant banking market data are as of June 30, 1976. company within the meaning of the Bank Holding 3In addition, Applicant also controls, directly or indirectly, Company Act, has applied for the Board’s ap three nonbank subsidiaries: a small business investment com pany; a leasing company; and an audit service. Furthermore, proval under § 3(a)(3) of the Act (12 U.S.C. § under authority delegated to the Federal Reserve Bank of 1842(a)(3)) to acquire all of the voting shares (less Chicago, Applicant’s application to acquire a second, de novo directors’ qualifying shares) of Michigan National leasing company was approved on March 28, 1977. Bank-Farmington, Farmington Hills, Michigan 4 The relevant banking market for the Detroit area has re cently been defined by the Board in its Order of May 12, 1977, (“Bank”), a proposed new bank. denying the application of National Detroit Corporation, De Notice of the application, affording opportunity troit, Michigan, to acquire The Brighton State Bank, Brighton, for interested persons to submit comments and Michigan (42 Fed Reg. 25531; 63 Fed. Res. Bulletin). The market is approximated by Macomb, Oakland, and Wayne views, has been given in accordance with § 3(b) Counties, Michigan, and 33 cities and townships from the of the Act. The time for filing comments and views Michigan counties of St. Clair, Lapeer, Livingston, Wash tenaw, and Monroe. (These cities and towns are specified in Appendix A of the Board’s Order of May 12, 1977.) 5Denial of Applicant’s § 3(a)(1) application renders moot 5Prior to incorporation, six other banks in the relevant Board action on the accompanying § 4(c) (8) application. market had also branched into Farmington Township. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
582 Federal Reserve Bulletin □ June 1977 banks are headquartered elsewhere are entitled to other banking organizations. Furthermore, even remain there. Given the State’s bank branching using Protestant’s conservative figures of popula restrictions, Applicant, headquartered in Bloom tion growth in the Farmington Hills area, the field Hills, Michigan, has applied to expand its anticipated growth rate over the next two decades operations in Farmington Hills by introducing a and beyond is substantially greater than the State new bank into this portion of the market. averages, and the average family income level is In its analysis of the subject application, the among the highest of any area in the relevant Board has considered the comments of Protestant, market. Having considered the comments of the the only banking organization headquartered in Protestant and on the basis of all of the facts above Farmington Hills. In summary, Protestant con and other facts of record, the Board concludes that tends that consummation of the subject proposal the relevant market, including that portion com would essentially result in a substantial lessening prising Farmington Hills, would continue to sup of competition in this portion of the relevant mar port the existing banking organizations as well as ket by enabling Applicant to create a monoply of the proposed new Bank, and that consummation banking services therein; that the city is already of the proposed acquisition would not have an overbanked; and that Applicant has substantially adverse effect upon competition in any portion of overstated the potential growth rate of the city’s the relevant market. Furthermore, Applicant’s ac population and thus has overstated the city’s pres quisition of Bank can be reasonably expected to ent and future banking needs.6 stimulate competition in this market by introducing The Board has analyzed the records of the an additional banking alternative without causing hearing held in connection with Bank’s charter a significant adverse effect upon any of the existing application, the other written submissions of Pro banks in the market. Therefore, for the reasons testant, and the responses thereto by Applicant. summarized above, the Board concludes that For the reasons set forth below, it is the Board’s competitive considerations are consistent with ap judgment that the issues raised by Protestant do proval. not warrant denial of the application.7 The financial and managerial resources of Ap In the Board’s judgment, the addition of a plicant and its subsidiary banks are generally banking competitor in the Farmington Hills portion satisfactory, particularly in view of Applicant’s of this banking market is procompetitive and plans to inject capital into, and retain earnings would not, as Protestant contends, . . result from, certain subsidiary banks.8 Given Applicant’s in a substantial lessening of competition. ’ ’ Nor can satisfactory management, favorable earnings and the Board concur in Protestant’s contention that strengthening financial and capital resources, Ap consummation of the proposal would create a plicant’s future prospects appear favorable. As a monopoly for Applicant since, in addition to the proposed new bank, Bank has no financial or presence of Applicant and Protestant, there are operating history; however, based upon Bank’s branches of six other banks in Farmington Hills, planned financial resources, management, capital and the opportunity for de novo entry into this ization and expected earnings, Bank’s future portion of the banking market remains open to prospects as a subsidiary of Applicant appear favorable. Thus, considerations relating to banking factors are consistent with approval of the appli 6In support of its contentions, Protestant introduced, inter cation. alia, (a) the transcript of a hearing before the Deputy Regional Bank will serve as an additional full service Administrator of the Office of the Comptroller of the Currency banking alternative to the Farmington Hills area, dated January 16, 1975, when Protestant argued against the preliminary chartering of Bank, and (b) a privately commis sioned market analysis of the present and future banking needs of Farmington Hills. 8 In connection with its formation as a bank holding com 7Protestant, in its original submission, requested that the pany, Applicant indicated to the Board its plan for raising Board hold a hearing on the application. Under § 3(b) of the capital. The plan dated May 22, 1972, contemplated raising Act, the Board is required to hold a hearing only when the $10 million by the issuance of equity securities “if the market primary supervisor of the bank to be acquired recommends for equity securities is at or above present index levels.” Due disapproval of the application (12 U.S.C. § 1842 (b)). In this to the economic conditions in the market surrounding the sale case, the Comptroller of the Currency issued a preliminary of equity securities, Applicant has requested relief from this charter of approval on October 21, 1975, and renewed the commitment. At the present time, though, the Board has not life of the charter on August 25, 1976 to extend until July waived the requirement that Applicant raise the subject $10 21, 1977. The Comptroller has at no time recommended that million. See the Board’s statement regarding Applicant’s pro the application be denied. Thus, there was no statutory re posed capital improvement plan in the Board’s statement ac quirement that a hearing be held. By letter dated March 10, companying its Order of August 3, 1972, 58 Fed. Res. Bul 1977, Protestant withdrew its request for a formal hearing. letin 804, 806-807 (1972). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 583 offering selected week-day evening and Saturday posits of approximately $5.0 billion, representing banking hours. Furthermore, affiliation with Ap 16.3 per cent of the total commercial bank deposits plicant will enable Bank to make available, on a in the State.1 Acquisition of Bank ($54.9 million correspondent or referral basis, a variety of highly in deposits) would not significantly increase the specialized banking services. Accordingly, these concentration of banking resources in Michigan; considerations relating to the convenience and however, it would have adverse effects upon con needs of the community to be served lend some centration in the relevant market. weight toward approval of the application. It is Bank, the 25th largest of 46 banking organi the Board’s judgment that consummation of the zations in the relevant market,2 has total deposits proposed acquisition would be in the public inter of approximately $54.9 million, $48.9 million %of est and that the application should be approved. which are in offices within the Detroit market, On the basis of the record, the application is representing 0.3 per cent of the total commercial approved for the reasons summarized above. The bank deposits in the relevant market. Applicant transaction shall not be made (a) before the thir has a significant presence in the Detroit banking tieth calendar day following the effective date of market as it operates three banks with 107 banking this Order nor (b) later than three months after offices in the market controlling $4.96 billion in that date, and (c) Michigan National Bank-Far- deposits, which represent 30 per cent of total mington, Farmington Hills, Michigan, shall be commercial bank deposits in the market. The four open for business not later than six months after largest banking organizations in the Detroit market the effective date of this Order. Each of the periods hold in the aggregate 70.2 per cent of total com described in (b) and (c) may be extended for good mercial bank deposits in the market. Acquisition cause by the Board, or by the Federal Reserve of Bank would result in a further increase in Bank of Chicago pursuant to delegated authority. market concentration and continue the trend By order of the Board of Governors, effective toward concentration that the market has exhibited May 27, 1977. in the last year. In addition to having adverse effects upon the Voting for this action: Chairm an Burns and Gover concentration of banking resources in the Detroit nors Gardner, W allich, Coldw ell, Jackson, and Lilly. market, it appears that consummation of this pro Absent and not voting: Governor Partee. posal would eliminate existing competition within (Signed) Ruth A. Reister, the Detroit market between Bank and Applicant. [seal] Assistant Secretary of the Board. The Board notes that this proposal involves the acquisition of the largest independent bank in the National Detroit Corporation, Livingston County portion of the Detroit market Detroit, Michigan by the largest bank holding company in the market and the State. Although Michigan law would pro Order Denying Acquisition of Bank National Detroit Corporation, Detroit, Michi gan, a bank holding company within the meaning *A11 banking data are as of June 30, 1976. Applicant of the Bank Holding Company Act, has applied received approval to acquire the National Bank of Port Huron, Port Huron, Michigan, a proposed new bank, on September for the Board’s approval under § 3(a)(3) of the 27, 1976; however, the bank has not yet opened for business. Act (12 U.S.C. § 1842(a)(3)) to acquire 80 per (See 62 Federal Reserve Bulletin 861, 1976.) cent or more of the voting shares of The Brighton 2In the previous cases involving the Detroit area, the Board has generally been confronted with bank holding company State Bank, Brighton, Michigan (“Bank”). applications to acquire banks located near the center of the Notice of the application, affording opportunity Detroit banking market and has defined that market somewhat for interested persons to submit comments and loosely as being approximated by Macomb, Oakland, and Wayne Counties. This proposal involves the acquisition of a views, has been given in accordance with § 3(b) bank on the fringe of the Detroit market and consequently the of the Act. The time for filing comments and views Board has examined more closely the available census data so as to define more precisely the Detroit banking market for has expired, and the Board has considered the purposes of analyzing the competitive effects of this proposal. application and all comments received, including On the basis of a detailed study of commuting patterns and those of two shareholders of Bank opposing the population trends, it appears that a significant proportion of the population of the five counties surrounding Macomb, Oak proposal, in light of the factors set forth in § 3(c) land and Wayne Counties, work in Macomb, Oakland and of the Act (12 U.S.C. § 1842(c)). Wayne Counties, and therefore, the definition of the Detroit Applicant, the largest bank holding company in market should be expanded somewhat to include 33 cities and townships from the counties of St. Clair, Lapeer, Livingston, Michigan, controls five banks with aggregate de Washtenaw, and Monroe. (See Appendix A.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
584 Federal Reserve Bulletin □ June 1977 hibit Applicant from branching into most of the On the basis of the facts of record, and in light Livingston County portion of the Detroit market, of the factors set forth in § 3(c) of the Act, it Applicant is in a strong financial position and is the Board’s judgment that approval of the pro clearly has the resources to expand into Livingston posal would not be in the public interest. Accord County; in particular, Applicant has previously ingly, the application is denied for the reasons expressed an interest in that portion of the market summarized herein. and is clearly capable of de novo entry through By order of the Board of Governors, effective the establishment of a new bank there.3 In light May 12, 1977. of the above, the Board concludes that consum mation of the proposal would eliminate significant Voting for this action: Vice Chairm an Gardner and Governors W allich, Coldw ell, Partee, and Lilly. Absent existing competition within the Detroit market. and not voting: Chairm an Burns and Governor Jackson. The financial and managerial resources and prospects of Bank are regarded as satisfactory. The (Signed) Griffith L. Garwood, financial and managerial resources and future [seal] Deputy Secretary of the Board. prospects of Applicant and its subsidiaries are also regarded as satisfactory. Applicant would ex change shares of its common stock for the out standing stock of Bank and would purchase con vertible debentures of Bank for cash. The Board A P P EN D IX A finds that considerations relating to financial and Cities and Townships managerial resources and future prospects of Ap Added to the Detroit Banking Market plicant, its subsidiaries and Bank are consistent with approval; however, such considerations do County City or Township not lend significant weight for approval of the application. Lapeer Alm ont Dryden Applicant states that it would improve Bank’s Hadley services somewhat by increasing Bank’s loan M etam ora portfolio to include more consumer and commer cial loans, upgrading some of Bank’s physical M onroe Ash facilities and increasing Bank’s hours of operation. Berlin However, it appears that the major banking needs W ashtenaw Salem in the community are currently being met. Ac cordingly, the Board finds that little weight can St. Clair Algonac City be accorded such services and that considerations Berlin Casco relating to the convenience and needs of the com China munity to be served lend no significant weight Clay toward approval of the application. In summary, Colum bus therefore, the considerations relating to banking Cottrellville factors and the considerations relating to the con East China Ira venience and needs of the community to be served M arine City do not outweigh the substantially adverse compet M em phis City itive effects that would result from Applicant’s New Baltim ore City acquisition of Bank. Riley St. Clair City St. Clair Tw p. Livingston Brighton City Brighton Tw p. Genoa 3 Applicant contends that the relatively low ratios of popula Green Oak tion and deposits per banking office in Livingston County make Hartland de novo entry there unattractive. However, between 1960 and How ell City 1970 the population of Livingston County grew by 54.2 per cent, a rate four times the State average. Between 1970 and How ell Tw p. 1975, available data indicate that the county’s population grew Iosco by 32 per cent of the 1970 base. Accordingly, the Board is M arion unable to agree with Applicant’s contention that the county Oceola is unattractive to de novo entry. Tyrone Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 585 Northwest Bancorporation, through the acquisition of the largest bank in that Minneapolis, Minnesota market. Prospects for deconcentration of the Fort Dodge market are few, essentially limited by Order Denying Acquisition of Bank Iowa’s restrictive branch banking law to establish Northwest Bancorporation, Minneapolis, Min ment of de novo banks.2 nesota, a bank holding company within the mean Applicant’s acquisition of the largest bank in ing of the Bank Holding Company Act, has ap the market will do nothing to decrease this market plied for the Board’s approval under § 3(a)(3) of concentration. To the contrary, it would eliminate the Act (12 U.S.C. § 1842(a)(3)) to acquire 90 the probability that Applicant would enter the per cent or more of the voting shares of First market de novo and, through its competitive efforts National Bank, Fort Dodge, Iowa, Fort Dodge, to gain an increased market share, decrease present Iowa (“Bank”). concentration in the market. It is also probable Notice of the application, affording opportunity that the proposed acquisition would deter other for interested persons to submit comments and banking organizations from attempting de novo views, has been given in accordance with § 3(b) entry into the Fort Dodge market. of the Act. The time for filing comments and views On the basis of total deposits in the seven States has expired, and the Board has considered the in which it operates, Applicant is approximately application and all comments received in light of ten times larger than the second largest Iowa bank the factors set forth in § 3(c) of the Act (12 U.S.C. holding company and its acquisition of the largest § 1842(c)). bank in the Fort Dodge market may be expected Applicant is the largest banking organization in to discourage other Iowa banking organizations Iowa and controls 7 banks with aggregate deposits from entry into that market. Thus, acquisition of of $721 million, representing approximately 6.1 Bank by Applicant would probably eliminate any per cent of the total deposits in commercial banks likelihood that the market would become less in Iowa.1 In addition to its holdings in Iowa, concentrated in the future. In view of the total Applicant also controls 75 banks in six nearby resources available to Applicant, the absolute size States with total deposits of approximately $6 of Bank, and its relative position in the market, billion. Acquisition of Bank ($62.6 million in de the prospects for increased competition and de posits) would increase Applicant’s share of com concentration of the Fort Dodge market would be mercial bank deposits in Iowa by 0.5 per cent. diminished as a result of the contemplated acqui Bank is located in the Fort Dodge banking sition. market, which is approximated by Webster County There can be no doubt that Applicant possesses plus Cedar and Reading townships in adjoining the resources to accomplish a de novo entry into Calhoun County. Applicant’s banking subsidiary the Fort Dodge banking market. Indeed, the fi closest to Bank is located in Des Moines, Iowa, nancial and managerial resources available to Ap 87 miles from Bank, and there is currently no plicant coupled with the relatively small size of meaningful competition between Bank and any of the Fort Dodge banking market suggest that a de Applicant’s banking subsidiaries. Accordingly, no novo banking subsidiary established by Applicant significant existing competition would be elimi in this market could become a substantial compet nated between Bank and any of Applicant’s sub itor within a brief period of time. Evidence of sidiary banks upon consummation of this proposal. record suggests that Applicant is engaged in an The Fort Dodge banking market is highly con expansion program designed to accomplish the centrated, the three largest of the eight banks in acquisition of a bank in each of Iowa’s major that market controlling approximately 85 per cent banking markets. Thus, if Fort Dodge is attractive of market deposits and 88 per cent of market loans. for de novo entry, Applicant must be regarded as Bank is the largest bank in this market, holding a potential de novo entrant.3 approximately 30 per cent of total market deposits, Population per banking office and deposits per and appears to be a viable and effective competi banking office in the Fort Dodge market are higher tor. Thus, approval of the present proposal would than those for all counties in Iowa that, like enable Applicant to establish itself as a significant Webster County, have not been classified as competitor in a highly concentrated market 2 Iowa law generally prohibits the establishment of a branch office in any town in which another bank is located. Iowa Code Ann. § 524.1202. Thus, no bank may branch into Fort Dodge. *A11 banking data are as of June 30, 1976. 3 See following page for footnote 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
586 Federal Reserve Bulletin □ June 1977 standard metropolitan statistical areas the market while preserving Bank as a viable (“SMSA’s”), although such ratios are somewhat competitive force in the market. In addition, the lower than those for counties of similar total pop possibility would be preserved that Bank might ulation. In terms of total deposits, however, the become affiliated with one of the State’s smaller Fort Dodge market is the ninth largest banking bank holding companies—not an unlikely prospect market in Iowa and its population growth com in view of Bank’s attractiveness for acquisition, pares favorably with other Iowa non-SMSA coun due in part to its market position. On the basis ties.4 Retail sales per banking office in Fort Dodge of the facts of record, the Board concludes that are nearly twice as high as in any other non-SMSA consummation of the proposed acquisition would county and future economic growth appears likely have a substantial adverse effect on potential com in view of the establishment of a new industrial petition in the Fort Dodge banking market. park and other developments in the city of Fort Unless such anticompetitive effects are clearly Dodge. outweighed in the public interest by the probable Another indicium of the market’s attractiveness effect of the transaction in meeting the conven for de novo entry is the above-average profitability ience and needs of the communities to be served, of each of the three banks located in the city of the application must be denied.5 The financial and Fort Dodge. Indeed, the return on assets at Bank managerial resources and future prospects of Ap and at the second largest Fort Dodge bank over plicant, and its subsidiary banks, are regarded as the last four years has averaged forty per cent generally satisfactory while those of Bank are above that of other banks of similar size in Iowa. regarded as satisfactory. There is no evidence in For the market as a whole, return on assets has the record to indicate that the banking needs of been 12 per cent above all banks in the State. This the relevant market are not being met by existing disparity in profitability may well be related to the institutions in the market. While certain benefits concentrated nature of the market, and thus be to the convenience and needs of the communities indicative of the substantial procompetitive effect to be served might result from Applicant’s acqui Applicant’s de novo entry would likely have. sition of Bank, such benefits would also derive There is no evidence in the record to suggest that from entry by less anticompetitive means. Ac either the Iowa Superintendent of Banking or the cordingly, although banking factors and consid Comptroller of the Currency would not grant an erations relating to the convenience and needs of application to charter a de novo bank in Fort the communities to be served are consistent with Dodge. approval, they do not outweigh the substantial De novo entry by Applicant into the Fort Dodge adverse competitive effects of the proposal. It is market would not only increase competition the Board’s judgment that on the basis of the entire therein by introducing a new and aggressive com record, consummation of the proposed acquisition petitor into the market, but would also tend to would not be in the public interest and that the reduce the concentration of banking resources in application should be and hereby is denied. By order of the Board of Governors, effective May 2, 1977. 3 Although the smaller banks in the market could be regarded as possibilities for a “foothold” acquisition, all are located outside of the city of Fort Dodge and are prevented from Voting for this action: Governors W allich, Coldw ell, branching into Fort Dodge by Iowa law, thus making them Jackson, and Partee. Abstaining: Governor Lilly. A b unattractive for such an acquisition. Moreover, the primary sent and not voting: Chairm an Burns and Governor opportunity for bank growth in the market is in the city of Gardner. Fort Dodge. As none of these banks may enter that city it is not likely that they will be able to attract sufficient new (Signed) Griffith L. Garwood, business to significantly deconcentrate the market, either as independent banks or as a subsidiary of a bank holding com [seal] Deputy Secretary of the Board. pany such as Applicant. Only a de novo bank located in the city of Fort Dodge would be capable of effecting such decon Roger Billings, Incorporated, centration. Thus, the market’s attractiveness for de novo entry Delphos, Kansas and the preservation of Applicant as such a potential entrant are major considerations with regard to this application. 4 Non-SMS A data appear more relevant as Applicant is Order Approving already represented in, or has applied to acquire banks in, six Acquisition of Additional Shares of Bank of Iowa’s seven SMSA’s. Between 1960 and 1970 Webster County population grew at a rate of 1.2 per cent annually, a growth rate which was only one-half of the State average 5Northwest Bancorporation / First National Bank of Dubu of 2.4 per cent, but which was also significantly above that que, 59 Fed. Res. Bulletin 762 (1973) (convenience and of the State’s non-SMS A counties, which showed a population needs considerations insufficient to outweigh adverse competi decrease of 1.2 per cent during this period. tive effects). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 587 Roger Billings, Incorporated, Delphos, Kansas, ice the debt adequately without adversely affecting a registered bank holding company,1 has applied the financial condition of Bank. Accordingly, for the Board’s approval under § 3(a)(3) of the considerations relating to banking factors are con Act (12 U.S.C. § 1842(a)(3)) to acquire an addi sistent with approval. Although there are no im tional 10 per cent of the voting shares of The State mediate changes contemplated in the services or Bank of Delphos, Kansas (“Bank”). facilities of Bank as a result of this acquisition Notice of the application, affording opportunity of additional voting shares, considerations relating for interested persons to submit comments and to the convenience and needs of the community views, has been given in accordance with § 3(b) to be served are consistent with approval of the of the Act. The time for filing comments and views application. Therefore, it is the Board’s judgment has expired, and the Board has considered the that the proposed transaction is consistent with the application and all comments received in light of public interest and that the application should be the factors set forth in § 3(c) of the Act (12 U.S.C. approved. § 1842(c)). On the basis of the record, the application is Applicant currently owns 26.8 per cent of the approved for the reasons summarized above. The voting shares of Bank, and also engages in insur transaction shall not be made (a) before the thir ance activities.2 Bank, with total deposits as of tieth calendar day following the effective date of June 30, 1976 of approximately $4.7 million, this Order or (b) later than three months after the controls approximately .05 per cent of the total effective date of this Order, unless such period deposits in commercial banks in the State3 and is is extended for good cause by the Board or the the fourth largest of the five banks in the relevant Federal Reserve Bank of Kansas City. market with approximately 15.2 per cent of the By order of the Board of Governors, effective total deposits in the market.4 Applicant proposes May 6y 1977. to acquire 50 shares of Bank from a principal shareholder of Bank and Applicant. The proposed Voting for this action: Vice Chairm an Gardner and Governors W allich, Coldw ell, Jackson, and Partee. acquisition of additional shares of Bank would Absent and not voting: Chairm an Burns and Governor have no effect on competition, since Applicant and Lilly. its officers, directors and principal shareholders (Signed) Griffith L. Garwood, together already control a majority of Bank’s out [seal] Deputy Secretary of the Board. standing voting shares. Thus, competitive consid erations are consistent with approval of the appli cation. SYB Corporation, The financial and managerial resources of Ap Oklahoma City, Oklahoma plicant and Bank are considered generally satis factory. Although Applicant would incur some Order Approving debt in connection with this acquisition, it appears Formation of Bank Holding Company that income from Bank and Applicant’s insurance SYB Corporation, Oklahoma City, Oklahoma, activities would provide sufficient revenue to serv has applied for the Board’s approval under § 3(a) (1) of the Bank Holding Company Act (12 U.S.C. 1 Applicant registered as a bank holding company in 1971 § 1842(a)(1)) of formation of a bank holding at the request of the Federal Reserve Bank of Kansas City. company through acquisition of 80 per cent or Under § 225.2(b) of the Board’s Regulation Y (12 C.F.R. more of the voting shares of Stock Yards Bank, § 225.2(b)) a rebuttable presumption existed that Applicant controlled The State Bank of Delphos, Delphos, Kansas; Oklahoma City, Oklahoma (“Bank”).1 however, the Board has not made a determination that Appli cant controlled that bank. By Order of September 14, 1976 the Board approved the application of Applicant to acquire 4.6 per cent of the voting shares of Bank. See 62 Federal *By Order of May 6, 1975 (40 Federal Register 21076), Reserve Bulletin 863. the Board approved an application by SYB Corporation to 2 Applicant claims § 4(c) (ii) as authority for its continuing become a bank holding company through the acquisition of to engage in its nonbanking activities. In the event the Board Bank. Consummation of the approved proposal was delayed determines that Applicant is not entitled to that exemption, pending receipt of a tax ruling from the Internal Revenue Applicant has agreed to either file an application pursuant to Service. In view of the length of time that has elapsed since § 4(c)(8) or reduce its holdings of Bank’s stock to less than the Board issued its Order approving the application and the 25 per cent of the outstanding voting shares. substantial amendments that Applicant has made to the pro 3 All banking data are as of December 31, 1975, except as posal, the Board has considered the amended proposal as if noted. it were a new application. 4The relevant market is approximated by northern Ottawa Effective April 25, 1977, Bank changed its name to United and southern Cloud Counties. Oklahoma Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
588 Federal Reserve Bulletin □ June 1977 Notice of the amended application, affording shares of Applicant is located in a separate banking opportunity for interested persons to submit com market. In light of the small interest each of the ments and views, has been given in accordance 16 organizations would acquire in Applicant, the with § 3(b) of the Act. The time for filing com Board concludes that consummation of the pro ments and views has expired, and the Board has posal would not increase the concentration of considered the application and all comments re banking resources in any relevant market and ceived in light of the factors set forth in § 3(c) would not have a significant adverse effect upon of the Act (12 U.S.C. § 1842(c)). either existing or potential competition. Accord Applicant, a non operating corporation with no ingly, the Board finds that competitive consid subsidiaries, was formed for the purpose of be erations are consistent with approval of the appli coming a bank holding company. Upon acquisition cation. of Bank,2 Applicant would control .06 per cent Where, as here, a number of bank holding of the total deposits in commercial banks in Okla companies agree to acquire less than 5 per cent homa.3 Bank, the ninth largest of 72 banking each of the outstanding voting shares of another organizations in the relevant market,4 holds de company or a bank, at least two issues warranting posits of approximately $59.6 million, repre regulatory concern may arise: First, the compa senting approximately 1.8 per cent of the total nies’ participation in the management or business deposits in commercial banks in the market. of the other company or bank may be so extensive Upon consummation of the proposal, 16 one- as to support the conclusion that each of the bank holding companies5 would each acquire less holding company-shareholders is not merely a than 5 per cent of Applicant’s voting shares, and passive investor, but is in fact engaging as an the remainder of Applicant’s shares would be held entrepreneur in the business of the other company by present shareholders of Bank. The 16 banking or bank.6 Second, the group of shareholders itself organizations hold aggregate deposits of; approxi may, through agreement or understanding among mately $1.0 billion, representing approximately the members or through its structure alone, con 9.6 per cent of the total deposits in commercial stitute a “company” within the meaning of § 2(b) banks in Oklahoma. Three of the 16 organizations of the Act (12 U.S.C. § 1841(b)). are represented in the Oklahoma City market and On the basis of the facts of record in the present hold aggregate deposits, including deposits held case, the Board is not persuaded that the intention by Bank, amounting to $215.8 million or 6.6 per of the holding company-shareholders is to expand cent of total market deposits. In this circumstance, their banking businesses further through Appli it is doubtful that the acquisition of less than 5 cant. Moreover, the Board does not find it neces per cent of Applicant’s stock by each of these sary at this time to make a determination that the organizations would adversely affect existing proposed stockholders of Applicant will them competition within the Oklahoma City market. selves constitute an organization that fits the defi Each of the other 13 organizations that would own nition of “company” in § 2(b). The Board remains concerned, however, that the close association of bank holding companies as stockholders of Appli cant could create potential opportunities for addi tional investments in banking or nonbanking busi nesses by this group under circumstances that 2Under a trust arrangement, shareholders of Bank are the could be inconsistent with the purposes of the Act. beneficial owners of 20 per cent of the shares of Oklahoma Bankers Life Insurance Company, Oklahoma City, Oklahoma Accordingly, the Board’s approval of this applica (“OBLIC”). Under §§ 2(g)(1) and 2(g)(2) of the Act, control tion, and its decision not to treat the stockholder of these shares would be attributed to Applicant upon its acquisition of Bank. The activities of OBLIC have not been determined to be permissible under § 4(c)(8) of the Act and, therefore, the indirect control of these shares by Applicant is prohibited. Accordingly, upon acquisition of Bank, Applicant 6The Board recently stated, in an interpretation under § 4 is required to divest its indirect interest in OBLIC within the of the Act, that the exemption in § 4(c)(6) of the Act, under applicable time period provided in § 4(a)(2) of the Act. which a bank holding company is generally permitted to own 3A11 banking data are as of June 30, 1976. up to 5 per cent of the voting shares of a nonbank company 4 The relevant market is approximated by the Oklahoma City without Board approval, should be interpreted as applicable Standard Metropolitan Statistical Area. only to passive investments, and does not authorize control 5At this time, only ten of the 16 bank holding companies relationships or entrepreneurial activity (63 Federal Reserve have been formed. Regulatory approval has been granted to Bulletin 60 (1977)). The rationale of that interpretation is formation of an eleventh. The participation of the remaining equally applicable to the acquisition of 5 per cent holdings holding companies in the above-described arrangement is con in banks or bank holding companies within the leeway provided tingent upon regulatory approval of their formation. in § 3(a)(3) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 589 group as a bank holding company itself, are sub this action: Governor Coldw ell. Absent and not voting: ject to the following conditions: Chairm an Burns and Governor Jackson. (Signed) Griffith L. Garwood, 1. The companies owning or controlling shares [seal] Deputy Secretary of the Board. of Applicant w ill not engage in any other banking or nonbanking activities as part of a group that Dissenting Statement of Governor Coldwell consists of substantially the same companies as In my opinion, approval of this case opens up are shareholders of Applicant. 2. The companies owning shares of Applicant a very broad range of concerns about the use of will not enter into any form al or inform al agree the holding company device and the Board’s abil ment or understanding am ong themselves con ity to contain it. First by permitting formation of cerning the m anner in which shares of Applicant a one-bank holding company owned by a consor are to be voted. tium of other bank holding companies the Board 3. None of the companies owning shares of is sanctioning the “tiering” of holding companies. Applicant w ill sell, assign, or transfer any of its I think this will diminish the accountability of bank shares of Applicant unless and until it has ob management and calls into question the degree to tained the agreement of any purchaser, assignee which the owners (shareholders) can be relied or transferee to be bound by the provisions of upon to provide financial strength to the subsidiary this Order. bank. If the top tier of owners are bank holding companies responsible for their own banks, one Should the Board have reason to believe at some can question their willingness to finance capital future date that these companies are not acting needs of another holding company that owns the independently as essentially passive investors, it Stock Yards Bank. will take appropriate steps to ensure that the regu Secondly, this approval opens up the possibility latory purposes of the Act are not evaded. of using the bank holding company format to The financial and managerial resources and fu achieve bank concentrations far beyond that con ture prospects of Applicant are dependent upon templated in normal acquisitions. A grouping of those of Bank, which are regarded as satisfactory. bank holding companies each owning less than 5 Applicant will issue voting common stock and per cent of the underlying one-bank holding com nonvoting cumulative preferred stock in exchange pany could acquire even very large banks provid for Bank’s shares. Accordingly, considerations ing a “front man” sets up the new company. I relating to banking factors are consistent with view this arrangement as a device for circumvent approval of the application. Although consumma ing Board approval of the primary consortium and tion of the proposed transaction would have no means of broadening the bank holding company immediate effect on area banking needs, consid format to encompass a wide range of permissible erations relating to the convenience and needs of and impermissible activities. the community to be served are consistent with Beyond these objections, I have a fundamental approval. It is the Board’s judgment that consum problem with domestic joint ventures by financial mation of the proposed transaction would be con institutions. It has been our experience that joint sistent with the public interest and that the appli ventures often result in disputes as to who controls, cation should be approved. manages, or supplies new capital or credit to the On the basis of the record, the application is joint venture. I am reluctant to establish a prece approved for the reasons summarized above. The dent that would encourage such formations, espe transaction shall not be made (a) before the thir cially since I see major problems of control and tieth calendar day following the effective date of operations inherent in this device. this Order or (b) later than three months after the Finally, the way in which this particular cas^r effective date of this Order, unless such period is presented, with the ultimate owners the oneis extended for good cause by the Board, or by bank holding companies acting individually rather the Federal Reserve Bank of Kansas City pursuant than as an identifiable legal group, means that the to delegated authority. group could use this format as a means of gaining By order of the Board of Governors, effective control over other banks or nonbank companies May 6, 1977. by each acquiring, as an individual owner, less than 5 per cent of the outstanding voting shares Voting for this action: Vice Chairm an Gardner and rather than acquiring the shares as a consortium Governors W allich, Partee, and Lilly. Voting against Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
590 Federal Reserve Bulletin □ June 1977 formed into a bank holding company. Such acqui published (42 Fed. Reg. 16190 (1976)). The time sitions would enable the owners to escape the for filing comments and views has expired, and Board’s controls and reporting requirements. I the Board has considered all comments received think this constitutes a major evasion of our regu in the light of the public interest factors set forth lations and broadens the use of the bank holding in section 4(c)(8) of the Act (12 U.S.C. § 1843 company device far beyond the expressed intent (c)(8)). of Congress. Applicant is the third largest banking organi For these reasons I would deny this application. zation in New York State and the fourth largest nationally.1 Applicant controls Manufacturers Orders Under Section Hanover Trust Company, New York, New York. 4 of Bank Holding Company Act Ritter, a regional consumer finance company with total assets of approximately $111 million and net Manufacturers Hanover Corporation, receivables of approximately $102 million, was New York, New York acquired by Applicant on January 3, 1975, pur suant to Board approval granted effective De Order Approving Retention of Offices of Ritter Financial Corporation and cember 10, 1974 (61 Fed. Res. Bulletin 42 (1975)). Recommencement of Reinsurance Activities At the time that Applicant filed its application Manufacturers Hanover Corporation, New York, to acquire Ritter, the latter had 125 offices in New York, a bank holding company within the Connecticut, New Jersey, North Carolina, Penn meaning of the Bank Holding Company Act, has sylvania, Virginia, and West Virginia. During the applied for the Board’s approval, under section pendency of that application, Ritter opened eight 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and additional offices;2 however, Applicant did not § 225.4(b)(2) of the Board’s Regulation Y (12 amend its application to reflect those additional CFR § 225.4(b)(2)), to retain indirectly seven offices. Accordingly, the Board’s approval of Ap offices of Ritter Financial Corporation, Wyncote, plicant’s application to acquire Ritter related only Pennsylvania (“Ritter”), a wholly-owned subsidi to the 125 offices that were listed in its application. ary of Applicant. The offices that Applicant has Applicant’s operation of offices for which it did applied to retain engage in the following activities: not obtain prior Board approval was in violation making or acquiring, for its own account or for of the Board’s Regulation Y.3 By this application, the account of others, loans and other extensions Applicant seeks to bring the operation of its addi of credit such as would be made by a finance tional offices into conformance with the Act. company, servicing loans and other extensions of In acting on applications pursuant to § 4(c)(8) credit for any person and acting as agent or broker of the Act to retain offices or to recommence for the sale of credit-related life insurance and engaging in activities in situations where the nec credit accident and health insurance. These activi essary prior Board approval was not obtained for ties have been determined by the Board to be such offices or activities, the Board applies the closely related to banking (12 CFR § 225.4(a)(1), same standards as it does to applications to estab (3), and (9)). The offices are located in Sickler- lish such offices and commence such activities ville, New Jersey; Fairmont, Red Springs and initially. In addition, the Board considers the Wadesboro, North Carolina; Hummelstown, competitive effects of such proposals as of the time Pennsylvania; and Warsaw and Woodstock, Vir that the offices were established or the activities ginia. commenced. Applicant has also applied for the Board’s ap At the time that it approved Applicant’s appli proval to recommence the activity of reinsuring cation to acquire Ritter, the Board noted that only credit life insurance and credit accident and health a slight amount of existing competition would be insurance that is directly related to extensions of eliminated between Applicant and Ritter. The credit by the Ritter organization in North Carolina competition that did exist was a result of the and Pennsylvania. These activities have also been determined by the Board to be closely related to banking (12 CFR § 225.4(a)(10)). 1A11 banking and other financial data are as of December Notice of the applications, affording opportunity 31, 1975. 2 One of the offices opened during this period was subse for interested persons to submit comments and quently closed. views on the public interest factors, has been duly 3See 12 CFR § 225.4(c)(2). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 591 proximity of Ritter’s two Connecticut offices to ance activities in the States of North Carolina and the Metropolitan New York market in which Ap Pennsylvania on December 16, 1975, and June 1, plicant operated. Because of the locations of the 1975, respectively. Applicant’s performance of offices that are the subject of this application, it this activity without the prior approval of the does not appear that any competition between Board was in violation of the Board’s Regulation Applicant and those offices existed at the time that Y.4 Applicant, at the request of the Board’s staff, the Board approved Applicant’s application nor has terminated its reinsurance activities in North does it appear that any competition exists at this Carolina and Pennsylvania pending the Board’s time. action on its application. With respect to potential competition, the Credit life insurance and credit accident and Board, in approving Applicant’s original applica health insurance are generally made available by tion, stated that it was questionable whether Ap banks and other lenders and are designed to assure plicant’s de novo expansion in the consumer fi repayment of a loan in the event of death or nance company business or accelerated growth in disability of the borrower. In connection with its its consumer lending would give rise to substantial addition of the underwriting of such insurance to future competition between Applicant and Ritter. the list of permissible activities for bank holding The Board concluded that the only significant companies, the Board stated: competition that would be foreclosed by approval To assure that engaging in the underwriting of of the application would be some distance in the credit life and credit accident and health insurance future. It does not appear that the Board’s conclu can reasonably be expected to be in the public sion on this question would have been affected interest, the Board will only approve applications by an awareness of the existence of the additional in which an applicant demonstrates that approval offices; nor does it appear, on the basis of infor will benefit the consumer or result in other public mation in the record, that a significant amount of benefits. Norm ally, such a showing would be made by a projected reduction in rates or increase future competition would be eliminated by reten in policy benefits due to bank holding com pany tion of these offices. Accordingly, it is the Board’s perform ance of this service. (12 C FR § conclusion that no significant amount of existing 225.4(a)(10) n. 7) or potential competition would be eliminated as Applicant has stated that, upon recommence a result of Applicant’s retention of the additional ment of reinsurance activities in North Carolina offices. Moreover, there is no evidence in the and Pennsylvania, it would reduce the rates record indicating that retention of these offices charged by Ritter’s subsidiaries for credit life and would result in any undue concentration of re credit accident and health insurance in the two sources, unfair competition, conflicts of interests, States by amounts ranging from 2 per cent to 7.5 unsound banking practices or other adverse effects per cent.5 The Board is of the view that the on the public interest. availability of this service at reduced premiums Based upon the foregoing and other consid is in the public interest. There is no evidence in erations reflected in the record, the Board has the record indicating that consummation of the determind that the balance of the public interest proposed transaction would result in any undue factors the Board is required to consider under § concentration of resources, decreased or unfair 4(c)(8) is favorable. Accordingly, the application competition, conflicts of interest, unsound banking to retain the seven offices is hereby approved. practices, or other adverse effects on the public As part of its Order approving Applicant’s ac interest. quisition of Ritter, the Board also specifically Based upon the foregoing and other consid authorized Applicant, through a subsidiary of Rit erations reflected in the record, including a com ter, to act as reinsurer of group credit life and mitment by Applicant, with respect to its proposed credit accident and health insurance sold in con underwriting activities, to maintain on a continu nection with extensions of credit by Ritter’s offices ing basis the public benefits that the Board has in Virginia, West Virginia, and New Jersey. Ap plicant’s application indicated that Ritter was en gaged in reinsurance activities only in those three 4See 12 CFR § 225.4(c)(2). States and, accordingly, the Board’s Order of applicant’s reduced premium rate schedule became effec December 10, 1974, only authorized Applicant to tive on November 1, 1976. Applicant also undertook to rebate engage in reinsurance activities in those three to Ritter’s North Carolina and Pennsylvania customers amounts charged prior to November 1, 1976, that were in excess of States. Applicant, however, commenced reinsur the reduced premium rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
592 Federal Reserve Bulletin □ June 1977 found to be reasonably expected to result from this United Kentucky, Inc., proposal and upon which the approval of that Louisville, Kentucky aspect of this proposal is based, the Board has Order Approving Acquisition of determined that the balance of the public interest Kesselring-Netherton & Associates, Inc. factors the Board is required to consider under § 4(c) (8) is favorable. Accordingly, the application United Kentucky, Inc., Louisville, Kentucky, is hereby approved. a bank holding company within the meaning of As indicated above, the subject applications the Bank Holding Company Act, has applied for consist of after-the-fact requests for the Board’s the Board’s approval, under § 4(c)(8) of the Act approval to conduct operations that had been (12 U.S.C. § 1843(c)(8)) and 225.4(b)(2) of the commenced in violation of the Board’s Regulation Board’s Regulation Y (12 CFR § 225.4(b)(2)), to Y. It is the Board’s view, on the basis of the facts acquire shares of Kesselring-Netherton & Asso and circumstances of the subject applications, that ciates, Inc., Louisville, Kentucky (“Company”), the violations were inadvertent. In acting on the through a non-operating subsidiary corporation, applications, the Board took into consideration the United Kentucky Mortgage, Inc., which was char fact that Applicant, upon becoming aware of the tered expressly to absorb Company but to do existence of the violations, took steps to conform business as “Kesselring-Netherton & Associates, its operations to the Act by filing the subject Inc.” Company engages in the activities of origi applications. In addition, Applicant’s senior man nating, for its own account and the accounts of agement has taken steps to prevent violations from others, conventional and guaranteed residential occurring by establishing procedures for central mortgage loans and commercial mortgage loans, ized internal review of all of Applicant’s activities and the servicing of such loans for permanent for compliance with the substantive and procedural investors. Such activities have been determined by requirements of the Act and the Board’s Regula the Board to be closely related to banking (12 CFR tion Y. The Board expects that these actions will § 225.4(a)(1) and (3)). assist Applicant in avoiding a reoccurrence of Notice of the application, affording opportunity similar violations. In consideration of the above for interested persons to submit comments and and other information in the records of these views on the pubic interest factors, has been duly applications, the Board has determined that the published (42 Fed. Reg. 14921 (1977)). The time circumstances of the above violations do not war for filing comments and views has expired, and rant denial of the applications. the Board has considered the application and all The determination with respect to these appli comments received in light of the public interest cations is subject to the conditions set forth in § factors set forth in § 4(c)(8) of the Act (12 U.S.C. 225.4(c) of Regulation Y and to the Board’s au § 1843(c)(8)). thority to require such modification or termination Applicant, the sixth largest banking organi of the activities of a holding company or any of zation in Kentucky, controls one bank, Louisville its subsidiaries as the Board finds necessary to Trust Bank, Inc., Louisville, Kentucky (“Bank”), assure compliance with the provisions and pur with total deposits of $180.3 million, representing poses of the Act and the Board’s regulations and approximately 1.9 per cent of deposits in com orders issued thereunder, or to prevent evasion mercial banks in the State.1 Company, which thereof. commenced operations in 1972, has total assets By order of the Board of Governors, effective of approximately $335,900. Its sole office is lo May 3, 1977. cated in Louisville. Company is one of the smaller mortgage firms in the relevant market, and in 1976, was ranked eleventh largest of twelve mort gage companies in Jefferson County, Kentucky.2 During 1976, Bank originated approximately Voting for this action: Governors W allich, Coldw ell, Jackson, Partee, and Lilly. Absent and not voting: 1.4 per cent of the 1-4 family residential mortgage Chairm an Burns and Governor Gardner. loans secured by real estate located in the Louis- 1As of June 30, 1976. 2 Based upon a ranking by Chicago Title Insurance Company (Signed) Griffith L. Garwood, of dollar amounts of mortgage loans recorded in Jefferson [seal] Deputy Secretary of the Board. County during the first quarter of 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 593 ville mortgage market,3 amounting to $2.4 mil Based upon the foregoing and other consid lion. During 1976, Bank also originated mortgage erations reflected in the record, the Board has loans for multi-family and non-residential mort determined that the balance of the public interest gage loans amounting to $4.3 million.4 factors the Board is required to consider under § Company does not originate single family 4(c)(8) is favorable. Accordingly, the application mortgages. It does, however, originate mortgages is hereby approved. This determination is subject on two-to-four family dwellings. During 1976, to the conditions set forth in § 225.4(c) of Regu these loans, amounting to $0.7 million, accounted lation Y and to the Board’s authority to require for less than 1 per cent of the 1 -4 family residential such modification or termination of the activities loans in the Louisville mortgage market. Company of a holding company or any of its subsidiaries also originated $14 million in multi-family and as the Board finds necessary to assure compliance nonresidential mortgage loans and serviced $22.3 with the provisions and purposes of the Act and million in all mortgage loans. the Board’s regulations and orders issued there Bank and Company are direct competitors to under, or to prevent evasion thereof. some extent in the local market for the origination The transaction shall be made not later than of 1-4 family residential mortgage loans and in three months after the effective date of this Order, the regional or national markets for originating and unless such period is extended for good cause by servicing multi-family residential and commercial the Board or by the Federal Reserve Bank of St. mortgage loans. The effect of the elimination of Louis, pursuant to authority hereby delegated. competition is mitigated, however, by the presence By order of the Board of Governors, effective in the Louisville mortgage market of at least 35 May 18, 1977. other mortgage banking firms and in the regional or national markets, of numerous other such firms. Voting for this action: Vice Chairm an Gardner and Thus, the elimination of competition that would Governors W allich, Coldw ell, Jackson, Partee, and Lilly. Absent and not voting: Chairm an Burns. result from consummation of the proposed trans action would be slight. (Signed) Griffith L. Garwood, Upon consummation of the proposed transac [seal] Deputy Secretary of the Board. tion, Applicant will expand Company’s origina tions and servicing into single family mortgage Wells Fargo & Company, financing, thus making it a stronger competitor in San Francisco, California the Louisville market. In addition, considering Order Approving Acquisition of Company’s small size, Company would also ben Ben G. McGuire & Company efit from access to the additional financial and managerial resources and expertise of Applicant Wells Fargo & Company, San Francisco, Cali that may not otherwise have been available. Fur fornia, a bank holding company within the mean thermore, there is no evidence in the record to ing of the Bank Holding Company Act, has ap indicate that Applicant’s acquisition of Company plied for the Board’s approval under § 4(c)(8) of would result in any undue concentration of re the Act and § 225.4(b)(2) of the Board’s Regula sources, unfair competition, conflicts of interests, tion Y to acquire through a recently established unsound banking practices, or other adverse ef subsidiary, WF-BGM, Inc., San Francisco, Cali fects on the public interest. Based upon these fornia, all of the voting shares of Ben G. McGuire considerations, the Board concludes that the public & Company, Houston, Texas (“Company”), a benefits that would result from consummation of company that engages in the activities of mortgage the proposal outweigh the slightly adverse com lending and servicing loans and other extensions petitive effects that would occur in the Louisville of credit. Such activities have been determined by mortgage market. the Board to be closely related to banking (12 C.F.R. § 225.4(a)(1) and (3)). Notice of the application, affording opportunity 3 The Louisville mortgage market for 1-4 family residential for interested persons to submit comments and loans is approximated by the Louisville Standard Metropolitan views on the public interest factors, has been duly Statistical Area, which includes Jefferson, Bullitt, and Oldham Counties, Kentucky, and Clark and Floyd Counties, Indiana. published (42 Federal Register 13060). The time 4Characteristically, the relevant geographic market for the for filing comments and views has expired, and origination of multi-family and nonresidential mortgage loans the Board has considered the application and all is regional or national in scope, and thus data regarding market shares for such loans are not readily available. comments received in the light of the public inter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
