Federal Reserve Bulletin, 1977-08

AUGUST 1977 FEDERAL RESERVE BIJI ,F,TTN i D o m estic F in an cial D ev elo p m en ts in th e S eco n d Q uarter o f 1977 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

NUMBER 8 □ VOLUME 63 □ AUGUST 1977 FEDERAL RESERVE BULLETIN B o a rd o f G o v e rn o rs o f th e F e d e ra l R e se rv e S y ste m W a sh in g to n , D . C . P U B L IC A T IO N S C O M M IT T E E Stephen H. Axilrod □ Joseph R. Coyne □ John M. Denkler □ Janet O. Hart John D. Hawke, Jr. □ James L. Kichline □ Edwin M. Truman 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 M ack 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 of Contents 707 Domestic Financial Developm ents be directed toward maintaining about in the Second Q uarter of 1977 the prevailing money market condi­ tions. The Committee specified an an­ Quarterly report to the Joint Eco­ nual rate of growth in a range of 2Vi to nomic Committee of the U.S. Congress 6V2 per cent for M-1 and of 6 to 10 per highlights important developments in cent for M -2. The members of the domestic financial markets during the Committee agreed that the operational spring and early summer. objective for the weekly-average Fed­ 715 S taff Economic Studies eral funds rate should be varied within a range of 5V4 to 53A per cent. Summary of “The Performance of Bank Holding Company-Affiliated Fi­ 741 Law Departm ent nance Companies” points out that, based on limited data, the entry of Amendment to Regulation V and bank holding companies into the con­ various bank holding company and sumer finance industry does not neces­ bank merger orders. sarily yield numerous public benefits. 765 Announcem ents 717 Statem ents to Congress Interpretation of Regulation B (Equal Credit Opportunity) pertains to Arthur F. Burns, Chairman of the Federal or State special-purpose credit Board of Governors, presents the views of the Board on H.R. 8094, the programs. “Federal Reserve Reform Act of Revision of consumer credit data. 1977,” in testimony before the Com­ Discontinuance by Board of publica­ mittee on Banking, Finance and Urban tion and construction of the bank credit Affairs, U.S. House of Representa­ tives, July 26, 1977. proxy. Changes in Board staff. 721 Chairman Burns, again appearing before the House Banking Committee, Publication of a revised list of overpresents the report of the Board on the the-counter stocks that are subject to condition of the national economy and the Board’s margin requirements. the course of monetary policy, July 29, One State bank admitted to Federal 1977. Reserve membership. 729 Record of Policy A ctions of the Federal Open M arket Committee 767 Industrial Production In the meeting held on June 21, 1977, Industrial output rose 0.5 per cent in the Committee decided that operations July for the sixth monthly increase in a in the period immediately ahead should row. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A72 Open M arket C om m ittee and A3 Domestic Financial Statistics Sta ff; F ederal A dvisory Council A46 Domestic Nonfinancial Statistics A54 International Statistics A73 F ederal R eserve Banks and Branches A69 Guide to Tabular Presentation A74 F ederal R eserve Board and Statistical R eleases Publications A70 Board of G overnors and S taff A76 Index to Statistical Tables A78 Map of Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments in the Second Quarter of 1977 This report, which was sent to the Joint Eco­ rapidly than in the first quarter, and the vol­ nomic Committee of the U.S. Congress, high­ ume of net mortgage borrowing rose substan­ lights the important developments in domestic tially to a new record level. In the public financial markets during the spring and early sector, long-term bond offerings by State and summer. local governments rose further from the previ­ ous record level in the first quarter; on the The total quantity of funds raised in domestic other hand, Treasury demands on credit mar­ credit markets rose substantially during the kets were sharply lower, reflecting cancella­ second quarter of 1977, in association with tion of the personal tax rebate and related continued vigorous expansion of aggregate payments previously scheduled, and a economic activity, with all sectors except the greater-than-seasonal rise in Federal Govern­ Federal Government increasing their financing ment tax receipts. demands. Although the pace of long-term The rapid expansion of economic activity bond and equity financing by U.S. corpora­ since midwinter also contributed to an in­ tions moderated, a greater reliance on short­ crease in the demand for money for transac­ term borrowing led to an increase in total tions purposes. The narrowly defined money credit advanced to these firms. Consumer stock (M-1) increased at an 8.5 per cent annual instalment credit expanded somewhat more rate during the second quarter, considerably Interest rates Per cent per annum SHORT-TERM LONG-TERM NOTES: Federal funds Monthly averages except for F.R. discount rate and conven­ tional mortgages (based on quota­ Aaa utility C m o o n rt v g e a n g t e io s nal tions for one day each month). New issue HUD I Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary mar­ kets, unweighted and rounded to nearest 5 basis points, from Dept, of Housing and Urban Development; F.R. discount Aaa utility bonds, weighted averages rate of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors State and local Service and adjusted to Aaa basis; government U.S. Govt, bonds, market yields ad­ Treasury bills justed to 20-year constant maturity 3-month by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 Federal Reserve Bulletin □ August 1977 higher than the 4.2 per cent rate of gain in the around 5% per cent. By late May, other previous quarter. Inflows of time and savings short-term rates had increased by roughly deposits to commercial banks and thrift in­ similar amounts. The Federal funds rate was stitutions moderated further in the second relatively stable during the rest of May and quarter, however, as interest-sensitive savers June, and short-term rates showed little apparently shifted funds to market instru­ further variation over the remainder of the ments in response to rising yields. As a result, quarter. the rate of expansion of the broader measures In contrast to short-term rates, most long­ of the money stock slowed. Growth of M-2 term yields edged slightly lower on balance declined to a seasonally adjusted annual rate over the quarter. Long-term credit markets of 9.2 per cent from 9.9 per cent the three showed little response to the upward move­ previous months, and M-3 grew at a 10 per ment in short-term rates, in part because some cent annual rate—down from an 11.3 per cent of the movement in short-term rates appar­ rate of gain in the first quarter. ently had already been anticipated in the level With the economy showing considerable of long-term yields. In addition, business cor­ strength and with the April growth in M-l porations and the U.S. Government both surging to a rate well above the upper limit of reduced their demands for long-term funds the longer-run ranges set by the Federal Open substantially during the second quarter. Market Committee, the Federal Reserve did Long-term rates also may have been favorably not fully accommodate the associated increase influenced by the moderation in the rate of in­ in demands for bank reserves. Accordingly, flation during the spring, following a period of the interest rate on Federal funds (overnight exceptionally rapid price increases last winter, loans of immediately available bank funds) and by the demonstrated willingness of the rose about 60 basis points during the latter part Federal Reserve to move promptly to restrain of April and the first half of May to a level of excessively rapid monetary growth. Changes in selected monetary aggregates Per cent, seasonally adjusted annual rates 1976 1977 Item 1975 1976 Q3 Q4 Ql Q2 Member bank reserves: Total ............................... -.2 1.0 2.7 4.4 2.7 3.1 NOTES: Nonborrowed............. 3.2 1.2 2.6 4.8 2.6 1.9 Mf-l is currency plus private de­ Concepts of money:1 mand deposits adjusted. M-l .................................. 4.4 5.6 4.4 6.5 4.2 8.5 M-2 .................................. 8.3 10.8 9.1 12.5 9.9 9.2 M-2 is M-l plus bank time and M-3 .................................. 11.1 12.8 11.4 14.4 11.3 10.0 savings deposits adjusted other than M-4 ................................. 6.5 7.1 6.0 9.8 9.3 8.5 large CD’s. M-5 .................................. 9.7 10.3 9.3 12.7 10.9 9.4 M-3 is M-2 plus deposits at mutual savings banks and savings Time and savings de­ and loan associations and credit posits at commer­ union shares. cial banks: M-4 is M-2 plus large negotiable Total (excluding large CD’s) ------ 11.7 15.2 12.8 17.1 14.0 9.8 CD’s. Savings .......................... 17.4 25.0 13.8 24.7 21.9 7.9 M-5 is M-3 plus large negotiable Other time .................. 7.8 7.7 11.7 10.8 7.1 11.6 CD’s. f 2Savings and loan associations, Thrift institutions2 ------ 15.8 15.8 14.8 17.3 13.4 11.0 mutual savings banks, and credit unions. Memo (change in bil­ lions of dollars, seasonally ad­ Note.—Changes are calculated justed): from the average amounts outstand­ Large CD’s .......................... -5.3 -19.2 -4.3 -3.1 .3 -.3 ing in each quarter. Annual rates of U.S. Govt, demand change in reserve measures have deposits at all been adjusted for changes in reserve member banks ... -.2 .3 .6 .1 -.8 .4 requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q2 1977 709 Although the second quarter increase in the M O N E T A R Y A G G R E G A T E S narrow money stock was the fastest for any A N D B A N K C R E D IT quarter since 1972, it was still substantially less than the rate of increase in gross national M-l expanded much more rapidly during the product (GNP). Indeed, the income velocity of second quarter than in the three previous M -l—that is, the ratio of GNP to M -1—rose at months, primarily reflecting an annualized growth rate of nearly 20 per cent in the month the relatively brisk rate of around 5 per cent during the second quarter, following an even of April. The April bulge may have stemmed greater increase of 8 per cent in the previous in part from transitory factors—including quarter. earlier-than-normal distribution of social secu­ Despite the marked acceleration in M -l, rity checks and unusually large personal in­ growth of the broader monetary aggregates come tax payments—but it also appears to during the second quarter was somewhat less have reflected increasing transactions de­ than the pace of the first quarter. The mands generated by the quickened pace of interest-bearing components of Af-2— time economic expansion in the first quarter. In recent years, large sudden increases in M-1 and savings deposits, other than negotiable certificates of deposit (CD’s) at weekly report­ generally have been followed by much smaller ing banks—grew at a 9.8 per cent annual rate, growth rates in the subsequent month or two. as compared with 14 per cent in the first This was true also in the period following the April bulge, although M-\ growth in May and quarter. Total deposits at savings and loan June still averaged 2.6 per cent. associations, mutual savings banks, and credit unions—included in M-3—rose at an 11 per cent rate in the second quarter, somewhat less Changes in incom e velocity of M-l and M-2 than the 13.4 per cent pace of the first. At commercial banks, the slackening of interest-bearing deposit inflows was due to a fall-off of savings deposit growth. Savings flows weakened each month during the quar­ ter, continuing a trend that had begun in January. In May and June there were net withdrawals from savings accounts of State and local governments, and inflows to savings accounts of individuals, nonprofit organiza­ tions, and businesses showed a sharp deceler­ ation. The abatement of savings deposit in­ flows apparently was associated with rising short-term market interest rates; interestsensitive depositors— especially the large de­ positors who have easy access to alternative money market investments— were attracted by the higher yields available on Treasury bills, commercial paper, CD’s, and other mar­ ket instruments. In contrast to savings deposit flows, the growth of time deposits at commercial banks accelerated in the second quarter. Smalldenomination time deposits, whose ceiling Data are at seasonally adjusted annual rates of growth. Money stock data are quarterly averages. rates remained substantially above yields on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 Federal Reserve Bulletin □ August 1977 market instruments of comparable maturity, B U S IN E S S C R E D IT rose at a 14.2 per cent annual rate, compared Businesses increased their short-term borrow­ with 7.9 per cent in the first quarter. Large- ing from banks and in the commercial paper denomination time deposits, including all markets during the second quarter from the negotiable and nonnegotiable large CD’s, grew already advanced pace of the three previous slightly in the second quarter after a small months. Excluding commercial bank holdings decline in the first. The increase in large time of bankers acceptances, bank loans to busi­ deposits was especially strong late in the quar­ nesses grew at a 12.5 per cent annual rate, ter; banks increased their reliance on these nearly matching the 13 per cent pace of the liabilities to support the substantial pace of first quarter. Expansion of business loans at bank credit expansion while reducing the rate large banks picked up during the quarter— of growth of funds raised through net Federal with the strength broadly distributed across funds purchases and securities sold under re­ commercial and industrial borrowers— and purchase agreements. loans made by small banks continued to grow rapidly. In response to earlier increases in C om ponents of M ajor categories of short-term open market interest rates, most bank credit bank loans banks raised the rate charged on short-term Change, billions of dollars loans to prime business borrowers in May to 63A per cent in two steps of Va of a percentage point each. Despite these increases, the spread of the prime rate over commercial paper rates narrowed slightly over the quarter. In addition to the continuing growth in bank REAL ESTATE loans to businesses, commercial paper issued OTHER SECUR■IITTIIEESS _ i by nonfinancial corporations increased $2.1 rn n billion in the second quarter, the largest sea­ TOTAL LOANS sonally adjusted quarterly gain since the sum­ mer of 1974. As a result, short-term business p gfinn.nm; credit—business loans at banks excluding 112 bank holdings of bankers acceptances plus NONBANK FINANCIAL 8 E 4 I + Business loans and short-term business credit 4 u L-I ' t— ^ ------I 0 I 0 ■ ■ ■ ■ ■ I Seasonally adjusted changes at annual percentage rates Q2 Q3 Q4 Ql Q2 Q2 Q3 Q4 Ql Q2 Business loans 1976 77 1976 77 Column 2 plus Seasonally adjusted. Total loans and business loans adjusted Period Excluding nonfinancial for transfer between banks and their holding companies, Total1 bank holdings company affiliates, subsidiaries, or foreign branches. of bankers commercial acceptances paper2 Total loans and investments at all commer­ 0) (2) (3) cial banks rose at an 11.2 per cent annual rate 1975—Ql -5.1 -6.8 -5.0 Q2 .... -8.7 -9.0 -11.2 in the second quarter, somewhat faster than in Q3 .... -3.1 -3.5 -4.0 Q4 .... .7 -3.3 -6.5 the first quarter. Bank acquisitions of taxexempt and Government agency securities 1976—Ql .... -6.7 -4.8 -2.9 Q2 .... 1.4 2.2 6.4 picked up considerably, but net purchases of Q3 .... 3.9 1.1 -1.7 Q4 .... 12.0 8.2 9.6 Treasury issues declined markedly from a high first-quarter pace. Bolstered by a near-record 1977—Ql .... 8.1 13.0 13.1 Q2 .... 11.9 12.5 15.8 increase in real estate loans as well as by rAt all commercial banks based on last-Wednesday-of-month strength in the business and consumer loan data, adjusted for outstanding amounts of loans sold to affiliates. categories, total bank loans rose at an 11.5 per 2Short-term business credit is business loans excluding bank holdings of bankers acceptances plus nonfinancial company com­ cent annual rate. mercial paper measured from end of month to end of month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q2 1977 711 Gross offerings of new security issues Private placements of bonds remained sub­ Billions of dollars, seasonally adjusted annual rates stantial, although below the record volumes of the second half of 1976, as many smaller and 1976 1977 Type of issue lower-rated firms continued to restructure Q2 | Q3 j Q4 Ql | "Q2 balance sheets. Corporate securities—total ____ 52 56 53 46 41 Public bond financing by utilities continued Bonds ................................................. 41 47 43 36 32 at a high level and accounted for more than 40 Publicly offered ........................ 27 26 26 23 19 Privately placed ........................ 14 21 17 13 13 per cent of public issues during the second Stocks .................................................. 11 9 10 10 9 quarter. Financial concerns stepped up long­ Foreign securities ............................. 13 13 9 4 13 term borrowing during the period. In addition State and local govt, bonds____ 35 36 36 43 52 to several large bank holding company issues, ‘’Estimated. a few West Coast savings and loan associa­ commercial paper—grew at a substantial 15.8 tions marketed mortgage-backed bonds to per cent annual rate in the second quarter, and support record mortgage lending, and finance at a 14.5 per cent rate for the first half of 1977. companies increased borrowing to help ac­ Moreover, finance companies appear to have commodate strong demand for auto and con­ provided considerable amounts of credit to sumer credit. Foreign bond issues in the commercial and industrial concerns— domestic capital markets also increased during primarily for purchases of autos and commer­ the quarter, as the International Bank for cial vehicles or for supporting dealer inven­ Reconstruction and Development completed a tories of these products. Net credit extensions sizable financing. to businesses by these lenders averaged $800 The light volume of total new bond issues million per month on a seasonally adjusted contributed to a decline in corporate bond basis in the first 6 months of the year, as yields during the second quarter. The Federal compared with $400 million in the last 3 Reserve index of new Aaa-rated utility bond months of 1976. yields, which had closed the first quarter at The advancing pace of short-term business 8.22 per cent, declined to 8.07 per cent at the credit expansion extended a pattern that had end of the second quarter. At this level it emerged in the final quarter of 1976. With exceeded by less than 20 basis points the capital expenditures— especially inventory 3-year low reached in early January 1977. investment—rising more rapidly than internal Stock price performance was mixed during sources of funds, nonfinancial corporations the second quarter. The New York Stock have relied more heavily on external borrow­ Exchange (NYSE) composite index showed ing in the last three quarters. Furthermore, little net movement and remained below its after a lengthy period of heavy reliance on level at the end of 1976. A drop in price of a long-term issues to restructure balance number of highly capitalized stocks that had sheets—to repay short-term debt and increase carried high price/earnings ratios accounted liquid assets—the liquidity positions of these for much of the net decline in the NYSE index corporations have apparently improved to the during the first half of 1977. In contrast, both point where they are now returning to short­ the American Stock Exchange index and the term markets to meet a larger part of their National Association of Securities Dealers external financing needs. Automated Quotations over-the-counter Reflecting, in part, these improved index—which reflect the stock price perform­ balance-sheet conditions, gross bond and ance of generally smaller corporations— equity financing by U.S. corporations de­ increased during the second quarter to their clined to a seasonally adjusted annual rate of highest levels since early 1973. New corporate $41 billion during the second quarter of stock offerings continued at the same moder­ 1977—the smallest total since the third quarter ate pace as in recent quarters. Public utilities of 1974. Much of the recent decline was in again accounted for the majority of new is­ public bond issues by industrial corporations. sues, as they have since mid-1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 Federal Reserve Bulletin □ August 1977 G O V E R N M E N T S E C U R IT IE S billion, enabling the Treasury to reduce its outstanding debt and to increase its cash bal­ In the municipal securities market, gross bond ance. The Treasury continued to pursue a issuance by State and local governments was financing policy designed to lengthen the at a record seasonally adjusted annual rate1 of maturity structure of its debt by paying down $52 billion during the second quarter. As dur­ $9.2 billion in bills while increasing outstand­ ing the preceding quarter, about 20 per cent of ing marketable notes and bonds by $5.1 bil­ this volume represented advance refundings of lion. This $4.1 billion net repayment of market­ outstanding higher-coupon issues. able obligations was offset in part by savings Despite the record volume, tax-exempt bond sales and by the issuance of nonmarket­ yields declined as new issues were readily able securities to State and local governments absorbed by property-casualty insurance engaged in advance refunding operations. At companies, commercial banks, and municipal the same time the level of Treasury debt was bond funds. The Bond Buyer index of munici­ declining during the second quarter, outstand­ pal yields closed the quarter at 5.56 per cent, ing obligations of Federally sponsored agen­ near its lowest level in 3 years. Yields on cies increased by $2.5 billion—the largest in­ higher-rated issues fell slightly over the quar­ crease since the final quarter of 1974. This rise ter, and much of the decline in the index was in net borrowing was attributable to such attributable to a general narrowing of rate housing-related agencies as the Federal Na­ spreads between higher- and lower-rated is­ tional Mortgage Association (FNMA) and the sues. Such rate spreads have declined signifi­ Federal Home Loan Bank System, which cantly since last fall as a result of the general were expanding their support of the mortgage improvement in State and local financial posi­ market. tions and recent court decisions reaffirming The Federal Reserve System was a net the rights of bondholders. purchaser of $2.1 billion in Treasury bills and With the scheduled tax rebates and as­ $1.0 billion in Treasury coupon issues in the sociated payments cancelled, a large volume course of providing reserves to the banking of tax receipts permitted the Treasury to make system during the second quarter. In addition, fewer demands on credit markets in the sec­ the Federal Reserve acquired a net $0.7 billion ond quarter. On a seasonally unadjusted basis in Federal agency obligations during the quar­ the Federal budget was in surplus by $8.6 ter. Federal Government borrowing and cash balance Quarterly totals, in billions of dollars, not seasonally adjusted 1976 1977 Item Ql Q2 Q3 Q4 Ql eQ2 Treasury financing: Budget surplus, or deficit (—) ... -22.8 2.0 -13.0 -22.8 -18.7 8.6 Off-budget deficit1 ................................ -3.7 -.6 -1.8 .4 -4.3 .1 Net cash borrowings, or repayments (-) .................................. 24.1 9.4 18.0 17.4 17.6 -1.1 Other means of financing2 ............. 2.0 -4.0 -.7 -.8 2.7 -.4 Change in cash balance ................... -.4 6.8 2.6 -5.7 -2.6 7.2 Federally sponsored credit agen­ cies, net cash borrowings3 ____ .3 .5 1.7 .4 .7 2.5 includes outlays of the Pension Benefit Guaranty Corporation, Postal Service Fund, Rural Electrification and Telephone Revolving Fund, Rural Telephone Bank, Housing for the Elderly or Handicapped Fund, and Federal Financing Bank. All data have been adjusted to reflect the return of the Export-Import Bank to the unified budget. ‘Checks issued less checks paid, accrued items, and other transactions. includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal inter­ mediate credit banks, banks for cooperatives, and Federal National Mortgage Association (including discount notes and securities guaranteed by the Government National Mortgage Association). ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q2 1977 713 MORTGAGE AND Deposits Savings and loans CONSUMER CREDIT Annual rate of change, per cent Net mortgage lending rose sharply to a record — 16 $126 billion seasonally adjusted annual rate during the second quarter, following more moderate growth during the harsh winter 8 weather of the first quarter. One- to four-family residential mortgages continued to dominate mortgage lending, accounting for more than 90 1 1. 1 I__LJ___ — o per cent of the residential component and for Q2 Q3 Q4 Ql Q2 1976________ 77 about three-fourths of total mortgage debt formation. Mortgage lending on commercial Seasonally adjusted. Quarterly averages at annual rates. properties also expanded somewhat, whereas loans secured by multifamily residential struc­ Among other major lenders, commercial tures remained relatively weak. banks supplied almost 20 per cent of total net mortgage funds during the second quarter, increasing their holdings at a record $23 billion Net change in mortgage debt outstanding seasonally adjusted annual rate. Mortgage ac­ Billions of dollars, seasonally adjusted annual rates quisitions by life insurance companies also 1976 1977 increased somewhat during the quarter— Change— reflecting primarily lending on commercial Qi| Q3 Q4 Q,||*Q2 properties—but remained well below the rec­ By type of debt: Total .......................................... 75 91 102 108 126 ord levels of 1973-74. Net mortgage acquisi­ Residential ................................ 59 71 79 85 100 tions by FNMA picked up substantially, as a Other1 ........................................ 16 20 23 23 26 rise in mortgage interest rates since March By type of holder: Commercial banks .................. 13 15 14 17 23 made the purchase price on outstanding Savings and loans.................... 43 47 52 48 57 Mutual savings banks ............ 4 4 5 4 4 4-month FNMA purchase commitments at­ Life insurance companies----- (*) 2 3 2 5 tractive to mortgage originators possessing FNMA-GNMA ...................... -6 -1 -5 (*) 8 Other2 ........................................ 21 24 33 37 29 such FNMA commitments. includes commercial and other nonresidential as well as farm Reflecting heavy credit demands in the face properties. of moderating savings flows, average interest includes net changes in mortgage-backed securities guaranteed by the Government National Mortgage Association, Federal Home rates on conventional new-home mortgages Loan Mortgage Corporation, or Farmers Home Administration, increased by about 15 basis points during the some of which may have been purchased by the institutions shown separately. second quarter to 9.00 per cent at the end of pEstimated. June. However, secondary market yields on ♦Less than $500 million. Government National Mortgage Association Savings and loan associations again ac­ counted for almost one-half of total net Net change in mortgage lending in the second quarter, as consumer instalment debt outstanding they increased their mortgage holdings by a Billions of dollars, seasonally adjusted annual rates record amount. At the same time, deposits at 1976 1977 these institutions grew at a 12.3 per cent Change annual rate—the slowest rate of expansion Q2 Q3 Q4 Ql *Q2 since 1974. In order to meet the heavy demand By type of debit: Total 21 19 24 27 31 for home loans, savings and loan associations Automobile 11 9 10 12 14 Other 10 10 14 15 17 curtailed their acquisition of liquid assets and By type of holder: borrowed moderately from home loan banks Commercial banks 11 10 12 12 14 Finance companies 2 2 3 6 6 and other sources. Nevertheless, aggregate Credit unions 6 5 5 7 7 Retail firms 1 1 2 1 2 liquidity ratios at insured associations re­ Other 1 1 1 1 1 mained at historically high levels. Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 Federal Reserve Bulletin □ August 1977 (GNMA)-guaranteed, mortgage-backed se­ Consumer instalment credit outstanding is curities—which had risen by 50 basis points estimated to have expanded at a record sea­ during the first quarter—eased slightly during sonally adjusted annual rate of $31 billion the second quarter, ending the period at 7.90 during the second quarter. Automobile credit per cent. In response to the earlier increase in continued to account for more than 40 per cent yields on Government-underwritten mort­ of the total net increase, as a high level of auto gages in the secondary market, the ceiling sales paced the over-all strength in secondrate on mortgages insured by the Federal quarter consumer spending. The recent trend Housing Administration or guaranteed by the toward longer maturities on new auto loans Veterans Administration was raised by ad­ continued, with lenders offering manageable ministrative action from 8 to SV2 per cent, monthly payment schedules in the face of effective May 31. higher auto prices. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

715 Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the Fed­ forth are those of the authors and do not neces­ eral Reserve Banks undertake studies that cover sarily indicate concurrence by the Board of a wide range of economic and financial sub­ Governors, by the Federal Reserve Banks, or jects, and other staff members prepare papers by the members of their staffs. related to such subjects. In some instances the Single copies of the full text of each of the Federal Reserve System finances similar studies studies or papers summarized in the Bulletin by members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the economics profes­ back of each Bulletin includes a separate sion and to others are summarized—or they may section entitled “Staff Economic Studies" that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve Bulletin. currently available in that form. STUDY SUMMARY THE PERFORMANCE OF BANK HOLDING COMPANY-AFFILIATED FINANCE COMPANIES Stephen A. Rhoades—Staff, Board of Governors , and Gregory E. Boczar—Formerly on the Staff, Board of Governors Prepared as a staff paper in 1976 Bank holding companies have been permitted finance industry. This study analyzes a sample to enter into various nonbanking activities of bank holding company-affiliated and inde­ since the passage of the 1970 amendments to pendent consumer finance companies to de­ the Bank Holding Company Act. In justifying termine whether there are significant differ­ their entry into these activities, particularly ences in performance between the two groups. through merger, bank holding companies typi­ Detailed data from Warburg, Paribus, Becker, cally claim that such entry will yield a variety Inc., for groups of affiliated and independent of public benefits—increased growth, better companies were used to construct a multipleperformance, and so forth—because of the regression model for testing purposes. Al­ large size of the bank holding companies and though detailed data were obtained, two im­ superior management. portant shortcomings should be noted—a lim­ One of the most popular activities entered in­ ited sample and the fact that there is only one to by bank holding companies is the consumer year of post-affiliation data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 Federal Reserve Bulletin □ August 1977 Results indicate that prior to their affilia­ filiated companies, subsequent to affiliation, tion, the affiliated companies performed no did not have lower losses, did not open more differently from the independent companies in offices, and did not have lower operating terms of performance and financial soundness. expenses than independent companies. Sub­ After affiliation, however, the affiliated com­ ject to the caveats noted above, it is concluded panies were found to have higher interest and that this study generally does not confirm the debt expense, lower profits, greater leverage, arguments of bank holding companies that and higher growth than the independent com­ their entry into the consumer finance industry panies. Moreover, it was determined that af­ will yield numerous public benefits. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

717 Statements to Congress Statement by Arthur F. Burns, Chairman, is Section 1 of the bill. The objective of Board of Governors of the Federal Reserve monetary policy set forth in this section— System, before the Committee on Banking, namely, that it “shall be governed by the Finance and Urban Affairs, U.S. House of national policy to promote maximum em­ Representatives, July 26, 1977. ployment, production, and price stability”—is consistent with the Board’s understanding of I am pleased to have the opportunity to pre­ the intent of the Congress, and it also reflects sent the views of the Board of Governors on the actual practice of the Board and of the H.R. 8094, the “Federal Reserve Reform Act Federal Open Market Committee (FOMC). In of 1977.” The stated purpose of this bill is “to the Board’s judgment this would be an appro­ promote the accountability of the Federal Re­ priate addition to the Federal Reserve Act. It serve System.” is a clearer statement of national policy than is Let me say at the outset that the Board fully contained in the Employment Act of 1946, recognizes its accountability to the Congress which uses the term “purchasing power” for its performance of the duties the Congress rather than “price stability.” has given it. My colleagues and I appear On the other hand, the Board is disturbed by frequently before this committee and other the bill’s language relating to hearings on committees of the House and the Senate to monetary policy, which differs in several report to you and to answer for our actions. major respects from that of the concurrent We have participated earnestly in the quar­ resolution it would replace. The concurrent terly dialogue on monetary policy initiated resolution was the carefully framed product of under House Concurrent Resolution 133 of the extended discussions between the Banking 94th Congress. I am scheduled, as you know, Committees and the Board. It has been thor­ to appear before this committee on Friday to oughly tested in the course of the nine hear­ continue that dialogue. Last year the Board ings held under its provisions over the past 2 recommended that the House and Senate years. We know of no good reason for revising Banking Committees evaluate our perform­ it; indeed, some of the proposed revisions, if ance as bank supervisors through periodic enacted, would be inimical to the orderly oversight hearings on the condition of the functioning of financial markets. banking system, and the first such hearing was The provision calling for projections of held by the Senate Banking Committee this interest rate levels for 12 months ahead is March. particularly ill advised. Neither the Board nor In April we advanced the dialogue further by the FOMC makes such estimates. To be sure, presenting testimony on the budget of the some, if not all, members have more or less Federal Reserve System before the same com­ well-defined expectations about the likely mittee. I believe that through proceedings such course of rates in coming months, but mem­ as these we are evolving an effective means bers of the Board and of the FOMC do not by which the Congress can fulfill its oversight discuss such expectations in public. Federal responsibilities with respect to the Federal Reserve officials are extremely careful to Reserve while respecting the basic principle of avoid any public comment that might suggest an independent central bank. or imply some particular outlook for interest The most significant provision of H.R. 8094 rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 Federal Reserve Bulletin □ August 1977 The reason for reticence on this subject which should never become the prisoner of should be obvious. While the Federal Reserve some preconceived number. cannot determine market interest rates, it cer­ Conceivably, in response to a congressional tainly can influence them—particularly in the mandate, the FOMC could vote on some nu­ short run. Participants in financial markets merical figure for monetary velocity. But any know this, and they have strong incentives to such exercise is not necessary for effective make use of any clues they can get to the policy formulation; if undertaken, it would System’s intentions. If, for example, bond­ divert members of the FOMC from basic holders conclude from a remark by a System analysis in which they have some competence official that rates will be rising in the future, to a numerical guessing exercise; the end they may deem it advantageous to sell their result would be artificial at best and would be holdings immediately—and that may cause grossly misleading at worst. rates to rise prematurely. It may also cause Finally, I must advise this committee that rates to move up unnecessarily if the view of the Board seriously questions the provision the System official was not well founded but calling for quarterly reports on the “proposed nevertheless was taken seriously. composition of the Federal Reserve’s But if the casual comments of a Federal portfolio” 12 months ahead. In the first place, Reserve official can affect market interest such reports could influence current interest rates, public reports each quarter on the inter­ rates as market participants drew inferences est rate expectations of the Board or of the about Federal Reserve purchases or sales in FOMC could rock financial markets. The ex­ different sectors of the market. Second, such pectations voiced by the Board at a quarterly reports could prove highly misleading. In view hearing might change a week or a month later, of the uncertainties about future conditions in and in any event might be mistaken. If we securities markets, numerical projections of made specific pronouncements about the fu­ likely changes in the portfolio during the com­ ture of interest rates, many traders would no ing 12 months cannot be made with much doubt tend to respond promptly. Inappropri­ confidence. ate as well as violent changes of interest rates Of course, the FOMC could always instruct could take place, and the economy could the Manager of the System Open Market Ac­ suffer from the financial instability so gener­ count to make its guesses come true, or ated. The capacity for mischief inherent in the perhaps to reduce particularly large misses, interest rate provision is so apparent that I find whether or not the open market operations its inclusion in the bill inexplicable. required were consistent with the needs of the The provision calling for quarterly tes­ Nation. I very much doubt that the Congress timony on monetary velocity 12 months ahead will want to force the Federal Reserve into is questionable for other reasons. Particular that kind of predicament. considerations—often of a sort that defy These observations on the deficiencies of quantification—weigh heavily in the thinking Section 1 of this bill suffice, I hope, to show of most, if not all, members of the FOMC. In why the Board recommends that the language the nine hearings held thus far under House providing for quarterly hearings on the con­ Concurrent Resolution 133,1 have tried to set duct of monetary policy follow much more forth the reasons underlying the Federal Re­ closely the carefully framed and thoroughly serve’s policy decisions. In fact, I have often tested language of House Concurrent Resolu­ commented in general terms on expectations tion 133. for velocity, speaking for the FOMC or the Section 2 of the present bill would prohibit Board when that was appropriate and for discrimination and broaden the list of interests myself when it was not. But in so doing, I have to be considered in the selection of directors of consistently emphasized the sensitivity and the Reserve Banks. We are in sympathy with flexibility of monetary policy, which can the concerns underlying this provision and we change by the month or even by the hour, and support it. As I stated last year, the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 719 Reserve is fully committed to the principle of by specifying that Class B directors are to be equal employment opportunity, and we have selected by the Board. Such an amendment made vigorous efforts over the years to em­ would have the added benefit of putting to rest ploy and promote qualified women and minor­ the mischievous fiction that the member banks ity group members to the staffs of the Board control the Federal Reserve by virtue of their and of the Reserve Banks. Moreover, we have ability to elect six of the nine directors of each recently increased our emphasis on the ap­ Reserve Bank. pointment of such persons to the Boards of Section 3 of the bill provides for Senate Directors of the Reserve Banks. While we confirmation of the person appointed by the have achieved some success, we recognize President as Chairman of the Board. As I re­ that it has not been sufficient. Last year I cently testified before the Subcommittee on advised you that the System had six women Domestic Monetary Affairs, we have no objec­ serving as members of Reserve Bank branch tion to this provision. boards. For 1977, this figure has increased to The Board has serious problems with the 17 women directors, 4 on head office boards provisions of Section 4 relating to so-called and 13 on branch boards. This year our minor­ “lobbying communications” with regulated in­ ity directors have increased from 13 to 16, stitutions. Unlike the existing provisions of law including 3 who serve on the boards of head relating to lobbying by Government officials, offices. We appreciate Chairman Reuss’s con­ which make it a crime to use appropriated tinuing interest in this matter, and I assure the funds for such purposes, H.R. 8094 would committee that we intend to continue our enact a direct prohibition against communica­ efforts to enlarge the representation of women tion by any Federal Reserve official with any and members of minority groups on the boards institution regulated by the Federal Reserve of the Reserve Banks. “to influence legislative actions affecting the Another change in the provisions of Section Federal Reserve System.” 2 relating to directors would expand the The Board seriously doubts whether such a categories of individuals to be considered in prohibition is consistent with the first amend­ the selection of Class B and C directors. The ment to the Constitution, which commands Board endorses this proposed broadening in that the Congress shall make no law abridging the representation of the public on Reserve freedom of speech. Moreover, this provision of Bank boards. Indeed, in connection with the the bill is so broadly worded that it could have a FINE (Financial Institutions and the Nation’s chilling effect on perfectly innocent communi­ Economy) Discussion Principles we recom­ cations that, besides being constitutionally pro­ mended that consideration be given to ap­ tected, are not intended to be included within pointment of Class B directors by the Board the scope of this bill. Just what legislation, for rather than their election by member banks. example, would be excluded from the bill’s We continue to hope that the committee will reference to “legislative actions affecting the consider whether its objectives in this section Federal Reserve System”? How explicit must of the bill may not be better achieved by provid­ the intention be to “influence” such actions? ing for Board appointment of Class B directors. Need the Federal Reserve official urge bankers As the bill stands, both Class A and Class B to write their Congressmen in order to violate directors would still be elected by member such a prohibition? Are we prevented from banks, in accordance with the nomination and informing banks about changes that the Federal balloting procedures set forth in Section 4 of Reserve is proposing in the laws that govern the Federal Reserve Act. Under these proce­ banking? Would we violate the law if a banker dures it is difficult to see how the bill’s antidis­ decided on his own to write his Congressman crimination provisions can be enforced in elec­ after listening to our description or analysis of a tions in which literally thousands of member pending bill? Indeed, may not this provision be banks will be voting on a large number of violated whether or not the banker who re­ nominees. This difficulty could be overcome ceived a communication from the Federal Re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 Federal Reserve Bulletin □ August 1977 serve subsequently communicated with his lation. One who entertains such a fear must be congressional representative? With such un­ assuming that men and women who work in certainties the inevitable effect would be to regulated businesses would let themselves be inhibit Federal Reserve officials from discus­ used by unscrupulous regulators to express sing any proposed or pending legislation in a views that may not be their own. I see little public forum—particularly if bankers were basis for any such cynicism about bankers or present. I cannot believe that the Congress their regulators, or—for that matter—about the would want to limit so severely the ability of ability of Congressmen to protect themselves Federal Reserve officials to discuss legislative against misleading rhetoric of their con­ ideas or that it would want to create such stituents. impediments to the free flow of information or We live in disturbed times, and if the Con­ opinion to the Congress itself. gress should consider Section 4 a proper sub­ Moreover, since three members of the board ject for new legislation, I still see no basis for of directors of each Reserve Bank are bankers, singling out for special treatment the Federal as provided by law, the bill could even be Reserve—an institution whose integrity should construed to prevent any discussion of pending not be so lightly questioned. I cannot deny a legislation at Reserve Bank board meetings. In theoretical possibility of misconduct in the fu­ fact, since Federal Reserve Banks could them­ ture; and if the Congress believes it appropriate selves be considered institutions “subject to to address the issue, it should do so in the broad the regulatory authority” of the Board of Gov­ context of all Federal regulatory agencies—not ernors, the bill might be read to prohibit com­ excluding Cabinet departments. munication between the Board and the Federal Finally, Section 5 of the bill would add Reserve Banks about such proposed legisla­ “Federal Reserve Bank director, officer, or tion. Similarly, the bill could be interpreted to employee” to the list of individuals covered by prohibit the Board from discussing legislative the conflict-of-interest prohibitions of Section matters with the Federal Advisory Council, a 208 of the Criminal Code. This section of the body composed of bankers that was created by code prohibits any covered employee or offi­ the Federal Reserve Act for the express pur­ cial from participating personally and substan­ pose of counselling with the Board on matters tially in any matter in which he, or certain affecting the System. Again, I cannot believe persons or entities related to him, has a finan­ such results could be intended. cial interest unless he first makes a full disclo­ The officers and directors of the Reserve sure to the official who appointed him and Banks, as well as members of the Federal Ad­ receives appropriate clearance in advance. visory Council, are appointed under law. The In principle we have no objection to this Board has a responsibility to keep these indi­ proposal. The Board of Governors has since viduals informed on legislative issues, and they the inception of the Federal Reserve System naturally share our concern for legislation that recognized the need to assure that the highest may have an impact upon the System. Their standards of personal integrity are observed, interest in these matters exists quite apart from not only by Board officials and employees but the positions that some of them hold in private also by all those associated with the System. As business institutions. Neither Government early as 1919, the Board stated that: service nor election to a Reserve Bank di­ it has always entertained the view that no rectorate should require an individual to forfeit director or officer of a Federal Reserve bank those rights of expression and petition that are should permit his connection with the bank to generally guaranteed by the first amendment. be used in furthering his private business or the interest of any corporation with which he We appreciate that Section 4 of the bill is may be associated. intended to protect against the possibility that regulated institutions, hoping to curry favor The Board has requested the Reserve Banks to with their regulator, may be induced to pro­ distribute to their directors, officers, and em­ mote the regulator’s interest in particular legis­ ployees the Code of Ethics for Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 721 Service, and it has asked each Reserve Bank to duct—even to remove officers and direc­ adopt rules on employee responsibilities and tors—if any such thing should occur. In conduct comparable to those adopted by the light of this, and particularly if the Board of Board itself in furtherance of Executive Order Governors appointed three additional public 11222. These rules constitute a broad prohibi­ representatives, it is very doubtful that Section tion of conflicts of interest. 5 of the present bill is at all necessary. Not only While we thus concur with the principle un­ that, there is at least the possibility that specific derlying this proposal, we are disturbed by its reference to directors under the Criminal Code discriminatory nature. I believe that there are would diminish the ability of the Federal Re­ many positions comparable to those of Reserve serve Banks to attract highly qualified citizens Bank directors that are not now covered by to their directorates. Section 208 of the Criminal Code. The di­ We urge the committee to move very cauti­ rectorates of the Federal home loan banks is ously on Section 5, not only for the above the example that comes to mind most readily. If reasons but also because of what appears to be the Congress is to consider extending the crim­ a technical flaw in drafting. Subsection (b)(1) of inal penalties for conflicts of interest, it seems Section 208 of the Criminal Code provides that highly inappropriate to do so by singling out the Government official responsible for the one group as a special target and to do so appointment of another person covered by the without benefit of some deeper study of the code may permit that person to participate in a proposal. particular matter where the person’s interest in If such a study were undertaken, considera­ the matter is not substantial. It so happens, tion would need to be given to the unique status however, that the Reserve Bank directors in of Reserve Bank directors in the structure of Classes A and B are elected by member banks, the Federal Reserve System. The Federal Re­ so there is no appointing official in their case. serve Act provides for a balancing of economic The obvious, but perhaps unintended, dis­ interests on Reserve Bank boards—lenders, crimination against those directors should be borrowers, and public representatives. Di­ noted by the committee. rectors are required by the act and by their oath In summary, the Board supports enactment of office to administer the affairs of the Bank of several provisions of this bill. We believe, “fairly and impartially and without discrimina­ however, that the objectives of the quarterly tion.” The legislative history of the act indi­ hearings on monetary policy can be best cates clearly that the Congress viewed Class C achieved by retaining the tested language of directors as having a responsibility, as “repre­ House Concurrent Resolution 133. We urge the sentatives of the United States,” to insure that committee to drop the provision of the bill this requirement of impartiality was carried relating to “lobbying” because it is unjustifi­ out. ably broad and of doubtful constitutionality. The Federal Reserve System has been un­ And we also urge the committee to study very touched by conflict-of-interest scandals in its carefully the implications of amending the 64 years of existence, and we certainly have Criminal Code before taking any serious legis­ the power to deal effectively with miscon­ lative move in such a direction. □ Statement by Arthur F. Burns, Chairman, I am pleased to appear before this committee Board of Governors of the Federal Reserve once again to present the report of the Board of System, before the Committee on Banking, Governors of the Federal Reserve System on Finance and Urban Affairs, U.S. House of the condition of the national economy and the Representatives, July 29, 1977. course of monetary policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 Federal Reserve Bulletin □ August 1977 Since the closing months of 1976, our Nation stocks in certain categories of nondurable has experienced a vigorous and broadly based goods reached somewhat higher levels than economic expansion. The gains in the indus­ businessmen desired. The latest data on em­ trial sector have been especially impressive; ployment and production in manufacturing during the past 8 months, the combined output suggest that business firms have again moved of factories, mines, and power plants has risen promptly to reverse the build-up. With inven­ at an annual rate of 9Vi per cent. Activity in tory positions generally still lean and sales other sectors of the economy also has in­ prospects favorable, inventory investment is creased briskly. As a result, total employment likely to contribute to economic expansion in June was almost 3 million higher than last later in the year and on into 1978. October—an unprecedented gain in so short a The upward trend of sales and of capacity period. The unemployment rate remains high; utilization has encouraged businessmen to en­ but it has declined in recent months by nearly a large their outlays for plant and equipment. full percentage point, despite rapid growth of There are some signs that business capital the labor force. The rate of utilization of our spending may finally be gaining significant up­ industrial plant capacity also has risen signifi­ ward momentum. Order backlogs of capital cantly and now exceeds 83 per cent in manufac­ goods manufacturers have been climbing. Busi­ turing. ness equipment posted the largest advance of Demand for consumer goods has continued any major category of industrial production to propel the expansion. With confidence during the first half. New contracts and orders buoyed by improving economic conditions, for plant and equipment most recently have consumers have been spending freely from cur­ been running more than 20 per cent above rent income besides adding significantly to year-earlier levels. To date, business capital their personal indebtedness. The strong buying expenditures have been concentrated largely mood of consumers is reflected in the personal on vehicles and other light equipment, but saving rate, which in the first half of this year there is some tentative evidence that large con­ averaged less than at any time since the early struction projects and heavy machinery are 1960’s. beginning to make a contribution to the capital Retail sales climbed steeply during the fall goods recovery. All told, the evidence at hand and winter months and remained at a high level points to moderate strength in spending on this spring. Over the past three quarters, retail plant and equipment in the months ahead. sales, after adjustment for price increases, Residential construction meanwhile has re­ have risen at an annual rate of about 6 per cent. mained a major area of strength in the econ­ Auto sales contributed greatly to the advance, omy. Sales of homes have been brisk, and the averaging—on a seasonally adjusted basis— average level of single-family housing starts in almost 1 million cars per month since March. the second quarter was the highest in more than The rise of consumer spending played a two decades. The multifamily sector has con­ major role in prompting a resurgence of inven­ tinued to recover slowly, but the low vacancy tory investment early this year. A moderate rates in many localities are likely to stimulate inventory correction in the latter part of 1976 additional construction. In certain parts of the had reduced the ratio of stocks to sales to country, especially in California, speculative exceptionally low levels in many lines of trade activity in the single-family sector has recently and manufacturing. Once sales again acceler­ emerged and this development bears watching. ated, businessmen had to rebuild their inven­ In general, however, the expansion of tories in order to meet customer demands. The homebuilding seems to be realistically attuned annual rate of additions to business inventories to the Nation’s mobile population. In the reached $14 billion in the first quarter of this Board’s judgment, residential construction will year and perhaps $20 billion in the quarter just post further gains in coming quarters. ended. Governmental spending has picked up re­ In the past 2 months or so, it appears that cently, most markedly in the State and local Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 723 sector. The budgetary position of many State familiar cyclical patterns have begun to emerge and local governments has improved con­ since the turn of the year. siderably, being bolstered by Federal grants, Borrowing by households has been growing by higher tax rates, and by the effects of eco­ very rapidly. Instalment credit has expanded at nomic expansion on tax revenues. State and a 16 per cent annual rate thus far this year. local units have been able to expand employ­ Measured relative to disposable personal in­ ment more rapidly of late, although growth has come, growth of instalment credit has reached not been as strong as in the 1960’s and early a pace comparable to past peak rates. 1970’s. Their construction programs, delayed Mortgage credit flows have been of record in many cases as governmental units concen­ magnitude. Mortgage credit has, in fact, grown trated on rebuilding their financial position, are much faster than could be expected on the basis moving ahead again and should provide signifi­ of past relationships between borrowing and cant impetus to economic activity in coming residential construction, thus suggesting that quarters. households have been putting mortgage funds The only major weak spot in the economy to a broad variety of uses. has been the foreign trade sector. Exports have Despite the rapid growth of consumer and been sluggish this year, being limited by the mortgage credit, measures of household debt relatively slow economic expansion in other burden generally remain within the range of industrial nations. Most of these countries have historical experience. Moreover, delinquency experienced indecisive rebounds in business and bankruptcy rates have declined signifi­ investment, and this has restricted the demand cantly from their recession highs. At this for American machinery—an important part of juncture, debt burdens do not appear to consti­ our sales abroad. tute a serious impediment to further gains in Cyclical developments have also played a household expenditures; but we must not over­ large role on the import side of the trade ledger. look the possibility of excesses in this area. In general, the demand for imported industrial Business firms also have placed heavy de­ materials has increased in step with the recent mands on credit markets this year. Their over­ rapid growth of production in this country. all need for external financing has grown be­ Imports of cyclically sensitive durable cause capital outlays have risen much faster goods—such as machinery, autos, and other than profits. The net funds raised by nonfinan­ consumer items—are also reflecting recent cial corporations increased by about 30 per economic trends. And needless to say, oil im­ cent between the second half of 1976 and the ports have risen enormously this year, swelled first half of this year. first by cold weather and then by inventory The character of business borrowing has also building in anticipation of price increases by shifted considerably. Until the latter part of the Organization of Petroleum Exporting 1976, business firms concentrated on repay­ Countries (OPEC). ment of short-term debt with the proceeds of Continuing advances in investment income long-term borrowing. Since last fall, long-term and other nontrade items have partly offset the indebtedness has continued to grow, but not deficit in our foreign trade; even so, the nearly so rapidly as short- and intermediatecurrent-account deficit has reached record term borrowing. Bank loans to businesses have size. Oil imports should experience some de­ increased at an annual rate of 11 per cent since cline later this year, aided by the availability of last September, and commercial paper and fi­ Alaskan oil. But prevailing trends in economic nance company loans have increased even activity here and abroad suggest little likeli­ faster. hood of significant near-term reduction in our These developments have caused liquidity foreign trade or current-account deficits. ratios of corporate balance sheets to decline In general, financial developments have fa­ somewhat—a normal cyclical development, al­ vored economic expansion in our country, and though delayed in this case. Still, the state of they are continuing to do so. However, some corporate liquidity remains relatively comfort­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 Federal Reserve Bulletin □ August 1977 able because of the extensive improvement especially sensitive to inflationary expecta­ achieved during the preceding 2 years. tions. It is well, therefore, to take note of the Credit demands by State and local govern­ fact that interest rates on corporate and munic­ mental units have been very large this year. ipal bonds, instead of following the recent rise About a fifth of the record bond offerings has in short-term rates, remained fairly stable and been devoted to advance refunding of debt are actually a little lower now than they were in issues that were sold in earlier years when April. interest rates were appreciably higher. The re­ These developments in credit markets are, I mainder has included substantial amounts to believe, attributable in significant part to public finance construction of public power plants, confidence in the Federal Reserve’s monetary hospitals, and water and sewer facilities. policy. It is noteworthy that, in general, inter­ Federal Government borrowing, in contrast, est rates still remain below levels prevailing at has declined from last year—a development the beginning of the economic recovery. which, among other things, reflects the re­ During the past half year, the Federal Re­ covery of Treasury revenues and an expendi­ serve has managed to keep the growth of the ture pattern still characterized by shortfalls. major monetary aggregates on a moderate However, both the administration’s projection path. Af-1—which consists of currency and and the first concurrent resolution indicate that checking accounts at commercial banks— the deficit for fiscal year 1978 will substantially increased at an annual rate of 6.4 per cent. This exceed that for the current year. If actually is a faster rate of growth than occurred last realized, this would be an unusual develop­ year, and it reflects the very intense demand for ment. Normally, of course, Federal borrowing transactions balances in recent months. diminishes in the course of an economic expan­ Growth of the broader aggregates, on the other sion. In view of the probable need to finance an hand, has been slower than last year—a decel­ increasing volume of private capital formation, eration due partly to the low personal saving the prospect of greater demands for funds by rate that has evolved and partly to some modest the Federal Government in the next fiscal year redirection of savings flows away from deposit has been a cause of some disquietude in finan­ accounts and into market securities as short­ cial circles. term interest rates have risen. Despite the The strong demands for money and credit moderate slowing of the broader monetary that have accompanied our economic expan­ aggregates, financial institutions—both com­ sion have been reflected in a rise in short-term mercial banks and the thrift institutions— interest rates since the turn of the year. The remain relatively liquid and in a good position Federal Reserve might have accommodated to continue supporting economic expansion. credit demands by providing bank reserves During the next few quarters, it is improba­ more liberally. However, such a course would ble that over-all economic growth will proceed only have postponed briefly the rise in interest as rapidly as it did during the past 6 months. rates because the resulting build-up of liquidity Typically, bursts of consumer spending of the would have intensified inflationary expecta­ kind witnessed this year are followed by phases tions. By responding promptly to the enormous of moderation. Such moderation, indeed, expansion of the monetary aggregates in April, seems to be signaled by recent data on retail the Federal Reserve gave clear notice that it sales. Nor, of course, is it to be expected that was alert to the danger of a new wave of infla­ inventory investment will be adding as much to tion. This reassurance to the business and fi­ economic expansion as it did in preceding quar­ nancial community that the Federal Reserve ters. And in view of the high rate of single­ would not permit the money supply to run riot family housing starts already attained, it is was well received by credit markets. Long­ likely that housing will contribute less to term interest rates, of course, are of much growth. larger significance to the economy than short­ These probable developments, however, do term rates; but the long-term rates are also not portend an end to general economic expan­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 725 sion. We at the Board anticipate continuing female labor force would have been lower by growth—albeit at less rapid rates—in con­ 1 Vi million this June. What we are witnessing, sumption, inventory investment, and literally, is a revolution in the role of women in homebuilding. We think, moreover, that in­ our society, and we need to focus on the eco­ vestment activity by business firms will main­ nomic implications of this phenomenon more tain a good growth pace and perhaps accelerate carefully than we have. as businessmen are confronted, as they may Obviously, the fact that the labor market has well be, by reduced capacity margins next had to absorb the “extra” influx of female job year. Meanwhile, as I noted earlier, there is seekers is a major reason why the Nation’s reason to expect that the pace of State and local over-all unemployment rate has not moved government spending will continue to quicken. downward more decisively. The rapid influx of What these various trends suggest is a change women into the labor force takes on particular in the character of the expansion—with the significance because it happens to reinforce over-all growth rate slowing but still high another demographic factor that also is taxing enough to produce some further reductions in the absorptive capabilities of the labor market. unemployment. I refer to the continuing large additions of The fact that the Nation’s unemployment young people to the labor force—a reflection of rate remains high by historical standards is a the high birth rates of the 1950’s. source of continuing concern. If we as a people Both adult women and young people tend to are to address this problem effectively, our first experience unemployment rates above aver­ task is to understand the special factors that age. Many have never held a regular job before. make it so difficult now to achieve rapid reduc­ Others left the work force years earlier on tions in joblessness. account of marriage or the arrival of children. The stickiness of the unemployment rate, it Whatever the state of the labor market, a deci­ needs to be appreciated, does not reflect un­ sion to enter or re-enter the labor force often usual slowness in the opening up of new job involves a fairly extended period of job opportunities during the current expansion. On hunting—frequently prolonged by lack of the contrary, the growth of jobs since the re­ knowledge about available job opportunities. cession trough in March 1975—some 6V2 For married women—especially those with million—has been more rapid than during the young children—the desired job is often part comparable phase of any cyclical recovery time and close to home, so finding the right since World War II. It happens, however, that position may take quite a lot of time. For young the rate of increase in the labor force also has people, early work experience frequently in­ been unprecedentedly rapid in the course of volves various job shifts—and sometimes sev­ this expansion—amounting to more than 5Vi eral periods of unemployment—until a job con­ million persons. Consequently, despite the sidered appropriate is found. huge rise that has occurred in employment, the Because of the decline in birth rates that reduction in over-all unemployment has been started in the early 1960’s, growth in the modest. younger-age component of the labor force can The single most important reason for the fast be expected to taper off in the next few years. pace of labor force growth has been a veritable But no sign of tapering is as yet visible in the rush of adult women into the job market. In­ labor force participation by adult women. A deed, of the increase of 5.6 million that has decided slowing of the inflation rate—if that occurred in the labor force since the recession were to occur—might check the rise in female trough, 2.4 million—or more than 40 per labor force participation, since some women cent—is accounted for by women of age 25 or clearly have taken jobs in order to offset the over. Strikingly, if the percentage of this adult effects of inflation on household budgets. female population in the labor force had been However, social trends seem to be of greater the same in June 1977 as it was in March 1975, significance in conditioning the movement of when economic recovery started, the adult women into the labor force. Attitudes toward Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 Federal Reserve Bulletin □ August 1977 childbearing and childrearing and toward edu­ Unless recognition of that need conditions the cational and career aspirations of women have evolution of policies in such major areas as been undergoing dramatic changes in our soci­ energy, taxes, social security, welfare, and ety, and it cannot be foretold when this process governmental regulation, there will be small will wane. hope of maximizing job opportunities in the Thus rapid labor force growth may persist, next several years. thereby continuing to make it difficult to reduce We need an environment that is decidedly the over-all unemployment rate to levels that more conducive to business risk-taking than were once considered reasonably consistent that which has prevailed in recent years. In my with the goal of full employment. Indeed, the judgment, we are very much in danger of changed age-sex composition of the labor forgetting that ours is basically an enterprise force—now weighted more than formerly to­ economy whose vitality depends on whether ward groups that tend to have higher-than- business firms are able to earn an adequate rate average unemployment rates—probably has of return on invested capital. Despite the in­ imparted an upward tilt to over-all unemploy­ creasing role of government in economic ac­ ment of about 1 percentage point compared tivities, profits are still the essential driving with 20 years ago. force of our economic system. Economic dis­ In time, of course, as women gain experience cussions nowadays deal extensively with the in the labor market and as businesses adapt effects of monetary and fiscal policies on eco­ their operations so as to employ women more nomic activity; but they do not