594 Federal Reserve Bulletin □ June 1977 est factors set forth in § 4(c)(8) of the Act (12 Upon consummation of the proposed acquisi U.S.C. § 1843(c)(8)). tion, Applicant would offer McGuire the capability Applicant, the third largest banking organization to fund directly mortgage loans and warehouse in California, controls one bank with total deposits them for short periods of time. To fund such of approximately $10.4 billion representing 10 per operations, Applicant proposes to downstream cent of the total deposits in commercial banks in some of its commercial paper funds to Company. the State.1 Applicant also controls a number of Through increased access to money markets, other subsidiaries, including subsidiaries engaged Company should also be able to offer a wider range in commercial leasing, real estate advisory serv of mortgage loan closings, including residential ices, loan servicing, and mortgage lending. loans, and to enter additional service markets in Company, operating from one office in Houston, Texas. In addition, the policies of Applicant’s Texas, is a mortgage lending and loan servicing mortgage lending subsidiary regarding the financ company engaged in arranging interim financing ing of public housing projects and servicing of with lenders for origination of permanent mortgage FHA loans to low-income borrowers would be loans on commercial and income properties and extended to McGuire. Accordingly, it appears that in the ultimate servicing of such loans. Company the acquisition proposal would produce benefits has not been directly involved in funding mortgage to the public that are consistent with and lend loans, and loans that it has arranged have been weight toward approval of this application. closed in the loan investor’s name, with the inves As a source of funds for the proposed acquisi tor’s funds. Although none of Applicant’s subsid tion ($3.5 million), Applicant will use a portion iaries is engaged in servicing mortgage loans in of excess proceeds remaining from a $50 million the Houston banking market,2 Applicant’s real debt issue in 1973. Thus, it appears that the cost estate advisory subsidiary operates an office in the of the proposed acquisition will be met with funds Houston market and, among other things, origi currently on hand, without diverting financial re nates real estate mortgage loans. However, the sources from Applicant’s operations. amount of such loans made by Applicant’s sub Based upon the foregoing and other consid sidiary is not deemed significant when viewed in erations reflected in the record, the Board has light of the large number of other competitors in determined, in accordance with the provisions of the market.3 Applicant’s mortgage lending subsid § 4(c)(8) of the Act, that Applicant’s acquisition iary also has an office in Houston, but it has not of Company can reasonably be expected to pro originated or serviced any mortgage loans through duce benefits to the public that outweigh possible that office and Applicant has stated^ that it intends adverse effects. Accordingly, the application is to close the office upon consummation of the hereby approved. This determination is subject to proposed transaction. Therefore, in view of the the conditions set forth in § 225.4(c) of Regulation limited nature of Applicant’s present activities in Y and to the Board’s authority to require such the Houston banking market and the competitive modification or termination of the activities of a structure of mortgage lending in that market, it holding company or any of its subsidiaries as the appears that consummation of the proposal would Board finds necessary to assure compliance with not have any significant adverse effects on compe the provisions and purposes of the Act and the tition in the relevant area. Furthermore, there is Board’s regulations and orders issued thereunder, no evidence in the record indicating that consum or to prevent evasion thereof. mation of this proposed transaction would result The transaction shall be made not later than in any undue concentration of resources, unfair three months after the effective date of this Order, compectition, conflicts of interest, unsound bank unless such period is extended for good cause by ing practices or other adverse effects upon the the Board or by the Federal Reserve Bank of San public interest. Francisco. By order of the Board of Governors, effective May 6, 1977. 1 Unless otherwise indicated, all banking data are as of December 31, 1976. 2 The relevant market for purposes of reviewing this applica Voting for this action: Vice Chairm an Gardner and tion is the Houston RMA, approximated by Harris County and Governors W allich, Coldw ell, Jackson, and Partee. portions of Brazoria, Fort Bend, Liberty, Montgomery, and Absent and not voting: Chairm an Burns and Governor Waller Counties. Lilly. 3Within the Houston banking market, McGuire and Appli (Signed) Griffith L. Garwood, cant generally compete with 6 commercial banks, 17 mortgage banking firms, and 10 savings and loan associations. [seal] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 595 Order Under Sections 3 & 4 so closely related to banking or managing or controlling banks as to be proper incidents of Bank Holding Company Act thereto.2 Operation of a New York Investment European-American Bancorp, Company has not heretofore been determined by New York, New York the Board to be an activity permissible for bank holding companies. Order Approving Formation of Bank Notice of receipt of these applications has been Holding Company and Operation of given in accordance with sections 3 and 4 of the New York Investment Company Act (41 Federal Register 49673) and the time for European-American Bancorp, New York, New filing views and comments has expired. The Board York, has applied for the Board’s approval under has considered the applications and all comments section 3(a)(1) of the Bank Holding Company Act received in light of the factors set forth in section (12 U.S.C. § 1842(a)(1)) of the formation of a 3(c) of the Act (12 U.S.C. § 1842(c)), and the bank holding company through the acquisition of considerations specified in section 4(c)(8) of the all the voting shares (except directors’ qualifying Act (12 U.S.C. § 1843(c)(8)). No request for a shares) of European-American Bank & Trust hearing has been received. Company (“Bank”), New York, New York. Applicant is a nonoperating corporation organ Applicant has also applied, pursuant to section ized for the purposes of becoming a bank holding 4(c)(8) of the Bank Holding Company Act (12 company through the acquisition of Bank and of U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of operating a New York Investment Company the Board’s Regulation Y (12 CFR § 225.4(b)(2)), through the acquisition of EABC. Bank was char for permission to acquire all of the voting shares tered in 1953 as the Belgium-American Bank and (except directors’ qualifying shares and 130 addi Trust Company, with the Societe Generale de tional shares) of European-American Banking Banque, S.A., Brussels, Belgium as the sole Corporation (“EABC”), New York, New York. shareholder. In 1968 the Midland Bank, Limited, EABC is an investment company organized and London, England; Deutsche Bank A.G., Frank operating under Article XII of New York State furt, Germany; and Amsterdam-Rotterdam Bank, Banking Law1 (a “New York Investment Com N.V., Amsterdam, The Netherlands, joined as pany”) that engages in the following activities: shareholders, and Bank adopted its present cor provision of lending and international banking porate title. Shortly afterwards, Societe Generale, services, including letters of credit, acceptances Paris, France, and Creditanstalt Bankverein, and other financing facilities in connection with Vienna, Austria, also became shareholders of exports and imports, international transfers of Bank. Bank had two branches in Manhattan and funds and foreign exchange services; investments a limited service branch in the Cayman Islands and foreign exchange transactions for its own until October 1974, when it acquired from the account; leasing improved real estate and data Federal Deposit Insurance Corporation (“FDIC”) processing equipment; and maintenance of credit the deposits, selected assets, and a network of 100 balances incidental to or related to the foregoing branches of Franklin National Bank (“Franklin”), activities. Although Applicant believes that certain Brooklyn, New York. Prior to the Franklin trans of EABC’s activities have been determined by the action, Bank operated principally as a wholesale Board in section 225.4(a)(1), (3), and (6) of Reg bank, serving primarily European companies in the ulation Y to be permissible for bank holding com American market and selected U.S. companies. panies, it has not applied to acquire shares of Through the purchase of $1.6 billion of Franklin’s EABC on the basis of those provisions. Rather, assets, Bank became a major retail bank in the based on the facts and circumstances of this par Metropolitan New York market,3 with most of its ticular case, Applicant has requested under section operations concentrated on Long Island. Bank 225.4(a) of Regulation Y that the Board determine by specific Order under section 4(c)(8) of the Act that its operation of EABC as a New York Invest 2Under § 4(c)(8) of the Act, the Board may determine that ment Company is permissible under section 4(c)(8) the prohibitions of Section 4 of the Act shall not apply to of the Act because EABC is engaged in activities the shares of any company the activities of which the Board after due notice and opportunity for hearing has determined by order or regulations to be so closely related to banking or managing or controlling banks as to be a proper incident 1See New York Banking Law §§ 507-519, 4 McKinney’s thereto. Consolidated Laws (1976). 3See following page for footnote. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
596 Federal Reserve Bulletin □ June 1977 ($2.2 billion in domestic deposits) is the 11th EABC have concentrated on complementary lines largest bank in the market with 1.5 per cent of of service. EABC engages primarily in interna the market’s deposits.4 tional lending and banking services, and Bank EABC was organized in 1950 as a New York concentrates on providing domestic lending and Investment Company under Article XII of New banking services. This separation derives in part York Banking Law, under the name Belgian - from statutory restrictions on EABC’s general de American Banking Corporation, replacing and posit-taking and trust powers, and in part from succeeding to the business of the New York a respective business emphasis determined by the agency of Banque Beige pour L’Etranger (Over common management of the two companies. In seas), Ltd., London, England. EABC, which was light of the above and other facts in the record, owned by Banque de la Societe Generale de Bel it appears that consummation of Applicant’s pro gique and other of its Belgian affiliates, assumed posals will eliminate no significant competition. its present corporate title in 1968 when Amster- There is a long history of common ownership, dam-Rotterdam Bank, Midland Bank, and a sub common management, and cooperative operation sidiary of Deutsche Bank became shareholders. of the two institutions, and it appears unlikely that Societe Generale and Creditanstalt Bank later be this relationship would be altered if the subject came shareholders of EABC. EABC operates applications were denied. On the basis of the through its main office in New York City, two record before it, the Board concludes that compet branch offices in California and a foreign branch itive considerations are consistent with approval located in Nassau, The Bahamas. EABC also has of the applications.6 five wholly-owned subsidiaries: Euram Realty The financial and managerial resources of Ap Corporation and Euramcor Realty Corporation, plicant, which will be primarily dependent upon Jersey City, New Jersey, special-purpose, single those of Bank and EABC, are considered satis transaction leasing companies that acquired and factory and its future prospects appear favorable. lease certain real property as accommodations to Thus, considerations relating to banking factors EABC’s customers in accordance with the condi are consistent with approval of the application to tions of section 225.4(a)(6)(b) of Regulation Y; acquire Bank. Disk Pack Leasing Corporation, New York, New In acting on the application to acquire EABC, York, which is now dormant but which was en the Board must first determine under the provisions gaged in the leasing of data processing equipment; of section 4(c)(8) of the Act whether the activities and two foreign subsidiaries, European-American of EABC, as a New York Investment Company, Finance (Bermuda), Limited, Hamilton, Bermuda, are closely related to banking or managing or and Euro-Credit S.A., Panama, Panama, Appli controlling banks. The New York Investment cant’s indirect acquisition of which the Board has Company is a unique type of banking and financ approved by separate letter pursuant to section 4(c)(13) of the Act. 5New York Banking Law § 509, 4 McKinney's Consolidated Laws (1976). Both Bank and EABC are owned by the same 6 In reaching its determination on competitive factors in this shareholders in substantially the same proportions. application, the Board took into consideration the fact that The proposed transaction is essentially a restruc Applicant will be owned by the same group of foreign banks that presently controls Bank and EABC and that controlled turing of the interests of these shareholders combined total assets on a world-wide basis of nearly $ 120 billion whereby ownership of Bank and EABC will be at year-end 1975. The subject application proposes a reorganiza transferred to a corporation similarly owned. tion of these banks’ existing interests in Bank and EABC, and does not represent an expansion of their joint presence in U.S. While Bank and EABC have many similar banking markets. No adverse comments have been received from the powers, Bank engages to a substantial extent in Department of Justice on this proposal. In a letter dated July retail banking, which EABC cannot do because 18, 1975, from Assistant Attorney General Thomas R. Kauper to Congressman Wright Patman, Mr. Kauper stated that the it is prohibited by New York Banking Law from Department “was aware of no evidence which would indicate accepting deposits from the general public.5 It that the EABTC [Bank] venture is part of a more comprehensive illegal arrangement affecting the domestic or foreign commerce appears from the facts of record that Bank and of the United States. Nor does it appear that the joint venture, when viewed in the context of a very large market containing 3 The Metropolitan New York market consists of the five numerous powerful domestic and foreign competitors, may boroughs of New York City, plus Nassau, Putnam, Rockland, substantially lessen competition as defined by the courts under and Westchester Counties, and western Suffolk County, all Section 7 of the Clayton Act.” It also appears from the record in New York State, as well as the northern two-thirds of Bergen of this application that the existing joint ownership of Bank and County and eastern Hudson County in New Jersey and south EABC by six large European banks would not be altered if the western Fairfield County in Connecticut. subject applications were denied. Accordingly, in these circum 4Bank deposit data are as of December 31, 1976; market stances, Applicant’s ownership by six large European banks share and market rank information are as of June 30, 1975. presents no adverse competitive considerations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 597 ing corporation organized under a separate article especially the unique structural and competitive of New York Banking Law that is believed to have circumstances existing in New York, that the no close institutional parallel under the laws of present activities of EABC are closely related to other States. Its singular powers and status chiefly banking.9 In fact, EABC’s activities are so like reflect the diversity of New York’s financial mar those generally provided by commercial banks, kets and the attractiveness of such nlarkets to that there is a substantial question whether EABC domestic and foreign financial institutions alike. should be considered a “bank” for purposes of There are now two principal types of New York the Act. Investment Companies. One type engages pri Section 2(c) of the Act (12 U.S.C. § 1841(g)) marily in financing retail sales; included among defines the term “bank” to include any institution this group are some of the Nation’s largest finance organized under the laws of any State of the United companies, such as General Motors Acceptance States which “accepts deposits that the depositor Corporation and Commercial Credit Company. has a legal right to withdraw on demand” and The other type, including EABC, is engaged in engages in the business of making commercial transacting virtually all of the usual activities of loans. EABC is a State-chartered corporation that a commercial bank, except the general business accepts “credit balances” for the account of its of accepting deposits. These “banking” Invest customers that the customers have a legal right ment Companies,7 like EABC, are all ultimately to withdraw on demand, and it engages in the controlled or affiliated with foreign banking orga business of making commercial loans. Accord nizations and are engaged primarily in interna ingly, if EABC’s credit balances are deposits tionally-related activities. In this regard, it appears within the meaning of section 2(c), it would satisfy that the New York Investment Company has, over the definitional test. the years, served as a means for foreign bank entry In 1971, the Board determined that a similar into New York in cases where entry through a New York Investment Company was not a “bank” direct branch or agency was either unavailable or within the meaning of section 2(c) based largely undesirable for the purposes sought. on three considerations.10 First, the Board was Each of the lending and banking services pres persuaded at that time that Congress meant to ently offered by EABC is offered by commercial include in the definition of “bank” only those banks generally and, in this connection, EABC institutions that offer to the public the general competes with foreign banking organizations and convenience of checking account facilities. In this domestic commercial banks and their Edge Cor regard, it was found that the New York Investment poration subsidiaries in the provision of such Company involved could accept credit balances services in New York.8 It is the Board’s view, only as an incident to transactions it was legally in light of the above and other facts of record, permitted to perform for its customers, that it could 7In addition to EABC, there are: J. Henry Schroder Banking Corporation, New York, New York, a subsidiary of Schroders, 7. Investing in equity securities of any company (where such Ltd., a registered foreign bank holding company; French- investments constitute no more than 5 per cent of the com American Banking Corporation, New York, New York, a pany’s outstanding voting stock); and subsidiary of Banque Nationale de Paris, Paris, France, a 8. Operating a foreign branch and through that branch registered foreign bank holding company; Nordic American receiving funds in the form of time account credit balances Banking Corporation, New York, New York, which is owned (almost entirely from foreign persons), lending such funds to by Svenska Handels-banken; and Baer American Banking banks and corporations primarily located outside the United Corporation, New York, New York, a subsidiary of a private States, and placing such funds in time accounts with banks. Swiss bank. 9Two courts that have considered the “closely related” 8 The following banking and lending activities are those language in section 4(c)(8) of the Act have concluded, inter currently engaged in directly by EABC under authority of alia, that an activity generally engaged in by banks directly section 508 of New York Banking Law: would generally qualify as “closely related” to banking or 1. Borrowing and lending money (without limitation as to managing or controlling banks within the meaning of the a single borrower); statute. National Courier Association v. Board of Governors 2. Acquiring and disposing of bills of exchange, drafts, of the Federal Reserve System, 516 F.2d 1229 (D.C. Cir. notes, acceptances, and other obligations for the payment of 1975); Alabama Association of Insurance Agents v. Board of money, including bonds and mortgages on real property; mak Governors of the Federal Reserve System, 533 F.2d 224 (5th ing loans upon the security of such bonds and mortgages, and Cir. 1976), modified,____F.2d____(5th Cir. January 10, 1977). accepting bills of exchange or drafts upon them; 10Board letter of November 8, 1971 to the San Francisco 3. Issuing letters of credit; Reserve Bank concerning the status of French-American 4. Buying and selling foreign exchange; Banking Corporation; see also Board Order of Feburary 7, 5. Receiving funds for transmission to foreign countries; 1972 approving the application of Banque Nationale de Paris 6. Receiving and maintaining credit balances incidental to, to retain French-American Banking Corporation under section or arising out of, the exercise of its lawful powers; 4(c)(9) of the Act, 58 Federal Reserve Bulletin 312 (1972). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
598 Federal Reserve Bulletin □ June 1977 not solicit or accept deposits of idle funds, and considered with the historical legal and adminis that its customers were not permitted to use such trative distinction between credit balance and de balances in the manner of a general checking posit accounts in New York, and Congress’ gen account, although drafts could be drawn on such eral intent to exclude international banking cor accounts to pay for the import and export of goods. porations from the Act’s definition of “bank,”13 Second, the New York Superintendent of Banks the Board believes that the Act need not be ex had expressed the view that the distinction between tended administratively to include institutions such credit balances and deposits was “meaningful” as EABC or other New York Investment Compa and “administrable” in New York. Third, the nies owned by foreign banks, so long as they company involved was principally engaged in fi continue to engage primarily in international nancing or facilitating transactions in international banking activities. The resolution of the status of or foreign commerce. Since that time, the Board such companies under Federal banking laws, in has generally reviewed the activities of New York light of the above considerations, is more properly Investment Companies owned by foreign banks in a matter for legislative determination and, in this the course of considering proposed legislation to connection, the Board has recommended to Con regulate foreign bank activities in the United gress that New York Investment Companies States, and has recommended to Congress that owned or controlled by foreign banks be subject these New York Investment Companies, such as to the same Federal regulation that Congress may EABC, should be subject to Federal banking reg impose on branches and agencies of foreign banks. ulation, including reserve requirements and inter Although, as determined above, EABC is pres est rate controls on their credit balances. In this ently engaged in activities closely related to bank regard and in other situations, the Board has stated ing, Applicant has also applied to engage through that it believes the credit balance accounts of EABC in all activities permissible to EABC as foreign bank agencies and banking New York a New York Investment Company under Article Investment Companies are in many respects the XII of the New York Banking Law, except that functional equivalent of deposits when maintained Applicant has agreed that (1) notwithstanding its in connection with the provision of traditional broad investment powers, EABC will not invest commercial banking services.11 The Board, how in more than 5 per cent of the voting shares of ever, has not determined that credit balances any company except with prior Board approval should be defined as demand deposits within the under the Act, and (2) EABC will continue to meaning of section 2(c) of the Act. conduct its indirect leasing activities in accordance Viewing the credit balance activities of EABC with section 225.4(a)(6) of Regulation Y. Because in light of these precedents and other facts in the EABC is already affiliated with Bank, a member record, the Board is satisfied that the consid bank, it is foreclosed by section 20 of the Glasserations reflected in its 1971 ruling apply equally Steagall Act (12 U.S.C. § 377) from engaging to EABC and that therefore EABC should not be principally in securities underwriting and distri regarded as a “bank” because it does not accept bution activities even though Article XII of the demand deposits within the meaning of section New York Banking Law permits a broad range 2(c) of the Act. The focus of the Act’s legislative of such securities activities to New York Invest history on the general provision of checking ac ment Companies. Applicant has stated that EABC counts and the longstanding acceptance of the is not now engaged in underwriting activities and provision of checking accounts as one of the in the future would only engage in underwriting features distinguishing commercial banks from other financial institutions are factors that must be given particular weight.12 When such factors are distinct line of commerce for purposes of section 7 of the Clayton Act, noted that— “See the Board’s Order of May 30, 1975, denying Bank Some commercial banking products or services are so of Tokyo’s application to acquire Tokyo Bancorp International distinctive that they are entirely free of effective com (Houston), Inc., Houston, Texas, under section 4(c)(9) of the petition from products or services of other financial Act, 61 Federal Reserve Bulletin 449 (1975); and a Board institutions; the checking account is in this category. letter of March 17, 1977, to Citibank, N.A., New York, New 13The definition of “bank” in section 2(c) of the Act York, regarding a proposal by Grindlays Bank, Ltd., London, specifically excludes Edge Act and Agreement Corporations England, to establish an agency in New York City. operating under sections 25(a) and 25 of the Federal Reserve 12See U.S. v. Philadelphia National Bank, 374 U.S. 321, Act, respectively, and any other “organization that does not 356 (1962), where the Supreme Court in explaining the cluster do business within the United States except as an incident to of products and services that make commercial banking a its activities outside the United States.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 599 activities permissible to Bank.14 Subject to these commitment of its shareholder banks to advance limitations, EABC’s present and proposed activi $25 million, $15 million for the benefit of Bank, ties all appear to be closely related to banking. replacing more expensive debt, and $10 million In order to approve the subject application by to EABC as additional capital. Approval of this Order under section 4(c)(8), the Board is required particular application will also insure that, not to determine that Applicant’s proposed operation withstanding its broad powers under Article XII of EABC as a New York Investment Company of New York Banking Law, EABC, an existing is a proper incident to banking or managing or affiliate of Bank, will only engage in activities that controlling banks. This test requires the Board to are closely related to banking and proper incidents consider whether Applicant’s acquisition and thereto. operation of EABC pursuant to this application EABC, like similar New York Investment “can reasonably be expected to produce benefits Companies owned by foreign banks and agencies to the public, such as greater convenience, in of foreign banks, does not have to maintain re creased competition, or gains in efficiency, that serves against its credit balance accounts, and outweigh possible adverse effects, such as undue these accounts are not subject to interest rate concentration of resources, decreased or unfair limitations. While maintenance of such accounts competition, conflicts of interest, or unsound may not cause EABC to be a “bank” for purposes banking practices.” This statutory test necessitates of section 2(c) of the Act, the Board believes that a positive showing by Applicant that the public for purposes of reserve requirements and interest benefits of its proposal outweigh the possible ad rate limitations, such accounts should be consid verse effects of its proposed acquisition. In the ered to be deposits. The Board has, in this regard, present case, the Board has determined that, based specifically recommended to the Congress that it on the particular facts and circumstances and be given the authority to impose reserve require unique public benefits associated with this appli ments and interest rate limitations on all foreign cation, factors relating to the convenience and bank operations in this country—whether con needs of the community to be served lend weight ducted through branches, agencies, New York to approval of Applicant’s application to acquire Investment Companies, or bank subsidi Bank, and the public benefits of its application to aries—because of the growing importance of such acquire EABC, subject to the conditions noted in institutions in this country’s money markets and this Order, outweigh the possible adverse effects their particular ability to transmit funds from of that proposal and therefore satisfy the “proper abroad. Thus, from a broader structural and mon incident” test of section 4(c)(8) of the Act. etary policy viewpoint, the Board is seriously It is expected that approval of the subject appli concerned by the fact that credit balance accounts cations will result in the more efficient operation maintained by foreign banking organizations are of both Bank and EABC through improved internal not generally subject to reserve requirements. In supervision. Moreover, interposition of a holding the Board’s view, any proposal under section company structure in this situation can be expected 4(c)(8) of the Act that would have the effect of to reduce borrowing costs and permit Bank and diminishing the reserve base either by facilitating EABC to raise capital more efficiently; in particu the acceptance of reserve-free credit balances or lar, since Applicant will become a primary or joint encouraging a shift from reservable deposits to obligor on Bank’s note to the FDIC arising out such balances would entail serious adverse effects. of the Franklin acquisition, EABC’s earnings may This particular application, however, involves also be applied toward reducing that debt, thus only a reorganization of the ownership of EABC, better enabling Bank to meet the convenience and and insofar as the credit balances of EABC are needs of the communities it serves. In this regard, concerned, the proposal merely preserves the Applicant specifically expects to reduce the bor status quo and does not reduce the reservable rowing costs of Bank and EABC through the deposit base of the banking system or otherwise create an opportunity to shift deposits that does not already exist. If necessary, and in particular if a deliberate attempt to evade or circumvent 14 The Board recently decided to defer action on a proposal domestic reserve or interest requirements were to make underwriting and dealing in Federal Government securities and general obligations of States or their subdivisions discovered, the Board could in the future proceed a permissible activity for bank holding companies. Board Order by regulation or otherwise to subject credit balance of October 19, 1976, 62 Federal Reserve Bulletin 928, 973 (1976). accounts held by member bank affiliates engaged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
600 Federal Reserve Bulletin □ June 1977 in banking operations to the requirements of Reg imposed on Edge Act and Agreement Corpora ulations D and Q.15 However, to subject only tions. Acquisition of such offices could give Ap EABC and possibly one or two other foreign bank plicant a competitive advantage over other domes operations to these requirements at this time,16 tic banking organizations and could thus under when most other foreign bank operations are con mine the domestic structure of multi-State interna ducted free from monetary controls, would put tional banking competition that has been carefully these institutions at a competitive disadvantage prescribed by the Congress to avoid the conduct under existing circumstances. The most equitable of domestic commercial banking operations at solution to the problem of reserve-free credit bal offices in more than one State. Such possible ance accounts at foreign bank operations is uni adverse effects on the structure and conduct of form foreign bank legislation, a solution the Board banking operations in this country are not, in the has proposed and consistently recommended since Board’s judgment, outweighed by any particular 1974. benefits to be derived from Applicant’s acquisition EABC has established two branches in Califor of EABC’s California offices. The competitive nia at which it engages primarily in international benefits that may be derived from Applicant’s banking and lending services, but at which it may presence in California can be equally achieved also engage in purely domestic commercial lend through Applicant’s direct or indirect acquisition ing activities. The Board does not believe that it of an Agreement Corporation subsidiary in Cali was within the intent of Congress to authorize fornia, in accordance with the framework estab under section 4 (c)(8) of the Act the ownership lished by the Congress for the conduct of such of companies that would enable domestic bank activities on a multi-State basis.18 Accordingly, the holding companies to conduct an international Board has determined that ownership by Applicant banking business on a multi-State basis outside of of EABC, if EABC maintains its California of the explicit legal framework set up by the Congress fices, is not a proper incident to banking or man in sections 25 and 25(a) of the Federal Reserve aging or controlling banks, and that to conform Act.17 In particular, EABC’s California offices are with this determination Applicant must, if it ac not subject to the restrictions on domestic business quires EABC, divest EABC’s California offices within two years from the date as of which Appli cant becomes a bank holding company. EABC also has a branch in Nassau, The Ba ^Approximately 70 per cent of EABC’s credit balance accounts are maintained at its foreign branch and payable hamas, which engages in the types of banking abroad, and deposits payable only outside the United States activities conducted by shell branches of U.S. are generally exempt from reserve and interest rate require banks. So long as this branch limits its activities ments. 16J. Henry Schroder Banking Corporation is also affiliated to those permissible for EABC under this Order, with a member bank, and Grindlays Bank, Ltd., in which the Board believes that Applicant may operate this Citibank has a substantial equity interest, plans to open an agency in New York at which credit balance accounts will branch of EABC under section 4(c)(8) of the Act.19 be maintained. If Applicant or EABC proposes to engage in 17 In 1972, the Board permitted a foreign bank holding activities outside this country that are not permis company under section 4(c)(9) of the Act to retain its interest in a New York Investment Company even though it was sible for EABC under this Order, Applicant may organizing a bank subsidiary in California. Board Order of February 7, 1972 approving Banque Nationale de Paris’ reten tion of French-American Banking Corporation, 58 Federal Reserve Bulletin 311 (1972). In 1975, the Board denied an application by Bank of Tokyo, Tokyo, Japan, a foreign bank 18 The Board has considered Applicant submissions on this holding company, to acquire an international banking com issue and believes the fact that EABC can engage in certain pany, Tokyo Bancorp International (Houston), Inc., in a State domestic activities not permissible to Edge Act or Agreement outside of its State of principal banking operations under Corporations weighs in favor of denial rather than approval section 4(c)(9). Board Order of May 30, 1975, 61 Federal for the reasons cited in this Order. Reserve Bulletin 449 (1975). The Board subsequently ap 19 The Board notes that Regulation Y currently provides for proved Bank of Tokyo’s application to acquire the same the establishment of de novo branches under section 4(c)(8) corporation as an Agreement Corporation subsidiary subject in accordance with the procedures described in section to the restrictions of section 25 of the Federal Reserve Act. 225.4(b)(1) of Regulation Y. These procedures, requiring local Board letter of January 26, 1976, 62 Federal Reserve Bulle newspaper publication, are designed for domestic expansion tin 164. While Applicant is owned by foreign banks, it will of section 4(c)(8) offices; any bank holding company proposing not be a foreign bank holding company, and thus the issue to establish a branch of a section 4(c)(8) company outside of presented in this case is whether a domestic bank holding the United States should file a specific application to do so company, irrespective of its ownership, should be allowed to under section 225.4(b)(2). The Board has directed its staff to use section 4(c)(8) of the Act to conduct a combination of develop proposed procedures for the establishment of foreign domestic and international banking activities across State offices of section 4(c)(8) companies to be published for public borders. comment in the Federal Register. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 601 file a separate application under section 4(c)(13) or nonbanking activities or business ventures in of the Act to organize a subsidiary to engage in this country.21 The Board may, in any event, those activities. reconsider the question whether the shareholders Applicant has also applied to engage in three have combined to act together as a company if activities permissible for New York Investment in the future it appears the shareholders are not Companies but in which it is not now engaged acting independently as essentially passive inves and has no fixed present intention to engage: tors, and take appropriate action under the Act. underwriting activities permissible to Bank, a On the basis of the foregoing and all the facts member bank, dealing in coin and bullion, and of record, the Board has determined that the con acting as financial agent of the Federal Govern siderations affecting the competitive, banking, and ment and as depositary of Federal money. The convenience and needs factors under section 3(c) Board has deferred consideration of a proposal to of the Act, and the balance of the public interest specify the first of these activities to be permissible factors the Board must consider under section for bank holding companies under Regulation Y,20 4(c)(8) of the Act in permitting a bank holding and in the Board’s judgment, Applicant has not company to engage in an activity on the basis that established any public benefits that would be it is closely related to banking both favor approval derived from its engaging in any of these three of the applications subject, however, to the fol activities through EABC. For this reason, the lowing conditions: Board is unable to conclude that ownership of (1) That EABC continue to engage principally EABC, if EABC engaged in these activities, in the financing or facilitating of transactions in would be a proper incident to banking or managing international or foreign commerce, and not accept or controlling banks. The Board is compelled to demand deposits; conclude instead, in light of the facts in the record, (2) That EABC comply with all reserve and that EABC, as a subsidiary of a domestic bank interest rate requirements that may be imposed on holding company, should not engage in these it either as a result of action of the Board or activities until it is able to present specific propos enactment of legislation; als concerning them and the manner in which and (3) That Applicant cause EABC to divest its extent to which they would be conducted, and the offices in California within two years from the date specific public benefits that would be derived. as of which Applicant becomes a bank holding In its consideration of this proposal, the Board company; also noted that Applicant will serve as a single (4) That EABC confine the activities of its vehicle for the ownership of Bank and EABC by Nassau branch to those permissible to EABC at their existing foreign bank shareholders. The its head office under this Order; Board has previously determined that no one of (5) That EABC not engage in the activities of the foreign bank shareholders of Bank is now a underwriting, selling, or distributing securities, bank holding company and that the shareholders buying or selling coin and bullion, or acting as have not heretofore formed themselves into a a financial agent of the United States Government “company”, as defined in the Act, to control or as a depositary of public moneys of the United Bank. On the basis of the record, this reorganiza States, or in any new activity in which New York tion does not appear to affect those conclusions. Investment Companies by subsequent enactment However, the Board is concerned that the close may be empowered to engage, without the prior association of Applicant’s shareholders could approval of the Board; and create opportunities for additional investments and (6) That Applicant’s shareholders, and their activities by this group in the United States under parent and subsidiary organizations, will not, ex circumstances that could be inconsistent with the cept through Applicant with the Board’s approval purposes of the Act. Accordingly, the Board’s under the Act, engage, as part of a group consistapproval of these applications is conditioned on a requirement that Applicant’s foreign bank share holders not proceed, otherwise than through Ap plicant, in substantially the same combination to 21 The Board has imposed similar conditions in other cir cumstances where a bank is to be owned by several banking engage directly or indirectly in additional banking organizations. See Board Order of May 6, 1977 approving the amended application of SYB Corporation, Oklahoma City, Oklahoma, to become a bank holding company and Board letter of January 26, 1976, to Thomas L. Farmer, Esq. re UBAF 20 Supra, n. 14. Arab-American Bank, New York, New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
602 Federal Reserve Bulletin □ June 1977 ing of substantially the same companies as are Dissenting Statement of Governor Lilly shareholders of Applicant, in any additional bank ing or nonbanking activities or business ventures I concur in the majority’s action approving the within the United States, other than normal bank application of European-American Bancorp to ac ing transactions,22 and that none of Applicant’s quire European-American Bank & Trust Com shareholders will sell, assign, or transfer any of pany, but I would deny its application to acquire its shares of Applicant unless it has obtained the European-American Banking Corporation, New agreement of any purchaser, assignee, or trans York, New York, pursuant to section 4(c)(8) of feree to comply with this condition. the Act. In my view, EABC is a “bank” for Subject to the conditions prescribed in this purposes of the Bank Holding Company Act and Order, the applications are hereby approved based it is thus inappropriate to approve its acquisition on the record and for the reasons summarized as a “nonbanking” company under the standards above. The acquisition of Bank shall not be made of section 4(c)(8) of the Act. In this regard, I before the thirtieth calendar day following the cannot agree with the majority’s reliance on an effective date of this Order; and the acquisition earlier 1971 ruling that a similar New York In of Bank and EABC shall not be made later than vestment Company was not a “bank” under the three months after the effective date of this Order, Act. Essentially, I believe that, since that ruling, unless such period is extended for good cause by the Board has obtained sufficient additional infor the Board, or by the Federal Reserve Bank of New mation concerning the activities of the “banking” York pursuant to delegated authority. The deter New York Investment Companies owned by mination as to Applicant’s operation of EABC is foreign banks to conclude properly that such insti subject to the conditions set forth in this Order tutions should be considered “banks” under the and in section 225.4(c) of Regulation Y, and to Act. the Board’s authority to require reports by and In my judgment, Congress only intended to make examinations of bank holding companies and exclude from the definition of “bank” in section their subsidiaries, and to require such modification 2(c) of the Act organizations that are not engaged or termination of the activities of a bank holding in domestic commercial banking activities, and it company or any of its subsidiaries as the Board is in this context that the rather technical elements finds necessary to assure compliance with the of the definition of “bank” in the Act should be provisions and purposes of the Act and the Board’s analyzed. It seems clear from the record of this Orders and regulations issued thereunder, or to case and from the Board’s analysis of the activities prevent evasion thereof. of other “banking” New York Investment Com By order of the Board of Governors, effective panies that EABC and similar companies, though May 10, 1977. unable to offer retail banking services and though primarily engaged in international banking activi ties, are nevertheless engaged in substantial do Voting for this action: Governors W allich, Coldw ell, mestic commercial banking activities. The credit Jackson, and Partee. Voting against this action: Gover nor Lilly. Absent and not voting: Chairm an Burns and balances that these organizations maintain for their Governor Gardner. customers’ accounts can be transferred for a vari ety of purposes and in many respects appear to (Signed) Theodore E. Allison, overlap the demand deposit services provided by [seal] Secretary of the Board. ordinary commercial banks. It appears that cus tomers of EABC and similar companies may draw against their credit balances by mail, telephone, or cable instruction, and, in some cases, by draft, which is the functional equivalent of a check, for 22For the purposes of this condition, the exception for normal the purpose of transferring funds to third parties banking transactions is intended to permit several of Appli in settlement of a wide variety of financial and cant’s shareholders to participate independently in the same syndicated loan or other credit transaction, to maintain inde commercial transactions. The fact that a customer pendently normal correspondent relationships with the same cannot legally write a check against his existing domestic bank, and to engage independently in other transac tions of that character. The exception is not intended to permit balance and the fact that EABC and similar compa the joint establishment of representative offices, branches, nies can only maintain credit balance accounts re agencies, or the joint organization of or acquisition of voting lated to other activities still do not change the nature shares in a United States organization by substantially the same shareholders as own Applicant. of business being conducted or the practical equiva Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 603 lent of credit balances to demand deposits in the Board’s Rules of Practice for Formal Hearings and context of providing other wholesale commercial the Board’s Order of August 1, 1974. banking services. In fact, for monetary policy pur On March 10, 1977, the Board ordered the poses, the Board views the equivalency as strong Administrative Law Judge not to prepare a recom enough to include these balances in the definition mended decision but to submit and certify the of M-l. record of the hearing to the Board not later than Accordingly, I believe this application presents April 30, 1977. The Board further ordered that an excellent opportunity to abandon the 1971 rul the record include (1) a statement of the issues ing and henceforth to treat “banking” New York for decision by the Board, jointly agreed to by Investment Companies as “banks” for purposes the parties and separately stated as to those issues of the Act, especially where as here, they are on which there is not agreement; (2) proposed owned by foreign banking organizations that are findings of fact and conclusions of law on behalf particularly well-suited to use these entities for the of each party; (3) such brief and reply brief as conduct of wholesale commercial banking activi each party may wish to file in support of those ties. To adhere to that ruling results, I believe, proposed findings of fact and conclusions of law. in continuing anomalies, as evidenced in the ma The hearing officer has complied with the Order jority’s decision where it is clearly implied that and so certified the record. credit balances should not be considered deposits At the time of his certification there was a for purposes of the Bank Holding Company Act pending motion by International Bank to reopen definition of a bank but should be for monetary the record to introduce additional documents as policy purposes. While I appreciate the legal dis well as a response by Board’s counsel to that tinctions drawn under the Act and the legislative motion and a further response and motion of history and administrative precedents militating International Bank. The hearing officer, because against a ruling that EABC is a bank, and while of the time constraints, was not able to act on I fully support the conditions imposed by the these motions and they were, therefore, certified majority in its decision, I would, for the reasons to the Board for its action. indicated above, nevertheless deny the application Among the issues certified by the hearing ex to acquire EABC on the basis that it is a “bank” aminer is the question whether the proceeding is within the meaning of the Act and thus must be “moot” due to the then-proposed sale of Interna acquired under section 3 of the Act, if at all. tional Bank’s holdings in Financial General to a group of investors headed by J. William Midden - Order Granting Motion to Reopen Record dorf, II. The pending motion was obviously in tended to provide information bearing on changes International Bank, in the relationship between International Bank and Washington, D.C. Financial General and thus, on the “mootness” issue. In the Matter of the Determination of The Board believes that the use of the term Control Over Financial General Bankshares, Inc. “moot” misconstrues the issues involved in the On August 1, 1974, the Board entered an Order proceeding. The fact that the relationship between determining that International Bank, Washington, International Bank and Financial General may D.C., had not terminated its control over Financial have changed does not relieve the Board of the General Bankshares, Inc., Washington, D.C., obligation to determine on the record of this pro which International Bank admittedly had in 1966, ceeding whether control or a controlling influence and preliminarily determining, pursuant to § existed at any point in time. Rather, if such control 2(a)(2)(C) of the Bank Holding Company Act (12 or a controlling influence existed, a subsequent U.S.C. 1841(a)(2)(C)), that International Bank ex change in that relationship may bear only on the ercises a controlling influence over the manage nature of any affirmative relief that may be ordered ment and policies of Financial General Bank by the Board. shares. International Bank requested a hearing to However, in an attempt to expedite this pro contest the Board’s determinations of control and, ceeding and resolve all issues relating thereto at by Order dated October 4, 1974 (39 Federal Reg one time, the Board has determined to grant the ister 36510), the Board ordered such a hearing motion in part. before Frederick Denniston, Administrative Law It is hereby ordered, That the record in this Judge, to be conducted in accordance with the proceeding is reopened and the matter is referred Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
604 Federal Reserve Bulletin □ June 1977 back to the Administrative Law Judge for such 3(a) of the Bank Holding Company Tax Act of proceedings as may be consistent with this order. 1976 (the “Tax Act”), that the sale on September In this regard the parties are directed to develop 29, 1970 of 462,636 shares of the outstanding additional facts, to formulate supplemental issues, voting stock of the Arizona Bank, Phoenix, Ari and to submit to the Administrative Law Judge zona (“Bank”), by Signal Equities Company, supplemental briefs and proposed findings of fact Phoenix, Arizona (“Equities”), a subsidiary of relating to whether, assuming control or a control Signal, to Arizona Equities, Inc., Phoenix, Ari ling influence over Financial General has been zona (“Arizona”), was necessary or appropriate exercised by International Bank, such relationship to effectuate the policies of the Bank Holding has been terminated. In this regard the possible Company Act (12 U.S.C. § 1841 et seq.) (“BHC applicability of § 2 (g)(3) of the Bank Holding Act”). Signal has also requested a final certifi Company Act and any relationship between the cation pursuant to § 6158(c)(2) of the Code that Middendorf group and International Bank should Signal has (before the expiration of the period be explored. Furthermore, assuming the position prohibited property is permitted under the BHC is taken that any such control relationship has not Act to be held by a bank holding company) ceased been terminated, the question of what conditions to be a bank holding company.1 should be imposed by the Board to insure such In connection with these requests, the following termination should be addressed. Further, if it is information is deemed relevant for purposes of contended that control or a controlling influence issuing the requested certifications:2 existed at any point in time, the question of what 1. Signal is a corporation organized under the affirmative relief, if any, should be ordered by the laws of the State of Delaware on June 25, 1928. Board with respect to the future activities of Inter Equities is a corporation organized under the laws national Bank and Financial General should be of the State of Arizona. Signal acquired all of the addressed. outstanding shares of Equities on September 1, It is further ordered, That the hearing officer 1967. shall set such schedules on this matter as shall 2. On September 1, 1967, Signal acquired in allow him to certify the additional portions of the direct ownership and control, through Equities, of record to the Board not later than July 15, 1977. 462,636 shares, representing 52.06 per cent of the As with respect to the prior certification, the hear total outstanding voting shares, of Bank. ing officer shall certify such record without a 3. Signal would have been a bank holding recommended decision. company on July 7, 1970, if the BHC Act By order of the Board of Governors, effective Amendments of 1970 had been in effect on such May 20, 1977. date, by virtue of its indirect ownership and control on that date, through Equities, of more than 25 Voting for this action: Vice Chairm an Gardner and per cent of the outstanding voting shares of Bank. Governors Coldw ell, Jackson, Partee, and Lilly. Absent 4. On September 29, 1970, Equities sold sub and not voting: Chairm an Burns and Governor W allich. stantially all of its assets, including 462,636 (Signed) Griffith L. Garwood, shares, representing 52.06 per cent of the total [seal] Deputy Secretary of the Board. outstanding voting shares of Bank, to Arizona for cash. 5. On September 29, 1970, Signal held prop P r io r C er t ific a t io n s U n d e r t h e 1976 B a n k H o ld in g C o m p a n y T a x A c t o f The Signal Companies, Inc., 1 Pursuant to §§ 2(d)(2) and 3(e)(2) of the Tax Act, in the Beverly Hills, California case of any sale that takes place on or before December 31, 1976 (the 90th day after the date of the enactment of the Tax Prior and Final Certifications Pursuant to the Act), the certification described in § 6158(a) shall be treated as made before the sale, and the certification described in § Bank Holding Company Tax Act of 1976 6158(c)(2) shall be treated as made before the close of the calendar year following the calendar year in which the last [Docket No. TCR 76-103] such sale occurred, if application for such certification was made before the close of December 31, 1976. Signal’s appli The Signal Companies, Inc., Beverly Hills, cation for such certifications was received by the Board on California (“Signal”), has requested a prior cer October 25, 1976. tification pursuant to § 6158(a) of the Internal 2This information derives from Signal’s correspondence with the Board concerning its request for certification as well as Revenue Code (the “Code”), as amended by § other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 605 erty acquired by it on or before July 7, 1970, the section, and Equities was a subsidiary of Signal disposition of which would have been necessary within the meaning of §§ 6158(f)(1) and or appropriate to effectuate § 4 of the BHC Act 1103(a)(1)(B) of the Code and § 2(d) of the BHC if Signal had retained ownership or control of more Act; than 25 per cent of the outstanding voting shares (B) the shares of Bank that Equities sold to of Bank after the effective date of the 1970 Arizona were all or part of the property by reason Amendments to the BHC Act and if Signal were of which Signal controlled (within the meaning thereafter to continue to be a bank holding com of § 2(a) of the BHC Act) a bank or bank holding pany beyond December 31, 1980, which property company; would have been “prohibited property” within the (C) the sale of the shares of Bank was necessary meaning of sections 6158(f)(1) and 1103(c) of the or appropriate to effectuate the policies of the BHC Code.3 Act; and 6. Neither Signal nor any subsidiary of Signal (D) Signal has (before the expiration of the holds any interest in Bank, Arizona, or any sub period prohibited property is permitted under the sidiary of Arizona, or in any other bank or any BHC Act to be held by a bank holding company) company that controls a bank. ceased to be a bank holding company. 7. Neither Arizona nor any subsidiary of Ari This certification is based upon the repre zona, including Bank, holds any interest in Signal sentations made to the Board by Signal and upon or any subsidiary of Signal. the facts set forth above. In the event the Board 8. No officer, director (including honorary or should hereafter determine that facts material to advisory director) or employee with policy-making this certification are otherwise than as represented functions of Signal or any subsidiary of Signal also by Signal, or that Signal has failed to disclose to holds any such position with Arizona or any sub the Board other material facts, it may revoke this sidiary of Arizona, including Bank, or with any certification. other bank or any company that controls a bank. By order of the Board of Governors acting 9. Signal does not control in any manner through its General Counsel, pursuant to delegated the election of a majority of directors, or exercise authority (12 CFR § 265.2(b)(3)), effective May a controlling influence over the management or 25, 1977. policies, of Arizona or any subsidiary of Arizona, including Bank, or of any other bank or company (Signed) Ruth A. Reister, that controls a bank. On the basis of the foregoing [seal] Assistant Secretary of the Board. information, it is hereby certified that: 304 Corporation, (A) at the time of the sale by Equities of the Omaha, Nebraska 462,636 shares of Bank to Arizona, Signal was Prior Certification Pursuant to the a qualified bank holding corporation, within the Bank Holding Company Tax Act of 1976 meaning of subsection (b) of section 1103 of the Code,4 and satisfied the requirements of that sub [Docket No. TCR 76-140] 304 Corporation, Omaha, Nebraska (“304”), has requested a prior certification pursuant to § 3 Had Signal in fact retained control of Bank after December 6158(a) of the Internal Revenue Code (the 31, 1970, it would have been a “company covered in 1970,” as defined in § 2(b) of the BHC Act. As such it would have “Code”), as amended by § 3(a) of the Bank been entitled, by reason of the proviso of § 4(a)(2) of the Holding Company Tax Act of 1976 (the “Tax BHC Act, to engage thereafter in any activities in which it Act”), that its sale of all of the 1,050 issued and had been engaged on June 30, 1968, and was engaged contin uously thereafter. Accordingly, property relating to such activ outstanding shares of common stock of Industrial ities would not have been “prohibited property,” within the Loan and Investment Company, Omaha, Nebraska meaning of §§ 6158(f)(1) and 1103(c) of the Code, unless an election to have all such property so treated was made (“Industrial”), now held by 304 to Industrial pursuant to § 1103(g) of the Code, However, since Signal ceased to control Bank before December 31, 1970, it never became entitled to the benefits of the proviso of § 4(a)(2) of the BHC Act. Signal’s management stated at the time of the divestiture of 4 Although the BHC Act had not been amended to cover its interest in Bank that the divestiture was being accomplished one-bank holding companies as of September 29, 1970, H.R. in anticipation of the enactment of that legislation. Section 6778, which was eventually enacted on December 31, 1970, 2(d)(1)(a) of the Tax Act and § 6158(a) of the Code provide as the “Bank Holding Company Act Amendments of 1970,” that tax relief under the Tax Act is available with respect to had by that date been passed by both the House and Senate. the divesture of bank property after July 7, 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