focus frequently effectively, the upward bias should lessen. One enough on the even more important matter of of our prime policy objectives certainly should whether private businesses—which dominate be to facilitate the assimilation of adult women job creation in our system—have adequate in­ and young people into the active work force. centive to expand their operations or to under­ That is not likely to be accomplished by actions take new ventures. Our citizenry may pay that rely simply on boosting aggregate mone­ dearly if this myopia persists. tary demand. Such actions would tend to ac­ It also is important to rethink some of our centuate inflationary pressures in the economy national policies with respect to the market for without doing a great deal to facilitate the de­ jobs. One of the most critical needs is to avoid sired assimilation. In fact, the need to protect governmental actions that compound the prob­ family incomes against the ravages of inflation lems that newcomers to the job market already may cause even more women and young people have. New entrants—whether young people or to enter the labor force. We therefore need to adult women—often cannot be highly produc­ recognize very clearly that accommodation of tive in the initial phase of their employment. significant changes in the labor market requires Minimum wage legislation is blind to that fact, policies that are specifically tailored to the and thus limits employment opportunities for elimination of structural hindrances to full em­ job seekers with little or no recent work experi­ ployment. ence. With young people and other newcomers Even before the sharp acceleration of growth to the labor force now accounting for a dispro­ in the entry of women into the labor force, there portionate share of the unemployed, this is was reason to be concerned that reasonably full hardly an opportune time for the Congress to use of our commercial and industrial capacity contemplate a boost in the minimum wage that might be reached before we began approaching goes well beyond the President’s original rec­ full employment of our labor force. That con­ ommendation. cern, arising from the laggard behavior of capi­ Statutory changes in minimum wages affect tal formation, is now greater because of the not only the lower end of the wage spectrum. In unexpected rapidity with which the labor force practice, they tend to have a leveraging effect is expanding. The inference seems inescapable on the general wage structure as various tiers of that we need governmental policies that offer workers seek to maintain the differential be­ decisive encouragement to capital formation. tween their wage and that of lower-paid work­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 727 ers. Such a development would reinforce the encing much greater inflation than the United upward pressure on wages that already derives States is a reminder that market psychology from the continuing advance of consumer has a way of magnifying or distorting for a prices, from tight labor markets here and there, time underlying trends. A sound dollar is and from large and well-publicized collective essential to our economic future, and every­ bargaining settlements in some industries. one with major financial responsibility in our Labor costs per unit of output in the private Government is keenly aware of that. business sector rose by 5.4 per cent in the year We at the Federal Reserve have persistently ending in March. This increase reflects the sought to protect the integrity of the dollar and difference between an average increase in at the same time to foster further economic labor compensation per hour of about 8 per expansion. The members of the Federal Open cent and an average increase of IVz per cent in Market Committee, when they met earlier this output per hour. Since we are now in a phase month to discuss the longer-run growth of the of the business cycle when productivity gains monetary aggregates, carefully considered in­ are more likely to slow than to accelerate, the ternational as well as domestic developments. upward pressures on wages may lead to still The Committee decided to leave unchanged stronger pressures on unit labor costs. Many for the year ending in the second quarter of businesses—not always justifiably—already 1978 the previously projected growth ranges of feel a need to recoup labor cost increases or to the broader monetary aggregates. Af-2 thus is increase profit margins. To the extent that projected to grow within a range from 7 to 9Vi they succeed in raising their selling prices, the per cent during the next year, andM-3 within a inflation rate will tend to worsen and so too range from 8Vi to 11 per cent. An adjustment, will inflationary expectations. To the extent however, was made in the growth range for that they fail, profit margins may narrow—a Af-1; the lower boundary of this range was development that would diminish the likeli­ dropped by one-half of a percentage point, so hood of sustained expansion of capital invest­ this aggregate is projected to increase within a ment. range from 4 per cent to 6Vi per cent in the The need to concern ourselves with impend­ year ahead. ing cost distortions and inflationary trends is The adjustment in the projected growth evident from the price record of the first half range forM-1, while small, represents another of this year. That record, to be sure, was step toward bringing the long-run growth of the influenced by some transitory forces, and monetary aggregates down to rates compatible there has been some diminution in the rate of with general price stability. Sustained prog­ inflation lately. Even so, the rate of inflation ress in this direction is essential if the adminis­ this year is running higher than it did last year. tration’s publicly announced goal of reducing This is a disturbing development for interna­ the pace of inflation by about 2 percentage tional as well as for domestic reasons. points by the end of 1979 is to be achieved. In recent weeks, the dollar—which had The trend of growth in monetary aggregates, maintained remarkable stability against the I regret to say, is still too rapid. Even though average of foreign currencies since early last the Federal Reserve has steadily sought during year—has experienced limited but conspicu­ the past 2 years to achieve lower ranges for ous depreciation. This is a matter that no one monetary expansion, the evolution of its pro­ in our Government can or does take lightly: jections has been extremely gradual; indeed, first, because any material depreciation of the at the pace we have been moving it would dollar against foreign currencies would have require perhaps a decade to reach rates of some adverse effect on our domestic price growth consistent with price stability. I must level; second, because the dollar is a store of report, moreover, that despite the gradual value for much of the rest of the world. The reduction of projected growth ranges for the fact that the dollar has weakened even in aggregates during the past 2 years, no mean­ relation to the currencies of countries experi­ ingful reduction has as yet occurred in actual Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 Federal Reserve Bulletin □ August 1977 growth rates. That unintended consequence is Current monetary policy represents our best partly the result of data deficiencies that com­ judgment as to what is appropriate in the light plicate the already formidable task of adjusting of evolving economic and financial de­ or approximating monetary growth objectives. velopments. We will not be slow in modifying Some of the data deficiencies we have experi­ that policy if actual conditions deviate mate­ enced are being overcome. Even so, monetary rially from our expectations. measurement will continue to lack the preci­ In concluding this report, I think it appro­ sion of a science. So too will the Federal priate to emphasize the great complexity of Reserve’s actions aiming to influence de­ the economic problems currently confronting velopments in financial markets. our Nation. There are no instant, easy solu­ Implicit in our projections for monetary tions that will deliver us from our difficulties. growth is the expectation that the velocity—or For our part, we at the Federal Reserve know turnover—of M-l will increase at a faster rate that inflation ultimately cannot proceed with­ than it has on the average during comparable out monetary nourishment. But we also live periods of previous business-cycle expan­ with a realization of our limited capacity to sions. That does not seem an unreasonable move dramatically or quickly in making means expectation, inasmuch as the velocity of M-l of financing less readily available. The shock has, in fact, been increasing more rapidly of abrupt adjustment after so many years of during the current recovery than the historical druglike abuse of our economic system would record would have suggested—a development be excessively risky. To the maximum extent that reflects the increasing importance of a feasible, however, we are determined to move wide range of substitutes for traditional check­ toward re-establishing conditions of financial ing deposits. The Federal Reserve Board’s order in our society. That is not because staff estimates that the growing use of such financial order is itself an end with which we substitutes—for example, negotiable orders of are preoccupied, but because our Nation can­ withdrawal (NOW) accounts, credit union not realize its potential for sustained prosper­ share drafts, drafts on money market mutual ity and well-being until existing apprehensions funds, passbook savings accounts for business about inflation are subdued. firms and State and local governments, and We at the Board have no illusions about telephonic transfers from savings to checking what the Federal Reserve alone can ac­ accounts—depressed the rate of growth of complish. Sound monetary policy is a prereq­ M-l by about \Vi percentage points in 1976. uisite to the achievement of the employment This year the impact may be smaller but and price goals set forth by the administration. nonetheless will remain significant. But other elements are no less critical. The The relationship between monthly or even President’s timetable for eliminating the defi­ yearly rates of monetary expansion and the cit in the Federal budget deserves the earnest performance of the economy is subject to support of the Congress. Structural rigidities considerable uncertainty under the best of that are weakening our economy also require circumstances. In the current environment of serious attention. It is fortunate that members rapid change in methods of carrying on fi­ of the Congress increasingly perceive that per­ nancial transactions that uncertainty is sistent budget deficits and ever-faster increases heightened. Consequently, the Federal Re­ of the money supply, whatever their usefulness serve will continue to maintain a posture of in the past, are no longer capable of solving vigilance and flexibility in the period ahead. our economic problems. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

729 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JUNE 21, 1977 Domestic Policy Directive The information reviewed at this meeting suggested that growth in real output of goods and services in the current quarter had been close to the pace in the first quarter, now indicated by revised estimates of the Commerce Department to have been at an annual rate of 6.9 per cent. The rise in average prices—as measured by the fixed-weighted price index for gross domestic business product— appeared to have been somewhat faster than the annual rate of 6.5 per cent estimated for the first quarter, owing in large part to substantial increases in prices of foods. Staff projections suggested that in the second half of 1977 and in early 1978 the rate of growth in real GNP would be fairly rapid, although significantly less so than in the first half of this year. The projections also suggested that the rate of increase in prices would moderate from that in the first half but would remain comparatively high. In the current quarter, according to staff estimates, growth in personal consumption expenditures had slowed somewhat from the high rate in the first quarter. The expansion in business fixed investment also had moderated—from an especially rapid pace in the first quarter induced by recovery from strikes. On the other hand, residential construction activity had expanded sharply in the current quarter, after having been adversely affected in the first quarter by severe winter weather; State and local government purchases of goods and services had turned up; and business inventory investment had increased moderately further. Staff projections for the second half of the year suggested that growth in consumption expenditures would slow somewhat further and that the pace of expansion in residential construction would moderate. At the same time, however, it was expected that in­ creases in Federal purchases of goods and services would be substantial; that growth in State and local government purchases would be sustained at a high rate; that expansion of business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 Federal Reserve Bulletin □ August 1977 investment would remain relatively strong; and that the rate of inventory accumulation would continue to increase. In May economic activity continued to expand at a rapid pace. Industrial production rose by 1.1 per cent, following gains of 1.5 per cent and 0.8 per cent in March and April, respectively. As in other recent months, increases in output were widespread among both final products and materials; such increases were especially large for business equipment and for some durable goods materials. How­ ever, assemblies of automobiles declined slightly for the second consecutive month. Rates of capacity utilization rose in May to about 83 per cent both for manufacturing as a whole and for the materials-producing industries. These utilization rates were significantly above those of last autumn and winter, but they remained well below the peaks in the previous business expansion when capacity constraints in a number of materials-producing industries limited growth in output and contributed to upward pressures on prices. Private housing starts—which had risen sharply in March to an annual rate of 2.1 million—were at a rate of about 1.9 million in both April and May. At that level, starts were about 10 per cent above the average for both the first quarter of 1977 and the fourth quarter of 1976. Mortgage lending activity had remained strong in recent months. At savings and loan associations, outstanding commitments to acquire mortgage loans reached a new high in April—the latest month for which data were available—and holdings of mortgage loans increased by a record amount during the month. Developments in labor markets continued to reflect the strength in economic activity. Payroll employment in nonfarm establishments increased by 190,000 persons in May—bringing the cumulative increase in the first 5 months of the year to almost 1.5 million, about one-third of which was in manufacturing. The unemployment rate edged down from 7.0 to 6.9 per cent. During the second half of 1976 it had fluctuated between 7.8 and 8.0 per cent. Personal income expanded considerably less in April and May than in the preceding 2 months when increases had been especially large owing to the rebound in wage and salary payments from the weather-reduced level in January and to disbursements by the Federal Government of earned-income credits to low-income families. Wage and salary payments rose about 1 per cent in both Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 731 April and May, close to the average monthly increase for the first quarter. Gains in employment and income continued to strengthen con­ sumer demands. In May total retail sales increased further to a level about 3V4 per cent above the monthly average for the first quarter. Sales of new automobiles—at a relatively high annual rate of 11.7 million units—were unchanged from April and were moderately above the first-quarter pace. Sales of foreign models, at an annual rate of 2.6 million units in May, set a record for the third successive month. Data available for domestic models indicated an appreciable rise in sales in the first 10 days of June. Data reflecting business commitments to spend for certain kinds of plant and equipment suggested a vigorous expansion in outlays over the near term. New orders for nondefense capital goods rose nearly 2 per cent further in April, and the average for the first 4 months of the year was about 6V2 per cent above the average for the last 3 months of 1976. Unfilled orders for such goods at the end of April were 3 per cent above the level at the end of 1976. Contract awards for commercial and industrial buildings—measured in terms of floor space—declined in April, but the March-April average was sharply above the averages for the first 2 months of the year and for the last 3 months of 1976. However, the latest Commerce Department survey of business plans, taken in May, suggested that in the third and fourth quarters of the year increases in spending for plant and equipment would be small and perhaps no more than the rise in prices for such goods. The survey suggested that for 1977 as a whole, businesses would spend 12.3 per cent more than in 1976, only 0.6 of a percentage point above the year-to-year increase suggested by the survey taken in February. The index of average hourly earnings for private nonfarm produc­ tion workers—which had advanced at an annual rate of 7.6 per cent in April, according to revised data—rose at a rate of 5.7 per cent in May. Over the first quarter the index had increased at a rate of 7.4 per cent, including the effects of the January increase in the minimum wage. In addition, labor costs had been raised in the first quarter by an increase in taxes on employers for social security and unemployment insurance. The rise in the wholesale price index slowed to 0.4 per cent in May Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 Federal Reserve Bulletin □ August 1977 from about 1.0 per cent in each of the preceding 3 months. Average prices for farm products declined in May while those for processed foods rose further, and the average for the two groups changed little following 3 months of large increases. In May average prices of industrial commodities also rose less than in the immediately preceding months; increases continued to be substantial for fuels and power and were larger than in the preceding months for machinery and equipment, but prices of scrap metals and some other materials either declined or rose less rapidly than earlier. The consumer price index rose 0.8 per cent in April, and the average increase over the first 4 months of the year also was 0.8 per cent—considerably larger than the average increase during the second half of 1976. Average prices of foods jumped 1.5 per cent in April, reflecting relatively large increases in almost all categories. Over the first 4 months of the year, food prices rose 5 per cent, after having changed little on balance oyer the 12 months of 1976. It was reported during the course of this meeting that the consumer price index for May—which had just been released—was 0.6 per cent above the index for April. The U.S. foreign trade deficit, which had increased sharply in each month of the first quarter, was about the same in April as in March (estimated on the international accounts basis). Over the 5 weeks between the May and June meetings of the Committee, the average value of the dollar against leading foreign currencies had changed little on balance—despite the publication in late May of the U.S. trade deficit for April, which was larger than had been expected. The impact on exchange rates of the large deficit was moderated in part by declines in interest rates abroad relative to those in the United States. On balance over the 5-week period, moreover, foreign central banks purchased dollars in the exchange markets. At U.S. banks, growth in total credit slowed somewhat in May from the relatively rapid pace of April, but the rate was close to the average for the January-April period. The slowing of growth in May was attributable almost entirely to a drop in the expansion of business loans to less than half the high rate of April. Over the first 5 months of the year, growth in business loans (excluding bankers acceptances) was substantially faster than over the fourth quarter of 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 733 The narrowly defined money stock (M-l) increased at an annual rate of only 1.1 per cent in May, after having grown at a record rate of nearly 20 per cent in April. Typically, in recent years rapid monetary growth in one month has been followed by slow growth for a month or two. For April and May combined, growth was at an annual rate of 10.4 per cent, compared with a rate of 4.8 per cent in the first quarter.1 Growth in the more broadly defined measures of money (M-2 and M-3) also slowed sharply in May—to annual rates of 4.6 and 6.9 per cent, respectively—mainly as a result of the slowing in M-l. However, inflows of the time and savings deposits included in M-2 continued to slacken in response to earlier increases in market interest rates relative to offering rates on deposits. Inflows to nonbank thrift institutions, on the other hand, remained at about the pace of recent months. Over the first 5 months of 1977, M-2 grew at an annual rate of 8.3 per cent; and M-3, at a rate of 9.6 per cent.2 At its May meeting the Committee had decided that growth in M-l and M-2 in the May-June period at annual rates within ranges of 0 to 4 per cent and V/i to IV2 per cent, respectively, would be appropri­ ate. It had judged that these growth rates were likely to be associated with a weekly-average Federal funds rate of about 5% per cent. The Committee had agreed that if growth rates in the aggre­ gates 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 5lA to 53A per cent. In the days immediately preceding the May meeting the Manager of the System Open Market Account had aimed for a Federal funds rate of around 5lA per cent, and the rate actually had fluctuated between 5lA and 5% per cent. In the days just after the meeting the Manager began to implement the Committee’s directive by seeking a weekly-average rate of 53/s per cent for Federal funds. Throughout Revised measures of the monetary aggregates, reflecting new benchmark data for deposits at nonmember banks, were published on June 23,1977. On the basis of these revised figures, the annual rate of growth inM-1 was 0.8 per cent in May; 19.4 per cent in April; and 4.2 per cent in the first quarter. 2Revised figures for M-2 and M-3, respectively, were 4.7 and 7.1 per cent for May, and 8.7 and 9.8 per cent for the first 5 months of 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 Federal Reserve Bulletin □ August 1977 the inter-meeting period, incoming data suggested that over the May-June period M-l and M-2 on the average would grow at rates well within the specified ranges. Accordingly, the Manager con­ tinued to aim for a weekly-average funds rate of about 5% per cent, and the rate remained close to that level during the period. Short-term market rates changed little on balance over the inter­ meeting period. Rates rose somewhat early in the period, but later they fell back partly in response to the steadiness of the Federal funds rate and to the indications of slow monetary growth after the April surge. In addition, demands for short-term credit by State and local governments as well as by businesses moderated, and the Treasury continued to redeem bills in its regular auctions. In late May most major banks raised their prime rate on business loans from 6V2 to 6% per cent, but one of these banks later cut the rate back to 6V2 per cent. Bond yields declined 10 to 20 basis points over the inter-meeting period, in part because short-term rates did not rise as market participants had expected. In addition, the volume of public offer­ ings of new corporate bonds declined in May and appeared likely to be much lower for the second quarter as a whole than for the first quarter. Moreover, the Federal budget registered a surplus during the second quarter, permitting not only a decrease in the volume of Treasury bills outstanding but also a reduction in offerings of new bonds. Offerings of new State and local government bonds rose to a record volume in May and appeared likely to be much larger for the second quarter than for the first. However, demands for tax-exempt bonds remained strong. The volume of mortgage lending remained large in May, at commercial banks as well as at savings and loan associations. Moreover, issues of GNMA-guaranteed, mortgage-backed securi­ ties and net mortgage acquisitions by FNMA were considerably above the average for the first 4 months of the year. Average interest rates on new commitments for conventional home mortgages con­ tinued to edge higher in May, and in the secondary mortgage market yields in FNMA commitments auctions also rose slightly further. At its April meeting the Committee had agreed that from the first quarter of 1977 to the first quarter of 1978 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M-1,4Vi to 6V2 per cent; M-2,7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 735 to 9Vi per cent; and M-3, 8Vi to 11 per cent. The associated range for growth in the bank credit proxy was 7 to 10 per cent. It was agreed that the longer-term ranges, as well as the particular aggregates for which such ranges were specified, would be subject to review and modifica­ tion at subsequent meetings. It also was understood that short-run factors might cause growth rates from month to month to fall outside the ranges contemplated for annual periods. In the discussion of the economic situation and outlook, the suggestion was made that it was reasonable to expect growth in real GNP for a number of quarters ahead to be fairly rapid, although less rapid than in the current quarter. Members differed somewhat in the emphasis placed on the favorable versus the unfavorable elements in the outlook for prices and costs. It was observed that the expansion in personal consumption expenditures was likely to slow—and the rate of personal saving to increase—as consumer purchases of new automobiles leveled off or declined following their large gains in recent quarters. It was also observed, however, that strength in other sectors should be sufficient to sustain over-all expansion at a reasonably good rate. Specifically, it was suggested that the outlook for State and local government purchases of goods and services had strengthened because of higher tax revenues and enlarged transfers of funds from the Federal Government resulting from recent legislation; that expansion in business fixed investment in the second half of the year was likely to be stronger than portrayed by the latest Commerce Department survey; and that, in association with the expansion in fixed invest­ ment, business inventory investment would continue to increase. Several members reported that businessmen were disturbed by an atmosphere of uncertainty about Government policies and regulations—in particular, those affecting taxes, energy, and en­ vironmental pollution. Moreover, businessmen were reported to be deeply concerned about inflation. In contrast with earlier times, inflation was now viewed as a cause of deterioration in profits, in part because of sharp increases in wage rates and in prices of raw materials and in part because of the taxation of profits that to some degree were unreal. Such considerations were seen as retarding the expansion in business fixed investment—which so far had been slower than might have been expected on the basis of earlier business expansions. Some members observed that business confidence nevertheless has been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 Federal Reserve Bulletin □ August 1977 improving and that the behavior of new orders for nondefense capital goods and of other indicators pointed to continuing expansion in outlays for plant and equipment. It was also suggested that confidence has been enhanced by System policies—specifically, by the promptness with which open market operations during the period between the April and May meetings responded to the April surge in monetary growth. The magnitude of recent declines in yields on long-term bonds was cited as partial evidence for this view. In the discussion of the outlook for prices, it was observed that the second-quarter acceleration in the over-all measures was attributable in large part to substantial increases in prices of farm products, which had been influenced more by the severe winter weather and the early-spring drought than the initial estimates indicated they would be. It was noted that in the past few months supply prospects had improved considerably for both grains and meats. It was noted also that prices of a number of basic industrial materials had declined over the past 2 months. With respect to wages and costs, the recent behavior of the index of average hourly earnings for private nonfarm production workers was described as an indication that the rise in labor costs per unit of output had not been accelerating, and it was noted that this was a favorable development for the present stage of the business expansion. On the other hand, there had been some pick-up during the past year in the rate of increase in the broader measure of compensation per manhour in the private business sector. It was suggested, moreover, that the accelerated increase in the consumer price index during the first 4 months of 1977 may well be reflected in the pace of wage advances later on, that a rapid rate of inflation by itself tended to reduce industry’s resistance to granting large wage increases, and that the rate of gain in productivity was likely to slow. In considering policy for the period immediately ahead, the members of the Committee took account of the likelihood that growth inAf-1 would remain relatively slow in June—continuing to respond to the April surge—but that growth from the first to the second quarter would nevertheless exceed the Committee’s longer-run range for that aggregate. In July, according to staff analysis, expansion of M-l was likely to be magnified by a purely technical factor—namely, distribution of social security checks earlier in the month than usual, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 737 thereby causing demand deposits to be larger than they otherwise would be over the 3-day weekend including July 4. The members differed little in their preferences for the ranges to be specified for the annual rates of growth in the monetary aggregates over the June-July period. For M-l, sentiment initially was about equally divided between ranges of 2Vi to 6Vi per cent and 3 to 7 per cent; the midpoint of each range was somewhat below the midpoint of the Committee’s longer-run range for growth in that aggregate. However, after some discussion of the extent to which growth in M-l in the second quarter was likely to exceed its longer-run range, sentiment in favor of the lower of the two ranges prevailed. For M-2, most members favored a range of 6 to 10 per cent, but sentiment was also expressed for a range of 5V2 to 9Vi per cent. Most members favored giving greater weight than usual to money market conditions in conducting open market operations in the period until the next meeting because of uncertainty about M-l growth rates in the near term. However, a number of the members expressed a preference for continuing to have operating decisions in the period ahead based primarily on the behavior of the monetary aggregates. Almost all members favored directing operations—at least initially—toward maintaining the Federal funds rate at about its prevailing level of 53/s per cent. Most of them advocated retaining the inter-meeting range for the funds rate of 5lA to 53A per cent that had been specified at the May meeting, but sentiment was also expressed for a range of 5 to 53A per cent. One of the members who expressed a preference for continuing to base operations primarily on the behavior of the aggregates favored a range of 5Vi to 6 lA per cent for the funds rate. At the conclusion of the discussion the Committee decided that operations in the period immediately ahead should be directed toward maintaining about the prevailing money market conditions, as represented by a weekly-average Federal funds rate of 53/s per cent. With respect to the annual rates of growth in M-l and M-2 over the June-July period, the Committee specified ranges of 2Vi to 6Vi per cent and 6 to 10 per cent, respectively. The members agreed that if growth in the aggregates should appear to approach or move beyond the limits of the specified ranges, with approximately equal weight given to M-l and M-2, the operational objective for the weeklyaverage Federal funds rate should be varied in an orderly fashion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 Federal Reserve Bulletin □ August 1977 within a range of 5lA to 53A 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 real output of goods and services has grown in the current quarter at about the rapid rate of the first quarter. In May industrial output and employment continued to expand at a substantial pace, and the unemployment rate edged down from 7.0 to 6.9 per cent. Total retail sales increased from the advanced March-April level. The rise in the wholesale price index for all commodities slowed substantially in May, as average prices of farm products and foods changed little after having increased sharply for three consecutive months; average prices of industrial commodities also rose less than in other recent months. The average value of the dollar against leading foreign currencies has changed little on balance over the past month. The U.S. foreign trade deficit was nearly as large in April as in March. M-l increased only slightly in May, after rising at an exceptionally rapid rate in April. Reflecting mainly the behavior of M-l, growth in M-2 and M-3 also slowed sharply. Inflows to banks of time and savings deposits other than large-denomination CD’s continued to slacken, but inflows to nonbank thrift institutions remained sizable. Business short-term borrowing moderated from the sharply increased pace of April, and corporate borrowing in the capital markets was reduced further. Short-term market interest rates have changed little on balance in recent weeks, while longer-term yields have declined. 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 expansion and help resist inflationary pressures, while contributing to a sustainable pattern of international transactions. At its meeting on April 19,1977, the Committee agreed that growth of M-l, M-2, and M-3 within ranges oiAVi to 6V2 per cent, 7 to Wi per cent, and 8V2 to 11 per cent, respectively, from 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. At this time, the Committee seeks to maintain about the prevailing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 739 money market conditions during the period immediately ahead, provided that monetary aggregates appear to be growing at approxi­ mately the rates currently expected, which are believed to be on a path reasonably consistent with the longer-run ranges for monetary aggre­ gates cited in the preceding paragraph. Specifically, the Committee seeks to maintain the weekly-average Federal funds rate at about 53/s per cent, so long as M-1 and Af-2 appear to be growing over the June-July period at annual rates within ranges of 2Vi to 6V2 per cent and 6 to 10 per cent, respectively. If, giving approximately equal weight to M-l and M-2, it appears that growth rates over the 2-month period are approaching or moving beyond the limits of the indicated ranges, the operational objective for the weekly-average Federal funds rate shall be modified in an orderly fashion within a range of 514 to 53A 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, Gardner, Guffey, Jackson, Lilly, Mayo, Morris, Par­ tee, Roos, and Wallich. Vote against this action: Mr. Coldwell. Mr. Coldwell dissented from this action because he favored a funds rate range of 5 to 5% per cent, in order to provide more leeway for a reduction should the rates of growth in M-l and M-2 appear to be near or below the lower limits of their specified ranges for the June-July period. This preference reflected his views that the April bulge inM-\ had been caused largely by special factors, that the projections of the aggregates for the June-July period were highly uncertain, and that realization of the staff projection for growth in nominal GNP would involve very large increases in the velocity of money. 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