606 Federal Reserve Bulletin □ June 1977 Investment Company, Omaha, Nebraska, is nec 5. 304 has contracted to sell the shares of essary or appropriate to effectuate § 4 of the Bank Industrial to Industrial Investment Company for Holding Company Act (12 U.S.C. § 1843) (“BHC cash. Prior to the sale of its shares of Industrial, Act”). 304 will purchase from Industrial all of the shares In connection with this request, the following of Bank held by Industrial. information is deemed relevant for the purposes On the basis of the foregoing information, it of issuing the requested certification:1 is hereby certified that: 1. 304 is a corporation organized under the laws (A) 304 is a qualified bank holding corporation of the State of Nebraska on February 18, 1970. within the meaning of § 6158(f)(1) and subsection 2. Industrial is an industrial loan and invest (b) of section 1103 of the Code, and satisfies the ment corporation organized under the laws of the requirements of that subsection; State of Nebraska on August 18, 1938, and en (B) Industrial is “prohibited property” within gaged in the business of an industrial bank. On the meaning of §§ 6158(f)(2) and 1103(c) of the February 14, 1967, Industrial acquired direct Code; and ownership and control of 81.4 per cent of the (C) the sale of Industrial is necessary or appro outstanding voting shares of Mid City Bank, Inc., priate to effectuate § 4 of the BHC Act. Omaha, Nebraska (“Bank”). On March 13, 1970, This certification is based upon the repre 304 acquired direct ownership and control of 1010 sentation made to the Board by 304 and upon the shares, representing all of the outstanding voting facts set forth above. In the event the Board should shares, of Industrial, and thereby acquired indirect hereafter determine that facts material to this cer ownership and control on that date of 81.4 per tification are otherwise than represented by 304 cent of the outstanding voting shares of Bank. or that 304 has failed to disclose to the Board other 3. 304 became a bank holding company on material facts, it may revoke this certification. December 31, 1970, as a result of the 1970 By order of the Board of Governors, acting Amendments to the BHC Act, by virtue of its through its General Counsel, pursuant to delegated indirect ownership and control at that time, authority (12 C.F.R. § 265.2(b)(3)), effective May through Industrial, of more than 25 per cent of 20, 1977. the outstanding voting shares of Bank, and it registered as such with the Board on June 28, (Signed) Theodore E. Allison, 1971.2 304 would have been a bank holding com [seal] Secretary of the Board. pany on July 7, 1970, if the BHC Act Amend ments of 1970 had been in effect on such date, by virtue of its indirect ownership and control, The Wachovia Corporation, through Industrial, of more than 25 per cent of Winston-Salem, North Carolina the outstanding voting shares of Bank. 304 pres Prior Certification Pursuant to the ently indirectly owns and controls 8,866 shares, Bank Holding Company Tax Act of 1976 representing 88.6 per cent of the outstanding vot ing shares, of Bank. [Docket No. TCR 76-132] 4. 304 has not filed an application with the Board, or otherwise obtained the Board’s approval The Wachovia Corporation, Winston-Salem, pursuant to § 4(c)(8) of the BHC Act, to retain North Carolina (“Wachovia”), has requested a the shares of Industrial or engage in the activities prior certification pursuant to § 6158(a) of the carried on by Industrial.3 Internal Revenue Code (the “Code”), as amended by § 3(a) of the Bank Holding Company Tax Act of 1976 (the “Tax Act”), that its proposed sale *This information derives from 304’s correspondence with the Board concerning its request for this certification, 304’s of all the 20,000 issued and outstanding shares Registration Statement filed with the Board pursuant to the of common stock of Financial Courier Corporation BHC Act and other records of the Board. (formerly Wachovia Courier Corporation), Win 2 Industrial registered with the Board as a bank holding company on the same date. ston-Salem, North Carolina (“Courier”), now 3 The operation of an industrial bank is a permissible activity held by Wachovia is necessary or appropriate to for a bank holding company. See 12 CFR § 225.4(a)(2). effectuate § 4 of the Bank Holding Company Act However, in the absence of approval by the Board of an application by 304 to retain Industrial, 304 would have no (12 U.S.C. § 1843 et seq.) (“BHC Act”). Wa authority for retaining Industrial beyond December 31, 1980. chovia has agreed to sell the shares of Courier (Cf. Wachovia Corp., Docket No. TCR 76-132, 42 Fed. Register 24316 (May 13, 1977)). to Pony Express Courier Corp., Atlanta, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 607 (“Pony Express”) for $2,250,000 cash payable 6. Wachovia has contracted to sell the shares on the closing date. of Courier to Pony Express for cash. In connection with this request, the following On the basis of the foregoing information it is information is deemed relevant for purposes of hereby certified that: issuing the requested certification:1 (A) Wachovia is a qualified bank holding cor 1. Wachovia is a corporation organized under poration, within the meaning of § 6158(f)(1) and the laws of the State of North Carolina in Sep subsection (b) of section 1103 of the Code, and tember 1968 to acquire and hold all the shares satisfies the requirements of that subsection; of Wachovia Bank and Trust Company, N.A. (B) Courier is “prohibited property” within the (“Bank”). meaning of §§ 6158(f)(2) and 1103(c) of the Code; 2. On December 31, 1968, Wachovia acquired and ownership and control of all of the outstanding (C) the sale of Courier is necessary or appro voting shares (less directors’ qualifying shares) of priate to effectuate § 4 of the BHC Act. Bank. This certification is based upon the repre 3. Wachovia became a bank holding company sentations made to the Board by Wachovia and on December 31, 1970, as a result of the 1970 upon the facts set forth above. In the event the Amendments to the BHC Act, by virtue of its Board should hereafter determine the facts material ownership and control at that time of more than to this certification are otherwise than as repre 25 per cent of the outstanding voting shares of sented by Wachovia, or that Wachovia has failed Bank, and it registered as such with the Board to disclose to the Board other material facts, it on January 20, 1972. Wachovia would have been may revoke this certification. a bank holding company on July 7, 1970, if the By order of the Board of Governors acting BHC Act Amendments of 1970 had been in effect through its General Counsel, pursuant to delegated on such date, by virtue of its ownership and control authority (12 CFR § 265.2(b)(3)), effective May on that date of more than 25 per cent of the voting 9, 1977. shares of Bank. Wachovia presently owns and controls 100 per cent (less directors’ qualifying shares) of the outstanding voting shares of Bank. (Signed) Theodore E. Allison, 4. Courier was organized in May 1969 as a [seal] Secretary of the Board. wholly-owned subsidiary of Wachovia to engage in the business of providing courier service for transporting financial documents and data process ing material. Such services are currently per formed by it for Bank, its correspondent banks, customers of Bank’s data processing subsidiary and the Federal Reserve Bank of Richmond. Wa Board of Governors of the Federal Reserve System, 516 F.2d 1229 (D.C. Cir. 1975). Under the Board’s present procedures, chovia presently owns and controls the 20,000 however, the question whether, or to what extent, Wachovia issued and outstanding shares of common stock would be permitted to retain these activities would not be of Courier, all of which it acquired before July determinable unless and until Wachovia filed an application for permission to retain the activities. In passing upon such 7, 1970. an application the Board would be required to apply the second 5. Wachovia has not filed an application with test set forth in § 4(c)(8) and to determine whether the per the Board, or otherwise obtained the Board’s ap formance of these activities by a subsidiary of Wachovia “can reasonably be expected to produce benefits to the public, such proval, pursuant to § 4(c)(8) of the BHC Act to as greater convenience, increased competition, or gains in retain the shares of Courier or engage in the efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair compe activities carried on by Courier.2 tition, conflicts of interest, or unsound banking practices.” In the absence of favorable action on such an application Wacho via would have no authority for retaining Courier beyond December 31, 1980, if it continued to be a bank holding company beyond that date. The legislative history of the Tax 1This information derives from Wachovia’s correspondence Act does not indicate a Congressional intent that companies with the Board concerning its request for this certification, subject to such a divestiture requirement exhaust the possi Wachovia’s Registration Statement filed with the Board pur bilities for retaining the activity before being eligible for tax suant to the BHC Act and other records of the Board. relief, and in view of the paramount purpose of § 4 of the 2 Although Wachovia has not sought Board approval to retain BHC Act, that “banking and commerce should remain sepa Courier, some or all of Courier’s activities may be among those rate,” S. Rep. No. 1084, 91st Cong., 2d Sess. 12 (1970), activities that the Board has previously determined to be closely it would appear that the disposition of a potentially permissible related to banking, under § 4(c)(8). See 12 CFR §§ activity, without first seeking approval for retention, is at least 225.4(a)(ll) and 225.129; National Courier Association v. “appropriate” to effectuate § 4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
608 Federal Reserve Bulletin □ June 1977 Clinton Cable TV Co., Inc., same family, or their spouses, who are lineal Clinton, Indiana descendants of common ancestors. Accordingly, Clinton has been exempt from the prohibitions of Prior Certification Pursuant to the § 4 of the BHC Act by virtue of clause (ii) of Bank Holding Company Tax Act of 1976 § 4(c) of the BHC Act. [Docket No. TCR 76-131] 5. Clinton holds property acquired by it on or Clinton Cable TV Co., Inc., Clinton, Indiana before July 7, 1970, the disposition of which (“Clinton”), has requested a prior certification would, but for the proviso of § 4(a)(2) and clause pursuant to § 1101(b) of the Internal Revenue (ii) of § 4(c) of the BHC Act, be necessary or Code (the “Code”), as amended by § 2(a) of the appropriate to effectuate § 4 of the BHC Act if Bank Holding Company Tax Act of 1976 (the Clinton were to remain a bank holding company “Tax Act”), that its proposed divestiture of all beyond December 31, 1980, and which property of the 10,002 shares of Dulaney National Bank would, but such proviso and such clause, be of Marshall, Marshall, Illinois (“Bank”), pres “prohibited property” within the meaning of § ently held by Clinton, through the pro rata distri 1103(c) of the Code. Sections 1103(g) and 1103(h) bution of such shares to the common shareholders of the Code provide that any bank holding com of Clinton, is necessary or appropriate to effectuate pany may elect, for purposes of Part VIII of the policies of the Bank Holding Company Act subchapter 0 of chapter 1 of the Code, to have (12 U.S.C. § 1841 et seq.) (“BHC Act”). the determination whether property is ‘ ‘prohibited In connection with this request, the following property” or is property eligible to be distributed information is deemed relevant, for purposes of without recognition of gain under § 1101(b)(1) of issuing the requested certification:1 the Code, made under the BHC Act as if such Act did not contain, respectively, the proviso of 1. Clinton is a corporation organized under the § 4(a)(2) thereof and clause (ii) of § 4(c) thereof. laws of the State of Indiana on January 25, 1965. Clinton has represented that it will make such an 2. On February 16, 1968, Clinton acquired election.2 ownership and control of 5,376 shares, repre On the basis of the foregoing information, it senting 53.76 per cent of the outstanding voting is hereby certified that: shares of Bank. (A) Clinton is a qualified bank holding corpora 3. Clinton became a bank holding company on tion, within the meaning of subsection (b) of December 31, 1970, as a result of the 1970 section 1103 of the Code, and satisfies the re Amendments to the BHC Act, by virtue of its quirements of that subsection; ownership and control at that time of more than (B) the shares of Bank that Clinton proposes 25 per cent of the outstanding voting shares of to distribute to its shareholders are all or part of Bank, and it registered as such with the Board the property by reason of which Clinton controls on July 8, 1971. Clinton would have been a bank (within the meaning of § 2(a) of the BHC Act) holding company on July 7, 1970, if the BHC a bank or bank holding company; and Act Amendments of 1970 had been in effect on (C) the distribution of such shares is necessary such date, by virtue of its ownership and control or appropriate to effectuate the policies of the BHC on such date of more than 25 per cent of the Act. outstanding voting shares of Bank. Clinton pres This certification is based upon the repre ently owns and controls 10,002 shares, repre sentations made to the Board by Clinton and upon senting 50.01 per cent of the outstanding voting the facts set forth above, and is conditioned upon shares, of Bank. Clinton’s making the elections required by §§ 4. More than 85 per centum of the voting stock 1103(g) and 1103(h) of the Code at such time and of Clinton was collectively owned on June 30, in such manner as the Secretary of the Treasury 1968, and has been so owned continuously there or his delegate may by regulation prescribe. In after, directly or indirectly, by members of the the event that the Board should hereafter determine 1This information derives from Clinton’s correspondence 2 Sections 1103(g) and (h) require that an election thereunder with the Board concerning its request for this certification, be made “at such time and in such manner as the Secretary Clinton’s registration statement filed with the Board pursuant [of the Treasury] or his delegate may by regulations prescribe. ’ ’ to the BHC Act, and other records of the Board. As of this date no such regulations have been promulgated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 609 that facts material to this certification are otherwise through its General Counsel, pursuant to delegated than as represented by Clinton, or that Clinton has authority (12 CFR § 265.2(b)(3)), effective May failed to disclose to the Board other material facts, 31, 1977. it may revoke this certification. (Signed) Ruth A. Reister, By order of the Board of Governors, acting [seal] Assistant Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT B y t h e B o a r d o f G o v er n o r s During May 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 Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action Federal (effective Register Applicant Bank(s) date) citation Alabama Bancorporation, The Farmers & Merchants 5/11/77 42 F.R. 25373 Birmingham, Alabama Bank, Ashford, 5/17/77 Alabama Peoples Banking Cor The First National 5/2/77 42 F.R. 23546 poration, Bay City, Bank of Lapeer, 5/9/77 Michigan Lapeer, Michigan Washington Bancorpora The National Bank of 5/11/77 42 F.R. 25378 tion, Washington, Iowa Washington, Wash 5/17/77 ington, Iowa Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation SEAFIRST CORPORATION, Seafirst Life Insur 5/2/77 42 F.R. 23547 Seattle, Washington ance Company, 5/9/77 Phoenix, Arizona Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
610 Federal Reserve Bulletin □ June 1977 Sections 3 and 4 Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation McCune Banc McCune State Sale of Kansas City 5/5/77 42 F.R. 23878 shares, Inc., Bank, McCune, insurance 5/11/77 McCune, Kansas related Kansas to exten sions of credit By Federal Reserve Banks During May 1977, applications were approved by the Federal Reserve Banks as listed below. The orders have been published in the Federal Register, and copies are available upon request to the Reserve Banks. Section 3 Federal Reserve Effective Register Applicant Bank(s) Bank date citation Pacesetter Financial First Security Chicago 5/17/77 42 F.R. 27294 Corporation, Grand Bank of Grand 5/27/77 Haven, Michigan Blanc, Grand Blanc, Michigan PENDING CASES INVOLVING THE BOARD OF GOVERNORS* BankAmerica Corporation v. Board of Gover Farmers State Bank of Crosby v. Board of nors, filed May 1977, U.S.D.C. for the Northern Governors, filed January 1977, U.S.C.A. for the District of California. Eighth Circuit. BankAmerica Corporation v. Board of Gover National Automobile Dealers Association, Inc. nors, filed May 1977, U.S.C.A. for the Ninth v. Board of Governors, filed November 1976, Circuit. U.S.C.A. for the District of Columbia. First Security Corporation v. Board of Gover First Security Corporation v. Board of Gover nors, filed March 1977, U.S.C.A. for the Tenth nors, filed August 1976, U.S.C.A. for the Tenth Circuit. Circuit. First State Bank of Clute, Texas, etal.\. Board *This list of pending cases does not include suits against of Governors, filed July 1976, U.S.C.A. for the the Federal Reserve Banks in which the Board of Governors is not named a party. Fifth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 611 Central Wisconsin Bankshares, Inc. v. Board of Insurance Agents, Inc. v. Board of Governors, of Governors, filed June 1976, U.S.C.A. for the filed August 1975, actions consolidated in Seventh Circuit. U.S.C.A. for the Fifth Circuit. National Urban League, et al. v. Oj^ice 0/ the t tDavidR. Merrill, etal.v. Federal Open Market Comptroller of the Currency, et al., filed April Committee of the Federal Reserve System, filed 1976, U.S.D.C. for the District of Columbia Cir May 1975, U.S.D.C. for the District of Columbia, cuit. appeal pending, U.S.D.A. for the District of Co Farmers & Merchants Bank of Las Cruces, lumbia. New Mexico v. Board of Governors, filed April Louis J. Roussel v. Board of Governors, filed 1976, U.S.C.A. for the District of Columbia Cir April 1975, U.S.D.C. for the Eastern District of cuit. Louisiana. Grandview Bank & Trust Company v. Board Georgia Association of Insurance Agents, et al. of Governors, filed March 1976, U.S.C. A. for the v. Board of Governors, filed October 1974, Eighth Circuit. U.S.C.A. for the Fifth Circuit. Association of Bank Travel Bureaus, Inc. v. Alabama Association of Insurance Agents, et Board of Governors, filed February 1976, al. v. Board of Governors, filed July 1974, U.S.C.A. for the Seventh Circuit. U.S.C.A. for the Fifth Circuit, Memphis Trust Company v. Board of Gover tConsumers Union of the United States, Inc., nors, filed February 1976, U.S.D.C. for the et al. v. Board of Governors, filed September Western District of Tennessee. 1973, U.S.D.C. for the District of Columbia. First Lincolnwood Corporation v. Board of Bankers Trust New York Corporation v. Board Governors, filed February 1976, U.S.C.A. for the of Governors, filed May 1973, U.S.C.A. for the Seventh Circuit. Second Circuit. Roberts Farms, Inc. v. Comptroller of the Cur rency, et al., filed November 1975, U.S.D.C. for the Southern District of California. fDecisions have been handed down in these cases, subject to appeals noted. Florida Association of Insurance Agents, Inc. $The Board of Governors is not named as a party in this v. Board of Governors, and National Association action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
613 Announcements REGULATION B: institutions with assets of more than $10 million and an office in an SMSA to disclose publicly the New Provision geographic areas where they are making residential The Board of Governors of the Federal Reserve mortgage and home improvement loans. Thus, System has noted that a provision of Regulation with the creation of five new SMSA’s, additional B (Equal Credit Opportunity) regarding the credit depositary institutions have become subject to the histories of married persons became effective June act and Regulation C. The Office of Management 1, 1977. and Budget designates SMSA’s. In general, the regulation gives married persons Any institution that has become subject to the the right to have credit information about them disclosure requirements of the act and regulation reported in the names of both the wife and the by virtue of these SMSA additions should prepare husband if both use or are responsible for the a disclosure statement within 90 days (by Sep account. This is meant to assure that individual tember 12, 1977). However, institutions in the credit histories will be available for all married affected areas that were subject to the Home persons. Previously, most credit accounts have Mortgage Disclosure requirements prior to the been kept only in the name of the husband and designation of the new SMSA’s need not modify thus only the husband developed a credit history. their disclosures to take account of the additions Under the regulation most open-end credit bill until the beginning of their next fiscal year. For ing statements (such as credit-card billings) mailed further information regarding its disclosure re during June, July, August, and September will sponsibilities, a depositary institution should con contain a notice called “Credit History for Married tact its Federal supervisory authority. Persons.” Married consumers who wish to have individual credit histories must sign and mail the notice back once to each creditor who sends such FOREIGN BANK LEGISLATION a notice. Either spouse’s signature on the form is sufficient. The Board of Governors has informed congres sional leaders concerned with bank regulation that it strongly supports the International Banking Act REGULATION C: of 1977 that has been introduced in the House of Representatives. Designation of New SMSA’s The Board said such legislation is needed be The Board of Governors noted on June 14, 1977, cause of the recent rapid growth of foreign bank that five new standard metropolitan statistical areas operations in this country, the increasingly impor (SMSA’s) have been designated and that this af tant share of the domestic market that is controlled fects banks and thrift institutions subject to the by foreign banks, and the lack of any national Home Mortgage Disclosure Act in those areas. regulation and supervision of these operations. The new SMSA’s are as follows: Bradenton, In a letter to the congressional leaders, the Florida—Manatee County; Grand Forks, North Board said “we are primarily concerned about the Dakota-Minnesota—Grand Forks County, North absence of a national policy and regulatory frame Dakota, and Polk County, Minnesota; Kokomo, work in this increasingly important area and its Indiana—Howard and Tipton Counties; attendant ramifications for the formulation of Lawrence, Kansas—Douglas County; Panama monetary policy, the development of a sound and City, Florida^Bay County. competitive banking system, and the coordination The Home Mortgage Disclosure Act and the of policies with national monetary and regulatory related Federal Reserve Regulation C went into authorities abroad.” The letter was accompanied effect June 28, 1976. They require depositary by proposals for a number of amendments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
614 Federal Reserve Bulletin □ June 1977 Since 1974 the Board has backed foreign bank NEW EQUAL CREDIT legislation aimed at national treatment of foreign OPPORTUNITY PAMPHLET banks operating here, that is, to place foreign banks under the same type of Federal banking and The Board of Governors has issued a new con monetary regulation that affects comparable do sumer pamphlet entitled The Equal Credit Oppor mestic banks. tunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Inciden tal Credit. The pamphlet defines a creditor and incidental credit under the Equal Credit Opportu nity Act. A professional or small businessman may ANNUAL REPORT: Publication be subject to the rules covering incidental credit The Sixty-Third Annual Report of the Board of that are described in this pamphlet. Governors of the Federal Reserve System, cover Copies of the new pamphlet may be obtained ing operations for the calendar year 1976, is from any Federal Reserve Bank or from the Board available for distribution. Copies may be obtained of Governors of the Federal Reserve System, upon request to Publications Services, Division of Washington, D.C. 20551. Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. CHANGES IN BOARD STAFF Note that on page 498 of the Annual Report, listing the Members of the Board, the State repre The Board of Governors has announced the retire sented by Vice Chairman Gardner should be ment, effective June 1, 1977, of James B. Eckert, Pennsylvania (not Massachusetts) and the State Senior Research Division officer in the Division represented by Governor Partee should be Virginia of Research and Statistics, and also the resignation (not Ohio). of Peter E. Barna, Assistant Director in the Divi sion of Banking Supervision and Regulation, ef fective June 3, 1977. DOMESTIC FINANCE COMPANIES: Major Assets and Liabilities SYSTEM MEMBERSHIP: Admission of State Banks A new table providing annual and quarterly data on the major assets and liabilities of domestic finance The following State banks were admitted to mem companies appears on page A39 of this issue of the bership in the Federal Reserve System during the Bulletin. Annual data are presented for 1972 period May 16 through June 15, 1977: through 1974; quarterly data cover the third quarter Alabama 1975 to the first quarter 1977. Quarterly data back to Alabama............................... Citizens Bank and June 1970 will be shown in the Board’s forthcoming Trust Company Annual Statistical Digest, 1972-1976. Another new table on the same page provides Colorado monthly business credit component data for the Colorado City ............Greenhorn Valley Bank most recent 3 months available. Historical data for Oklahoma these series back to June 1970 may be obtained from Bixby .................................The Bank of Bixby the Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Vermont Reserve System, Washington, D.C. 20551. Stowe .....................Mountain Trust Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
615 Industrial Production Released for publication June 15 in May. Output of durable goods materials rose sharply, particularly iron and steel. Production of Industrial production in May increased by an esti nondurable goods materials increased moderately. mated 1.1 per cent, following gains of 0.8 per cent and 1.5 per cent in April and March, respec Seasonally adjusted, ratio scale, 1967=100 tively. Increases in output in May were widespread among products and materials, but auto production edged off for the second successive month. At a level of 137.8 per cent of the 1967 average, industrial production in May was 3.5 per cent above the level in February and 6.3 per cent higher than a year earlier. Output of both durable and nondurable con sumer goods increased further in May. Auto as semblies—at a 9.2-million-unit annual rate— declined 1.4 per cent from the April index level, but production of other consumer durable goods, particularly home goods, increased sharply. Pro duction of business equipment increased by 1.8 per cent, following a gain of 1.6 per cent now indicated for April; output of business equipment in May was 4.3 per cent above that in February and almost 11 per cent higher than a year earlier. Output of construction supplies also continued to advance strongly last month. F.R. indexes, seasonally adjusted. Latest figures: May. Production of materials increased 1.2 per cent *Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 Per cent changes from— Industrial production 1977 Feb. Mar. Apr. p May* Month ago Year ago Q4 to Ql Total ...................................................................................... 133.2 135.2 136.3 137.8 1.1 6.3 1.3 Products, total .............................................................................. 133.9 135.1 135.9 137.2 1.0 6.4 1.7 Final products .......................................................................... 131.8 133.3 134.0 135.2 .9 6.2 1.7 Consumer goods ................................................................ 141.0 143.0 143.0 143.6 .4 4.5 1.5 Durable goods .............................................................. 146.1 152.3 152.4 152.8 .3 6.7 2.1 Nondurable goods ............................... ................... 138.9 139.1 139.5 140.0 .4 3.6 1.2 Business equipment ........................................................ 143.1 144.4 146.7 149.3 1.8 10.9 2.4 Intermediate products .......................................................... 141.8 141.9 143.0 144.8 1.3 7.3 2.0 Construction supplies ...................................................... 135.7 136.4 137.8 139.6 1.3 6.6 .7 Materials ......................................................................................... 132.4 135.4 136.8 138.5 1.2 6.0 .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 Factors affecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans Policy Instruments A25 Gross demand deposits of individuals, partnerships, and corporations A8 Federal Reserve Bank interest rates A9 Member bank reserve requirements Financial Markets A10 Maximum interest rates payable on time and savings deposits at Federally A25 Commercial paper and bankers insured institutions acceptances outstanding A10 Margin requirements 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 Federal Reserve Banks A27 Interest rates in money and capital 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 and Federal Finance rate of turnover A30 Federal fiscal and financing operations A14 Money stock measures and components A31 U.S. Budget receipts and outlays A15 Aggregate reserves and deposits of A32 Federal debt subject to statutory member banks limitation A15 Loans and investments of all A32 Gross public debt of U.S. Treasury— commercial banks Types and ownership A33 U.S. Government marketable Commercial Bank Assets and Liabilities securities—Ownership, by maturity A16 Last-Wednesday-of-month series A34 U.S. Government securities dealers— A17 Call-date series Transactions, positions, and financing A18 Detailed balance sheet, Dec. 31, 1976 A35 Federal and Federally sponsored credit agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A2 Federal Reserve Bulletin □ June 1977 Securities Markets and INTERNATIONAL STATISTICS Corporate Finance A54 U.S. international transactions— A36 New security issues—State and local Summary government and corporate A55 U.S. foreign trade A37 Corporate securities—Net change in A55 U.S. reserve assets amounts outstanding A56 Selected U.S. liabilities to foreigners A37 Open-end investment companies—Net and to foreign official institutions sales and asset position A38 Corporate profits and their distribution Reported by Banks in the United States: A38 Nonfinancial corporations—Assets and A57 Short-term liabilities to foreigners liabilities A59 Long-term liabilities to foreigners A38 Business expenditures on new plant A60 Short-term claims on foreigners and equipment A61 Long-term claims on foreigners A39 Domestic finance companies—Assets and liabilities; business credit 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 to A66 Short-term liabilities to and claims on credit markets foreigners A67 Long-term liabilities to and claims on DOMESTIC NONFINANCIAL STATISTICS foreigners A46 Nonfinancial business activity— Interest and Exchange Rates Selected measures A46 Output, capacity, and capacity A68 Discount rates of foreign central banks utilization A68 Foreign short-term interest rates A47 Labor force, employment, and A68 Foreign exchange rates unemployment A48 Industrial production A69 GUIDE TO TABULAR A50 Housing and construction PRESENTATION AND A51 Consumer and wholesale prices STATISTICAL RELEASES A52 Gross national product and income A70 Commercial bank assets and liabilities: A53 Personal income and saving Detailed balance sheet, Sept. 30, 1976 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 1977 1977 Item Q2 Q3 Q4 Ql Jan. Feb. Mar. Apr. May Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 Member bank reserves 1 Total............................................................................... 0.6 2.7 4.4 2.7 10.9 -13.1 -3.1 13.0 2 Required........................................................................ 1.1 2.4 4.0 3.0 11.3 -10.9 -3.7 13.9 3 Nonborrowed............................................................... 0.4 2.6 4.8 2.6 10.4 -13.3 -4.3 14.1 Concepts of money 1 4 M-l................................................................................. 8.2 4.4 6.8 4.8 5.8 0.8 6.1 19.7 5 M-2................................................................................. 10.5 9.1 12.2 9.4 9.3 6.6 8.2 13.0 6 M-3................................................................................. 11.8 11.4 14.2 11.0 11.2 8.7 9.2 12.3 Time and savings deposits Commercial banks: 7 Total........................................................................... 5.4 7.0 11.5 11.3 9.8 9.7 5.8 6.0 8 Other than large CD’s............................................ 12.4 12.8 16.3 12.7 11.8 10.6 9.7 8.5 9 Thrift institutions 2..................................................... 13.8 14.8 17.3 13.4 14.0 11.7 r10.9 10.5 10 Total loans and investments at commercial banks 3 *•10.3 r7.0 r10.7 '8.8 *•3.7 14.7 '10.0 14.0 Interest rates (levels, per cent per annum) Short-term rates 11 Federal funds 4......................................................................... 5.19 5.28 4.88 4.66 4.61 4.68 4.69 4.73 5.35 12 Treasury bills (3-month market yield) 5............................. 5.16 5.15 4.67 4.63 4.62 4.67 4.60 4.54 4.96 13 Commercial paper (90- to 119-day) 6.................................. 5.45 5.41 4.91 4.74 4.72 4.76 4.75 4.75 5.26 14 Federal Reserve discount ?.................................................... 5.50 5.50 5.39 5.25 5.25 5.25 5.25 5.25 Long-term rates Bonds: 15 U.S. Govt. 8........................................................................... 8.01 7.90 7.54 7.62 7.48 7.64 7.74 7.67 7.74 16 Aaa utility (new issue) 9..................................................... 8.69 8.48 8.15 8.17 8.08 8.22 8.25 8.26 8.33 17 State and local government 10.......................................... 6.78 6.64 6.18 5.88 5.87 5.89 5.89 5.73 5.75 18 Conventional mortgages 11................................................... 8.98 9.03 8.95 8.82 8.80 8.80 8.85 8.90 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. negotiable 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 10 Bond Buyer series for 20 issues of mixed quality. unions. 11 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 Financial Statistics □ June 1977 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily Weekly averages of daily figures for weeks ending— figures Factors 1977 1977 Mar. Apr. Mayp Apr. 13 Apr. 20 Apr. 27 May 4 May 11 May 18p May 25p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding... 108,085 108,558 112,765 105,822 108,999 111,292 115,390 114,342 113,055 111,762 2 U.S. Govt, securities1..................... 95,310 95,316 99,023 92,673 95,740 97,850 100,544 99,956 99,334 98,491 3 Bought outright......................... 94,313 94,534 97,000 92,311 95,290 96,123 97,391 97,310 97,263 96,707 4 Held under repurchase agree ment ......................................... 997 782 2,023 362 450 1,727 3,153 2,646 2,071 1,784 5 Federal agency securities............. 6,782 6,813 7,259 6,752 6,748 6,846 7,288 7,240 7,357 7,275 6 Bought outright.......................... 6,750 6,766 7,077 6,731 6,731 6,731 7,077 7,077 7,077 7,077 7 Held under repurchase agree ment ......................................... 32 47 182 21 17 115 211 163 280 198 8 Acceptances.................................... 289 284 489 165 164 419 878 646 520 409 9 Loans............................................... 110 73 200 38 29 99 215 156 126 311 10 Float................................................. 2,833 2,992 2,844 3,261 3,221 2,904 3,205 3,130 2,711 2,719 11 Other Federal Reserve assets 2,761 3,080 2,950 2,933 3,097 3,174 3,260 3,214 3,007 2,556 12 Gold stock.......................................... 11,646 11,636 11,632 11,636 11,636 11,636 11,636 11,636 11,633 11,629 13 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 14 Treasury currency outstanding. 10,966 11,010 11,058 11,008 11,014 11,029 11,013 11,048 11,055 11,069 ABSORBING RESERVE FUNDS 15 Currency in circulation..................... 92,831 94,295 94,969 94,753 94,657 94,108 94,233 94,929 95,152 94,888 16 Treasury cash holdings..................... 494 452 443 450 448 447 442 442 440 438 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury.......................................... 8,577 7,369 10,997 5,279 6,231 9,606 13,462 13,273 10,862 10,505 18 Foreign............................................. 271 294 322 309 313 272 296 359 365 263 19 Other2.............................................. 669 633 559 650 622 634 592 532 525 548 20 Other F.R. liabilities and capital... 3,206 3,266 3,324 3,113 3,295 3,343 3,427 3,165 3,281 3,375 21 Member bank reserves with F.R. Banks............................................... 25,849 26,096 26,041 25,112 27,284 26,746 26,786 25,527 26,318 25,643 End-of-month figures Wednesday figures 1977 1977 Mar. Apr. Mayp Apr. 13 Apr. 20 Apr. 27 May 4 May 11 May 18^ May 25p SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding. . . 109,648 114,406 110,817 107,915 113,087 114,925 118,793 115,404 112,126 109,302 23 U.S. Govt, securities1..................... 95,987 99,967 97,394 94,329 98,440 100,240 102,853 100,878 98,162 95.906 24 Bought outright........................ 95,547 97,993 96,560 91,794 95,292 97,045 96,763 97,506 97,043 95.906 25 Held under repurchase agree ment .................:..................... 440 1,974 834 2,535 3,148 3,195 6,090 3,372 1,119 26 Federal agency securities............... 6,785 7,201 7,087 6,880 6,849 6,900 7,504 7,160 7,353 7.077 27 Bought outright......................... 6,731 7,077 7,077 6,731 6,731 6,731 7,077 7,077 7,077 7.077 28 Held under repurchase agree ment ......................................... 54 124 10 149 118 169 427 83 276 29 Acceptances.................................... 280 881 108 320 361 591 1,017 672 358 60 30 Loans............................................... 271 379 398 42 59 487 122 381 211 449 31 Float................................................. 3,286 2,735 2,974 3,204 4,165 3,486 4,095 3,035 3,288 3,122 32 Other Federal Reserve assets. . . 2,859 3,243 2,856 3,140 3,213 3,221 3,202 3,278 2,754 2,688 33 Gold stock................................ 11,636 11,636 11,629 11,636 11,636 11,636 11,636 11,636 11,629 11,629 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. 10,939 10,984 11,073 11,012 11,017 11,029 11,037 11,050 11,058 11,073 ABSORBING RESERVE FUNDS 36 Currency in circulation......... 93,383 93,960 95,637 95,119 94,548 94,345 94,765 95,417 95,223 95,242 37 Treasury cash holdings.......... 451 439 450 452 443 444 443 441 440 433 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury................................... 7,150 13,628 5,838 4,790 11,301 11,323 13,699 12,193 10,848 9,044 39 Foreign...................................... 349 305 436 252 280 266 259 234 279 274 40 Other2........................................ 637 591 831 631 740 662 544 424 536 713 41 Other F.R. liabilities and capital. . 3,457 3,528 3,539 3,153 3,283 3,410 3,121 3,219 3,296 3,425 42 Member bank reserves with F.R. Banks.................................... 27,814 25,773 27,988 27,367 26,345 28,339 29,835 27,362 25,392 24,073 1 Includes securities loaned—fully guaranteed by U.S. Govt, securities voluntarily held with member banks and redeposited in full with Federal pledged with F.R. Banks—and excludes (if any) securities sold and sched Reserve Banks. ule 2 d I t n o c l b u e d e b s o u c g e h r t t a b in a ck d e u p n o d s e i r t s m a o t f c h f e o d r e s i a g l n e- -o p w ur n c e h d a se b a tr n a k n i s n a g c ti i o n n s s t . itutions 1.1N2.ote.—For amounts of currency and coin held as reserves, see Table Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Member Banks AS .12 RESERVES AND BORROWINGS Member Banks Millions of dollars Monthly averages of daily figures Reserve classification 1975 1977 Dec. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May2* All member banks Reserves: At F.R. Banks..................... 27,215 25,708 26,127 26,458 26,430 27,229 25,725 25,849 26,096 26,041 Currency and coin............. 7,773 8,113 8,025 8,180 8,548 8,913 8,326 8,134 8,368 8,616 Total heldi............................ 34,989 33,979 34,305 34,797 35,136 36,290 34,199 34,135 34,613 34,807 Required........................... 34,727 33,692 34,116 34,433 34,964 35,796 34,234 33,870 34,602 34,472 Excess1.............................. 262 287 189 364 172 494 -35 265 11 335 Borrowings at F.R. Banks:2 Total...................................... 127 75 66 84 62 61 79 110 73 200 Seasonal................................ 13 31 32 21 12 12 13 14 30 Large banks in New York City 8 Reserves held............................ 6,812 6,372 6,374 6,589 6,520 7,076 6,442 6,331 6,264 6,233 9 Required............................... 6,748 6,308 6,346 6,485 6,602 6,948 6,537 6,259 6,351 6,279 1 1 1 0 Bo E rr x o c w es i s n . g .. s .. 2 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 63 4 2 6 2 4 28 1 3 0 6 4 -8 1 2 5 128 6 -9 4 5 7 7 4 2 4 -8 1 7 6 -4 1 6 8 Large banks in Chicago 12 Reserves held............... 1,740 1,615 1,648 1,621 1,632 1,731 1.624 1,610 1,629 1,621 1 1 3 4 E R x eq ce u s i s r . e .. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, - 7 1 5 8 8 1,6 - 1 2 7 1,63 1 5 3 1,60 1 2 9 1,6 - 4 9 1 1,69 3 8 3 1.624 1,6 - 1 1 1 1,6 - 3 5 4 1, - 6 2 4 0 1 15 Borrowings 2................. 3 3 4 2 3 4 Other large banks 16 Reserves held. .. 13,249 12,584 12,704 12,889 13,117 13,556 12,683 12,779 13,090 12,973 1 18 7 R Ex eq ce u s i s r . e .. d .. . . . . . . . . . . . . . . . . 13,16 8 0 9 12,52 6 1 3 12,7 - 0 2 6 12,80 8 2 7 13,05 6 3 4 13,4 1 2 2 7 9 12, - 7 8 6 2 5 12,70 7 5 4 13, - 1 2 1 0 0 12, - 9 2 9 1 4 19 Borrowings2.... 26 3 17 7 14 25 4 29 23 64 All other banks 20 Reserves held. 13,188 13,408 13,579 13,698 13,867 13,927 13,450 13,415 13,630 13,708 21 Required... 13,061 13,246 13,429 13,544 13,668 13,723 13,308 13,295 13,507 13,558 22 Excess......... 127 162 150 154 199 204 142 120 123 150 23 Borrowings2.. 38 47 46 41 29 28 28 34 34 114 Weekly averages of daily figures for weeks ending- 1977 Mar. 23 Mar. 30 April 6 April 13 Apr. 20 Apr. 27 May 4 May 11 May 18p May 25 p A11 member banks Reserves: At F.R. Banks..................... 26,282 26,296 25,654 25,112 27,284 26,746 26,786 25,527 26,318 25,643 Currency and coin............. 7,492 8,290 8,477 8,721 7,724 8,341 8,892 8,998 8,554 8,164 Total held1........................... 33,921 34,737 34,264 33,988 35,162 35,240 35,831 34,678 35,023 33,956 Required........................... 33,844 34,404 34,008 33,714 35,128 35,076 35,529 34,632 34,750 33,799 Excess1.............................. 77 333 256 274 34 164 302 46 273 157 Borrowings at F.R. Banks:2 S T e o a t s a o l. n .. a .. l .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1 8 3 5 1 8 4 6 1 5 4 3 1 8 2 2 1 9 4 9 15 9 21 1 5 9 1 2 5 1 6 1 2 2 8 6 31 3 1 4 Large banks in New York City 31 Reserves held............................ 6,213 6,485 6,344 6,237 6,567 6,259 6,516 6,299 6,372 5,922 32 Required............................... 6,233 6,401 6,282 6,176 6,597 6,290 6,467 6,307 6,433 6,034 33 Excess.................................... -20 84 61 61 -30 -31 49 -8 -61 -112 34 Borrowings2............................. 167 29 34 54 25 27 Large banks in Chicago 35 Reserves held............... 1,560 1,659 1,621 1,616 1,669 1,629 1,732 7,595 7,709 1,543 3 37 6 E R x eq ce u s i s r . e .. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, - 5 1 7 1 1 1,63 2 5 4 1,59 2 4 7 1,59 2 4 2 1, - 6 2 9 6 5 1,621 8 1,69 3 9 3 1, - 6 3 2 0 5 1, - 7 1 2 1 0 1, - 5 2 6 6 9 38 Borrowings2................. 14 1 1 18 Other large banks 39 Reserves held... 12,701 13,022 12,802 12,814 13,304 13,407 13,526 13,093 12,957 12,772 40 Required........ 12,659 12,950 12,799 12,788 13,316 13,339 13,470 13,140 13,107 12,673 41 Excess............. 42 72 3 26 -12 68 56 -47 -150 99 42 Borrowings2.... 117 11 1 11 4 27 88 51 33 115 All other banks 43 Reserves held. 13,447 13,571 13,498 13,321 13,622 13,945 14,057 13,691 13,661 13,610 44 Required... 13,381 13,418 13,333 13,156 13,520 13,826 13,893 13,560 13,490 13,523 45 Excess......... 66 153 165 165 102 119 164 131 171 87 46 Borrowings2.. 54 33 34 27 25 37 73 80 75 169 i 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 Financial Statistics □ June 1977 1.13 FEDERAL FUNDS TRANSACTIONS of Money Market Banks Millions of dollars, except as noted 1977, week ending Wednesday— Type Mar. 30 April 6 April 13 April 20 April 27 May 4 May 11 May 18 May 25 Total, 46 banks Basic reserve position 1 Excess reserves1............................ 126 187 112 -13 3 142 -20 64 54 Less: 2 Borrowings at F.R. Banks... 14 29 11 4 49 107 31 18 62 3 Net interbank Federal funds transactions....................... 14,363 17,149 21,273 18,670 14,593 15,076 18,142 16,727 14,942 Equals : Net surplus, or deficit (—): 4 Amount...................................... -14,251 -16,990 -21,172 -18,688 -14,639 -15,042 -18,193 -16,681 -14,949 5 Per cent of average required reserves............................... 95.7 116.0 144.9 121.2 97.3 98.1 121.7 110.1 104.5 Interbank Federal funds transactions Gross transactions: Purchases....................................... 22,819 24,728 27,297 26,572 23,441 24,040 25,762 24,063 22,870 Sales................................................. 8,457 7,580 6,024 7,902 8,848 8,963 7,620 7,336 7,929 Two-way transactions2................... 5,338 5,268 5,074 5,282 5,463 5,589 5,026 5,227 5,619 Net transactions: Purchases of net buying banks.. 17,481 19,460 22,223 21,290 17,978 18,450 20,736 18,836 17,251 Sales of net selling banks............ 3,118 2,311 951 2,260 3,384 3,374 2,594 2,110 2,309 Related transactions with U.S. Govt, securities dealers 11 Loans to dealers3................... 2,469 4,226 5,497 3,632 2,468 2,899 2,914 2,857 2,930 12 Borrowing from dealers4... 1,895 1,512 1,273 1,248 1,552 2,029 2,091 2,327 2,770 13 Net loans................................. 574 2,714 4,224 2,384 915 870 822 530 160 8 banks in New York City Basic reserve position 14 Excess reserves1............................ 51 101 62 15 -20 29 5 30 -23 15 Le B ss o : rrowings at F.R. Banks... 29 34 54 25 21 16 Net interbank Federal funds transactions....................... 4,984 5,724 7,508 7,135 5,464 5,815 7,329 5,656 5,088 Equals : Net surplus, or deficit (—): 17 Amount...................................... -4,933 -5,652 -7,445 -7,119 -5,518 -5,840 -7,349 -5,627 -5,133 18 Per cent of average required reserves.............................. 84.6 98.9 132.2 118.4 96.6 99.2 128.2 96.0 93.9 Interbank Federal funds transactions Gross transactions: Purchases............................................... 6,172 6,515 8,156 8,028 6,663 6,951 8,249 7,083 6,659 Sales................................................. 1,188 791 648 893 1.199 1,136 920 1.427 1,572 Two-way transactions2................... 1,187 790 648 893 1.199 1,135 920 1.427 1,571 Net transactions: Purchases of net buying banks.. 4,984 5,724 7,507 7,134 5,464 5,815 7,329 5,656 5,088 Sales of net selling banks........... Related transactions with U.S. Govt, securities dealers Loans to dealers3................... 1,353 1,964 2,482 2,240 1,427 1,535 1,569 1,533 1,590 Borrowing from dealers4... 804 611 364 386 491 631 849 1,019 1,097 Net loans................................. 549 1,353 2,118 1,854 936 904 721 514 494 38 banks outside New York City Basic reserve position 27 Excess reserves1............................ 75 86 50 -29 22 113 -24 34 78 Less: 28 Borrowings at F.R. Banks... 14 11 4 14 54 6 18 41 29 Net interbank Federal funds transactions....................... 9,379 11,425 13,766 11,536 9,129 9,261 10,813 11,070 9,854 Equals: Net surplus, or deficit (—): 30 Amount...................................... -9,318 -11,339 -13,727 -11,568 -9,122 -9,202 -10,843 -11,054 -9,817 31 Per cent of average required reserves.............................. 102.8 126.8 152.8 122.9 97.7 97.3 117.7 119.1 111.0 Interbank Federal funds transactions Gross transactions: Purchases....................................... 16,648 18,214 19,141 18,544 16,779 17,089 17,513 16,979 16,211 Sales................................................. 7,269 6,789 5,376 7,009 7,649 7,828 6,700 5,909 6,357 Two-way transactions2................... 4,151 4,478 4,425 4,389 4,265 4,454 4,106 3,800 4,048 Net transactions: Purchases of net buying banks.. 12,497 13,736 14,716 14,156 12,514 12,635 13,407 13,180 12,163 Sales of net selling banks........... 3,118 2,311 951 2,620 3,384 3,374 2,594 2,110 2,309 Related transactions with U.S. Govt, securities dealers 37 Loans to dealers3.............................. 1,117 2,263 3,015 1,392 1,041 1,364 1,345 1,324 1,340 38 Borrowing from dealers4................ 1,091 901 909 862 1,062 1,398 1,243 1,308 1,674 39 Net loans............................................ 25 1,361 2,106 530 -21 -34 102 16 -334 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 1977, week ending Wednesday- Type Mar. 30 April 6 April 13 April 20 April 27 May 4 May 11 May 18 May 25 5 banks in City of Chicago Basic reserve position 40 Excess reserves1............................ 17 39 40 -24 38 -12 18 Less: 41 Borrowings at F.R. Banks... 14 18 42 Net interbank Federal funds transactions....................... 5,617 6,197 6,662 6,394 5,364 5,410 5,883 5,908 5,227 Equals: Net surplus, or deficit (—): 43 Amount.......................................... -5,615 -6,159 -6,622 -6,418 -5,368 -5,372 -5,896 -5,907 -5,223 44 Per cent of average required reserves................................... 367.4 414.0 445.1 404.0 354.1 337.8 388.4 369.0 356.4 Interbank Federal funds transactions Gross transactions: 45 Purchases........................................ 6,575 7,155 7,528 7,206 6,491 6,600 6,780 6,904 6,246 46 Sales................................................. 958 958 865 812 1.127 1,190 897 996 1,018 47 Two-way transactions2................... 958 958 866 812 1.127 1,178 897 996 1,018 Net transactions: 48 Purchases of net buying banks.. 5,617 6,197 6,662 6,394 5,364 5,421 5,883 5,908 5,228 49 Sales of net selling banks........... 12 Related transactions with U.S. Govt, securities dealers 50 Loans to dealers3................... 226 816 611 421 171 365 295 229 244 51 Borrowing from dealers4... 481 189 392 444 541 543 512 561 600 52 Net loans.................................. -255 627 220 -23 -370 -178 -217 -333 -356 33 other banks Basic reserve position 53 Excess reserves1............................ 58 48 10 -4 26 75 -12 16 74 54 Le B ss o : rrowings at F.R. Banks... 11 4 14 54 6 41 55 Net interbank Federal funds transactions....................... 3,762 5,227 7,103 5,142 3,766 3,852 4,930 5,163 4,627 Equals: Net surplus, or deficit (—): 56 Amount.................................... -3,704 -5,180 -7,105 -5,150 -3,754 -3,830 -4,948 -5,174 -4,594 57 Per cent of average required reserves............................ 49.1 69.5 94.8 65.8 48.0 48.7 64.3 67.0 62.2 Interbank Federal funds transactions Gross transactions: 58 Purchases......................................... 10,073 11,058 11,614 11,338 10,288 10,489 10,733 10,075 9,965 59 Sales.................................................. 6,311 5,831 4,510 6,196 6,522 6,638 5,803 4,913 5,339 60 Two-way transactions2.................... 3,193 3,520 3,560 3,576 3,137 3,276 3,209 2,803 3,030 Net transactions: 61 Purchases of net buying banks.., 6,880 7,539 8,054 7,762 7,150 7,214 7,523 7,272 6,936 62 Sales of net selling banks........... 3,118 2,311 951 2,620 3,384 3,362 2,594 2,110 2,309 Related transactions with U.S. Govt, securities dealers 63 Loans to dealers3................... 891 1,447 2,403 971 870 999 1,050 1,095 1,096 64 Borrowing from dealers4... 611 713 517 418 520 855 731 746 1,073 65 Net loans................................. 280 734 1,886 554 350 144 319 349 22 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 Domestic Financial Statistics □ June 1977 1.14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and previous levels Loans to member banks— Loans to all others Under Sec. 10(b)2 under Sec. 13, last par.4 Federal Reserve Under Secs. 13 and 13a1 Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 5/31/77 date rate 5/31/77 date rate 5/31/77 date rate 5/31/77 date rate B P C R C N A S K D M S t a h o l e i t h a a . i e n c l i w n s n l i a l v L h l c t a n s n a F e o m a o d a Y e l s t r n g u s a e a a . o a o . o l . n i p . . . C p n n s . . r . . d . . o . . . h . . d k . c . i . . . . . . l . t . . i . i . . . . i . . . y . . a . s . . . s . . . . . . . . . . c . . . . . . . . . . . . . . . . . . . . . . o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 5 5 5 5 5 5 5 5 5 1 V 1 V V V V % Y % % % / / 4 4 4 a 4 4 4 4 1 1 1 1 1 \ \ 1 1 1 1 1 1 \ l 1 1 1 1 1 1 1 1 1 / 1 / 1 / / / / / / / / 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 6 2 2 2 2 2 2 / / / / / / / / / / / / 7 7 7 7 7 7 7 7 7 7 1 1 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 5 5 V % % % % % % % % % % ^ 4 5 5 5 5 5 5 5 S 5 55 5 V V 3 V 3 3 3 3 3 3 3 % 4 4 4 4 4 4 4 4 4 4 4 1 U \ \ \ U 1 1 1 1 1 U \ \ \ 1 1 1 1 1 1 / / / / / / 2 2 2 / / / / / / 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 6 2 2 2 / / / / / / / / / / / / 1 1 1 1 1 1 7 7 7 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 1 V V V V V V V % % % % / 4 4 4 4 4 4 4 4 1 U 1 U 1 1 U 1 1 1 1 1 1 1 1 1 1 1 1 1 1 / / / / / / / / / / / / 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 6 2 2 2 2 / / / / / / / / / / / / 1 1 1 7 7 7 7 7 7 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 1 1 1 V V i i i i i % i / / / / / / / / / 2 2 2 4 i i i i i i i 8 8 8 8 8 8 8 8 8 8 8 8 1 1 1 1 1 1 1 % % 1 % % / / / / / / / 4 4 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 / / / / / / / / / / / / 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 6 2 2 2 2 / / / / / / / / / / / / 7 7 7 7 7 7 7 7 7 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 8 8 8 8 8 8 8 8 8 8 8 8 V 1 i i i % i i i i i i / / / / / / / / / / i i i i i i i i i i i Range of rates in recent years5 Range F.R. Range F.R. Range F.R. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970........ 5V4 51/i 1973—J F a e n b . . 2 1 6 5. . . .. .. . . .. .. .. .. .. .. .. .. .. . . .. . . . . .. . 5 5-5Vi 5 51/i 1975—Jan. 1 6 0 . . . . . . .. . . . .. . . . .. . . . .. . . 7 71 1 / / 4 4 - -7 7 3 3/ ,4 4 7 7 3 1 / * 4 1971—Jan. 8..................... 5i/4-5i/i 51/4 Mar. 2................... 5 Vi 5i/i 24............... 71/4 m 2 2 1 1 2 9 5 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 5 1 - - / 5 5 4 1 % 4 5 5 5 5 1 % /4 A M p a r y . 2 1 1 4 3 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 53 i/ / 5 i 4 - 3 6 - 5 /4 6 3/4 5 5 6 6 1 * / /4 2 F M e a b r . . 1 1 7 5 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 3 1 , / 6 6 4 4 3 V - - , 7 6 4 4 1 3 / ,4 4 6 6 6 v 3 1 / V / / 4 4 4 4 Feb. 13..................... 43,4-5 5 June 11................... 6-6i/i 6i/i May 16............... 6-6V4 6 19..................... 43,4 43/4 15................... 6i/i 61/2 23............... 6 6 July 16..................... 43/4-5 5 July 2................... 7 7 23..................... 5 5 Aug. 14................... 7-7i/i 71/i 1976—Jan. 19............... 5 Vi-6 5 Vi Nov. 11..................... 43/4-5 5 23................... 7Vi 7i/i 23............... 5i/i 5i/i Dec. 2 1 1 1 4 9 7 3 . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . 4 4 % % 4 4 3 - - ^ / 4 4 4 % % 4 4 4 4 3 3 V i / / / 4 4 i i 1974— D Ap ec r. . 2 3 1 9 5 0 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 73 V 7 4 8 i 3 - - 8 8 4 7 7 8 8 3 3 / / 4 i In effec N t o M v. a y 2 2 6 2 3 . . 1 . . . . , . . . . . . . . 1 . . . . 9 . . . . 7 . . . . 7 . . . . . 51/ 5 5 4 1 V - / 5 4 4 Vi 5 5 5 1 % V /4 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 Secs. 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 May 31, 1977 Type of deposit, and deposit interval in millions of dollars Per cent Effective date Per cent Effective date Net demand:2 7 12/30/76 m 2/13/75 2-10.......................................................................................................... 9% 12/30/76 10 2/13/75 10-100...................................................................................................... ny4 12/30/76 12 ii m i5 100-400................................................................................................... 12% 12/30/76 13 2/13/75 Over 400................................................................................................. 16V4 12/30/76 16% 2/13/75 Time:2,3 Savings..................................................................................................... 3 3/16/67 m 3/2/67 Other time: 0-5, maturing in— 30-179 days.................................................................................... 3 3/16/67 3 Vi 3/2/67 180 days to 4 years....................................................................... 4 2}4 1/8/76 3 3/16/67 4 years or more............................................................................. 41 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...................................................................... *2% 1/8/76 3 12/12/74 4 years or more............................................................................. 41 10/30/75 3 12/12/74 Legal limits, May 31, 1977 Minimum Maximum. Net demand: Reserve city banks 10 22 Other banks.......... 7 14 Time........................... 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 1976, 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
A 10 Domestic Financial Statistics □ June 1977 1.16 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 May 31, 1977 Previous maximum In effect May 31, 1977 Previous maximum Per cent Effective Per cent Effective Per cent Effective Per cent Effective date date date date 1 Savings............................................................. 5 7/1/73 4Vi 1/21/70 5% <5> 5 (6) 2 Negotiable order of withdrawal (NOW) accounts1............................................ 5 1/1/74 5 1/1/74 Time (multiple- and single-maturity unless otherwise indicated):2 30-89 days: 4 3 S M in u g lt l i e p -m le- a m tu a r t i u ty ri . t .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . } * 7/1/73 / I 4 5 Vi 9 1 / / 2 2 6 1 / / 6 7 6 0 } (7) 90 days to 1 year: 6 Single-maturity...................................... } 5'A 7/1/73 5 { 9 7 / / 2 2 6 0 / / 6 6 6 6 } 35% (5) 5% 1/21/70 7 8 2 1 t t o o 2 2 V y i e a y r e s a 3 r . s . 3 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } ‘ 7/1/73 J I 5 5V V a i 1 1 / / 2 2 1 1 / / 7 7 0 0 } 6 Vi (5) / \ 6 s y4 1 1 / / 2 2 1 1 / / 7 7 0 0 9 2Vi to 4 years3........................................... 6Vi 7/1/73 5V4 1/21/70 6V4 (5) 6 1/21/70 10 4 to 6 years4............................................... 71/4 11/1/73 (8) m 11/1/73 (8) 11 6 years or more4........................................ m 12/23/74 71/4 11/1/73 7% 12/23/74 m 11/1/73 12 Governmental units (all maturities).... 12/23/74 m \\ 127114 1V4 12/23/74 m U121114 1 For authorized States only. Federally insured commercial banks, 8 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for savings and loan associations, cooperative banks, and mutual savings certificates maturing in 4 years or more with minimum denominations banks were first permitted to offer NOW accounts on Jan. 1, 1974. of $1,000; however, the amount of such certificates that an institution Authorization to issue NOW accounts was extended to similar institu could issue was limited to 5 per cent of its total time and savings deposits. tions throughout New England on Feb. 27, 1976. Sales in excess of that amount, as well as certificates of less than $1,000, 2 For exceptions with respect to certain foreign time deposits see the were limited to the 6Vi per cent ceiling on time deposits maturing in 2 Vi Federal Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. years or more. 1094), and February 1968 (p. 167). Effective Nov. 1, 1973, the present ceilings were imposed on certificates 3 A minimum of $1,000 is required for savings and loan associations, maturing in 4 years or more with minimum denominations of $1,000. except in areas where mutual savings banks permit lower minimum de There is no limitation on the amount of these certificates that banks can nominations. This restriction was removed for deposits maturing in less issue. than 1 year, effective Nov. 1, 1973. 4 $1,000 minimum except for deposits representing funds contributed Note—Maximum rates that can be paid by Federally insured commer to an individual retirement account (IRA) or a Keogh (H.R. 10) plan es cial banks, mutual savings banks, and savings and loan associations are tablished pursuant to the Internal Revenue code. The $1,000 minimum established by the Board of Governors of the Federal Reserve System, requirement was removed for such accounts in December 1975 and No the Board of Directors of the Federal Deposit Insurance Corporation, vember 1976, respectively. and the Federal Home Loan Bank Board under the provisions of 12 5 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and CFR 217, 329, and 526, respectively. The maximum rates on time de loan associations. posits in denominations of $100,000 or more were suspended in mid- 6 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and 1973. For information regarding previous interest rate ceilings on all loan associations. types of accounts, see earlier issues of the Federal Reserve Bulletin, 7 No separate account category. the Federal Home Loan Bank Board Journal, and the Annual Report of the Federal Deposit Insurance Corporation. 1.161 M A R G IN R E Q U IR E M E N T S Per cent of market value; effective dates shown. Type of security on sale Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 1 Margin stocks............................................................ 70 80 65 55 65 50 2 Convertible bonds. .j................................................ 50 60 50 50 50 50 3 Short sales................................................................... 70 80 65 55 65 50 Note.—Regulations G, T, and U of the Federal Reserve Board of difference between the market value (100 per cent) and the maximum Governors, prescribed in accordance with the Securities Exchange Act of loan value. The term “margin stocks” is defined in the corresponding 1934, limit the amount of credit to purchase and carry margin stocks regulation. that may be extended on securities as collateral by prescribing a maximum Regulation G and special margin requirements for bonds convertible loan value, which is a specified percentage of the market value of the into stocks were adopted by the Board of Governors effective Mar. 11, collateral at the time the credit is extended. Margin requirements are the 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments Al 1 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1976 1977 Type of transaction 1974 1975 1976 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. GOVT. SECURITIES Outright transactions (excl. matched salepurchase transactions) Treasury bills: 1 Gross purchases. 11,660 11,562 14,343 618 346 975 2,535 110 1,671 2 Gross sales........... 5,830 5,599 8,462 480 1,546 313 801 368 260 3 Redemptions 4,550 26,431 2 5,017 '266' 600 19 Others within 1 year:1 Gross purchases..................... 450 3,886 472 18 59 45 107 41 20 Gross sales............................... Exchange, or maturity shift. -1,183 -4 792 66 1,047 252 63 -266 374 Redemptions........................... 131 3,549 1 to 5 years: Gross purchases...................... 797 2 3,284 2 3,202 113 681 475 348 174 327 9 Gross sales............................... 177 10 Exchange, or maturity shift., -697 3,854 -2,588 -66 430 -252 -880 266 -374 5 to 10 years: 11 Gross purchases...................... 434 1,510 1,048 62 170 128 151 46 104 12 Gross sales............................... 13 Exchange, or maturity shift. 1,675 -4,697 1,572 -1,167 517 Over 10 years: 14 Gross purchases...................... 196 1,070 642 73 119 48 81 37 38 15 Gross sales........................... 16 Exchange, or maturity shift. 205 848 225 -310 300 All maturities:1 17 Gross purchases. 13,537 221,313 19,707 618 612 2,004 3,229 797 298 2,160 18 Gross sales........... 5,830 5,599 8,639 480 1,546 313 801 368 260 19 Redemptions 4,682 2 9,980 25,017 ’266 600 19 Matched sale-purchase transactions 20 Gross sales.................................... 64,229 151,205 196,078 23,289 22,675 23,193 24,595 22,674 30,115 32,287 21 Gross purchases.......................... 62,801 152,132 196,579 24,501 21,525 24,343 22,544 23,447 30,828 32,852 Repurchase agreements 22 Gross purchases. . . 71,333 140,311 232,891 16,603 17,612 30,872 23,820 13,853 14,368 13,397 23 Gross sales............. 70,947 139,538 230,355 18,821 20,173 27,119 27,573 12,921 14,860 11,862 24 Net change in U.S. Govt, securities.... 1,984 7,434 9,087 -588 -4,179 5,361 -2,887 1,702 151 3,980 FEDERAL AGENCY OBLIGATIONS Outright transactions: 25 Gross purchases........... 3,087 1,616 891 115 346 26 Gross sales..................... 27 Redemptions................. 322 246 169 14 63 24 36 Repurchase agreements: 28 Gross purchases........... 23,204 15,179 10,520 705 897 1,380 930 689 523 709 29 Gross sales..................... 22,735 15,566 10,360 949 976 1,102 1,208 612 546 639 BANKERS ACCEPTANCES 30 Outright transactions, net. .. 511 163 -545 -9 -9 8 -5 -18 -19 -51 31 Repurchase agreements, net. 420 -35 410 -492 -140 795 -795 149 -23 653 32 Net change in total System Account. 6,149 8,539 9,833 -1,332 -4,307 6,379 -3,969 1,886 50 4,998 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 Financial Statistics □ June 1977 1.18 F E D E R A L R E S E R V E B A N K S Condition and F .R . Note Statements Millions of dollars Wednesday End of Month Account 1977 1977 Apr. 27 May 4 May 11 May 18p May 25p Mar. Apr. May*7 Consolidated condition statement ASSETS 2 1 S G p o e l c d i a c l e D rt r if a ic w a i t n e g a R cc ig o h u t n s t . c .. e . r .. t .. i . f . i . c .. a .. t .. e . .. a .. c .. c .. o .. u .. n ... t . . 11 1 , , 6 2 3 0 6 0 11 1 , , 6 2 3 0 6 0 1 1 1 , , 2 63 0 6 0 11 1 , , 6 2 2 0 9 0 1 1 1, , 6 2 2 0 9 0 1 1 1 , , 2 63 0 6 0 1 1 1 , , 2 6 0 3 0 6 1 1 1, , 6 2 2 0 9 0 3 Coin1................................................................... 327 324 322 329 324 360 340 319 Loans: 4 Member bank borrowings................. 487 122 381 211 449 271 379 398 5 Other....................................................... Acceptances: 6 Bought outright.................................... 107 93 75 68 60 154 103 58 7 Held under repurchase agreements. 484 924 597 290 126 778 50 Federal agency obligations: 8 Bought outright.................................... 6,731 7,077 7,077 7,077 7,077 6,731 7,077 7,077 9 Held under repurchase agreements. 169 427 83 276 54 124 10 U.S. Govt, securities Bought outright: 10 Bills..................................................... 40,179 40,640 40,177 39,040 39,170 41,127 39,694 11 Certificates—Special....................... 12 Other......................... 13 Notes................................................. 49,632 49,632 49,632 48,732 48,732 49,181 49,632 48,732 14 Bonds................................................ 7,234 7,234 7,234 8,134 8,134 7,196 7.234 8,134 15 Total 2.................................................... 97,045 96,763 97,506 97,043 95,906 95,547 97,993 96,560 16 Held under repurchase agreements. 3,195 6,090 3,372 1,119 440 1,974 834 17 Total U.S. Govt, securities. 100,240 102,853 100,878 98,162 95,906 95,987 99,967 97,394 18 Total loans and securities.. 108,218 111,496 109,091 106,084 103,492 103,323 108,428 104,987 19 Cash items in process of collection... 9,670 10,329 8,639 9,234 8,429 8,045 8.234 7,341 20 Bank premises.......................................... 366 367 367 368 369 372 366 369 Other assets: 21 Denominated in foreign currencies. 64 41 54 43 55 61 56 60 22 All other................................................ 2,791 2,794 2,857 2,343 2,264 2,426 2,821 2,427 23 Total assets. 134,272 138,187 134,166 131,230 127,762 127,423 133,081 128,332 LIABILITIES 24 F.R. notes.............................................. 84,088 84,495 85,130 84,933 84,926 83,257 83,757 85,333 Deposits: 25 Member bank reserves................... 28,339 29,835 27,362 25,392 24,073 27,814 25,773 27,988 26 U.S. Treasury—General account. 11,323 13,699 12,193 10,848 9,044 7,150 13,628 5,838 27 Foreign............................................... 266 259 234 279 274 349 305 436 28 Other 3................................................ 662 544 424 536 713 637 591 831 29 Total deposits. 40,590 44,337 40,213 37,055 34,104 35,950 40,297 35,093 30 Deferred availability cash items............ 6,184 6,234 5,604 5,946 5,307 4,759 5,499 4,367 31 Other liabilities and accrued dividends. 979 1,062 1,034 988 1,001 1,016 1,052 1,016 32 Total liabilities...................................... 131,841 136,128 131,981 128,922 125,338 124,982 130,605 125,809 CAPITAL ACCOUNTS 33 Capital paid in............................................................. 991 994 996 998 999 991 993 1,000 34 Surplus.......................................................................... 983 983 983 983 983 983 983 983 35 Other capital accounts.............................................. 457 82 206 327 442 467 500 540 36 Total liabilities and capital accounts....................... 134,272 138,187 134,166 131,230 127,762 127,423 133,081 128,332 37 Memo: Marketable U.S. Govt, securities held in custody for foreign and inti, account............... 57,976 57,929 57,542 58,520 58,301 56,623 60,092 58,214 Federal Reserve note statement 38 F.R. notes outstanding (issued to Bank)........ 89,565 89,599 89,655 89,970 90,023 88,664 89,630 90,242 Collateral held against notes outstanding: 39 Gold certificate account.................................. 11,631 11,631 11,632 11,625 11,625 11,633 11,631 11,625 40 Special Drawing Rights certificate account.... 643 643 643 643 643 643 643 643 41 Acceptances....................................................... 42 U.S. Govt, securities........................................ 78,833 78,933 79,133 79,183 79,183 78,130 78,933 79,283 43 Total collateral. 91,107 91,207 91,408 91,451 91,451 90,406 91,207 91,551 1 Effective Jan. 1, 1977 Federal Reserve notes of other Federal Reserve owned banking institutions voluntarily held with member banks and Banks were merged into the liability account for Federal Reserve notes. redeposited in full with F.R. Banks. 2 Includes securities loaned—fully guaranteed by U.S. Govt, securities pledged with F.R. Banks—and excludes (if any) securities sold and Note.—Beginning Jan. 1, 1977, “Operating equipment” was transferred scheduled to be bought back under matched sale-purchase transactions. to “Other assets.” 3 Includes certain deposits of domestic nonmember banks and foreign- 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 1977 1977 Apr. 27 May 4 May 11 May 18 May 25 Mar. 31 Apr. 30 May 31 1 486 123 374 211 449 270 377 398 2 Within 15 days.......................................................... 481 114 361 • 203 441 267 371 386 3 16 days to 90 days.................................................... 5 9 13 8 8 3 6 12 A ^ ................................................................ 591 1,017 672 358 60 280 881 108 6 Within 15 days.......................................................... 516 953 613 308 6 147 812 59 7 16 days to 90 days.................................................... 56 47 50 50 48 90 51 45 8 91 days to 1 year . .......................... 19 17 9 6 43 18 4 9 U.S. Govt, securities..................................................... 100,240 102,853 100,878 98,162 95,906 95,987 99,967 97,394 10 Within 15 days1........................................................ 8,483 13,240 11,291 5,532 3,870 3,494 6,259 2,629 11 16 days to 90 days.................................................... 21,096 17,736 17,552 17,689 17,613 20,422 22,770 19,615 12 91 days to 1 year....................................................... 24,050 25,530 25,688 27,525 27,007 25,928 24,327 27,703 13 Over 1 year to 5 years............................................. 31,168 30,904 30,904 29,899 29,899 30,841 31,168 29,930 14 Over 5 years to 10 years......................................... 9,991 9,991 9,991 11,165 11,165 9,888 9,991 11,165 is Over 10 vears............................................................ 5,452 5,452 5,452 6,352 6,352 5,414 5,452 6,352 \(\ FpHpral aopnrv nhlipatinns.......................................... 6,900 7,504 7,160 7,353 7,077 6,785 7,201 7,087 17 Within 15 days1........................................................ 214 427 122 383 68 82 170 149 18 16 days to 90 days.................................................... 289 319 280 212 212 268 289 277 19 91 days to 1 year....................................................... 1,092 1,106 1,106 1,140 1,170 1,178 1,091 1,034 20 Over 1 year to 5 years............................................. 3,317 3,490 3,490 3,456 3,450 3,291 3,490 3,450 21 Over 5 years to 10 years......................................... 1,233 1,372 1,372 1,372 1,372 1,206 1,371 1,387 22 Over 10 years............................................................. 755 790 790 790 805 760 790 790 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 D E M A N D D EP O S IT A C C O U N T S Debits and Rate of Turnover Monthly data are at seasonally adjusted annual rates. 1976 1977 Standard metropolitan statistical area 1973 1974 1975 Dec. Jan. Feb. Mar. Apr. Debits (billions of dollars)2 1 All 233 SMSA’s.. ........................................................ 18,641.3 22,192.2 23,565.1 28,911.0 29,288.1 r30,145.4 r30,421.7 30,499.7 2 New York City.............................................................. 8,097.7 9,931.8 10,970.9 13,835.0 14,411.8 14,898.0 14,612.1 14,988.9 3 232 SMSA’s................................................................... 10,543.6 12,260.6 12,594.2 15,076.1 14,876.3 '15,247.4 r15,809.6 15,510.8 4 6 leading SMSA’s other than N.Y.C.1............... 4,462.8 5,152.7 4,937.5 5,917.1 5,864.3 5,887.1 6,155.7 6,055.5 5 226 others.................................................................... 6,080.8 7,107.9 7,661.8 9,159.0 9,012.0 r9,360.2 r9,653.9 9,455.3 Turnover of deposits (annual rate) 6 All 233 SMSA’s............................................................ 110.2 128.0 131.0 153.5 154.3 153.3 '155.2 157.7 7 New York City.............................................................. 269.8 312.8 351.8 419.8 443.5 437.3 436.0 465.2 8 232 SMSA’s................................................................... 75.8 86.6 84.7 97.0 94.6 93.8 r97.3 96.3 9 6 leading SMSA’s other than N.Y.C.1............... 115.0 131.8 118.4 136.9 133.9 129.9 135.2 134.7 10 226 others................................................................... 60.6 69.3 71.6 81.7 19 A r79.8 r82.5 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 Financial Statistics □ June 1977 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1976 1977 1973 1974 1975 Dec. Dec. Dec. Item Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted MEASURES i 1 M-l............................................ 270.5 283.1 294.8 310.5 310.6 312.8 314.3 314.5 316.1 321.3 2 3 M M - - 2 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . 5 91 7 9 1 . . 6 4 6 98 1 1 2 . . 5 4 1.0 6 9 6 2 4 . . 6 3 1,2 7 1 2 0 5 . . 5 7 1,2 7 2 3 2 1. . 7 8 1,2 7 3 3 6 9 . . 1 3 1.2 7 4 4 7 5 . . 6 0 1,2 7 5 49 6 . . 1 6 1,2 7 6 5 6 4. .2 2 1,2 16 7 2 9 . A 2 4 M-4.......................................... 634.4 701.4 746.5 788.0 794.0 802.6 808.0 812.3 816.3 824.0 5 M-5.......................................... 982.5 1,070.5 1.174.7 1,272.8 1,285.0 1,299.3 1.310.7 1,319.9 1,328.4 1,340.8 COMPONENTS 6 Currency................................. 61.5 67.8 73.7 79.8 80.3 80.6 81.3 82.0 82.4 83.3 7 Co D m e m m e a r n ci d a . l . . b ... a .. n .. k .. .. d .. e .. p .. o .. s .. i . t .. s . : .. 209.0 215.3 221.0 230.7 230.3 232.1 233.0 232.5 233.7 238.1 8 Time and savings............... 363.9 418.3 451.7 477.5 483.4 489.8 493.8 497.8 500.2 502.7 9 Negotiable CD’s2......... 63.0 89.0 82.1 62.3 62.2 63.3 63.1 63.3 62.2 61.6 10 Other............................... 300.9 329.3 369.6 415.2 421.2 426.5 430.7 434.5 438.0 441.1 11 Nonbank thrift institutions3 348.1 369.1 428.3 484.8 491.0 496.8 502.6 507.5 512.1 516.8 Not seasonally adjusted MEASURES i 12 M-l........................................................... 278.3 291.3 303.2 309.4 312.5 321.7 320.2 310.4 313.1 323.1 13 M-2........................................................... 576.5 617.5 669.3 722.8 129 A 744.3 749.9 745.6 754.3 767.8 14 M-3........................................................... 921.8 983.8 1,094.3 1,204.9 1,215.7 1,236.9 1,250.1 1,251.5 1,267.9 1,288.2 15 M-4........................................................... 640.5 708.0 752.8 786.9 792.3 808.6 813.0 806.9 815.1 827.9 16 M-5........................................................... 985.8 1,074.3 1,177.7 1,269.0 1,278.6 1,301.2 1,313.2 1,312.7 1,328.7 1,348.3 COMPONENTS 17 Currency................................................. 62.7 69.0 75.1 79.6 80.8 82.1 80.7 80.9 81.7 82.9 Commercial bank deposits: 18 Demand............................................... 215.7 222.2 228.1 229.8 231.7 239.5 239.5 229.5 231.4 240.2 19 Member.......................................... 156.5 159.7 162.1 161.7 162.5 168.4 168.1 161.0 162.1 167.6 20 Domestic nonmember.................. 56.3 58.5 62.6 64.9 65.9 67.5 67.9 65.0 65.7 68.9 21 Time and savings................................ 362.2 416.7 449.6 477.5 479.8 486.9 492.8 496.4 502.0 504.7 22 Negotiable CD’s2......................... 64.0 90.5 83.5 64.2 62.9 64.3 63.1 61.3 60.8 60.1 298.2 326.3 366.2 413.4 416.9 422.6 429.7 435.1 441.2 444.7 24 Nonbank thrift institutions3............... 345.3 366.3 424.9 482.1 486.3 492.6 500.2 505.9 513.6 520.4 25 U.S. Govt, deposits (all commercial banks).............................................. 6.3 4.9 4.1 4.0 4.1 4.5 3.9 4.1 4.3 5.3 i 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-l: Averages of daily figures for (1) demand deposits of commercial For a description of the latest revisions in the money stock measures’ banks other than domestic interbank and U.S. Govt., less cash items in see “Money Stock Measures Revisions” on pp. 305-306 of the March process of collection and F.R. float; (2) foreign demand balances at F.R. 1977 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-l 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. As of Oct. 31, 1974, “Total loans and investments” of all commercial 2 Loans sold are those sold outright to banks’ own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks’ holding of one large bank. Reductions in other items were: “Total loans,” $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in “Commercial and industrial loans”), the holding company. Prior to Aug. 28, 1974, the institutions included and “Other securities,” $0.5 billion. In late November “Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans” were increased by $0.1 billion as a result of loan re was also different. On the new basis, both “Total loans” and “Com classifications at another large bank. mercial and industrial loans” were reduced by about $100 million. 5 Data revised beginning July 1976 to conform with Dec. 1976 call 3 Reclassification of loans reduced these loans by about $1.2 billion report benchmarks. Complete revisions will be published in the Annual as of Mar. 31, 1976. Statistical Digest, 1972-1976. 4 Data beginning June 30, 1974, include one large mutual savings bank that merged with a nonmember commercial bank. As of that date Note.—Data are for last Wednesday of month except for June 30 there were increases of about $500 million in loans, $100 million in and Dec. 31; data are partly or wholly estimated except when June 30 “Other securities,” and $600 million in “Total loans and investments.” and Dec. 31 are call dates. 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 1977 Item 1973 1974 1975 Dec. Dec. Dec. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted 1Reserves 1.......................................................................... 34.94 33.60 34.73 34.34 34.51 34.85 34.95 34.78 34.40 34.31 34.68 2 Nonborrowed............................................................... 33.64 35.87 34.60 34.27 34.41 34.78 34.90 34.71 34.33 34,20 34.61 3 Required........................................................................ 34.64 36.34 34.46 34.14 34.29 34.59 34.68 34.51 34.20 34,09 34.49 4 Deposits subject to reserve requirements 2................. 442.3 486.2 505.4 515.6 520.0 524.9 529.6 532.5 532.0 535.2 538.4 5 Time and savings........................................................ 279.2 322.1 337.9 343.3 346.2 350.2 355.0 357.3 360.1 361.3 361.4 Demand: 6 Private........................................................................ 158.1 160.6 164.5 168.7 170.4 170.7 171.4 172.5 169.5 171.1 173.4 7 U.S. Govt.................................................................. 5.0 3.5 3.0 3.6 3.4 4.0 3.2 2.7 2.5 2.8 3.6 8 Deposits plus nondeposit items 3.................................. 448.9 494.6 513.8 523.8 529.0 534.0 538.8 540.8 539.5 542.9 546.1 Not seasonally adjusted 9 Deposits subject to reserve requirements 2................. 447.5 491.8 510.9 514.9 518.9 522.5 534.8 537.7 528.7 534.0 541.3 10 Time and savings......................................................... 278.5 321.7 337.2 344.1 346.7 347.6 353.6 357.0 358.4 361.7 362.3 Demand: 11 Private........................................................................ 164.0 166.6 170.7 167.2 169.5 171.9 177.9 177.8 167.2 169.1 175.0 12 U.S. Govt.................................................................. 5.0 3.4 3.1 3.6 2.8 3.0 3.3 2.9 3.1 3.2 4.0 454.0 500.1 519.3 523.1 527.9 531.5 544.0 546.0 536.2 541.7 549.0 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; Jan. 8, and Dec. 30,1976. 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 and 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 LO A N S A N D IN V ES T M EN T S A ll Com m ercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 19765 19775 1973 1974 4 1975 Dec. 31 Dec. 31 Dec. 31 Category Nov. 24 Dec. 31 Jan. 26 Feb. 23 Mar. 30 Apr. 27 May 25 V V V V p Seasonally adjusted 1 Loans and investments1............................................. 633.4 690.4 721.1 778.8 784.4 786.6 796.4 803.0 812.4 819.4 2 Including loans sold outright2............................ 637.7 695.2 725.5 782.6 788.2 790.6 800.3 807.0 816.4 823.4 Loans: 3 Total.......................................................................... 449.0 500.2 496.9 533.1 538.9 540.9 545.4 551.0 557.7 562.1 4 Including loans sold outright2........................ 453.3 505.0 501.3 536.9 542.7 544.9 549.3 555.0 561.7 566.1 5 Commercial and industrial3................................ 156.4 183.3 176.0 179.0 179.5 179.8 181.2 182.9 184.9 185.9 6 Including loans sold outright2,3..................... 159.0 186.0 178.5 181.4 181.9 182.4 183.8 185.6 187.7 188.7 Investments: 7 U.S. Treasury.......................................................... 54.5 50.4 79.4 95.4 97.3 96.9 101.5 103.6 102.8 104.6 8 Other......................................................................... 129.9 139.8 144.8 150.3 148.2 148.8 149.5 148.4 151.9 152.7 Not seasonally adjusted 9 Loans and investments1............................................. 647.3 705.6 737.0 778.5 801.6 784.9 790.9 801.1 809.6 816.6 10 Including loans sold outright.............................. 651.6 710.4 741.4 782.3 805.4 788.9 793.9 805.1 813.6 820.6 Loans: 11 Total1........................................................................ 458.5 510.7 507.4 531.9 550.2 536.0 538.9 547.7 553.5 561.3 12 Including loans sold outright2........................ 462.8 515.5 511.8 535.7 554.0 540.0 542.8 551.7 557.5 565.3 13 Commercial and industrial3................................ 159.4 186.8 179.3 178.3 182.9 177.8 179.4 182.8 185.1 186.1 14 Including loans sold outright2,3..................... 162.0 189.5 181.8 180.7 185.3 180.4 182.0 185.5 187.9 188.9 Investments: 15 U.S. Treasury.......................................................... 58.3 54.5 84.1 98.0 102.5 101.1 102.6 104.7 103.0 101.9 16 Other......................................................................... 130.6 140.5 145.5 148.6 148.9 147.9 148.5 148.7 153.1 153.4 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A16 Domestic Financial Statistics □ June 1977 1.24 C O M M E R C IA L B A N K A S S ETS A N D LIA B ILIT IES Last-W ednesday-of-M onth Series Billions of dollars except for number of banks 1975 1976 3 1977 Account Dec. 31 Aug. Sept. Oct. Nov. Dec. Jan.? Feb.* Mar.p Apr.P JMayP All commercial 1 Loans and investments................. 775.8 791.6 800.8 808.0 817.6 846.4 824.2 831.6 840.4 846.5 853.1 2 Loans, gross.............................. 546.2 553.1 560.2 566.5 571.0 594.9 575.3 580.4 587.0 590.4 597.8 Investments: 3 U.S. Treasury securities. . 84.1 92.5 93.5 94.4 98.0 102.5 101.1 102.6 104.7 103.0 101.9 4 Other...................................... 145.5 146.1 147.0 147.1 148.6 148.9 147.9 148.5 148.7 153.1 153.4 5 Cash assets.................................... 133.6 109.9 119.8 116.9 127.0 136.1 120.1 127.1 122.8 122.7 119.4 6 Currency and coin................... 12.3 12.1 12.4 12.7 11.9 12.1 12.8 12.5 12.9 13.3 13.1 7 Reserves with F.R. Banks... 26.8 25.4 29.8 26.4 29.1 26.1 28.6 28.6 26.9 28.2 24.0 8 Balances with banks................ 47.3 36.7 37.0 38.2 42.5 49.6 39.2 41.5 41.9 40.1 41.3 9 Cash items in process of collection.. 47.3 35.7 40.7 39.7 43.5 48.4 39.6 44.4 41.1 41.0 41.0 10 Total assets/total liabilities and capital1...................................... 964.9 948.8 969.7 973.7 995.7 1,030.7 996.7 1,011.6 1,018.2 1,024.8 1,026.9 11 786.3 764.7 779.2 784.4 796.5 838.2 801.0 809.3 817.1 819.4 818.9 Demand: 12 41.8 32.9 34.6 34.0 39.1 45.4 35.3 36.6 37.6 33.9 35.2 13 U.S. Govt............................ 3.1 3.7 5.8 3.7 3.4 3.0 4.0 3.8 3.1 7.4 3.6 14 Other.................................... 278.7 249.5 255.2 260.8 264.0 288.4 260.6 264.5 263.1 267.9 262.8 Time: 15 Interbank............................... 12.0 9.7 9.6 9.2 9.1 9.2 8.8 8.6 8.9 8.6 8.5 16 Other...................................... 450.6 468.9 473.9 476.6 481.0 492.2 492.3 495.9 504.4 501.6 508.8 17 Borrowings.................................... 60.2 72.6 78.1 76.7 84.6 80.2 82.5 87.6 84.5 88.2 87.6 18 69.1 73.0 73.7 74.3 74.8 78.1 76.3 76.8 77.1 77.5 78.1 19 14,633 14,650 14,656 14,660 14,674 14,671 14,667 14,688 14,685 14,690 14,690 Member 20 Loans and investments................ 578.6 580.3 585.7 590.7 597.6 620.5 600.9 605.9 611.8 614.8 620.2 21 Loans, gross.............................. 416.4 412.9 417.2 421.6 424.1 442.9 426.3 429.9 434.6 435.9 441.5 Investments: 22 U.S. Treasury securities. .. 61.5 66.7 67.0 67.7 70.8 74.6 72.6 73.7 74.9 73.0 72.6 23 100.7 100.7 101.5 101.4 102.7 103.1 102.0 102.3 102.3 105.8 106.1 24 Cash assets, total......................... 108.5 89.4 98.9 94.9 103.0 108.9 97.7 102.8 100.0 99.4 95.7 25 Currency and coin................... 9.2 9.0 9.2 9.5 8.9 9.1 9.5 9.3 9.6 9.9 9.7 26 Reserves with F.R. Banks. . . 26.8 25.4 29.8 26.4 29.1 26.0 28.6 28.6 26.9 28.2 24.0 27 Balances with banks............... 26.9 20.5 20.6 20.9 23.3 27.4 21.5 22.2 24.0 21.9 22.6 28 Cash items in process of collection.. 45.5 34.4 39.3 38.2 41.8 46.5 38.1 42.7 39.5 39.4 39.3 29 Total assets/total liabilities and capital1...................................... 733.6 710.7 726.8 727.6 744.8 772.9 744.6 755.1 759.7 762.7 763.9 30 590.8 562.3 573.9 576.1 584.8 618.7 587.0 592.0 598.1 597.8 597.4 Demand: 31 Interbank............................. 38.6 30.9 32.7 32.2 37.2 42.4 33.1 34.1 35.3 31.6 32.9 32 U.S. Govt.............................. 3.2 2.8 4.3' 2.9 2.4 2.1 3.0 2.7 2.1 5.9 2.7 33 Other.................................... 210.8 185.9 191.0 194.7 196.0 215.5 193.7 196.6 195.9 199.0 195.1 Time: 34 Interbank............................. 10.0 7.6 7.5 7.1 7.0 7.2 6.8 6.6 6.9 6.6 6.5 35 Other.................................... 329.1 335.1 338.4 339.2 342.1 351.5 350.3 351.9 357.9 354.7 360.3 36 Borrowings.................................. 53.6 65.9 70.6 69.1 76.4 71.7 73.6 78.0 75.3 78.1 77.5 37 Total capital accounts2............. 52.1 55.4 55.7 56.2 56.6 58.6 57.7 57.9 58.1 58.3 58.8 38 Memo: Number of banks. 5,788 5,772 5,774 5,769 5,767 5,759 5,739 5,740 5,739 5,726 5,726 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 na against “other assets,” and against “total assets” as well. tional bank in Puerto Rico and one 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, December, 7; 1977-January 8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banks A ll 1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series Millions of dollars except for number of banks 1975 1976 1975 1976 Account June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 Total insured National (all insured) 1 736,164 762,400 773,696 827,692 428,167 441,135 443,955 476,602 Loans: 2 Gross..................................................................... 526,272 535,170 539,017 578,712 312,229 315,738 315,624 340,679 3 Net......................................................................... (2) (2) 520,970 560,069 (2) (2) 305,275 329,968 Investments: 4 U.S. Treasury securities.................................... 67,833 83,629 90,947 101,459 37,606 46,799 49,688 55,729 5 142,060 143,602 143,731 147,520 78,331 78,598 78,642 80,193 6 Cash assets.................................................................... 125,181 128,256 124,072 129,578 75,686 78,026 75,488 76,074 7 Total assets/total liabilities1...................................... 914,781 944,654 942,510 1,004,020 536,836 553,285 548,697 583,315 8 Deposits........................................................................ 746,348 775,209 776,957 825,001 431,646 447,590 444,251 469,378 Demand: 9 U.S. Govt............................................................. 3,106 3,108 4,622 3,020 1,723 1,788 2,858 1,674 10 Interbank.............................................................. 41,244 40,259 37,503 44,072 21,096 22,305 20,329 23,148 11 261,903 276,384 265,670 285,190 152,576 159,840 152,382 163,347 Time: ’ * 12 Interbank............................................................. 10,252 10,733 9,407 8,250 6,804 7,302 5,532 4,909 13 Other..................................................................... 429,844 444,725 459,754 484,468 249,446 256,355 263,148 276,298 14 Borrowings................................................................... 59,310 56,775 63,823 75,308 41,954 40,875 45,183 54,420 15 Total capital accounts................................................ 65,986 68,474 68,989 72,070 37,483 38,969 39,502 41,323 16 Memo: Number of banks........................................ 14,320 14,372 14,373 14,397 4,730 4,741 4,747 4,735 State member (all insured) Insured nonmember 17 Loans and investments, Gross.................................. 134,759 137,620 136,915 144,000 173,238 183,645 192,825 207,089 Loans: 18 Gross..................................................................... 100,968 100,823 98,889 102,278 113,074 118,609 124,503 135,754 19 Net......................................................................... (2) (2) 96,037 99,475 (2) (2) 119,658 130,626 Investments: 20 U.S. Treasury securities.................................... 12,004 14,720 16,323 18,847 18,223 22,109 24,934 26,882 21 Other...................................................................... 21,787 22,077 21,702 22,874 41,942 42,927 43,387 44,451 22 31,466 30,451 30,422 32,859 18,029 19,778 18,161 20,644 23 Total assets/total liabilities........................................ 179,787 180,495 179,645 189,573 198,157 21Q,874 214,167 231,130 24 141,995 143,409 142,061 149,481 172,707 184,210 190,644 206,141 Demand: 25 U.S. Govt............................................................. 443 467 869 429 940 853 894 917 26 Interbank.............................................................. 18,751 16,265 15,834 19,296 1,397 1,689 1,339 1,627 27 48,621 50,984 49,658 52,194 60,706 65,560 63,629 69,648 Time: 28 Interbank.............................................................. 2,771 2,712 3,074 2,384 676 719 799 957 29 71,409 72,981 72,624 75,177 108,989 115,389 123,980 132,991 30 14,380 12,771 15,300 17,318 2,976 3,128 3,339 3,569 31 Total capital accounts................................................. 12,773 13,105 12,791 13,199 15,730 16,400 16,696 17,547 32 Memo : Number of banks........................................ 1,064 1,046 1,029 1,023 8,526 8,585 8,597 8,639 Noninsured nonmember Total nonmember 33 Loans and investments, Gross.................................. 11,725 13,674 15,905 18,819 184,963 197,319 208,730 225,908 Loans: 34 Gross..................................................................... 9,559 11,283 13,209 16,336 122,633 129,892 137,712 152,091 35 Net........................................................................ (2) (2) 13,092 16,209 (2) (2) 132,751 146,836 Investments: 36 U.S. Treasury securities.................................... 358 490 472 1,054 18,581 22,599 25,407 27,936 37 1,808 1,902 2,223 1,428 43,750 44,829 45,610 45,880 38 3,534 5,359 4,362 6,496 21,563 25,137 22,524 27,141 39 Total assets/total liabilities........................................ 16,277 20,544 21,271 26,790 214,434 231,418 235,439 257,921 40 Deposits......................................................................... 8,314 11,323 11,735 13,325 181,021 195,533 202,380 219,467 Demand: 41 U.S. Govt............................................................. 11 6 4 4 951 859 899 921 42 Interbank.............................................................. 1,338 1,552 1,006 1,277 2,735 3,241 2,346 2,904 43 2,124 2,308 2,555 3,236 62,830 67,868 66,184 72,884 Time: 44 957 1,291 1,292 1,041 1,633 2,010 2,092 1,998 45 3,883 6,167 6,876 7,766 112,872 121,556 130,857 140,758 46 3,110 3,449 3,372 4,842 6,086 6,577 6,711 8,412 47 Total capital accounts................................................. 570 651 663 818 16,300 17,051 17,359 18,366 48 Memo : Number of banks........................................ 253 261 270 275 8,779 8,846 8,867 8,914 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 Financial Statistics □ June 1977 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, December 31, 1976<« Asset and liability items are shown in millions of dollars. Member banks1 All Insured Non Asset account commercialcommercial Large banks member banks banks banks1 Total All other New York City of Other City Chicago large 1Cash bank balances, items in process....................... 136,075 129,578 108,934 29,494 3,934 40,471 35,034 27,141 2 Currency and coin................................................... 12,124 12,115 9,066 832 220 3,048 4,965 3,059 25,968 25,968 25,968 3,585 1,423 10,627 10,334 4 Demand balances with banks in United States.. 36,815 32,964 19,711 7,389 196 3,324 8,804 17,103 5 Other balances with banks in United States___ 6,972 5,763 3,623 193 34 1,434 1,961 3,349 6 Balances with banks in foreign countries........... 5,823 4,509 4,046 836 23 2,102 1,085 1.777 7 Cash items in process of collection...................... 48,374 48,260 46,520 16,659 2,038 19,937 7,886 1,854 8 Total securities held—Book value.............................. 249,882 247,439 176,333 21,349 8,157 57,755 89,072 73,549 9 U.S. Treasury............................................................ 102,514 101,460 74,577 11,823 4,072 25,735 32,948 27,937 10 Other U.S. Govt, agencies...................................... 35,838 35,269 22,150 1,355 500 6,237 14,059 13,688 11 States and political subdivisions........................... 104,661 104,374 75,310 7,751 3,349 24,546 39,665 29,350 12 All other securities................................................... 6,732 6,220 4,217 421 236 1.191 2,370 2,515 n 137 116 78 47 30 60 14 Trading-account securities....................................... 7,904 7,882 7,650 3,251 832 3,246 322 253 15 U.S. Treasury........................................................ 5,011 5,011 4,861 2,386 582 1,705 188 151 16 Other U.S. Govt, agencies................................. 991 991 975 259 55 624 38 15 17 States and political subdivisions....................... 1,324 1,324 1,297 479 110 660 48 27 18 All other trading acct. securities....................... 440 440 440 127 86 209 17 19 137 116 78 47 30 60 20 Bank investment portfolios...................................... 241,979 239,557 168,683 18,098 7,325 54,510 88,750 73,296 21 U.S. Treasury........................................................ 97,503 96,449 69,111 9,437 3,490 24,030 32,760 27,786 22 Other U.S. Govt, agencies................................. 34,847 34,279 21,175 1,096 445 5,613 14,021 13,672 23 States and political subdivisions....................... 103,336 103,049 74,013 7,272 3,239 23,885 39,617 29,323 24 All other portfolio securities............................. 6,292 5,780 3,778 293 151 981 2,352 2,515 25 F.R. stock and corporate stock................................ 1,580 1,541 1,313 281 86 497 449 268 26 Federal funds sold and securities resale agreement. . 48,346 45,767 36,378 1,993 1,339 19,648 13,398 11,968 27 Commercial banks.................................................... 40,199 37,876 28,780 979 1,035 14,217 12,550 11,419 28 Brokers and dealers.................................................. 5,775 5,693 5,499 610 192 3,981 716 275 29 Others......................................................................... 2,373 2,198 2,099 404 113 1,450 132 273 30 Other loans, gross......................................................... 546,704 532,945 406,579 75,468 21,807 148,516 160,788 140,124 31 Less: Unearned income on loans......................... 12,577 12,526 8,614 561 82 2,856 5,117 3,963 32 Reserves for loan loss.................................. 6,192 6,116 4,899 1,185 300 1,751 1,663 1,293 33 Other loans, net........................................................ 527,934 514,303 393,066 73,722 21,426 143,909 154,008 134,869 Other loans, gross, by category 34 Real estate loans....................................................... 149,483 149,276 104,714 9,419 1,848 37,462 55,984 44,769 35 Construction and land development................ 16,644 16,638 13,153 2,801 382 6,039 3,931 3,491 36 Secured by farmland............................................ 6,721 6,710 2,868 16 14 295 2,543 3,853 37 Secured by residential.......................................... 84,922 84,784 60,487 4,433 944 21,816 33,294 24,435 38 1- to 4-family residences.................................. 80,394 80,265 57,201 3,992 845 20,639 31,726 23,193 39 FHA-insured or VA-guaranteed............... 7,956 7,919 6,859 611 49 3,670 2,529 1,097 40 Conventional................................................ 72,438 72,346 50,342 3,381 797 16,968 29,196 22,096 41 Multifamily residences..................................... 4,528 4,519 3,286 441 99 1,178 1,568 1,242 42 FHA-insured................................................. 388 387 323 122 25 95 82 64 43 Conventional................................................ 4,140 4,132 2,963 320 74 1,083 1,486 1,177 44 Secured by other properties............................... 41,195 41,144 28,206 2,169 509 9,311 16,216 12,989 45 Loans to financial institutions................................. 42,427 35,738 33,760 12,048 4,383 14,349 2,981 8,666 46 To REIT’s and mortgage companies............... 9,982 9,855 9,516 3,496 1,301 4,045 614 466 47 To domestic commercial banks......................... 4,531 2,774 2,196 606 127 1,126 331 2,335 48 To banks in foreign countries........................... 10,880 6,617 6,487 3,022 290 2,717 451 4,393 49 To other depositary institutions....................... 1,482 1,340 1,173 163 24 789 198 309 50 To other financial institutions........................... 15,552 15,151 14,389 4,761 2,641 5,672 1,315 1,164 51 Loans to security brokers and dealers................. 11,420 11,075 10,793 6,900 1,417 2,267 209 627 52 Other loans to purch./carry securities................. 4,032 4,015 3,329 336 317 1,701 975 703 53 Loans to farmers—except real estate................... 23,282 23,259 12,971 128 149 3,028 9,667 10,311 54 Commercial and industrial loans.......................... 182,920 177,128 145,849 37,893 11,018 55,108 41,830 37,071 55 Loans to individuals................................................ 118,408 118,051 82,896 6,003 1,820 29,066 46,005 35,512 56 Instalment loans......................................................... 94,078 93,751 65,619 4,428 1,040 23,385 36,766 28,458 57 Passenger automobiles.................................... 39,862 39,588 25,641 790 136 1,391 17,318 14,221 58 Residential-repair/modernize......................... 6,523 6,522 4,589 324 55 1,808 2,403 1,933 59 Credit cards and related plans....................... 14,358 14,353 12,675 1,649 669 6,935 3,422 1,683 60 Charge-account credit cards...................... 11,317 11,317 10,172 1,186 637 5,731 2,618 1,146 61 Check and revolving credit plans............. 3,041 3,036 2,504 463 33 1,205 803 537 62 Other retail consumer goods......................... 15,937 15,930 10,974 327 73 3,886 6,689 4,963 63 Mobile homes............................................... 8,743 8,742 6,217 173 28 2,231 3,785 2,525 64 Other............................................................... 7,195 7,189 4,757 154 44 1,654 2,904 2,438 65 Other instalment loans.................................... 17,397 17,358 11,739 1,338 106 3,360 6,935 5,658 66 Single-payment loans to individuals................. 24,330 24,300 17,276 1,575 781 5,681 9,239 7,054 67 All other loans.......................................................... 14,732 14,405 12,267 2,741 855 5,533 3,137 2,466 68 Total loans and securities, net.................................... 827,742 809,050 607,089 97,344 31,009 221,810 256,927 220,653 69 Direct lease financing.................................................. 5,111 5,111 4,865 1,088 129 2,910 738 246 70 Fixed assets—Buildings, furniture, real estate.... 19,539 19,448 14,616 1,949 662 5,680 6,325 4,923 71 Investment in unconsolidated subsidiaries............. 2,341 2,303 2,272 1,000 206 978 89 68 72 Customer acceptances outstanding........................... 9,505 9,147 8,758 4,125 111 4,169 288 747 73 Other assets................................................................... 30,498 29,384 26,355 9,322 1,651 11,257 4,126 4,142 1,030,811 1,004,020 772,890 144,323 37,767 287,274 303,526 257,922 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 banks1 All Insured Non Liability or capital commercialcommercial Large banks member account banks banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits......................................................... 336,800 332,283 260,090 60,201 10,267 92,746 96,876 76,711 76 Mutual savings banks............................................ 1,684 1,385 1,254 624 2 268 360 430 77 Other individuals, partnerships, and corporations.................................................... 255,433 254,221 192,616 32,600 7,552 72,262 80,201 62,818 78 U.S. Govt................................................................. 3,025 3,020 2,103 134 41 669 1,259 921 79 States and political subdivisions......................... 17,715 17,648 12,071 645 125 3,568 7,733 5,644 80 Foreign governments, central banks, etc........... 2,414 1,846 1,813 1,365 35 387 26 601 81 Commercial banks in United States................... 36,256 35,926 34,679 16,412 2,022 11,852 4,394 1,577 82 Banks in foreign countries.................................... 7,410 6,761 6,512 5,345 174 862 132 898 83 Certified and officers’ checks, etc........................ 12,864 11,475 9,041 3,076 318 2,878 2,769 3,822 84 Time deposits............................................................... 298,276 289,949 212,936 33,842 12,151 73,759 93,183 85,340 85 Accumulated for personal loan payments........ 146 146 118 10 108 28 86 Mutual savings banks............................................ 339 317 296 145 6 125 20 43 87 Other individuals, partnerships, and corporations................................................... 233,964 228,522 166,393 25,005 8,745 56,289 76,354 67,571 88 U.S. Govt................................................................. 675 675 514 66 27 205 216 161 89 States and political subdivisions......................... 44,165 43,885 30,407 1,203 861 12,835 15,508 13,758 90 Foreign governments, central banks, etc........... 10,044 8,481 8,218 4,574 1,408 2,185 52 1,827 91 Commercial banks in United States................... 7,139 6,709 5,858 2,148 1,011 1,878 820 1,281 92 Banks in foreign countries.................................... 1,803 1,213 1,132 702 94 231 106 670 93 Savings deposits........................................................... 203,251 202,770 145,835 11,157 2,983 54,407 77,288 57,416 94 Individuals and nonprofit organizations........... 188,391 187,922 134,596 10,209 2,782 49,570 72,036 53,795 95 Corporations and other profit organizations... 8,642 8,633 6,420 480 175 2,761 3,003 2,222 96 U.S. Govt................................................................. 6,103 6,100 4,719 388 25 2,060 2,245 1,384 97 All other................................................................... 115 114 100 79 16 4 15 98 Total deposits............................................................. 838,328 825,002 618,860 105,200 25,401 220,912 267,347 219,468 99 Federal funds purchased and securities sold under agreements to repurchase.................................. 72,847 70,188 66,899 15,000 8,643 34,537 8,719 5,948 100 Commercial banks.................................................. 42,819 40,613 39,195 6,523 7,241 20,844 4,587 3,624 101 Brokers and dealers................................................ 5,603 5,577 5,345 949 29 3,651 716 258 102 Others....................................................................... 24,425 23,998 22,360 7,529 1,373 10,041 3,416 2,066 103 Other liabilities for borrowed money..................... 7,304 5,120 4,840 2,500 49 1,919 372 2,464 104 Mortgage indebtedness.............................................. 776 774 548 66 15 271 196 227 105 Bank acceptances outstanding................................. 10,118 9,755 9,366 4,714 177 4,186 288 752 106 Other liabilities........................................................... 23,389 16,013 13,772 4,539 805 5,298 3,129 9,617 107 Total liabilities............................................................. 952,761 926,852 714,285 132,020 35,091 267,122 280,052 238,476 108 Subordinated notes and debentures....................... 5,161 5,098 4,082 1,124 83 1,823 1,053 1,079 109 Equity capital............................................................... 72,889 72,070 54,522 11,179 2,593 18,329 22,421 18,366 110 Preferred stock........................................................ 73 67 25 2 23 48 111 Common stock........................................................ 16,238 16,143 11,882 2,453 570 3,818 5,041 4,356 112 Surplus...................................................................... 29,205 28,791 21,407 4,229 1,243 7,655 8,280 7,798 113 Undivided profits.................................................... 25,505 25,266 19,929 4,406 728 6,422 8,373 5,575 114 Other capital reserves............................................ 1,868 1,803 1,279 91 52 432 705 589 115 Total liabilities and equity capital........................... 1,030,811 1,004,020 772,890 144,323 37,767 287,274 303,526 257,922 Memo items : 116 Demand deposits adjusted2...................................... 249,146 245,076 176,787 26,996 6,167 60,288 83,336 72,359 Average for last 15 or 30 days: 117 Cash and due from bank...................................... 129,797 125,226 106,860 29,510 4,372 39,824 33,154 22,936 118 Federal funds sold and securities purchased under agreements to resell........................... 48,860 45,794 35,440 2,307 1,425 17,825 13,883 13,420 119 Total loans*............................................................. 529,177 515,977 394,113 73,976 21,349 143,957 154.831 135,064 120 Time deposits of $100,000 or more.................... 139,381 132,893 109,644 28,517 9,682 43,372 28,073 29,736 121 Total deposits.......................................................... 816,113 803,019 600,420 98,932 24,869 213,361 263,259 215,693 122 Federal funds purchased and securities sold under agreements to repurchase................. 80,161 77,949 74,703 20,453 9,340 35,775 9,135 5,458 123 Other liabilities for borrowed money................. 6,936 4,686 4,396 2,165 53 1,842 335 2,540 124 Standby letters of credit outstanding..................... 13,493 12,969 11,340 6,494 921 3,162 762 2,153 125 Time deposits of $100,000 or more........................ 141,153 135,031 111,415 28,795 9,582 44,546 28,492 29,738 126 Certificates of deposit............................................ 117,258 113,275 92,891 24,451 8,276 35,878 24,285 24,368 127 Other time deposits................................................ 23,895 21,756 18,524 4,344 1,306 8,668 4,207 5,371 128 Number of banks....................................................... 14,672 14,397 5,758 12 9 154 5,583 3,914 >4 Data for insured commercial banks for Sept. 30, 1976, appear on commercial interbank and U.S. Govt., less cash items reported as in pp. A-70 and A-71. process of collection. 1 Member banks exclude and nonmember banks include 8 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 do member 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. Back data in lesser detail were shown in previous Bulletins. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Financial Statistics o June 1977 1.27 A L L L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account Apr. 6 Apr. 13 Apr. 20 Apr. 27 May 4 May 11 May 18 May 25 1 Total loans and investments........................................ 421,508 416,608 417,691 413,848 417,810 416,589 418,864 417,430 Loans: 2 Federal funds sold1................................................... 27,804 23,622 22,015 20,737 22,471 20,626 22,221 22,297 3 To commercial banks.......................................... 18,622 17,392 17,488 16,637 18,378 15,941 17,216 16,840 To brokers and dealers involving— 4 U.S. Treasury securities.................................. 6,226 4,143 2,517 2,284 2,130 2,589 2,805 3,334 5 Other securities................................................. 1,133 679 538 414 505 488 431 346 6 To others . .............................................................. 1,823 1,408 1,472 1,402 1,458 1,608 1,769 1,777 7 Other, gross................................................................ 290,470 290,674 290,555 290,663 292,452 292,498 293,685 292,717 8 Commercial and industrial................................ 117,285 117,416 117,555 117,647 117,998 117,928 117,752 117,620 9 Agricultural........................................................... 4,300 4,336 4,368 4,384 4,435 4,483 4,521 4,541 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities.............................. 2,756 2,269 1,284 1,382 1,141 1,171 1,661 1,720 8,043 7,852 8,648 7,999 8,458 8,406 8,928 8,178 To others: 12 U.S. Treasury securities.............................. 82 81 97 97 96 95 98 92 13 Other securities............................................. 2,492 2,535 2,503 2,489 2,484 2,493 2,525 2,519 To nonbank financial institutions: 14 Personal and sales finance cos., etc.............. 7,230 7,284 7,202 7,222 7,538 7,482 7,408 7,389 15 Other............................................................. 15,771 15,768 15,776 15,785 15,872 15,789 15,786 15,594 16 Real estate.............................................................. 65,005 65,151 65,302 65,424 65,539 65,768 65,957 66,072 To commercial banks: 2,112 2,220 1,896 2,014 1,944 1,978 1,953 1,880 18 Foreign............................................................... 5,383 5,667 5,497 5,505 5,626 5,735 5,743 5,616 19 Consumer instalment.......................................... 39,805 39,967 40,117 40,378 40,526 40,676 40,812 41,053 20 Foreign governments, official institutions, etc.. 1,704 1,745 1,653 1,662 1,615 1,641 1,626 1,584 21 All other loans....................................................... 18,502 18,383 18,657 18,675 19,180 18,853 18,915 18,859 22 Less: Loan loss reserve and unearned income 8,600 8,658 8,708 8,728 8,739 8,828 8,880 8,908 23 Other loans, net......................................................... 281,870 282,016 281,847 281,935 283,713 283,670 284,805 283,809 Investments: 24 U.S. Treasury securities.......................................... 51,488 50,241 50,369 47,696 48,413 48,713 48,390 47,673 25 Bills.......................................................................... 11,663 10,449 10,287 7,597 8,254 8,703 8,880 8,361 Notes and bonds, by maturity: 8,425 8,427 8,502 8,382 8,295 8,327 8,467 8,356 27,215 27,170 27,291 27,495 27,597 27,536 26,864 26,797 28 After 5 years...................................................... 4,185 4,195 4,289 A,222 4,267 4,147 4,179 4,159 29 Other securities.......................................................... 60,346 60,729 63,460 63,480 63,213 63,580 63,448 63,651 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills............................................................. 6,169 6,649 8,937 8,922 8,793 9,139 8,748 8,724 31 All other............................................................. 40,712 40,638 40,699 40,817 40,816 40,891 40,947 41,142 Other bonds, corporate stocks, and securities: 2,178 2,107 2,162 2,175 2,178 2,086 2,060 2,114 33 All other, including corporate stocks.......... 11,287 11,335 11,662 11,566 11,426 11,464 11,693 11,671 34 Cash items in process of collection.......................... 37,447 37,522 37,433 35,856 40,013 35,088 40,525 35,813 12,783 21,580 19,493 21,402 23,544 20,998 19,038 17,261 36 Currency and coin........................................................ 5,211 6,027 5,939 6,083 5,285 5,820 5,770 5,947 12,520 12,609 12,664 12,396 12,923 11,828 12,898 13,054 38 Investments in subsidiaries not consolidated......... 2,573 2,584 2,609 2,608 2,618 2,641 2,684 2,689 53,544 53,839 52,564 52,997 53,957 53,562 52,512 53,101 545,586 550,769 548,393 545,190 556,150 546,526 552,291 545,295 Deposits: 176,422 176,531 176,414 173,317 175,034 166,628 173,809 168,388 42 Individuals, partnerships, and corporations.. 127,687 130,418 128,207 125,598 124,046 122,621 125,296 121,511 43 States and political subdivisions....................... 5,912 6,080 5,986 6,205 6,729 5,751 5,844 5,896 44 U.S. Govt............................................................... 1,796 1,511 3,523 4,881 3,074 1,670 2,350 1,814 Domestic interbank: 25,451 24,679 24,785 22,780 25,461 23,072 25,136 24,188 968 868 850 804 944 816 828 783 Foreign: 47 Governments, official institutions, etc......... 1,090 1,062 1,039 988 1,357 1,013 1,379 1,103 48 Commercial banks........................................... 5,628 5,626 5,444 5,818 5,765 5,679 5,788 5,689 7,890 6,287 6,580 6,243 7,658 6,006 7,188 7,404 50 Time and savings deposits3.................................... 233,858 232,731 231, 776 231,856 232,665 234,393 235,143 235,910 95,398 95,034 94,687 94,681 94,906 95,007 94,890 94,606 Time: 52 Individuals, partnerships, and corporations 105,392 104,813 104,271 104,271 104,870 105,774 106,192 107,026 53 States and political subdivisions................... 19,597 19,717 19,687 19,908 19,823 20,198 20,340 20,644 5,125 4,890 4,'729 4,624 4,564 4,596 4,567 4,518 55 Foreign govts., official institutions, etc........ 6,927 6,845 6,943 6,940 7,080 7,375 7,665 7,573 56 Federal funds purchased, etc. 5.................................. 65,164 71,850 70,894 69,285 77,029 73,927 71,647 68,359 Borrowings from: 8 16 28 423 68 261 138 339 4,063 3,565 3,412 3,438 3,333 3,268 3,507 3,850 24,023 24,011 23,829 24,783 25,718 25,702 25,638 26,005 60 Total equity capital and subordinated 42,048 42,065 42,040 42,088 42,303 42,347 42,409 42,444 1 Includes securities purchased under agreements to resell. 5 Includes securities sold under agreements to repurchase. 2 Federal agencies only. 6 Includes minority interest in consolidated subsidiaries and deferred 3 Includes time deposits of U.S. Govt, and of foreign banks, which are tax portion of reserves for loans. not shown separately. 7 Includes reserves for securities and contingency portion of reserves 4 For amounts of these deposits by ownership categories, see Table 1.30. 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 Apr. 6 Apr. 13 Apr. 20 Apr. 27 May 4 May 11 May 18 May 25 1Total loans and investments........................................ 89,454 88,857 90,949 89,395 90,567 91,057 93,020 91,386 Loans: 2 Federal funds sold 1................................................... 2,123 2,591 2,922 3,213 3,298 3,489 4,421 3,860 3 1,236 1,512 1,797 2,173 2,362 2,021 2,773 2,357 To brokers and dealers involving— 4 U.S. Treasury securities.................................. 439 586 527 516 412 851 915 800 5 6 To others................................................................ 448 493 598 524 524 617 733 703 7 Other, gross................................................................ 68,375 68,098 67,275 66,897 66,941 66,858 67,457 67,001 8 Commercial and industrial................................. 34,074 33,847 33,750 33,543 33,505 33,326 33,230 33,222 9 120 123 126 128 135 134 136 138 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities.............................. 2,354 2,012 1,027 1,160 922 953 1,424 1,503 11 Other securities............................................. 4,460 4,305 4,946 4,422 4,440 4,412 4,963 4,387 To' others: 12 U.S. Treasury securities.............................. 11 10 25 25 25 25 25 24 13 Other securities............................................. 367 368 340 340 344 345 348 347 To nonbank financial institutions: 14 Personal and sales finance cos., etc.............. 2,377 2,386 2,278 2,357 2,512 2,497 2,340 2,374 15 Other.................................................................... 5,065 5,034 5,049 5,043 5,135 5,081 5,041 5,020 16 Real estate.............................................................. 8,875 8,841 8,823 8,806 8,736 8,779 8,772 8,788 To commercial banks: 17 Domestic............................................................ 561 848 540 610 557 685 598 606 18 Foreign................................................................ 2,338 2,568 2,428 2,455 2,479 2,594 2,591 2,593 19 Consumer instalment........................................... 3,974 4,002 4,009 4,017 4,031 4,041 4,060 4,069 20 Foreign governments, official institutions, etc. 391 435 383 388 357 389 369 356 21 3,408 3,319 3,551 3,603 3,763 3,597 3,560 3,574 22 Less : Loan loss reserve and unearned income on loans..................................................... 1,571 1,592 1,597 1,592 1,610 1,642 1,652 1,648 23 Other loans, net......................................................... 66,804 66,506 65,678 65,305 65,331 65,216 65,805 65,353 Investments: 24 U.S. Treasury securities........................................... 12,095 11,201 11,913 10,528 11,663 11,939 12,327 11,712 25 Bills.......................................................................... 3,107 2,447 3,229 1,633 2,988 3,428 3,824 3,253 Notes and bonds, by maturity: 26 Within 1 year..................................................... 875 894 898 891 843 910 1,149 1,040 27 1 to 5 years........................................................ 7,035 6,866 6,815 7,008 6,925 6,791 6,532 6,511 28 After 5 years...................................................... 1,078 994 971 996 907 810 822 908 29 Other securities.......................................................... 8,432 8,559 10,436 10,349 10,275 10,413 10,467 10,461 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 815 863 2,494 2,504 2,397 2,563 2,503 2,482 31 All other............................................................. 5,963 6,049 6,025 5,999 6,041 6,053 6,087 6,140 Other bonds, corporate stocks, and securities: 32 Certificates of participation2......................... 213 213 215 215 244 214 213 212 33 All other, including corporate stocks.......... 1,441 1,434 1,702 1,631 1,593 1,583 1,664 1,627 34 Cash items in process of collection.......................... 12,795 11,675 11,668 11,539 13,368 10,984 14,804 12,851 35 Reserves with F.R. Banks........................................... 2,406 6,533 4,324 4,160 6,256 5,514 4,543 4,067 36 Currency and coin........................................................ 839 919 945 944 885 919 877 865 37 Balances with domestic banks................................... 5,408 5,930 5,813 5,623 5,860 5,394 5,914 6,333 38 Investments in subsidiaries not consolidated......... 1,198 1,213 1,242 1,241 1,244 1,268 1,267 1,284 39 Other assets.................................................................... 18,548 18,968 17,770 17,967 19,055 18,761 18,377 18,744 40 Total assets/total liabilities.......................................... 130,648 134,095 132,711 130,869 137,235 133,897 138,802 135,530 Deposits: 41 Demand deposits........................................................ 49,050 48,343 48,050 47,230 49,421 45,651 50,507 48,625 42 Individuals, partnerships, and corporations.. 27,728 27,846 27,602 27,558 26,874 26,208 27,932 26,140 43 States and political subdivisions....................... 457 527 527 501 555 477 566 514 44 U.S. Govt................................................................ 128 165 583 749 550 259 424 305 Domestic interbank: 45 Commercial....................................................... 11,089 11,588 11,098 10,227 11,557 10,548 12,260 11,945 46 520 467 433 417 463 412 422 403 Foreign: 47 Governments, official institutions, etc......... 865 844 795 672 1,113 784 1,139 871 48 Commercial banks........................................... 4,199 4,181 4,161 4,419 4,331 4,328 4,351 4,335 49 Certified and officers’ checks.............................. 4,064 2,725 2,851 2,687 3,978 2,635 3,413 4,112 50 41,570 41,044 40,893 40,796 41,618 42,219 42,654 42,670 51 Savings4.................................................................. 10,924 10,892 10,907 10,934 10,929 10,943 10,918 10,841 Time: 52 Individuals, partnerships, and corporations 22,820 22,499 22,361 22,311 22,681 22,999 23,102 23,186 53 States and political subdivisions................... 1,277 1,276 1,305 1,324 1,467 1,474 1,504 1,514 54 Domestic interbank......................................... 2,045 1,988 1,967 1,891 1,875 1,867 1,803 1,760 55 Foreign govts., official institutions, etc........ 3,738 3,625 3,556 3,559 3,894 4,142 4,488 4,487 56 Federal funds purchased, etc.5.................................. 15,779 20,589 19,810 18,158 21,436 21,510 20,953 18,638 Borrowings from: 57 FR Ranks................................................................. 240 15 175 190 58 Others...................................................................... 1,861 1,565 1,427 1,429 1,284 1,211 1,438 1,589 59 Other liabilities, etc. 6................................................... 10,440 10,612 10,605 11,077 11,496 11,140 11,266 11,828 60 Total equity capital and subordinated 11,948 11,942 11,926 11,939 11,965 11,991 11,984 11,990 1 Includes securities purchased under agreements to resell. 5 Includes securities sold under agreements to repurchase. 2 Federal agencies only. 6 Includes minority interest in consolidated subsidiaries and deferred 3 Includes time deposits of U.S. Govt, and of foreign banks, which tax portion of reserves for loans. are not shown separately. 7 Includes reserves for securities and contingency portion of reserves 4 For amounts of these deposits by ownership categories, see Table 1.30. for loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A22 Domestic Financial Statistics □ June 1977 1.29 L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S O U T S ID E N EW Y O R K C IT Y Assets and Liabilities Millions of dollars, Wednesday figures 1977 Apr. 6 Apr. 13 Apr. 20 Apr. 27 May 4 May 11 May 18 May 25 1Total loans and investments........................................ 332,054 327,751 326,742 324,453 327,243 325,532 325,844 326,044 Loans: 2 Federal funds sold1................................................... 25,681 21,031 19,093 17,524 19,173 17,137 17,800 18,437 3 To commercial banks.......................................... 17,386 15,880 15,691 14,464 16,016 13,920 14,443 14,483 To brokers and dealers involving— 4 U.S. Treasury securities.................................. 5,787 3,557 1,990 1,768 1,718 1,738 1,890 2,534 5 Other securities................................................. 1,133 679 538 414 505 488 431 346 6 To others................................................................ 1,375 915 874 878 934 991 1,036 1,074 7 Other, gross................................................................ 222,095 222,576 223,280 223,766 225,511 225,640 226,228 225,716 8 Commercial and industrial................................ 83,211 83,569 83,805 84,104 84,493 84,602 84,522 84,398 9 Agricultural............................................................ 4,180 4,213 4,242 4,256 4,300 4,349 4,385 4,403 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities.............................. 402 257 257 222 219 218 237 217 11 3,583 3,547 3,702 3,577 4,018 3,994 3,965 3,791 To others: 12 U.S. Treasury securities.............................. 71 71 72 72 71 70 73 68 13 Other securities............................................. 2,125 2,167 2,163 2,149 2,140 2,148 2,177 2,172 To nonbank financial institutions: 14 Personal and sales finance cos., etc.............. 4,853 4,898 4,924 4,865 5,026 4,985 5,068 5,015 15 Other................................................................... 10,706 10,734 10,727 10,742 10,737 10,708 10,745 10,574 16 Real estate.............................................................. 56,130 56,310 56,479 56,618 56,803 56,989 57,185 57,284 To commercial banks: 17 Domestic............................................................. 1,551 1,372 1,356 1,404 1,387 1,293 1,355 1,274 18 Foreign............................................................... 3,045 3,099 3,069 3,050 3,147 3,141 3,152 3,023 19 Consumer instalment........................................... 35,831 35,965 36,108 36,361 36,495 36,635 36,752 36,984 20 Foreign governments, official institutions, etc. 1,313 1,310 1,270 1,274 1,258 1,252 1,257 1,228 21 All other loans....................................................... 15,094 15,064 15,106 15,072 15,417 15,256 15,355 15,285 22 Less : Loan reserve and unearned income on loans......................................................... 7,029 7,066 7,111 7,136 7,129 7,186 7,228 7,260 23 215,066 215,510 216,169 216,630 218,382 218,454 219,000 218,456 Investments: 24 U.S. Treasury securities........................................... 39,393 39,040 38,456 37,168 36,750 36,774 36,063 35,961 25 Bills.......................................................................... 8,556 8,002 7,058 5,964 5,266 5,275 5,056 5,108 Notes and bonds, by maturity: 26 7,550 7,533 7,604 7,491 7,452 7,417 7,318 7,316 27 1 to 5 years......................................................... 20,180 20,304 20,476 20,487 20,672 20,745 20,332 20,286 28 After 5 years...................................................... 3,107 3,201 3,318 3,226 3,360 3,337 3,357 3,251 29 Other securities........................................................... 51,914 52,170 53,024 53,131 52,938 53,167 52,981 53,190 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 5,354 5,786 6,443 6,418 6,396 6,576 6,245 6,242 31 All other............................................................. 34,749 34,589 34,674 34,818 34,775 34,838 34,860 35,002 Other bonds, corporate stocks, and securities: 32 Certificates of participation2......................... 1,965 1,894 1,947 1,960 1,934 1,872 1,847 1,902 33 All other, including corporate stocks.......... 9,846 9,901 9,960 9,935 9,833 9,881 10,029 10,044 34 Cash items in process of collection............................ 24,652 25,847 25,765 24,317 26,645 24,104 25,721 22,962 35 10,377 15,047 15,169 17,242 17,288 15,484 14,495 13,194 36 Currency and coin......................................................... 4,372 5,108 4,994 5,139 4,400 4,901 4,893 5,082 7,112 6,679 6,851 6,773 7,063 6,434 6,984 6,721 38 Investments in subsidiaries not consolidated......... 1,375 1,371 1,367 1,367 1,374 1,373 1,417 1,405 39 Other assets.................................................................... 34,996 34,871 34,794 35,030 34,902 34,801 34,135 34,357 40 Total assets/total liabilities.......................................... 414,938 416,674 415,682 414,321 418,915 412,629 413,489 409,765 Deposits: 41 Demand deposits......................................................... 127,372 128,188 128,364 126,087 125,613 120,977 123,302 119,763 42 Individuals, partnerships, and corporations.. 99,959 102,572 100,605 98,040 97,172 96,413 97,364 95,371 43 States and political subdivisions....................... 5,455 5,553 5,459 5,704 6,174 5,274 5,278 5,382 44 U.S. Govt................................................................ 1,668 1,346 2,940 4,132 2,524 1,411 1,926 1,509 Domestic interbank: 45 Commercial....................................................... 14,362 13,091 13,687 12,553 13,904 12,524 12,876 12,243 46 Mutual savings................................................. 448 401 All 387 481 404 406 380 Foreign: 47 Governments, official institutions, etc......... 225 218 244 316 244 229 240 232 48 Commercial banks........................................... 1,429 1,445 1,283 1,399 1,434 1,351 1,437 1,354 49 Certified and officers’ checks.............................. 3,826 3,562 3,729 3,556 3,680 3,371 3,775 3,292 50 Time and savings deposits3...................................... 192,288 191,687 190,883 191,060 191,047 192,174 192,489 193,240 51 Savings4................................................................. 84,474 84,142 83,780 83,747 83,977 84,064 83,972 83,765 Time: 52 Individuals, partnerships, and corporations 82,572 82,314 81,910 81,960 82,189 82,775 83,090 83,840 53 States and political subdivisions................... 18,320 18,441 18,382 18,584 18,356 18,724 18,836 19,130 54 Domestic interbank......................................... 3,080 2,902 2,762 2,733 2,689 2,729 2,764 2,758 55 Foreign govts., official institutions, etc........ 3,189 3,220 3,387 3,381 3,186 3,233 3,177 3,086 56 Federal funds purchased, etc. 5.................................. 49,385 51,261 51,084 51,127 55,593 52,417 50,694 49,721 Borrowings from: 57 F. R. Banks................................................................ 8 16 28 183 53 86 138 149 58 Others......................................................................... 2,202 2,000 1,985 2,009 2,049 2,057 2,069 2,261 59 Other liabilities, etc.6................................................... 13,583 13,399 13,224 13,706 14,222 14,562 14,372 14,177 60 Total equity capital and subordinated notes/debentures7................................................. 30,100 30,123 30,114 30,149 30,338 30,356 30,425 30,454 1 Includes securities purchased under agreements to resell. 5 Includes securities sold under agreements to repurchase. 2 Federal agencies only. 6 Includes minority interest in consolidated subsidiaries and deferred 3 Includes time deposits of U.S. Govt, and of foreign banks, which tax portion of reserves for loans. are not shown separately. 7 Includes reserves for securities and contingency portion of reserves 4 For amounts of these deposits by ownership categories, see Table 1.30. for loans. 