741 Law Department Statutes, regulations, interpretations, and decisions LOAN GUARANTEES FOR DEFENSE Supply Agency has been changed to the Defense PRODUCTION Logistics Agency. Effective June 30, 1977, Section 1 of Regulation V (Loan Guarantees for Defense Production) of the Board of Governors is amended by deleting “the The Board of Governors has amended its Regula­ Defense Supply Agency” and substituting the tion V to reflect that the name of the Defense phrase “the Defense Logistics Agency.” BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS Orders Under Section 3 with because of the emergency that exists. The Act of Bank Holding Company Act does not require such notice. The Board has con­ sidered the application and the comments received Banco Central, S.A., in light of the factors set forth in section 3(c) of the Madrid, Spain Act (12 U.S.C. § 1842(c)). Applicant, a Spanish commercial bank with total Order Approving assets of approximately $8.5 billion and total de­ Formation of Bank Holding Company posits of approximately $7.2 billion, is the second largest commercial bank in Spain. Applicant has Banco Central, S.A., Madrid, Spain, has applied 1,181 offices, including six foreign branches, and for the Board’s approval under section 3(a)(1) of the nine representative offices. Applicant also plans to Bank Holding Company Act (12 U.S.C. establish an agency in New York City.2 § 1842(a)(1)) of the formation of a bank holding Banco Economias, the assets and liabilities of company through acquisition of all the voting which Bank will acquire, is the sixth largest of 15 shares of Banco Central y Economias (“Bank”), nongovernment-owned banking organizations Hato Rey, Puerto Rico. Bank, a new bank or­ operating in Puerto Rico, and holds deposits of ganized under the laws of the Commonwealth of approximately $199 million, or 4.1 per cent of the Puerto Rico, proposes to purchase assets and as­ total deposits in commercial banks in the Com­ sume liabilities, including deposit liabilities, of monwealth of Puerto Rico.3 Applicant does not Banco Economias, San German, Puerto Rico. Bank now operate in Puerto Rico, and it does not appear would be the successor to Banco Economias and, that any meaningful competition would be elimi­ accordingly, the proposed acquisition of voting nated as a result of the proposal. Consummation of shares of Bank is treated in this Order as a proposed the proposal should, in fact, have a salutary effect acquisition of voting shares of Banco Economias. on competition by restoring Bank to a condition Notice of the application has been given to the that will enable it to compete with other banking Secretary of the Treasury of the Commonwealth of organizations in the market. Therefore, on the basis Puerto Rico, who has advised the Board that he has of the record, the Board concludes that competitive no objection to approval of the application. Pub­ considerations are consistent with approval of the lished notice1 of the application has been dispensed application. irThe Federal Deposit Insurance Corporation has asked the 2Banking data are as of December 31, 1976. Board to act on this application as soon as possible for reasons 3Deposit and market data within Puerto Rico are as of June 30 related to the condition of Banco Economias. 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 Federal Reserve Bulletin □ August 1977 The financial and managerial resources of Appli­ Federal Reserve Bank of New York pursuant to cant are considered satisfactory and its future pros­ delegated authority. pects appear favorable. Without consummation of By order of the Board of Governors, effective this proposal, the financial resources and future July 1, 1977. prospects of Banco Economias would be con­ sidered poor, and if it is to continue as a viable Voting for this action: Vice Chairman Gardner and banking institution it must be acquired by a sound Governors Wallich, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns and Governor Coldwell. and well-managed organization such as Applicant. Applicant will provide Bank with needed financial (Signed) Griffith L. Garwood, and managerial resources and will greatly improve [seal] Deputy Secretary of the Board. its future prospects. These factors lend great weight toward approval. Considerations relating to the convenience and needs of the community to be Berbanc, Inc., served also lend weight toward approval, as the Salina, Kansas continuity of banking services by a locally- Order Approving chartered institution would be maintained in areas Formation of Bank Holding Company now served by Banco Economias. It is the Board’s judgment, therefore, that the proposed acquisition Berbanc, Inc., Salina, Kansas, has applied for would be in the public interest and that the applica­ the Board’s approval under § 3(a)(1) of the Bank tion should be approved. Holding Company Act (12 U.S.C. § 1842(a)(1)) of Applicant appears to qualify, upon consumma­ formation of a bank holding company through ac­ tion of the proposed transaction, as a foreign bank quisition of 100 per cent of the voting shares (less holding company under section 225.4(g)(1) of Regu­ directors’ qualifying shares) of The Gypsum Valley lation Y, and as such it will be exempt from certain National Bank of Gypsum, Gypsum, Kansas of the nonbanking prohibitions of the Act applicable (“Bank”). to domestic bank holding companies. Specifically, a Notice of the application, affording opportunity foreign bank holding company may, without the for interested persons to submit comments and Board’s prior approval, retain and acquire shares of views, has been given in accordance with § 3(b) of any company that is not engaged, directly or indi­ the Act. The time for filing comments and views has rectly, in any activities in the United States except expired, and the Board has considered the applica­ those incidental to such company’s international or tion and all comments received, in light of the foreign business. Applicant does not itself engage in factors set forth in § 3(c) of the Act (12 U.S.C. any nonbanking activity in the United States and it § 1842(c)). does not own, directly or indirectly, more than five Applicant is a newly formed corporation or­ per cent of the shares of any company located in the ganized under the laws of Kansas for the purpose of United States. Applicant is in the process of sub­ becoming a bank holding company through the mitting information to clarify whether Board ap­ acquisition of Bank. Bank (deposits of $4.4 mil­ proval is necessary for the retention of shares it lion)1 is the 10th largest of 11 banking organizations holds directly or indirectly in any foreign company in the relevant market2 and controls approximately on the basis of that company’s direct activities in 1.7 per cent of the total deposits held by commer­ the United States. Under section 4(a)(2) of the Act, cial banks in that market. There are two banks Applicant would have a two-year period from the affiliated with Bank already present in the Salina time it becomes a bank holding company to secure banking market.3 It is the Board’s view that con­ such approval or to dispose of shares of any such summation of this proposal would not have any company in excess of five per cent. significant adverse effect on existing competition in On the basis of the record, the application is approved for the reasons summarized above, sub­ ject to the issuance of all necessary regulatory 'All banking data are as of December 31, 1976. approvals for Bank to commence business as an *The relevant market is the Salina banking market, approxi­ insured bank. The transaction shall not be made mated by Saline County and the southern half of Ottawa County. ^ e Bennington State Bank, Bennington, Kansas, located 25 before the thirtieth day after the effective date of miles north of Bank with $13.3 million in deposits, controls 5.2 per this Order, or later than three months after the cent of total deposits in commercial banks in the market. The effective date of this Order unless such period is Bank of Tescott, located 31 miles northwest of Bank with $12.0 million in deposits, controls 4.7 per cent of total deposits in extended for good cause by the Board or the commercial banks in the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 743 view of the relative size of these organizations, Berco, Inc., their small market shares, and the number of re­ Bennington, Kansas maining banking alternatives in the market. Accord­ Order Approving Acquisition of ingly, on the basis of the facts of record, the Board Shares of a Bank Holding Company concludes that consummation of the proposal would have only a slightly adverse effect on compe­ Berco, Inc., Bennington, Kansas (“Berco”), a tition. bank holding company by virtue of its ownership of The financial and managerial resources and fu­ 94.4 per cent of the voting shares of The Ben­ ture prospects of Applicant and Bank are con­ nington State Bank, Bennington, Kansas (“Ben­ sidered to be satisfactory and are consistent with nington Bank”), has applied for the Board’s ap­ approval of the application. Although Applicant proval under § 3(a)(3) of the Bank Holding Com­ will incur debt in connection with the proposal, it pany Act (12 U.S.C. § 1842(a)(3)) to acquire 24 per appears to have the necessary financial resources cent of the voting shares of Berbanc, Inc., Salina, available to service the debt without impairing the Kansas (“Berbanc”), a proposed bank holding financial condition of Bank. Applicant also pro­ company with respect to The Gypsum Valley Na­ poses to sell 24 per cent of its voting shares to tional Bank of Gypsum, Gypsum, Kansas (“Gyp­ Berco, Inc., Bennington, Kansas, in order to enable sum Bank”).1 Applicant to receive additional funding to retire its Notice of the application, affording opportunity debt.4. for interested persons to submit comments and Applicant proposes to improve or expand several views, has been given in accordance with § 3(b) of of Bank’s existing services. Service charges on the Act. The time for filing comments and views demand deposits are to be reduced in the near has expired, and the application and all comments future. A method of computation of interest on and views received have been considered by the savings deposits more favorable to bank customers Board in light of the factors sets forth in § 3(c) of the is being instituted. Considerations relating to the Act (12 U.S.C. § 1842(c)). convenience and needs of the community to be Gypsum Bank (deposits of $4.4 million),2 con­ served lend some weight toward approval of the trols 1.7 per cent of the total deposits held by application and outweigh in the public interest the commercial banks in the relevant market and is the slightly adverse competitive effects that might re­ tenth largest of 11 banking organizations in that sult from consummation of the proposal. Based market.3 Applicant’s subsidiary bank, The Ben­ upon the foregoing and other considerations re­ nington State Bank (deposits of $13.3 million), flected in the record, it is the Board’s judgment that controls 5.2 per cent of the total deposits held by the proposed acquisition is in the public interest and commercial banks in the relevant market and is the that the application should be approved. fifth largest of 11 banking organizations in that On the basis of the record, the application is market. While Applicant’s existing subsidiary bank approved for the reasons summarized above. The and Gypsum Bank are located in the same banking acquisition of Bank shall not be made (a) before the market along with a third affiliated bank,4 it appears thirtieth calendar day following the effective date of that consummation of the proposal would not have this Order or (b) later than three months after the any significant adverse effect on competition, due effective date of this Order, unless such period is to the relative size of these organizations, their extended for good cause by the Board or by the small market shares, and the number of remaining Federal Reserve Bank of Kansas City pursuant to banking alternatives in the market. The three banks delegated authority. in the aggregate control only 11.6 per cent of the By order of the Board of Governors, effective total deposits in commercial banks in the market, July 18, 1977. and together rank as the 4th largest organization in Voting for this action: Governors Wallich, Coldwell, the Salina banking market, and are disbursed geo­ Jackson, Partee, and Lilly. Absent and not voting: Chair­ man Bums and Governor Gardner. *In a related action, the Board approved today an application by Berbanc to become a bank holding company through the acquisi­ tion of 100 per cent of the voting shares (less directors’ qualifying (Signed) Theodore E. Allison, shares) of Bank. (See Board’s Order of July 18, 1977.) [seal] Secretary of the Board. 2A11 banking data are as of December 31, 1976. ^he relevant market is the Salina banking market, approxi­ mated by Saline County and the southern half of Ottawa County. 4In a related matter, the Board today approved an application by 4The Bank of Tescott (“Tescott Bank”) (deposits of $12.0 Berco, Inc., Bennington, Kansas, to acquire 24 per cent of the million) controls 4.7 per cent of total commercial bank deposits voting shares of Applicant. (See Board’s Order of July 18, 1977.) and ranks 6th in the relevant banking market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

744 Federal Reserve Bulletin □ August 1977 graphically throughout the market.5 Accordingly, unless such period is extended for good cause by on the basis of the facts of record, the Board the Board or by the Federal Reserve Bank of concludes that consummation of the proposal Kansas City, pursuant to delegated authority. would have only a slightly adverse effect on compe­ By order of the Board of Governors, effective tition. July 18, 1977. The financial and managerial resources and fu­ ture prospects of Applicant and its present sub­ Voting for this action: Governors Wallich, Cold well, Jackson, Partee, and Lilly. Absent and not voting: Chair­ sidiary bank are considered satisfactory and consis­ man Bums and Governor Gardner. tent with approval. Applicant’s acquisition of Berbanc’s shares would not adversely affect the overall (Signed) Theodore E. Allison, financial conditions of Applicant, Bennington [seal] Secretary of the Board. Bank, or Gypsum Bank. Improved and expanded services to Gypsum Bank’s customers would be instituted upon consummation of this and the re­ First International Bancshares, Inc., lated Berbanc proposal. Considerations relating to the convenience and needs of the communities to Dallas, Texas be served lend some weight toward approval of the Order Approving Acquisition of Bank application. It is the Board’s judgment that the proposed transaction would be consistent with the First International Bancshares, Inc., Dallas, public interest, and that the application to acquire Texas, a bank holding company within the meaning shares of Berbanc should be approved.6 of the Bank Holding Company Act, has applied for Based upon the foregoing and other con­ the Board’s approval under § 3(a)(3) of the Act (12 siderations reflected in the record, the application is U.S.C. § 1842(a)(3)) to acquire 100 per cent of the approved for the reasons summarized above. The voting shares (less directors’ qualifying shares) of transaction to acquire shares of Berbanc shall not Texas State Bank, Abilene, Texas (“Bank”), a be made (a) before the thirtieth calendar day follow­ proposed new bank. ing the effective date of this Order or (b) later than Notice of the application, affording opportunity three months after the effective date of this Order, for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has 5Bennington Bank is located 25 miles north of Bank and 13 miles east of Tescott Bank; Tescott Bank is located 31 miles northwest expired, and the Board has considered the applica­ of Bank. tion and all comments received, including those ®Pursuant to the Supreme Court’s holding in Whitney National Bank of Jefferson Parish v. Bank of New Orleans and Trust submitted on behalf of the Independent Bankers Company, 379 U.S. 411,419 (1965), the Board may not approve an Association of Texas, Inc., and three Texas banks: application by a bank holding company if Board approval of the Abilene National Bank, Bank of Commerce, and proposal contemplated by such application would, by reason of ownership of the bank by bank holding company, result in the The First State Bank, all of Abilene, Texas violation of a valid State law. Kansas law prohibits the formation (hereinafter collectively referred to as “Protes­ of “bank holding companies.” The relevant statute generally tants”), in light of the factors set forth in § 3(c) of defines a “bank holding company” as any company that directly or indirectly owns, controls, or holds with power to vote, 25 per the Act (12 U.S.C. § 1842(c)). cent or more of the voting shares of each of two or more banks; or Applicant, the second largest banking organiza­ controls in any manner the election of a majority of the directors of each of two or more banks (K.S.A. § 9-504). Acquisition of 24 per tion in Texas, controls 24 banks with aggregate cent of the voting shares of Berbanc would not appear to con­ deposits of approximately $3.9 billion, which repre­ travene the provisions of Kansas law. (,See Board’s Order of sent 7.5 per cent of the total commercial bank September 15, 1975, concerning the application of Valley View Bancshares, Inc., to acquire shares of Industrial Bancshares, Inc., deposits in Texas.1 Since Bank is a proposed new 1975 Federal Reserve Bulletin 676, 677.) bank, its acquisition would neither immediately Pursuant to a written commitment Applicant will upon con­ increase Applicant’s share of commercial bank de­ summation of the proposal report Berbanc and Gypsum Bank as subsidiaries of Applicant and comply with applicable provisions of posits nor alter its rank in the State. Federal banking law, as if Berbanc and Gypsum Bank were Bank is to be located in the growing southern subsidiaries of Applicant. In view of this commitment, and the current applicability of § 23A of the Federal Reserve Act to the portion of the city of Abilene, Texas, and will relationships among Berco, Berbanc, Gypsum Bank and Ben­ compete in the Abilene banking market (the rele­ nington Bank, it is not necessary at this time to determine whether Berco controls Berbanc by virtue of § 2(a)(2)(C) of the Bank Holding Company Act. The Board notes, however, that section 225.2(b)(2) of the Board’s Regulation Y establishes a rebuttable *A11 banking data are as of December 31, 1976, and reflect bank presumption that Berco controls Berbanc and Gypsum Bank on holding company formations and acquisitions approved through the facts of this application. April 30, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 745 vant banking market).2 Applicant operates one sub­ plicant would offend Texas law prohibiting branch sidiary bank in the relevant market,3 The Citizens banking (TEX. CONST. Art. XVI § 16). The Board National Bank of Abilene (“Citizens Bank”), and is has stated that a State’s restrictive branch banking thereby the third largest of fourteen commercial laws are not automatically applicable to bank hold­ banking organizations located in the market with 23 ing company operations. In a given case the Board per cent of market deposits. Since Bank is a pro­ examines the facts to determine whether a particu­ posed new bank, its acquisition by Applicant would lar acquisition by a bank holding company would not eliminate any existing or potential competition. constitute an illegal branch under State law. If the In addition, there is no evidence that Applicant’s Board determines that a violation of State law proposal is an attempt to preempt a site before there would result, it is required to disapprove the trans­ is a need for a bank. On the basis of the above and action. Whitney National Bank v. Bank of New other facts of record, the Board concludes that Orleans, 323 F. 2d 290 (D.C. Cir. 1963), rev’d on competitive considerations are consistent with ap­ other grounds, 379 U.S. 411 (1965); Gravois Bank proval of the application. v. Board of Governors, 478 F. 2d 546 (8th Cir. The financial and managerial resources and fu­ 1973). ture prospects of Applicant and its subsidiary banks The Board notes that the Banking Commissioner are regarded as satisfactory and consistent with of the State of Texas has granted preliminary ap­ approval of the application. Similarly, the financial proval for the charter of Bank, following a hearing, and managerial resources and future prospects of apparently concluding that Bank would not be an Bank as a subsidiary of Applicant are satisfactory illegal branch under applicable Texas law. Fur­ and consistent with approval of the application. thermore, the facts of record in this case indicate Accordingly, considerations relating to the banking Bank will be a separate corporation, with its own factors are consistent with approval. Con­ capital stock and a loan limit based upon such siderations relating to the convenience and needs of capital stock; Bank’s operations will be conducted the community to be served lend some weight primarily by its own officers; Bank’s board of toward approval since affiliation of Bank with Ap­ directors will be generally separate from the boards plicant will enable Bank to provide a full range of of Applicant and of Citizens Bank and will exercise banking services to its customers. independent judgment with respect to the manage­ In its review of the subject application, the Board ment of Bank; Bank’s officers and employees will has given careful consideration to the comments not directly perform any services for customers of submitted on behalf of Protestants. In addition to Citizens Bank other than those services that would requesting a formal hearing on the application, be provided for customers of other area banks, such which request is denied by the Board,4 Protestants as check cashing, and the same is true of Citizens contend that Bank’s proposed affiliation with Ap­ Bank’s officers and employees with regard to cus­ tomers of Bank; Bank’s customers will be able to deposit and withdraw their funds only with respect to their accounts in Bank and will not be able to *The Abilene banking market is approximated by the Abilene effect a deposit or withdrawal from Bank at Citi­ SMSA, which is comprised of Callahan, Jones, and Taylor Coun­ ties. zens Bank; and the same is true of Citizens Bank’s 3In addition to its main office, Citizens Bank operates a “facil­ customers who will likewise not be able to effect a ity” at Dyess Air Force Base, which is within the Abilene market. deposit or withdrawal from Citizens Bank at Bank; This facility can only receive demand and savings deposits. It has no loan-making authority. Bank and Citizens Bank will be advertised as being 4Under § 3(b) of the Act, the Board is required to hold a hearing members of the same bank holding company sys­ when the primary supervisor of the bank to be acquired recom­ mends disapproval of the application (12 U.S.C. § 1842(b)). In this tem but they will not be identified as united institu­ case, after a hearing on Bank’s charter application in which three tions; Bank will maintain its own books of account, of the Protestants participated, the Banking Commissioner of the use its own stationery and issue its own distinctive State of Texas issued preliminary charter approval to Bank on December 11, 1975, and he has not subsequently recommended checks and forms; and Bank’s name will be differ­ that the subject application be denied. Thus, there is no statutory ent from the name of Citizens Bank. Applicant requirement that the Board hold a hearing. During the processing further represents that it will purchase Bank’s of the subject application Protestants were given several opportu­ nities to submit their views in writing. Additionally, in response to shares through use of its own capital resources. a request by the Protestants, an informal hearing was held at the In order to prevail on the branching issue, “It Federal Reserve Bank of Dallas at which representatives of Applicant and the four Protestants were present and were pro­ must be shown that in substance a bank is doing vided an opportunity to express their views. In view of the business through the instrumentality of the affiliate Board’s conclusion that the record in this case is sufficiently institution which constitutes the alleged branch, or complete to render a decision, Protestants’ request for a formal hearing is denied. vice versa, in the same way as if the institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 Federal Reserve Bulletin □ August 1977 were one.” Independent Bankers Association of Bank will enable Applicant to become the dominant Georgia v. Board of Governors of the Federal banking organization in the market. However, Reserve System, 516 F. 2d 1206 (D.C. Cir. 1975). In while Applicant controls 23 per cent of the deposits view of the foregoing, and having considered the in the relevant market, it is only the third largest of comments of the Protestants and all the other facts fourteen banking organizations in the market (with of record, the Board concludes that Bank will not two out of sixteen banking offices in the Abilene be operated in a unitary fashion with Applicant’s SMSA)6 and has experienced a steadily declining banking subsidiary and thus this proposal will not market share in recent years. Moreover, the first contravene Texas’ branch banking law. and second ranked banking organizations in the Protestants contend that approval of this applica­ market control 30.5 and 24.4 per cent, respectively, tion would also have such adverse competitive of the market’s deposits. In addition, the largest consequences as to merit denial of the application.5 banking organization in the market controls both One of the arguments advanced by Protestants is the largest and fourth largest banks therein. Based that the Abilene banking market is not particularly upon the record in this matter, it is the Board’s view attractive for de novo entry because little growth in that the acquisition of Bank will not enable Appli­ the area can be expected. Consequently, Protes­ cant to become the dominant banking organization tants assert, it is doubtful Bank can become a viable in the market. independent banking institution. The Board has In view of the foregoing discussion and having reviewed the facts of record and finds that the considered the facts of record and all the comments market can reasonably be expected to support an of Protestants in light of the statutory factors the additional banking alternative. This is especially so Board must consider under § 3(c) of the Act, it is in light of the fact that Bank is to be located in the the Board’s judgment that consummation of the expanding southern portion of Abilene which is subject proposal would be in the public interest and currently served by a single bank. While the deci­ that the application to acquire Bank should be sion to establish a new bank almost always involves approved. some measure of risk, the Board is unable to On the basis of the record, the application is conclude that Applicant’s proposal involves more approved for the reasons summarized above. The than the usual entrepreneurial risks inherent in such transaction shall not be made (a) before the thirtieth a proposal. calendar day following the effective date of this Protestants also assert that any substantial Order or (b) later than three months after that date, growth by Bank would be at the expense of the and (c) Texas State Bank, Abilene, Texas, shall be area’s existing banks. Applicant has defined a ser­ opened for business not later than six months after vice area for Bank that overlaps the service area of the effective date of this Order. Each of the periods a neighboring bank that has sustained an annual described in (b) and (c) may be extended for good deposit growth rate of approximately 20 per cent cause by the Board, or by the Federal Reserve over the past five years. Moreover, it appears that Bank of Dallas pursuant to delegated authority. the economy of the Abilene area is experiencing By order of the Board of Governors, effective steady growth and the bulk of Abilene’s growth in July 7, 1977. population and new housing is occurring in that portion of Abilene where Bank is to be located. The Voting for this action: Vice Chairman Gardner and continued growth in the economy of Abilene should Governors Wallich, Coldwell, Jackson, and Partee. Ab­ insure that Bank can experience adequate growth sence and not voting: Chairman Bums and Governor without endangering the viability of the other banks Lilly. in the market. Protestants also assert that the acquisition of (Signed) Ruth A. Reister, [seal] Assistant Secretary of the Board. 5Protestants also claim that the prohibitions against director interlocks of section 8 of the Clayton Act (15 U.S.C. § 19) and section 212.1 of the Board’s Regulation L (12 CFR § 212.1) would ®For purposes of this analysis, Applicant’s Dyess Air Force be violated as a result of Applicant’s acquisition of Bank since a Base facility is counted as a banking office. The facts of record director of Citizens, a subsidiary of Applicant, would also be a show that at the same time Applicant’s de novo charter for Bank director of Bank. The Board has examined Protestants’ contention was approved by the State Banking Commission, the Commission and is of the view that the existence of a common director at Bank also approved another charter for the northeast section of the city and Citizens Bank is clearly permissible on the basis of section of Abilene. Thus, upon the opening of Bank and the other newly 212.2(d)(4) of Regulation L since both banks are subsidiaries of the approved bank in Abilene, Applicant would control only 3 out of same parent holding company. the 17 banking offices in the Abilene market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 747 Northeast United Bancorp, Inc. of Texas, total State deposits by 0.06 per cent and would not Fort Worth, Texas result in a significant increase in the concentration of banking resources in Texas. Approval of the Order Approving Acquisition of Bank subject application would result in Applicant be­ coming the 62nd largest banking organization in Northeast United Bancorp, Inc. of Texas, Fort Texas. Worth, Texas, a bank holding company within the Bank holds deposits of approximately $30 mil­ meaning of the Bank Holding Company Act lion, representing 1.0 per cent of the total deposits (“Act”), has applied for the Board’s approval in commercial banks operating in the Fort Worth under section 3(a)(3) of the Act (12 U.S.C. banking market,2 and ranks as the 17th largest of 51 § 1842(a)(3)) to acquire 51 per cent or more of the commercial banks in the market. The three largest voting shares of First State Bank, Bedford, Texas banking organizations in the market control, in the (“Bank”). aggregate, 63.3 per cent of the market’s deposits The subject proposal is an amendment to Appli­ Applicant is the ninth largest of 40 banking organi­ cant’s original application to acquire 100 per cent of zations in the Fort Worth banking market. Its sole the voting shares (less directors’ qualifying shares) subsidiary, Northeast National Bank of Fort of Bank through an exchange of shares of Applicant Worth, Fort Worth, Texas (“Northeast”), holds for shares of Bank. That application was approved deposits of $50.4 million, representing 1.6 per cent by the Board by Order of January 19, 1976 (41 of the market’s total commercial bank deposits. To Federal Register 3782). Because Applicant was not the extent that Northeast Bank and Bank operate in able to acquire all of the shares of Bank as pro­ the Fort Worth banking market, some amount of posed, Applicant requested the Board to amend its existing competition would be eliminated as a result Order to permit Applicant to acquire 75 per cent or of the consummation of this proposal. However, more of the shares of Bank through an exchange of Northeast Bank and Bank are located in separate shares. By Order of November 5, 1976, the Board suburbs of Fort Worth seven and one-half miles granted Applicant’s request (41 Federal Register apart and in view of the sizes of the institutions 50347). It appears that Applicant is unable to con­ involved and the large number of banks competing summate the transaction as amended. Applicant in the market, it does not appear that the effects on now proposes to acquire 51 per cent or more of the existing competition would be significant. More­ voting shares of Bank through cash purchase rather over, even after consummation of the proposal, than through an exchange of shares. In view of the Applicant would control only 2.6 per cent of the length of time that has elapsed since the Board market’s deposits (about one-third of the deposits issued its first Order approving the application and held by the market’s third largest banking organiza­ the substantial amendments that Applicant has tion, and less than one-tenth of the deposits held by made to the proposal, the Board has considered the the first or second largest banking organization in amended proposal as if it were a new application. the market), and several independent banks in the Notice of the amended application, affording market would remain available for acquisition by opportunity for interested persons to submit com­ holding companies not presently represented in the ments and views, has been given in accordance market. Accordingly, on the basis of the record, the with section 3(b) of the Act. The time for filing Board concludes that consummation of the proposal comments and views has expired, and the Board would not have any significantly adverse effects has considered the application and all comments on competition. received, in light of the factors set forth in section The financial and managerial resources of Appli­ 3(c) of the Act (12 U.S.C. § 1842(c)). cant and its subsidiary bank are considered satisfac­ Applicant, the 107th largest banking organization tory and the future prospects for each appear in Texas, controls one bank with aggregate deposits favorable. In view of Applicant’s commitment to of approximately $50.4 million, representing one- inject $200,000 of equity capital into Bank following tenth of one per cent of the total deposits in its acquisition, the same conclusions generally commercial banks in the State.1 Applicant’s acqui­ apply with respect to Bank’s financial and manage­ sition of Bank would increase Applicant’s share of rial resources and future prospects. Although Ap- *A11 banking data are as of December 31, 1976, and reflect *The Forth Worth banking market, the relevant geographic holding company formations and acquisitions approved through market for purposes of analyzing the competitive effects of this June 30, 1977. proposal, is approximated by the Fort Worth RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 Federal Reserve Bulletin □ August 1977 plicant will incur debt of approximately $2.8 million Peotone Bancorp, Inc., as a result of the acquisition of Bank’s shares, it Peotone, Illinois appears that Applicant will be able to service this Order Approving debt through the earnings of Northeast Bank and Formation of a Bank Holding Company Bank, without placing any undue strain upon the capital position of either bank. Thus, the banking Peotone Bancorp, Inc., Peotone, Illinois, has factors lend some weight toward approval of the applied for the Board’s approval under § 3(a)(1) of application. Applicant proposes to increase the the Bank Holding Company Act (12 U.S.C. § rates of interest paid on Bank’s time and savings 1842(a)(1)) of formation of a bank holding company deposits, increase the parking facilities at Bank, by acquiring 80 per cent of more of the voting and, at a later date, provide trust services for shares of Peotone Bank and Trust Company, customers of Bank. Therefore, the considerations Peotone, Illinois (“Bank”). relating to the convenience and needs of the com­ Notice of the application, affording opportunity munity to be served lend weight toward approval of for interested persons to submit comments and the application and, in the Board’s view, are suffi­ views, has been given in accordance with § 3(b) of cient to outweigh any slight adverse effects on the Act. The time for filing comments and views has existing competition that might result from con­ expired, and the application and all comments summation of the proposal. Therefore, on the basis received have been considered in light of the factors of all of the facts of record, it is the Board’s set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). judgment that consummation of the proposed Applicant is a nonoperating corporation organized transaction would be in the public interest and that for the purpose of becoming a bank holding com­ the application should be approved.3 pany through the acquisition of Bank (deposits of On the basis of the record, the application is $19.8 million).1 Upon acquisition of Bank, Appli­ approved for the reasons summarized above. The cant would control the 506th largest bank in Illinois, transaction shall not be made (a) before the thirtieth with approximately 0.03 per cent of total deposits of calendar day following the effective date of this commercial banks in the State. Bank is the 9th Order or (b) later than three months after the largest of 22 banks competing in Will County, the effective date of this Order, unless such period is relevant banking market, holding about 3 per cent extended for good cause by the Board, or by the of the total commercial bank deposits therein. Ap­ Federal Reserve Bank of Dallas pursuant to dele­ plicant’s principals are associated with and exert gated authority. considerable management influence over two other By order of the Board of Governors, effective Illinois banks, one in Westville and the other in July 25, 1977. Cambridge. Since the instant proposal is essentially a corporate reorganization, and because Bank and the other two banks are each located in separate banking markets, consummation of the proposal would neither eliminate existing or potential com­ Voting for this action: Chairman Bums and Governors petition nor increase the concentration of banking Gardner, Wallich, and Coldwell. Absent and not voting: Governors Jackson, Partee, and Lilly. resources in any relevant area. Thus, it is con­ cluded that competitive considerations are consis­ tent with approval of the application. The condition of the two other banks with which (Signed) Griffith L. Garwood, Applicant’s principals are associated suggests that Deputy Secretary of the Board. they will conduct the operations of Applicant and Bank in a satisfactory manner. Although Applicant will incur debt in connection with the proposal, the 3In its consideration of Applicant’s original proposal, the Board projected income from Bank should provide suffi­ considered comments submitted by First National Bank of Euless, cient revenue to service the debt without impairing Euless, Texas (“Protestant”), regarding the competitive effects of the financial condition of Bank. Therefore, con­ Applicant’s proposed acquisition of Bank. Protestant’s comments in opposition to approval of Applicant’s proposal and the Board’s siderations relating to the financial and managerial analysis of those comments are set forth in the Board’s Order resources and future prospects of Applicant and approving Applicant’s original proposal (41 Federal Register 3782 (1975)). Upon review of Protestant’s comments in light of the subject proposal, the Board is of the view that the facts do not justify altering those findings of record. All banking data are as of December 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 749 Bank are regarded as generally satisfactory and with aggregate deposits of $3.4 billion,2 represent­ consistent with approval. ing 7 per cent of the total deposits in commercial Although Applicant proposes no immediate sub­ banks in the State. Since Bank is a proposed new stantive changes in Bank’s services, considerations bank, no existing competition between Bank and relating to the convenience and needs of the com­ Applicant’s subsidiary banks would be eliminated, munity to be served are consistent with approval of nor would Bank’s acquisition by Applicant cause the application. It has been determined that the any immediate increase in Applicant’s share of proposed acquisition would be in the public interest commercial bank deposits in the State. and that the application should be approved. Bank, which is currently in formation, has re­ On the basis of the record, the application is ceived charter approval from the Department of approved for the reasons summarized above. The Banking of the State of Texas and is to be located in transaction shall not be made (a) before the thirtieth the southwest quadrant of the city of Houston, calendar day following the effective date of this Texas. Applicant is the second largest of 125 bank­ Order or (b) later than three months after the ing organizations in the relevant market.3 Its bank­ effective date of this Order, unless such period is ing subsidiaries located in the market control 19.2 extended for good cause by the Board, or by the per cent of total deposits in commercial banks in the Federal Reserve Bank of Chicago pursuant to dele­ market. Five of Applicant’s existing subsidiary gated authority. banks are located in the southwest quadrant of By order of the Secretary of the Board, acting Houston. Since Bank is a proposed new bank, pursuant to delegated authority for the Board of consummation of Applicant’s proposal would not Governors, effective July 25, 1977. eliminate any existing competition, nor would it have any immediate effect on Applicant’s share of (Signed) Theodore E. Allison, commercial bank deposits in the market. [seal] Secretary of the Board. In its analysis of the subject application, the Board has considered the comments and request for a hearing submitted by Protestants. In summary, Texas Commerce Bancshares, Inc., Protestants contend that consummation of the sub­ Houston, Texas ject proposal would solidify Applicant’s “domi­ nant” position in the State and the Houston bank­ Order Approving Acquisition of Bank ing market and promote a trend toward “undue Texas Commerce Bancshares, Inc., Houston, concentration” of banking resources on a Statewide Texas, a bank holding company within the meaning level. In addition, Protestants contend that there is of the Bank Holding Company Act, has applied for slight, if any, need for additional banking facilities the Board’s approval under § 3(a)(3) of the Act (12 in the market and that the acquisition of Bank of U.S.C. § 1842(a)(3)) to acquire 100 per cent (less Applicant will preempt a valuable site for future de directors’ qualifying shares) of the voting shares of novo entry.4 Protestants requested a hearing on the Tanglewood Commerce Bank, Houston, Texas, a instant application. proposed new bank (“Bank”). The Board has examined the record of the hear­ Notice of the application, affording opportunity ing held in connection with the chartering of Bank for interested persons to submit comments and and in which the Protestants participated, the writ­ views, has been given in accordance with § 3(b) of ten submissions of Protestants’ and Applicant’s re­ the Act. The time for filing comments and views has sponses, and is unable to conclude that a formal expired, and the Board has considered the applica­ hearing would significantly supplement the record tion and all comments received, including those before the Board or resolve issues not already submitted by Western Bank, Post Oak Bank, and discussed at length in the written submissions of San Felipe National Bank, all of Houston, Texas (collectively referred to herein as “Protestants”), 2Unless otherwise noted, all banking data are as of June 30, in light of the factors set forth in § 3(c) of the Act (12 1976. U.S.C. § 1842(c)). 3The relevant market is approximated by the Houston Ranally Metropolitan Area, which is comprised of Harris County and Applicant, the third largest banking organization portions of five adjacent counties. in Texas as of June 30, 1976, controls 32 banks1 4In support of their contentions, Protestants submitted, inter alia: (a) the transcript of a September 15, 1975 Hearing before the Texas Banking Commissioner on the proposed new bank, and (b) applicant recently applied to the Board to acquire shares of a privately commissioned market report on the condition of the Main Street National Bank, Dallas, Texas. banking market in Bank’s primary service area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 Federal Reserve Bulletin □ August 1977 Protestants and Applicant and in the record of the Applicant appear favorable. Considerations relating hearing before the Texas Banking Commissioner. to banking factors, therefore, are consistent with Protestants have neither specified any particular approval of the application. issue of material fact that a formal hearing would Bank will serve as an additional full service resolve nor indicated what evidence, if any, they banking facility for the residents and businesses of would adduce at such a hearing. In view of the Bank’s service area. Accordingly, those con­ foregoing, Protestants’ requests for a formal hear­ siderations relating to the convenience and needs of ing are hereby denied. the community to be served lend some weight Although Protestants characterize Applicant as toward approval of the application. It is the Board’s “dominant” in the State and the relevant market, judgment that the proposed acquisition would be in Applicant is but one of a number of multi-bank the public interest and that the application should holding companies in the State of comparable size, be approved. measured by total deposits. Applicant competes On the basis of the record, the application is with over 150 banks in the Houston market, and its approved for the reasons summarized above. The market share of 19.2 per cent is not such that it transaction shall not be made (a) before the thirtieth could properly be characterized as “dominant” in calendar day following the effective date of this that market. Additionally, the Board is unable to Order or (b) later than three months after that date, conclude that Protestants’ assessment of the effect and (c) Tanglewood Commerce Bank, Houston, of this acquisition on Statewide concentration is Texas, shall be opened for business not later than correct. six months after the effective date of this Order. While, in certain instances, de novo expansion in Each of the periods described in (b) and (c) may be a market by a leading organization within that extended for good cause by the Board, or by the market could reduce prospects for market decon­ Federal Reserve Bank of Dallas, pursuant to dele­ centration by preempting viable sites for de novo gated authority. entry or expansion by other firms, Applicant’s de By order of the Board of Governors, effective novo expansion in the rapidly growing southwest July 13, 1977. quadrant of Houston5 will have only a minimal impact on market entry and ample opportunities for Voting for this action: Chairman Bums and Governors market deconcentration remain through natural Gardner, Wallich, Jackson, and Partee. Absent and not voting: Governors Cold well and Lilly. growth of the market and foothold or de novo entry or expansion by other banking organizations. (Signed) Ruth A. Reister, On the basis of the facts of record, including the [seal] Assistant Secretary of the Board. record of the chartering hearing, the submissions of Protestants, and the submissions of Applicant, the Board concludes that, given the growth of the market, the large number of competing organiza­ tions, and the ample opportunities for market de­ Orders Under Section concentration, consummation of this proposal 4 of Bank Holding Company Act would not result in a concentration of financial resources in the relevant market or adversely affect Continental Illinois Corporation, competition in the relevant market. Chicago, Illinois The financial and managerial resources and fu­ ture prospects of Applicant, its subsidiaries and Order Approving Acquisition of Bank are regarded as generally satisfactory based Great Lakes Life Insurance Company upon the information in the record. Bank, a pro­ posed new bank, has no financial or operating Continental Illinois Corporation, Chicago, Il­ history; however, its prospects as a subsidiary of linois, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act (12 5The relevant market has experienced population growth at a U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board’s rate substantially greater than that experienced by the State of Regulation Y (12 CFR § 225.4(b)(2)), to acquire Texas as a whole. The ratio of population to banking offices in the Great Lakes Life Insurance Company, Phoenix, Houston market would, upon the opening of Bank become 12,588, exceeding the Statewide ratio by 39 per cent. Per capita deposits in Arizona (“Company”), a company that will engage the market are 37 per cent greater than the Statewide average. de novo in the activity of underwriting, as reinsurer, Thus, the market may be characterized as an attractive one for de novo entry. credit life and credit accident and health insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 751 that is directly related to extensions of credit by Applicant proposes to offer, through Company, Applicant’s subsidiary bank. Such activity has been various credit life and credit accident and health determined by the Board to be closely related to insurance coverage to its instalment and open-end banking (12 C.F.R. § 225.4(a)(10)). credit borrowers at various rates ranging from 7.7 Notice of the application, affording opportunity to 40.0 per cent below the approved andprima facie for interested persons to submit comments and rates established in Illinois.2 In addition, Applicant views on the public interest factors, has been duly proposes to expand the insurance coverage that it published (42 Fed. Reg. 21661 (1977)). The time for currently makes available, increase the amount of filing comments and views has expired, and the indebtedness covered and offer insurance to a Board has considered the application and all com­ broader class of borrowers. Based upon these fac­ ments received in the light of the public interest tors, the Board concludes that Applicant’s pro­ factors set forth in § 4(c)(8) of the Act (12 U.S.C. posed continued reductions3 in premiums and ex­ § 1843(c)(8)). panded coverage are procompetitive and in the Applicant, the largest bank holding company in public interest. Illinois, controls one subsidiary bank, Continental Based upon the foregoing and other con­ Illinois National Bank and Trust Company of siderations reflected in the record, including a Chicago (“Bank”), the largest bank in the State of commitment by Applicant to maintain on a continu­ Illinois. Bank holds domestic deposits of $9.1 bil­ ing basis the public benefits which the Board has lion1 representing approximately 14.9 per cent of the found to be reasonably expected to result from this total deposits in commercial banks in the State. proposal and upon which the approval of this Applicant also engages directly, or through sub­ proposal is based, the Board has determined that sidiaries, in leasing, debt financing, mortgage lend­ the balance of the public interest factors the Board ing, trust, and investment advisory activities on a is required to consider under § 4(c)(8) is favorable. national and international basis. Accordingly, the application is hereby approved. Company will be chartered under the laws of This determination is subject to the conditions set Arizona and will initially engage in the activity of forth in § 225.4(c) of Regulation Y and to the underwriting, as a reinsurer, credit life and credit Board’s authority to require such modification or accident and health insurance sold in connection termination of the activities of a holding company with Bank’s direct instalment loan and direct or any of its subsidiaries as the Board finds neces­ open-end credit programs. Inasmuch as the subject sary to assure compliance with the provisions and proposal involves engaging in this activity de novo, purposes of the Act and the Board’s regulations and consummation of this transaction would not have orders issued thereunder, or to prevent evasion any adverse effect upon existing or potential com­ thereof. petition in any relevant market. This transaction shall be made not later than Credit life and credit accident and health insur­ three months after the effective date of this Order, ance is generally made available by banks and other unless such period is extended for good cause by lenders and is designed to assure repayment of a the Board or by the Federal Reserve Bank of loan in the event of death or disability of the Chicago pursuant to authority hereby delegated. borrower. In connection with its addition of the By order of the Board of Governors, effective underwriting of such insurance to the list of permis­ July 1, 1977. sible activities for bank holding companies, the Board stated: Voting for this action: Vice Chairman Gardner and Governors Wallich, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns and Governor Coldwell. To assure that engaging in the underwriting of credit life and credit accident and health insurance can (Signed) Griffith L. Garwood, reasonably be expected to be in the public interest, [seal] Deputy Secretary of the Board. the Board will only approve applications in which an applicant demonstrates that approval will benefit the consumer or result in other public benefits. Normally such a showing would be made by a pro­ %Prima facie rates are the maximum rates allowed by the State for particular types of insurance coverage. Where no prima facie jected reduction in rates or increase in policy bene­ rate exists for a type of coverage, the insurance company may fits due to bank holding company performance of apply to the State insurance department for approval of a proposed this service. (12 C.F.R. § 225.4(a)(10), n. 7) rate. 3Applicant has stated that it anticipates that it will be necessary to raise the rate it charges open-end credit customers for credit JAI1 banking data are as of June 30, 1976. accident and health insurance if this application is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 Federal Reserve Bulletin □ August 1977 National Detroit Corporation, Applicant, the largest banking organization in Detroit, Michigan Michigan, controls six banks, with total deposits of approximately $5.1 billion, representing approxi­ Order Approving Acquisition of mately 15.8 per cent of the total deposits in com­ Grand Traverse Mortgage Company, Inc. mercial banks in the State.2 Company has total National Detroit Corporation, Detroit, Michigan tangible assets valued at approximately $15,000. (“Applicant”), a bank holding company within the Applicant proposes to acquire these assets, lease meaning of the Bank Holding Company Act the premises currently utilized by Company, and (“Act”), has applied for the Board’s approval, employ Company’s two officers. under § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) Company’s sole office is located in Traverse and § 225.4(b)(2) of the Board’s Regulation Y (12 City. Its activities are limited to that of a mortgage CFR § 225.4(b)(2)), to acquire substantially all of broker as it does not have the capability of servicing the assets of Grand Traverse Mortgage Company, a mortgage portfolio and does not have the capital Inc., Traverse City, Michigan (“Company”), a to qualify as an FHA-Approved Mortgagee. Thus, mortgage broker, through a subsidiary corporation, Company must be regarded as a relatively insignifi­ NBD Mortgage Corporation, Birmingham, Michi­ cant competitor in the relevant geographic market.3 gan (“NBD”). Although title to all of the stock of Applicant has no subsidiaries located in this market Company will remain in its current shareholders, and its closest office is approximately 130 air miles the acquisition of its assets will render Company south of Traverse City. No existing competition essentially a shell corporation and accordingly the would be eliminated by the proposed transaction, proposed acquisition of Company’s assets is treated and in view of Company’s size, the Board regards herein as an acquisition of Company. the acquisition of Company as a foothold entry by NBD is a mortgage banker that engages in the Applicant into this market. origination of mortgage loans for its own account Protestants contend, however, that Applicant’s and the account of others, and the servicing of such acquisition of Company will lead to unsound bank­ loans for permanent investors. NBD specializes in ing practices and decreased or unfair competition the origination and servicing of FHA, VA, and because the mortgage needs of the relevant market privately insured low down payment residential presently are overserviced and there is no need for mortgage loans. Although Company currently acts additional competitors, particularly an additional only as a mortgage broker,1 Applicant states that it competitor of Applicant’s size. There is little de­ will engage in the full range of mortgage banking mand for the low down payment mortgage loans activities presently performed by NBD upon con­ Applicant proposes to emphasize, according to summation of the proposed transaction and will Protestants. Consequently, Protestants believe, also emphasize FHA, VA, and privately insured Applicant will be required to offer conventional low down payment residential mortgage loans. The mortgages at lower interest rates than those pres­ origination and servicing of mortgage loans has ently charged by other lenders in the market even been determined by the Board to be closely related though the market’s interest rate for such loans is to banking (12 CFR § 225.4(a)(1) and (3)). already quite competitive. Applicant’s prospects Notice of the application, affording opportunity for success are thus marginal, Protestants state, and for interested persons to submit comments and other financial intermediaries in the market could views on the public interest factors, has been duly be endangered by Applicant’s entry. published (42 Fed. Reg. 22402 (1977)). The time for It appears that the needs of the market are not filing comments and views has expired, and the being adequately served with regard to FHA and Board has considered the application and all com­ VA residential mortgage loans.4 ments received, including those of State Savings Bank, Frankfort, Michigan, and Northwestern Sav­ ings and Loan Association, Traverse City, Michi­ ‘Banking data are as of June 30, 1976. 3There is insufficient data to define a mortgage brokerage gan, (“Protestants”), in light of the public interest market in the Traverse City area for the type of loans currently factors set forth in § 4(c)(8) of the Act (12 U.S.C. brokered by Company. However, the origination of 1-4 family § 1843(c)(8)). mortgage loans provides a reasonable approximation of this mar­ ket. The relevant geographic market for such originations is approximated by Grand Traverse and Leelanau Counties, Michi­ gan. 4The Veterans Administration offers direct loans in Grand Company itself does not make mortgage loans in its own name Traverse and Leelanau Counties on the basis of its determination but rather operates as a middleman, on a fee basis, connecting that they are areas in which private funds are not available for the borrowers and lenders. making of VA loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 753 On balance, Applicant’s acquisition of Company Such activity has been determined by the Board would not have significant adverse effects on either to be closely related to banking (12 CFR § existing or potential competition. Indeed, it is ex­ 225.4(a)(6)(a)). pected that the proposed transaction will be pro- Notice of the application, affording opportunity competitive and that the additional services Appli­ for interested persons to submit comments and cant will provide to the market will represent a views on the public interest factors, has been duly significant public benefit. published (42 Fed. Reg. 22936 (1977)). The time for Based upon the foregoing and other con­ filing comments and views has expired, and the siderations reflected in the record, the Board has Board has considered the application and all com­ determined that the balance of the public interest ments received in the light of the public interest factors the Board is required to consider under factors set forth in § 4 (c)(8) of the Act (12 U.S.C. § 4(c)(8) is favorable. Accordingly, the application is § 1843 (c)(8)). hereby approved. This determination is subject to Applicant, the eleventh largest banking organiza­ the conditions set forth in § 225.4(c) of Regulation Y tion in Ohio, controls two banks with aggregate and to the Board’s authority to require such modifi­ deposits of $859.6 million representing 2.6 per cent cation or termination of the activities of a holding of the total deposits in commercial banks in the company or any of its subsidiaries as the Board State.1 Applicant has two nonbanking subsidiaries finds necessary to assure compliance with the engaged in credit life and disability reinsurance provisions and purposes of the Act and the Board’s activities and leasing activities, respectively. regulations and orders issued thereunder, or to pre­ MFS (total assets of $1.8 million as of December vent evasion thereof. 31, 1976) is a wholly-owned subsidiary of the Mead The transaction shall be made not later than three Corporation, Dayton, Ohio, a multi-national manu­ months after the effective date of this Order, unless facturer of paper and paper-related products. Since such period is extended for good cause by the its inception in 1972, MFS has operated exclusively Board or by the Federal Reserve Bank of Chicago, for the purpose of leasing logging equipment to the pursuant to authority hereby delegated. Mead Corporation on a full-pay out basis. The Mead By order of the Board of Governors, effective Corporation, in turn, subleases the equipment on a July 5, 1977. full-pay out basis to independent logging contractors who supply the Mead Corporation’s paper milling Voting for this action: Vice Chairman Gardner and operations with logs in five States. Governors Wallich, Jackson, Partee, and Lilly. Absent Although Applicant’s subsidiaries engage in leas­ and not voting: Chairman Burns and Governor Coldwell. ing activities already, it does not appear that any (Signed) Ruth A. Reister, significant existing competition would be elimi­ [seal] Assistant Secretary of the Board. nated as a result of this acquisition because MFS’s leasing activities are small in scale and limited in scope. MFS is not likely to develop into an active general competitor in the leasing industry, since it Winters National Corporation, appears that if the Mead Corporation were to retain Dayton, Ohio control of MFS, it would continue to limit MFS’s operations and would not expend the resources Order Approving necessary to develop an experienced leasing staff at Acquisition of Mead Financial Services, Inc. MFS. Although Applicant possesses the legal au­ Winters National Corporation, Dayton, Ohio, a thority and the financial capability to lease logging bank holding company within the meaning of the equipment, it is not likely to commence this type of Bank Holding Company Act, has applied for the leasing on a de novo basis because demand for this Board’s approval, under § 4(c)(8) of the Act (12 type of leasing appears limited. Thus, it appears U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board’s that no significant competition presently exists or Regulation Y (12 CFR § 225.4(b)(2)), to acquire would develop between MFS and Applicant. Ac­ indirectly through its wholly-owned subsidiary, cordingly, the Board finds that Applicant’s acquisi­ Winters National Leasing Corp., all of the outstand­ tion of MFS would not have any significant effect ing stock of Mead Financial Services, Inc., Dayton, upon existing or future competition. Ohio (“MFS”), a company that engages in the It appears that consummation of this proposal activity of leasing personal property (primarily heavy logging equipment) on a full-pay out basis. 1A11 banking data are as of December 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin □ August 1977 would not result in any undue concentration of Central National Bancshares, Inc., resources, conflicts of interests, unsound banking Des Moines, Iowa practices, or any other adverse effects on the public Order Approving Acquisition interest. Applicant would operate MFS as a sub­ by Merger of First Kansas Financial, Inc. sidiary of its existing leasing subsidiary and MFS would continue to service the Mead Corporation’s Central National Bancshares, Inc., Des Moines, requirements, thereby insuring the continued avail­ Iowa, a bank holding company within the meaning ability of subleasing arrangements to Mead Corpo­ of the Bank Holding Company Act, has applied for ration’s logging contractors. As an affiliate of Ap­ the Board’s approval under section 4(c)(8) of the plicant, MFS would be able to obtain lower cost Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) capital and could enable the Mead Corporation to of the Board’s Regulation Y (12 CFR offer Mead Corporation’s logging contractors a § 225.4(b)(2)) to acquire by merger First Kansas greater variety of subleasing terms and conditions. Financial, Inc. (“Company”), Wichita, Kansas. In the Board’s judgment, any competition between Company, through its wholly-owned subsidiary, Applicant and MFS that would be eliminated as a First Mortgage Investment Company (“FMIC”), result of this proposal is outweighed, under the Kansas City, Missouri, principally engages in circumstances, by the public benefits that will re­ mortgage banking, including making and acquiring, sult from MFS’s affiliation with Applicant. for its own account and for the accounts of others, Based upon the foregoing and other con­ loans and extensions of credit secured by siderations reflected in the record, the Board has mortgages and deeds of trust on real property, and determined that the balance of the public interest servicing loans and other extensions of credit for factors the Board is required to consider under any person. FMIC also acts as agent and broker for § 4(c)(8) is favorable. Accordingly, the application is the sale of insurance.1 The Board has determined hereby approved. This determination is subject to these activities to be closely related to banking (12 ilie conditions set forth in § 225.4(c) of Regulation Y CFR § 225.4(a)(1), (3), and (9)).. and to the Board’s authority to require such modifi­ Notice of the application, affording an opportu­ cation or termination of the activities of a holding nity for interested persons to submit comments and company or any of its subsidiaries as the Board views on the public interest factors, has been duly finds necessary to assure compliance with the pro­ published (42 Fed. Reg. 24313). The time for filing visions and purposes of the Act and the Board’s comments and views has expired, and the Board regulations and orders issued thereunder, or to has considered the application and all comments prevent evasion thereof. received in light of the public interest factors set The transaction shall be made not later than three forth in section 4(c)(8) of the Act. months after the effective date of this Order, unless Applicant, the fifth largest banking organization such period is extended for good cause by the in the State of Iowa, controls four banks with Board or by the Federal Reserve Bank of Cleve­ aggregate deposits of $338.5 million, representing land, pursuant to authority hereby delegated. approximately three per cent of the total deposits in By order of the Board of Governors, effective commercial banks in the State.2 Company engages July 6, 1977. Applicant proposes to continue to engage, through FMIC, in only those insurance activities that are permissible under section 225.4(a)(9) of the Board’s Regulation Y and are consistent with a recent decison of the United States Court of Appeals for the Fifth Circuit, Alabama Association of Insurance Agents v. Board of Governors, 533 F.2d 224 (1976). Specifically, FMIC proposes to act as an insurance agent and broker selling credit life, accident Voting for this action: Vice Chairman Gardner and and health, credit disability, mortgage redemption, and mortgage Governors Wallich, Coldwell, Jackson, and Partee. Ab­ cancellation insurance directly related to loans and extensions of sent and not voting: Chairman Burns and Governor Lilly. credit made by FMIC, and selling generally property damage and casualty insurance to Applicant’s subsidiary banks. Mortgage redemption and mortgage cancellation insurance are variations of declining-term life and accident and health insurance contracted for in connection with long-term extensions of credit, such as those usually secured by a mortgage on real estate or a deed of trust, made by FMIC. FMIC will discontinue all insurance ac­ tivities, other than those enumerated herein, before consumma­ (Signed) Ruth A. Reister, tion of the proposed merger. 2Banking data are as of June 30, 1976, unless otherwise [seal] Assistant Secretary of the Board. indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 755 in no direct activities except investing corporate of the markets served by each, and the large funds, and servicing, paying, and redeeming out­ number of alternative sources for mortgage loans in standing face-amount certificates it formerly is­ the Kansas City market, the Board concludes that sued.3 Before consummation of the proposed approval of the application will not result in any merger, Company will form a separate subsidiary adverse effects on existing competition. Moreover, under the name “FKF, Inc.” This company will no significant potential competition would be fore­ register under the Investment Company Act of closed by consummation of the proposed merger. 