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Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1977 Account and bank group Apr. 6 Apr. 13 Apr. 20 Apr. 27 May 4 May 11 May 18 May 25 Total loans (gross) and investments, adjusted1 1 Large banks............................................................... 409,374 405,654 407,015 403,925 406,227 407,498 408,575 407,618 2 New York City banks......................................... 89,228 88,089 90,209 88,204 89,258 89,993 91,301 90,071 3 Banks outside New York City.......................... 320,146 317,565 316,806 315,721 316,969 317,505 317,274 317,547 Total loans (gross), adjusted 4 Large banks................................................................ 297,540 294,684 293,186 292,749 294,601 295,205 296,737 296,294 5 New York City banks......................................... 68,701 68,329 67,860 67,327 67,320 67,641 68,507 67,898 6 Banks outside New York City.......................... 228,839 226,355 225,326 225,422 227,281 227,564 228,230 228,396 Demand deposits, adjusted2 111,728 112,819 110,673 109,800 106,486 106,798 105,798 106,573 25,038 24,915 24,701 24,715 23,946 23,860 23,019 23,524 9 Banks outside New York City.......................... 86,690 87,904 85,972 85,085 82,540 82,938 82,779 83,049 Large negotiable time CD’s included in time and savings deposits3 Total: 60,805 59,947 59,344 59,245 59,647 60,909 61,547 62,362 20,307 19,843 19,684 19,606 20,359 20,961 21,299 21,368 12 Banks outside New York City.......................... 40,498 40,104 39,660 39,639 39,288 39,948 40,248 40,994 Issued to IPC’s: 13 Large banks................................................................ 39,804 39,234 38,774 38,645 38,925 39,644 39,942 40,717 14 New York City Banks........................................ 13,859 13,562 13,441 13,381 13,642 13,978 14,016 14,128 15 Banks outside New York City.......................... 25,945 25,672 25,333 25,264 25,283 25,666 25,926 26,589 Issued to others: 16 Large banks................................................................ 21,001 20,713 20,570 20,600 20,722 21,265 21,605 21,645 17 New York City banks......................................... 6,448 6,281 6,243 6,225 6,7n 6,983 7,283 7,240 18 Banks outside New York City.......................... 14,553 14,432 14,327 14,375 14,005 14,282 14,322 14,405 All other large time deposits4 Total: 19 Large banks.................................................................... 25,337 25,472 25,392 25,493 25,549 25,653 25,792 26,029 20 New York City banks......................................... 5,213 5,170 5,115 5,070 5,160 5,020 5,108 5,132 21 Banks outside New York City.......................... 20,124 20,302 20,277 20,423 20,389 20,633 20,684 20,897 Issued to IPC’s: 22 Large banks............................................................... 14,021 14,041 13,911 13,945 14,098 14,033 14,101 14,162 23 New York City banks......................................... 3,879 3,827 3,790 3,785 3,915 3,777 3,814 3,794 24 Banks outside New York City.......................... 10,142 10,214 10,121 10,160 10,183 10,256 10,287 10,368 Issued to others: 11,316 11,431 11,481 11,548 11,451 11,620 11,691 11,867 26 New York City banks......................................... 1,334 1,343 1,325 1,285 1,245 1,243 1,294 1,338 27 Banks outside New York City.......................... 9,982 10,088 10,156 10,263 10,206 10,377 10,397 10,529 Savings deposits, by ownership category Individuals and nonprofit organizations: 87,870 87,458 86,976 86,984 87,272 87,406 87,265 87,101 9,873 9,848 9,802 9,815 9,798 9,820 9,783 9,752 30 Banks outside New York City.......................... 77,997 77,610 77,174 77,169 77,474 77,586 77,482 77,349 Partnerships and corporations for profit:5 31 Large banks................................................................ 5,029 5,024 5,000 5,030 5,032 5,039 5,071 5,093 32 New York City banks......................................... 560 561 564 568 576 577 569 570 33 Banks outside New York City.......................... 4,469 4,463 4,436 4,462 4,456 4,462 4,502 4,523 Domestic governmental units: 2,395 2,453 2,622 2,581 2,522 2,493 2,478 2,357 35 New York City banks......................................... 414 409 480 492 504 504 513 484 1,981 2,044 2,142 2,089 2,018 1,989 1,965 1,873 All other:6 37 Large banks................................................................ 104 99 89 86 80 69 76 55 38 New York City banks......................................... 77 74 61 59 51 42 53 35 39 Banks outside New York City.......................... 27 25 28 27 29 27 23 20 Gross liabilities of banks to their foreign branches 40 Large banks................................................................ 2,878 3,371 3,375 3,292 3,372 3,580 4,005 3,716 1,914 2,309 2,458 2,234 2,258 2,423 2,512 2,152 42 Banks outside New York City.......................... 964 1,062 917 1,058 1,114 1,157 1,493 1,564 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial..................................... 2,707 2,745 2,728 2,759 2,721 2,735 2,733 2,758 226 213 212 212 213 210 201 216 1,126 1,127 1,076 1,053 1,001 983 972 991 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). 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A24 Domestic Financial Statistics □ June 1977 1.31 L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S Com m ercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry group 1977 1976 1977 Apr. 27 May 4 May 11 May 18 May 25 Q4 I Mar. Apr. May Total loans classified2 1 Total......................................................... 95,990 96,337 96,337 96,015 95,855 4,041 -916 616 196 -135 Durable goods manufacturing: 2 Primary metals................................... 2,413 2,422 2,432 2,422 2,406 138 377 40 -164 -7 4,783 4,787 4,844 4,792 4,748 41 108 136 17 -35 4 Transportation equipment............... 2,381 2,363 2,371 2,382 2,416 -180 74 107 77 35 5 Other fabricated metal products... 1,907 1,924 1,913 1,911 1,889 22 181 116 16 -18 6 Other durable goods......................... 3,454 3,497 3,515 3,492 3,439 -249 90 156 110 -15 Nondurable goods manufacturing: 7 Food, liquor, and tobacco............... 3,286 3,220 3,206 3,267 3,285 128 -151 -20 -63 -1 8 Textiles, apparel, and leather......... 3,515 3,585 3,634 3,626 3,626 -504 381 132 138 111 9 Petroleum refining............................. 2,419 2,463 2,498 2,507 2,487 120 -305 -186 83 68 10 Chemicals and rubber...................... 2,774 2,767 2,755 2,742 2,725 18 131 113 85 -49 11 Other nondurable goods.................. 2,042 2,040 2,074 2,070 2,055 14 147 84 -2 13 12 Mining, including crude petroleum and natural gas.............................. 7,599 7,587 7,691 7,701 7,769 361 94 -14 184 170 Trade: 13 Commodity dealers........................... 2,007 1,999 1,904 1,887 1,789 377 204 28 -130 -218 14 Other wholesale.................................. 6,844 6,832 6,726 6,745 6,721 211 465 352 119 -123 15 Retail.................................................... 6,591 6,768 6,762 6,704 6,747 -264 405 304 84 156 16 Transportation....................................... 5,024 4,997 5,005 5,018 5,010 81 -140 -12 -141 -14 17 Communication...................................... 1,309 1,360 1,328 1,320 1,303 -131 -10 -246 -39 -6 18 Other public utilities............................. 5,388 5,599 5,466 5,366 5,385 -101 -61 -165 -152 -3 19 Construction........................................... 4,038 4,060 4,112 4,124 4,119 -203 64 44 65 81 20 Services..................................................... 11,068 11,130 11,164 11,198 11,261 129 398 93 115 193 21 All other domestic loans..................... 7,512 7,514 7,711 7,651 7,652 576 -303 229 -104 140 22 Bankers acceptances.............................. 3,957 3,783 3,682 3,704 3,674 3,285 -2,930 -488 14 -283 23 Foreign commercial and industrial loans................................................. 5,679 5,640 5,544 5,386 5,349 172 -135 -187 -116 -330 Memo: 24 Commercial paper included in total classified loans1................... 258 248 241 -216 18 -94 — 10 25 Total commercial and industrial loans of all large weekly reporting banks.............................. 117,647 117,998 117,928 117,752 117,620 4,269 203 1,336 856 -27 1976 1977 1976 1977 1977 Jan. 26 Feb. 23 Mar. 30 Apr. 27 May 25 IV I Mar. Apr. May “Term” loans classified3 26 Total......................................................... 45,290 45,735 45,841 45,893 46,107 450 630 r99 52 214 Durable goods manufacturing: 27 Primary metals................................... 1,449 1,481 1,521 1,344 1,342 103 204 40 -177 -2 28 Machinery........................................... 2,587 2,551 2,552 2,499 2,490 -90 -33 1 -53 -9 29 Transportation equipment............... 1,365 1,298 1,339 1,383 1,386 -29 -13 41 44 3 30 Other fabricated metal products... 767 815 820 841 826 20 44 5 21 -15 31 Other durable goods......................... 1,549 1,585 1,625 1,630 1,647 -111 40 5 17 Nondurable goods manufacturing: 32 Food, liquor, and tobacco............... 1,449 1,447 1,412 1,374 1,438 -37 14 -35 -38 64 33 Textiles, apparel, and leather......... 1,033 1,036 1,071 1,099 1,163 -46 -27 35 28 64 34 Petroleum refining............................. 1,925 1,901 1,770 1,805 1,824 64 -202 -131 35 19 35 Chemicals and rubber...................... 1,456 1,522 1,547 1,589 1,615 -20 103 25 42 26 36 Other nondurable goods.................. 975 987 1,032 1,101 1,172 19 78 45 69 71 37 Mining, including crude petroleum and natural gas.............................. 5,793 5,761 5,856 6,015 6,043 341 173 95 159 28 Trade: 38 Commodity dealers........................... 227 219 199 199 202 -9 -1 -20 3 39 Other wholesale................................. 1,483 1,478 1,479 1,489 1,519 69 16 1 10 30 40 Retail................................................... 2,087 2,212 2,268 2,274 2,353 -89 223 56 6 79 3,717 3,830 3,773 3,695 3,604 3 -164 -57 -78 -91 42 Communication...................................... 810 829 779 802 793 -56 -68 -50 23 -9 43 Other public utilities............................. 3,762 3,869 3,907 3,796 3,796 60 243 38 -111 44 Construction........................................... 1,638 1,683 1,661 1,720 1,722 -62 32 -22 59 2 45 Services..................................................... 5,212 5,216 5,111 5,188 5,283 31 113 -105 77 95 46 All other domestic loans...................... 2,383 2,352 2,433 2,408 2,465 181 -167 74 -25 57 47 Foreign commercial and industrial loans................................................. 3,623 3,663 3,686 3,642 3,424 108 62 23 -44 -218 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. 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Deposits and Commercial Paper A25 1.32 G R O S S D E M A N D D EP O S ITS of Individuals, Partnerships, and Corporations Billions of dollars, estimated daily-average balances All commercial banks Type of holder 1975 1976 1977 1972 1973 1974 Dec. Dec. Dec. Sept. Dec. Mar. June Sept. Dec. Mar. 1 All holders, IPC.......................................................... 208.0 220.1 225.0 227.0 236.9 227.9 234.2 236.1 250.1 242.3 2 Financial business....................................................... 18.9 19.1 19.0 19.0 20.1 19.9 20.3 19.7 22.3 21.6 109.9 116.2 118.8 118.7 125.1 116.9 121.2 122.6 130.2 125.1 65.4 70.1 73.3 76.5 78.0 77.2 78.8 80.0 82.6 81.6 1.5 2.4 2.3 2.2 2.4 2.4 2.5 2.3 2.7 2.4 12,3 12.4 11.7 10.6 11.3 11.4 11.4 11.5 12.4 11.6 All weekly reporting banks 1976 1977 1973 1974 1975 Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 7 All holders, IPC.......................................................... 118.1 119.7 124.4 123.8 124.3 128.5 127.4 123.0 124.7 127.5 8 Financial business....................................................... 14.9 14.8 15.6 16.8 16.2 17.5 16.7 15.6 16.7 16.7 66.2 66.9 69.9 68.4 68.7 69.7 69.5 67.4 67.8 68.5 28.0 29.0 29.9 29.6 30.4 31.7 32.0 31.1 31.5 33.5 2.2 2.2 2.3 2.4 2.5 2.6 2.2 2.4 2.2 2.3 12 Other.............................................................................. 6.8 6.8 6.6 6.6 6.6 7.1 7.1 6.5 6.5 6.6 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 C O M M E R C IA L P A P ER A N D B A N K E R S A C C EP T A N C ES O U T S T A N D IN G Millions of dollars, end of period 1976 1977 1974 1975 1976 Instrument Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper 1 A11 issuers...................................................................... 49,144 47,690 52,041 51,370 53,116 52,041 53,905 '54,432 54,671 56,333 Financial companies:1 Dealer-placed paper:2 2 Total...................................................................... 4,611 6,239 7,294 6,674 7,113 7,294 7,347 7,291 7,271 7,325 3 Bank-related....................................................... 1,814 1,762 1,900 1,703 1,825 1,900 1,895 1,929 1,839 1,778 Directly-placed paper:3 4 Total...................................................................... 31,839 31,276 32,416 31,880 32,691 32,416 32,753 32,392 33,709 34,288 5 Bank-related......................................................... 6,518 6,892 5,959 5,864 5,944 5,959 5,637 5,502 6,126 5,703 12,694 10,175 12,331 12,816 13,312 12,331 13,805 14,749 13,691 14,720 Dollar acceptances 7 Total.............................................................................. 18,484 18,727 22,523 20,312 20,678 22,523 22,362 22,187 22,694 22,544 Held bv: 8 Accepting banks....................................................... 4,226 7,333 10,442 7,959 9,031 10,442 8,183 7,991 7,787 7,410 9 Own bills.............................................................. 3,685 5,899 8,769 6,789 7,706 8,769 7,011 6,654 6,367 6,032 10 Bills bought......................................................... 542 1,435 1,673 1,170 1,325 1,673 1,172 1,337 1,421 1,378 F.R. Banks: 11 Own account....................................................... 999 1,126 991 337 188 991 191 322 '280 881 12 Foreign correspondents.................................... 1,109 293 375 387 349 375 374 440 435 394 13 Others........................................................................ 12,150 9,975 13,447 11,629 11,111 10,715 13,615 13,434 '14,191 13,858 Based on: 14 Imports into United States.................................. 4,023 3,726 4,992 4,737 4,667 4,992 4,992 5,138 4,983 5,050 15 Exports from United States................................. 4,067 4,001 4,818 4,715 4,628 4,818 5,137 5,074 5,222 5,264 16 All other.................................................................... 10,394 11,000 12,713 10,860 11,383 12,713 12,233 11,974 12,489 12,230 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 Financial Statistics □ June 1977 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Effective date Rate Effective date 1975—Feb. 3 9V4 1975—Oct. 27 10 9 18 24 Mar. 5 10 18 24 May 20 June 9 July 18 28 Aug. 12 Sept. 15 OOOO Rate Month Average rate m 1975—Sept. 7.88 Oct.. 7.96 Nov. 5 7V4 Nov. 7.53 Dec.. 7.26 Dec. 2 7 1/4 8% 1976—Jan.. 7.00 8 1976—Jan. 12 7 Feb.. 6.75 7% 21 6% Mar. 6.75 m Apr.. 6.75 June 1 7 May. 6.75 7% 7 7% June. 7.20 July. 7.25 7 Aug. 2 7 Aug. 7.01 Sept. 7.00 7% Oct. 4 6V4 Oct.. 6.78 7% Nov. 6.50 Nov. 1 evi Dec.. 6.35 7% Dec. 13 6% 1977—Jan.. 6.25 8 Feb.. 6.25 1977—May 13. 6% Mar. 6.25 31. 6% Apr. 6.25 May 6.41 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 1All 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 8All 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 Money and Capital Markets Averages, per cent per annum 1977 1977, week ending— Instrument 1974 1975 1976 Feb. Mar. Apr. May Apr. 30 May 7 May 14May 21May 28 Money market rates Prime commercial paper 1 1 90- to 119-day..................................... 10.05 6.26 5.24 4.76 4.75 4.75 5.26 4.75 4.90 5.20 5.40 5.50 2 4- to 6-month...................................... 9.87 6.33 5.35 4.82 4.87 4.87 5.35 4.86 4.98 5.25 5.53 5.60 3 Finance company paper, directly placed, 3- to 6- month 2.............................. 8.62 6.16 5.22 4.75 4.77 4.81 5.13 4.75 4.78 5.00 5.30 5.38 4 Prime bankers acceptances, 90-day 3........ 9.92 6.30 5.19 4.83 4.80 4.78 5.34 4.82 5.06 5.33 5.43 5.52 5Federal funds 4....................................... 10.51 5.82 5.05 4.68 4.69 4.73 5.35 4.82 5.15 5.31 5.34 5.45 Large negotiable certificates of deposit 6 3-month, secondary market 5............... 10.27 6.43 5.26 4.65 4.83 4.81 5.20 4.79 4.94 5.21 5.35 5.58 7 Lmnnth nrimnrv marlfftt 6................. 5.15 4.69 4.74 4.72 5.13 4.74 4.80 5.09 5.24 5.38 8 Euro-dollar deposits, 3-month 7............... 10.96 6.97 5.57 5.08 5.13 5.16 5.70 5.14 5.34 5.66 5.81 5.98 U.S. Govt, securities Bills: 3 Market yields: 9 3-month....................................... 7.84 5.80 4.98 4.67 4.60 4.54 4.96 4.51 4.75 4.96 5.05 5.06 10 6-month....................................... 7.95 6.11 5.26 4.90 4.88 4.80 5.20 4.84 5.01 5.23 5.30 5.25 11 1-year.......................................... 7.71 6.30 5.52 5.16 5.19 5.10 5.43 5.18 5.28 5.46 5.52 5.45 Rates on new issue: 12 7.886 5.838 4.989 4.662 4.613 4.540 4.942 4.518 4.807 4.822 4.996 5.143 13 7.926 6.122 5.266 4.896 4.883 4.790 5.193 4.838 5.052 5.131 5.234 5.353 Notes and bonds maturing in—9 14 9 to 12 months................................ 8.25 6.70 5.84 5.50 5.50 5.37 5.81 5.41 5.59 5.83 5.89 5.91 15 3 to 5 years..................................... 7.81 7.55 6.94 6.69 6.73 6.58 6.76 6.61 6.72 6.78 6.79 6.77 Constant maturities:10 16 1-yea r 8.18 6.76 5.88 5.47 5.50 5.44 5.84 5.54 5.67 5.87 5.93 5.91 17 2-yea r 6.31 6.09 6.09 r5.96 6.25 6.04 6.16 6.29 6.31 6.27 18 3-year.............................................. 7.82 7.49 6.77 6.44 6.47 r6.31 6.55 r6.36 6.49 6.58 6.57 6.56 19 5-year.............................................. 7.80 7.77 7.18 6.83 6.93 6.79 6.94 6.80 6.93 6.98 6.95 6.91 Capital market rates Government notes and bonds U.S. Treasury: Constant maturities:10 20 7-year.......................................... 7.71 7.90 7.42 7.16 7.20 7.11 7.26 7.14 7.27 7.31 7.25 7.21 21 10-year......................................... 7.56 7.99 7.61 7.39 7.46 7.37 7.46 7.40 7.46 7.50 7.46 7.41 22 20-year......................................... 8.05 8.19 7.86 7.64 7.73 7.67 7.74 7.69 7.74 7.78 7.74 7.70 23 30-year......................................... 7.80 7.73 7.80 7.76 7.81 7.85 7 79 7 76 24 Long-term 9..................................... 6.99 6.98 6.78 7.15 7.20 7.14 7.17 7.15 7.20 7.20 7.17 7.12 State and local:11 Moody’s series: 25 Aaa............................................. 5.89 6.42 5.66 5.17 5.21 5.18 5.23 5.17 5.23 5.25 5.20 5.25 26 Baa.............................................. 6.53 7.62 7.49 6.50 6.41 6.27 6.23 6.25 6.30 6.30 6.15 6.15 27 Bond Buyer series 12........................ 6.17 7.05 6.64 5.89 5.89 5.73 5.75 5.68 5.76 5.82 5.70 5.71 Corporate bonds Seasoned issues 13 28 All industries................................... 9.03 9.57 9.01 8.48 8.51 8.49 8.47 8.46 8.47 8.48 8.48 8.47 By rating groups: 29 Aaa............................................. 8.57 8.83 8.43 8.04 8.10 8.04 8.05 8.01 8.04 8.07 8.06 8.04 30 Aa............................................... 8.84 9.17 8.75 8.26 8.28 8.28 8.28 8.27 8.27 8.27 8.28 8.29 31 A................................................. 9.20 9.65 9.09 8.49 8.55 8.55 8.55 8.53 8.55 8.55 8.56 8.56 32 Baa.............................................. 9.50 10.61 9.75 9.12 9.12 9.07 9.01 9.03 9.01 9.01 9.00 9.00 Aaa utility bonds:14 33 New issue........................................ 9.33 9.40 8.48 8.22 8.25 8.26 8.33 8.31 8 32 8 34 34 Recently offered issues...................... 9.34 9.41 8.49 8.19 8.29 8.22 8.31 8.25 8.33 8.32 8.31 8.28 Common stocks Dividend/price ratio: 35 Preferred stocks............................... 8.23 8.38 7.97 7.55 7.56 4.47 4.39 4.36 4.33 4.40 4.34 4.50 36 Common stocks............................... 4.47 4.31 3.77 4.21 4.37 7.60 7.63 7.65* 7.58 7.67 7.59 7.66 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 basis. 2 Averages of the most representative daily offering rates published by 9 Unweighted averages for all outstanding notes and bonds in maturity finance companies for varying maturities in this range. ranges shown, based on daily closing bid prices. “Long-term” includes 3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of all bonds neither due nor callable in less than 10 years. the range of daily dealer closing rates offered for domestic issues; prior Yields on the more actively traded issues adjusted to constant data are averages of the most representative daily offering rate quoted by maturities by the U.S. Treasury, based on daily closing bid prices. dealers. 11 General obligations only, based on figures for Thursday, from 4 Weekly figures are 7-day averages of daily effective rates for the week Moody’s Investors Service. ending Wednesday; the daily effective rate is an average of the rates on 12 Twenty issues of mixed quality. a given day weighted by the volume of transactions at these rates. 13 Averages of daily figures from Moody’s Investors Service. 5 Averages of the daily midpoints as determined from the range of 14 Compilation of the Board of Governors of the Federal Reserve offering rates in the secondary market. System. 6 Posted rates, which are the annual interest rates most often quoted Issues included are long-term (20 years or more). New-issue yields are on new offerings of negotiable CD’s in denominations of $100,000 or based on quotations on date of offering; those on recently offered issues more. Rates prior to 1976 not available. Weekly figures are for Wednes (included only for first 4 weeks after termination of underwriter price day dates. restrictions), on Friday close-of-business quotations. Digitized for FRA7S AEvRer ages of daily quotations for the week ending Wednesday. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A28 Domestic Financial Statistics □ June 1977 1.37 STOCK MARKET Selected Statistics 1976 1977 Indicator 1974 1975 1976 Nov. | Dec. Jan. Feb. Mar. Apr. May Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 43.84 45.73 54.45 54.17 56.34 56.28 54.93 54.67 53.92 53,96 2 Industrial.................................................... 48.08 51.88 60.44 59.45 61.54 61.26 59.65 59.56 58.47 58.13 3 Transportation............................................ 31.89 30.73 39.57 39.28 41.77 41.93 40.59 40.52 41.51 43.25 4 Utility......................................................... 29.82 31.45 36.97 38.85 40.61 41.13 40.86 40.18 40.24 41.14 5 Finance....................................................... 49.67 46.62 52.94 53.25 57.45 57.86 55.65 54.84 54.30 54.80 6 Standard & Poor’s Corporation (1941-43 = 10)1.. 82.85 85.17 102.01 101.19 104.66 103.81 100.96 100.57 99.05 98.76 7 American Stock Exchange (Aug. 31,1973 = 100). 79.97 83.15 101.63 99.20 104.06 111.04 112.17 111.77 111.70 113.72 Volume of trading (thousands of shares)2 8 New York Stock Exchange........................... 13,883 18,568 21,189 19,370 23,621 23,562 19,310 17,814 17,380 18,700 9 American Stock Exchange............................ 1,908 2,150 2,565 2,211 3,095 3,268 2,830 2,580 2,500 2,440 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers and banks3............................................ 4,836 6,500 8,995 8,640 8,995 9,289 9,509 9,687 9,887 11 Brokers, total............................................... 3,980 5,540 8,166 7,790 8,166 8,469 8,679 8,891 9,078 12 Margin stock4.......................................... 3,840 5,390 7,960 7,610 7,960 8,270 8,480 8,690 8,880 13 Convertible bonds..................................... 137 147 204 178 204 196 197 199 196 14 Subscription issues................................... 3 3 2 2 2 3 2 2 2 15 Banks, total................................................. 856 960 829 850 829 820 830 796 809 16 Margin stocks.......................................... 815 909 786 801 786 776 r785 754 766 17 Convertible bonds..................................... 30 36 29 35 r29 27 27 25 25 18 Subscription issues.................................... 11 15 14 14 14 17 17 17 18 19 Unregulated nonmargin stock credit at banks5 ... 2,064 2,281 3,684 3,737 3,684 3,693 3,751 3,720 2,878 Memo: Free credit balances at brokers6 20 Margin-account........................................... 410 475 585 615 585 645 605 605 616 21 Cash-account............................................... 1,425 1,525 1,855 1,740 1,855 1,930 1,815 1,720 1,717 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 23 Under 40.......................... 45.4 24.0 12.0 14.0 12.0 15.0 17.6 '16.5 16.5 24 40-49................................ 23.0 28.8 23.0 32.0 23.0 '28.8 '34.9 '36.8 34.1 25 50-59............................... 13.9 22.3 35.0 27.0 35.0 '28.0 '23.4 '23.2 25.4 26 60-69............................... 8.8 11.6 15.0 13.0 15.0 13.0 '11.3 11.6 11.8 27 70-79............................... 4.6 6.9 8.7 8.0 8.7 '8.3 7.3 6.7 6.8 28 80 or more....................... 4.3 5.3 6.0 6.0 6.0 '5.8 '5.5 5.3 5.4 Special miscellaneous-account balances at brokers (end of period) 29 Total balances (millions of dollars)8... 7,010 7,290 8,776 8,576 8,776 '9,070 '9,170 '9,350 9,300 Distribution by equity status (per cent) 30 Net credit status............................. 41.1 43.8 41.3 41.1 41.3 42.3 42.9 42.3 41.4 Debit status, equity of— 31 60 per cent or more..................... 32.4 40.8 47.8 46.8 47.8 '46.6 45.5 46.0 46.3 32 Less than 60 per cent................... 26.5 15.4 10.9 12.1 10.9 '11.1 11.6 11.7 12.4 1 Effective July 1976 includes a new financial group, banks and in 5 Nonmargin stocks are those not listed on a national securities ex surance companies. With this change the index includes 400 industrial change and not included on the Federal Reserve System’s list of over-thestocks (formerly 425), 20 transportation (formerly 15 rail), 40 public counter margin stocks. At banks, loans to purchase or carry nonmargin utility (formerly 60), and 40 financial. stocks are unregulated; at brokers, such stocks have no loan value. 2 Based on trading for a 5 ^-hour day. 6 Free credit balances are in accounts with no unfulfilled commitments 3 Margin credit includes all credit extended to purchase or carry to the brokers and are subject to withdrawal by customers on demand. stocks or related equity instruments and secured at least in part by stock. 7 Each customer’s equity in his collateral (market value of collateral Credit extended by brokers is end-of-month data for member firms of less net debit balance) is expressed as a percentage of current collateral the New York Stock Exchange; June data for banks are universe totals; values. all other data for banks are estimates for all commercial banks based on 8 Balances that may be used by customers as the margin deposit re data from a sample of reporting banks. quired for additional purchases. Balances may arise as transfers based In addition to assigning a current loan value to margin stock generally, on loan values of other collateral in the customer’s margin account or Regulations T and U permit special loan values for convertible bonds deposits of cash (usually sales proceeds) occur. and stock acquired through exercise of subscription rights. 4 A distribution of this total by equity class is shown below. Note.—For table on “Margin Requirements” see p. A-10, Table 1.161. 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 1977 1974 1975 1976 Account Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Savings and loan associations 1 Assets................................ 295,545 338,233 391,999 376,188 379,747 385,013 389,173 391,999 398,299 403,591 409,357 414,276 2 Mortgages.......................... 249,301 278,590 323,130 307,766 311,847 315,742 319,273 323,130 326,056 329,086 333,703 338,922 3 Cash and investment 23,251 30,853 35,660 35,815 35,209 36,442 36,605 35,660 38,252 39,505 39,656 38,975 4 Other................................. 22,993 28,790 33,209 32,607 32,691 32,829 33,295 33,209 33,991 35,000 35,998 35,379 5 Liabilities and net worth....... 295,545 338,233 391,999 376,188 379,747 385,013 389,173 391,999 398,299 403,591 409,357 414,276 6 Savings capital.................... 242,974 285,743 336,030 318,227 323,800 327,252 329,833 336,030 341,211 344,616 352,194 354,273 7 Borrowed money................. 24,780 20,634 19,087 18,856 19,083 18,810 18,715 19,087 18,455 18,256 18,283 18,841 8 FHLBB........................... 21,508 17,524 15,708 15,495 15,832 15,636 15,571 15,708 15,029 14,661 14,325 14,788 9 Other.............................. 3,272 3,110 3,379 3,361 3,251 3,174 3,144 3,379 3,426 3,595 3,958 4,053 10 Loans in process................. 3,244 5,128 6,836 6,628 6,688 6,735 6,753 6,836 6,718 6,783 7,351 7,893 11 Other................................. 6,105 6,949 8,015 11,197 8,779 10,531 11,918 8,015 9,667 11,418 8,833 10,292 12 Net worth2......................... 18,442 19,779 22,031 21,280 21,398 21,685 21,954 22,031 22,248 22,518 22,696 22,977 13 Memo : Mortgage loan com mitments outstanding3.. 7,454 10,673 14,828 15,773 15,449 15,319 15,467 14,828 15,079 16,796 19,304 21,243 Mutual savings banks 14 Assets................................ 109,550 121,056 134,702 130,571 131,413 132,455 133,361 134,812 135,906 137,307 138,901 Loans: 15 Mortgage........................ 74,891 77,221 81,554 79,781 80,145 80,543 80,884 81,630 81,826 81,982 82,273 16 Other.............................. 3,812 4,023 5,192 5,210 5,478 5,549 5,801 5,183 5,956 6,254 6,389 Securities: 17 U.S. Govt........................ 2,555 4,740 5,911 5,733 5,851 5,796 5,836 5,840 5,917 6,096 6,360 18 State and local government. 930 1,545 2.420 2,339 2,359 2,429 2,466 2,417 2,295 2,366 2,431 19 Corporate and other4...... 22,550 27,992 33,676 32,319 32,432 32,793 33,074 33,793 34,475 35,088 35,928 20 Cash.................................. 2,167 2,330 2,374 1,552 1,581 1,695 1,668 2,355 1,800 1,835 1,823 21 Other assets........................ 2,645 3,205 3,574 3,576 3,567 3,649 3,632 3,593 3,637 3,686 3,668 22 Liabilities........................... 109,550 121,056 134,702 130,571 131,413 132,455 133,361 134,812 135,906 137,307 138,901 23 Deposits............................. 98,701 109,873 122,802 118,225 119,590 120,360 120,971 122,877 123,864 124,728 126,687 24 Regular: 5........................ 98,221 109,291 121,874 117,203 118,510 119,346 120,125 121,961 122,874 123,721 125,624 25 Ordinary savings.......... 64,286 69,653 74,483 72,872 73,484 73,610 73,857 74,535 74,621 75,038 76,260 26 Time and other............ 33,935 39,639 47,391 44,331 45,027 45,736 46,268 47,426 48,253 48,683 49,364 27 Other.............................. 480 582 928 1,022 1,080 1,014 846 916 989 1,007 1,063 28 Other liabilities................... 2,888 2,755 2,853 3,490 2,898 3,140 3,376 2,884 2,940 3,368 2,939 29 General reserve accounts.... 7,961 8,428 9,047 8,855 8,925 8,955 9,015 9,052 9,102 9,211 9,275 30 Memo : Mortgage loan com mitments outstanding 6.. 2,040 1,803 2,439 2,459 2,671 2,548 2,553 2,439 2,584 2,840 3,161 Life insurance companies 31 Assets................... 263,349 289,304 320,555 309,295 312,044 313,960 316,505 320,555 322,489 324,164 326,453 Securities: 32 Government....... 10,900 13,758 17,270 16,902 16,862 17,329 17,565 17,270 17,549 17,817 18,059 33 United States7 3,372 4,736 5,156 5,922' 5,150 5,448 5,606 5,156 5,291 5,382 5,283 34 State and local 3,667 4,508 5,551 5,324 5,364 5,446 5,467 5,551 5,614 5,666 5,626 35 Foreign 8........ 3,861 4,514 6,563 6,286 6,348 6,435 6,492 6,563 6.644 6,769 7,150 36 Business............ 119,637 135,317 157,625 150,303 152,125 153,298 154,502 157,625 159,464 160,683 161,319 37 Bonds............ 97,717 107,256 123,149 117,806 118,706 120,358 121,659 123,149 125,892 127,542 128,584 38 Stocks............ 21,920 28,061 34,476 32,497 33,419 32,940 32,843 34,476 33,572 33,141 32,735 39 Mortgages............ 86,234 89,167 91,581 89,891 90,217 90,323 90,808 91,581 91,615 91,646 91,874 40 Real estate............ 8,331 9,621 10,526 10,146 10,175 10,285 10,310 10,526 10,550 10,632 10,717 41 Policy loans.......... 22,862 24,467 25,849 25,383 25,505 25,607 25,710 25,849 25,921 26,051 26,221 42 Other assets.......... 15,385 16,971 17,704 16,670 17,160 17,118 17,610 17,704 17,390 17,335 18,263 Credit unions 43 Total assets/liabilities and capital...................... 31,948 38,037 44,897 42,266 43,079 43,415 44,089 44,835 44,906 45,798 47,111 47,348 44 Federal........................ 16,715 20,209 24,164 22,698 23,198 23,283 23,668 24,164 24,188 24,756 25,596 25,697 45 State........................... 15,233 17,828 20,733 19,658 19,881 20,132 20,421 20,671 20,718 21,042 21,515 21,651 46 Loans outstanding. 24,432 28,169 34,033 32,300 33,093 33,275 33,732 34,293 34,188 34,549 35,411 36,019 47 Federal............ 12,730 14,869 18,022 17,065 17,458 17,522 17,786 18,202 18,081 18,275 18,776 19,050 48 State............... 11,702 13,300 16,011 15,235 15,635 15,753 15,946 16,091 16,107 16,274 16,635 16,969 49 Savings............................. 27,518 33,013 39,264 36,752 37,436 37,854 38,281 38,968 39,344 39,981 41,161 41,394 50 Federal (shares)............. 14,370 17,530 21,149 19,783 20,167 20,358 20,597 20,980 21,165 21,559 22,346 22,524 51 State (shares and deposits) 13,148 15,483 18,115 16,969 17,269 17,496 17,684 17,988 18,179 18,442 18,815 18,870 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 Domestic Financial Statistics □ June 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 1977 1975 1976 Sept. 1976) H2 HI H2 Feb. Mar. Apr. U.S. Budget 1 Receipts....................................... 280,997 300,005 81,773 139,455 160,552 157,961 24,327 25,171 40,016 2 Outlays 1,2.................................. 326,105 366,466 94,746 185,097 181,369 193,719 30,880 34,646 35,547 3 Surplus, or deficit (—)............... -45,108 -66,461 -12,973 -45,642 -20,816 -35,758 -6,554 -9,475 4,469 4 Trust funds.............................. 7,419 2,409 -1,952 -3,125 5,503 -4,621 1,099 -1,441 647 5 Federal funds 3......................... -52,526 -68,870 -11,021 -42,517 -26,320 -31,137 -7,654 -8,033 3,822 Off-budget entities surplus, or deficit (—) 6 Federal Financing Bank outlays... -6,389 -5,915 -2,575 -2,693 -3,222 -5,176 -460 -843 581 7 Other i,4..................................... -1,652 -1,355 793 -236 -1,119 3,809 9 -83 -114 U.S. Budget plus off-budget, in cluding Federal Financing Bank 8 Surplus, or deficit ( —)................... -53,149 -73,731 -14,755 -48,571 -25,158 -37,125 -7,005 -10,402 4,936 Financed by: 9 Borrowing from the public 2. . .. 50,867 82,922 18,027 49,361 33,561 35,457 9,118 5,351 1,206 10 Cash and monetary assets (de crease, or increase ( —))....... -320 -7,796 -2,899 -2,046 -7,909 2,153 -1,194 5,610 -9,422 11 Other5.................................. 2,602 -1,396 -373 1,256 -495 -485 -920 -559 3,280 Memo: 12 Treasury operating balance (level, end of period).................................. 7,591 14,836 17,418 8,452 14,836 11,670 14,599 r9,023 17,763 13 F.R. Banks.................................. 5,773 11,975 13,299 7,286 11,975 10,393 12,179 r7,149 13,628 14 Tax and loan accounts................. 1,475 2,854 4,119 1,159 2,854 1,277 2,420 rl,874 4,135 15 Other demand accounts 6.............. 343 7 7 7 1 Outlay totals reflect the reclassification of the Export-Import Bank funds; miscellaneous liability (including checks outstanding) and asset from off-budget status to unified budget status. accounts; seignorage; increment on gold; net gain/loss for U.S. currency 2 Export-Import Bank certificates of beneficial interest (effective July valuation adjustment; net gain/loss for IMF valuation adjustment. 1, 1975) and loans to Pefco are treated as debt rather than asset sales. 6 Excludes the gold balance but includes deposits in certain commercial 3 Half years calculated as a residual of total surplus/deficit and trust depositories that have been converted from a time deposit to a demand fund surplus/deficit. deposit basis to permit greater flexibility in Treasury cash management. 4 Includes Pension Benefit Guaranty Corp., Postal Service Fund, Rural Electrification and Telephone Revolving Fund, Rural Telephone Bank, Source.—“Monthly Treasury Statement of Receipts and Outlays of and Housing for the Elderly or Handicapped Fund. the U.S. Government,” Treasury Bulletin, and U.S. Budget, Fiscal Year 5 Includes: Public debt accrued interest payable to the public; deposit 1978. NOTES TO TABLE 1.38 1 Stock of the Federal Home Loan Bank Board (FHLBB) is included Even when revised, data for current and preceding year are subject to in “other assets.” further revision. 2 Includes net undistributed income, which is accrued by most, but not Mutual savings banks: Estimates of National Association of Mutual all, associations. Savings Banks for all savings banks in the United States. Data are re 3 Excludes figures for loans in process, which are shown as a liability. ported on a gross-of-valuation-reserves basis. 4 Includes securities of foreign governments and international organiza Life insurance companies: Estimates of the Institute of Life Insurance tions and nonguaranteed issues of U.S. Govt, agencies. for all life insurance companies in the United States. Annual figures are 5 Excludes checking, club, and school accounts. annual-statement asset values, with bonds carried on an amortized basis 6 Commitments outstanding (including loans in process) of banks in and stocks at year-end market value. Adjustments for interest due and New York State as reported to the Savings Banks Assn. of the State of accrued and for differences between market and book values are not New York. made on each item separately but are included, in total, in “other assets.” 7 Direct and guaranteed obligations. Excludes Federal agency issues Credit unions: Estimates by the National Credit Union Administration not guaranteed, which are shown in this table under “business” securities. for a group of Federal and State-chartered credit unions that account for 8 Issues of foreign governments and their subdivisions and bonds of the about 30 per cent of credit union assets. Figures are preliminary and International Bank for Reconstruction and Development. revised annually to incorporate recent benchmark data. Note.—Savings and loan associations: Estimates by the FHLBB for all associations in the United States. Data are based on monthly reports of Federally insured associations and annual reports of other associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Fiscal year Calendar year Transition quarter Source or type (July- 1975 1976 1977 1975 1976 Sept. 1976) H2 HI H2 Feb. Mar. Apr. Receipts 1 A11 sources..................................... 280,997 300,005 81,773 139,455 160,552 157,961 24,327 25,171 40,016 2 Individual income taxes, net............ 122,386 131,603 38,801 65,835 65,767 75,094 8,515 . 6,131 18,660 3 Withheld.................................... 122,071 123,408 32,949 59,549 63,859 68,023 11,398 12,961 11,797 4 Presidential Election Campaign Fund................................... 32 34 1 33 1 8 10 7 5 Non withheld.............................. 34,296 35,528 6,809 7,649 27,879 8,426 1,154 2,719 14,581 6 Refunds..................................... 34,013 27,367 958 1,362 26,004 1,356 4,045 9,559 7,725 7 Corporation income taxes: 8 Gross receipts........................... 45,747 46,783 9,808 18,810 27,973 20,706 1,311 9,131 8,461 9 Refunds..................................... 5,125 5,374 1,348 2,735 2,639 2,886 363 412 488 10 Social insurance taxes and contribu tions, net................................. 86,441 92,714 25,760 40,886 51,828 47,596 10,764 7,412 10,703 11 Payroll employment taxes and contributions 1..................... 71,789 76,391 21,534 35,443 40,947 AO,All 9,110 6,569 6,670 12 Self-employment taxes and contributions 1.................... 3,417 3,518 269 268 3,250 286 247 290 2,328 13 Unemployment insurance............ 6,771 8,054 2,698 2,861 5,193 4,379 997 126 1,296 14 Other net receipts 2.................... 4,466 4,752 1,259 2,314 2,438 2,504 410 428 409 15 Excise taxes................................... 16,551 16,963 4,473 8,761 8,204 8,910 1,294 1,283 1,392 16 Customs........................................ 3,676 4,074 1,212 1,927 2,147 2,361 347 466 393 17 Estate and gift............................... 4,611 5,216 1,455 2,573 2,643 2,943 1,890 625 376 18 Miscellaneous receipts 3................. 6,711 8,026 1,612 3,397 4,630 3,236 568 534 517 Outlays 19 All types 4................................... 326,105 366,466 94,746 185,097 181,369 193,719 30,880 34,646 35,547 20 National defense.......................... 86,585 89,996 22,518 46,214 44,052 45,002 8,131 8,572 7,976 21 International affairs 4................... 5,862 5,067 1,997 2,574 2,668 3,028 381 521 548 22 General science, space, and technology............................. 3,989 4,370 1,161 2,415 1,708 2,377 333 403 356 23 Natural resources, environment, and energy............................ 9,537 11,282 3,324 5,018 6,900 7,206 895 1,180 1,077 24 Agriculture.................................. 1,660 2,502 584 1,489 417 2,019 350 564 737 25 Commerce and transportation....... 16,010 17,248 4,700 11,496 5,766 9,643 -323 1,265 1,316 26 Community and regional development.......................... 4,431 5,300 1,530 2,548 2,411 3,192 480 496 579 27 Education, training, employment, and social services................. 15,248 18,167 5,013 8,423 9,116 9,083 1,585 1,645 1,604 28 Health......................................... 27,647 33,448 8,720 16,681 17,008 19,329 3,064 2,674 3,241 29 Income security............................ 108,605 127,406 32,796 61,655 65,336 65,456 11,719 13,045 11,632 30 Veterans benefits and services..... 16,597 18,432 3,962 9,010 9,450 8,542 1,606 1,611 1,684 31 Law enforcement and justice........ 2,942 3,320 859 1,589 1,784 1,839 244 292 305 32 General government..................... 3,089 2,927 878 1,929 870 1,734 285 284 113 33 Revenue sharing and general purpose fiscal assistance......... 7,005 7,119 2,024 3,528 3,664 4,729 44 31 2,103 34 Interest5....................................... 30,974 34,589 7,246 15,180 18,560 18,409 2,674 2,522 2,751 35 Undistributed offsetting receipts 5, -14,075 -14,704 -2,567 -4,652 -8,340 -7,869 -588 -459 -475 1 Old-age, disability and hospital insurance, and Railroad Retirement 5 Effective September 1976, “Interest” and “Undistributed Offsetting accounts. Receipts” reflect the accounting conversion for the interest on special 2 Supplementary medical insurance premiums, Federal employee re issues for U.S. Govt, accounts from an accrual basis to a cash basis. tirement contributions and Civil Service retirement and disability fund. 6 Consists of interest received by trust funds, rents and royalties on 3 Deposits of earnings by F.R. Banks and other miscellaneous receipts. the Outer Continental Shelf, and U.S. Govt, contributions for em 4 Outlay totals reflect the reclassification of the Export-Import Bank ployee retirement. from off-budget status to unified budget status. Export-Import Bank certificates of beneficial interest (effective July 1, 1975) and loans to Pefco are treated as debt rather than asset sales. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A32 Domestic Financial Statistics □ June 1977 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1973 1974 1975 1976 1977 Item Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding....... 480.7 486.2 504.0 544.1 587.6 631.9 2646.4 665.5 680.1 2 Public debt securities............ 469.1 474.2 492, 533.7 576.6 620.4 634.7 653.5 669.2 3 Held by public................. 339.4 336.0 351. 387.9 437.3 470.8 488.6 506.4 524.3 4 Held by agencies.............. 129.6 138.2 141. 145.3 139.3 149.6 146.1 147.1 144.9 5 Agency securities.................. 11.6 12.0 11, 10.9 10.9 11.5 11.6 12.0 10.9 6 Held by public................. 9.6 10.0 9. 9.0 8.9 9.5 29.7 10.0 9.1 7 Held by agencies.............. 2.0 2.0 2. 1.9 2.0 2.0 1.9 1.9 1.8 8 Debt subject to statutory limit 470.8 476.0 493.0 534.2 577.8 621.6 635.8 654.7 670.3 9 Public debt securities............ 468.4 473.6 490. 532.6 576.0 619.8 634.1 652.9 668.6 10 Other debt1......................... 2.4 2.4 2. 1.6 1.7 1.7 1.7 1.7 1.7 11 Memo: Statutory debt limit.. 475.7 495.0 495.0 577.0 595.0 636.0 636.0 682.0 682.0 I 1 Includes guaranteed debt of Govt, agencies, specified participation $0.5 billion due to a retroactive reclassification of the Export-Import Bank certificates, notes to international lending organizations, and District of certificates of beneficial interest from loan asset sales to debt, effective Columbia stadium bonds. July 1, 1975. 2 Gross Federal debt and Agency debt held by the public increased Note.—Data from Treasury Bulletin. (U.S. Treasury Dept.) 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 1976 Jan. Feb. Mar. Apr. May 1 Total gross public debt1..................... 469.9 492.7 576.6 653.5 653.9 663.3 669.2 671.0 672.1 By type: 2 Interest-bearing debt.......................... 467.8 491.6 575.7 652.5 653.0 662.3 668.2 668.5 671.0 3 Marketable................................... 270.2 282.9 363.2 421.3 424.0 431.6 435.4 434.1 431.4 4 Bills.......................................... 107.8 119.7 157.5 164.0 164.0 164.2 164.3 162.0 157.9 5 Notes........................................ 124.6 129.8 167.1 216.7 219.5 225.9 229.6 230.7 230.2 6 Bonds....................................... 37.8 33.4 38.6 40.6 40.5 41.6 41.5 41.4 43.3 7 Nonmarketable2............................ 197.6 208.7 212.5 231.2 229.0 230.7 232.8 234.4 239.5 8 Convertible bonds3.................... 2.3 2.3 2.3 2.3 2.3 2.3 2.2 2.2 2.2 9 Foreign issues4......................... 26.0 22.8 21.6 22.3 22.2 22.1 22.1 21.9 21.8 10 Savings bonds and notes........... 60.8 63.8 67.9 72.3 72.6 73.0 73.4 73.9 74.3 11 Govt, account series5............... 108.0 119.1 119.4 129.7 126.8 127.8 128.2 129.0 133.0 By holder:6 12 U.S. Govt, agencies and trust funds 129.6 141.2 139.3 147.1 144.0 144.4 145.0 13 F.R. Banks.................................. 78.5 80.5 87.9 97.0 94.1 95.8 96.0 14 Private investors........................... 261.7 271.0 349.4 409.5 415.8 423.1 428.3 15 Commercial banks.................... 60.3 55.6 85.1 102.5 101.0 104.5 106.0 16 Mutual savings banks............... 2.9 2.5 4.5 5.5 5.6 5.7 5.2 17 Insurance companies................. 6.4 6.1 9.3 12.3 12.2 12.2 12.2 18 Other corporations................... 10.9 11.0 20.2 25.5 27.8 27.9 26.0 19 State and local governments.... 29.2 29.2 33.8 41.6 44.4 42.3 43.4 Individuals: 20 Savings bonds....................... 60.3 63.4 67.3 72.0 72.4 72.8 72.8 21 Other securities...................... 16.9 21.5 24.0 28.8 28.6 28.7 29.1 22 Foreign and international7........ 55.5 58.4 66.5 78.1 80.3 82.3 84.7 23 Other miscellaneous investors8. . 19.3 23.2 38.6 43.2 43.4 46.7 48.9 1 Includes $2.5 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 Apr. 30, 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 that have accounts, and Govt.-sponsored agencies. 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. Data by type of security from Monthly Statement of the Public Debt of 5 Held only by U.S. Govt, agencies and trust funds. the United States, U.S. Treasury Dept.; data by holder from Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A33 1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1977 1977 Type of holder 1975 1976 1975 1976 Mar. Apr. Mar. Apr. All maturities 1 to 5 years 1All holders...................................................................... 363,191 421,276 435,379 434,065 112,270 141,132 '147,108 144,528 2 U.S. Govt, agencies and trust funds................................. 19,347 16,485 15,788 15,528 7,058 6,141 6,158 5,950 3F. R. Banks................................................................... 87,934 96,971 95,987 99,837 30,518 31,249 30,966 31,649 4 Private investors.............................................................. 255,860 307,820 323,604 318,699 74,694 103,742 109,984 106,929 5 Commercial banks...................................................... 64,398 78,262 80,133 78,234 29,629 40,005 42,980 43,089 6 Mutual savings banks.................................................. 3,300 4,072 4,519 4,510 1,524 2,010 2,186 2,141 7 Insurance companies................................................... 7,565 10,284 10,091 9,959 2,359 3,885 3,827 3,810 8 Nonfinancial corporations........................................... 9,365 14,193 14,284 14,448 1,967 2,618 3,708 3,530 9 Savings and loan associations....................................... 2,793 4,576 5,605 5,288 1,558 2,360 2,734 2,521 10 State and local governments........................................ 9,285 12,252 12,625 16,102 1,761 2,543 2,848 4,590 11 All others................................................................... 159,154 184,182 196,347 190,159 35,894 50,321 51,701 47,247 Total, within 1 year 5 to 10 years 12 All holders...................................................................... 199,692 211,035 218,080 216,788 26,436 43,045 43,204 45,806 13 U.S. Govt, agencies and trust funds................................ 2,769 2,012 1,957 1,910 3,283 2,879 2,149 2,145 14F. R. Banks.................................................................... 46,845 51,569 49,695 52,459 6,463 9,148 9,901 10,192 15Private investors.............................................................. 150,078 157,454 166,428 162,419 16,690 31,018 31,154 33,469 16 Commercial banks...................................................... 29,875 31,213 29,881 27,270 4,071 6,278 6,559 7,156 17 Mutual savings banks.................................................. 983 1,214 1,333 1,357 448 567 703 717 18 Insurance companies................................................... 2,024 2,191 2,050 1,756 1,592 2,546 2,645 2,833 19 Nonfinancial corporations............................................ 7,105 11,009 9,959 10,250 175 370 337 422 20 Savings and loan associations....................................... 914 1,984 2,627 2,511 216 155 174 184 21 State and local governments........................................ 5,288 6,622 6,557 8,690 782 1,465 1,416 1,240 22 All others................................................................... 103,889 103,220 114,020 110,585 9,405 19,637 19,319 20,917 Bills, within 1 year 10 to 20 years 23 All holders...................................................................... 157,483 163,992 164,264 161,977 14,264 11,865 11,718 11,685 24 U.S. Govt, agencies and trust funds................................. 207 449 305 285 4,233 3,102 3,102 3,102 25 F. R. Banks.................................................................... 38,018 41,279 39,455 41,689 1,507 1,363 1,380 1,410 26 Private investors.............................................................. 119,258 122,264 124,504 120,003 8,524 7,400 7,236 7,173 27 Commercial banks...................................................... 17,481 17,303 13,974 11,218 552 339 322 320 28 Mutual savings banks.................................................. 554 454 436 476 232 139 136 135 29 Insurance companies.................................................... 1,513 1,463 1,123 816 1,154 1,114 1,084 1,085 30 Nonfinancial corporations............................................ 5,829 9,939 8,745 8,771 61 142 191 171 31 Savings and loan associations....................................... 518 1,266 1,617 1,515 82 64 55 56 32 State and local governments........................................ 4,566 5,556 5,287 7,255 896 718 663 666 33 All others................................................................... 88,797 86,282 93,322 89,951 5,546 4,884 4,7$5 4,741 Other, within 1 year Over 20 years 34 All holders...................................................................... 42,209 47,043 53,816 54,811 10,530 14,200 15,269 15,258 35 U.S. Govt, agencies and trust funds................................. 2,562 1,563 1,652 1,625 2,053 2,350 2,421 2,421 8,827 10,290 10,240 10,770 2,601 3,642 4,045 4,127 37 Private investors.............................................................. 30,820 35,190 41,924 42,416 5,876 8,208 8,803 8,709 38 Commercial banks...................................................... 12,394 13,910 15,907 16,052 271 427 390 399 39 Mutual savings banks.................................................. 429 760 897 881 112 143 162 161 40 Insurance companies.................................................... 511 728 927 940 436 548 485 475 41 Nonfinancial corporations............................................ 1,276 1,070 1,214 1,479 57 55 89 73 42 396 718 1,010 996 22 13 15 15 43 State and local governments........................................ 722 1,066 1,270 1,435 558 904 1,140 917 44 All others................................................................... 15,092 16,938 20,698 20,634 4,420 6,120 6,522 6,669 Note.—Direct public issues only. Based on Treasury Survey of Owner banks, 467 mutual savings banks, and 724 insurance companies, each ship from Treasury Bulletin (U.S. Treasury Dept.). about 90 per cent; (2) 447 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) 499 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 April 30, 1977; (1) 5,498 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 Financial Statistics □ June 1977 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1977 1977, week ending Wednesday— Item 1974 1975 1976 Feb. Mar. Apr. Apr. 20 Apr. 27 May 4 May 11 May 18 May 25 1 U.S. Govt, securities............ 3,579 6,027 10,449 12,871 11,128 13,597 15,260 14,801 15,719 11,392 7,976 10,557 By maturity: 2 Bills................................ 2,550 3,889 6,676 7,593 7,445 8,829 9,502 9,304 10,890 6.784 4,910 6,610 3 Other within 1 year......... 250 223 210 283 234 215 163 285 222 209 172 122 4 1-5 years........................ 465 1,414 2,317 3,262 2,373 2,727 3,366 3,365 2,487 2,001 1,332 2,631 5 5-10 years...................... 256 363 1,019 1,388 883 1,592 1,905 1,606 1,922 1.784 1,261 945 6 Over 10 years................. 58 138 229 346 193 235 325 240 199 613 300 249 By type of customer: 7 U.S. Govt, securities dealers..................... 652 885 1,360 1,537 1,492 1,523 1,603 1,301 1,667 867 975 1,068 8 U.S. Govt, securities brokers.................... 965 1,750 3,407 4,428 3,300 4,795 5,478 5,742 6,055 4,961 2,722 4,274 9 Commercial banks.......... 998 1,451 2,426 3,013 2,528 2,705 3,047 2,884 2,820 2,201 1,636 2,176 10 All others1...................... 964 1,941 3,257 3,893 3,808 4,575 5,132 r4,875 5,178 3,362 2,651 3,039 11 Federal agency securities 965 1,043 1,548 1,579 1,590 2,010 2,512 a, 800 1,424 1,436 1,768 2,288 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 1977 1977, week ending Wednesday— Item 1974 1975 1976 Feb. Mar. Apr. Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20. Apr. 27 Positions2 1U.S. Govt, securities............ 2,580 5,884 7,592 6,251 5,266 5,911 5,273 3,770 7,106 7,431 7,667 2,860 2 Bills................................ 1,932 4,297 6,290 4,646 4,864 5,215 5,000 3,298 6,345 6,978 6,566 2,279 3 Other within 1 year......... -6 265 188 193 237 253 276 292 195 223 278 280 4 1-5 years........................ 265 886 515 587 -14 211 -94 13 119 -46 403 237 5 5-10 years...................... 302 300 402 417 52 101 1 65 353 184 216 -83 6 Over 10 years................. 88 136 198 407 128 131 91 103 95 92 203 148 7 Federal agency securities.... 1,212 943 729 466 383 688 394 216 581 562 1,049 648 Sources of financing3 8 All sources......................... 3,977 6,666 8,715 9,017 9,433 10,302 10,482 8,671 8,360 11,647 12,799 9,020 Commercial banks: 9 New York City............... 1,032 1,621 1,896 1,360 1,552 1,948 1,581 1,183 1,380 2,110 2,761 1,757 10 Outside New York City... 1,064 1,466 1,660 1,727 1,910 2,174 1,944 1,288 2,067 3,049 2,629 1,383 11 Corporations1.................... 459 842 1,479 2,038 2,131 1,891 2,050 1,851 1,744 2,213 2,141 1,674 12 Allother............................ 1,423 2,738 3,681 3,892 3,839 4,289 4,908 4,350 3,169 4,275 5,268 4,207 1A11 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 to 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 A35 1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1976 1977 Agency 1973 1974 1975 Oct. Nov. Dec. Jan. Feb. Mar. 1 Federal and Federally sponsored agencies.......... 71,594 89,381 97,680 103,865 103,415 103,308 103,487 r102,961 103,673 2 Federal agencies.............................................. 11,554 12,719 19,046 22,676 22,645 22,419 22,168 22,307 22,413 3 Defense Department1.................................. 1,439 1,312 1,220 1,128 1,117 1,113 1,095 1,086 1,077 2,625 2,893 7,188 8,353 8,336 8,574 8,557 8,580 8,615 5 Federal Housing Administration4................. 415 440 564 589 585 575 579 581 592 6 Government National Mortgage Association Participation Certificates5..................... 4,390 4,280 4,200 4,145 4,145 4,120 3,845 3,845 3,845 7 Postal Service 6............................................ 250 721 1,750 3,498 3,498 2,998 2,998 2,998 2,998 8 Tennessee Valley Authority.......................... 2,435 3,070 3,915 4,865 4,865 4,935 4,985 5,005 5,070 9 United States Railway Association6............. 3 209 98 99 104 109 212 216 10 Federally sponsored agencies............................ 60,040 76,662 78,634 81,189 80,770 80,889 81,321 *80,654 81,260 11 Federal home loan banks............................. 15,362 21,890 18,900 17,122 16,807 16,811 16,805 16,587 16,626 12 Federal Home Loan Mortgage Corporation.. 1,784 1,551 1,550 1,150 1,150 1,150 1,350 r957 957 13 Federal National Mortgage Association....... 23,002 28,167 29,963 30,656 30,413 30,565 30,394 30,143 30,392 14 Federal land banks...................................... 10,062 12,653 15,000 17,124 17,127 17,127 17,304 17,304 17,304 15 Federal intermediate credit banks................. 6,932 8,589 9,254 10,712 10,669 10,494 10,631 10,556 10,670 16 Banks for cooperatives................................ 2,695 3,589 3,655 4,023 4,207 4,330 4,425 4,695 4,899 17 Student Loan Marketing Association7.......... 200 220 310 400 395 410 410 410 410 18 Other.......................................................... 3 3 2 2 2 2 2 2 2 Memo: 19 Federal Financing Bank debt6,8....................... 4,474 17,154 26,636 27,028 28,711 29,848 30,328 31,312 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank 3.................................. 4,595 4,768 4,768 5,208 5,208 5,237 5,273 21 Postal Service6............................................ 500 1,500 3,248 3,248 2,748 2,748 2,748 2,748 22 Student Loan Marketing Association7.......... 220 310 400 395 410 410 410 410 23 Tennessee Valley Authority......................... 895 1,840 2,810 2,890 3,110 3,160 3 180 3,245 24 United States Railway Association6............. 3 209 98 99 104 109 212 216 Other lending:9 25 Farmers Home Administration.................... 2,500 7,000 10,250 10,250 10,750 11,450 11,450 11,750 26 Rural Electrification Administration............ 566 1,573 1,674 1,768 1,509 1,584 1,677 27 Others........................................................ 356 1,134 3,489 3,704 4,613 5,254 5,507 5,993 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 Aug. 17,1974 through Sept. 30,1976 on-budget thereafter. 8 The FFB, which began operations in 1974, is authorized to purchase 4 Consists of debentures issued in payment of Federal Housing Ad or sell obligations issued, sold, or guaranteed by other Federal agencies. ministration insurance claims. Once issued, these securities may be sold Since FFB incurs debt solely for the purpose of lending to other agencies, privately on the securities market. its debt is not included in the main portion of the table in order to avoid 5 Certificates of participation issued prior to fiscal 1969 by the Govern double counting. ment National Mortgage Association acting as trustee for the Farmers 9 Includes FFB purchases of agency assets and guaranteed loans; Home Administration; Department of Health, Education, and Welfare; the latter contain loans guaranteed by numerous agencies with the Department of Housing and Urban Development; Small Business Ad guarantees of any particular agency being generally small. The Farmers ministration; and the Veterans Administration. Home Administration item consists exclusively of agency assets, while the 6 Off-budget. Rural Electrification Administration entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A36 Domestic Financial Statistics □ June 1977 1.47 NEW SECURITY ISSUES State and Local Government and Corporate Millions of dollars 1976 1977 Type of issue or issuer, 1974 1975 1976 or use Sept. Oct. Nov. Dec. Jan. Feb. State and local government 1All issues, new and refunding 1........................................ 24,315 30,607 35,313 2,819 3,544 3,345 2,352 3,429 3,150 By type of issue: 2 General obligation...................................................... 13,563 16,020 18,040 1,265 1,973 1,529 1,176 1,867 1,624 3 Revenue................................................................. 10,212 14,511 17,140 1,549 1,551 1,807 1,166 1,552 1,518 4 Housing Assistance Administration 2........................... 461 5 79 76 133 5 20 9 10 10 8 By type of issuer: 6 4,784 7,438 7,054 470 499 537 361 468 441 7 Special district and statutory authority........................ 8,638 12,441 15,304 1,238 1,470 1,725 1,251 1,786 1,335 8 ^Municipalities, counties, townships, school districts.... 10,817 10,660 12,845 1,105 1,553 1,074 732 1,166 1,367 23,508 29,495 32,108 2,591 2,921 2,879 1,847 3,084 3,019 By use of proceeds: 10 Education.................................................................. 4,730 4,689 4,900 356 428 351 334 489 502 11 Transportation........................................................... 1,712 2,208 2,586 251 332 221 107 104 410 12 Utilities and conservation............................................ 5,634 7,209 9,594 747 632 1,333 723 1,050 935 13 Social welfare............................................................. 3,820 4,392 6,566 767 676 574 233 483 580 14 Industrial aid............................................................. 494 445 483 31 23 69 63 15 12 15 Other purposes........................................................... 7,118 10,552 7,979 439 830 331 387 943 580 Corporate 16 All issues 3..................................................................... 38,313 53,619 53,356 4,817 4,431 3,047 6,480 3,989 2,708 17 Bonds.......................................................................... 32,066 42,756 42,262 4,263 3,482 2,357 5,560 3,387 1,888 By type of offering: 18 Public........................................................................ 25,903 32.583 26,453 2,100 2,729 1,256 2,568 2,786 1,108 19 Private placement....................................................... 6,160 10,172 15,808 2,163 753 1,101 2,992 601 780 By industry group: 20 Manufacturing........................................................... 9,867 16,980 13,243 670 1,261 501 2,275 817 568 21 Commercial and miscellaneous.................................... 1,845 2,750 4,361 546 77 376 696 743 346 22 Transportation........................................................... 1,550 3,439 4,357 1,212 240 193 564 165 47 23 Public utility.............................................................. 8,873 9,658 8,297 1,118 803 795 560 634 210 24 Communication......................................................... 3,710 3,464 2,787 140 155 163 196 50 290 25 Real estate and financial............................................. 6,218 6,469 9,222 577 946 328 1,271 979 426 6,247 10,863 11,094 554 949 690 920 602 820 By type: 27 Preferred.................................................................... 2,253 3,458 2,789 136 276 282 308 103 128 28 Common................................................................... 3,994 7,405 8,305 418 673 408 612 499 692 By industry group: 29 Manufacturing........................................................... 544 1.670 2,237 83 88 9 110 89 175 30 Commercial and miscellaneous................................... 940 1,470 1,183 33 73 34 198 136 94 31 Transportation........................................................... 22 1 24 7 32 Public utility.............................................................. 3,964 6,235 6,101 347 611 532 596 352 225 33 Communication........................................................ 217 1,002 776 27 267 34 Real estate and financial............................................. 