1940, and, in the event of approval by the Securities For similar reasons, it appears that no adverse and Exchange Commission, will perform these competitive effects will result from the continuation functions. The investment power of FKF, Inc. will by FMIC, after the proposed merger, of permissible be limited to shares representing not more than five insurance activities. per cent of any company, in accordance with sec­ There is no evidence in the record indicating that tion 4(c)(7) of the Bank Holding Company Act, consummation of the proposed merger would result which permits the ownership of shares of invest­ in undue concentration of resources, conflicts of ment companies by bank holding companies. FKF, interests, unsound banking practices, or other ad­ Inc. will be funded for the sole purpose of liquidat­ verse effects, and it appears that consummation of ing Company’s liability under previously issued the proposed merger would result in significant debt securities, and FKF, Inc. will not accept public benefits. The merger is expected to further funds for investment, issue additional secur­ strengthen Applicant’s financial condition, to ities, lend money on outstanding securities, pay create a well-capitalized organization, and to enable annuities, or engage in other business. Applicant to strengthen further the capital bases of Company’s principal indirect activities are the its subsidiary banks, which it has undertaken to do. mortgage banking activities conducted by its sub­ The public would also benefit from the infusion of sidiary, FMIC. FMIC is the 288th largest mortgage managerial expertise into Applicant that would re­ banking company in the United States based upon sult from the merger, and Applicant’s ability to the size of its mortgage servicing portfolio.4 FMIC offer financing expertise and outlets for large, long­ operates its sole office in a market approximated by term real estate loans to customers in the areas the Kansas City Standard Metropolitan Statistical served by its banks. Area (“SMSA”).5 In that market Company com­ FMIC formerly engaged in real estate develop­ petes with a variety of financial institutions that ment activities that are impermissible tor a subsid­ originate and service commercial and residential iary of a bank holding company. FMIC has termi­ mortgage loans. All of Applicant’s subsid­ nated this activity, however, and is now in the iary banks are engaged in extending loans process of disposing of real property acquired in secured by permanent mortgages on residential connection with the activity. The Board has not property. These activities are primarily confined, determined that holding real property for sale is a however, to localized markets within the State of permissible activity for bank holding companies, Iowa, and Applicant’s subsidiary banks neither and FMIC accordingly will completely dispose of derive nor service any mortgage loans from the its real estate holdings at the earliest practicable market area served by FMIC. Given FMIC’s small date, but in no event later than two years after the size and limited scope of operations, the limited and effective date of this Order. localized nature of Applicant’s subsidiary banks’ Based upon the foregoing and other con­ mortgage loan activities, the geographic separation siderations reflected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under 3Company and Applicant both act as transfer agents for their section 4(c)(8) is favorable. Accordingly, the appli­ own respective shares. Upon merger into Applicant and cancella­ tion of Company’s shares, Company will cease to engage in this cation is hereby approved subject to the conditions activity. Applicant will continue to act as transfer agent for that FMIC (1) before consummation of the merger, Applicant’s shares. discontinue insurance agency and brokerage ac­ 4 As of June 30, 1976, FMIC had mortgage originations out­ standing in the approximate amount of $17.2 million, and was tivities not permissible for bank holding companies, servicing mortgages totaling approximately $78.5 million. and (2) dispose of its real estate holdings at the 5 The Kansas City SMSA is comprised of Johnson and Wyan­ earliest practicable time, but in no event later than dotte Counties in Kansas and Jackson, Platte, Clay, and northern Cass Counties in Missouri. As of June 30, 1976, approximately 99 two years after the effective date of this Order. This per cent of the dollar volume of mortgages originated by FMIC and determination is also subject to the conditions set 88 per cent of its servicing portfolio involved properties in the first three of these six counties. forth in section 225.4(c) of Regulation Y and to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 Federal Reserve Bulletin □ August 1977 Board’s authority to require such modification or factors that are considered in acting on this applica­ termination of the activities of a holding company tion are set forth in § 3(c) of the Act (12 U.S.C. or any of its subsidiaries as the Board finds neces­ § 1842(c)). Applicant has also applied, pursuant to sary to assure compliance with the provisions and § 4(c)(8) of the Bank Holding Company Act (12 purposes of the Act and the Board’s regulations and U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Board’s orders issued thereunder, or to prevent evasion Regulation Y, for permission to continue to act as thereof. The transaction shall be made not later agent or broker with respect to the sale of decreas­ than three months after the effective date of this ing term credit life insurance, credit accident and Order, unless such period is extended for good health disability insurance and property damage cause by the Board or by the Federal Reserve Bank insurance directly related to extensions of credit by of Chicago, pursuant to authority hereby delegated. Bank. Such activities have been determined by the By order of the Board of Governors, effective Board to be closely related to banking (12 CFR July 13, 1977. §§ 225.4(a)(9)(H)).2 Notice of the applications, affording opportunity Voting for this action: Chairman Burns and Governors for interested persons to submit comments and Gardner, Wallich, Jackson, and Partee. Absent and not views, has been given in accordance with §§ 3 and 4 voting: Governors Coldwell and Lilly. of the Act (42 Federal Register 20664). The time for filing comments and views has expired, and the (Signed) Ruth A. Reister, Board has considered the applications and all com­ [seal] Assistant Secretary of the Board. ments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. § 1842(c)) and the considerations specified in § 4 (c)(8) of the Act (12 U.S.C. § 1843(c)(8)). Bank, with deposits of $40.2 million,3 is the thirteenth largest of forty-one banks in the relevant banking market4 and controls 2 per cent of the total market deposits. Upon acquisition of control of Order Under Sections 3 And 4 of the Bank, Applicant would control the 29th largest Bank Holding Company Act banking organization in Nebraska, holding 0.6 per cent of the total commercial bank deposits in the State.5 The proposed transaction is merely a re­ Preferred Management Company, structuring of the ownership interest of Applicant’s Omaha, Nebraska principal in Bank, and the Board finds that con­ Order Approving summation of the proposal would not eliminate Formation of Bank Holding Company and existing or potential competition or increase the Engaging in Insurance Agency Activities concentration of banking resources in the relevant market. Accordingly, competitive considerations Preferred Management Company, Omaha, Ne­ are consistent with approval of the application. braska, has applied for the Board’s approval under § 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) to become a bank holding company through acquisition of an additional 30,000 shares or 60 per cent of the voting shares of * Applicant also provides management consulting and invest­ North Side Bank, Omaha, Nebraska (“Bank”). ment advice to Bank and leases real and personal property to Bank. Upon consummation of the acquisition of additional shares Applicant presently owns 10,000 shares or 20 per of Bank by Applicant, these activities will be exempt from the cent of the outstanding voting shares of Bank.1 The prohibitions of § 4 under § 4(c)(1)(A) and § 4(c)(1)(C) of the Act (12 U.S.C. § 1843(c)(1)(A) and (C)). 3 All banking data are as of December 31, 1976. 4 The relevant banking market is approximated by Douglas and Sarpy Counties in Nebraska and Pottawattamie County in Iowa. 5 One of Applicant’s principals and largest shareholder is also a Applicant registered as a bank holding company in 1972, director and member of the Executive Committee of First Na­ apparently on the premise that Applicant controlled Bank by tional of Nebraska, Inc., Omaha, Nebraska, as well as its virtue of the fact that it owned 20 per cent of Bank’s outstanding subsidiary bank, The First National Bank of Omaha, Omaha, voting shares, and had the right to purchase an additional 27 per Nebraska. The Board has received a commitment that Applicant’s cent of Bank’s shares. Although a rebuttable presumption that principal will resign his positions as director, officer and employee Applicant controls Bank exists under § 225.2(b) of the Board’s of Applicant prior to consummation of Applicant’s acquisition of Regulation Y (12 CFR § 225.2(b)) the Board has made no formal Bank so that a violation of the provisions of the Board’s Regula­ determination that Applicant controls Bank. tion L (12 CFR 212) will not occur. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 757 The financial resources of Applicant, which are Federal Reserve Bank of Kansas City pursuant to dependent upon those of Bank, are considered to be delegated authority. The approval of Applicant’s satisfactory, and future prospects appear favorable. insurance activities is subject to the conditions set While Applicant would incur a sizable acquisition forth in section 225.4(c) of Regulation Y and to the debt as a result of this proposal, it appears that Board’s authority to require reports by, and make Applicant will be able to meet its debt service examinations of, holding companies and their sub­ requirements without adversely affecting the finan­ sidiaries and to require such modification or termi­ cial position of Bank. Furthermore, the managerial nation of the activities of a bank holding company resources of Applicant and Bank are regarded as or any of its subsidiaries as the Board finds neces­ satisfactory. Thus, considerations relating to bank­ sary to assure compliance with the provisions and ing factors are consistent with approval. purposes of the Act and the Board’s regulations and While no major changes are contemplated in orders issued thereunder, or to prevent evasion Bank’s services and it appears that the needs of thereof. Bank’s customers are being adequately met, con­ By order of the Board of Governors, effective siderations relating to convenience and needs of the June 22, 1977. community to be served are consistent with ap­ proval. Accordingly, it is the Board’s judgment that Applicant’s proposal to form a bank holding com­ Voting for this action: Vice Chairman Gardner and pany would be consistent with the public interest Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Bums. and that the application should be approved. In connection with its application to become a (Signed) Ruth A. Reister, bank holding company, Applicant has also applied [seal] Assistant Secretary of the Board. to continue to act as an agent or broker with respect to the sale of decreasing term life insurance, credit accident and disability insurance and property damage insurance directly related to extensions of credit by Bank. Since Applicant presently engages in such activity, it does not appear that approval of Applicant’s proposal would have any significant Prior and Final C ertifications effect on existing or potential competition. On the Pursuant to the Bank Holding other hand, approval of the application would as­ Company Tax Act of 1976 sure customers of Bank of the continuation of a convenient source of such insurance services. Fur­ thermore, there is no evidence in the record indicat­ Educators Investment Company of Kansas, Inc., ing that consummation of the proposal would result Emporia, Kansas in any undue concentration of resources, unfair competition, conflicts of interest, unsound banking [Docket No. TCR 76-116] practices or other adverse effects on the public Educators Investment Company of Kansas, Inc., interest. Emporia, Kansas (“Educators”), has requested a Based upon the foregoing and other con­ prior certification pursuant to § 6158(a) of the siderations reflected in the record, the Board has Internal Revenue Code (the “Code”), as amended determined, in accordance with the provisions of by § 3(a) of the Bank Holding Company Tax Act of section 4(c)(8) of the Act, that consummation of this 1976 (the “Tax Act”), that the sale on November 1, proposal can reasonably be expected to produce 1975, by Flint Hills Manor, Inc., Emporia, Kansas benefits to the public that outweigh possible adverse (“Flint Hills”), a wholly-owned subsidiary of Edu­ effects and that the application to engage in credit- cators, of substantially all of the assets of Flint related insurance activities should be approved. Hills, was necessary or appropriate to effectuate § 4 Accordingly, the applications are approved for of the Bank Holding Company Act (12 U.S.C. the reasons summarized above. The acquisition of § 1843) (“BHC Act”). Educators has also requested Bank shall not be made (a) before the thirtieth a final certification pursuant to § 6158(c)(2) of the calendar day following the effective date of this Code that Educators has (before the expiration of Order or (b) later than three months after the the period prohibited property is permitted under effective date of this Order, unless such period is the BHC Act to be held by a bank holding com­ extended for good cause by the Board or by the pany) disposed of all the property the disposition of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin □ August 1977 which is necessary or appropriate to effectuate real property of approximately 5 acres and the section 4 of the BHC Act.1 improvements thereon known as Flint Hills Manor In connection with this request, the following Nursing Home, situated on the east side of the 1600 information is deemed relevant for purposes of block of Wheeler Street, Emporia, Kansas, includ­ issuing the requested certification:2 ing plans, specifications and architectural ren­ 1. Educators is a corporation organized under derings prepared for a 60-bed expansion to the the laws of the State of Kansas on December 22, already existing building, together with all the furni­ 1960. Flint Hills is a corporation organized under ture, fixtures, equipment, general and medical the laws of the State of Kansas. Educators acquired supplies and usual inventory as consistent with the 20,000 shares, representing 100 per cent of the normal operation of a nursing home as required by outstanding shares, of Flint Hills on June 1, 1970. the State Health Department. In exchange for such 2. On June 5, 1965, Educators acquired assets, Rieger paid to Flint Hills $150,000 in cash ownership and control of 33,445 shares, represent­ and assumed three outstanding mortgages on the ing 55.7 per cent of the outstanding voting shares, above-described real property in the aggregate of Citizens National Bank & Trust Company, Em­ amount of $313,741.85. Under the terms of the poria, Kansas (“Bank”). instalment sales contract, the remainder is to be 3. Educators became a bank holding com­ paid to Flint Hills in monthly payments of $1,500 at pany on December 31, 1970, as a result of the 8.5 per cent per annum on the unpaid balance, with enactment of the 1970 Amendments to the BHC Act the remaining unpaid balance due at the end of 5 by virtue of its ownership and control at that time of years, provided that Rieger may pay the remaining more than 25 per cent of the outstanding voting unpaid balance to Flint Hills in full at any time shares of Bank, and it registered as such with the without penalty. Flint Hills holds a fourth mortgage Board on September 29, 1971. Educators would on such property. have been a bank holding company on July 7, 1970, 6. Flint Hills does not engage in any activity, and if the BHC Act Amendments of 1970 had been in it remains in existence for the sole purpose of effect on such date, by virtue of its ownership and holding Rieger’s note and receiving payments from control on that date, of more than 25 per cent of the Rieger under the terms of the instalment sales outstanding voting shares of Bank. On November contract. 1, 1975, Educators owned and controlled 33,445 7. Rieger is not an officer, director (including shares of Bank, representing 55.7 per cent of the honorary or advisory director), or employee with outstanding voting shares of Bank. policy-making functions of Educators or any of its 4. On November 1, 1975, Educators held subsidiaries. Rieger does not hold any interest in property acquired by it on or before July 7, 1970, Educators or any of its subsidiaries. Other than as a the disposition of which would be necessary or result of his acquisition of the assets of Flint Hills, appropriate to effectuate § 4 of the BHC Act if Rieger is not indebted to Educators or any of its Educators were to continue to be a bank holding subsidiaries. company beyond December 31, 1980, which On the basis of the foregoing information, it is property is “prohibited property” within the mean­ hereby certified that: ing of §§ 6158(f)(2) and 1103(c) of the Code. (A) at the time of the sale by Flint Hills of 5. On November 1, 1975, Flint Hills sold sub­ substantially all of its assets to Rieger, Educators stantially all of its assets to Robert W. Rieger was a qualified bank holding corporation, within the (“Rieger”) for $630,000. Such assets consisted of meaning of § 6158(f)(1) and subsection (b) of section 1103 of the Code, and satisfied the requirements of that subsection; 1 Pursuant to §§ 2(d)(2) and 3(e)(2) of the Tax Act, in the case of (B) the assets sold by Flint Hills were “prohib­ any sale that takes place on or before December 31, 1976 (the 90th day after the date of the enactment of the Tax Act), the certifica­ ited property” within the meaning of §§ 6158(f)(2) tion described in § 6158(a) shall be treated as made before the sale, and 1103(c) of the Code; and the certification described in § 6158(c)(2) shall be treated as (C) the sale of substantially all the assets of Flint made before the close of the calendar year following the calendar year in which the last such sale occurred, if application for such Hills was necessary or appropriate to effectuate § 4 certification was made before the close of December 31, 1976. of the BHC Act; and Educators’ application for such certifications was received by the (D) Educators has (before the expiration of the Board on December 28, 1976. ‘This information derives from Educators’ correspondence period prohibited property is permitted under the with the Board concerning its request for certification, Educators’ BHC Act to be held by a bank holding company) Registration Statement filed with the Board pursuant to the BHC Act, and other records of the Board. disposed of all of the property the disposition of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 759 which was necessary or appropriate to effectuate 1. UFC is a corporation organized under the § 4 of the BHC Act. laws of the State of Colorado on March 25, 1966. This certification is based upon the representa­ 2. On August 28, 1969, UFC acquired ownership tions made to the Board by Educators and upon the and control of 990 shares, representing 100 per cent facts set forth above. In the event the Board should of the outstanding voting shares, of UNB Corpora­ hereafter determine that facts material to this cer­ tion, Denver, Colorado (“UNB”).3 On that date tification are otherwise than as represented by UNB owned and controlled 57,360 shares, repre­ Educators, or that Educators has failed to disclose senting 95.6 per cent of the outstanding voting to the Board other material facts, it may revoke this shares, of Union National Bank (later United Bank certification. & Trust), Denver, Colorado (“Bank”). By order of the Board of Governors acting 3. UFC became a bank holding company on through its General Counsel, pursuant to delegated December 31, 1970, as a result of the 1970 Amend­ authority (12 CFR § 265.2(b)(3)), effective July 15, ments to the BHC Act, by virtue of its direct and 1977. indirect ownership and control at that time of more than 25 per cent of the outstanding voting shares of (Signed) Ruth A. Reister, UNB, and by virtue of its indirect ownership and [seal] Assistant Secretary of the Board. control at that time, through UNB, of more than 25 per cent of the outstanding voting shares of Bank, and it registered as such with the Board on July 2, 1971.4 UFC would have been a bank holding com­ Union Financial Corporation, pany on July 7, 1970, if the BHC Act Amendments Denver, Colorado of 1970 had been in effect on such date, by virtue of [Docket No. TCR 76-126] its direct and indirect ownership and control on that date of more than 25 per cent of the outstanding Union Financial Corporation, Denver, Colorado voting shares of UNB and Bank, respectively. At (“UFC”) (formerly Stuarco Oil Company, Inc. the time of each of the sales described in paragraph (“Stuarco”)), has' requested a prior certification 4 below UFC directly and indirectly owned and pursuant to § 6158(a) of the Internal Revenue Code controlled more than 25 per cent of the outstanding (the “Code”), as amended by § 3(a) of the Bank voting shares of UNB and Bank, respectively. Holding Company Tax Act of 1976 (the “Tax 4. On or about May 31, 1973, UFC sold substan­ Act”), that its sales of various oil and gas properties tially all of its drilling rigs and related equipment to during 1973 and 1974 were necessary or appropriate Exeter Drilling Contractors, Denver, Colorado, for to effectuate the policies of § 4 of the Bank Holding cash. On October 1, 1973, after receiving written Company Act (12 U.S.C. § 1843) (“BHC Act”). bids, UFC sold substantially all of its producing oil UFC has also requested a final certification pur­ and gas properties and its undeveloped oil and gas suant to § 6158(c)(2) of the Code that UFC has properties to the highest bidder, Terra Resources, (before the expiration of the period prohibited Houston, Texas, for cash.5 Shortly thereafter, vari­ property is permitted to be held under the BHC Act ous minor mineral interests were sold to the major by a bank holding company) disposed of all the stockholders of UFC at an appraised value of property the disposition of which is necessary or $23,000. Concurrently, certain other office furni­ appropriate to effectuate § 4 of the BHC Act.1 In connection with these requests, the following information is deemed relevant, for purposes of tration Statement filed with the Board pursuant to the BHC Act, issuing the requested certification:2 and other records of the Board. 3UNB engages in no other activity than the holding of Bank’s stock. 4UNB similarly became a bank holding company on December *Pursuant to §§ 2(d)(2) and 3(e)(2) of the Tax Act, in the case of 31,1970, by virtue of its direct ownership and control of more than any sale that takes place on or before December 31, 1976 (the 90th 25 per cent of the outstanding voting shares of Bank, and it day after the date of the enactment of the Tax Act), the certifica­ registered as such with the Board on December 30, 1971. tion described in § 6158(a) shall be treated as made before the sale, 5In connection with its request for this certification, UFC and the certification described in § 6158(c)(2) shall be treated as submitted a copy of its Tax Return Schedule showing the oil and made before the close of the calendar year following the calendar gas properties and leasehold equipment it sold during 1973-74. year in which the last such sale occurred, if application for such Those properties and equipment were located in the following certification was made before the close of December 31, 1976. States: Colorado, Nebraska, Wyoming, Texas, Oklahoma, UFC’s application for such certification was postmarked Decem­ Louisiana and Montana. In addition, pursuant to § 1102(d) of the ber 31, 1976. Code, UFC submitted an itemization of all oil and gas leases and ‘This information derives from UFC’s correspondence with the related property and equipment divested during the period 1970- Board concerning its request for this certification, UFC’s Regis- 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin □ August 1977 ture, fixtures, and leasehold improvements were hereafter determine that facts material to this cer­ sold to one of UFC’s stockholders at an indepen­ tification are otherwise than as represented by dently appraised value. All of the foregoing transac­ UFC, or that UFC has failed to disclose to the tions were for cash. Board other material facts, it may revoke this 5. On each of the dates set forth in paragraph 4, certification. UFC held property acquired by it on or before July By order of the Board of Governors acting 7, 1970, the disposition of which was necessary or through its General Counsel, pursuant to delegated appropriate to effectuate § 4 of the BHC Act if UFC authority (12 C.F.R. § 265.2(b)(3)), effective July were to continue to be a bank holding company 29, 1977. beyond December 31, 1980, which property was “prohibited property” within the meaning of (Signed) Griffith L. Garwood, §§ 6158(b)(1) and 1103(c) of the Code. [seal] Deputy Secretary of the Board. 6. Neither UFC nor any subsidiary of UFC holds any interest in any of the purchasers of the property described in paragraph 4 (the “Purchasers”), or in Westland Banks, Inc., any subsidiary of any of the Purchasers. Lakewood, Colorado 7. None of the Purchasers, or any subsidiary of any of the Purchasers, holds any interest in UFC or [Docket No. TCR 76-113] any subsidiary of UFC. Westland Banks, Inc., Lakewood, Colorado 8. No officer, director (including honorary or (“WBI”), formerly Weerva, Inc., has requested a advisory director) or employee with policy-making prior certification pursuant to § 6158(a) of the functions of UFC or any subsidiary of UFC also Internal Revenue Code (the “Code”), as amended holds any such position with any of the Purchasers by § 3(a) of the Bank Holding Company Tax Act of or any subsidiary of any of the Purchasers. 1976 (the “Tax Act”), that its sale of the trade 9. UFC does not control in any manner the name, good will, appointments, supplies, files, rec­ election of a majority of the directors, or exercise a ords, customer lists, transferable insurance controlling influence over the management or policies, outstanding contracts, accounts receivable policies, of any of the Purchasers or any subsidiary and all other property except cash, bank accounts, of any of the Purchasers. and fixed assets of its travel agency, Westland 10. UFC does not presently own or control any Travel Service, to Westland Travel Service, Inc. on property the disposition of which would be neces­ June 1, 1976, was necessary or appropriate to sary or appropriate to effectuate § 4 of the BHC Act effectuate § 4 of the Bank Holding Company Act if UFC were to remain a bank holding company (12 U.S.C. § 1843) (“BHC Act”).1 beyond December 31, 1980. In connection with this request, the following On the basis of the foregoing information and information is deemed relevant for purposes of other facts of record, it is hereby certified that: issuing the requested certification:2 1. WBI, formerly Weerva, Inc. (“Weerva”), (A) at the time of the sales described in para­ was organized as a subsidiary of the Wheat Ridge graph 4 above, UFC was a qualified bank holding National Bank (“Bank”), Wheat Ridge, Colorado, corporation, within the meaning of § 6158(f)(1) and under the laws of the State of Colorado on Decem­ subsection (b) of section 1103 of the Code, and ber 27, 1967. In May 1968, Bank distributed all of satisfied the requirements of that subsection; the shares of Weerva to the shareholders of Bank. (B) the property sold by UFC as described in In July 1968, Weerva acquired Westland Travel paragraph 4 above was “prohibited property” Service from Bank. within the meaning of §§ 6158(f)(2) and 1103(c) of the Code; (C) UFC has (before the expiration of the period prohibited property is permitted under the BHC 1 Pursuant to § 3(e)(2) of the Tax Act, in case of any sale that took place on or before December 31, 1976 (the 90th day after the Act to be held by a bank holding company) dis­ date of enactment of the Tax Act), the certification described in posed of all of the property the disposition of which § 6158(a) shall be treated as made before the sale if application for is necessary or appropriate to effectuate § 4 of the such certification was made before the close of business Decem­ ber 31, 1976. WBI’s application for such certification was received BHC Act. by the Board on December 27, 1976. This certification is based upon the representa­ *This information derives from WBI’s correspondence with the Board concerning its request for this certification, WBI’s Registra­ tions made to the Board by UFC and upon the facts tion Statement filed with the Board pursuant to the BHC Act and set forth above. In the event the Board should other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 761 2. On October 29, 1969, Weerva acquired 7. Neither WBI nor any subsidiary of WBI holds ownership and control of 39,196 shares, represent­ any interest in Westland Travel Service, Inc. ing 97.9 per cent of the outstanding voting shares, 8. Neither Westland Travel Service, Inc. nor any of Bank. shareholder of Westland Travel Service, Inc. holds 3. Weerva became a bank holding company on any interest in WBI or any subsidiary of WBI. December 31, 1970, as a result of the 1970 Amend­ 9. No officer, director (including honorary or ments to the BHC Act, by virtue of its ownership advisory director) or employee with policymaking and control at that time of more than 25 per cent of functions of WBI or any subsidiary of WBI holds the outstanding voting shares of Bank, and it regis­ any such position with Westland Travel Services, tered as such with the Board on July 6, 1971. Inc. Weerva would have been a bank holding company 10. WBI does not control in any manner the on July 7, 1970 if the BHC Act Amendments of 1970 election of a majority of the directors, or exercise a had been in effect on such date, by virtue of its controlling influence over the management or ownership and control on that date of more than 25 policies, of Westland Travel Service, Inc. per cent of the outstanding voting shares of Bank. On the basis of the foregoing information, it is Weerva changed its name to Westland Banks, Inc. hereby certified that: on November 10, 1972. On June 1, 1976, WBI (A) at the time of its sale of the Travel Service owned and controlled 100 per cent (less directors’ Assets WBI was a qualified bank holding corpora­ qualifying shares) of the outstanding voting shares tion, within the meaning of § 6158(f)(1) and subsec­ of Bank. tion (b) of § 1103 of the Code, and satisfied the 4. Westland Travel Service was owned and con­ requirements of that subsection; trolled by WBI on July 7, 1970 and it engaged in the (B) the Travel Service Assets were “prohibited business of providing general travel agency services property” within the meaning of §§ 6158(f)(2) and primarily for customers of WBI’s subsidiary banks. 1103(c) of the Code; The disposition of Westland Travel Service by WBI (C) the sale of the Travel Service Assets was was necessary or appropriate to effectuate § 4 of the necessary or appropriate to effectuate § 4 of the Act if WBI were to continue to be a bank holding BHC Act. company beyond December 31, 1980.3 This certification is based upon the representa­ 5. On June 1, 1976, WBI sold the trade name, tions made to the Board by WBI and upon the facts good will, appointments, supplies, files, records, set forth above. In the event the Board should customer lists, transferable insurance policies, out­ hereafter determine that facts material to this cer­ standing contracts, accounts receivable and all tification were otherwise than as represented by other property except cash, bank accounts, and WBI or that WBI has failed to disclose to the Board fixed assets of Westland Travel Services (the other material facts, it may revoke this certifica­ “Travel Service Assets”) to Westland Travel Ser­ tion. vices, Inc. for $84,944 in cash. By order of the Board of Governors acting 6. Westland Travel Services, Inc. is owned and through its General Counsel, pursuant to delegated controlled by a small group of individual investors, authority (12 CFR § 265.2(b)(3)), effective July including the manager of the agency, none of whom 21, 1977. is affiliated with WBI or its subsidiaries. 3On January 26, 1976, the Board determined that the operation of a travel agency was not a permissible nonbanking activity for (Signed) Ruth A. Reister, bank holding companies. 62 Federal Reserve Bulletin 148. [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Federal Reserve Bulletin □ August 1977 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During July 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 Northeast United Bancorp, First State Bank, 7/25/77 42 F.R. 38940 Inc. of Texas, Fort Worth, Bedford, Texas 8/1/77 Texas By Federal Reserve Banks During June or July 1977, applications were approved by 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 United Banks Corpora­ Hanover Bank and Boston 7/5/77 42 F.R. 36300 tion, Hanover, New Trust Company, 7/14/77 Hampshire Hanover, New Hampshire The Central Bancor­ The Central Security Cleveland 7/5/77 42 F.R. 37597 poration, Inc., National Bank of 7/22/77 Cincinnati, Ohio Lorain County, Lorain, Ohio Piedmont Bankgroup Piedmont Trust Bank, Richmond 6/30/77 42 F.R. 35220 Incorporated, Collinsville, Virginia; 7/8/77 Martinsville, and Bank of Carroll, Virginia Carroll, Virginia DETROITBANK Kentwood Bank, N.A., Chicago 7/7/77 42 F.R. 37865 Corporation, Detroit, Kentwood, Michigan 7/25/77 Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 763 PENDING CASES INVOLVING THE BOARD OF GOVERNORS* BankAmerica Corporation v. Board of Governors, Memphis Trust Company v. Board of Governors, filed May 1977, U.S.D.C. for the Northern Dis­ filed February 1976, U.S.D.C. for the Western trict of California. District of Tennessee. BankAmerica Corporation v. Board of Governors, First Lincolnwood Corporation v. Board of Gover­ filed May 1977, U.S.C.A. for the Ninth Circuit. nors, filed February 1976, U.S.C.A. for the First Security Corporation v. Board of Governors, Seventh Circuit. filed March 1977, U.S.C.A. for the Tenth Cir­ Roberts Farm, Inc. v. Comptroller of the Currency, cuit. et al., filed November 1975, U.S.D.C. for the Farmers State Bank of Crosby v. Board of Gover­ Southern District of California. nors, filed January 1977, U.S.C.A. for the Eighth Florida Association of Insurance Agents, Inc. v. Circuit. Board of Governors, and National Association National Automobile Dealers Association, Inc. v. of Insurance Agents, Inc. v. Board of Gover­ Board of Governors, filed November 1976, nors, filed August 1975, actions consolidated in U.S.C.A. for the District of Columbia. U.S.C.A for the Fifth Circuit. First Security Corporation v. Board of Governors, ttDavid R. Merrill, et al. v. Federal Open Market filed August 1976, U.S.C.A. for the Tenth Cir­ Committee of the Federal Reserve System, filed cuit. May 1975, U.S.D.C. for the District of Colum­ Central Wisconsin Bankshares, Inc. v. Board of bia, appeal pending, U.S.D.A. for the District Governors, filed June 1976, U.S.C.A. for the of Columbia. Seventh Circuit. Louis J. Roussel v. Board of Governors, filed April National Urban League, et al. v. Office of the 1975, U.S.D.C. for the Eastern District of Comptroller of the Currency, et al., filed April Louisiana. 1976, U.S.D.C. for the District of Columbia Georgia Association of Insurance Agents, et al. v. Circuit. Board of Governors, filed October 1974, Farmers & Merchants Bank of Las Cruces, New U.S.C.A. for the Fifth Circuit. Mexico v. Board of Governors, filed April 1976, Alabama Association of Insurance Agents, ?t al. v. U.S.C.A. for the District of Columbia Circuit. Board of Governors, filed July 1974, U.S.C.A. Grandview Bank & Trust Company v. Board of for the Fifth Circuit. Governors, filed March 1976, U.S.C.A. for the Bankers Trust New York Corporation v. Board of Eighth Circuit. Governors, filed May 1973, U.S.C.A. for the Association of Bank Travel Bureaus, Inc. v. Board Second Circuit. of Governors, filed February 1976, U.S.C. A. for the Seventh Circuit. *This list of pending cases does not include suits against the tDecisions have been handed down in these cases, subject to Federal Reserve Banks in which the Board of Governors is not appeals noted. named a party. tThe Board of Governors is not named as a party in this action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