562 488 771 84 177 88 15 25 60 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. tha 3 n F i 1 g u y r e e a s r , , w so h l i d c h f o re r p c r a e s s h e n i t n g th ro e s s U p n r it o e c d e e S d ta s te o s f , i a s r s e u e p s r i m nc a i t p u a r l i n a g m i o n u n m t o o re r As S s o o u ci r a c ti e o s n .— ; c S o ta rp te o r a a n te d s l e o c c u a r l i ti g es o , v e S r e n c m ur e it n i t e s s e a c n u d r it E ie x s c , ha S n e g cu e ri C tie o s m I m n i d s u si s o tr n y . 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 Source of change, or industry 1974 1975 1976 Q2 Q3 Q4 Ql Q2 Q3 Q4 All issues1 1New issues...................................................... 39,344 53,255 53,123 15,602 9,079 13,363 13,671 14,229 11,385 13,838 2 Retirements.................................................... 9,935 10,991 12,184 3,211 2,576 3,116 2,315 3,668 2,478 3,723 3 Net change...................................................... 29,399 42,263 40,939 12,390 6,503 10,247 11,356 10,561 8,907 10,115 Bonds and notes 4 New issues...................................................... 31,354 40,468 38,994 11,460 6,654 9,595 9,404 10,244 8,701 10,645 5Retirements.................................................... 6,255 8,583 9,109 2,336 2,111 2,549 1,403 3,159 1,826 2,721 6 Net change: Total............................................ 25,098 31,886 29,884 9,124 4,543 7,047 8,001 7,084 6,875 7,924 By industry: 7 7,404 13,219 8,978 4,574 1,442 2,069 2,966 1,529 1,551 2,932 8 Commercial and other2............................. 1,116 1,605 2,259 483 221 528 203 726 610 720 9 Transportation, including railroad............. 341 2,165 3,078 429 147 1,588 985 488 1,092 513 10 Public utility............................................ 7,308 7,236 6,829 1,977 1,395 1,211 1,820 1,260 2,109 1,640 11 3,499 2,980 1,687 810 472 429 498 953 335 -99 12 Real estate and financial........................... 5,428 4,682 7,054 852 866 1,222 1,530 2,128 1,178 2,218 Common and preferred stock 13 New issues...................................................... 7,980 12,787 14,129 4,142 2,425 3,768 4,267 3,985 2,684 3,193 14 Retirements.................................................... 3,678 2,408 3,075 875 465 567 912 509 652 1,002 15 Net change: Total............................................ 4,302 10,377 11,055 3,266 1,960 3,200 3,355 3,477 2,032 2,191 By industry: 16 Manufacturing.......................................... 17 1,607 2,634 500 412 433 838 1,120 744 -68 17 Commercial and other2............................. -135 1,137 762 490 108 462 88 318 117 239 18 Transportation, including railroad............. -20 65 96 7 53 4 5 25 17 49 19 Public utility............................................ 3,834 6,015 6,171 1,866 1,043 1,537 2,174 1,300 932 1,765 20 Communication........................................ 398 1,084 854 359 97 604 47 735 19 53 21 Real estate and financial........................... 207 468 538 43 247 160 203 -21 203 153 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 1977 Item 1975 1976 Oct. Nov. Dec. Jan. Feb. Mar. Apr. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1................................... 3,302 4,226 378 446 661 655 423 463 556 2 3,686 6,802 450 419 628 628 463 553 490 3 Net sales.................................................... -384 2,496 -72 27 33 141 -40 -90 66 4 Assets3...................................................... 42,179 47,537 44,858 45,369 47,537 45,760 45,040 44,516 44,862 5 Cash position4........................................ 3,748 2,747 2,434 2,635 2,747 2,958 3,260 3,474 2,777 6 Other...................................................... 38,431 44,790 42,424 42,734 44,790 42,802 41,780 41,042 42,085 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 mem to 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 □ June 1977 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1975 1976 1977 Account 1974 1975 1976 Q3 Q4 Ql Q2 Q3 Q4 QIp 1 Profits before tax.............................................. 127.6 114.5 147.9 126.9 131.3 141.1 146.2 150.2 154.2 156.3 2 Profits tax liability............................................ 52.4 49.2 64.4 54.8 57.2 61.4 63.5 65.1 67.4 68.6 3 Profits after tax................................................. 75.2 65.3 83.5 72.1 74.1 79.7 82.7 85.1 86.8 87.7 4 Dividends......................................................... 30.8 32.1 35.2 32.6 32.2 33.1 34.4 35.4 37.7 37.6 5 Undistributed profits......................................... 44.4 33.2 48.3 39.5 41.9 46.6 48.3 49.7 49.1 50.1 6 Capital consumption allowances......................... 81.6 89.4 97.3 90.5 92.9 94.3 96.2 98.2 100.5 102.6 7 Net cash flow.................................................... 126.0 122.6 145.6 130.0 134.8 140.9 144.5 147.9 149.6 152.7 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 Account 1971 1972 1973 1974 Q3 Q4 Ql Q2 Q3 Q4 1Current assets.................................................. 529.4 574.4 643.2 712.2 716.5 731.6 753.5 775.4 791.8 816.8 2 Cash........................................................... 53.3 57.5 61.6 62.7 65.6 68.1 68.4 70.8 71.1 77.0 3 U.S. Govt, securities.................................... 11.0 10.2 11.0 11.7 14.3 19.4 21.7 23.3 23.9 26.4 4 Notes and accounts receivable........................ 221.1 243.4 269.6 293.2 298.0 298.2 310.9 321.8 328.5 328.2 5 U.S. Govt.1.............................................. 3.5 3.4 3.5 3.5 3.3 3.6 3.6 3.7 4.3 4.3 6 Other....................................................... 217.6 240.0 266.1 289.7 294.7 294.6 307.3 318.1 324.2 323.9 7 Inventories................................................... 200.4 215.2 246.7 288.0 219.6 285.8 288.8 295.6 302.1 315.4 8 Other.......................................................... 43.8 48.1 54.4 56.6 59.0 60.0 63.6 63.9 66.3 69.8 9 Current liabilities............................................. 326.0 352.2 401.0 450.6 444.7 457.5 465.9 475.9 484.1 499.9 10 Notes and accounts payable........................... 220.5 234.4 265.9 292.7 279.6 288.0 286.9 293.8 291.7 302.9 11 U.S. Govt.1.............................................. 4.9 4.0 4.3 5.2 6.2 6.4 6.4 6.8 7.0 7.0 12 Other....................................................... 215.6 230.4 261.6 287.5 273.4 281.6 280.5 287.0 284.7 295.9 13 Accrued Federal income taxes...................... 13.1 15.1 18.1 23.2 19.4 20.7 23.9 22.0 24.9 26.8 14 Other.......................................................... 92.4 102.6 117.0 134.8 145.6 148.8 155.0 160.1 167.5 170.2 15 Net working capital......................................... 203.6 221.3 242.3 261.5 271.8 274.1 287.6 299.5 307.7 316.9 l 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. 1.52 BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1975 1976 1977 Industry 1975 1976 Q3 Q4 Ql Q2 Q3 Q4 Ql Q22 1 All industries................................................... 112.75 120.82 112.16 111.80 114.72 118.12 122.55 125.22 129.19 132.71 Manufacturing 2 Durable goods industries............................... 21.88 23.50 21.01 21.07 21.63 22.54 24.59 25.50 25.33 26.77 3 Nondurable goods industries........................ 26.13 29.22 26.38 25.75 27.58 28.09 30.20 28.93 30.84 31.13 Nonmanufacturing 4 Mining........................................................ 3.80 3.98 3.82 3.82 3.83 3.83 4.21 4.13 4.26 4.16 Transportation: 5 Railroad................................................... 2.56 2.35 2.75 2.39 2.08 2.64 2.69 2.63 2.37 2.68 6 Air........................................................... 1.87 1.31 2.12 1.65 1.18 1.44 1.12 1.41 1.76 1.45 7 Other....................................................... 3.03 3.56 2.99 3.56 3.29 4.16 3.44 3.49 2.87 2.45 Public utilities: 8 Electric.................................................... 16.99 18.90 16.58 17.92 18.56 18.82 18.22 19.49 20.44 21.96 9 Gas and other.......................................... 3.14 3.47 3.21 3.00 3.36 3.03 3.45 3.96 4.08 4.24 1 11 0 C Co o m m m m e u r n c i i c a a l t a io n n d . . o .. t . h .. e . r .. * .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 0 2 . . 6 7 1 6 2 1 0 2 . . 8 9 7 3 2 1 0 2 . . 3 95 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 2 1 0 3 . . 9 6 9 4 2 1 1 4 . . 3 3 6 0 I> D'XH/ •ZOKj J17/ .oQ/7 1 Includes trade, service, construction, finance, and insurance. agriculture; real estate operators; medical, legal, educational, and cultural 2 Anticipated by business. service; and nonprofit organizations. Note.—Estimates for corporate and noncorporate business, excluding Source.—U.S. Dept, of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Corporate Finance A39 1.521 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1975 1976 1977 Account 1972 1973 1974 Q3 Q4 Ql Q2 Q3 Q4 Ql ASSETS Accounts receivable, gross Consumer......................................................... 31.9 35.4 36.1 35.4 36.0 35.7 36.7 37.6 38.6 39.2 Business........................................................... 27.4 32.3 37.2 38.6 39.3 41.2 42.4 42.4 44.7 47.5 Total............................................................. 59.3 67.7 73.3 74.1 75.3 76.9 79.2 80.0 83.4 86.7 Less : Reserves for unearned income and losses... 7.4 8.4 9.0 9.2 9.4 9.4 9.8 10.2 10.5 10.6 Accounts receivable, net...................................... 51.9 59.3 64.2 64.8 65.9 67.4 69.4 69.9 72.9 76.1 Cash and bank deposits........................................ 2.8 2.6 3.0 3.1 2.9 2.8 2.7 2.6 2.6 2.7 Securities............................................................. .9 .8 .4 .8 1.0 .8 .8 1.2 1.1 1.0 All other.............................................................. 10.0 10.6 12.0 11.7 11.8 12.5 12.4 12.7 12.6 13.0 Total assets.......................................................... 65.6 73.2 79.6 80.5 81.6 83.5 85.3 86.4 89.2 92.8 LIABILITIES Bank loans........................................................... 5.6 7.2 9.7 8.2 8.0 7.4 6.9 5.5 6.3 6.1 Commercial paper................................................ 17.3 19.7 20.7 20.8 22.2 22.2 22.2 21.7 23.7 24.8 Debt: Short-term, n.e.c............................................... 4.3 4.6 4.9 4.5 4.5 4.9 5.0 5.2 5.4 4.5 Long-term, n.e.c................................................ 22.7 24.6 26.5 26.7 27.6 28.4 30.1 31.0 32.3 34.0 Other.............................................................. 4.8 5.6 5.5 7.7 6.8 7.8 7.8 9.5 8.1 9.5 Capital, surplus, and undivided profits.................. 10.9 11.5 12.4 12.6 12.5 12.8 13.2 13.4 13.4 13.9 Total liabilities and capital.................................... 65.6 73.2 79.6 80.5 81.6 83.5 85.3 86.4 89.2 92.8 Note.—Components may not add to totals due to rounding. 1.522 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments Accounts receivable during— receivable Type outstand ing Apr. 30, 1977 1977 1977 1977 i Feb. Mar. Apr. Feb. Mar. Apr. Feb. Mar. Apr. Retail automotive (commercial vehicles).......... 10,017 255 272 246 903 966 949 648 694 703 Wholesale automotive.................................... 10,237 246 549 255 4,981 5,730 5,084 4,735 5,181 4,829 Retail paper on business, industrial, and farm equipment.............................................. 12,162 45 -109 59 684 787 698 639 896 639 Loans on commercial accounts receivable....... 3,789 -74 42 51 2,373 2,554 2,492 2,447 2,512 2,441 Factored commercial accounts receivable........ 2,218 60 11 124 1,558 1,626 1,685 1,498 1,615 1,561 All other business credit................................ 9,936 13 144 118 1,284 1,337 1,282 1,271 1,193 1,164 1 Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A40 Domestic Financial Statistics □ June 1977 1.53 MORTGAGE MARKETS Millions of dollars. Exceptions noted. 1976 1977 Item 1974 1975 1976 Nov. Dec. Jan. Feb. Mar. Apr. 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 48.6 51.0 52.5 53.1 53.8 53.4 2 Amount of loan (thous. dollars)............... 29.8 33.3 35.9 36.0 37.1 39.0 39.3 40.9 39.6 3 Loan/price ratio (per cent)........................ 74.3 ”74.7 74.2 75.6 74.7 76.3 75.8 77.5 75.5 4 Maturity (years)....................................... 26.3 26.8 27.2 27.0 27.7 28.2 27.8 28.0 27.3 5 Fees and charges (per cent of loan amount) 2. 1.30 1.54 1.44 1.36 1.38 1.38 1.31 1.34 1.30 6 Contract rate (per cent per annum).......... 8.71 8.75 8.76 8.83 8.87 8.82 8.78 8.74 8.73 Yield (per cent per annum): 7 FHLBB series 3........................................ 8.92 9.01 8.99 9.05 9.10 9.05 8.99 8.95 8.94 8 HUD series4............................................ 9.22 9.10 8.99 8.95 8.90 8.80 8.80 8.85 8.90 SECONDARY MARKETS Yields (per cent per annum) on— 9 FHA mortgages (HUD series) 5................. 9.55 9.19 8.82 8.45 8.25 8.40 8.50 8.58 8.57 10 GNMA securities6................................... 8.72 8.52 8.17 7.93 7.59 7.85 7.98 8.06 7.96 FNMA auctions:7 11 Government-underwritten loans............ c9.31 9.26 c8.99 8.66 8.45 8.48 8.55 8.68 8.67 12 Conventional loans............................... c9.43 c9.37 c9.11 9.00 8.84 8.82 8.86 8.91 8.97 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total........................................................... 29,578 31,824 32,904 32,929 32,904 32,848 32,792 32,830 32,938 14 FHA-insured............................................ 19,189 19,732 18,916 18,986 18,916 18,854 18,771 18,739 18,745 15 VA-guaranteed........................................ 8,310 9,573 9,212 9,264 9,212 9,162 9,115 9.099 9,125 16 Conventional........................................... 2,080 2,519 4,776 4,679 4,776 4,833 4,906 4.992 5,069 Mortgage transactions (during period) 17 Purchases.................................................... 6,953 4,263 3,606 1,131 191 141 150 283 391 18 Sales........................................................... 4 2 86 8 Mortgage commitments:8 19 Contracted (during period)......................... 10,765 6,106 6,247 615 290 1,180 968 1,119 716 20 Outstanding (end of period)......................... 7,960 4,126 3,398 3,649 3,398 4,142 4,707 5,184 5,411 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9.................................................. c5,462.6 c7,042.6 4,929.8 494.1 56.9 747.4 868.4 1,138.2 456.1 22 Accepted................................................. 2,371.4 3,848.3 2,787.2 221.1 41.5 549.1 484.7 612.0 269.8 Conventional loans: 23 Offered 9.................................................. C1,195.4 cl,401.3 2,595.7 353.3 150.2 326.8 300.0 373.9 348.1 24 Accepted................................................. c656.5 c765.0 ^1,879.2 296.9 135.4 238.3 235.8 268.1 280.7 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total.......................................................... 4,586 4,987 4,269 4,162 4,269 3,896 3,672 3,557 3,355 26 FHA/VA................................................. 1,904 1,824 1,618 1,638 1,618 1,594 1,580 1,564 1,542 27 Conventional........................................... 2,682 3,163 2,651 2,523 2,651 2,302 2,092 1,993 1,813 Mortgage transactions (during period) 28 Purchases.................................................... 2,191 1,716 1,175 101 208 16 98 200 235 29 Sales........................................................... 52 1,020 1,396 91 60 51 290 285 388 Mortgage commitments:11 30 Contracted (during period).......................... 4,553 982 1,477 245 105 250 170 459 606 31 Outstanding (end of period)......................... 2,390 111 333 452 333 462 533 760 1,112 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 related requirements. Monthly 4 Average contract rates on new commitments for conventional first figures are unweighted averages for auctions conducted within the month. mortgages, rounded to the nearest 5 basis points; from Dept, of Housing 8 Includes some multifamily and nonprofit hospital loan commitments and Urban Development. in addition to 1- to 4-family loan commitments accepted in FNMA’s 5 Average gross yields on 30-year, minimum-downpayment, Federal free market auction system, and through the FNMA-GNMA Tandem Housing Administration-insured first mortgages for immediate delivery plans. in the private secondary market. Any gaps in data are due to periods of 9 Mortgage amounts offered by bidders are total bids received. adjustment to changes in maximum permissible contract rates. 10 Includes participations as well as whole loans. 6 Average net yields to investors on Government National Mortgage 11 Includes conventional and Government-underwritten loans. Association-guaranteed, mortgage-backed, fully-modified pass-through 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 period. 1976 1977 Type of holder, and type of property 1972 1973 1974 1975 Q2 Q3 04 Ql 1 All holders........................................ 603,417 682,321 742,504 801,640 '840,813 '864,345 '888,958 '910,625 2 1- to 4-family................................ 372,793 416,883 449,937 491,568 '521,705 '541,224 '558,415 '574,534 3 Multifamily................................... 82,572 92,877 99,851 100,471 '100,790 '100,344 '102,380 '102,591 4 Commercial.................................. 112,294 131,308 146,428 158,724 '164,209 '167,070 '170,870 '174,233 5 Farm............................................ 35,758 41,253 46,288 50,877 '54,109 '55,707 '57,293 '59,267 6 Major financial institutions................. 450,000 505,400 542,552 581,296 '611,524 '629,949 647,314 '661,851 7 Commercial banks1........................ 99.314 119,068 132,105 136,186 143,699 147,636 150,869 154,007 8 1- to 4-family............................. 57,004 67,998 74,758 77,018 82,900 86,013 87,897 89,725 9 Multifamily............................... 5,778 6,932 7,619 5,915 6,107 6,201 6,336 6,468 10 Commercial............................... 31,751 38,696 43,679 46,882 48,125 48,749 49,817 50,853 11 Farm........................................ 4,781 5,442 6,049 6,371 6,567 6,673 6,819 6,961 12 Mutual savings banks..................... 67,556 73,230 74,920 77,249 78,838 80.249 81,734 '82,273 13 1- to 4-family............................. 46,229 48,811 49,213 50,025 51,326 52.250 53,217 '53,568 14 Multifamily................................ 10,910 12,343 12,923 13,792 13,674 13,915 14,173 '14,266 15 Commercial............................... 10,355 12,012 12,722 13,373 13,780 14,028 14,287 '14,381 16 Farm......................................... 62 64 62 59 58 56 57 58 17 Savings and loan associations.......... 206,182 231,733 249,293 278,693 '.299,296 '311,847 323,130 '333,697 18 1- to 4-family............................. 167,049 187,750 201,553 224,710 '241,623 '251,629 '260,895 '270,094 19 Multifamily............................... 20,783 22,524 23,683 25,417 '26,817 '27,505 '28,436 '29,032 20 Commercial............................... 18,350 21,459 24,057 28,566 '31,456 '32,713 '33,799 '34,571 21 Life insurance companies................ 76,948 81.369 86,234 89,168 89,691 90,217 91,581 '91,874 22 1- to 4-family............................. 22.315 20,426 19,026 17,590 16,861 16,458 16,108 '15,780 23 Multifamily............................... 17,347 18,451 19,625 19,629 19,374 19,256 19,201 '19,064 24 Commercial............................... 31,608 36,496 41,256 45,196 46,456 47,322 48,854 '49,405 25 Farm........................................ 5,678 5,996 6,327 6,753 7,000 7,181 7,418 '7,625 26 Federal and related agencies.............. 40,157 46,721 58,320 66,891 66,033 67,314 '66,753 '66,248 27 Government National Mortgage Assn. 5,113 4,029 4,846 7,438 5,557 5,068 4,241 ' 4,013 28 1- to 4-family............................. 2,513 1,455 2,248 4,728 3,165 2,486 1,970 '1,670 29 Multifamily............................... 2,600 2,574 2,598 2,710 2,392 2,582 2,271 '2,343 30 Farmers Home Admin.................... 1,019 1,366 1,432 1,109 830 1,355 1,064 500 31 1- to 4-family............................ 279 743 759 208 228 754 454 98 32 Multifamily............................... 29 29 167 215 46 143 218 28 33 Commercial............................... 320 218 156 190 151 133 72 64 34 Farm........................................ 391 376 350 496 405 325 320 310 35 Federal Housing and Veterans Admin. 3,338 3,476 4,015 4,970 5,111 5,092 5,150 5,406 36 1- to 4-family............................. 2,199 2,013 2,009 1 ,990 1,781 1,716 1,676 1,732 37 Multifamily............................... 1,139 1,463 2,006 2,980 3,330 3,376 3,474 3,674 38 Federal National Mortgage Assn... . 19,791 24,175 29,578 31,824 32,028 32,962 32,904 32,830 39 1- to 4-family............................. 17,697 20.370 23,778 25,813 26,112 27,030 26,934 26,836 40 Multifamily............................... 2.094 3,805 5,800 6,011 5,916 5,932 5,970 5,994 41 Federal land banks......................... 9,107 11,071 13,863 16,563 17,978 18,568 19,125 19,942 42 1- to 4-family............................. 13 123 406 549 575 586 601 611 43 Farm........................................ 9.094 10,948 13,457 16,014 17,403 17,982 18,524 19,331 44 Federal Home Loan Mortgage Corp., 1,789 2,604 4,586 4,987 4,529 4,269 4,269 3,557 45 1- to 4-family............................. 1,754 2,446 4,217 4,588 4,166 3,917 3,889 3,200 46 Multifamily............................... 35 158 369 399 363 352 380 357 47 Mortgage pools or trusts2.................. 14,404 18,040 23,799 34,138 41,225 44,960 49,801 54,811 48 Government National Mortgage Assn. 5,504 7,890 11,769 18,257 23,634 26, 725 30,572 34,260 49 1- to 4-family............................. 5,353 7,561 11,249 17,538 22,821 25,841 29,583 33,190 50 Multifamily............................... 151 329 520 719 813 884 989 1,070 51 Federal Home Loan Mortgage Corp. 441 766 757 1,598 2,153 2,506 2,671 3,570 52 1- to 4-family............................. 331 617 608 1,349 1,831 2,141 2,282 3,112 53 Multifamily............................... 110 149 149 249 322 365 389 458 54 Farmers Home Admin.................... 8,459 9,384 11,273 14,283 15,438 15,729 16,558 16,981 55 1- to 4-family............................. 5,017 5,458 6,782 9,194 9,670 9,587 10,219 10,423 56 Multifamily................................ 131 138 116 295 541 535 532 530 57 Commercial............................... 867 1,124 1,473 1,948 2,104 2,291 2,440 2,560 58 Farm........................................ 2,444 2,664 2,902 2,846 3,123 3,316 3,367 3,468 59 Individuals and others3...................... 98,856 112,160 117,833 119,315 '122,031 '122,122 '125,090 127,715 60 1- to 4-family............................. 45,040 51 ,112 53,331 56,268 '59,246 '60,816 '62,690 64,495 61 Multifamily............................... 21,465 23,982 24,276 22,140 '21,095 '19,298 '20,011 19,307 62 Commercial............................... 19,043 21,303 23,085 22,569 '22,137 '21,834 '21,601 22,399 63 Farm........................................ 13,308 15,763 17,141 18,338 '19,553 '20,174 '20,788 21,514 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 Financial Statistics □ June 1977 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1976 1977 Holder, and type of credit 1974 1975 1976 Oct. Nov. Feb. Mar. Apr. Amounts outstanding (end of period) 1Total.............................................. 155,384 162,237 178,775 173,930 175,333 178,775 177,975 178,252 179,695 182,265 By holder: 2 75,846 78,703 85,379 84,152 84,278 85,379 85,051 85,005 85,916 87,481 3 Finance companies...................... 36,208 36,695 39,642 38,809 39,129 39,642 39,665 39,831 39,889 40,361 4 Credit unions.............................. 22,116 25,354 30,546 29,711 30,053 30,546 30,410 30,701 31,448 31,912 5 Retailers1................................... 17,933 18,002 19,178 17,205 17,726 19,178 18,693 18,322 18,068 18,205 6 Others2....................................... 3,281 3,483 4,030 4,053 4,147 4,030 4,156 4,393 4,374 4,306 By type of credit: 7 50,392 53,028 60,498 59,717 60,002 60,498 60,349 60,774 61,841 63,183 8 Commercial banks................... 30,994 31,534 35,313 35,009 35,095 35,313 35,284 35,492 36,232 37,145 9 Indirect................................ 18,687 18,353 19,642 19,611 19,575 19,642 19,566 19,640 20,005 20,468 10 Direct.................................. 12,306 13,181 15,671 15,398 15,520 15,671 15,719 15,852 16,227 16,678 11 Finance companies................... 10,618 11,439 13,059 12,901 12,957 13,059 12,973 13,042 13,084 13,347 12 Credit unions........................... 8,414 9,653 11,633 11,311 11,442 11,633 11,579 11,690 11,976 12,152 13 366 402 493 496 508 493 513 550 549 539 Mobile homes: 14 Commercial banks................... 8,972 8,704 8,233 8,294 8,254 8,233 8,146 8,094 8,076 8,100 15 Finance companies................... 3,524 3,451 3,277 3,309 3,295 3,277 3,248 3,207 3,197 3,177 16 Home improvement...................... 7,754 8,004 8,773 8,726 8,790 8,773 8,736 8,750 8,816 8,923 17 4,694 4,965 5,381 5,359 5,388 5,381 5,340 5,307 5,343 5,425 Revolving credit: 18 Bank credit cards..................... 8,281 9,501 11,075 10,232 10,329 11,075 10,996 10,820 10,705 10,877 19 Bank check credit.................... 2,797 2,810 3,010 2,933 2,935 3,010 3,031 3,039 3,030 3,045 20 All other...................................... 73,664 76,738 83,910 80,719 81,728 83,910 83,469 83,568 84,031 84,959 21 Commercial banks, total.......... 20,108 21,188 22,368 22,325 22,277 22,368 22,254 22,253 22,531 22,888 22 Personal loans...................... 13,771 14,629 15,606 15,534 15,517 15,606 15,569 15,590 15,769 16,003 23 Finance companies, total.......... 21,717 21,655 23,178 22,469 22,748 23,178 23,319 23,454 23,480 23,709 24 Personal loans...................... 16,961 17,681 19,043 18,509 18,773 19,043 19,002 18,998 19,048 19,235 25 Credit unions........................... 13,037 14,937 17.993 17,505 17,706 17,993 17,915 18,086 18,524 18,799 26 Retailers.................................. 17,933 18,002 19,178 17,205 17,726 19,178 18,693 18,322 18,068 18,205 27 Others..................................... 869 956 1,193 1,215 1,271 1,193 1,288 1,453 1,428 1,358 Net change (during period)3 28 Total.............................................. 8,952 6,843 16,539 1,564 1,243 1,823 1,918 2,022 2,717 2,660 By holder: 29 Commercial banks...................... 3,975 2,851 6,678 671 381 913 565 829 1,462 1,295 30 Finance companies...................... 806 483 2,946 317 245 364 481 442 373 559 31 Credit unions.............................. 2,507 3,238 5,192 280 395 537 416 540 717 557 32 Retailers..................................... 1,538 69 1,176 263 98 64 249 118 238 191 33 Others........................................ 126 202 547 33 124 -55 207 93 -72 58 By type of credit: 34 Automobile.................................. 327 2,631 7,470 528 477 1,013 758 884 1,201 1,174 35 Commercial banks................... -508 535 3,779 350 221 652 418 504 759 686 36 Indirect................................ -310 -340 1,289 117 70 330 160 239 385 357 37 Direct.................................. -198 875 2,490 233 151 322 258 265 373 329 38 Finance companies................... -100 821 1,620 77 98 146 99 161 194 282 39 Credit unions........................... 958 1,239 1,980 105 144 207 174 213 267 203 40 Other...................................... -23 36 91 -4 14 8 66 6 -19 2 Mobile homes: 41 Commercial banks................... 632 -268 -471 -56 -43 32 -43 -26 16 17 42 Finance companies................... 168 -73 -174 -16 -16 -16 -18 -43 3 -15 43 Home improvement...................... 804 248 768 73 103 73 130 73 97 106 44 Commercial banks................... 611 271 416 44 55 54 36 14 75 66 Revolving credit: 45 Bank credit cards..................... 1,443 1,220 1,576 123 71 -33 28 170 293 246 46 Bank check credit.................... 543 14 199 27 6 7 41 32 38 49 47 All other..................................... 5,036 3,072 7,172 884 645 747 1,023 931 1,069 1,083 48 Commercial banks, total.......... 1,255 1,080 1,180 183 72 199 85 134 281 231 49 Personal loans...................... 898 858 977 161 47 148 101 114 200 160 50 Finance companies, total.......... 803 -64 1,523 258 163 236 401 320 175 291 51 Personal loans...................... 479 717 1,362 237 161 113 178 129 168 251 52 Credit unions........................... 1,473 1,900 3,056 166 239 313 227 312 428 336 53 Retailers.................................. 1,538 69 1,176 263 98 64 249 118 238 191 54 Others..................................... -33 87 237 15 73 -66 60 48 -54 34 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. Comparable data for Dec. 31, 1977, will be published in the Bulletin for February 1978. 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 1977 Holder, and type of credit 1974 1975 1976 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Extensions1 1Total.............................................. 160,008 163,483 186,221 16,055 15,763 16,702 16,870 17,186 18,253 18,077 By holder: 2 Commercial banks...................... 72,605 77,131 88,666 7,618 7,486 8,182 7,546 8,055 8,715 8,670 3 Finance companies...................... 35,644 32,582 35,956 3,148 3,059 3,157 3,431 3,437 3,559 3,442 4 Credit unions.............................. 22,403 24,151 28,829 2,350 2,395 2,688 2,683 2,743 2,978 2,933 5 Retailers2................................... 27,034 27,049 29,569 2,673 2,467 2,480 2,775 2,603 2,817 2,722 6 Others3....................................... 2,322 2,570 3,201 266 356 194 436 347 185 310 By type of credit: 7 Automobile.................................. 43,209 48,103 55,807 4,587 4,632 5,263 4,940 5,205 5,654 5,474 8 Commercial banks................... 26,406 28,333 32,687 2,770 2,691 3,170 2,892 3,075 3,350 3,243 9 Indirect................................ 15,576 15,761 17,600 1,479 1,426 1,723 1,544 1,641 1,818 1,735 10 Direct.................................. 10,830 12,572 15,087 1,291 1,265 1,446 1,349 1,435 1,532 1,507 11 Finance companies................... 8,630 9,598 11,210 904 927 992 964 999 1,151 1,101 12 Credit unions........................... 7,788 9,702 11,336 875 957 1,051 974 1,075 1,124 1,072 13 Others..................................... 385 470 574 37 57 51 110 55 30 49 Mobile homes: 14 Commercial banks................... 3,486 2,681 2,449 178 207 267 195 207 254 260 15 Finance companies................... 1,413 771 690 59 54 53 50 52 57 58 16 Home improvement...................... 4,571 4,398 5,034 463 464 461 494 457 478 488 17 Commercial banks................... 2,789 2,722 3,036 282 276 288 262 251 308 301 Revolving credit: 18 Bank credit cards..................... 17,098 20,428 25,481 2,198 2,181 2,217 2,117 2,332 2,434 2,509 19 Bank check credit.................... 4,227 4,024 4,832 413 410 426 462 448 456 452 20 All other..................................... 86,004 83,079 91,928 8,158 7,815 8,015 8,612 8,484 8,920 8,836 21 Commercial banks, total.......... 18,599 18,944 20,182 1,777 1,721 1,815 1,618 1,742 1,913 1,905 22 Personal loans...................... 13,176 13,386 14,463 1,286 1,238 1,317 1,213 1,281 1,379 1,389 23 Finance companies, total.......... 25,316 22,135 24,014 2,182 2,072 2,108 2,413 2,379 2,346 2,268 24 Personal loans...................... 16,691 17,333 19,610 1,776 1,696 1,688 1,787 1,843 1,814 1,775 25 Credit unions........................... 14,228 13,992 16,911 1,426 1,389 1,582 1,656 1,612 1,792 1,803 26 Retailers.................................. 27,034 27,049 29,569 2,673 2,467 2,480 2,775 2,603 2,817 2,722 27 Others..................................... 827 959 1,253 100 166 30 151 149 52 139 Liquidations1 28Total.............................................. 151,056 156,640 169,682 14,491 14,520 14,879 14,952 15,164 15,536 15,418 By holder: 29 68,630 74,280 81,988 6,947 7,105 7,269 6,981 7,227 7,253 7,375 30 Finance companies...................... 34,838 32,099 33,010 2,831 2,814 2,793 2,949 2,995 3,186 2,883 31 Credit unions.............................. 19,896 20,913 23,637 2,070 2,000 2,151 2,267 2,203 2,261 2,377 32 Retailers2................................... 25,496 26,980 28,393 2,410 2,369 2,416 2,526 2,485 2,579 2,531 33 Others3....................................... 2,196 2,368 2,654 233 232 249 228 254 257 252 By type of credit: 34 Automobile.................................. 42,883 45,472 48,337 4,059 4,155 4,250 4,183 4,320 4,453 4,300 35 26,915 27,798 28,908 2,420 2,470 2,517 2,474 2,571 2,591 2,557 36 Indirect................................ 15,886 16,101 16,311 1,363 1,356 1,393 1,384 1,402 1,432 1,378 37 Direct.................................. 11,029 11,697 12,597 1,058 1,114 1,124 1,090 1,169 1,159 1,178 38 Finance companies................... 8,730 8,777 9,590 827 829 846 866 838 957 828 39 Credit unions........................... 6,830 8,463 9,356 770 813 843 800 862 857 869 40 Others..................................... 408 434 483 42 43 43 43 49 49 47 Mobile homes: 41 Commercial banks................... 2,854 2,949 2,921 233 250 234 238 233 238 243 42 Finance companies................... 1,245 844 864 74 70 70 67 96 53 73 43 3,767 4,150 4,266 390 360 388 364 385 382 382 44 Commercial banks................... 2,178 2,451 2,620 239 221 234 227 237 233 236 Revolving credit: 45 Bank credit cards..................... 15,655 19,208 23,905 2,074 2,110 2,250 2,089 2,161 2,141 2,264 46 Bank check credit.................... 3,684 4,010 4,632 386 404 419 421 416 419 403 47 80,969 80,007 84,757 7,274 7,170 7,268 7,590 7,553 7,850 7,753 48 Commercial banks, total.......... 17,345 17,864 19,002 1,594 1,649 1,615 1,533 1,608 1,632 1,674 49 Personal loans...................... 12,278 12,528 13,486 1,125 1,191 1,169 1,111 1,167 1,179 1,229 50 Finance companies, total.......... 24,513 22,199 22,491 1,924 1,909 1,872 2,012 2,059 2,171 1,976 51 Personal loans...................... 16,212 16,616 18,248 1,539 1,535 1,575 1,608 1,714 1,646 1,524 52 Credit unions........................... 12,755 12,092 13,855 1,260 1,150 1,268 1,429 1,300 1,363 1,467 53 Retailers.................................. 25,496 26,980 28,393 2,410 2,369 2,416 2,526 2,485 2,579 2,531 54 Others..................................... 860 872 1,016 86 93 96 90 101 105 105 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 Financial Statistics □ June 1977 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-year data are at seasonally adjusted annual rates. 1975 1976 Transaction category, or sector 1971 1972 1973 1974 1975 1976 HI H2 HI H2 Nonfinancial sectors 1 Total funds raised................................ 151. 176.9 197.6 188.8 210.4 271.6 184.2 236.5 256.6 286.3 1 2 Excluding equities............................. 139. 166.4 190.0 185.0 200.3 260.8 173.8 226.9 243.0 278.2 2 By sector and instrument: 3 U.S. Govt......................................... 24. 15.2 8.3 12.0 85.2 69.0 80.8 89.6 71.6 66.6 3 4 Public debt securities.................... 26, 14.3 7.9 12.0 85.8 69.1 82.0 89.7 71.5 66.9 4 5 Agency issues and mortgages......... -1. 1.0 .4 * -.6 -.1 -1.2 -.1 .1 -.3 5 6 All other nonfinancial sectors............. 126. 161.7 189.4 176.8 125.2 202.6 103.4 146.9 185.0 219.7 6 7 Corporate equities........................ 11. 10.5 7.7 3.8 10.0 10.8 10.5 9.6 13.6 8.1 7 8 Debt instruments.......................... 114, 151.2 181.7 173.0 115.1 191.8 93.0 137.3 171.4 211.7 8 9 Private domestic nonfinancial sectors 121. 157.7 183.1 161.6 112.2 181.1 94.9 129.4 169.1 192.5 9 10 Corporate equities...................... 11, 10.9 7.9 4.1 9.9 10.5 10.3 9.5 13.3 7.7 10 11 Debt instruments........................ 109. 146.8 175.3 157.5 102.3 170.5 84.6 119.9 155.8 184.8 11 12 Debt capital instruments.......... 86, 102.8 106.7 101.2 101.3 123.6 97.5 105.1 113.5 133.8 12 13 State and local obligations. . 17. 15.4 16.3 19.6 17.3 17.2 16.2 18.4 18.1 16.4 13 14 Corporate bonds................. 18, 12.2 9.2 19.7 27.2 22.8 33.4 21.0 20.7 25.0 14 Mortgages: 15 Home............................. 28, 42.6 46.4 34.6 40.8 64.4 33.5 48.1 58.1 70.7 15 16 Multifamily residential.... 9 12.7 10.4 7.0 -.1 1.1 * -.2 1.6 .6 16 17 Commercial.................... 9 16.4 18.9 15.1 10.9 11.7 8.7 13.1 9.8 13.5 17 18 Farm.............................. 2 3.6 5.5 5.1 5.2 6.4 5.6 4.8 5.1 7.6 18 19 Other debt instruments............ 22 44.0 68.6 56.3 1.0 46.9 -12.8 14.8 42.3 51.0 19 20 Consumer credit................. 11 18.6 21.7 9.8 8.5 20.5 1.1 16.0 19.4 21.6 20 21 Bank loans n.e.c.................. 6 18.1 34.8 26.2 -14.5 7.7 -23.5 -5.5 2.2 12.7 21 22 Open market paper............. .8 2.5 6.8 -2.2 3.5 -.2 -4.2 8.2 -1.3 22 23 Other................................. 6.5 9.6 13.5 9.1 15.3 9.7 8.5 12.6 17.9 23 24 By borrowing sector.................... 121.1 157.7 183.1 161.6 112.2 181.1 94.9 129.4 169.1 192.5 24 25 State and local governments... 17.8 15.2 14.8 18.6 14.9 16.8 13.9 15.9 16.4 17.2 25 26 Households........................... 42.1 64.8 73.5 45.2 49.7 90.7 39.0 60.4 88.3 93.0 26 27 Farm..................................... 4.5 5.8 9.7 7.9 9.4 12.3 9.4 9.4 11.0 13.6 27 28 Nonfarm noncorporate.......... 10.3 13.1 12.3 6.7 1.2 4.7 -.8 3.2 4.2 4.8 28 29 Corporate.............................. 46.4 58.8 72.9 83.1 37.1 56.6 33.5 40.6 49.3 63.9 29 30 Foreign......................................... 5.2 4.0 6.2 15.3 13.0 21.5 8.5 17.4 15.9 27.2 30 31 Corporate equities..................... * -.4 -.2 -.2 .1 .3 .1 .1 .3 .3 31 32 Debt instruments........................ 5.2 4.4 6.4 15.5 12.8 21.2 8.4 17.3 15.6 26.9 32 33 Bonds.................................... .9 1.0 1.0 2.1 6.2 8.4 5.7 6.7 7.3 9.4 33 34 Bank loans n.e.c..................... 2.1 3.0 2.8 4.7 4.0 6.8 .6 7.4 4.2 9.3 34 35 Open market paper................. .3 -1.0 .9 7.1 -.1 2.5 -1.2 1.0 .8 4.2 35 36 U.S. Govt, loans.................... 1.8 1.5 1.7 1.6 2.8 3.6 3.3 2.2 3.2 4.0 36 Financial sectors 37 Total funds raised.............................. 17.0 29.1 56.7 43.0 14.8 29.8 14.4 15.3 21.5 32.1 37 By instrument: 38 U.S. Govt, related........................... 5.9 8.4 19.9 23.1 13.5 17.7 14.0 13.1 18.0 17.4 38 39 Sponsored credit agency securities. 1.1 3.5 16.3 16.6 2.3 2.4 1.4 3.3 3.9 .9 39 40 Mortgage pool securities.............. 4.8 4.9 3.6 5.8 10.3 15.7 11.5 9.2 14.2 17.2 40 41 Loans from U.S. Govt................. .7 .9 -.4 1.1 .6 * -.7 41 42 Private financial sectors................... 11.1 20.7 36.8 19.9 1.3 12.1 .4 2.1 9.5 14.7 42 43 Corporate equities....................... 3.5 2.8 1.5 1.0 1.2 1.8 1.2 1.2 .3 3.3 43 44 Debt instruments.......................... 7.6 18.0 35.3 18.9 .1 10.3 -.8 1.0 9.1 11.4 44 45 Corporate bonds...................... 3.8 5.1 3.5 2.1 2.9 5.8 2.5 3.3 7.2 4.4 45 46 Mortgages............................. 2.1 1.7 -1.2 -1.3 2.3 1.9 1.2 3.4 1.0 2.8 46 47 Bank loans n.e.c....................... 3.5 6.8 14.0 7.5 -3.9 -3.3 -4.7 -3.2 -3.6 -3.0 47 48 Open market paper and Rp’s... .9 4.4 11.8 3.9 2.8 7.8 7.6 -1.9 6.8 8.8 48 49 Loans from FHLB’s................. -2.7 * 7.2 6.7 -4.0 -2.0 -7.3 -.6 -2.3 -1.7 49 By sector: Sponsored credit agencies.............. 1.1 3.5 16.3 17.3 3.2 2.0 2.5 4.0 3.9 .2 50 Mortgage pools............................. 4.8 4.9 3.6 5.8 10.3 15.7 11.5 9.2 14.2 17.2 51 Private financial sectors................. 11.1 20.7 36.8 19.9 1.3 12.1 .4 2.1 9.5 14.7 52 Commercial banks..................... 2.4 4.8 8.1 -1.1 1.7 7.6 5.7 -2.3 9.9 5.3 53 Bank affiliates........................... -.4 .7 2.2 3.5 .3 -.8 .9 -.3 -1.3 -.3 54 Foreign banking agencies........... 1.6 .8 5.1 2.9 -.3 .4 -.9 .2 -1.5 2.4 55 Savings and loan associations---- -.1 2.0 6.0 6.3 -2.1 -.1 -7.8 3.6 -1.0 .7 56 Other insurance companies......... .6 .5 .5 .9 .9 1.0 .9 1.0 1.0 1.0 57 Finance companies.................... 2.7 6.2 9.4 4.5 .7 6.1 -.8 2.1 6.0 6.2 58 REIT’s..................................... 2.9 6.3 6.5 1.1 -1.9 -2.1 -1.6 -2.2 -1.8 -2.5 59 Open-end investment companies. 1.3 -.5 -1.2 -.5 .8 .3 1.5 .1 -1.1 1.8 60 Money market funds................. 2.4 1.3 -.3 2.6 * -.7 .2 61 All sectors TWnl funds hv instrument ................. 168.1 206.0 254.3 231.8 225.2 301.4 198.6 251.8 284.1 318.4 62 63 Investment company shares..................... 1.3 -.5 -1.2 -.5 .8 .3 1.5 .1 -1.1 1.8 63 64 Other corporate equities........................... 13.7 13.8 10.4 5.4 10.4 12.3 10.2 10.7 15.0 9.6 64 65 Debt instruments....................................... 153.1 192.8 245.2 227.0 214.0 288.7 187.0 241.0 270.2 307.0 65 66 U.S. Govt, securities............................. 30.7 23.7 28.3 34.5 98.0 87.2 93.6 102.4 89.8 84.7 66 67 State and local obligations..................... 17.5 15.4 16.3 19.6 17.3 17.2 16.2 18.4 18.1 16.4 67 68 Corporate and foreign bonds................. 23.5 18.4 13.6 23.9 36.3 37.0 41.6 31.0 35.2 38.8 68 69 Mortgages............................................ 52.5 76.8 79.9 60.5 59.0 85.4 49.1 69.0 75.7 95.2 69 70 Consumer credit.................................... 11.6 18.6 21.7 9.8 8.5 20.5 1.1 16.0 19.4 21.6 70 71 Bank loans n.e.c.................................... 12.1 27.8 51.6 38.4 -14.4 11.2 -27.6 -1.2 2.9 19.1 71 72 Open market paper and Rp’s................. .9 4.1 15.2 17.8 .5 13.8 6.2 -5.1 15.8 11.8 72 73 Other loans........................................... 4.2 8.0 18.5 22.5 8.7 16.5 6.8 10.7 13.4 19.5 73 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, except as noted; half-year data are at seasonally adjusted annual rates. 1975 1976 Transaction category or sector 1971 1972 1973 1974 1975 1976 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors................................ 139.6 166.4 190.0 185.0 200.3 260.8 173.8 226.9 243.0 278.2 1 By public agencies and foreign: 2 Total net advances........................................ 43.4 19.8 34.2 52.7 44.2 55.9 51.9 36.6 50.5 61.2 2 3 U.S. Govt, securities................................. 34.4 7.6 9.6 11.9 22.5 26.8 32.6 12.4 26.7 26.9 3 4 Residential mortgages............................... 7.0 7.0 8.2 14.7 16.2 12.8 15.9 16.5 10.8 14.8 4 5 FHLB advances to S&L’s......................... -2.7 * 7.2 6.7 -4.0 -2.0 -7.3 -.6 -2.3 -1.7 5 6 Other loans and securities......................... 4.6 5.1 9.2 19.5 9.5 18.2 10.6 8.3 15.3 21.1 6 Totals advanced, by sector 7 U.S. Govt................................................. 2.8 1.8 2.8 9.8 15.1 10.2 14.9 15.2 5.6 14.9 7 8 Sponsored credit agencies......................... 5.2 9.2 21.4 25.6 14.5 20.6 15.9 13.2 20.0 21.3 8 9 Monetary authorities................................ 8.9 .3 9.2 6.2 8.5 9.8 7.0 10.1 13.6 6.1 9 10 Foreign.................................................... 26.4 8.4 .7 11.2 6.1 15.2 14.2 -2.0 11.4 19.0 10 11 Agency borrowing not included in line 1....... 5.9 8.4 19.9 23.1 13.5 17.7 14.0 13.1 18.0 17.4 11 Private domestic funds advanced 12 Total net advances........................................ 102.1 155.0 175.7 155.3 169.6 222.6 135.9 203.4 210.5 234.4 12 13 U.S. Govt, securities................................. -3.7 16.1 18.7 22.6 75.5 60.4 61.0 90.0 63.1 57.8 13 14 State and local obligations........................ 17.5 15.4 16.3 19.6 17.3 17.2 16.2 18.4 18.1 16.4 14 15 Corporate and foreign bonds.................... 19.5 13.1 10.0 20.9 32.8 30.3 38.9 26.7 27.0 33.5 15 16 Residential mortgages............................... 31.2 48.1 48.5 26.9 24.4 52.7 17.7 31.1 48.9 56.4 16 17 Other mortgages and loans....................... 35.0 62.3 89.3 71.9 15.7 60.1 -5.2 36.5 51.1 68.6 17 18 Less: FHLB advances.............................. -2.7 * 7.2 6.7 -4.0 -2.0 -7.3 -.6 -2.3 -1.7 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions............................... 109.7 149.4 163.8 126.2 116.0 181.8 97.7 134.3 161.9 201.1 19 20 Commercial banks.................................... 50.6 70.5 86.5 64.6' 27.6 57.7 13.5 41.7 41.5 73.6 20 21 Savings institutions................................... 39.1 47.2 36.0 27.0 51.0 69.7 49.8 52.2 71.0 68.2 21 22 Insurance and pension funds..................... 14.2 17.8 23.8 30.1 39.3 44.2 36.4 42.3 44.3 44.2 22 23 Other finance............................................ 5.9 13.8 17.4 4.5 -1.8 10.1 -*•9 -1.8 5.1 15.1 23 24 Sources of funds........................................... 109.7 149.4 163.8 126.2 116.0 181.8 97.7 134.3 161.9 201.1 24 25 Private domestic deposits.......................... 89.4 100.9 86.4 69.4 90.5 122.7 90.3 90.6 103.8 141.4 25 26 Credit market borrowing........................... 7.6 18.0 35.3 18.9 .1 10.3 -.8 1.0 9.1 11.4 26 27 Other sources............................................ 12.6 30.5 42.1 37.8 25.4 48.8 8.2 42.7 49.0 48.3 27 28 Foreign funds....................................... -3.9 5.3 6.9 14.5 -.4 2.5 -5.7 5.0 -2.7 7.7 28 29 Treasury balances................................. 2.2 .7 -1.0 -5.1 -1.7 -.1 -3.5 .1 3.9 -4.2 29 30 Insurance and pension reserves.............. 8.6 11.6 18.4 26.0 29.9 34.3 27 A 32.5 33.6 35.0 30 31 Other, net............................................. 5.7 12.8 17.8 2.4 -2.4 12.1 -10.1 5.2 14.2 9.9 31 Private domestic nonfinancial investors 32 Direct lending in credit markets..................... * 23.6 47.2 40.8 53.7 51.1 37.4 70.1 57.7 44.7 32 33 U.S. Govt, securities................................. -10.8 4.2 19.4 17.9 23.0 19.6 5.0 41.0 21.5 17.6 33 34 State and local obligations........................ .5 3.1 7.5 12.2 9.9 7.1 10.3 9.6 6.0 8.2 34 35 Corporate and foreign bonds.................... 8.3 4.2 .9 5.3 10.4 5.9 12.9 7.9 8.2 3.6 35 36 Commercial paper.................................... -1.1 3.0 12.5 4.6 3.1 6.3 3.5 2.7 10.6 2.0 36 37 Other...................................................... 3.2 9.1 6.9 8.1 7.3 12.2 5.6 8.9 11.3 13.2 37 38 Deposits and currency................................... 92.8 105.3 90.3 75.7 96.7 130.0 95.7 97.7 107.9 151.9 38 39 Time and saving accounts........................... 79.1 83.7 76.2 67.4 84.8 113.2 75.0 94.7 97.9 128.5 39 40 Large negotiable CD’s........................... 6.3 7.7 18.3 18.9 -13.3 -14.1 -27.3 .7 -17.9 -10.3 40 41 Other at commercial banks.................... 33.2 30.6 29.6 26.1 39.0 58.1 39.4 38.5 50.0 66.2 41 42 At savings institutions........................... 39.6 45.4 28.4 22.4 59.2 69.2 63.0 55.4 65.7 72.7 42 43 Money...................................................... 13.7 21.6 14.1 8.3 11.9 16.8 20.7 3.0 10.1 23.3 43 44 Demand deposits.................................. 10.4 17.2 10.2 2.0 5.7 9.5 15.3 -4.0 5.9 12.9 44 45 Currency.............................................. 3.4 4.4 3.9 6.3 6.2 7.3 5.4 7.1 4.2 10.5 45 46 Total of credit market instruments, deposits and currency......................................... 92.9 129.0 137.5 123.7 150.4 181.2 133.1 167.8 165.6 196.5 46 47 Public support rate (in per cent)................ 31.1 11.9 18.0 28.5 22.1 21.4 29.9 16.1 20.8 22.0 47 48 Private financial intermediation (in per cent) 107.4 96.4 93.2 81.2 68.4 81.6 71.9 66.0 76.9 85.8 48 49 Total foreign funds................................... 22.5 13.7 7.6 25.7 5.7 17.7 8.5 3.0 8.7 26.6 49 Memo: Corporate equities not included above 50 Total net issues............................................ 15.0 13.3 9.2 4.9 11.2 12.7 11.7 10.8 14.0 11.4 50 51 Mutual fund shares.................................. 1.3 -.5 -1.2 -.5 .8 .3 1.5 .1 -1.1 1.8 51 52 Other equities........................................... 13.7 13.8 10.4 5.4 10.4 12.3 10.2 10.7 15.0 9.6 52 53 Acquisitions by financial institutions............. 17.8 15.3 13.3 5.5 8.3 12.0 9.2 7.4 11.8 12.1 53 54 Other net purchases..................................... -2.9 -2.1 -4.1 -.7 2.9 .7 2.4 3.4 2.1 -.7 54 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 and net issues of Federally related mortgage pool securities. Included includes mortgages. below in lines 3, 13, and 33. 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. Note.—Full statements for sectors and transaction types quarterly, 28. Foreign deposits at commercial banks, bank borrowings from foreign and annually for flows and for amounts outstanding, may be obtained branches, and liabilities of foreign banking agencies to foreign af from Flow of Funds Section, Division of Research and Statistics, Board filiates. of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A46 Domestic Nonfinancial Statistics □ June 1977 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1976 1977 Measure 1974 1975 1976 Oct. Nov. Dec. Jan. Feb.1 Mar.r Apr.r May 1 Industrial production........................... 129.3 117.8 129.8 130.4 131.8 133.1 132.1 133.2 135.2 136.3 137.8 Market groupings: 2 Products, total............................. 129.3 119.3 129.3 129.6 131.7 133.8 133.1 133.9 135.1 135.9 137.2 3 Final, total.............................. 125.1 118.2 127.3 127.4 129.8 132.1 130.8 131.8 133.3 134.0 135.2 4 Consumer goods................... 128.9 124.0 136.8 136.9 139.1 142.0 140.2 141.0 143.0 143.0 143.6 5 Equipment............................ 120.0 110.2 114.3 114.4 116.9 118.6 117.8 119.0 119.8 121.6 123.6 6 Intermediate............................. 135.3 123.1 136.8 138.3 138.8 139.8 141.8 141.8 141.9 143.0 144.8 7 Materials..................................... 132.4 115.5 130.5 131.6 131.9 131.9 130.7 132.4 135.4 136.8 138.5 Industry groupings: 8 Manufacturing............................. 129.4 116.3 129.4 129.9 131.9 132.8 131.5 132.9 135.0 136.2 137.9 Capacity utilization (per cent)1 in— 9 Manufacturing................................ 84.2 73.6 80.1 79.7 80.8 81.2 80.2 80.8 82.0 82.4 83.3 10 Industrial materials industries.......... 87.7 73.6 80.3 80.3 80.3 80.1 79.1 80.0 81.6 82.3 83.1 11 Construction contracts2...................... 173.9 162.3 190.2 237.0 186.0 183.0 203.0 207.0 207.0 250.0 12 Nonagricultural employment, total3...... 119.1 116.9 120.6 121.2 121.6 122.0 122.3 122.7 123.6 123.9 124.2 13 Goods-producing, total.................... 106.2 96.9 100.3 100.2 100.9 101.0 101.3 101.9 103.2 103.8 104.2 14 Manufacturing, total.................... 103.1 94.3 97.5 97.4 98.0 98.2 98.8 98.9 99.8 100.2 100.5 15 Manufacturing, production-worker 102.1 91.3 95.2 94.9 95.6 95.7 96.5 96.5 97.6 98.1 98.7 16 Service-producing............................ 126.1 127.8 131.7 132.7 132.9 133.5 133.8 134.1 134.8 134.9 135.1 17 Personal income, total4........................ 184.1 199.4 219.1 224.9 226.8 229.7 230.0 233.7 237.2 239.0 18 Wages and salary disbursements....... 178.9 188.7 208.3 211.3 213.2 217.6 218.4 221.5 224.8 227.1 19 Manufacturing................................ 157.6 157.9 176.7 179.1 182.4 184.1 185.0 188.4 192.6 194.6 20 Disposable personal income................ 180.5 198.5 217.0 218.1 234.2 21 Retail sales5....................................... 171.2 186.0 206.6 208.8 212.3 221.2 216.5 215.7 227.4 227.6 229.3 Prices:6 22 Consumer....................................... 147.7 161.2 170.5 173.3 173.8 174.3 175.3 177.1 178.2 179.6 23 Wholesale....................................... 160.1 174.1 182.9 185.2 185.6 187.1 188.0 190.0 191.9 194.3 195.2 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). Series covers employees only, excluding personnel in the Armed Forces. Note.—Basic data (not index numbers) for series mentioned in notes 4 Based on data in Survey of Current Business (U.S. Dept, of Com 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be merce). Series for disposable income is quarterly. found in the Survey of Current Business (U.S. Dept, of Commerce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1976 1977 1976 1977 1976 1977 Series Q2 Q3 Q4 Qlr Q2 Q3 Q4 Ql Q2 Q3 Q4 Qlr Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing........................................ 129.4 131.1 131.5 133.1 161.3 162.3 163.2 164.3 80.2 80.8 80.6 81.0 2 Primary processing............................. 136.6 139.3 138.9 140.0 167.5 168.8 170.1 171.4 81.5 82.5 81.7 81.7 3 125.2 126.3 127.5 129.5 158.0 158.8 159.6 160.6 79.2 79.6 79.9 80.6 4 Materials............................................... 130.3 132.6 131.8 132.8 161.7 163.1 164.3 165.5 80.6 81.3 80.2 80.3 5 Durable goods..................................... 126.1 130.7 128.4 128.9 165.5 166.7 167.8 169.0 76.2 78.4 76.5 76.3 6 Basic metal...................................... 110.8 117.1 107.7 107.5 143.1 143.7 144.4 144.8 77.4 81.5 74.6 74.2 7 146.9 146.6 147.0 149.2 171.0 172.5 174.1 175.6 85.9 85.0 84.4 84.9 8 Textile, paper, and chemical............. 151.6 151.2 151.5 153.4 178.3 180.1 182.0 183.6 85.0 84.0 83.2 83.6 9 115.5 114.4 111.7 111.1 139.0 139.8 140.6 141.4 83.1 81.8 79.4 78.6 10 Paper........................................... 132.5 131.9 130.2 132.4 145.7 146.7 147.9 148.9 90.9 89.9 88.1 88.9 11 Chemical...................................... 175.3 175.1 177.6 180.5 208.7 211.2 213.7 216.2 84.0 82.9 83.1 83.5 12 Energy................................................ 120.0 119.9 121.5 121.9 141.5 142.7 143.9 144.3 84.8 84.0 84.4 84.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Manpower A47 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1976 1977 Category 1974 1975 1976 Nov. Dec. Jan. Feb. Mar. Apr. May p Household survey data 1 Noninstitutional population1............ 150,827 153,449 156,048 157,006 157,176 157,381 157,584 157,782 157,986 158,228 2 Labor force (including Armed Forces)1.................................. 93,240 94,793 96,917 98,020 98,106 97,649 98,282 98,677 98,892 99,286 3 Civilian labor force......................... 91,011 92,613 94,773 95,871 95,960 95,516 96,145 96,539 96,760 97,158 Employment: 4 Nonagricultural industries2....... 82,443 81,403 84,188 84,972 85,184 85,468 85,872 86,359 86,763 87,022 5 3,492 3,380 3,297 3,248 3,257 3,090 3,090 3,116 3,260 3,386 Unemployment: 6 Number.................................. 5,076 7,830 7,288 7,651 7,517 6,958 7,183 7,064 6,737 6,750 7 Rate (per cent of civilian labor force)................................ 5.6 8.5 7.7 8.0 7.8 7.3 7.5 7.3 7.0 6.9 8 Not in labor force........................... 57,587 58,655 59,130 58,986 59,071 59,732 59,302 59,104 59,094 58,943 Establishment survey data 9 Nonagricultural payroll employment3 78,413 77,050 79,443 80,106 80,344 80,561 80,824 '81,395 '81,605 81,792 10 Manufacturing............................. 20,046 18,347 18,958 19,065 19,095 19,211 19,233 '19,404 '19,481 19,547 11 Mining....................................... 694 745 783 805 808 817 823 '842 '847 849 12 Contract construction.................. 3,957 3,515 3,593 3,619 3,605 3,561 3,645 '3,759 '3,835 3,848 13 Transportation and public utilities. 4,696 4,499 4,508 4,519 4,553 4,549 4,553 '4,568 '4,568 4,578 14 Trade......................................... 17,017 16,997 17,694 17,808 17,898 17,981 18,067 '18,189 '18,194 18,214 15 Finance....................................... 4,208 4,222 4,315 4,381 4,403 4,423 4,431 '4,453 '4,459 4,477 16 Service........................................ 13,617 14,008 14,645 14,873 14,936 15,010 15,068 '15,149 '15,171 15,202 17 14,177 14,773 14,947 15,036 15,046 15,009 15,004 '15,031 '15,050 15,077 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. Based on data from Employment unpaid family workers, and members of the Armed Forces. Data are and Earnings (U.S. Dept, of Labor). adjusted to the February 1977 benchmark. Based on data from Employ 2 Includes self-employed, unpaid family, and domestic service workers. ment and Earnings (U.S. Dept, of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A48 Domestic Nonfinancial Statistics □ June 1977 2.13 INDUSTRIAL PRODUCTION 1967 = 100 except as noted; monthly data are seasonally adjusted. 1967 1976 1977 Grouping pro 1976 por aver tion age Mar. Apr. May r Dec. Jan. Feb.' Mar. Apr.P Maye Major market groupings 1 100.00 129.8 128.1 128.4 129.6 133.1 132.1 133.2 135.2 136.3 137.8 60.71 129.3 128.1 128.0 128.9 133.8 133.1 133.9 135.1 135.9 137.2 3 47 82 127.3 126.4 126.3 127.3 132.1 130.8 131.8 133.3 134.0 135.2 4 27.68 136.8 136.1 136.1 137.4 142.0 140.2 141.0 143.0 143.0 143.6 5 20.14 114.3 112.9 112.9 113.5 118.6 117.8 119.0 119.8 121.6 123.6 6 12.89 136.8 134.9 134.7 135.0 139.8 141.8 141.8 141.9 143.0 144.8 39.29 130.5 128.2 129.2 130.6 131.9 130.7 132.4 135.4 136.8 138.5 Consumer goods 8 7.89 141.5 140.4 141.1 143.2 151.2 145.1 146.1 152.3 152.4 152.8 9 Automotive products.................................... 2.83 154.8 155.1 155.2 154.0 180.4 164.0 161.8 178.2 175.1 173.0 10 Autos and utility vehicles........................... 2.03 149.9 149.5 152.1 153.4 180.1 155.8 152.7 176.1 171.2 167.4 11 Autos.................................................... 1.90 132.0 133.6 134.3 134.4 159.8 136.9 132.8 155.8 150.6 148.5 V Auto parts and allied goods......................... .80 167.2 169.5 163.1 135.6 181.7 184.9 184.5 183.7 184.9 187.0 n Home goods................................................. 5.06 134.1 132.0 133.1 137.2 134.9 134.6 137.3 137.9 139.7 141.6 14 Appliances, A/C, and TV.......................... 1.40 115.8 114.6 117.2 123.5 111.7 113.4 118.5 124.1 127.0 129.4 is Appliances and TV................................ 1.33 118.6 117.1 119.6 126.4 113.8 116.0 121.1 126.5 129.4 16 1.07 144.1 141.4 143.0 142.6 144.7 142.7 145.9 144.6 146.1 17 2.59 139.9 137.9 137.8 142.5 143.6 142.8 144.0 142.7 143.9 145.0 18 19.79 134.9 134.4 134.0 135.1 138.4 138.3 138.9 139.1 139.5 140.0 IQ 4.29 126.9 130.1 129.6 132.1 126.4 124.2 | 124.2 123.9 ?n 15.50 137.2 135.5 135.2 135.8 141.7 142.2 142.9 143.3 143.2 143.4 ?i Consumer foods and tobacco..................... 8.33 130.8 129.1 128.4 129.8 132.8 132.9 135.4 136.8 136.6 22 Nonfood staples........................................ 7.17 144.6 143.3 143.3 142.7 151.8 153.1 151.6 150.9 150.8 150.7 23 Consumer chemical products.................. 2.63 166.6 163.6 162.1 161.4 177.9 178.5 175.7 175.9 177.3 24 Consumer paper products...................... 1.92 113.3 113.4 114.2 113.8 117.7 117.0 113.3 116.9 115.2 25 Consumer energy products..................... 2.62 145.4 145.0 145.9 145.1 150.9 154.1 155.3 150.8 150.3 26 Residential utilities............................. 1.45 153.7 154.5 154.7 Equipment 27 Business equipment........................................... 12.63 136.1 134.0 134.1 134.6 143.2 142.0 143.1 144.4 146.7 149.3 28 Industrial equipment..................................... 6.77 127.9 125.6 125.3 126.9 133.5 131.4 133.2 133.8 135.9 138.4 29 Building and mining equip......................... 1.44 177.4 172.1 170.7 174.6 187.4 187.9 192.9 195.4 200.0 203.2 30 Manufacturing equipment......................... 3.85 106.4 104.4 105.4 106.4 110.7 107.8 108.5 109.0 111.1 114.0 31 Power equipment...................................... 1.47 135.3 135.6 132.7 134.0 140.0 137.5 139.3 138.5 137.9 139.0 32 Commercial transit, farm equip..................... 5.86 145.5 143.7 144.6 143.7 154.4 154.5 154.6 156.6 159.1 161.8 33 Commercial equipment.............................. 3.26 173.2 168.5 170.0 169.5 185.3 185.2 185.2 186.1 189.5 192.7 34 Transit equipment..................................... 1.93 103.8 104.7 105.6 104.2 109.1 108.4 108.7 112.9 114.3 116.1 35 Farm equipment....................................... .67 130.6 134.7 132.7 133.1 134.8 138.0 137.7 138.8 140.5 36 Defense and space equipment............................ 7.51 77.9 77.4 77.3 78.2 77.4 77.1 78.5 78.4 79.3 80.3 Intermediate products 37 Construction supplies....................................... 6.42 132.0 128.7 128.0 130.9 135.5 136.1 135.7 136.4 137.8 139.6 38 Business supplies............................................. 6.47 141.5 141.2 141.3 139.0 144.2 147.3 147.8 147.4 148.0 39 Commercial energy products......................... 1.14 156.5 157.6 156.8 157.1 156.7 162.3 165.7 164.5 165.4 Materials 40 Durable goods materials.................................... 20.35 126.6 122.4 124.5 126.8 128.3 126.8 128.0 131.9 134.2 136.7 41 Durable consumer parts................................ 4.58 121.6 118.5 119.2 123.0 124.7 121.5 124.1 127.8 131.4 134.3 42 Equipment parts........................................... 5.44 133.9 128.5 130.5 133.0 138.8 135.1 137.3 137.8 140.5 143.1 43 Durable materials n.e.c................................. 10.34 125.0 121.0 123.5 125.2 124.2 124.8 124.9 130.7 131.9 134.5 44 Basic metal materials................................ 5.57 109.8 104.0 107.8 113.2 104.7 104.7 104.8 113.0 115.0 45 Nondurable goods materials.............................. 10.47 146.4 146.7 146.9 146.2 146.2 144.6 150.3 152.6 153.8 154.8 46 Textile, paper, and chem. mat....................... 7.62 151.2 152.7 152.2 150.9 150.6 148.8 154.2 157.2 158 7 159.6 47 Textile materials........................................ 1.85 114.4 115.5 114.1 116.4 113.6 110.6 110.4 112.4 113.0 48 Paper materials......................................... 1.62 131.1 130.1 132.1 131.2 127.6 127.6 133.2 136.5 136 2 49 Chemical materials.................................... 4.15 175.5 178.0 177.2 173.9 176.3 174.2 181.9 185.5 187.8 50 Containers, nondurable................................ 1.70 142.6 141.3 141.9 140.7 143.8 139.5 150.7 150.0 149.9 51 Nondurable materials n.e.c............................ 1.14 120.0 115.1 120.4 123.2 119.7 122.6 124.3 126.0 126.4 52 Energy materials.............................................. 8.48 120.3 119.6 118.8 120.6 123.1 122.6 120.8 122.4 122.1 53 Primary energy............................................. 4.65 107.0 106.2 105.0 106.2 106.6 102.9 103.1 108.5 106.3 54 Converted fuel materials............................... 3.82 136.4 136.0 135.7 138.1 143.2 146.5 142.3 139.5 141.4 Supplementary groups 55 Home goods and clothing................................ 9.35 130.8 131.1 131.5 134.9 131.0 129.8 131.3 131.5 133.4 135 3 56 Energy, total.................................................... 12.23 129.0 128.6 128.2 129.3 132.2 133.0 132.4 132.4 132.1 132 .*4 57 Products...................................................... 3.76 148.8 148.8 149.3 148.8 152.7 156.5 158.4 155 0 154.8 58 Materials...................................................... 8.48 120.3 119.6 118.8 120.6 123.1 122.6 120.8 122.4 122.1 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Output A49 2.13 Continued 1967 1976 1977 Grouping SIC pro 1976 code por aver tion age Mar. Apr. May Dec. Jan. Feb.r Mar. Apr.P Maye Gross value of products in market structure (annual rates, in billions of 1972 dollars) 1 1507.4 550.6 546.2 545.0 551.5 570.6 564.2 570.3 577.8 579.2 585.6 o 1390.9 426.2 422.9 421.8 427.5 443.9 436.5 441.2 448.4 448.5 452.9 3 1277.5 302.9 299.8 299.9 303.7 315.7 309.3 312.6 316.8 316.1 317.9 4 U13.4 123.5 123.5 122.1 123.7 128.2 127.2 128.6 131.7 132.2 134.7 5 Intermediate products......................... U16.6 124.3 122.6 123.0 123.7 126.5 127.8 128.6 129.2 130.9 132.7 Major industry groupings 12.05 HI.9 131.6 131.2 132.0 134.8 136.1 136.4 136.1 135.3 135.9 7 6.36 114.1 113.9 113.5 113.0 116.2 113.2 116.5 120.3 119.0 119.9 8 5.69 151.7 151.4 150.8 153.0 155.5 161.5 158.8 154.0 153.4 153.9 Q 3.88 167.3 165.7 169.8 1 0 Afsinufsirturincr____________________ 87.95 129.4 127.9 128.5 129.6 132.8 131.5 132.9 135.0 136.2 137.9 11 Nondurable........................................ 35.97 141.0 140.7 140.7 140.9 143.7 143.7 145.7 146.8 147.5 148.9 12 Durable.............................................. 51.98 121.4 119.0 120.1 121.7 125.2 123.0 124.0 126.8 128.3 130.3 Mining 13 Metal mining....................................... 10 .51 122.8 122.3 124.3 118.3 130.4 135.6 132.3 133.8 127.5 14 Coal................................................... 11, 12 .69 116.9 114.4 114.4 119.2 125.9 95.3 100.8 124.1 118.4 122.4 15 Oil and gas extraction......................... 13 4.40 112.0 111.9 111.3 110.8 112.8 112.0 115.8 117.0 117.3 118.0 16 Stone and earth minerals..................... 14 .75 118.3 119.3 117.5 116.7 117.9 121.6 124.9 126.4 124.9 Nondurable manufactures 17 Foods................................................. 20 8.75 132.0 128.3 129.2 131.2 134.3 135.5 137.1 138.5 139.3 18 Tobacco products................................ 21 .67 117.2 122.4 115.4 114.5 119.1 114.8 117.0 117.0 19 Textile mill products........................... 22 2.68 135.9 136.4 135.7 138.0 133.3 131.8 133.0 133.1 135.4 20 Apparel products................................ 23 3.31 126.1 126.3 126.1 130.3 128.0 123.6 125.2 123.5 21 Paper and products............................. 26 3.21 133.1 132.2 133.9 134.0 131.8 130.6 136.5 136.§ 137.9 140.4 22 Printing and publishing........................ 27 4.72 120.7 121.0 122.0 120.5 123.1 124.3 122.4 124.0 123.6 125.0 23 Chemicals and products....................... 28 7.74 169.4 170.6 168.7 166.6 173.6 172.0 175.1 177.5 177.6 24 Petroleum products............................. 29 1.79 132.7 131.8 131.6 132.7 138.9 141.0 145.4 145.1 146.2 145.2 25 Rubber & plastic products................... 30 2.24 199.8 203.5 198.2 185.6 212.3 218.7 220.4 225. S 226.9 26 Leather and products........................... 31 .86 82.0 86.0 87.7 91.4 73.4 74.8 75.0 73. S 73.7 Durable manufactures 27 Ordnance, pvt. & govt......................... 19,91 3.64 71.7 69.5 69.1 71.4 71.8 70.8 72.4 72.5 74.0 74.5 28 Lumber and products......................... 