765 Announcements REGULATION B: Interpretation from newly available benchmarks and in some cases from new estimating procedures derived from mate­ The Board of Governors of the Federal Reserve rials that were previously unavailable. System on August 4, 1977, issued an interpretation In general, all series are revised through Decem­ of the provision of its Regulation B (Equal Credit ber 1976, with estimates for subsequent months Opportunity) dealing with Federal or State derived from reports of representative samples of special-purpose credit programs. credit grantors. Seasonally adjusted series for each The Equal Credit Opportunity Act and Regulation of the lender groups reflect revised seasonal fac­ B provide that it is not illegal to deny credit solely tors. because the applicant does not qualify for credit Complete tables of revised data from January that is “expressly authorized by Federal or State 1970 are available upon request from the Mortgage law” for the benefit of an economically disadvan­ and Consumer Finance Section, Division of Re­ taged class of persons. An example of such a search and Statistics, Board of Governors of the special-purpose credit program would be one de­ Federal Reserve System, Washington, D.C. 20551. signed to benefit economically disadvantaged American Indians. It is not illegal to exclude non- Indian applicants for credit under such a program. DISCONTINUANCE The interpretation states that a credit program is OF BANK CREDIT PROXY considered to be “expressly authorized by Federal or State law” if it is authorized by the terms of a The Board of Governors has discontinued the pub­ Federal or State statute or by a regulation lawfully lication and construction of the bank credit proxy. promulgated by the Federal or State agency re­ In recent years the proxy—which is based solely sponsible for implementing the program. on data for member banks—has become increas­ When it proposed on May 10, 1977, the interpre­ ingly less representative of total bank credit, in tation now adopted, the Board announced that in its part because of the growth in importance of non­ opinion any determinations as to whether a Federal member banks and in part because the proxy does or State special-purpose credit program benefits an not include certain borrowings by banks from the economically disadvantaged class of persons are nonbank public. best made by the agency charged with the adminis­ tration of the loan program. In taking final action, the Board added that it is the responsibility of governmental agencies operat­ REVISED OTC STOCK LIST ing special-purpose loan programs to be sure that their regulations are consistent with relevant State The Board of Governors published a revised list of and Federal laws. Creditors will not violate Regula­ over-the-counter (OTC) stocks that are subject to tion B by complying with State or Federal special- its margin regulations, effective August 12, 1977. purpose loan program laws. The list supersedes the revised list of OTC margin stocks that was issued on December 30, 1976. Changes that have been made in the list, REVISION OF which now includes 1,106 OTC stocks, are as follows: CONSUMER CREDIT INFORMATION —195 stocks have been included for the first This issue of the Bulletin contains numerous time. revisions of previously published consumer instal­ —13 stocks previously on the list have been ment credit figures (pp. A42 and A43). These removed for substantially failing to meet the re­ changes are based primarily on information derived quirements for continued listing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin □ August 1977 —43 stocks have been removed because they are Robert E. Matthews as Assistant Secretary of the now listed on a national securities exchange or the Board for a 6-month period beginning August 1, companies were acquired by another firm. 1977. Mr. Matthews, Assistant General Auditor at The list is available on request from Publications the Federal Reserve Bank of Philadelphia, replaces Services, Division of Administrative Services, Ruth A. Reister who has returned to the Federal Board of Governors of the Federal Reserve Sys­ Reserve Bank of Minneapolis. Mr. Matthews holds tem, Washington, D.C. 20551. a B.S. from Western Kentucky University and an M.B.A. from Georgia State University. The Board has also announced the retirement of William W. Layton, Director of Equal Employment CHANGES IN BOARD STAFF Opportunity in the Office of Staff Director for The Board of Governors has announced the follow­ Management, effective August 1, 1977. ing appointments: Samuel H. Talley, Senior Economist in the Divi­ SYSTEM MEMBERSHIP: sion of Research and Statistics, to be Assistant Director in the Division of Banking Supervision and Admission of State Bank Regulation, effective July 18, 1977. Prior to joining the Board’s staff in 1970, Mr. Talley was Assistant The following bank was admitted to membership in and Associate Professor of Economics at the Uni­ the Federal Reserve System during the period July versity of Maine. He holds a B.A., M.B.A., and 16, 1977, through August 15, 1977: Ph.D. from Syracuse University and an M.A. from Montana the University of Michigan. Butte.....................First Citizens Bank of Butte Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

767 Industrial Production Released for publication August 15 than offset by weakness in basic metal materials, particularly steel. Nondurable goods materials are Industrial production in July increased by an esti­ estimated to have increased moderately. Output of mated 0.5 per cent to 139.0 per cent of the 1967 energy materials increased appreciably, reflecting a average. This followed rises of 0.7 and 0.9 per cent sharply greater than seasonal rise in electricity in June and May, respectively. There were rela­ generation. tively large increases in output of consumer durable goods and business equipment. These increases Seasonally adjusted, ratio scale, 1967=100 were partly offset by reductions in coal and copper output, due to strikes, and by a reduction in steel output. Total industrial production in the second quarter was 2.8 per cent above that in the first quarter, following revision of earlier estimates of production in May and June. It is estimated that in July pro­ duction was 6.4 per cent above a year earlier. Output of consumer durable goods rose 1.6 per cent in July, reflecting a large increase in auto­ motive products and a more moderate rise in home goods. Production of consumer nondurable goods again edged up only a little. Output of business equipment advanced by an estimated 1.2 per cent, reflecting, in part, a large increase in truck assem­ blies. Output of intermediate products, such as construction and business supplies, increased 0.8 per cent. Output of durable goods materials was reduced slightly in July, as further sizable gains in the pro­ duction of parts and components for consumer F.R. indexes, seasonally adjusted. Latest figures: July. durable goods and business equipment were more *Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 Per cent changes from— Industrial production 1977 Apr. May Junep Julye Month ago Year ago Ql to Q2 Total .............................................................................. 136.2 137.4 138.3 139.0 .5 6.4 2.8 Products, total ...................................................................... 136.1 137.1 138.0 138.9 .7 7.0 2.3 Final products .................................................................. 134.3 135.2 136.1 136.9 .6 7.3 2.5 Consumer goods .......................................................... 143.3 144.0 144.4 145.3 .6 6.2 1.8 Durable goods .......................................................... 151.7 152.4 155.0 157.5 1.6 11.1 3.4 Nondurable goods .................................................... 140.0 140.7 140.3 140.4 .1 4.2 1.2 Business equipment .................................................... 147.0 148.8 150.8 152.6 1.2 11.5 4.0 Intermediate products .................................................... 142.7 144.1 145.4 146.6 .8 6.5 1.6 Construction supplies .................................................. 137.4 138.9 140.2 141.0 .6 5.9 2.0 Materials ................................................................................ 136.3 137.8 138.8 139.1 .2 5.2 3.5 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 A25 Gross demand deposits of individuals, Policy Instruments 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 A11 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 □ July 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—Indexes and A69 GUIDE TO TABULAR PRESENTATION gross value AND STATISTICAL RELEASES A50 Housing and construction A51 Consumer and wholesale prices A52 Gross national product and income A53 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1976 1977 1977 Item Q3 Q4 Ql Q2 Mar. Apr. May June July Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 Member bank reserves 1 Total............................................................................... 2.7 4.4 2.7 3.0 -3.1 13.0 1.5 4.8 2 Required........................................................................ 2.4 4.0 3.0 3.5 -3.8 13.9 0.9 6.9 3 Nonborrowed............................................................... 2.6 4.8 2.6 1.9 -4.3 14.1 -3.1 2.9 Concepts of money 1 4 M-l................................................................................. 4.4 6.5 4.2 8.5 5.4 19.4 0.7 4.9 5 M-2................................................................................. 9.1 12.5 9.9 9.3 8.6 13.5 4.7 8.3 6 M-3................................................................................. 11.4 14.4 11.3 10.0 9.4 12.4 7.3 9.7 Time and savings deposits Commercial banks: 7 Total........................................................................... 7.0 12.2 12.5 8.3 6.7 6.9 8.3 13.2 8 Other than large CD’s............................................ 12.8 17.1 14.0 9.8 10.7 9.5 7.6 10.7 9 Thrift institutions 2..................................................... 14.8 17.3 13.4 11.1 10.9 10.5 11.1 11.7 10 Total loans and investments at commercial banks 3 6.9 10.8 8.8 11.9 10.0 14.0 10.3 8.9 Interest rates (levels, per cent per annum) Short-term rates 11 Federal funds 4......................................................................... 5.28 4.88 4.66 5.16 4.69 4.73 5.35 5.39 5.42 12 Treasury bills (3-month market yield) 5......................... 5.15 4.67 3.63 4.84 4.60 4.54 4.96 5.02 5.19 13 Commercial paper (90- to 119-day) 6.................................. 5.41 4.91 4.74 5.15 4.75 4.75 5.26 5.42 5.38 14 Federal Reserve discount 7.................................................... 5.50 5.39 5.25 5.25 5.25 5.25 5.25 5.25 5.25 Long-term rates Bonds: 15 U.S. Govt.8........................................................................ 7.90 7.54 7.62 7.68 7.74 7.67 7.74 7.64 7.60 16 State and local government 9............................................ 6.64 6.18 5.88 5.70 5.89 5.73 5.75 5.62 5.63 17 Aaa utility (new issue) io................................................... 8.48 8.15 8.17 8.25 8.26 8.33 8.21 8.14 18 Conventional mortgages 11................................................... 9.03 8.95 8.82 8.95 8.85 8.90 8.95 9.00 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 Bond Buyer series for 20 issues of mixed quality. M-3 equals M-2 plus deposits at mutual savings banks, savings and i o Weighted averages of new publicly offered bonds rated Aaa, Aa, loan associations, and credit union shares. and A by Moody’s Investors Service and adjusted to an Aaa basis. 2 Savings and loan associations, mutual savings banks, and credit Federal Reserve compilations. 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 □ August 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 May June July? June 15 June 22 June 29 July 6 July 13 July 10* July Up supplying reserve funds 1 Reserve Bank credit outstanding.... 112,694 109,453 113,970 103,365 111,518 117,210 117,495 113,160 113,223 112,251 ?, U.S. Govt, securities1....................... 99,023 95,337 98,359 90,289 97,194 101,992 102,127 97.435 96,869 97.338 3 Bought outright........................... 97,000 94,132 96,930 90,289 96,244 98,359 97,857 97.435 96,508 96.339 4 Held under repurchase agree­ ment ........................................... 2,023 1,205 1,429 950 3,633 A,HQ 361 999 7,259 7,312 7,611 7.059 7,165 7,878 7,934 7.423 7,491 7,590 6 Bought outright........................... 7,077 7,176 7,423 7.059 7,110 7,436 7,423 7.423 7,423 7,423 7 Held under repurchase agree- 182 136 188 55 442 511 68 167 8 Acceptances...................................... 489 228 213 52 203 565 528 37 56 207 9 Loans................................................. 200 262 336 223 111 334 265 160 406 295 10 Float................................................... 2,773 3,432 4,089 2,979 3,777 3,421 3,570 4,932 4,989 3,620 Other Federal Reserve assets.... 2,950 2,882 3,362 112,762 2,906 3,020 3,070 3,172 3,412 3,201 12 Gold stock............................................ 11,632 11,628 11,609 11,629 11,629 11,626 11,620 11,616 11,605 11,605 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......... 11,056 11,099 11,146 11,091 11,110 11,113 11,118 11,140 11,151 11,153 ABSORBING RESERVE FUNDS 15 Currency in circulation....................... 94,968 96,029 91,All 96,146 95,993 95,951 97,065 97,921 97,604 97,166 16 Treasury cash holdings....................... 442 437 431 434 440 441 441 439 427 423 Deposits, other than member bank reserves with F.R. Banks : 17 Treasury............................................ 10,997 7,057 8,843 1,320 8,690 14,058 12,560 9,022 6,783 8,000 Foreign............................................... 322 277 324 18 287 261 259 368 271 330 256 19 Other2................................................ 559 675 759 715 600 628 724 630 1,025 638 20 Other F.R. liabilities and capital.... 3,324 3,260 3,395 3,125 3,289 3,525 3,460 3,262 3,328 3,431 21 Member bank reserves with F.R. Banks................................................. 25,970 25,646 26,747 25,258 26,184 26,290 26,815 25,572 27,683 26,296 End-of-month figures Wednesday figures 1977 1977 May June July? June 15 June 22 June 29 July 6 July 13 July 10p July 21p SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding.... 111,838 117,679 113,896 105,657 115,783 117,750 111,357 111,612 115,584 113,779 23 U.S. Govt, securities1....................... 97,394 102,239 98,711 90.720 99,451 101,864 96.695 96.699 98,418 98,397 24 Bought outright........................... 96,560 98,163 96,381 90.720 96,709 98,310 96.695 96.699 95,891 96,834 25 Held under repurchase agree­ ment........................................... 834 4,076 2,330 1,1 Al 3,554 2,527 1,563 26 Federal agency securities................. 7,087 8,033 7,768 7.056 7,680 7,778 7.423 7,423 7,896 7,628 27 "Bought outright........................... 7,077 7,423 7,423 7.056 7,436 7,436 7.423 1,413 7,423 7,423 28 Held under repurchase agree­ ment ........................................... 10 610 345 244 342 473 205 29 Acceptances...................................... 108 621 393 49 399 456 41 32 211 268 30 Loans................................................. 400 260 788 974 1,214 606 185 383 222 514 31 Float................................................... 3,993 3,604 2,523 4,005 4,056 4,064 3,846 3,004 4,597 3,740 32 Other Federal Reserve assets___ 2,856 2,922 3,713 2,853 2,983 2,982 3,167 4,071 4,240 3,232 33 Gold stock............................................ 11,629 11,620 11,595 11,629 11,629 11,620 11,620 11,605 11,605 11,605 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......... 11,026 11,081 11,166 11,096 11,112 11,116 11,139 11,142 11,151 11,166 ABSORBING RESERVE FUNDS 36 Currency in circulation...................... 95,606 96,652 97,101 96,318 96,116 96,678 97,989 97,762 97,564 97,422 37 Treasury cash holdings....................... 433 440 423 435 441 441 438 439 427 421 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury............................................ 5,838 15,183 8,789 1,228 12,958 16,115 9,647 8,527 7,220 8,616 39 Foreign.............................................. 436 379 469 344 250 287 372 251 247 289 40 Other2................................................ 831 748 578 657 631 592 607 677 1,867 699 41 Other F.R. liabilities and capital... 3,539 3,616 3,606 3,173 3,348 3,526 3,159 3,288 3,383 • 3,495 42 Member bank reserves with F.R. Banks................................................. 29,009 24,562 26,892 27,427 25,981 24,048 23,105 24,616 28,833 26,809 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. uled to be bought back under matched sale-purchase transactions. Note.—For amounts of currency and coin held as reserves, see Table 2 Includes certain deposits of foreign-owned banking institutions 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12 RESERVES AND BORROWINGS Member Banks Millions of dollars Monthly averages of daily figures Reserve classification 1975 1976 1977 Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June July* All member banks Reserves: 1 27,215 26,458 26,430 27,229 25,725 25,849 26,096 25,970 25,646 26,747 ? Currency and coin........................ 7,773 8,180 8,548 8,913 8,326 8,134 8,368 8,610 8,609 8,617 3 Total held*...................................... 34,989 34,797 35,136 36,290 34,199 34,135 34,613 34,732 34,406 35,465 4 Required...................................... 34,727 34,433 34,964 35,796 34,234 33,870 34,602 34,460 34,293 35,039 <> 262 364 172 494 -35 265 11 272 113 426 Borrowings at F.R. Banks:2 6 Total................................................. 127 84 62 61 79 110 73 200 262 336 7 13 21 12 8 12 13 14 31 55 59 Large banks in New York City 8 Reserves held....................................... 6,812 6,589 6,520 7,076 6,442 6,331 6,264 6,310 6,241 6,314 9 Required.......................................... 6,748 6,485 6,602 6,948 6,537 6,259 6,351 6,279 6,188 6,342 10 Excess.............................................. 64 104 -82 128 -95 72 -87 31 53 -28 11 Borrowings2...................................... 63 36 15 6 47 44 16 18 36 74 Large banks in Chicago 1? Reserves held...................................... 1,740 1,621 1,632 1,731 1,624 1,610 1,629 1,637 1,662 1,519 n Required.......................................... 1,758 1,602 1 641 1,698 1,624 1,611 1,634 1,634 1,627 1,602 14 Excess.............................................. -18 19 —9 33 -1 -5 3 35 -83 is 4 2 3 * 4 15 5 Other large banks 16 Reserves held...................................... 13,249 12,889 13,117 13,556 12,683 12,779 13,090 13,067 12,869 13,200 17 Required.......................................... 13,160 12,802 13,053 13,427 12,765 12,705 13,110 12,996 12,943 13,284 18 Excess............................................... 89 87 64 129 -82 74 -20 71 -74 -84 19 26 7 14 25 4 29 23 62 80 77 All other banks 20 Reserves held...................................... 13,188 13,698 13,867 13,927 13,450 13,415 13,630 13,718 13,634 14,047 21 Required.......................................... 13,061 13,544 13,668 13,723 13,308 13,295 13,507 13,551 13,535 13,811 22 Excess............................................... 127 154 199 204 142 120 123 167 99 236 23 Borrowings2........................................ 38 41 29 28 28 34 34 116 131 180 Weekly averages of daily figures for weeks ending— 1977 May 25 June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20p July 27* All member banks Reserves: 24 At F.R. Banks................................ 25,632 25,681 24,831 25,258 26,184 26,290 26,815 25,572 27,683 26,296 25 Currency and coin........................ 8,149 8,585 8,751 8,695 8,360 8,623 8,676 8,964 7,851 8,803 26 Total held1...................................... 33,933 34,418 33,734 34,104 34,696 35,064 35,619 34,635 35,628 35,193 27 Required...................................... 33,798 34,009 33,701 33,858 34,623 34,914 35,125 34,371 35,315 35,096 28 Excess1........................................ 135 409 33 246 73 150 494 264 313 97 Borrowings at F.R. Banks:2 29 Total................................................ 311 230 226 223 271 334 265 160 406 295 30 Seasonal.......................................... 35 45 52 48 52 70 61 51 56 68 Large banks in New York City 31 Reserves held...................................... 5,988 6,312 6,042 6,118 6,207 6,394 6,368 6,297 6,359 6,145 32 Required.......................................... 6,034 6,227 6,099 6,065 6,231 6,315 6,438 6,211 6,473 6,204 33 Excess.............................................. -46 85 -57 53 -24 79 -70 86 -114 -59 34 Borrowings2........................................ 27 9 83 16 57 208 Large banks in Chicago 35 Reserves held...................................... 1,559 1,670 1,578 1,627 1,648 1,629 1,665 1,542 1,696 1,568 36 Required.......................................... 1,568 1,594 1,594 1,629 1,652 1,637 1,612,6568 1,636 1,574 37 Excess.............................................. -9 76 -16 -2 -4 -8 39 -26 60 -6 38 Borrowings2........................................ 49 14 25 Other large banks 39 Reserves held...................................... 12,757 12,804 12,664 12,864 13,078 13,147 13,542 13,042 13,163 13,063 40 Required.......................................... 12,680 12,749 12,678 12,828 13,069 13,184 13,240 13,048 13,434 13,297 Excess.............................................. 77 55 41-14 36 9 -37 302 -6 -271 -234 42 Borrowings2........................................ 111 62 51 74 70 126 102 20 42 81 All other banks 43 Reserves held...................................... 13,629 13,632 13,450 13,495 13,763 13,894 14,044 13,754 13,814 14,111 44 Required......................................... 13,516 13,439 13,330 13,336 13,671 13,778 13,821 13,544 13,772 14,021 45 Excess.............................................. 113 193 120 159 92 116 223 210 42 90 46 Borrowings2........................................ 173 159 92 84 130 208 163 115 156 214 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 □ August 1977 1.13 FEDERAL FUNDS TRANSACTIONS of Money Market Banks Millions of dollars, except as noted 1977, week ending Wednesday— Type June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27 Total, 46 banks Basic reserve position 1 Excess reserves1............................ 164 -20 68 17 36 171 109 147 41 Less: 2 Borrowings at F.R. Banks... 19 87 105 96 51 3 26 228 12 3 Net interbank Federal funds transactions....................... 13,970 18,101 17,921 16,742 12,789 14,896 20,249 18,601 16,218 Equals : Net surplus, or deficit (—): 4 Amount...................................... -13,825 -18,208 -17,958 -16,821 -12,804 -14,728 -20,166 -18,683 -16,189 5 Per cent of average required reserves.............................. 94.6 125.7 123.4 113.2 85.5 97.4 136.4 121.9 108.9 Interbank Federal funds transactions Gross transactions: Purchases....................................... 21,749 24,451 23,993 24,407 21,551 23,693 27,180 26,631 23,596 Sales................................................. 7,779 6,350 6,072 7,665 8,763 8,797 6,930 8,030 7,379 Two-way transactions2................... 5,391 4,711 4,732 5,462 5,170 5,822 4,971 6,489 4,990 Net transactions: Purchases of net buying banks.. 16,358 19,740 19,261 18,945 16,381 17,871 22,209 20,142 18,606 Sales of net selling banks............ 2,389 1,639 1,340 2,203 3,593 2,974 1,960 1,541 2,388 Related transactions with U.S. Govt, securities dealers 11 Loans to dealers3................... 2,909 5,462 4,593 2,895 1,905 2,665 3,233 2,906 2,387 12 Borrowing from dealers4. . . 1,707 2,187 1,968 1,733 2,235 1,715 998 1,386 1,644 13 Net loans.................................. 1,202 3,274 2,625 1,162 -329 950 2,235 1,520 743 8 banks in New York City Basic reserve position 14 Excess reserves1........................... 53 -18 40 -5 71 -16 66 -20 71 Less: 15 Borrowings at F.R. Banks. .. 83 16 57 208 16 Net interbank Federal funds transactions....................... 4,445 6,062 5,438 5,551 4,305 5,873 7,698 5,847 5,806 Equals : Net surplus, or deficit (—): 17 Amount...................................... -4,392 -6,163 -5,414 -5,612 -4,234 -5,889 -7,632 -6,075 -5,735 18 Per cent of average required reserves.............................. 77.5 111.3 98.4 99.4 73.9 100.5 135.2 103.5 102.3 Interbank Federal funds transactions Gross transactions: 19 Purchases.......................................... 5,835 6,900 6,660 6,878 5,566 7,335 8,427 7,685 6,534 20 Sales................................................. 1,390 838 1,222 1,327 1,261 1,462 728 1,838 728 21 Two-way transactions2................... 1,390 838 1,222 1,327 1,261 1,462 728 1,838 728 Net transactions: 22 Purchases of net buying banks.. 4,445 6,062 5,438 5,551 4,305 5,873 7,698 5,847 5,806 23 Sales of net selling banks........... Related transactions with U.S. Govt, securities dealers 24 Loans to dealers3................... 1,705 2,661 2,067 1,425 868 1,369 U937 1,620 1,190 25 Borrowing from dealers4. . . 679 737 466 720 581 548 524 643 657 26 Net loans.................................. 1,026 1,924 1,602 705 287 821 1,414 977 533 38 banks outside New York City Basic reserve position 27 Excess reserves1................................ 111 -2 29 21 -35 188 43 167 -30 Less: 28 Borrowings at F.R. Banks......... 19 4 89 39 51 3 26 20 12 29 Net interbank Federal funds transactions........................... 9,525 12,038 12,483 11,191 8,483 9,023 12,551 12,754 10,412 Equals : Net surplus, or deficit (—): 30 Amount.......................................... -9,433 -12,044 -12,543 -11,209 -8,570 -8,839 -12,534 -12,608 -10,453 31 Per cent of average required reserves................................... 105.4 134.7 138.6 121.7 92.6 95.5 137.1 133.4 112.8 Interbank Federal funds transactions Gross transactions: Purchases....................................... 15,914 17,551 17,333 17,529 15,985 16,358 18,753 18,947 17,062 Sales................................................ 6,389 5,512 4,850 6,337 7,501 7,334 6,202 6,192 6,651 Two-way transactions2................... 4,001 3,873 3,510 4,135 3,909 4,360 4,243 4,651 4,263 Net transactions: Purchases of net buying banks.. 11,913 13,678 13,824 13,394 12,076 11,998 14,511 14,295 12,800 Sales of net selling banks........... 2,389 1,639 1,340 2,203 3,593 2,974 1,960 1,541 2,388 Related transactions with U.S. Govt, securities dealers 37 Loans to dealers3................... 1,204 2,801 2,526 T,470 1,038 1,296 1,296 1,286 1,197 38 Borrowing from dealers4.... 1,028 1,450 1,503 1,014 1,653 1,167 475 743 987 39 Net loans.................................. 175 1,351 1,024 457 -616 129 822 543 210 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 June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27 5 banks in City of Chicago Basic reserve position 40 Excess reserves1............................ 61 6 20 -7 -6 34 -7 59 13 Less: 41 Borrowings at F.R. Banks... 49 14 25 42 Net interbank Federal funds transactions....................... 5,066 5,973 6,042 5,882 4,994 4,874 6,552 6,770 5,964 Equals: Net surplus, or deficit (—): 43 Amount.................................... -5,006 -5,967 -6,071 -5,903 -5,001 -4,840 -6,583 -6,711 -5,951 44 Per cent of average required reserves............................ 322.1 400.5 398.1 381.7 326.7 318.3 449.6 439.0 403.3 Interbank Federal funds transactions Gross transactions: Purchases........................................ 6,038 6,783 6,708 6,902 6,122 5,988 7,444 7,812 7,108 Sales................................................ 972 811 666 1,020 1,128 1,114 892 1,042 1,144 Two-way transactions2................... 972 811 666 1,020 1,128 1,114 892 1,042 1,144 Net transactions: Purchases of net buying banks.. 5,066 5,972 6,042 5,882 4,994 4,874 6,552 6,770 5,964 Sales of net selling banks........... Related transactions with U.S. Govt, securities dealers 50 Loans to dealers 3................... 292 497 401 379 176 289 385 258 220 51 Borrowing from dealers4... 460 411 406 401 557 374 53 144 283 52 Net loans.................................. -168 86 -5 -22 -381 -85 332 114 -63 33 other banks Basic reserve position 5 3 Excess reserves1............................ 50 -7 9 28 -29 153 50 108 -42 54 Le B ss o : rrowings at F.R. Banks... 19 4 40 25 51 3 1 20 12 55 Net interbank Federal funds transactions....................... 4,459 6,066 6,441 5,309 3,489 4,150 5,999 5,985 4,448 Equals: Net surplus, or deficit (—): 56 Amount.................................... -4,427 -6,077 -6,473 -5,306 -3,569 -3,999 -5,950 -5,897 -4,502 57 Per c r e e n se t r o v f e a s. v .. e . r .. a .. g .. e .. .. r . e .. q .. u ... i . r . e .. d .. 59.5 81.5 86.0 69.2 46.2 51.7 77.5 74.4 57.8 Interbank Federal funds transactions Gross transactions: 5 5 8 9 P Sa u l r e c s h .. a .. s .. e .. s . . .. . . . . .. .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 9 , ,8 4 7 1 5 7 1 4 0 , , 7 7 0 6 2 8 1 4 0 , , 1 6 8 25 4 1 5 0 , , 3 6 1 2 7 7 9 1 , , 8 3 6 73 2 1 6 0 , , 2 3 2 7 0 0 1 5 1 , , 3 3 1 1 0 0 1 5 1 , , 1 1 5 35 0 5 9 , ,9 5 5 0 5 7 50 Two-way transactions2.................... 3,029 3,062 2,843 3,115 2,781 3,246 3,351 3,609 3,118 Net transactions: 51 Purchases of net buying banks.. 6,847 7,705 7,782 7,512 7,081 7,124 7.959 7,526 6,836 62 Sales of net selling banks............ 2,389 1,639 1,340 2,203 3,593 2,974 1.960 1,541 2,388 Related transactions with U.S. Govt, securities dealers 63 Loans to dealers 3................... 912 2,304 2,125 1,091 862 1,008 911 ,028 977 64 Borrowing from dealers4... 569 1,039 1,097 613 1,092 793 422 599 704 55 Net loans.................................. 343 1,265 1,028 479 -234 214 489 429 273 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 □ August 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 Scsc. 10(b)2 under Sec. 13, last par.4 Federal Reserve Under Secs. 13 and 13a1 Bank Regular rate Special rate3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 7/31/77 date rate 7/31/77 date rate 7/31/77 date rate 7/31/77 date rate Boston.................... 5*4 11/22/76 5*4 5% 11/22/76 6 6% 11/22/76 6*4 8% 11/22/76 8*4 New York............. 5% 11/22/76 5*4 5% 11/22/76 6 6% 11/22/76 6*4 8% 11/22/76 8*4 Philadelphia.......... 5% 11/22/76 5*4 5% 11/22/76 6 6*4 11/22/76 6*4 8*4 11/22/76 8*4 Cleveland............... 5% 11/22/76 5*4 5% 11/22/76 6 6*4 11/22/76 6*4 8% 11/22/76 8*4 Richmond............. 5% 11/22/76 5*4 5% 11/22/76 6 6*4 11/22/76 6*4 8% 11/22/76 8*4 Atlanta................... 5% 11/22/76 5*4 5% 11/22/76 6 6% 11/22/76 6*4 8*4 11/22/76 8*4 Chicago.................. 5*4 11/22/76 5*4 5% 11/22/76 6 6% 11/22/76 6*4 8*4 11/22/76 8*4 St. Louis................. 5% 11/26/76 5*4 5% 11/26/76 6 6*4 11/26/76 6V4 8% 11/26/76 8*4 Minneapolis.......... 5% 11/22/76 5*4 5% 11/22/76 6 6% 11/22/76 6*4 8% 11/22/76 8*4 Kansas City........... 5% 11/22/76 5 Vi 5% 11/22/76 6 6*4 11/22/76 6*4 8% 11/22/76 8*4 Dallas..................... 5*4 11/22/76 5*4 5% 11/22/76 6 6% 11/22/76 6*4 8*4 11/22/76 8*4 San Francisco.... 5% 11/22/76 5*4 5% 11/22/76 6 6*4 11/22/76 6*4 8% 11/22/76 8*4 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 AU F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. I 1 n 9 7 e 1 ff — ec J t a D n. e c. 8 31 .. , . .. 1 .. 9 .. 7 .. 0 .. 5% 5* -5 4 *4 5 5 * * 4 4 1973—J F M a e a n b r . . . 2 1 6 2 5 . . . 5 5 5* -5 4 * 4 5 5 5 V *4 4 1975—Jan. 2 1 6 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . 7 7* * 7 4 4 % - - 7 7 % 34 Feb. 2 2 1 1 1 1 2 9 9 9 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 5 % 4 5 5 - - % - % 5 5 5 V % 4 4 5 5 5 5 5 1 % % /4 J A M u p a n r y e . 2 1 1 1 1 3 4 5 8 1 1 . . . . . . 5 5 * * < 5 6 4 4 & % V - - 6 5 > i % % 6 56 5V Va 4 M F M e a a b r y . . 2 1 1 1 7 5 3 4 6 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 % * 6 6 6 6 4 * %- - - 7 6 64 % % % July 16............. 4%-5 5 July 2. 7 2 3 5 5 Aug. 14, 7-7*4 1976—Jan. 19......... 5*4-6 N D o ec v . . 1 1 1 1 7 1 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 % % * 4 4 - % - - 4 4 5 % % 5 44 4 % * % 4 1974—Apr. 2 2 3 5 3 0 . , . 7* 7 84 * - 4 8 8 8 Nov. 2 2 2 3 2 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . V S'A 2 4 4 *4 4% Dec. 9, 7%-8 7% 16, 7% 7% In effect July 31, 1977 5% 1 Discounts of eligible paper and advances secured by such paper or by a 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 July 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..................................................................................................... im 12/30/76 12 2/13/75 100-400................................................................................................... 1234 12/30/76 13 2/13/75 Over 400................................................................................................. 16% 12/30/76 16 ft 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 m 3/2/67 180 days to 4 years...................................................................... 4 2 % 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...................................................................... 4 2% 1/8/76 3 12/12/74 4 years or more............................................................................. 41 10/30/75 3 12/12/74 Legal limits, July 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