24 1.64 125.1 121.1 122.8 123.0 127.5 132.7 132.2 132.1 132.5 29 Furniture and fixtures.......................... 25 1.37 132.8 130.6 131.7 131.0 135.7 135.1 137.1 136.5 137.4 30 Clay glass, stone prod......................... 32 2.74 135.8 133.7 132.7 133.9 142.0 137.3 139.0 143.7 143.8 31 33 6.57 108.0 101.4 105.4 113.2 102.7 100.0 100.4 107.2 112.3 117.3 32 Iron and steel.................................. 331,2 4.21 104.4 97.7 103.5 110.7 95.6 89.8 91.3 97.9 104.4 111.5 33 Fabricated metal prod......................... 34 5.93 123.3 120.2 121.5 121.4 128.2 125.7 126.0 127.8 129.1 130.7 34 Nonelectrical machinery...................... 35 9.15 134.7 132.9 133.5 134.0 141.2 139.5 139.4 146.4 142.7 145.4 35 Electrical machinery............................ 36 8.05 131.7 127.8 130.0 131.8 135.6 134.0 137.6 138.1 139.7 141.7 36 Transportation equip........................... 37 9.27 110.6 111.2 110.6 112.9 118.2 113.5 113.4 120.5 119.7 120.8 37 Motor vehicles & pts........................ 371 4.50 140.7 140.8 141.3 144.3 156.4 145.5 145.4 \6l.2 158.2 158.5 38 Aerospace & misc. tr. eq................... 372,9 4.77 82.2 83.3 81.7 83.3 82.4 83.4 83.3 82.3 83.5 85.4 39 Instruments........................................ 38 2.11 148.2 144.4 145.4 149.0 155.7 153.7 157.0 156.9 156.8 157.7 40 Miscellaneous mfrs.............................. 39 1.51 143.5 142.5 140.7 145.5 146.8 147.8 147.9 147.4 148.7 150.1 i 1972 dollars. Note.—Published groupings include some series and subtotals not shown separately. For summary description and historical data, see Bulletin for June 1976, pp. 470-79. Availability of detailed descriptive and historical data will be announced in a forthcoming Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 Domestic Nonfinancial Statistics □ June 1977 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates. Exceptions noted. 1976 1977 Item 1974 1975 1976 Oct. Nov. Dec. Jan. j Feb. Mar.r Apr. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized...................... ,074 927 1,281 1,492 1,590 1,514 1,307 1,529 1,712 1,534 2 1-family................................. 644 669 895 998 1,072 1,053 927 1,064 1,208 1,051 3 2-or-more-family.................... 431 278 386 494 518 461 380 465 504 483 A Started..................................... ,338 1,160 1,540 1,715 1,706 1,889 1,384 r1,802 2,114 1,875 5 1-family................................. 888 892 1,163 1,269 1,236 1,324 1,006 *•1,424 1,520 1,444 6 2-or-more-family.................... 450 268 377 446 470 565 378 r378 594 431 7 Under construction, end of period 1 ',189 1,003 1,157 1,140 1,168 1,192 r 1,198 r1,215 1,247 8 1-family................................. 516 531 656 662 671 686 r692 r709 740 9 2-or-more-family.................... 673 All 501 478 497 507 r506 r505 508 10 Completed................................. ',692 1,297 1,362 1,326 1,399 1,444 r1,416 r 1,642 1,659 11 1-family................................. 931 866 1,026 989 1,068 1,078 rl, 103 *■1,245 1,194 12 2-or-more-family.................... 760 430 336 337 331 366 r313 r397 465 13 Mobile homes shipped............... 329 213 250 263 247 248 258 275 275 254 Merchant builder activity in 1-family units: 14 Number sold............................. 501 544 639 728 694 r808 r815 r864 807 15 Number for sale, end of period *.. 407 383 433 420 429 r431 r432 r435 438 Price (thous. of dollars)2 Median: 16 Units sold........................... 35.9 39.3 44.2 45.3 45.8 r45.9 r45.7 r47.8 46.4 17 Units for sale...................... 36.2 38.9 41.6 41.0 41.2 41,6 r41.9 42.0 42.9 Average: 18 Units sold........................... 38.9 42.5 48.1 50.4 50.0 50,6 "50.7 r52.7 52.4 55.1 EXISTING UNITS (1-family) 19 Number sold............................. >,272 2,452 3,002 3,230 3,300 3,470 3,190 3,080 3,410 3,300 Price of units sold (thous. of dollars):2 20 Median.............................. 32.0 35.3 38.1 38.5 38.8 39.0 39.6 40.7 41.0 42.0 21 Average............................. 35.8 39.0 42.2 42.4 42.9 43.3 44.0 45.1 45.5 46.5 Value of new construction 3 (millions of dollars) CONSTRUCTION 22 Total put in place........................... 138,526 132,043 144,821 148,475 152,819 152,185 137,087 r148,893 159,319 163,384 23 Private........................................... 100,179 93,034 108,424 114,503 118,752 118,918 107,153 r116,441 125,679 128,278 24 Residential.................................. 50,378 46,476 59,948 65,405 69,181 69,951 63,404 r68,080 74,978 77,114 25 Nonresidential, total................... 49,801 46,558 48,476 49,098 49,571 48,967 43,749 '48,361 50,701 51,164 Buildings: 26 Industrial............................. 7,902 8,017 6,910 6,407 6,461 6,453 6,088 6,398 7,194 7,168 27 Commercial.......................... 15,945 12,804 12,586 12,560 12,522 12,859 12,178 12,449 13,927 13,808 28 Other................................... 5,797 5,585 6,252 6,489 6,677 6,497 5,978 5,892 5,930 6,193 29 Public utilities and other.......... 20,157 20,152 22,728 23,642 23,911 23,158 19,505 '23,622 23,650 23,995 30 Public............................................ 38,347 39,009 36,397 33,972 34,067 33,267 29,934 32,452 33,640 35,106 31 Military...................................... 1,188 1,391 1,479 1,467 1,622 1,567 1,509 1,597 1,444 1,585 32 Highway..................................... 12,069 10,345 9,112 8,738 7,843 7,508 5,975 *•7,244 7,916 33 Conservation and development... 2,741 3,227 3,659 2,949 A,011 3,856 3,446 *•4,037 3,769 34 Other.......................................... 22,349 24,046 22,147 20,818 20,525 20,336 19,004 *•19,574 20,511 1 Not at annual rates. Note.—Census Bureau estimates for all series except (a) mobile 2 Not seasonally adjusted. homes, which are private, domestic shipments as reported by the Manu 3 Value of new construction data in recent periods may not be strictly factured Housing Institute and seasonally adjusted by the Census Bureau, comparable with data in prior periods due to changes by the Bureau of and (b) sales and prices of existing units, which are published by the the Census in its estimating techniques. For a description of these changes National Association of Realtors. All back and current figures are avail see Construction Reports (C-30-76-5), issued by the Bureau in July 1976. able 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 1977 1976 1977 Apr. 1976 1977 1977 Apr. Apr. (1967 June Sept. Dec. Mar. Dec. Jan. Feb. Mar. Apr. = 100)1 Consumer prices 1 AH items................................................. 6.1 6.8 6.1 5.3 4.2 10.0 .4 .8 1.0 .6 .8 179.6 4.8 6.3 6.0 3.9 3.4 10.4 .4 .8 1.2 .5 .8 173.3 3 Food................................................... 4.7 6.5 6.2 1.6 0.0 14.6 .1 .9 2.0 .6 1.5 190.9 4 Commodities less food......................... 4.8 6.1 5.6 5.5 5.7 7.4 .6 .7 .7 .4 .4 163.6 5 Durable........................................... 5.8 6.8 6.5 5.0 6.0 10.5 .7 .9 .9 .6 .5 162.2 6 Nondurable..................................... 4.4 6.1 5.0 6.0 5.4 10.1 .4 .5 1.5 .5 .9 177.4 7 Services.................................................. 8.3 7.7 6.5 7.5 5.1 9.8 .4 .9 .6 .8 .5 191.3 8 Rent................................................... 5.4 5.9 5.4 5.4 5.3 6.3 .5 .8 .3 .5 .7 151.6 9 Services less rent.................................. 8.7 7.8 6.7 7.7 5.4 10.4 .4 .9 .7 .8 .8 198.6 Other groupings : 10 All items less food1............................. 6.5 6.8 7.0 7.4 5.3 6.9 .3 .4 .6 .6 .7 176.3 11 All items less shelter1.......................... 6.3 6.9 6.9 5.6 4.3 9.4 .3 .5 1.1 .6 .8 177.5 5.3 6.4 4.3 8.0 1.2 9.1 .1 .9 .7 .6 .9 201.0 Wholesale prices 13 All commodities...................................... 5.3 7.2 6.6 3.5 7.1 10.2 .6 .5 .9 1.1 1.1 194.3 14 Farm products, and processed foods and 2.7 6.6 13.4 -12.0 6.6 19.1 2.1 .3 2.0 2.1 2.9 195.9 15 Farm products.................................... 8.6 7.9 18.2 -11.9 5.8 26.0 2.6 1.1 2.2 2.5 3.4 208.1 16 Processed foods and feeds.................... -.8 5.9 10.3 -11.8 6.5 15.6 1.8 -.1 1.8 1.9 2.5 188.5 6.1 7.3 4.8 8.0 7.6 7.9 .3 .5 .6 .8 .6 193.2 Materials, supplies, and components of which: 18 Crude materials2.............................. 10.4 15.2 16.4 10.6 21.6 21.9 -2.2 -1.2 4.0 2.3 .3 283.1 19 Intermediate materials 3.................... 5.6 7.0 3.5 8.3 7.1 8.0 .5 .5 .6 .9 .6 200.5 Finished goods, excluding foods: 5.8 6.9 3.6 7.7 5.2 8.5 .3 1.0 .3 .8 .7 170.3 21 Durable....................................... 4.4 5.2 3.1 5.1 3.3 7.0 .1 .7 .5 .4 .7 150.5 22 Nondurable.................................. 6.6 7.9 3.8 9.1 6.5 9.5 .3 1.1 .2 1.0 .7 183.5 23 Producer.......................................... 6.6 6.0 4.3 4.7 9.5 5.3 .7 .4 .5 .4 .6 181.6 Memo: 24 Consumer foods..................................... 4.1 3.6 13.2 -13.1 8.4 12.7 2.8 -.1 2.0 1.1 2.5 188.5 1 Not seasonally adjusted. 3 Excludes intermediate materials for food manufacturing and manu 2 Excludes crude foodstuffs and feedstuffs, 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 □ June 1977 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1975 1976 1977 1974 1975 1976 Q4 Ql Q2 Q3 I Q4 Ql Gross national product 1 1,413.2 1,516.3 1,691.6 1,588.2 1,636.2 1,675.2 1,708.9 1,745.1 1,796.1 By source: 2 Personal consumption expenditures................ 887.5 973.2 1,079.7 1,012.0 1,043.6 1,064.7 1,088.5 1,122.0 1,159.1 3 Durable goods......................................... 121.6 131.7 156.5 141.8 151.4 155.0 157.6 162.0 174.0 4 Nondurable gootls................................... 376.2 409.1 440.4 421.6 429.1 434.8 441.8 456.0 464.7 5 Services................................................... 389.6 432.4 482.8 448.6 463.2 474.9 489.1 504.0 520.4 6 Gross private domestic investment................. 215.0 183.7 239.6 201.4 229.6 239.2 247.0 242.8 267.9 7 Fixed investment..................................... 204.3 198.3 227.7 205.7 214.7 223.2 231.9 241.0 254.1 8 Nonresidential....................................... 149.2 147.1 160.0 148.7 153.4 157.9 163.0 165.6 173.9 9 Structures......................................... 54.1 52.0 55.3 52.1 53.2 54.9 56.0 57.0 56.6 10 Producers’ durable equipment............ 95.1 95.1 104.7 96.6 100.2 103.0 107.0 108.6 117.4 11 Residential structures........................... 55.1 51.2 67.7 57.0 61.3 65.3 68.9 75.5 80.2 12 Nonfarm.......................................... 52.7 49.0 65.1 54.2 58.6 62.9 66.3 72.7 11A 13 Change in business inventories................. 10.7 -14.6 11.9 -4.3 14.8 16.0 15.1 1.7 13.8 14 Nonfarm.............................................. 12.2 -17.6 11.9 -9.5 12.7 17.3 15.6 2.2 13.0 15 Net exports of goods and services.................. 7.5 20.5 6.6 21.0 8.4 9.3 4.7 4.2 -9.3 16 Exports................................................... 144.4 148.1 162.7 153.7 154.1 160.3 167.7 168.5 170.5 17 Imports................................................... 136.9 127.6 156.0 132.7 145.7 151.0 163.0 164.3 179.8 18 Govt, purchases of goods and services............ SOS. 3 339.0 365.6 353.8 354.7 362.0 369.6 376.2 378.5 19 Federal.................................................... 111.6 124.4 133.4 130.4 129.2 131.2 134.5 138.9 138.2 20 State and local......................................... 191.6 214.5 232.2 223.4 225.5 230.9 235.0 237.4 240.3 By major type of product: 21 Final sales, total.......................................... 1,402.5 1,531.0 1,679.7 1,592.5 1,621.4 1,659.2 1,694.7 1,743.4 1,782.4 22 Goods...................................................... 639.7 681.7 760.2 719.7 742.3 758.4 766.1 774.3 802.9 23 Durable goods..................................... 247.2 254.4 300.5 270.0 282.7 301.2 308.2 309.8 333.7 24 Nondurable.......................................... 392.4 427.3 459.8 449.7 459.6 457.1 457.9 464.5 469.1 25 Services................................................... 626.6 692.5 772.0 719.5 742.6 759.6 781.5 804.4 824.3 26 Structures................................................ 146.9 142.1 159.3 149.1 151.3 157.3 162.2 166.5 169.0 27 Change in business inventories..................... 10.7 -14.6 11.9 -4.3 14.8 16.0 15.1 1.7 13.8 28 Durable goods......................................... 7.1 -12.1 2.7 -10.6 -3.6 5.4 6.8 2.0 8.2 29 Nondurable goods................................... 3.6 -2.6 9.2 6.3 18.5 10.6 8.3 -.3 5.6 Memo: 30 Total GNP in 1972 dollars............................. 1,214.0 1,191.7 1,264.7 1,219.2 1,246.3 1,260.0 1,272.2 1,280.4 1,300.3 National income 31 1,135.7 1,207.6 1,348.4 1,264.6 1,304.7 1,337.4 1,362.5 1,389.3 1,431.4 32 Compensation of employees............................ 875.8 928.8 1,028.4 963.1 994.4 1,017.2 1,037.5 1,064.5 1,097.7 33 Wages and salaries....................................... 764.5 806.7 890.4 836.4 861.5 881.1 897.8 921.0 947.1 34 Government and Government enterprises.. 160.4 175.8 190.7 182.2 185.4 188.7 191.7 197.0 200.0 35 Other...................................................... 604.1 630.8 699.7 654.1 676.1 692.4 706.1 723.9 747.1 36 Supplement to wages and salaries.................. 111.3 122.1 138.0 126.7 132.9 136.2 139.6 143.5 150.5 37 Employer contributions for social insurance.......................................... 55.8 59.7 67.9 61.6 65.9 67.1 68.6 70.2 74.7 38 Other labor income.................................. 55.5 62.5 70.1 65.2 67.1 69.0 71.1 73.3 75.8 39 Proprietors' income1........................................ 86.9 90.2 96.7 97.2 93.2 100.3 96.1 97.1 103.6 40 Business and professional1........................... 61.1 65.3 73.8 69.0 71.4 72.8 74.4 76.8 79.6 41 Farm1........................................................ 25.8 24.9 22.8 28.3 21.9 27.5 21.7 20.3 24.0 42 Rental income of persons2.............................. 21.0 22.4 23.5 22.9 23.3 23.1 23.4 24.3 25.1 43 Corporate profits1.......................................... 84.8 91.6 117.8 105.6 115.1 116.4 122.0 117.8 116.2 44 Profits before tax3....................................... 127.6 114.5 147.9 131.3 141.1 146.2 150.2 154.2 156.3 45 Inventory valuation adjustment.................... -39.8 -11.4 -14.6 -12.3 -11.5 -14.4 -12.6 -20.0 -23.1 46 Capital consumption adjustment.................. -3.0 -11.5 -15.5 -13.5 -14.5 -15.4 -15.7 -16.4 -17.0 47 Net interest.................................................... 67.1 74.6 82.0 75.8 78.6 80.3 83.5 85.6 88.9 1 With inventory valuation and capital consumption adjustments. 3 For after-tax profits, dividends, etc., see Table 1.50. 2 With capital consumption adjustments. 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 1977 1974 1975 1976 Account Q4 Ql Q2 Q3 Q4 Ql Personal income and saving 1 Total personal income..................................... 1,153.3 1,249 7 1,375.3 1,299.7 1,331.3 1,362.0 1,386.0 1,421.7 1,464.0 2 Wage and salary disbursements......................... 765.0 806.7 890.4 836.4 861.5 881.1 897.8 921.0 947.1 3 Commodity-producing industries.................. 273.9 275.3 304.8 285.8 295.3 302.9 307.0 314.0 323.9 4 Manufacturing......................................... 211.4 211.7 237.0 220.3 229.6 235.6 238.9 243.9 253.0 5 Distributive industries.................................. 184.4 195.6 214.9 202.3 208.3 212.8 216.5 221.9 229.2 6 Service industries........................................ 145.9 159.9 180.0 166.1 172.4 176.7 182.7 188.1 194.0 7 Government and government enterprises...... 160.9 175.8 190.7 182.2 185.4 188.7 191.7 197.0 200.0 8Other labor income........................................ 55.5 62.5 70.1 65.2 67.1 69.0 71.1 73.3 75.8 9 Proprietors’ income1........................................ 86.9 90.2 96.7 97.2 93.2 100.3 96.1 97.1 103.6 10 Business and professional1........................... 61.1 65.3 73.8 69.0 71.4 72.8 74.4 76.8 79.6 11 Farm1........................................................ 25.8 24.9 22.8 28.3 21.9 27.5 21.7 20.3 24.0 12 Rental income of persons2.............................. 21.0 22.4 23.5 22.9 23.3 23.1 23.4 24.3 25.1 13Dividends...................................................... 30.8 32.1 35.1 32.2 33.1 34.4 35.4 37.7 37.6 14 Personal interest income.................................. 101.4 110.7 123.0 114.4 118.0 120.7 125.0 128.4 131.6 15 Transfer payments.......................................... 140.3 175.2 191.3 182.5 188.6 187.6 192.4 196.6 202.8 16 Old-age survivors, disability, and health insurance benefits.................................. 70.1 81.4 93.0 86.3 88.1 89.5 95.8 98.5 100.0 17 Less : Personal contributions for social insurance.............................................. 47.6 50.0 54.9 51.0 53.4 54.3 55.2 56.6 59.7 18 Equals: Personal income............................... 1,153.3 1,249.7 1,375.3 1,299.7 1,331.3 1,362.0 1,386.0 1,421.7 1,464.0 19 Less : Personal tax and nontax payments.... 170.4 168.8 193.6 179.8 183.8 189.5 195.8 205.3 218.2 20 Equals: Disposable personal income.............. 982.9 1,080.9 1,181.7 1,119.9 1,147.6 1,172.5 1,190.2 1,216.5 1,245.8 21 Less: Personal outlays................................ 910.7 996.9 1,105.2 1,036.2 1,068.0 1,089.6 1,114.3 1,148.6 1,186.1 22 Equals: Personal saving................................ 72.2 84.0 76.5 83.7 79.5 82.9 75.8 67.8 59.7 Memo: Per capita (1972 dollars): 23 Gross national product................................ 3,968.0 4,007.0 4,140.0 4,049.0 4,103.0 4,143.0 4,142.0 4,168.0 4,195.0 24 Personal consumption expenditures.............. 887.5 973.2 1,079.7 1,012.0 1,043.6 1,064.7 1,088.5 1,122.0 1,159.1 25 Disposable personal income......................... 840.8 855.5 890.5 867.5 880.4 890.5 892.0 899.6 907.0 26 Saving rate (per cent)...................................... 7.3 7.8 6.5 7.5 6.9 7.1 6.4 5.6 4.8 Gross saving 27 Gross private saving........................................ 211.6 255.6 274.6 269.4 273.8 279.1 278.9 266.7 261.8 28 Personal saving........................................... 72.2 84.0 76.5 83.7 79.5 82.9 75.8 67.8 59.7 29 Undistributed corporate profits1................... 1.7 10.3 18.3 16.2 20.6 18.5 21.5 12.7 9.9 30 Corporate inventory valuation adjustment.... -39.8 -11.4 -14.6 -12.3 -11.5 -14.4 -12.6 -20.0 -23.1 Capital consumption allowances: 31 Corporate................................................ 84.6 100.9 112.8 106.4 108.8 111.6 113.9 116.9 119.5 32 Noncorporate.......................................... 53.1 60.4 67.0 63.2 64.8 66.1 67.7 69.3 72.6 33 Wace accruals less disbursements................. 34 Government surplus, or deficit (—), national income and product accounts...................... -4.2 -64.4 -44.7 -61.5 -51.6 -44.9 -44.7 -37.4 -21.2 35 Federal...................................................... -11.5 -71.2 -58.6 -69.4 -63.8 -54.1 -57.4 -59.3 -41.3 36 State and local............................................ 7.3 6.9 14.0 7.9 12.2 9.2 12.7 21 .9 20.1 37 Capital grants received by the United States, net.......................................................... -2.0 38 Investment...................................................... 211.9 195.6 237.7 214.0 229.4 240.0 242.9 238.4 249.8 39 Gross private domestic................................ 215.0 183.7 239.6 201.4 229.6 239.2 247.0 242.8 267.9 40 Net foreign................................................. -3.0 11.9 -2.0 12.6 -.2 .8 -4.1 -4.3 -18.1 41 Statistical discrepancy..................................... 6.8 4.4 7.7 6.1 7.2 5.8 8.7 9.2 9.2 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
A54 International Statistics □ June 1977 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars, quarterly data are seasonally adjusted except as noted.1 1975 1976 Item credits or debits 1974 1975 1976 Q4 Ql Q2 Q3 Q4 1 Merchandise exports....................................................... 98,310 107,088 114,692 27,657 26,997 28,378 29,600 29,717 2 Merchandise imports...................................................... 103,679 98,058 123,916 25,437 28,324 29,914 32,387 33,291 3 Merchandise trade balance 2......................................... -5,369 9,030 -9,224 2,220 -1,327 -1,536 -2,787 -3,574 -2,083 -883 391 12 -15 -155 339 223 5 Investment income, net................................................... 10,227 6,007 10,538 1,670 2,286 2,468 2,784 3,000 6 Other service transactions, net......................................... 812 2,163 2,696 455 475 781 860 578 3,586 16,316 4,401 4,357 1,419 1,558 1,196 227 8 Remittances, pensions, and other transfers.................... -1,710 -1,727 -1,866 -433 . -483 -452 -446 -487 9 U.S. Govt, grants (excluding military).......................... -5,475 -2,893 -3,139 -818 -635 -468 -1,479 -557 10 Balance on current account............................................... -3,598 11,697 -604 3,106 301 638 -729 -817 11 Not seasonally adjusted................................................. 4,305 1,449 742 -3,677 883 12 Change in U.S. Govt, assets, other than official reserve assets, net (increase, —)............................................ 365 -3,463 -4,295 -952 -684 -1,009 -1,450 -1,153 13 Change in U.S. official reserve assets (increase, —)............. -1,434 -607 -2,530 89 -773 -1,578 -407 228 14 Gold........................................................................... 15 SDR’s........................................................................ -172 -66 -78 -21 -45 14 -18 -29 16 Reserve position in IMF.............................................. -1,265 -466 -2,212 -57 -237 -798 -716 -461 17 Foreign currencies....................................................... 3 -75 -240 167 -491 -794 327 718 18 Change in U.S. private assets abroad (increase,—)............. -32,323 -27,523 -36,195 -10,375 -8,550 -7,288 -6,824 -13,534 19 Bank-reported claims.................................................... -19,494 -13,487 -20,742 -5,348 -3,582 -4,767 -3,355 -9,038 20 Long-term............................................................... -1,183 -2,373 -2,098 -943 -250 -385 -993 -470 21 Short-term............................................................... -18,311 -11,114 -18,644 -4,405 -3,332 -4,382 -2,362 -8,568 22 Nonbank-reported claims.............................................. -3,221 -1,522 -1,772 -972 -751 -962 721 -780 23 Long-term............................................................... -474 -441 -14 -379 -187 146 53 -26 24 Short-term............................................................... -2,747 -1,081 -1,758 -593 -564 -1,108 668 -754 25 U.S. purchase of foreign securities, net......................... -1,854 -6,206 -8,682 -2,361 -2,460 -1,357 -2,743 -2,123 26 U.S. direct investments abroad, net.............................. -7,753 -6,307 -5,000 -1,694 -1,757 -202 -1,447 -1,593 27 Change in foreign official assets in the United States (in crease, -f-)................................................................ 10,981 6,899 18,107 2,771 3,942 4,105 2,999 7,061 28 U.S. Treasury securities............................................... 3,282 4,338 9,301 1,069 1,998 2,166 1,261 3,876 29 Other U.S. Govt, obligations....................................... 902 891 566 307 68 316 66 116 30 Other U.S. Govt, liabilities4........................................ 724 1,732 5,013 499 1,482 797 1,746 988 31 Other U.S. liabilities reported by U.S. banks................. 5,818 -2,158 1,012 134 -275 135 -598 1,750 32 Other foreign official assets5........................................ 254 2,095 2,215 762 669 691 524 331 33 Change in foreign private assets in the United States (in crease,-!-)................................................................. 21,452 8,427 15,022 3,103 1,454 3,225 5,248 5,095 34 U.S. bank-reported liabilities........................................ 16,017 647 10,974 691 675 3,518 1,766 5,015 9 -300 172 146 -91 -25 67 221 16,008 947 10,802 545 766 3,543 1,699 4,794 1,615 171 -588 -68 24 -248 -324 -40 -212 345 -1,017 10 -332 -188 -285 -212 1,827 -174 429 -78 356 -60 -39 172 40 Foreign private purchases of U.S. Treasury securities, net. 697 2,667 2,825 213 453 -598 3,026 -56 41 Foreign purchases of other U.S. securities, net.............. 378 2,505 1,250 1,038 1,030 131 68 21 42 Foreign direct investments in the United States, net...... 2,745 2,437 561 1,229 -728 422 712 155 43 Allocations of SDR’s...................................................... 44 Discrepancy.................................................................... 4,557 4,570 10,495 2,258 4,310 1,907 45 Owing to seasonal adjustments..................................... 1,275 958 73 46 Statistical discrepancy in recorded data before seasonal 1 ’"iVf ""■* 00 3,120 1,773 4,557 4,570 10,495 983 3,352 1,834 3,963 1,347 Memo : Changes in official assets: 47 U.S. official reserve assets (increase,—)......................... -1,434 -607 -2,530 89 -773 -1,578 -407 228 48 Foreign official assets in the U.S. (increase,-)-).............. 10,257 5,166 13,094 2,272 2,460 3,308 1,253 6,073 49 Changes in OPEC official assets in the U.S. (part of line 27 above)..................................................................... 10,841 7,108 9,517 1,996 3,491 3,339 1,687 1,000 50 Transfers under military grant programs (excluded from lines 1, 4, and 9 above)............................................. 1,817 2,232 400 177 50 99 156 95 1 Seasonal factors are no longer calculated for lines 13 through 50. excludes certain military sales to Israel from exports and excludes U.S. 2 Data are on an international accounts (IA) basis. Differs from the Govt, interest payments from imports. Census basis primarily because the IA basis includes imports into the 4 Primarily associated with military sales contracts and other transac U.S. Virgin Islands, and it excludes military exports, which are part of tions arranged with or through foreign official agencies. Line 4. 5 Consists of investments in U.S. corporate stocks and in debt securi 3 Differs from the definition of “net exports of goods and services” in ties of private corporations and state and local governments. the national income and product (GNP) account. The GNP definition Note.—Data are from Bureau of Economic Analysis, Survey of Cur rent Business (U.S. Department 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 1977 Item 1974 1975 1976 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments................................... 97,908 107,130 114,807 9,699 9,589 10,410 9,599 9,808 10,072 9,970 2 GENERAL IMPORTS including merchandise for immediate con sumption plus entries into bonded warehouses................................. 100,252 96,115 120,677 10,555 10,623 11,020 11,269 11,674 12,459 12,593 3 Trade balance................................. -2,344 +11,014 -5,870 -857 -1,034 -610 -1,670 -1,866 -2,387 -2,623 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 export side, the largest adjustments are: (a) the addition of exports to Source.—U.S. Dept, of Commerce, Bureau of the Census, Summary Canada not covered in Census statistics, and (b) the exclusion of military of U.S. Export and Import Merchandise Trade (FT 900). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1976 1977 Type 1973 1974 1975 Nov. Dec. Jan. Feb. Mar. Apr. Mayp 1 Total............................................. 3 14,378 15,883 16,226 19,416 18,747 19,087 19,122 19,120 418,868 419,192 2 Gold stock, including Exchange Stabilization Fund1..................... 3 11,652 11,652 11,599 11,598 11,598 11,658 11,658 11,658 11,658 11,658 3 Special Drawing Rights2................. 3 2,166 2,374 2,335 2,365 2,395 2,375 2,383 2,389 42,384 42,470 4 Reserve position in International Monetary Fund........................... 3 552 1,852 2,212 4,307 4,434 4,682 4,819 4,812 44,720 44,969 5 Convertible foreign currencies......... 8 5 80 1,146 320 372 262 261 106 95 1 Gold held under earmark at F.R. Banks for foreign and international 4 Beginning July 1974, the IMF adopted a technique for valuing the accounts is not included in the gold stock of the United States; see Table SDR based on a weighted average of exchange rates for the currencies 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 May amounted to $19,369; SDR holdings, $2,565, and reserve 3 Change in par value of U.S. dollar on Oct. 18, 1973 increased total position in IMF, $5,051. 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
A56 International Statistics □ June 1977 3.13 SELECTED U.S. LIABILITIES TO FOREIGNERS Millions of dollars, end of period 1974 1976 1977 Holder, and type of liability 1973 1975 Dec. 9 Nov. Dec. Jan. Feb. Mar.p Apr.p 1 Total............................................. 92,490 119,240 119,164 126,552 r144,638 151,329 147,913 149,008 151,908 157,028 2 Foreign countries............................. 90,487 115,918 115,842 120,929 136,407 142,846 139,994 141,023 143,802 143,320 3 Official institutions1......................... 66,861 76,801 r76,823 r80,712 r87,793 '91,900 93,046 93,858 96,553 99,502 4 Short-term, reported by banks in the United States.2............... 43,923 53,057 r53,079 49,530 '49,323 '53,528 54,515 54,796 56,040 57,529 U.S. Treasury bonds and notes: 5 Marketable3............................ 5,701 5,059 5,059 6,671 11,367 11,788 12,017 12,725 13,548 14,470 6 Nonmarketable4...................... 15,564 16,339 16,339 19,976 21,131 20,648 20,622 20,495 21,106 20,976 7 Other readily marketable liabilities5......................... 1,673 2,346 2,346 4,535 r5,972 5,936 5,892 5,842 5,859 6,527 Commercial banks abroad: 8 Short-term reported by banks in the United States2,6.............. 17,694 30,314 '30,106 29,516 '35,332 '37,377 33,510 33,088 32,874 35,378 9 Other foreigners.............................. 5,932 8,803 8,913 '10,701 13,282 '13,569 13,438 14,077 14,375 14,440 10 Short-term, reported by banks in the United States2................ 5,502 8,305 8,415 r10,000 12,312 '12,592 12,441 13,056 12,993 12,886 11 Marketable U.S. Treasury bonds and notes3,7......................... 430 498 498 701 970 '977 997 1,021 1,382 1,554 12 Nonmonetary international and regional organization8............... 2,003 3,322 3,322 5,623 '8,231 8,483 7,919 7,985 8,106 7,708 13 Short-term, reported by banks in the United States2......... 1,955 3,171 3,171 5,292 '5,505 5,450 4,625 3,918 4,288 5,282 14 Marketable U.S. Treasury bonds and notes3.............. 48 151 151 331 2,726 3,033 3,294 4,067 3,819 2,426 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 Inter mercial 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 1977 Area 1973 1975 Dec.3 Nov. Dec. Jan. Feb. Mar.p Apr.p 1Total............................................. 66,861 76,801 '76,823 80,712 87,793 91,900 93,046 93,858 96,553 99,502 2 45,764 44,328 '44,328 45,701 44,075 45,855 45,927 46,108 47,927 48,770 3 Canada....................................... 3,853 3,662 3,662 3,132 2,406 3,406 3,197 2,844 2,684 2,752 4 Latin American republics............ 2,544 4,419 4,419 4,450 4,087 4,853 4,546 4,525 4,826 4,396 5 Asia........................................... 10,887 18,604 18,627 22,551 33,906 34,112 35,562 36,458 37,455 39,611 6 Africa........................................ 788 3,161 3,160 2,983 '1,975 1,893 1,757 1,771 1,679 1,934 7 Other countries 2......................... 3,025 2,627 2,627 1,895 1,344 1,781 2,057 2,152 1,982 2,039 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
Bank-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 1977 Holder, and type of liability 1973 1975 Dec.8 Nov.r Dec.r Jan.r Feb. Mar.p Apr.P 1 All foreigners, excluding the International Monetary Fund......................................... 69,074 94,847 94,771 94,338 102,473 108,947 105,091 104,858 106,195 111,075 2 Payable in dollars......................................... 68,477 94,081 94,004 93,780 101,692 108,223 104,359 104,043 105,334 110,266 Deposits: 3 Demand............................................... 11,310 14,068 14,051 13,564 15,811 16,803 15,314 16,098 11,226 15,411 4 Time1................................................... 6,882 10,106 9,932 10,250 10,452 11,297 11,395 11,205 15,097 11,261 5 U.S. Treasury bills and certificates2........... 31,886 35,662 35,662 37,414 38,643 40,744 41,275 42,669 43,553 44,660 6 Other short-term liabilities3...................... 18,399 34,246 34,359 32,552 36,786 39,380 36,374 34,071 35,457 38,933 7 Payable in foreign currencies......................... 597 766 766 558 781 724 732 815 861 809 8 Nonmonetary international and regional organizations4........................................... 1,955 3,171 3,171 5,293 5,506 5,450 4,625 3,918 4,288 5,282 9 Payable in dollars......................................... 1,955 3,171 3,171 5,284 5,502 5,445 4,621 3,912 4,285 5,279 Deposits: 10 Demand............................................... 101 139 139 139 287 290 166 216 203 125 11 Time1................................................... 83 111 111 148 196 205 230 237 236 196 12 U.S. Treasury bills and certificates............. 296 497 497 2,554 3,604 2,701 2,890 2,779 2,743 2,849 13 Other short-term liabilities5...................... 1,474 2,424 2,424 2,443 1,415 2,250 1,335 680 1,103 2,109 14 Payable in foreign currencies......................... 8 4 5 4 6 3 3 15Official institutions, banks, and other foreigners.. 67,119 91,676 91,600 89,046 96,967 103,497 100,466 100,940 101,907 105,793 16 Payable in dollars......................................... 66,522 90,910 90,834 88,497 96,191 102,778 99,738 100,131 101,049 104,988 Deposits: 17 Demand............................................... 11,209 13,928 13,912 13,426 15,524 16,513 15,148 15,882 14,895 15,286 18 Time1................................................... 6,799 9,995 9,796 10,102 10,256 11,092 11,166 10,968 10,968 11,066 19 U.S. Treasury bills and certificates2........... 31,590 35,165 35,165 34,860 35,039 38,042 38,386 39,889 40,810 41,811 20 Other short-term liabilities3...................... 16,925 31,822 31,961 30,109 35,371 37,130 35,039 33,391 34,354 36,825 21 Payable in foreign currencies......................... 597 766 766 549 776 719 728 809 858 805 22 Official institutions6......................................... 43,923 53,057 53,079 49,530 49,323 53,528 54,515 54,796 56,040 57,529 23 Payable in dollars......................................... 43,795 52,930 52,952 49,530 49,323 53,528 54,515 54,796 56,040 57,529 Deposits: 24 Demand............................................... 2,125 2,951 2,951 2,644 2,685 3,394 2,931 2,404 2,629 2,757 25 Time1................................................... 3,911 4,257 4,167 3,423 2,132 2,289 2,456 2,376 2,269 2,380 26 U.S. Treasury bills and certificates2........... 31,511 34,656 34,656 34,199 34,706 37,725 38,081 39,559 40,454 41,508 27 Other short-term liabilities5...................... 6,248 11,066 11,178 9,264 9,799 10,120 11,047 10,457 10,689 10,884 28 Pnvnh/p in fnrei&n rurrpnrie.v......................... 127 127 127 29 Banks and other foreigners................................ 23,196 38,619 38,520 39,515 47,644 49,969 45,951 46,144 45,867 48,264 30 Payable in dollars......................................... 22,727 37,980 37,881 38,966 46,868 49,250 45,223 45,335 45,009 47,459 31 Banks7..................................................... 17,224 29,676 29,467 28,966 34,556 36,658 32,788 32,279 32,016 34,573 Deposits: 32 Demand............................................ 6,941 8,248 8,231 7,534 8,897 9,104 8,475 9,387 8,400 8,711 33 Time1............................................... 529 1,942 1,885 1,856 1,663 2,279 2,074 1,779 1,739 1,625 34 U.S. Treasury bills and certificates.......... 11 232 232 335 124 119 122 102 108 104 35 Other short-term liabilities 3................... 9,743 19,254 19,119 19,241 23,872 25,156 22,111 21,011 21,770 24,132 36 Other foreigners....................................... 5,502 8,304 8,414 10,000 12,312 12,592 12,441 13,056 12,993 12,886 Deposits: 37 Demand............................................ 2,143 2,729 2,730 3,248 3,943 4,015 3,741 4,091 3,866 3,818 38 Time1............................................... 2,359 3,796 3,744 4,823 6,461 6,524 6,636 6,813 6,983 7,060 39 U.S. Treasury bills and certificates.......... 68 277 277 325 209 198 183 229 248 199 40 Other short-term liabilities5................... 933 1,502 1,664 1,604 1,700 1,854 1,876 1,924 1,896 1,809 41 Payable in foreign currencies......................... 469 639 639 549 776 719 728 809 858 805 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
A58 International Statistics □ June 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 1977 Area and country 1973 1975 Dec. 7 Nov.r Dec.r Jan. Feb. Mar.*3 Apr.p 1 Total............................................................... 69,074 94,847 94,771 94,338 102,473 108,947 105,091 104,858 106,195 111,075 2 Foreign countries............................................. 67,119 91,676 91,600 89,046 96,967 103,497 100,466 100,940 101,907 105,793 3 Europe........................................................... 40,742 48,667 48,813 43,988 42,478 46,923 43,765 43,584 44,342 45,038 4 Austria.................................................... 161 607 607 754 332 348 373 401 499 509 5 Belgium-Luxembourg................................ 1,483 2,506 2,506 2,898 2,085 2,268 2,376 2,411 2,566 2,607 6 659 369 369 332 416 363 419 419 569 809 7 Finland.................................................... 165 266 266 391 378 419 389 367 312 306 8 France..................................................... 3,483 4,287 4,287 7,733 4,642 4,875 4,701 4,590 4,827 4,748 9 13,227 9,420 9,429 4,357 5,418 5,965 5,304 5,495 4,676 4,490 10 389 248 248 284 378 403 421 346 302 350 11 Italy......................................................... 1,404 2,617 2,577 1,072 2,884 3,206 2,858 2,703 2,361 2,625 12 Netherlands.............................................. 2,886 3,234 3,234 3,411 2,694 3,007 2,832 2,817 3,181 2,924 13 965 1,040 1,040 996 740 785 566 793 746 906 14 Portugal................................................... 534 310 310 195 206 239 172 228 209 184 15 Spain....................................................... 305 382 382 426 478 565 492 546 560 501 16 Sweden.................................................... 1,885 1,138 1,138 2,286 1,420 1,693 1,613 1,593 1,717 2,047 17 Switzerland.............................................. 3,377 9,986 10,139 8,514 8,846 9,453 9,571 9,619 8,927 8,813 18 98 152 152 118 88 166 85 82 88 81 19 United Kingdom....................................... 6,148 7,559 7,584 6,886 8,399 9,999 8,996 8,711 10,334 10,695 20 Yugoslavia............................................... 86 183 183 126 147 188 113 121 96 111 21 Other Western Europe1............................. 3,352 4,073 4,073 2,970 2,639 2,672 2,263 2,136 2,144 2,133 22 U.S.S.R.................................................... 22 82 82 40 84 51 47 45 50 41 23 Other Eastern Europe............................... 110 206 206 200 203 255 172 162 178 159 24 Canada........................................................ 3,627 3,517 3,520 3,076 3,944 4,784 4,519 4,815 4,322 4,823 25 Latin America.............................................. 7,664 12,038 11,754 14,942 17,684 19,010 17,847 18,529 19,123 20,528 26 Argentina................................................. 924 886 886 1,147 1,293 1,538 1,648 1,820 1,889 1,845 27 Bahamas.................................................. 852 1,448 1,054 1,827 2,654 2,789 1,979 2,439 2,200 4,006 28 Brazil....................................................... 860 1,034 1,034 1,227 1,168 1,432 1,292 1,272 1,108 1,225 29 Chile........................................................ 158 276 276 317 315 335 325 302 403 329 30 Colombia................................................. 247 305 305 417 922 1,017 1,090 1,152 1,201 1,253 31 Cuba........................................................ 7 7 7 6 6 6 6 6 6 7 32 Mexico.................................................... 1,296 1,770 1,770 2,066 2,860 2,848 2,710 2,782 2,745 2,699 33 Panama.................................................... 282 488 510 1,099 1,188 1,140 909 1,002 1,001 1,008 34 Peru......................................................... 135 272 272 244 243 257 244 228 246 255 35 Uruguay................................................... 120 147 165 172 238 245 250 239 241 263 36 Venezuela................................................. 1,468 3,413 3,413 3,289 3,009 3,060 2,986 2,909 2,927 2,440 37 Other Latin American republics................. 884 1,316 1,316 1,494 1,740 1,740 2,033 2,225 2,428 2,297 38 Netherlands Antilles2................................ 71 158 158 129 157 140 151 157 162 173 39 Other Latin America................................ 359 519 589 1,507 1,890 2,139 2,223 1,995 2,565 2,729 40 Asia............................................................. 10,839 21,073 21,130 21,539 28,982 28,461 29,789 29,258 29,604 30,471 41 China, People’s Republic of (Mainland)__ 38 50 50 123 59 47 47 47 52 67 42 China, Republic of (Taiwan)..................... 757 818 818 1,025 1,092 985 1,058 1,158 1,056 1,123 43 Hong Kong.............................................. 372 530 530 623 859 892 941 1,039 1,018 993 44 India........................................................ 85 261 261 126 910 648 510 559 538 648 45 Indonesia................................................. 133 1,221 1,221 369 314 340 695 546 480 888 46 Israel........................................................ 327 386 389 386 325 385 430 547 509 436 47 Japan....................................................... 6,967 10,897 10,931 10,218 14,736 14,380 14,481 13,358 13,271 13,071 48 Korea...................................................... 195 384 384 390 324 437 448 483 382 430 49 Philippines................................................ 515 747 747 698 606 627 602 554 652 624 50 Thailand................................................... 247 333 333 252 244 275 301 313 312 308 51 Middle East oil-exporting countries3.......... 4,633 4,623 6,461 8,124 8,073 9,029 9,276 9,987 10,398 1,20252 81O3ther4...8.4..4...........8..6..7........1.,.3..8..8........1..,.3..7.3..... 1,245 1,377 1,346 1,485 53 Africa.......................................................... 1,056 3,551 3,551 3,373 2,281 2,300 2,207 2,406 2,285 2,572 54 Egypt....................................................... 35 103 103 343 111 333 209 244 250 242 55 Morocco.................................................. 11 38 38 68 72 88 97 105 94 91 56 South Africa............................................ 114 130 130 169 132 143 211 155 136 176 57 Zaire........................................................ 87 84 84 63 64 35 48 42 39 28 58 Oil-exporting countries5............................ 2,814 2,814 2,239 1,322 1,116 1,033 1,132 965 1,149 59 Other4..................................................... 808 383 383 491 520 585 609 728 801 886 60 Other countries............................................. 3,190 2,831 2,831 2,128 1,598 2,019 2,339 2,348 2,231 2,361 61 Australia.................................................. 3,131 2,742 2,742 2,014 1,486 1,911 2,224 2,231 2,101 2,223 62 All other.................................................. 59 89 89 114 112 108 116 118 130 138 63 Nonmonetary international and regional organizations................................................ 1,955 3,171 3,171 5,293 5,506 5,450 4,625 3,918 4,288 5,282 64 International................................................ 1,627 2,900 2,900 5,064 5,109 5,091 4,275 3,599 3,965 5,001 65 Latin American regional............................... 272 202 202 187 160 136 160 132 136 99 66 Other regional6............................................ 57 69 69 42 237 223 190 187 186 181 For notes see bottom of p. A59. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-reported Data A 59 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 1975 1976 1974 1976 Area and country Area and country Dec. Apr. Dec. Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia: 1 Cyprus..................... 7 17 38 69 25 Afghanistan............... 18 19 41 54 57 2 Iceland.................... 21 20 43 40 26 Bangladesh................ 21 50 54 41 3 Ireland, Republic of.. 29 29 39 27 Burma....................... 65 49 31 34 13 28 Cambodia.................. 4 4 4 3 4 Other Eastern Europe: 29 Jordan....................... 22 30 39 20 37 4 Bulgaria................................ 36 13 19 13 34 30 Laos......................... 3 5 2 2 1 5 Czechoslovakia...................... 34 11 32 10 21 31 Lebanon.................... 126 180 117 132 140 6 German Democratic Republic. 36 18 17 3 32 Malaysia.................... 63 92 77 105 396 7 Hungary................................ 14 11 13 10 33 Nepal........................ 25 22 28 34 33 8 Poland.................................. 55 42 66 65 34 Pakistan.................... 91 118 74 89 189 9 Rumania............................... 25 14 44 28 35 Singapore.................. 245 215 256 c344 280 36 Sri Lanka (Ceylon).... 14 13 13 9 23 Other Latin American republics: 37 Vietnam.................... 126 70 62 33 66 10 Bolivia............................... 96 93 110 104 133 11 Costa Rica......................... 118 120 124 69 141 Other Africa: 12 Dominican Republic........... 128 214 169 149 275 38 Ethiopia (incl. Eritrea), 95 76 60 70 41 13 Ecuador............................. 122 157 120 150 319 39 Ghana....................... 18 13 23 45 27 14 El Salvador........................ 129 144 171 128 178 40 Ivory Coast............... 7 11 62 76 10 15 Guatemala......................... 219 255 260 177 397 41 Kenya....................... 31 32 19 37 46 16 Haiti.................................. 35 34 38 33 47 42 Liberia...................... 39 33 53 63 77 17 Honduras........................... 88 92 99 69 137 43 Southern Rhodesia.... 2 3 1 1 1 18 Jamaica............................. 69 62 41 49 35 44 Sudan........................ 4 14 12 17 22 19 Nicaragua.......................... 127 125 133 89 119 45 Tanzania................... 11 21 30 18 20 Paraguay............................ 46 38 43 43 49 46 Tunisia...................... 19 23 29 33 20 21 Surinam2........................... 12 47 Uganda..................... 13 38 22 50 43 22 Trinidad and Tobago.......... 107 31 131 44 i 67 48 Zambia...................... 22 18 78 14 Other Latin America: All Other: 23 Bermuda............... 116 100 170 197 177 49 New Zealand............. 47 36 42 29 45 24 British West Indies. 449 627 1,311 2,284 1,874 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 1977 Holder, and area or country 1973 1974 1975 Oct.r Nov.r Dec. r Jan.r Feb. Mar.p Apr.p 1 1,462 1,285 1,812 2,328 2,324 2,408 2,352 2,297 2,315 2,460 2 Nonmonetary international and regional organizations................................................ 761 822 415 338 313 264 263 248 262 250 3 Foreign countries.............................................. 700 464 1,397 1,991 2,011 2,144 2,090 2,049 2,053 2,211 4 Official institutions, including central banks. .. 310 124 931 1,312 1,311 1,352 1,262 1,192 1,163 1,313 5 Banks, excluding central banks..................... 291 261 364 501 526 588 604 627 648 631 6 Other foreigners........................................... 100 79 100 178 173 204 224 230 242 267 Area or country: 7 Europe........................................................ 470 226 330 499 517 537 555 580 591 583 8 159 146 214 310 309 313 313 296 354 304 9 United Kingdom....................................... 66 59 66 101 127 134 144 122 123 131 10 Canada........................................................ 8 19 23 28 26 29 31 29 37 35 11 Latin America.............................................. 132 115 140 151 152 230 244 267 263 264 12 Middle East oil-exporting countries t............. 94 894 1,286 1,239 1,251 1,186 1,104 1,091 1,259 13 Other Asia2.............................................. 82 7 8 25 75 96 67 67 67 68 14 African nil-exporting countries3.................... * * * * * * * * * 15 Other Africa4............................................... 1 1 1 1 2 2 2 16 All other countries....................................... 7 * * 1 1 1 4 1 1 1 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
A60 International Statistics n June 1977 3.19 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States By Country Millions of dollars, end of period 1976 1977 Area and country 1973 1974 1975 Oct.r Nov.r Dec.r Jan.r Feb. Mar.p Apr.P 1 20,723 39,056 50,231 60,986 63,313 69,126 63,719 63,447 65,196 65,814 2 Foreign countries............................................. 20,723 39,055 50,229 60,981 63,307 69,121 63,712 63,442 65,189 65,809 3 Europe......................................................... 3,970 6,255 8,987 10,435 10,790 12,162 10,486 10,764 10,887 12,026 4 Austria.................................................... 11 21 15 42 54 44 41 42 58 63 5 Belgium-Luxembourg................................ 147 384 352 504 501 662 554 611 570 470 6 Denmark................................................. 48 46 49 64 129 85 72 64 67 83 7 Finland.................................................... 108 122 128 137 136 141 137 131 141 126 8 France..................................................... 621 673 1,471 1,096 1,098 1,448 1,246 1,372 1,343 1,510 9 Germany.................................................. 311 589 436 585 577 563 511 667 575 590 10 Greece..................................................... 35 64 49 88 76 79 57 85 54 70 11 Italy......................................................... 316 345 370 733 877 929 875 802 870 946 12 Netherlands............................................. 133 348 300 399 240 304 246 510 252 380 13 Norway.................................................... 72 119 71 79 85 98 124 127 133 142 14 Portugal................................................... 23 20 16 46 53 65 80 90 98 90 15 Spain....................................................... 222 196 249 264 304 429 362 375 291 363 16 Sweden.................................................... 153 180 167 101 93 111 112 85 75 116 17 Switzerland............................................... 176 335 237 499 511 482 539 530 496 496 18 Turkey..................................................... 10 15 86 125 140 173 199 207 274 291 19 United Kingdom....................................... 1,459 2,580 4,718 5,376 5,591 6,158 4,960 4,671 5,218 5,939 20 Yugoslavia............................................... 10 22 38 37 38 45 60 64 37 31 21 Other Western Europe.............................. 25 22 27 49 53 52 53 60 56 51 22 U.S.S.R.................................................... 46 46 103 83 103 99 82 95 104 108 23 Other Eastern Europe............................... 44 131 108 128 132 130 178 175 177 163 24 Canada....................................................... 1,955 2,776 2,817 3,129 3,136 3,100 2,944 3,512 3,737 3,685 25 Latin America.............................................. 5,900 12,377 20,532 29,275 31,010 34,060 31,459 31,487 32,055 31, 758 26 Argentina................................................. 499 720 1,203 902 858 962 937 867 914 873 27 Bahamas.................................................. 883 3,405 7,570 12,587 14,021 15,340 13,872 14,102 15,439 14,150 28 Brazil....................................................... 900 1,418 2,221 3,125 3,254 3,378 3,456 3,145 2,951 3,189 29 Chile....................................................... 151 290 360 350 358 396 370 379 357 419 30 Colombia................................................. 397 713 689 517 523 575 593 598 544 565 31 Cuba....................................................... 12 14 13 13 14 13 13 13 13 13 32 Mexico.................................................... 1,373 1,972 2,802 3,211 3,290 3,419 3,366 3,332 3,294 3,301 33 Panama.................................................... 274 505 1,052 1,119 781 1,021 760 869 849 753 34 Peru......................................................... 178 518 583 638 630 690 737 739 733 756 35 Uruguay.................................................. 55 63 51 28 35 38 41 39 39 35 36 Venezuela................................................. 518 704 1,086 1,338 1,512 1,552 1,296 1,260 1,241 1,180 37 Other Latin American republics................. 493 852 967 1,037 1,069 1,140 1,127 1,120 1,132 1,076 38 Netherlands Antilles1................................ 13 62 49 41 43 40 45 41 41 54 39 Other Latin America................................ 154 1,142 1,885 4,369 4,623 5,495 4,848 4,985 4,509 5,394 40 Asia............................................................. 8,224 16,226 16,057 16,099 • 16,365 17,765 16,686 15,471 16,118 15,759 41 China, People’s Republic of (Mainland). . . 31 4 22 5 \ 3 3 4 30 5 78 42 China, Republic of (Taiwan)..................... 140 500 736 991 1,099 987 1,028 1,089 1,124 1,099 43 Hong Kong.............................................. 147 223 258 208 267 361 229 265 317 337 44 India....................................................... 16 14 21 64 j 48 41 28 23 32 24 45 Indonesia................................................. 88 157 102 117 | 120 76 54 55 53 41 46 Israel....................................................... 155 255 491 320 1 330 554 344 337 328 287 47 Japan....................................................... 6,398 12,518 10,776 10,534 ! 10,428 10,992 10,579 9,472 9,486 9,397 48 Korea...................................................... 403 955 1,561 1,555 1,577 1,722 1,710 1,574 1,736 1,807 49 Philippines............................................... 181 372 384 478 495 559 592 479 463 490 50 Thailand.................................................. 273 458 499 415 414 422 421 446 491 468 51 Middle East oil-exporting countries2.......... 330 524 765 1,082 1,312 981 1 050 1,389 1,095 52 Other3..................................................... 392 441 684 647 503 ’ 735 715 ’651 ’693 ’636 53 Africa......................................................... 388 855 1,228 1,382 1,394 1,486 1,519 1,478 1,613 1,570 54 Egypt....................................................... 35 111 101 106 109 132 151 126 149 146 55 Morocco.................................................. 5 18 9 8 14 13 19 13 26 35 56 South Africa............................................. 129 329 545 772 748 763 798 797 802 783 57 Zaire..................................................... 61 98 34 14 25 29 16 11 10 8 58 Oil-exporting countries4............................ 115 231 215 213 256 238 249 343 289 59 Other3..................................................... 158 185 308 266 284 293 298 282 283 309 60 Other countries............................................. 286 565 609 661 612 549 618 729 779 1,011 61 Australia.................................................. 243 466 535 558 502 450 512 604 663 892 62 All other.................................................. 43 99 73 103 110 99 105 125 116 119 63 Nonmonetary international and regional organizations................................................ 1 1 5 6 5 7 5 6 5 * 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
Bank-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 1977 Type 1973 1974 1975 Oct.r Nov.r Dec.r Jan.r Feb. Mar.p Apr.p 1 20,723 39,056 50,231 60,986 63,313 69,126 63,719 63,447 65,196 65,814 2 Payable in dollars............................................ 20,061 37,859 48,683 59,271 61,508 67,481 61,987 61,488 63,298 64,129 3 Loans, total................................................. 7,660 11,287 13,194 16,191 16,141 18,300 16,072 16,234 15,783 16,473 4 Official institutions, including central banks. 284 381 613 1,055 1,262 1,451 1,251 935 784 741 5 Banks, excluding central banks.................. 4,538 7,332 7,665 10,018 9,628 11,076 9,334 9,764 9,739 10,616 6 All other, including nonmonetary interna tional and regional organizations............ 2,838 3,574 4,916 5,118 5,247 5,773 5,487 5,535 5,259 5,116 7 Collections oustanding................................. 4,307 5,637 5,467 5,586 5,628 5,846 5,833 5,868 6,192 6,306 8 Acceptances made for accounts of foreigners... 4,160 11,237 11,147 11,461 11,422 12,367 12,018 12,009 12,793 12,979 9 Other claims1.............................................. 3,935 9,689 19,054 26,033 28,316 30,968 28,064 27,378 28,529 28,370 10 Payable in foreign currencies............................. 662 1,196 1,368 1,715 1,805 1,645 1,732 1,959 1,897 1,686 11 Deposits with foreigners............................... 428 669 656 1,052 1,084 1,063 1,126 1,091 1,100 863 12 Foreign government securities, commercial and finance paper..................................... 119 289 340 113 89 89 145 272 323 332 13 Other claims................................................ 115 238 372 550 632 493 460 596 474 490 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, end of period 1976 1977 Type, and area or country 1973 1974 1975 Oct.r Nov.r Dec.r Jan.r Feb. Mar.P Apr.? 1 5,996 7,179 9,536 11,320 11,596 11,660 11,684 11,829 12,201 12,481 By type: 2 Payable in dollars......................................... 5,924 7,099 9,419 11,181 11,449 11,512 11,534 11,618 12,012 12,280 3 Loans, total.............................................. 5,446 6,490 8,316 9,672 9,846 9,935 9,953 10,131 10,426 10,557 4 Official institutions, including central banks 1,156 1,324 1,351 1,312 1,367 1,422 1,404 1,535 1,625 1,648 5 Banks, excluding central banks............... 591 929 1,567 2,115 2,170 2,212 2,178 2,218 2,192 2,218 6 All other, including nonmonetary interna tional and regional organizations........ 3,698 4,237 5,399 6,245 6,310 6,301 6,371 6,377 6,609 6,691 7 Other long-term claims................................ 478 609 1,103 1,509 1,603 1,577 1,581 1,487 1,585 1,723 8 Payable in foreign currencies......................... 72 80 116 139 147 148 150 211 190 201 By area or country: 9 Europe........................................................ 1,271 1,908 2,704 3,180 3,283 3,232 3,309 3,362 3,616 3,689 10 Canada........................................................ 490 501 555 570 590 586 518 536 566 558 11 Latin America............................................. 2,116 2,614 3,468 4,565 4,694 4,806 4,878 4,906 4,908 4,990 12 Asia............................................................. 1,582 1,619 1,795 1,896 1,881 1,882 1,835 1,841 1,896 1,964 13 Japan....................................................... 251 258 296 376 364 387 383 363 417 416 14 Middle East oil-exporting countries1.......... 384 220 171 141 146 117 123 152 181 15 Other Asia2............................................. 1,331 977 1,279 1,348 1,376 1,349 1,334 1,356 1,327 1,367 16 Africa.......................................................... 355 366 747 839 888 883 856 876 890 953 17 Oil-exporting countries 3............................ 62 151 259 269 264 201 206 211 228 18 Other4..................................................... 355 305 596 580 619 619 655 670 678 725 19 All other countries5..................................... 181 171 267 271 261 269 288 308 327 327 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
A62 International Statistics □ June 1977 3.22 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1976 1977 Asset account 1973 1974 1975 Sept.r Oct.r Nov.r Dec.r Jan.r Feb. Mar.P All foreign countries 1 Total, all currencies........................ 121,866 151,905 176,493 199,893 206,454 207,552 219,235 212,180 215,642 222,886 2 Claims on United States............... 5,091 6,900 6,743 6,654 9,968 7,639 7,999 6,563 7,061 7,252 3 Parent bank............................. 1,886 4,464 3,665 3,273 6,863 4,359 4,435 2,979 3,738 3,638 4 Other...................................... 3,205 2,435 3,078 3,381 3,105 3,281 3,564 3,583 3,323 3,614 5 Claims on foreigners.................... 111,974 138,712 163,391 186,217 189,358 192,706 204,194 198,008 201,148 208,217 6 Other branches of parent bank 19,177 27,559 34,508 41,174 41,812 42,729 45,877 46,083 47,760 48,644 7 Other banks............................. 56,368 60,283 69,206 74,820 76,191 77,260 83,606 77,225 77,702 81,457 8 Official institutions................... 2,693 4,077 5,792 9,208 9,205 9,550 10,608 10,835 11,188 11,766 9 Nonbank foreigners................. 33,736 46,793 53,886 61,015 62,149 63,168 64,104 63,866 64,498 66,350 10 Other assets................................ 4,802 6,294 6,359 7,022 7,128 7,207 7,042 7,609 7,434 7,417 79,445 105,969 132,901 150,484 156,101 156,544 167,646 162,941 165,317 172,133 12 Claims on United States............... 4,599 6,603 6,408 6,295 9,623 7,297 7,705 6,283 6,773 6,853 13 Parent bank............................. 1,848 4,428 3,628 3,210 6,818 4,296 4,375 2,940 3,692 3,591 14 Other...................................... 2,751 2,175 2,780 3,085 2,805 3,001 3,330 3,343 3,081 3,262 15 Claims on foreigners.................... 73,018 96,209 123,496 140,943 143,124 145,933 156,738 152,746 154,922 161,755 16 Other branches of parent bank.. 12,799 19,688 28,478 33,358 34,051 34,382 37,832 38,360 39,816 40,921 17 Other banks............................. 39,527 45,067 55,319 58,901 59,355 60,327 66,287 60,749 60,793 64,475 18 Official institutions.................. 1,777 3,289 4,864 7,906 7,885 8,298 9,017 9,468 9,853 10,469 19 Nonbank foreigners................. 18,915 28,164 34,835 40,779 41,833 42,926 43,602 44,170 44,460 45,890 20 Other assets................................ 1,828 3,157 2,997 3,246 3,353 3,314 3,203 3,911 3,622 3,525 United Kingdom 21 Total, all currencies......................... 61,732 69,804 74,883 73,589 76,854 77,249 81,466 76,482 78,708 81,268 22 Claims on United States............... 1,789 3,248 2,392 2,036 3,256 3,426 3,354 2,262 1,772 2,311 23 Parent bank............................. 738 2,412 1,449 1,081 2,413 2,538 2,376 1,357 991 1,282 24 Other...................................... 1,051 116 943 955 843 888 978 905 781 1,029 25 Claims of foreigners..................... 57,761 64,111 70,331 69,217 71,162 71,477 75,859 71,995 74,713 76,865 26 Other branches of parent bank.. 8,773 12,724 17,557 17,745 18,358 17,949 19,753 19,483 21,450 21,115 27 Other banks............................. 34,442 32,701 35,904 34,405 35,336 35,846 38,089 34,827 35,517 37,074 28 Official institutions.................. 735 788 881 1,138 1,211 1,168 1,274 1,377 1,615 1,606 29 Nonbank foreigners................. 13,811 17,898 15,990 15,929 16,257 16,514 16,743 16,309 16,130 17,070 30 Other assets................................ 2,183 2,445 2,159 2,335 2,436 2,345 2,253 2,225 2,224 2,092 31 Total payable in U.S. dollars........... 40,323 49,211 57,361 54,547 57,161 57,699 61,587 57,758 60,038 62,353 32 1,642 3,146 2,273 1,902 3,124 3,313 3,275 2,185 1,684 2,173 33 Parent bank............................. 730 2,468 1,445 1,064 2,406 2,523 2,374 1,352 988 1,277 34 Other...................................... 912 678 828 838 719 789 902 833 696 896 35 Claims on foreigners.................... 37,817 44,694 54,121 51,782 53,112 53,541 57,488 54,735 57,492 59,342 36 Other branches of parent bank.. 6,509 10,265 15,645 15,195 15,829 15,405 17,249 17,183 19,114 18,712 37 Other banks............................. 23,389 23,716 28,224 25,866 26,421 27,008 28,983 26,184 26,767 28,352 38 Official institutions................... 510 610 648 862 912 817 846 1,110 1,340 1,310 39 Nonbank foreigners................. 7,409 10,102 9,604 9,859 9,950 10,311 10,410 10,258 10,271 10,968 40 Other assets................................ 865 1,372 967 863 925 845 824 838 862 839 Bahamas and Caymans 41 Total, all currencies........................ 23,771 31,733 45,203 60,804 63,578 61,886 66,774 66,479 66,134 69,524 42 Claims on United States............... 2,210 2,464 3,229 3,356 5,492 2,970 3,506 3,192 3,722 3,395 43 Parent bank............................. 317 1,081 1,477 1,283 3,519 845 1,141 811 1,418 1,073 44 Other...................................... 1,893 1,383 1,752 2,072 1,973 2,126 2,365 2,381 2,303 2,321 45 Claims on foreigners..................... 21,041 28,453 41,040 56,279 56,847 57,683 62,050 61,539 60,999 64,796 46 Other branches of parent bank.. 1,928 3,478 5,411 7,250 7,296 7,389 8,144 8,463 7,815 9,060 47 Other banks............................. 9,895 11,354 16,298 22,471 22,175 22,481 25,354 23,836 23,435 25,351 48 Official institutions................... 1,151 2,022 3,576 6,059 6,040 6,485 7,101 7,004 7,225 7,495 49 Nonbank foreigners................. 8,068 11,599 15,756 20,498 21,336 21,327 21,451 22,236 22,523 22,890 50 Other assets................................ 520 815 933 1,169 1,239 1,232 1,217 1,748 1,413 1,333 51 Total payable in U.S. dollars........... 21,937 28,726 41,887 56,650 59,289 57,799 62,705 62,266 61,605 64,944 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Overseas Branches A63 3.22 Continued 1976 1977 Liability account 1973 1974 1975 Sept.r Oct.r Nov.r Dec.r Jan.r Feb. Mar.? All foreign countries 52 Total, all currencies..................... 121,866 151,905 176,493 199,893 206,454 207,552 219,235 212,180 215,642 222,886 53 To United States...................... 5,610 11,982 20,221 29,574 28,984 30,289 32,836 30,406 30,514 34,304 54 Parent bank......................... 1,642 5,809 12,165 18,957 17,869 19,058 19,893 18,723 19,260 21.013 55 Other................................... 3,968 6,173 8,057 10,617 11,115 11,231 12,942 11,683 11,253 13,291 56 To foreigners........................... 111,615 132,990 149,815 163,772 170,625 170,509 179,666 174,896 178,270 181,721 57 Other branches of parent bank 18,213 26,941 34,111 40,119 41,044 41,692 44,302 44,283 46,322 47,558 58 Other banks......................... 65,389 65,675 72,259 75,370 79,287 78,216 83,671 79,278 78,044 79,956 59 Official institutions............... 10,330 20,185 22,773 23,731 25,019 23,967 25,828 25,771 26,631 26,194 60 Nonbank foreigners.............. 17,683 20,189 20,672 24,552 25,275 26,634 25,864 25,564 27,273 28.013 61 Other liabilities........................ 4,641 6,933 6,456 6,547 6,844 6,754 6,733 6,879 6,858 6,861 62 Total payable in U.S. dollars........ 80,374 107,890 135,907 155,199 160,510 161,003 173,007 167,499 170,392 177,029 63 To United States...................... 5,027 11,437 19,503 28,685 28,210 29,399 32,049 29,470 29,601 33,362 64 Parent bank......................... 1,477 5,641 11,939 18,624 17,633 18,821 19,680 18,475 19,015 20,761 65 Other................................... 3,550 5,795 7,564 10,060 10,576 10,578 12,368 10,996 10,585 12,601 66 To foreigners........................... 73,189 92,503 112,879 123,131 128,901 128,181 137,443 134,268 137,149 140,088 67 Other branches of parent bank 12,554 19,330 28,217 32,921 33,850 33,993 37,033 37,703 36,369 40,591 68 Other banks......................... 43,641 43,656 51,583 53,821 56,677 55,869 60,521 56,696 55,965 57,779 69 Official institutions............... 7,491 17,444 19,982 20,787 21,910 20,924 22,877 23,038 23,598 23,406 70 Nonbank foreigners.............. 9,502 12,072 13,097 15,602 16,463 17,394 17,011 16,831 18,217 18,312 71 Other liabilities........................ 2,158 3,951 3,526 3,383 3,400 3,423 3,516 3,761 3,642 3,579 United Kingdom 72 Total, all currencies....................... 61,732 69,804 74,883 73,589 76,854 77,249 81,466 76,482 78,708 81,268 73 To United States........................ 2,431 3,978 5,646 5,379 5,310 5,520 5,997 5,101 4,871 6,365 74 Parent bank........................... 136 510 2,122 1,442 1,468 1,459 1,198 1,211 1,191 1,537 75 Other..................................... 2,295 3,468 3,523 3,938 3,842 4,061 4,798 3,889 3,681 4,828 76 To foreigners............................. 57,311 63,409 67,240 66,026 69,151 69,368 73,228 69,202 71,523 72,665 77 Other branches of parent bank. 3,944 4,762 6,494 6,788 6,826 6,783 7,092 7,663 7,981 8,252 78 Other banks........................... 34,979 32,040 32,964 31,015 32,488 33,690 36,259 32,336 32,097 33,830 79 Official institutions................. 8,140 15,258 16,553 16,389 17,567 16,181 17,273 16,975 18,204 17,711 80 Nonbank foreigners............... 10,248 11,349 11,229 11,834 12,270 12,713 12,605 12,228 13,242 12,872 81 Other liabilities......................... 1,990 2,418 1,997 2,184 2,394 2,360 2,241 2,179 2,313 2,238 39,689 49,666 57,820 55,625 58,031 58,757 63,174 59,009 61,331 63,346 83 To United States........................ 2,173 3,744 5,415 5,183 5,152 5,330 5,849 4,876 4,704 6,189 84 Parent bank........................... 113 484 2,083 1,404 1,448 1,447 1,182 1,195 1,166 1,506 85 Other..................................... 2,060 3,261 3,332 3,779 3,704 3,883 4,666 3,681 3,538 4,683 86 To foreigners............................. 36,646 44,594 51,447 49,579 52,017 52,503 56,372 53,230 55,675 56,283 87 Other branches of parent bank. 2,519 3,256 5,442 5,790 5,742 5,520 5,874 6,573 6,906 7,188 88 Other banks........................... 22,051 20,526 23,330 20,526 21,493 23,040 25,527 22,137 22,211 23,841 89 Official institutions................. 5,923 13,225 14,498 14,418 15,550 14,283 15,423 15,184 16,345 15,817 90 Nonbank foreigners............... 6,152 7,587 8,176 8,846 9,233 9,660 9,547 9,336 10,213 9,437 91 Other liabilities.......................... 870 1,328 959 862 862 924 953 903 953 874 Bahamas and Caymans 92 Total, all currencies....................... 23,771 31,733 45,203 60,804 63,578 61,886 66,77A 66,479 66,134 69,524 93 To United States........................ 1,573 4,815 11,147 20,814 20,167 20,676 22,723 21,689 21,672 24,164 94 Parent bank........................... 307 2,636 7,628 15,243 14,000 14,797 16,163 15,191 15,241 17,108 95 Other..................................... 1,266 2,180 3,520 5,751 6,167 5,879 6,560 6,499 6,431 7,056 96 To foreigners............................. 21,747 26,140 32,949 38,864 42,358 40,111 42,897 43,376 43,166 43,974 97 Other branches of parent bank. 5,508 7,702 10,569 11,854 13,381 12,931 13,801 13,551 14,406 14,931 98 Other banks........................... 14,071 14,050 16,825 20,937 22,615 19,923 21,758 22,256 21,006 20,571 99 Official institutions................. 492 2,377 3,308 2,712 2,784 3,198 3,573 3,607 3,314 3,302 100 Nonbank foreigners............... 1,676 2,011 2,248 3,361 3,577 4,059 3,765 3,963 4,439 5,169 101 Other liabilities.......................... 451 778 1,106 1,125 1,053 1,099 1,154 1,413 1,295 1,385 102 Total payable in U.S. dollars.......... 22,328 28,840 42,197 57,282 60,042 58,372 63,417 62,851 62,416 65,753 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A64 International Statistics a June 1977 3.23 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1977 1976 1977 Country or area 1975 1976 Jan.— Apr.P Oct. Nov. Dec. Jan. Feb. Mar.p Apr.P Holdings, end of period 4 1 Estimated total... 7,703 15,798 14,487 15,063 15,798 16,307 17,813 18,748 18,450 2 Foreign countries. 7,372 12,765 11,954 12,337 12,765 13,014 13,746 14,929 16,024 3 Europe.......................... 1,085 2,330 2,064 2,293 2,330 2,300 2,504 2,870 3,505 4 Belgium-Luxembourg.. 13 14 13 14 14 14 14 14 14 5 Germany.................... 215 764 535 746 764 764 789 894 1,112 6 Netherlands............... 16 288 283 288 288 287 367 388 388 7 Sweden...................... 276 191 242 192 191 191 188 188 188 8 Switzerland................ 55 261 267 291 261 271 324 317 397 9 United Kingdom........ 363 485 403 433 485 476 512 713 1,069 10 Other Western Europe. 143 323 317 325 323 293 306 354 332 11 Eastern Europe.......... 4 4 4 4 4 4 4 4 4 12 Canada. 395 256 390 250 256 256 261 270 268 13 Latin America........................... 200 312 160 302 312 314 295 405 448 14 Venezuela.............................. 4 149 4 149 149 149 149 258 193 15 Other Latin America republics. 29 35 32 28 35 21 21 26 21 16 Netherlands Antilles 1............ 161 118 113 115 118 125 121 120 119 17 Asia...... 5,370 9,323 8,808 8,950 9,323 9,637 10,330 11,068 11,476 18 Japan. 3,271 2,687 3,093 2,587 2,687 2,682 2,806 3,123 3,174 19 Africa............................................. 321 543 531 543 543 506 356 356 356 20 All other...................................... * * * * * * * 11 23 21 Nonmonetary international and regional organizations............................... 331 3,033 2,533 2,726 3,033 3,294 4,068 3,819 2,426 22 International................. 322 2,905 2,504 2,655 2,905 3,180 3,948 3,700 2,318 23 Latin American regional. 9 128 28 71 128 114 119 118 108 Transactions, net purchases, or sales (—), during period 24 Total.................. 1,994 8,095 2,653 1,019 577 735 510 1,505 936 -298 25 Foreign countries. 1,814 5,393 3,259 283 383 428 249 731 1,184 1,094 26 Official institutions. 1,612 5,116 2,682 227 340 421 229 709 823 922 27 Other foreign........ 202 276 578 56 43 6 21 23 361 173 28 Nonmonetary international and regional organizations................................ 180 2,702 -110 736 193 307 261 773 248 -1,392 Memo: Oil-exporting countries 29 Middle East 2...................... 1,797 r3,887 1,505 98 630 140 254 505 408 338 30 Africa 3................................ 170 221 -237 11 -37 -150 -51 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.S. 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, end of period 1976 1977 Assets 1973 1974 1975 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Deposits......................................................... 251 418 353 305 352 383 361 349 305 436 Assets held in custody: 2 U.S. Treasury securities1.............................. 52,070 55,600 60,019 63,962 66,532 66,992 68,653 71,435 73,261 73,964 3 Earmarked gold2......................................... 17,068 16,838 16,745 16,457 16,414 16,343 16,304 16,271 *•16,282 16,221 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 1977 1976 1977 Transactions, and area or country 1975 1976 Jan.- Oct. j Nov. Dec. Jan. Feb. Mar.p Apr.p Apr.p U.S. corporate securities Stocks: 1 Foreign purchases........................................ 15,347 18,227 4,823 1,226 977 1,562 1,425 1,162 1,101 1,135 2 Foreign sales............................................... 10,678 15,474 4,066 1,321 1,025 1,287 1,137 1,036 980 913 3 Net purchases, or sales (—)........................... 4,669 2,752 757 -95 -49 274 288 126 121 222 4 Foreign countries.......................................... 4,651 2,740 752 -98 -50 281 290 124 116 222 5 Europe..................................................... 2,491 336 354 -251 -118 111 130 47 72 105 6 France.................................................. 262 256 15 -12 -25 37 27 -10 4 -6 7 Germany.............................................. 251 68 28 -16 -13 24 1 -7 -4 38 8 Netherlands.......................................... 359 -199 2 -37 -29 -35 24 -5 -10 -7 9 Switzerland........................................... 899 -100 130 -95 -44 -7 39 23 30 38 10 United Kingdom................................... 594 340 177 -72 -5 84 39 36 55 47 11 Canada.................................................... 361 325 42 18 1 60 8 30 9 -5 12 Latin America.......................................... -7 155 53 -17 25 1 4 14 14 21 13 Middle East1............................................ 1,640 1,803 264 126 64 115 100 50 17 97 14 Other Asia2............................................. 142 117 37 28 -23 9 46 -17 3 5 15 Africa...................................................... 10 7 * -3 1 2 * * * * 16 15 -4 3 1 * -17 2 1 1 -1 17 Nonmonetary international and regional organizations......................................... 18 12 5 4 2 -6 -2 1 5 1 Bonds 3 18 Foreign purchases........................................ 5,408 5,529 2,122 625 355 533 400 534 348 840 19 Foreign sales................................................ 4,642 4,322 987 386 364 524 322 214 208 243 20 Net purchases, or sales (—)........................... 766 1,207 1,136 239 -9 9 78 320 140 598 21 Foreign countries.......................................... 1,795 1,248 1,067 203 110 6 73 329 112 553 22 Europe..................................................... 113 92 466 -10 24 53 8 281 75 102 23 France.................................................. 82 49 -15 -1 5 7 -5 -3 -2 -5 24 Germany.............................................. -6 -50 -4 5 4 1 -4 4 * -4 25 Netherlands.......................................... -8 -29 -10 -5 3 -20 2 -2 -3 -7 26 Switzerland........................................... 117 158 74 -2 -3 13 15 32 31 -4 27 United Kingdom................................... -52 23 385 * 15 54 8 225 43 109 28 Canada.................................................... 128 96 69 -1 16 7 11 55 -3 6 29 Latin America.......................................... 31 94 7 29 6 27 -5 8 1 3 30 Middle East1............................................ 1,553 1,179 539 156 74 -21 59 -7 48 439 31 Other Asia2............................................. -35 -165 -9 3 -8 -43 1 -8 -6 4 32 Africa...................................................... 5 -25 -2 -2 -2 -14 * * -2 * 33 Other countries........................................ 1 -21 * * * -2 * * * * 34 Nonmonetary international and regional organizations......................................... -1,030 -41 67 64 -119 3 4 -9 27 45 Foreign securities 35 Stocks, net purchases, or sales (—)................... -189 -322 -229 -1 -1 4 -18 -109 -62 -40 36 Foreign purchases........................................ 1,541 1,937 655 132 167 217 181 130 187 157 37 Foreign sales............................................... 1,730 2,259 883 133 168 213 199 238 249 197 38 Bonds, net purchases, or sales ( —).................... -6,325 -8,652 -478 -367 -400 -1,298 -30 -374 -80 -18 39 Foreign purchases........................................ 2,383 4,932 2,626 452 455 670 818 581 613 599 40 Foreign sales............................................... 8,708 13,584 3,104 819 855 1,968 848 955 693 617 41 Net purchases, or sales (—) of stocks and bonds.. -6,515 -8,973 -707 -369 -402 -1,294 -49 -483 -142 -57 42 Foreign countries............................................. -4,323 -7,078 -971 -282 -270 -765 -338 -488 -159 4 43 Europe........................................................ -53 -844 -172 -37 -10 -140 -21 -207 54 2 44 Canada........................................................ -3,202 -5,168 -140 -301 -26 -643 -298 -265 -93 -94 45 Latin America............................................. -306 3 171 13 -28 37 25 42 35 69 46 Asia............................................................ -622 -700 -244 34 -10 -24 -53 -61 -154 25 47 Africa......................................................... 15 48 1 1 * 2 -1 2 * * 48 Other countries............................................ -155 -416 12 9 -197 3 9 1 * 2 49 Nonmonetary international and regional -2,192 -1,898 265 -87 -132 -529 290 5 17 -6 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 investments 2 Includes Middle East oil-exporting countries until 1975. abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A66 International Statistics □ June 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 1975 1976 1975 1976 Type, and area or country Dec. Mar. June Sept. Dec.p Dec. Mar. June Sept. Dec.p Liabilities to foreigners Claims on foreigners 1 6,006 6,350 6,301 6,318 6 An 12,151 12,698 13,847 13,190 14,148 By type: 2 Payable in dollars......................................... 5,402 5,700 5,676 5,702 5,867 11,048 11,713 12,912 12,211 13,211 3 Payable in foreign currencies......................... 605 650 625 615 610 1,103 985 935 980 936 4 Deposits with banks abroad in reporter’s 564 478 496 493 379 5 Other....................................................... 539 508 439 487 557 By area or country: 6 Foreign countries............................................. 5,602 6,132 6,055 6,131 6,269 12,150 12,697 13,846 13,189 14,147 7 Europe......................................................... 2,333 2,344 2,286 2,270 2,122 4,499 4,935 5,330 5,155 5,250 8 Austria.................................................... 14 6 13 15 10 16 17 17 21 21 9 299 296 233 183 166 133 116 193 195 163 10 Denmark................................................. 9 12 12 13 7 39 35 30 26 50 11 Finland.................................................... 14 10 7 21 4 91 36 138 139 79 12 France..................................................... 149 205 159 185 198 291 355 363 413 426 13 Germany................................................. 149 152 228 256 173 355 305 358 492 377 14 Greece..................................................... 19 25 29 28 48 33 41 47 56 51 15 Italy......................................................... 171 125 116 128 97 381 406 335 358 383 16 Netherlands............................................. 114 162 170 141 141 167 176 146 142 162 17 Norway................................................... 20 23 22 24 29 40 58 52 43 49 18 Portugal.................................................. 4 3 3 5 13 44 45 22 28 40 19 Spain....................................................... 81 68 51 36 40 408 516 432 336 369 20 Sweden.................................................... 29 25 24 35 34 62 80 84 62 89 21 Switzerland.............................................. 130 159 213 241 187 242 207 270 254 241 22 Turkey.................................................... 25 14 20 16 13 28 26 31 23 25 23 United Kingdom...................................... 998 929 846 789 811 1,901 2,280 2,599 2,363 2,437 24 Yugoslavia............................................... 76 91 108 113 123 36 30 28 30 26 25 Other Western Europe.............................. 8 6 7 8 7 14 18 14 17 19 26 U.S.S.R................................................... 20 23 10 19 9 150 106 96 81 156 27 Other Eastern Europe............................... 11 10 16 14 13 70 80 75 79 85 28 Canada....................................................... 295 313 369 324 377 2,109 2,234 2,202 2,216 2,449 29 Latin America.............................................. 912 1,176 1,077 1,011 1,017 2,367 2,563 3,053 2,813 3,557 30 Argentina................................................. 36 41 42 41 38 58 48 43 39 44 31 Bahamas.................................................. 277 376 330 251 260 667 883 1,150 925 1,368 32 Brazil...................................................... 96 91 90 53 65 409 475 462 417 682 33 Chile....................................................... 14 11 15 16 17 36 27 46 26 34 34 Colombia................................................. 17 16 19 11 13 49 47 57 66 59 35 Cuba....................................................... * * * * * 1 1 1 1 1 36 Mexico.................................................... 82 92 72 74 95 362 332 332 352 332 37 Panama................................................... 16 10 12 10 34 91 84 101 83 74 38 Peru......................................................... 29 30 31 32 25 41 38 39 35 42 39 Uruguay.................................................. 3 2 3 3 4 4 4 4 22 5 40 Venezuela................................................. 100 163 184 222 219 178 156 186 215 194 41 Other Latin American republics................. 71 71 95 100 137 159 170 184 179 270 42 Netherlands Antilles 1.............................. 35 58 55 68 10 12 7 10 9 9 43 Other Latin America................................ 138 214 130 129 101 301 292 437 444 442 44 Asia............................................................ 1,721 1,733 1,752 2,027 2,080 2,631 2,489 2,727 2,419 2,330 45 China, People’s Republic of (Mainland)__ 6 5 8 7 20 65 35 23 11 23 46 China, Republic of (Taiwan)..................... 97 110 124 129 112 164 100 215 136 199 47 Hong Kong............................................. 18 23 28 33 40 111 66 104 88 96 48 India....................................................... 7 9 10 11 23 39 60 51 53 55 49 Indonesia................................................. 137 141 133 144 136 140 155 160 193 209 50 Israel....................................................... 31 26 34 32 39 54 42 53 48 41 51 Japan...................................................... 295 307 290 275 228 1,130 1,161 1,169 1,008 912 52 Korea...................................................... 69 53 62 85 77 263 105 131 142 120 53 Philippines............................................... 14 18 18 28 53 96 106 114 93 86 54 Thailand.................................................. 18 18 11 23 24 22 20 19 23 22 55 Other Asia............................................... 1,031 1,022 1,035 1,260 1,326 549 638 691 624 567 56 Africa......................................................... 390 502 527 432 597 405 343 378 407 390 57 Egypt...................................................... 37 30 22 25 27 22 22 28 36 28 58 Morocco.................................................. 8 7 32 42 43 10 10 12 9 10 59 South Africa............................................ 99 113 88 65 54 93 80 83 78 87 60 Zaire....................................................... 6 7 12 24 36 24 23 25 28 21 61 Other Africa............................................ 239 345 372 276 438 256 207 230 257 245 62 Other countries............................................. 70 65 44 67 76 141 133 155 178 171 63 Australia.................................................. 55 47 32 50 57 102 97 100 112 106 64 All other.................................................. 14 18 12 18 19 39 36 56 67 65 65 Nonmonetary international and regional organizations............................................ 276 219 246 186 208 1 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 1 1976 1977 Type and country 1973 1974 1975 Sept. Oct. Nov. Dec. Jan. Feb.? Mar.p 1 Total.............................................................. 3,164 3,357 3,792 4,725 4,897 5,123 5,419 5,358 5,575 6,286 By type: 2 Payable in dollars......................................... 2,625 2,660 3,038 4,077 4,326 4,600 4,802 4,743 4,941 5,673 3 Deposits................................................... 2,588 2,591 2,706 3,707 3,935 4,213 4,429 4,375 4,564 5,218 4 Short-term investments 1........................... 37 69 332 370 391 387 373 368 377 455 5 Payable in foreign currencies......................... 540 697 756 648 571 523 618 616 634 614 6 Deposits.................................................. 435 429 510 438 339 307 332 308 336 312 7 Short-term investments 1........................... 105 268 246 210 232 216 286 308 298 302 By country: 8 United Kingdom.......................................... 1,118 1,350 1,304 1,709 1,640 1,693 1,835 1,851 1,844 1,871 9 Canada........................................................ 765 967 1,153 1,336 1,429 1,552 1,539 1,291 1,321 1,468 10 Bahamas...................................................... 589 390 546 810 1,059 1,059 1,247 1,312 1,396 1,707 11 Japan.......................................................... 306 398 343 146 116 135 110 127 164 147 12 All other...................................................... 386 252 445 724 653 684 688 111 850 1,093 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 1975 1976 1975 1976 Area and country Dec. Mar. June Sept. Dec.p Dec. Mar. June Sept. Dec.P Liabilities to foreigners Claims on foreigners 1 Total.............................................................. 4,256 4,069 3,935 3,725 3,507 4,977 5,177 5,034 4,971 4,910 2 Europe........................................................... 3,267 3,114 2,992 2,820 2,697 1,026 973 984 953 910 3 Germany..................................................... 506 446 425 406 396 37 34 35 73 72 4 Netherlands................................................. 202 214 214 270 258 217 219 211 211 156 5 Switzerland.................................................. 522 484 467 327 260 59 56 56 54 57 6 United Kingdom.......................................... 1,604 1,577 1,493 1,445 1,407 396 349 365 298 297 7 Canada........................................................... 155 144 166 111 86 1,426 1,473 1,516 1,511 1,534 8 Latin America................................................. 269 248 222 230 241 1,634 1,770 1,602 1,547 1,520 9 Bahamas..................................................... 210 184 157 132 138 8 7 37 37 36 10 Brazil.......................................................... 4 5 5 5 5 170 182 164 171 203 11 Chile........................................................... 1 1 1 1 1 315 312 306 244 248 12 Mexico....................................................... 3 6 6 7 15 216 209 187 219 195 13 Asia................................................................ 496 495 489 498 423 669 685 710 737 771 14 Japan.......................................................... 397 394 388 402 397 90 91 85 80 80 15 Africa............................................................. 2 2 2 2 2 168 214 163 165 189 16 All other 1...................................................... 66 65 64 64 58 55 61 59 58 58 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A68 International Statistics □ June 1977 3.29 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on May 31, 1977 Rate on May 31, 1977 Rate on May 31, 1977 Country Country Country Per Month Per Month Per Month cent effective cent effective cent effective Argentina..................... 18.0 Feb. 1972 10.5 Sept. 1976 6.0 Sept. 1976 Austria......................... 4.0 June 1976 Germany, Fed. Rep. of. 3.5 Sept. 1975 8.0 Oct. 1976 Belgium........................ 6.5 May 1977 15.0 Oct. 1976 2.0 June 1976 Brazil........................... 28.0 May 1976 5.0 Apr. 1977 United Kingdom......... 8.0 May 1977 7.5 May 1977 4.5 June 1942 5.0 Oct. 1970 Denmark...................... 9.0 Mar. 1977 Netherlands................ 3.5 May 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. 3.30 FOREIGN SHORT-TERM INTEREST RATES Per cent per annum, averages of daily figures 1976 1977 Country, or type 1974 1975 1976 Dec. Jan. Feb. Mar. Apr. May 1 Euro-dollars................................................... 11.01 7.02 5.58 5.01 5.14 5.08 5.13 5.16 5.80 2 United Kingdom............................................ 13.34 10.63 11.35 14.27 13.53 11.56 10.31 8.59 7.63 3 Canada.......................................................... 10.47 8.00 9.39 8.51 8.24 7.78 7.63 7.58 7.44 4 Germany....................................................... 9.80 4.87 4.19 4.82 4.70 4.64 4.70 4.57 4.43 5 Switzerland.................................................... 3.01 1.45 1.98 1.24 1.68 2.88 2.61 3.98 6 Netherlands................................................... 5.17 7.02 6.51 6.18 6.04 5.73 4.89 3.03 7 France........................................................... 7.91 8.65 10.55 10.02 9.81 9.87 9.33 9.13 8 Italy.............................................................. 10.37 16.32 17.13 15.68 15.86 16.57 16.26 15.49 9 Belgium......................................................... 6.63 10.25 10.73 8.49 7.59 7.07 7.01 6.94 10 Japan............................................................ 11.64 7.70 8.00 7.50 7.50 7.20 6.46 5.75 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. 3.31 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1976 1977 Country/currency 1974 1975 1976 Dec. Jan. Feb. Mar. Apr. May 1 Australia/dollar............... 143.89 130.77 122.15 105.29 108.53 109.04 109.94 110.53 110.31 2 Austria/shilling................. 5.3564 5.7467 5.5744 5.9061 5.8852 5.8453 5.8822 5.9252 5.9533 3 Belgium/franc.................. 2.5713 2.7253 2.5921 2.7483 2.7249 2.7114 2.7258 2.7509 2.7700 4 Canada/dollar.................. 102.26 98.30 101.41 98.204 98.985 97.295 95.125 95.103 95.364 5 Denmark/krone............... 16.442 17.437 16.546 17.145 16.967 16.891 17.038 16.710 16.638 6 Finland/markka............... 26.565 27.285 25.938 26.315 26.313 26.169 26.296 24.899 24.530 7 France/franc.................... 20.805 23.354 20.942 20.055 20.108 20.083 20.075 20.133 20.190 8 Germany/deutsche mark... 38.723 40.729 39.737 41.965 41.792 41.582 41.812 42.119 42.394 9 India/rupee...................... 12.460 11.926 11.148 11.296 11.231 11.285 11.313 11.310 11.320 10 Ireland/pound.................. 234.03 222.16 180.48 167.84 171.24 171.03 171.74 171.90 171.85 11 Italy/lira.......................... .15372 .15328 .12044 .11521 .11372 .11327 .11276 .11264 .11279 12 Japan/yen........................ . 34302 .33705 .33741 .33933 .34359 .35087 .35687 .36339 .36046 13 Malaysia/ringgit............... 41.682 41.753 39.340 39.550 39.718 40.011 40.152 40.305 40.255 14 Mexico/peso.................... 8.0000 8.0000 6.9161 4.8626 4.8114 4.4084 4.3978 4.4076 4.3890 15 Netherlands/guilder.......... 37.267 39.632 37.846 40.240 39.953 39.813 40.079 40.464 40.7009 16 New Zealand/dollar.......... 140.02 121.16 99.115 92.179 94.839 95.192 95.689 96.129 96.002 18.119 19.180 18.327 19.193 18.946 18.904 19.035 18.909 18.956 18 Portugal/escudo. .............. 3.9506 3.9286 3.3159 3.1674 3.1276 3.0717 2.5778 2.5752 2.5818 19 South Africa/rand............ 146.98 136.47 114.85 114.95 114.94 115.00 115.00 114.93 115.00 20 Spain/peseta ..................... 1.7337 1.7424 1.4958 f.4634 1.4577 1.4475 1.4530 1.4536 1.4491 14.978 14.385 11.908 11.246 11.421 11.442 12.820 13.676 13.700 22 Sweden/krona.................. 22.563 24.141 22.957 24.051 23.734 23.543 23.726 23.004 22.962 23 Switzerland/franc............. 33.688 38.743 40.013 40.823 40.127 39.669 39.209 39.582 39.694 24 United Kingdom/pound... 234.03 222.16 180.48 167.84 171.24 171.03 171.74 171.90 171.85 Memo: 25 United States/dollar 1....... 84.11 82.20 89.68 90.55 90.35 90.55 90.45 90.13 89.99 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
A69 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 partic e 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 Detailed data for call report for September 30, 1976, appear on following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A70 Domestic Financial Statistics □ June 1977 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1976< Asset and liability items are shown in millions of dollars Member banks1 Insured Non Asset account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 1 120,709 102,645 28,519 4,026 37,317 32,783 18,069 2 11,866 8,836 782 151 2,824 5,079 3,030 3 26,496 26,496 4,823 1,770 9,926 9,977 4 Demand balances with banks in United States....... 27,863 16,955 6,033 186 3,272 7,463 10,913 5 5,144 3,052 116 25 977 1,935 2,092 6 Balances with banks in foreign countries.............. 3,868 3,417 296 28 2,045 1,048 452 7 45,470 43,890 16,468 1,867 18,273 7,282 1,581 238,111 168,815 20,453 7,953 52,729 87,680 69,299 9 94,148 68,496 10,625 3,930 21,679 32,262 25,655 10 Other U.S. Govt, agencies................................... 34,089 21,136 1,201 360 5,874 13,701 12,954 11 States and political subdivisions........................... 103,914 75,183 8,208 3,435 24,106 39,435 28,730 12 All other securities.............................................. 5,834 3,921 420 229 1,033 2,240 1,913 13 126 79 37 42 47 14 Trading-account securities.................................... 7,753 6,979 3,154 673 2,875 277 175 15 U.S. Treasury................................................. 4,540 4,438 2,311 444 1,535 148 101 16 Other U.S. Govt, agencies................................ 658 656 222 50 371 14 2 17 States and political subdivisions....................... 1,403 1,379 528 113 675 64 24 18 All other trading acct. securities....................... 426 426 93 67 258 8 1 19 126 79 37 42 Al 20 230,958 161,836 17,299 7,280 49,854 87,403 69,124 21 89,608 64,057 8,314 3,486 20,144 32,113 25,553 22 Other U.S. Govt, agencies................................ 33,431 20,480 979 310 5,503 13,687 12,952 23 102,510 73,804 7,680 3,322 23,432 39,370 28,706 24 All other portfolio securities............................ 5,408 3,495 327 162 775 2,232 1,913 25 F.R. stock and corporate stock............................... 1,532 1,291 268 78 All 473 241 26 Federal funds sold and securities resale agreement....... 37,318 29,168 1,575 1,087 15,668 10,837 8,186 27 33,278 25,381 1,008 925 13,034 10,414 7,933 28 2,581 2,456 458 120 1,588 290 124 29 Others................................................................ 1,459 1,331 109 42 1,047 133 129 512,885 391,783 70,487 21,157 143,351 156,787 121,102 31 12,439 8,617 574 84 2,822 5,137 3,822 32 Reserves for loan loss................................ 6,122 4,928 1,192 316 1,764 1,656 1,194 33 494,323 378,238 68,721 20,758 138,765 149,994 116,085 Other loans, gross, by category 34 145,670 102,858 9,519 1,981 36,784 54,574 42,812 35 Construction and land development................. 16,794 13,565 2,967 521 6,272 3,805 3,229 36 6,505 2,793 16 14 288 2,475 3,712 37 82,531 59,194 4,486 944 21,294 32,470 23,337 38 78,162 55,999 4,097 832 20,209 30,862 22,163 39 FHA-insured or VA-guaranteed................. 8,178 7,094 623 50 3,858 2,562 1,084 40 69,984 48,906 3,474 781 16,351 28,299 21,079 41 4,369 3,195 390 112 1,085 1,608 1,174 42 374 311 121 25 11 88 63 43 3,995 2,884 269 87 1,008 1,520 1,110 44 Secured by other properties.............................. 39,839 27,305 2,050 502 8,930 15,824 12,534 45 34,108 32,387 11,887 4,221 13,442 2,837 1,721 46 10,215 9,868 3,751 1,411 4,010 697 346 47 2,495 1,986 800 128 778 280 508 48 To banks in foreign countries........................... 6,168 6,076 2,622 325 2,642 487 93 49 1,184 1,003 79 21 735 167 181 50 To other financial institutions........................... 14,046 13,454 4,635 2,336 5,278 1,205 593 51 8,465 8,247 4,936 1,176 1,990 145 111 52 4,057 3,417 428 312 1,738 939 640 53 Loans to farmers-^-except real estate.................... 22,913 12,790 93 135 1,91 A 9,588 10,123 54 169,720 139,934 35,256 10,823 53,317 40,538 29,786 55 Loans to individuals............................................ 114,770 80,793 5,861 1,712 28,043 45,177 33,978 56 91,290 64,074 4,375 967 22,527 36,205 27,216 57 38,615 25,239 806 143 7,294 16,996 13,376 58 Residential-repair/modernize......................... 6,425 4,531 316 47 1,784 2,384 1,894 59 Credit cards and related plans...................... 13,111 11,560 1,544 592 6,287 3,137 1,551 60 Charge-account credit cards...................... 10,211 9,171 1,099 561 5,147 2,364 1,041 61 Check and revolving credit plans............... 2,900 2,390 445 31 1,141 773 510 62 15,930 10,994 310 78 3,873 6,733 4,936 63 8,794 6,261 167 31 2,239 3,824 2,533 64 7,136 4,734 143 47 1,634 2,909 2,402 65 17,209 11,749 1,398 108 3,288 6,955 5,459 66 23,481 16,719 1,486 745 5,517 8,971 6,762 67 All other loans.................................................... 13,182 11,358 2,508 798 5,062 2,991 1,824 68 Total loans and securities, net................................. 771,284 577,512 91,017 29,877 207,634 248,984 193,811 69 Direct lease financing............................................. 4,820 4,590 1,062 130 2,736 663 230 70 Fixed assets—Buildings, furniture, real estate.......... 19,251 14,527 1,999 622 5,603 6,302 4,726 71 Investment in unconsolidated subsidiaries................ 2,227 2,186 909 162 1,042 73 40 9,868 9,497 5,027 351 3,826 293 372 73 Other assets........................................................... 30,667 27,621 11,919 1,601 10,045 4,056 3,089 958,827 738,577 140,451 36,769 268,204 293,154 220,337 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banks A71 1.26 Continued^ Member banks1 Insured Non- Liability or capital commercial Large banks member account banks banks1 Total All other New York City of Other City Chicago large 309,935 243,671 58,244 10,034 85,132 90,260 66,264 76 Mutual savings banks.......................................... 1,129 1,020 486 2 242 289 109 77 Other individuals, partnerships, and 233,964 177,465 29,296 7,344 66,188 74,637 56,498 78 U.S. Govt........................................................... 5,738 4,285 459 169 1,618 2,038 1,453 16,404 11,586 641 191 3,454 7,300 4,818 80 Foreign governments, central banks, etc............... 1,272 1,251 989 21 217 24 21 81 Commercial banks in United States..................... 32,958 31,959 17,063 1,901 9,544 3,452 998 82 Banks in foreign countries................................... 6,157 5,916 4,488 141 1,148 138 241 12,313 10,188 4,821 265 2,721 2,382 2,125 285,825 210,810 33,040 12,327 72,926 92,516 75,016 170 138 12 125 33 ..................................... 86 3M86utual saving37s 3banks 194 6 140 33 13 87 Other individuals, partnerships, and 224,286 163,792 23,370 8,873 56,019 75,531 60,493 88 U.S. Govt........................................................... 731 580 88 33 241 219 151 44,022 30,762 1,326 1,203 12,433 15,800 13,260 8,323 8,048 4,915 1,177 1,909 47 275 6,628 5,901 2,291 942 1,970 697 727 92 Banks in foreign countries................................... 1,281 1,216 856 93 202 65 65 93 Savings deposits...................................................... 190,325 136,037 10,187 2,751 49,096 74,002 54,288 94 Individuals and nonprofit organizations............... 179,937 128,442 9,560 2,636 46,285 69,961 51,494 95 Corporations and other profit organizations......... 7,077 5,261 360 110 2,278 2,513 1,817 96 U.S. Govt.......................................................... 3,260 2,287 236 6 522 1,522 973 97 All other............................................................. 51 47 32 10 5 3 98 Total deposits......................................................... 786,084 590,517 101,471 25,113 207,154 256,778 195,567 99 Federal funds purchased and securities sold under agreements to repurchase................................ 64,132 60,803 14,683 7,898 30,052 8,170 3,330 100 Commercial banks............................................ 36,521 35,115 7,200 5,635 18,357 3,924 1,406 101 Brokers and dealers........................................... 6,289 5,778 923 821 3,222 812 510 102 Others.............................................................. 21,323 19,910 6,560 1,442 8,474 3,434 1,413 103 Other liabilities for borrowed money...................... 4,733 4,454 2,229 53 1,729 443 279 798 578 57 16 311 195 220 10,471 10,099 5,602 351 3,852 294 372 106 Other liabilities.................................................... 16,067 13,825 4,359 798 5,513 3,155 2,322 107 Total liabilities...................................................... 882,286 680,276 128,402 34,229 248,612 269,034 202,091 108 Subordinated notes and debentures........................ 4,931 3,995 1,098 83 1,802 1,012 936 109 Equity capital....................................................... 71,609 54,306 10,951 2,457 17,791 23,107 17,310 110 Preferred stock................................................. 76 35 10 25 41 111 Common stock................................................. 16,477 12,295 2,444 570 3,768 5,513 4,185 112 Surplus............................................................. 28,202 21,114 4,231 1,155 7,394 8,334 7,089 25,046 19,565 4,184 660 6,193 8,528 5,483 114 Other capital reserves........................................ 1,808 1,296 92 71 426 707 512 115 Total liabilities and equity capital........................... 958,827 738,577 140,451 36,769 268,204 293,154 220,337 116 Memo: Demand deposits adjusted 2....................... 225,769 163,536 24,254 6,097 55,698 77,488 62,232 Average for last 15 or 30 days: 117 Cash and due from bank................................... 121,031 103,795 29,495 4,296 37,813 32,192 17,239 118 Federal funds sold and securities purchased under agreements to resell........................... 40,210 31,166 1,824 1,353 15,658 12,331 9,077 119 Total loans........................................................ 499,639 382,368 70,357 20,941 139,653 151,417 117,272 120 Time deposits of $100,000 or more..................... 134,595 111,784 28,660 9,880 44,751 28,493 22,811 121 Total deposits................................................... 774,159 579,734 95,758 24,367 203,638 255,971 194,425 122 Federal funds purchased and securities sold under agreements to repurchase................... 69,683 65,646 17,273 8,750 31,425 8,197 4,038 123 Other liabilities for borrowed money................... 4,276 3,989 1,703 67 1,831 388 287 124 Standby letters of credit outstanding...................... 11,476 10,936 6,276 850 3,137 673 540 125 Time deposits of $100,000 or more........................ 134,796 111,644 28,227 9,752 44,932 28,734 23,152 126 Certificates of deposit........................................ 113,509 93,241 23,574 8,252 36,440 24,976 20,268 127 Other time deposits........................................... 21,287 18,402 4,653 1,500 8,492 3,757 2,884 128 Number of banks............................................... 14,389 5,773 12 9 154 5,598 8,622 M Similar data for Dec. 31, 1976, appear on pp. A-18 and A-19. Note.—Data include consolidated reports, including figures for all 1 Member banks exclude and nonmember banks include 6 noninsured bank-premises subsidiaries and other significant majority-owned do trust companies that are members of the Federal Reserve System, and mestic subsidiaries. Securities are reported on a gross basis before deduc member banks exclude 2 national banks outside the continental United tions of valuation reserves. Holdings by type of security will be reported States. as soon as they become available. 2 Demand deposits adjusted are demand deposits other than domestic Back data in lesser detail were shown in previous Bulletins. Details commercial interbank and U.S. Govt., less cash items reported as in may not add to totals because of rounding. process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman Stephen S. Gardner, Vice Chairman Philip E. Coldwell Henry C. W allich Philip C. Jackson, Jr. J. Charles Partee David M. Lilly OFFICE OF OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY POLICY STAFF DIRECTOR FOR MANAGEMENT Thomas J. O’Connell, Counsel to the John M. Denkler, Staff Director Chairman Stephen H. Axilrod, Staff Director Robert J. Lawrence, Deputy Staff M ilton W. Hudson, Assistant to the Arthur L. Broida, Deputy Staff Director Director Chairman Murray Altmann, Assistant to the Board Donald E. Anderson, Assistant Director for Joseph R. Coyne, Assistant to the Board Peter M. Keir, Assistant to the Board Construction Management Kenneth A. Guenther, Assistant to the Board Stanley J. Sigel, Assistant to the Board Gordon B. Grimwood, Assistant Director Jay Paul Brenneman, Special Assistant to the Norm and R. V. Bernard, Special Assistant to and Program Director for Board the Board Contingency Planning Frank O’Brien, Jr., Special Assistant to the William W. Layton, Director of Equal Board Employment Opportunity Joseph S. Sims, Special Assistant to the Board 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 John H. Kalchbrenner, Associate Director LEGAL DIVISION Eleanor J. Stockwell, Senior Research John D. Hawke, Jr., General Counsel Division Officer Baldwin B. Tuttle, Deputy General James R. W etzel, Senior Research Division DIVISION OF FEDERAL RESERVE Counsel Officer BANK EXAMINATIONS AND BUDGETS Robert E. Mannion, Assistant General Robert A. Eisenbeis, Associate Research William H. W allace, Director Counsel Division Officer Albert R. Hamilton, Associate Director Allen L. Raiken, Assistant General Counsel fJohn J. Mingo, Associate Research Division Clyde H. Farnsworth, Jr., Assistant Director Gary M. Welsh, Assistant General Counsel Officer John F. Hoover, Assistant Director Charles R. M cNeill, Assistant to the J. Cortland G. Peret, Associate Research P. D. Ring, Assistant Director General Counsel Division Officer A ll Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
DIVISION OF DIVISION OF CONSUMER AFFAIRS tHelmut F. W endell, 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 W alter 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 John E. Ryan, Acting Director John E. Reynolds, Acting Director David L. Shannon, Director William W. Wiles, Associate Director Edwin M. Truman, Associate Director Charles W. Wood, Assistant Director Frederick R. Dahl, Assistant Director Robert F. Gemmill, Senior International Jack M. Egertson, Assistant Director Division Officer John T. McClintock, Assistant Director George B. Henry, Senior International OFFICE OF THE CONTROLLER Thomas E. Mead, Assistant Director Division Officer Robert S. Plotkin, Assistant Director Reed J. Irvine, Senior International John Kakalec, Controller Thomas A. Sidman, Assistant Director Division Officer Tyler E. Williams, Jr., Assistant Controller Samuel Pizer, Senior International Division Officer DIVISION OF ADMINISTRATIVE SERVICES Charles J. Siegman, Senior International Division Officer W alter W. Kreimann, Director John D. Smith, Assistant Director * On loan from the Federal Reserve Bank of Minneapolis. tOn leave of absence. A73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 74 Federal Open Market Committee A rthur F. Burns, Chairman Paul A. V olcker, Vice Chairman Philip E. C oldw ell Philip C. Jackson, Jr. J. Charles Partee Stephen S. Gardner David M. L illy Lawrence K. Roos Roger Guffey Robert P. Mayo Henry C. Wallich Frank E. Morris Arthur L. Broida, Secretary Anatol Balbach, Associate Economist Murray Altmann, Deputy Secretary Richard G. Davis, Associate Economist Normand R. V. Bernard, Assistant Thomas Davis, Associate Economist Secretary Robert Eisenmenger, Associate Economist Thomas J. O’Connell, General Counsel Edward C. Ettin, Associate Economist Edward G. Guy, Deputy General Counsel James L. Kichline, Associate Economist Baldwin B. Tuttle, Assistant General John E. Reynolds, Associate Economist Counsel Karl Scheld, Associate Economist Stephen H. Axilrod, Economist Edwin M. Truman, Associate Economist Joseph S. Zeisel, Associate Economist Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations Federal Advisory Council Richard D. H ill, first federal reserve district, President Gilbert F. Bradley, tw elfth 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
A75 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 Vacant 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 Vacant 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 Mark H. Willes 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
A76 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 Bank Credit-Card and Check-Credit Plans. 1968. Functions. 1974. 125 pp. 102 pp. $1.00 each; 10 or more to one address, $.85 each. Annual Report Survey of Financial Characteristics of Con Federal Reserve Bulletin. Monthly. $20.00 per sumers. 1966. 166 pp. $1.00 each; 10 or more year or $2.00 each in the United States, its posses to one address, $.85 each. sions, Canada, and Mexico; 10 or more of same Survey of Changes in Family Finances. 1968. 321 issue to one address, $18.00 per year or $1.75 pp. $1.00 each; 10 or more to one address, $.85 each. Elsewhere, $24.00 per year or $2.50 each. each. Banking and Monetary Statistics, 1914-1941. Report of the Joint Treasury-Federal Reserve (Reprint of Part 1 only) 1976. 682 pp. $5.00. Study of the U.S. Government Securities Banking and Monetary Statistics, 1941-1970. Market. 1969. 48 pp. $.25 each; 10 or more to 1976. 1,168 pp. $15.00. one address, $.20 each. Annual Statistical Digest, 1970-75. 1976. 339 pp. Joint Treasury-Federal Reserve Study of the $4.00 per copy for each paid subscription to Fed Government Securities Market: Staff Stud eral Reserve Bulletin. All others, $5.00 each. ies—Part 1. 1970. 86 pp. $.50 each; 10 or more Federal Reserve Monthly Chart Book. Subscrip to one address, $.40 each. Part 2. 1971. 153 pp. tion includes one issue of Historical Chart Book. and Part 3. 1973. 131 pp. Each volume $1.00; $12.00 per year or $1.25 each in the United States, 10 or more to one address, $.85 each. its possessions, Canada, and Mexico; 10 or more Open Market Policies and Operating Proce of same issue to one address, $1.00 each. Else dures—Staff Studies. 1971. 218 pp. $2.00 where, $15.00 per year or $1.50 each. each; 10 or more to one address, $1.75 each. Historical Chart Book. Issued annually in Sept. Reappraisal of the Federal Reserve Discount Subscription to Monthly Chart Book includes one Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. issue. $1.25 each in the United States, its posses 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; sions, Canada, and Mexico; 10 or more to one 10 or more to one address, $2.50 each. address, $1.00 each. Elsewhere, $1.50 each. The Econometrics of Price Determination Con Capital Market Developments. Weekly. $15.00 per ference, October 30-31, 1970, Washington, D.C. year or $.40 each in the United States, its posses 1972. 397 pp. Cloth ed. $5.00 each; 10 or more sions, Canada, and Mexico; 10 or more of same to one address, $4.50 each. Paper ed. $4.00 each; issue to one address, $13.50 per year or $.35 each. 10 or more to one address, $3.60 each. Elsewhere, $20.00 per year or $.50 each. Federal Reserve Staff Study: Ways to Moderate Selected Interest and Exchange rates—Weekly Fluctuations in Housing Construction. 1972. Series of Charts. Weekly. $15.00 per year or 487 pp. $4.00 each; 10 or more to one address, $.40 each in the United States, its possessions, $3.60 each. Canada, and Mexico; 10 or more of same issue Lending Functions of the Federal Reserve to one address, $13.50 per year or $.35 each. Banks. 1973. 271 pp. $3.50 each; 10 or more Elsewhere, $20.00 per year or $.50 each. to one address, $3.00 each. The Federal Reserve Act, as amended through De Introduction to Flow of Funds. 1975. 64 pp. $.50 cember 1971, with an appendix containing provi each; 10 or more to one address, $.40 each. sions of certain other statutes affecting the Federal Improving the Monetary Aggregates (Report of the Reserve System. 252 pp. $1.25. Advisory Committee on Monetary Statistics). Regulations of the Board of Governors of the 1976. 43 pp. $1.00 each; 10 or more to one Federal Reserve System address, $.85 each. Published Interpretations of the Board of Gov Annual Percentage Rate Tables (Truth in Lend ernors, as of June 30, 1976. $7.50. 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 ll CONSUMER EDUCATION PAMPHLETS Revised Measures of Manufacturing Capacity Utilization. 10/71. (Short pamphlets suitable for classroom use. Multiple Revision of Bank Credit Series. 12/71. copies available without charge.) Assets and Liabilities of Foreign Branches of U.S. Banks. 2/72. The Equal Credit Opportunity Act and . . . Age Bank Debits, Deposits, and Deposit Turnover— The Equal Credit Opportunity Act and . . . Revised Series. 7/72. Doctors, Lawyers, Small Retailers, and Yields on Newly Issued Corporate Bonds. 9/72. Others Who May Provide Incidental Credit Recent Activities of Foreign Branches of U.S. The Equal Credit Opportunity Act and . . . Banks. 10/72. Women Revision of Consumer Credit Statistics. 10/72. Fair Credit Billing One-Bank Holding Companies Before the 1970 If You Borrow To Buy Stock Amendments. 12/72. U.S. Currency Yields on Recently Offered Corporate Bonds. What Truth in Lending Means to You 5/73. Credit-Card and Check-Credit Plans at Commer STAFF ECONOMIC STUDIES cial Banks. 9/73. Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corpora Studies and papers on economic and financial subjects tions. 10/73. that are of general interest in the field of economic research. U.S. Energy Supplies and Uses, Staff Economic Study by Clayton Gehman. 12/73. Summaries Only Printed in the Bulletin Inflation and Stagnation in Major Foreign In dustrial Countries. 10/74. (Limited supply of mimeographed copies of full text The Structure of Margin Credit. 4/75. available upon request for single copies.) New Statistical Series on Loan Commitments at The Growth of Multibank Holding Companies: Selected Large Commercial Banks. 4/75. 1956-73, by Gregory E. Boczar. Apr. 1976. 27 Recent Trends in Federal Budget Policy. 7/75. pp. Recent Developments in International Financial Extending Merger Analysis Beyond the Single- Markets. 10/75. Market Framework, by Stephen A. Rhoades. MINNIE: A Small V ersion of the May 1976. 25 pp. MIT-PENN-SSRC Econometric Model, Staff Seasonal Adjustment of M1—Currently Pub Economic Study by Douglas Battenberg, Jared J. lished and Alternative Methods, by Edward Enzler, and Arthur M. Havenner. 11/75. R. Fry. May 1976. 22 pp. An Assessment of Bank Holding Companies, Staff Effects of NOW Accounts on Costs and Earnings Economic Study by Robert J. Lawrence and of Commercial Banks in 1974-75, by John D. Samuel H. Talley, 1/76. Paulus. Sept. 1976. 49 pp. Industrial Electric Power Use. 1/76. Recent Trends in Local Banking Market Struc Revision of Money Stock Measures. 2/76. ture, by Samuel H. Talley. May 1977. 26 pp. Survey of Finance Companies, 1975. 3/76. Revised Series for Member Bank Deposits and Aggregate Reserves. 4/76. Printed in Full in the Bulletin Industrial Production— 1976 Revision. 6/76. Staff Economic Studies shown in list below. Federal Reserve Operations in Payment Mecha nisms: A Summary. 6/76. Recent Growth in Activities of U.S. Offices of REPRINTS Banks. 10/76. New Estimates of Capacity Utilization: Manu (Except for Staff Papers, Staff Economic Studies, and facturing and Materials. 11/76. some leading articles, most of the articles reprinted do U.S. International Transactions in a Recovering not exceed 12 pages.) Economy. 4/77. Bank Holding Company Financial Developments in 1976. 4/77. A Revised Index of Manufacturing Capacity, Changes in Bank Lending Practices, 1976. 4/77. Staff Economic Study by Frank de Leeuw with Survey of Terms of Bank Lending—New Series. Frank E. Hopkins and Michael D. Sherman. 11/66. 5/77. U.S. International Transactions: Trends in Changes in Time and Savings Deposits at Com 1960-67. 4/68. mercial Banks, Oct.-Jan. 1977. 6/77. Measures of Security Credit. 12/70. The Commercial Paper Market. 6/77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A78 Federal Reserve Bulletin □ June 1977 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE OR PERIOD APPROXIMATE TO WHICH DATA WEEKLY RELEASES RELEASE DAY REFER Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received or Acted on and All Other Actions Friday Week ended previous of the Board (H.2) Saturday Assets and Liabilities of All Commercial Banks in the United Wednesday Wednesday, 2 weeks States (H.8) earlier Changes in State Member Banks (K.3) Tuesday Week ended previous Saturday Commercial and Industrial Loans Outstanding by Industry (H.12)2 Wednesday Wednesday, 1 week earlier Deposits, Reserves, and Borrowings of Member Banks (H.7) Wednesday Week ended 3 Wed nesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Thursday Week ended previous Reserve Banks (H.4.1) Wednesday Foreign Exchange Rates (H.10) Monday Week ended previous Friday Money Stock Measures (H.6) Thursday Week ended Wednes day of previous week Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednes day of previous week Selected Interest Rates and Bond Prices (H.15) Monday Week ended previous Saturday Weekly Condition Report of Large Commercial Banks in New Thursday Previous Wednesday York and Chicago (H.4.3) Weekly Condition Report of Large Commercial Banks and Do Wednesday Wednesday, 1 week mestic Subsidiaries (H.4.2)3 earlier Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wed nesday of previous week SEMIMONTHLY RELEASE Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last re of month lease MONTHLY RELEASES Assets and Liabilities of all Member Banks, by Districts (G.7.1) 14th of month Last Wednesday of previous month Automobile Instalment Credit Developments (G.26) 6th working day 2nd month previous of month Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2On second Wednesday of month, contains monthly data release. 3Contains revised H.4.3 data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A79 MONTHLY RELEASES (cont.) DATE OR PERIOD APPROXIMATE TO WHICH DATA RELEASE DAY REFER Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Bank Interest Rates Charged on Consumer Instalment Loans (G.10) 15th of month 2nd month previous Capacity Utilization: Manufacturing and Materials (G.3) 17th of month Previous month Changes in Status of Banks and Branches (G.4.5) 25th of month Previous month Consumer Instalment Credit (G.19) 3rd working 2nd month previous day of month Federal Reserve System Memorandum on Exchange Charges (K.14) 5th of month Period since last re lease Finance Companies (G.20) 5th working 2nd month previous day of month Foreign Exchange Rates (G.5) 1st of month Previous month Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.3) 15th of month Previous month Loan Commitments at Selected Large Commercial Banks (G.21) 20th of month 2nd month previous Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposit (G.9) previous month Monthly Report of Condition for Foreign Banking Institutions in the U.S. (G.ll) 15th of month 2nd month previous Selected Interest Rates and Bond Prices (G. 13) 6th of month Previous month Summary of Equity Security Transactions (G.16) Last week of Release date month Survey of Terms of Bank Lending (G. 14) 15th of month 3rd month previous QUARTERLY RELEASES Finance Rates and Other Terms on Selected Types of Consumer 25th of Jan 2nd month previous Instalment Credit Extended by Major Finance Com uary, April, panies (E.10) July, October Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 15th of Febru Previous quarter ary, May, Volume and Composition of Individuals’ Saving August, (Flow of funds series) (E.8) November Geographical Distribution of Assets and Liabilities of Major 15th of Previous quarter Foreign Branches of U.S. Banks (E.ll) March, June, September, December Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo 10th of March, 2nd quarter previous rations (E.6) July, Septem ber, December DATE OR PERIOD APRROXIMATE TO WHICH DATA SEMIANNUAL RELEASES RELEASE DAY REFER Assets and Liabilities of Commercial Banks, by Class of Bank May and No End of previous De (E.3.4) vember cember and June Check Collection Services—Federal Reserve System (E.9) February Previous six and July months Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A80 Federal Reserve Bulletin □ June 1977 SEMIANNUAL RELEASES (Cont.) DATE OR PERIOD APPROXIMATE TO WHICH DATA RELEASE DAY REFER List of OTC Margin Stocks (E.7) June 30, De Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No End of previous De Savings Banks—Reports of Call (Joint Release of the Federal vember cember and June Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) ANNUAL RELEASES Aggregate Summaries of Annual Surveys of Security Credit February End of Previous June Extension (C.2) Bank Debits and Demand Deposits (C.5) March 25 Previous Year Member Bank Income (C.4) End of May Previous year State Member Banks of Federal Reserve System and Nonmember 1st quarter of End of previous year Banks that Maintain Clearing Accounts with Federal Reserve year Banks (G.4) (Supplements issued monthly) 15th of month Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A81 Index to Statistical Tables References are to pages A-3 through A-71 although the prefix “A” is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 70 Adjusted, commercial banks, 13, 15, 19, 71 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23, 71 Banks, by classes, 16, 17, 18, 20-23, 29, 70 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29, 71 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 BANK credit proxy, 15 Discount rates at F.R. Banks (See Interest rates) Bankers balances, 16, 18, 20, 21, 22, 70 Discounts and advances by F.R. Banks (See Loans) (See also Foreigners) Dividends, corporate, 38 Banks for cooperatives, 35 Bonds (See also U.S. Govt, securities): EMPLOYMENT, 46, 47 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, 34 Liabilities of U.S. banks to their foreign Federal and Federally sponsored credit agencies, 35 branches, 23 Federal finance: Debt subject to statutory limitation and Business activity, 46 Business expenditures on new plant and types and ownership of gross debt, 32 Receipts and outlays, 30, 31 equipment, 38 Business loans (See Commercial and industrial loans) Treasury operating balance, 30 Federal Financing Bank, 35 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30, 70 CAPACITY utilization, 46, 47 Federal home loan banks, 35 Capital accounts: Federal Home Loan Mortgage Corp., 35, 40, 41 Banks, by classes, 16, 17, 19, 20, 71 Federal Housing Administration, 35, 40, 41 Federal Reserve Banks, 12 Federal intermediate credit banks, 35 Central banks, 68 Federal land banks, 35, 41 Certificates of deposit, 23, 27 Federal National Mortgage Assn., 35, 40, 41 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 15, 18, 23, 26, 70 Condition statement, 12 Weekly reporting banks, 20, 21, 22, 23, 24 Discount rates (See Interest rates) Commercial banks: U.S. Govt, securities held, 4, 12, 13, 32, 33 Assets and liabilities, 3, 15-18, 20-23, 70 Federal Reserve credit, 4, 5, 12, 13 Business loans, 26 Federal Reserve notes, 12 Commercial and industrial loans, 24 Federally sponsored credit agencies, 35 Consumer loans held, by type, 42, 43 Finance companies: Loans sold outright, 23 Assets and liabilities, 39 Number, by classes, 16, 17, 19, 71 Business credit, 39 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, 39 Financial institutions, loans to, 18, 20-23, 70 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, 71 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 Credit unions, 29, 42, 43 Liabilities to, 23, 56-59, 64-67 Currency and coin, 5, 16, 18, 70 Currency in circulation, 4, 14 GOLD: Customer credit, stock market, 28 Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Assn., 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A82 Federal Reserve Bulletin □ June 1977 HOUSING, new and existing units, 50 REAL estate loans: Banks, by classes, 18, 20-23, 29, 41, 70 INCOME, personal and national, 46, 52, 53 Life insurance companies, 29 Industrial production, 46, 48 Mortgage terms, yields, and activity, 3, 40 Instalment loans, 42, 43 Type of holder and property mortgaged, 41 Insurance companies, 29, 32, 33, 41 Reserve position, basic, member banks, 6 Insured commercial banks, 17, 18, 19, 70, 71 Reserve requirements, member banks, 9 Interbank deposits, 16, 17, 20, 21, 22 Reserves: Interest rates: Commercial banks, 16, 17, 18, 20, 21, Bonds, 3 22, 70 Business loans of banks, 26 Federal Reserve Banks, 12 Federal Reserve Banks, 3, 8 Member banks, 3, 4, 5, 15, 16, 18, 70 Foreign countries, 68 U.S. reserve assets, 55 Money and capital market rates, 3, 27 Residential mortgage loans, 40 Mortgages, 3, 40 Retail credit and retail sales, 42, 43, 46 Prime rate, commercial banks, 26 Time and savings deposits, maximum rates, 10 SAVING: International capital transactions of the Flow of funds, 44, 45 United States, 56-67 National income accounts, 53 International organizations, 56-61, 65-67 Savings and loan assns., 3, 10, 29', 33, 41, 44 Inventories, 52 Savings deposits (See Time deposits) Investment companies, issues and assets, 37 Savings institutions, selected assets, 29 Investments (See also specific types of investments): Securities (See also U.S. Govt, securities): Banks, by classes, 16, 17, 18, 20, 21, 22, Federal and Federally sponsored agencies, 35 29, 70 Foreign transactions, 65 Commercial banks, 3, 15, 16, 17, 18, 70 New issues, 36, 37 Federal Reserve Banks, 12, 13 Prices, 28 Life insurance companies, 29 Special Drawing Rights, 4, 12, 54, 55 Savings and loan assns., 29 State and local govts.: Deposits, 19, 20, 21, 22, 71 LABOR force, 47 Holdings of U.S. Govt, securities, 32, 33 Life insurance companies (See Insurance companies) New security issues, 36 Loans (See also specific types of loans): Ownership of securities of, 18, 20, 21, 22, 29, 70 Banks, by classes, 16, 17, 18, 20-23, 29, 70 Yields of securities, 3 Commercial banks, 3, 15-18, 20-23, 24, 26, 70 State member banks, 17, 70 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Stock market, 28 Insurance companies, 29, 41 Stocks (See also Securities): Insured or guaranteed by U.S., 40, 41 New issues, 36, 37 Savings and loan assns., 29 Prices, 28 MANUFACTURERS: TAX receipts, Federal, 31 Capacity utilization, 46, 47 Time deposits, 3, 10, 15, 16, 17, 19, 20, 21, Production, 46, 49 22, 23, 71 Margin requirements, 28 Trade, foreign, 55 Member banks: Treasury currency, Treasury cash, 4 Assets and liabilities, by classes, 16, 17, 18, 70 Treasury deposits, 4, 12, 30 Borrowings at Federal Reserve Banks, 5, 12 Treasury operating balance, 30 Number, by classes, 16, 17, 19, 71 Reserve positiop, basic, 6 UNEMPLOYMENT, 47 Reserve requirements, 9 U.S. balance of payments, 54 Reserves and related items, 3, 4, 5, 15 U.S. Govt, balances: Mining production, 49 Commercial bank holdings, 19, 20, 21, 22, 71 Mobile home shipments, 50 Member bank holdings, 15 Monetary aggregates, 3, 15 Treasury deposits at Reserve Banks, 4, 12, 30 Money and capital market rates (See Interest rates) U.S. Govt, securities: Money stock measures and components, 3, 14 Bank holdings, 16, 17, 18, 20, 21, 22, 29, Mortgages (See Real estate loans) 32, 33, 70 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, 19, 71 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, 19, 70, 71 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
A83 The Federal Reserve System B oundaries of F ederal R eserve D istricts and T heir B ranch T erritories 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
Cite this document
Federal Reserve (1977, May 31). Federal Reserve Bulletin, 1977-06. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_197706
@misc{wtfs_bulletin_197706,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1977-06},
year = {1977},
month = {May},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_197706},
note = {Retrieved via When the Fed Speaks corpus}
}