A10 Domestic Financial Statistics □ August 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 July 31, 1977 Previous maximum In effect July 31, 1977 Previous maximum Per cent Effective Per cent Effective Per cent Effective Per cent Effective date date date date 1 Savings.................................................... 7/1/73 1/21/70 (6) (7) 2 Negotiable order of withdrawal (NOW) accounts1...................................... 1/1/74 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 - l m e- a m tu a r t i u ty ri . t .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7/1/73 4 5 % 9 1 / / 2 2 6 1 / / 6 7 6 0 (8) (8) 90 days to 1 year: 5 6 S M in u g lt l i e p - l m e- a m tu a r t i u ty ri . t .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5ft 7/1/73 9 7 / / 2 2 6 0 / / 6 6 6 6 3534 (6) 5Va 1/21/70 7 8 2 1 t t o o 2 2 ^ ye y ar e s a 3 rs .. 3 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7/1/73 5 5V f a t 1 I H /21 i H /7 O 0 6% (6) I* 1 1 / / 2 2 1 1/ /7 70 0 9 2Yz to 4 years3..................................... 6ft 7/1/73 5Va 1/21/70 6Va (6) 6 1/21/70 10 4 to 6 years4......................................... 7V4 11/1/73 (9) 7ft 11/1/73 (9) 11 6 years or more4.................................. 7ft 12/23/74 7Va 11/1/73 7Va 12/23/74 7ft 11/1/73 12 Governmental units (all maturities)... 7Va 12/23/74 7ft 11/27/74 7V4 12/23/74 7ft 11/27/74 13 Individual retirement accounts and Keogh (H.R. 10) plans 5............ 7V4 7/6/77 (8) 7Va 7/6/77 (8) 1 For authorized States only. Federally insured commercial banks, 9 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 6 Vi per cent ceiling on time deposits maturing in 2ft 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 3-year minimum maturity. CFR 217, 329, and 526, respectively. The maximum rates on time de­ 6 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and posits in denominations of $100,000 or more were suspended in midloan associations. 1973. For information regarding previous interest rate ceilings on all 7 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and types of accounts, see earlier issues of the Federal Reserve Bulletin, loan associations. the Federal Home Loan Bank Board Journal, and the Annual Report 8 No separate account category. of the Federal Deposit Insurance Corporation. 1.161 MARGIN REQUIREMENTS 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....................................... 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 All 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1976 1977 Type of transaction 1974 1975 1976 Dec. Jan. Feb. Mar. Apr. May June U.S. GOVT. SECURITIES Outright transactions (excl. matched salepurchase transactions) Treasury bills: 1 11,660 11,562 14,343 975 2,535 110 1,671 681 2,696 7 Gross sales.................................................... 5,830 5,599 8,462 1,546 313 801 368 260 489 1,154 4,550 2 6,431 25,017 19 400 600 Others within 1 year:1 4 450 3,886 472 59 45 107 41 20 89 5 6 -1,183 -4 792 7 252 63 -266 374 -1,209 478 7 131 3,549 1 to 5 years: 8 Gross purchases........................................... 797 23,284 2 3,202 681 475 348 174 327 200 9 177 10 -697 3,854 -2,588 -7 -252 -880 266 -374 -865 -478 5 to 10 years: 11 Gross purchases........................................... 434 1,510 1,048 170 128 151 46 104 68 12 13 Exchange, or maturity shift ........... 1,675 -4,697 1,572 517 1,174 Over 10 years: 14 Gross purchases........................................... 196 1,070 642 119 48 81 37 38 114 15 16 Exchange or maturity shift 205 848 225 300 900 All maturities:1 17 Gross purchases........................................... 13,537 2 21,313 19,707 2,004 3,229 797 298 2,160 681 3,167 18 Gross sales.................................................... 5,830 5,599 8,639 1,546 313 801 368 260 489 1,154 19 Redemptions....................................... 4,682 2 9,980 2 5,017 19 400 600 Matched sale-purchase transactions 20 Gross sales........................................................ 64,229 151,205 196,078 23,193 24,595 22,674 30,115 32,287 28,532 36,258 21 Gross purchases............................................... 62,801 152,132 196,579 24,343 22,544 23,447 30,828 32,852 27,306 36,449 Repurchase agreements 22 Gross purchases............................................... 71,333 140,311 232,891 30,872 23,820 13,853 14,368 13,397 29,308 14,748 23 Gross sales........................................................ 70,947 139,538 230,355 27,119 27,573 12,921 14,860 11,862 30,448 11,506 24 Net change in U.S. Govt, securities............... 1,984 7,434 9,087 5,361 -2,887 1,702 151 3,980 -2,573 4,845 FEDERAL AGENCY OBLIGATIONS Outright transactions: 25 Gross purchases.............. 3,087 1,616 891 346 380 26 27 Redemptions.................................................... 322 246 169 63 4 24 36 * 33 Repurchase agreements: 28 Gross purchases............................................... 23,204 15,179 10,520 1,380 930 689 523 709 2,164 1,656 29 Gross sales........................................................ 22,735 15,566 10,360 1,102 1,208 612 *. 546 639 2,278 1,056 BANKERS ACCEPTANCES 30 Outright transactions, net................................... 511 163 -545 8 -5 -18 -19 -51 -45 -15 31 Repurchase agreements, net............................... 420 -35 410 795 -795 149 -23 653 -729 528 32 Net chanse in total Svstem Arrnnnt.................... 6,149 8,539 9,833 6,379 -3,969 1,886 SO 4,998 -3,461 6,305 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): 1974,131; 1975, 3,549; and 1976 to present, none. Note.—Sales, redemptions, and negative figures reduce holdings of 2 In 1975, the System obtained $421 million of 2-year Treasury notes the System Open Market Account; all other figures increase such holdings, in exchange for maturing bills. In 1976 there was a similar transaction 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 □ August 1977 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of Month Account 1977 1977 June 29 July 6 July 13 July 20* July 27* May June July * Consolidated condition statement ASSETS 1 Gold certificate account........................................ 11,620 11,620 11,605 11,605 11,605 11,629 11,620 11,595 2 Special Drawing Rights certificate account......... 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 3 313 303 303 352 309 319 315 317 Loans: 4 Member bank borrowings................................. 606 185 383 222 514 400 260 788 5 Acceptances: 6 Bought outright.................................................. 43 41 32 25 19 58 43 19 7 413 186 249 50 578 374 Federal agency obligations: 8 Bought outright.................................................. 7,436 7,423 7,423 7,423 7,423 7,077 7,423 7,423 9 342 473 205 10 610 345 U.S. Govt, securities Bought outright: 10 Bills................................................................. 40,974 39,359 39,363 38,555 39,498 39,694 40,827 39,045 11 P 13 Notes............................................................... 49,088 49,088 49,088 49,088 49,088 48,732 49,088 49,088 14 8,248 8,248 8,248 8,248 8,248 8,134 8,248 8,248 15 Total 2.................................................................. 98,310 96,695 96,699 95,891 96,834 96,560 98,163 96,381 16 3,554 2,527 1,563 834 4,076 2,330 17 Total U.S. Govt, securities..................................... 101,864 96,695 96,699 98,418 98,397 97,394 102,239 98,711 18 Total loans and securities...................................... 110,704 104,344 104,537 106,747 106,807 104,989 111,153 107,660 19 Cash items in process of collection...................... 9,901 10,919 9,092 10,896 9,425 8,360 8,886 7,570 20 Bank premises........................................................ 370 372 372 372 373 369 371 372 Other assets: 21 Denominated in foreign currencies................... 57 61 45 16 16 60 57 20 22 All other.............................................................. 2,555 2,734 3,654 3,852 2,843 2,427 2,494 3,321 23 Total assets............................................................. 136,720 131,553 130,808 135,040 132,578 129,353 136,096 132,055 LIABILITIES 24 F.R. notes............................................................... 86,315 87,590 87,361 87,191 86,985 85,333 86,326 86,674 Deposits: 25 Member bank reserves...................................... 24,048 23,105 24,616 28,833 26,809 29,009 24,562 26,892 26 U.S. Treasury—General account..................... 16,115 9,647 8,527 7,220 8,616 5,838 15,183 8,789 27 Foreign................................................................ 287 372 251 247 289 436 379 469 28 592 607 677 1,867 699 831 748 578 29 41,042 33,731 34,071 38,167 36,413 36,114 40,872 36,728 30 Deferred availability cash items........................... 5,837 7,073 6,088 6,299 5,685 4,367 5,282 5,047 31 Other liabilities and accrued dividends................ 1,090 1,051 1,059 1,035 1,031 1,016 1,165 1,083 32 134,284 129,445 128,579 132,692 130,114 126,830 133,645 129,532 CAPITAL ACCOUNTS 33 Capital paid in........................................................ 1,000 1,002 1,004 1,004 1,006 1,000 1,000 1,006 34 Surplus................................................................... 983 983 983 983 983 983 983 983 35 Other capital accounts.......................................... 453 123 242 361 475 540 468 534 36 Total liabilities and capital accounts..................... 136,720 131,553 130,808 135,040 132,578 129,353 136,096 132,055 37 Memo: Marketable U.S. Govt, securities held in custody for foreign and inti, account............. 58,032 58,157 57,781 59,568 58,772 58,214 57,867 60,359 Federal Reserve note statement 38 F.R. notes outstanding (issued to Bank)............. 91,171 91,593 92,137 92,505 92,580 90,242 91,250 92,648 Collateral held against notes outstanding: 39 Gold certificate account..................................... 11,616 11,615 11,601 11,601 11,601 11,625 11,616 11,591 40 Special Drawing Rights certificate account.... 752 752 752 752 752 643 752 752 41 Acceptances........................................................ 42 U.S. Govt, securities.......................................... 79,965 80,315 81,235 81,335 81,585 79,283 80,015 81,585 43 Total collateral........................................................ 92,333 92,682 93,588 93,688 93,938 91,551 92,383 93,928 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 June 29 July 6 July 13 July 20 July 27 May 31 June 30 July 31 1 605 184 381 222 514 398 258 788 2 Within 15 days..................................................... 596 165 354 196 508 386 c236 768 3 16 days to 90 days............................................... 9 19 27 26 6 12 22 20 A 5 Acceptances.............................................................. 456 41 32 211 268 108 621 393 6 Within 15 days..................................................... 426 16 20 195 258 59 591 384 7 26 21 9 12 9 45 26 8 8 91 days to 1 year.................................................. 4 4 3 4 1 4 4 1 9 U.S. Govt, securities................................................ 101,864 96,695 96,699 98,418 98,397 97,394 102,239 98,711 10 Within 15 days1................................................... 7,778 2,482 3,803 5,770 4,887 2,629 6,195 4,849 11 16 days to 90 days............................................... 17,712 17,487 16,410 17,165 17,231 19,615 17,712 17,589 12 91 days to 1 year.................................................. 28,546 29,375 29,136 28,132 28,928 27,703 30,981 28,922 13 Over 1 year to 5 years..............,......................... 30,129 29,652 29,651 29,652 29,652 29,930 29,652 29,652 14 Over 5 years to 10 years...................................... 11,233 11,233 11,233 11,233 11,233 11,165 11,233 11,233 15 Over 10 years....................................................... 6,466 6,466 6,466 6,466 6,466 6,352 6,466 6,466 16 Federal agency obligations....................................... 7,778 7,423 7,423 7,896 7,628 7,087 8,033 7,768 17 Within 15 days1................................................... 402 52 52 503 235 149 657 375 18 16 days to 90 days............................................... 393 366 366 336 410 277 393 410 19 91 days to 1 year.................................................. 1,025 1,047 1,047 1,074 1,000 1,034 1,025 1,000 20 Over 1 year to 5 years......................................... 3,636 3,636 3,636 3,648 3,648 3,450 3,636 3,648 21 Over 5 years to 10 years...................................... 1,499 1,499 1,499 1,512 1,512 1,387 1,499 1,512 22 Over 10 years........................................................ 823 823 823 823 823 790 823 823 i Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 DEMAND DEPOSIT ACCOUNTS Debits and Rate of Turnover Seasonally adjusted data 1977 Standard metropolitan statistical area 1974 1975 1976 Feb. Mar. Apr. May June Debits (billions of dollars)2 1 All 233 SMSA’s....................................................... 22,192.2 23,565.1 28,911.0 30,145.4 30,421.7 30,585.5 *•32,028.5 32,394.9 2 New York City........................................................ 9,931.8 10,970.9 13,835.0 14,898.0 14,612.1 14,988.9 15,739.7 15,516.6 3 232 SMSA’s............................................................. 12,260.6 12,594.2 15,076.1 15,247.4 15,809.6 15,956.5 r16,288.8 16,878.5 4 6 leading SMSA’s other than N.Y.C.1.............. 5,152.7 4,937.5 5,917.1 5,887.1 6,155.7 6,055.5 6,420.4 6,213.1 5 226 others.............................................................. 7,107.9 7,661.8 9,159.0 9,360.2 9,653.9 9,541.1 '9,868.4 10,665.4 Turnover of deposits (annual rate) 6 All 233 SMSA’s....................................................... 128.0 131.0 153.5 153.3 155.2 158.2 160.2 160.6 7 New York City........................................................ 312.8 351.8 419.8 437.3 436.0 465.2 474.9 452.1 8 232 SMSA’s............................................................. 86.6 84.7 97.0 93.8 97.3 96.3 97.7 100.8 9 6 leading SMSA’s other than N.Y.C.1.............. 131.8 118.4 136.9 129.9 135.2 134.7 139.8 135.5 10 226 others.............................................................. 69.3 71.6 81.7 79.8 82.5 82.1 81.7 87.7 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 □ August 1977 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1977 1973 1974 1975 1976 Dec. Dec. Dec. Dec. Item Jan. Feb. Mar. Apr. May June Seasonally adjusted MEASURES i 1 M-l...................................................... 270.5 283.1 294.8 312.4 313.8 314.0 315.4 320.5 320.7 322.0 2 M-2...................................................... 571.4 612.4 664.3 740.3 746.3 750.7 756.1 764.6 767.6 772.9 3 M-3...................................................... 919.6 981.5 1 092.6 1,237.1 1,248.9 1,258.2 1,268.1 1,281.2 rl,289.0 1,299.4 4 M-4...................................................... 634.4 701.4 746.5 803.5 809.3 814.0 818.2 826.2 829.9 836.8 5 M-5...................................................... 982.5 1,070.5 1,174.7 1,300.3 1,312.0 1,321.5 1,330.3 1,342.8 '1,351.3 1,363.4 COMPONENTS 6 Currency.............................................. 61.5 67.8 73.7 80.5 81.1 81.8 82.2 83.1 83.6 84.0 Commercial bank deposits: 7 Demand........................................... 209.0 215.3 221.0 231.9 232.7 232.1 233.2 237.4 237.1 238.0 8 Time and savings............................. 363.9 418.3 451.7 491.1 495.6 500.0 502.8 505.7 509.2 514.8 9 Negotiable CD’s2....................... 63.0 89.0 82.1 63.3 63.1 63.3 62.2 61.6 62.3 63.9 10 Other............................................ 300.9 329.3 369.6 427.9 432.5 436.7 440.6 444.1 446.9 450.9 11 Nonbank thrift institutions3.............. 348.1 369.1 428.3 496.8 502.6 507.5 512.1 516.6 *•521.4 526.5 Not seasonally adjusted MEASURES1 12 M-l...................................................... 278.3 291.3 303.2 321.3 319.7 309.9 312.4 322.3 315.5 321.4 13 M-2...................................................... 576.5 617.5 669.3 745.3 751.2 747.2 756.2 770.0 766.2 774.6 14 M-3...................................................... 921.8 983.8 1,094.3 1,237.9 1,251.4 1,253.1 1,269.8 1,290.2 >■1,290.3 1,305.5 15 M-4...................................................... 640.5 708.0 752.8 809.5 814.3 808.5 817.0 830.1 827.4 837.5 16 M-5...................................................... 985.8 1,074.3 1,177.7 1,302.1 1,314.5 1,314.4 1,330.7 1,350.3 '1,351.4 1,368.5 COMPONENTS 17 Currency............................................. 62.7 69.0 75.1 82.0 80.5 80.8 81.6 82.8 83.4 84.2 Commercial bank deposits: 18 Demand........................................... 215.7 222.2 228.1 239.3 239.2 229.1 230.9 239.6 232.1 237.2 19 Member....................................... 156.5 159.7 162.1 168.5 168.1 161.0 162.1 167.6 161.8 165.1 20 Domestic nonmember................ 56.3 58.5 62.6 67.3 67.5 64.6 65.2 68.3 66.6 68.3 21 Time and savings............................. 362.2 416.7 449.6 488.2 494.6 498.6 504.6 507.7 511.8 516.1 22 Negotiable CD’s2....................... 64.0 90.5 83.5 64.3 63.1 61.3 60.8 60.1 61.2 63.0 23 Other........................................... 298.2 326.3 366.2 423.9 431.5 437.3 443.8 447.7 450.7 453.2 24 Nonbank thrift institutions3.............. 345.3 366.3 424.9 492.6 500.2 505.9 513.6 r520.2 r524.1 530.9 25 U.S. Govt, deposits (all commercial banks)........................................... 6.3 4.9 4.1 4.7 4.2 4.4 4.5 5.6 3.8 5.2 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: Revision” on pp. 305 and 306 of the process of collection and F.R. float; (2) foreign demand balances at F.R. March 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 deposit (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. 3 Reclassification of loans reduced these loans by about $1.2 billion Note.—Data are for last Wednesday of month except for June 30 as of Mar. 31, 1976. and Dec. 31; data are partly or wholly estimated except when June 30 4 Data beginning June 30, 1974, include one large mutual savings and Dec. 31 are call dates. bank that merged with a nonmember commercial bank. As of that date there were increases of about $500 million in loans, $100 million in “Other” securities, and $600 million in “Total loans and investments.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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. Nov. Dec. Jan. Feb. Mar. Apr. May June Seasonally adjusted 1Reserves 1................................................................... 34.94 36.60 34.73 34.85 34.95 34.78 34.40 34.31 34.68 34.72 34.86 2 Nonborrowed......................................................... 33.64 35.87 34.60 34.78 34.90 34.71 34.33 34,20 34.6| 34.52 34.60 3 RenuireH................................................................. 34.64 36.34 r34.47 34.59 34.68 34.51 34.20 34,09 34.49 34.51 34.71 4 Denosits subject to reserve reauirements 2................ 442.3 486.2 505.4 524.9 529.6 532.5 532.0 535.2 538.4 537.6 544.5 5 Time and savings................................................... 279.2 322.1 337.9 350.2 355.0 357.3 360.1 361.3 361.4 363.1 367.0 Demand: 6 Private................................................................. 158.1 160.6 164.5 170.7 171.4 172.5 169.5 171.1 173.4 172.3 173.8 7 U.S. Govt............................................................ 5.0 3.5 3.0 4.0 3.2 2.7 2.5 2.8 3.6 2.1 3.7 Not seasonally adjusted 8 Denosits subiect to reserve reauirements 2................ 447.5 491.8 510.9 522.5 534.8 537.7 528.7 534.0 541.3 r535.8 544.5 9 Time and savings.................................................... 278.5 321.7 337.2 347.6 353.6 357.0 358.4 361.7 362.3 364.7 367.8 Demand: 10 Private................................................................. 164.0 166.6 170.7 171.9 177.9 177.8 167.2 169.1 175.0 168.5 173.0 11 U.S. Govt............................................................ 5.0 3.4 3.1 3.0 3.3 2.9 3.1 3.2 4.0 2.5 3.7 1 Series reflects actual reserve require.ment percentages with no adjust­ 2 Includes total time and savings deposits and net demand deposits as ment to eliminate the effect of changes in Regulations D and M. There defined by Regulation D. Private demand deposits include all demand are breaks in series because of changes in reserve requirements effective deposits except those due to the U.S. Govt., less cash items in process of Dec. 12,1974; Feb. 13, May 22, and Oct. 30,1975; Jan. 8, and Dec. 30,1976. collection and demand balances due from domestic commercial banks. In addition, effective Jan. 1, 1976, statewide branching in New York was instituted. The subsequent merger of a number of banks raised Note.—Back data and estimates of the impact on required reserves required reserves because of higher reserve requirements on aggregate and changes in reserve requirements are shown in Table 14 of the Board’s deposits at these banks. Annual Statistical Digest, 1971-1975. 1.23 LOANS AND INVESTMENTS All Commercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 1977 1973 1974 4 1975 1976 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Category Feb. 23 Mar. 30 Apr. 27 May 25 June 30 July 27 p p p p p p Seasonally adjusted 1 Loans and investments1......................................... 633.4 690.4 721.1 784.4 796.4 8Q3.0 812.4 819.4 825.5 831.8 2 Including loans sold outright2......................... 637.7 695.1 725.5 788.2 800.3 807. Q 816.4 823.4 829.5 835.9 Loans: 3 Total................................................................... 449.0 500.2 496.9 538.9 545.4 551.0 557.7 562.1 567.0 574.5 4 Including loans sold outright2...................... 453.3 505.0 501.3 542.7 549.3 555.0 561.7 566.1 571.0 578.6 156.4 183.3 176.0 179.5 181,2 182.9 184.9 185.9 188.3 189.6 6 Including loans sold outright2,3................... 159.0 186.0 178.5 181.9 183.8 185.6 187.7 188.7 191.1 192.4 Investments: 7 U.S. Treasury..................................................... 54.5 50.4 79.4 97.3 101.5 103.6 102.8 104.6 105.3 102.9 8 Other................................................................... 129.9 139.8 144.8 148.2 149.5 148.4 151.9 152.7 153.2 154.4 Not seasonally adjusted 9 Loans and investments1......................................... 647.3 705.6 737.0 801.6 790.0 801.1 809.6 816.6 830.5 829.1 10 Including loans sold outright........................... 651.6 710.4 741.4 805.4 793.9 805.1 813.6 820.6 834.5 833.2 Loans: 11 Total1.................................................................. 458.5 510.7 507.4 550.2 538.9 547.7 553.5 561.3 574.4 575.4 12 Including loans sold outright2...................... 462.8 515.5 511.8 554.0 542.8 551.7 557.5 565.3 578.4 579.5 13 Commercial and industrial3............................. 159.4 186.8 179.3 182.9 179.4 182.8 185.1 186.1 190.7 189.6 14 Including loans sold outright2,3................... 162.0 189.5 181.8 185.3 182.0 185.5 187.9 188.9 193.5 192.4 Investments; 58.3 54.5 84.1 102.5 102.6 104.7 103.0 101.9 101.7 99.5 16 Other................................................................... 130.6 140.5 145.5 148.9 148.5 148.7 153.1 153.4 154.4 154.2 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ August 1977 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1975 19763 1977 Account Dec. 31 Oct. Nov. Dec. Jan. Feb. Mar. Apr.p May? June? July* All commercial 1 Loans and investments............. 775.8 808.0 817.6 846.4 824.2 831.6 840.4 846.5 853.1 864.5 866.2 2 Loans, gross......................... 546.2 566.5 571.0 594.9 575.3 580.4 587.0 590.4 597.8 609.5 612.5 Investments: 3 U.S. Treasury securities.. 84.1 94.4 98.0 102.5 101.1 102.6 104.7 103.0 101.9 101.3 99.5 4 Other................................. 145.5 147.1 148.6 148.9 147.9 148.5 148.7 153.1 153.4 153.7 154.2 5 Cash assets............................... 133.6 116.9 127.0 136.1 120.1 127.1 122.8 122.7 119.4 124.5 124.7 6 Currency and coin............... 12.3 12.7 11.9 12.1 12.8 12.5 12.9 13.3 13.1 13.6 13.3 7 Reserves with F.R. Banks.. 26.8 26.4 29.1 26.1 28.6 28.6 26.9 28.2 24.0 23.5 27.1 8 Balances with banks............ 47.3 38.2 42.5 49.6 39.2 41.5 41.9 40.1 41.3 42.9 40.4 9 Cash items in process of collection.. 47.3 39.7 43.5 48.4 39.6 44.4 41.1 41.0 41.0 44.4 43.9 10 Total assets/total liabilities and capital i................................. 964.9 973.7 995.7 1,030.7 996.7 1,011.6 1,018.2 1,024.8 1,026.9 1,044.9 1,047.4 11 Deposits.................................... 786.3 784.4 796.5 838.2 801.0 809.3 817.1 819.4 818.9 833.7 836.4 Demand: 12 Interbank.......................... 41.8 34.0 39.1 45.4 35.3 36.6 37.6 33.9 35.2 37.3 37.7 13 U.S. Govt......................... 3.1 3.7 3.4 3.0 4.0 3.8 3.1 7.4 3.6 3.0 3.8 14 Other................................. 278.7 260.8 264.0 288.4 260.6 264.5 263.1 267.9 262.8 272.5 272.3 Time: 15 Interbank............................ 12.0 9.2 9.1 9.2 8.8 8.6 8.9 8.6 8.5 8.9 8.3 16 Other................................... 450.6 476.6 481.0 492.2 492.3 495.9 504.4 501.6 508.8 511.9 514.4 17 Borrowings................................. 60.2 76.7 84.6 80.2 82.5 87.6 84.5 88.2 87.6 90.2 90.6 18 69.1 74.3 74.8 78.1 76.3 76.8 77.1 77.5 78.1 78.7 78.9 19 Memo: Number of banks......... 14,633 14,660 14,674 14,671 14,667 14,688 14,685 14,690 14,695 14,709 14,709 Member 20 578.6 590.7 597.6 620.5 600.9 605.9 611.8 614.8 620.2 629.1 628.9 21 Loans, gross........................... 416.4 421.6 424.1 442.9 426.3 429.9 434.6 435.9 441.5 450.1 451.3 Investments: 22 U.S. Treasury securities... 61.5 67.7 70.8 74.6 72.6 73.7 74.9 73.0 72.6 72.6 70.8 23 Other................................... 100.7 101.4 102.7 103.1 102.0 102.3 102.3 105.8 106.1 106.4 106.7 24 Cash assets, total....................... 108.5 94.9 103.0 108.9 97.7 102.8 100.0 99.4 95.7 100.5 101.1 25 Currency and coin................. 9.2 9.5 8.9 9.1 9.5 9.3 9.6 9.9 9.7 10.0 9.9 26 Reserves with F.R. Banks. .. 26.8 26.4 29.1 26.0 28.6 28.6 26.9 28.2 24.0 23.5 27.1 27 Balances with banks.............. 26.9 20.9 23.3 27.4 21.5 22.2 24.0 21.9 22.6 24.2 21.9 28 Cash items in process of collection.. 45.5 38.2 41.8 46.5 38.1 42.7 39.5 39.4 39.3 42.7 42.2 29 Total assets/total liabilities and 733.6 727.6 744.8 772.9 744.6 755.1 759.7 762.7 763.9 778.9 780.1 30 Deposits...................................... 590.8 576.1 584.8 618.7 587.0 592.0 598.1 597.8 597.4 609.4 610.6 Demand : 31 Interbank............................ 38.6 32.2 37.2 42.4 33.1 34.1 35.3 31.6 32.9 34.9 35.3 32 U.S. Govt........................... 3.2 2.9 2.4 2.1 3.0 2.7 2.1 5.9 2.7 2.2 2.8 33 Other................................... 210.8 194.7 196.0 215.5 193.7 196.6 195.9 199.0 195.1 202.7 202.1 Time: 34 Interbank............................ 10.0 7.1 7.0 7.2 6.8 6.6 6.9 6.6 6.5 6.9 6.3 35 Other................................... 329.1 339.2 342.1 351.5 350.3 351.9 357.9 354.7 360.3 362.7 364.1 36 Borrowings................................. 53.6 69.1 76.4 71.7 73.6 78.0 75.3 78.1 77.5 80.0 80.4 37 Total capital accounts2.............. 52.1 56.2 56.6 58.6 57.7 57.9 58.1 58.3 58.8 59.2 59.5 38 Memo: Number of banks........ 5,788 5,769 5,767 5,759 5,739 5,740 5,739 5,726 5,708 5,721 5,721 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 A17 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 Loans and investments, Gross............................... 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 Other............................................................... 142,060 143,602 143,731 147,520 78,331 78,598 7fc,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 8 746,348 775,209 776,957 825,001 431,646 447,590 444,251 469,378 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 Other............................................................... 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 Cash assets.............................................................. 31,466 30,451 30,422 32,859 18,029 19,778 18,161 20,644 23 179,787 180,495 179,645 189,573 198,157 210,874 214,167 231,130 24 Deposits................................................................. 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 Other............................................................... 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 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 16,277 20,544 21,271 26,790 214,434 231,418 235,439 257,921 40 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 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 48 253 261 270 275 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 □ August 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 97,503 96,449 69,717 9,437 3,490 24,030 32,760 27,786 22 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 42 388 387 323 122 25 95 82 64 43 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 4,045 674 466 47 To domestic commercial banks....................... 4,531 2,774 2,196 606 127 1,126 337 2,335 48 To banks in foreign countries......................... 10,880 6,617 6,487 3,022 290 2,717 457 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 7,397 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 8,743 8,742 6,217 173 28 2,231 3,785 2,525 64 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 14,732 14,405 12,267 2,741 855 5,533 3,137 2,466 827,742 809,050 607,089 97,344 31,009 221,810 256,927 220,653 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 74 Total assets............................................................... 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 commercia commercialI 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 85,340 146 146 118 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 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 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 8,914 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. commercial interbank and U.S. Govt., less cash items reported as in Back data in lesser detail were shown in previous Bulletins. Details process of collection. may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics □ August 1977 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27 1Total loans and investments..................................... 422,968 425,999 421,099 424,410 426,406 425,072 425,456 422,237 Loans: 2 Federal funds sold1.............................................. 24,905 23,217 21,562 23,442 24,521 23,170 22,840 21,614 3 To commercial banks....................................... 16,653 16,534 17,268 19,270 19,016 18,063 18,304 16,914 To brokers and dealers involving— 4 U.S. Treasury securities............................... 5,878 4,221 2,274 2,211 3,369 3,062 2,253 2,543 5 Other securities............................................. 570 466 436 292 410 332 402 424 6 To others.......................................................... 1,804 1,996 1,584 1,669 1,726 1,713 1,881 1,733 7 294,032 296,999 295,845 297,686 298,934 298,202 298,978 298,948 8 Commercial and industrial.............................. 117,744 118,371 119,653 119,439 119,099 118,592 118,441 118,863 9 Agricultural...................................................... 4,595 4,628 4,688 4,693 4,694 4,713 4,739 4,745 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities........................... 2,158 2,ill 880 1,006 1,718 1,735 1,146 972 11 7,810 8,748 8,178 8,660 8,637 8,576 9,306 8,841 To others: 12 U.S. Treasury securities........................... 92 95 95 90 74 77 73 72 13 2,509 2,519 2,509 2,540 2,553 2,556 2,548 2,574 To nonbank financial institutions: 14 Personal and sales finance cos., etc............. 7,473 7,727 7,410 7,351 7,449 7,411 7,175 7,220 15 Other.............................................................. 15,557 15,718 15,533 15,662 15,444 15,362 15,305 15,295 16 66,502 66,846 67,070 67,721 67,923 68,307 68,520 68,748 To commercial banks: 17 1,780 2,062 1,849 2,134 2,029 2,013 1,972 1,912 18 Foreign.......................................................... 5,808 5,543 5,515 5,780 5,965 5,765 6,152 5,911 19 Consumer instalment....................................... 41,316 41,583 41,748 41,688 41,737 41,847 42,036 42,265 20 Foreign governments, official institutions, etc.. 1,576 1,506 1,527 1,531 1,517 1,539 1,538 1,624 21 All other loans.................................................. 19,112 19,476 19,190 19,391 20,095 19,709 20,027 19,906 22 Less : Loan loss reserve and unearned income 8,979 9,028 9,065 8,967 8,920 8,996 9,050 9,082 23 285,053 287,971 286,780 288,719 290,014 289,206 289,928 289,866 Investments: 24 49,784 50,788 49,024 48,295 47,826 47,816 47,889 46,565 25 Bills.................................................................... 9,942 10,959 9,601 9,142 8,858 8,885 8,886 8,060 Notes and bonds, by maturity: 26 8,820 8,890 8,773 8,906 9,062 9,113 9,283 9,233 27 27,080 26,930 26,834 26,286 26,061 25,667 25,680 25,331 28 3,942 4,009 3,816 3,961 3,845 4,151 4,040 3,941 29 Other securities...................................................... 63,226 64,023 63,733 63,954 64,045 64,880 64,799 64,192 Obligations of Stat es and political subdivisions: 30 Tax warrants, short-term notes, and 8,563 8,468 8,400 8,286 8,599 9,234 8,865 8,692 31 41,121 41,622 41,608 41,677 41,547 41,888 41,930 41,741 Other bonds, corporate stocks, and securities: 32 Certificates of participation2....................... 2,045 2,063 2,046 2,131 2,089 2,063 2,105 2,057 33 All other, including corporate stocks......... 11,497 11,870 11,679 11,860 11,810 11,695 11,899 11,702 34 Cash items in process of collection........................ 36,147 44,728 38,133 38,932 46,609 38,665 41,353 38,362 35 Reserves with F.R. Banks....................................... 16,109 21,267 18,691 16,776 17,382 18,779 22,048 20,485 5,709 5,729 5,919 6,119 5,437 6,047 5,945 6,028 14,269 12,788 12,738 14,738 14,327 12,785 12,976 12,603 38 Investments in subsidiaries not consolidated........ 2,694 2,691 2,674 2,675 2,659 2,672 2,738 2,767 39 55,522 54,593 54,123 53,796 57,156 56,569 55,412 54,709 553,418 567,795 553,377 557,446 569,976 560,589 565,928 557,191 Deposits: 41 171,771 191,279 173,445 176,019 188,998 177,853 181,059 175,902 42 Individuals, partnerships, and corporations.. 123,597 134,463 125,870 126,871 135,158 130,141 129,877 126,417 43 States and political subdivisions..................... 5,577 6,237 6,083 6,298 6,395 5,634 5,966 5,815 44 U.S. Govt.......................................................... 921 9,912 1,900 1,349 2,713 1,305 2,610 1,902 Domestic interbank: 45 26,984 25,475 23,534 25,407 28,764 25,410 25,374 25,088 46 870 786 780 832 1,124 926 956 897 Foreign: 47 Governments, official institutions, etc......... 1,508 1,152 1,120 1,266 1,271 1,091 1,316 1,567 48 5,982 5,665 6,117 6,356 6,013 6,145 6,815 7,044 49 Certified and officers’ checks........................... 6,332 7,589 8,041 7,640 7,560 7,201 8,145 7,172 50 Time and savings deposits3................................. 236,847 236,054 236,862 237,931 236,716 237,138 237,099 237,766 51 94,477 94,144 93,980 94,084 94,484 94,380 94,370 94,351 Time: 142,370 141,910 142,882 143,847 142,232 142,758 142,729 143,415 52 Individuals, partnerships, and corporations 108,361 108,051 108,868 109,842 108,478 108,996 109,268 109,651 53 States and political subdivisions.................. 20,352 20,131 20,062 19,921 19,999 20,343 20,474 20,666 54 Domestic interbank..................................... 4,712 4,750 4,847 4,880 4,565 4,421 4,416 4,388 55 Foreign govts., official institutions, etc....... 7,370 7,380 7,449 7,549 7,477 7,386 6,971 7,122 56 Federal funds purchased, etc.5............................... 70,098 65,106 68,754 69,464 71,174 73,166 74,537 71,381 Borrowings from: 57 F.R. Banks............................................................ 708 894 1,075 387 75 263 68 289 58 4,535 4,640 4,617 5,007 4,745 3,785 3,627 3,553 59 Other liabilities, etc.6.............................................. 26,796 27,226 25,933 25,890 25,350 25,340 26,535 25,236 60 Total equity capital and subordinated notes/debentures 7............................................. 42,663 42,596 42,691 42,748 42,918 43,044 43,003 43,064 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 June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27 1Total loans and investments..................................... 91,205 93,897 91,018 92,491 92,596 92,160 92,739 90,163 Loans: 2 Federal funds sold 1.............................................. 3,361 3,715 3,627 4,503 3,461 3,417 3,760 2,761 3 To commercial banks....................................... 1,808 2,460 2,512 3,304 2,120 1,906 2,339 1,465 To brokers and dealers involving— 4 U.S. Treasury securities............................... 1,119 685 494 563 647 884 469 636 5 Other securities............................................. 1 0 3 0 5 3 0 0 6 To others.......................................................... 433 570 618 636 689 624 952 660 7 Other, gross.......................................................... 67,318 68,739 67,064 67,850 68,592 67,892 68,036 67,427 8 Commercial and industrial.............................. 33,503 33,856 34,467 34,446 34,353 33,840 33,677 33,897 9 Agricultural...................................................... 131 129 157 149 150 148 146 145 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities........................... 1,888 1,900 690 812 1,493 1,444 927 826 11 Other securities......................................... 4,084 4,730 4,252 4,507 4,336 4,324 4,920 4,557 To others: 12 U.S. Treasury securities........................... 24 24 24 24 24 25 24 23 13 Other securities......................................... 346 345 346 347 347 347 341 376 To nonbank financial institutions: 14 Personal and sales finance cos., etc............. 2,395 2,619 2,446 2,402 2,531 2,527 2,351 2,390 15 Other.............................................................. 4,927 4,968 4,900 4,893 4,775 A,121 4,747 4,758 16 Real estate........................................................ 8,761 8,777 8,761 8,732 8,687 8,701 8,685 8,680 To commercial banks: 17 Domestic....................................................... 479 738 545 750 674 752 743 708 18 Foreign.......................................................... 2,770 2,569 2,511 2,698 2,780 2,689 2,933 2,777 19 Consumer instalment....................................... 4,090 4,109 4,124 4,144 4,145 4,144 4,152 4,151 20 Foreign governments, official institutions, etc. 326 305 332 331 342 365 375 418 21 All other loans.................................................. 3,594 3,670 3,509 3,615 3,955 3,859 4,015 3,721 22 Less : Loan loss reserve and unearned income on loans................................................. 1,682 1,688 1,678 1,633 1,605 1,626 1,642 1,634 23 Other loans, net.................................................... 65,636 67,051 65,386 66,217 66,987 66,266 66,394 65,793 Investments: 24 U.S. Treasury securities....................................... 11,941 12,669 11,676 11,373 11,772 12,002 12,070 11,310 25 Bills.................................................................... 3,441 4,449 3,553 3,258 3,555 3,686 3,739 3,083 Notes and bonds, by maturity: 26 Within 1 year................................................ 1,182 1,180 1,174 1,232 1,351 1,355 1,412 1,440 27 1 to 5 years................................................... 6,489 6,199 6,156 6,018 5,989 5,814 5,898 5,819 28 After 5 years................................................. 829 841 793 865 877 1,147 1,021 968 29 Other securities..................................................... 10,267 10,462 10,329 10,398 10,376 10,475 10,515 10,299 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 2,435 2,451 2,418 2,355 2,329 2,525 2,443 2,334 31 All other........................................................ 6,059 6,200 6,172 6,238 6,242 6,298 6,338 6,323 Other bonds, corporate stocks, and securities: 32 Certificates of participation2....................... 213 214 214 211 201 200 196 195 33 All other, including corporate stocks......... 1,560 1,597 1,525 1,594 1,604 1,452 1,538 1,447 34 Cash items in process of collection........................ 12,186 15,515 13,595 14,358 14,587 12,457 15,930 14,150 35 Reserves with F.R. Banks....................................... 4,862 5,931 4,972 4,006 5,464 5,871 5,134 5,288 36 Currency and coin................................................... 885 870 882 906 817 865 825 857 37 Balances with domestic banks................................. 7,643 5,701 5,735 6,907 6,390. 5,630 6,210 5,571 38 Investments in subsidiaries not consolidated........ 1,284 1,284 1,285 1,289 1,289 1,302 1,312 1,307 39 Other assets.............................................................. 19,766 18,710 18,976 18,720 20,091 20,170 20,096 20,217 40 Total assets/total liabilities...................................... 137,831 141,908 136,463 138,677 141,234 138,455 142,246 137,553 Deposits: 41 Demand deposits................................................... 49,478 55,989 49,948 51,992 52,871 49,390 53,777 50,926 42 Individuals, partnerships, and corporations.. 25,610 30,536 27,282 28,307 29,505 27,314 29,190 27,035 43 States and political subdivisions..................... 652 760 649 529 605 491 519 474 44 U.S. Govt.......................................................... 85 3,178 324 112 494 97 514 298 Domestic interbank: 45 Commercial.................................................. 13,903 12,061 11,181 12,747 12,519 12,066 12,166 12,245 46 Mutual savings............................................. 466 378 391 416 599 496 510 480 Foreign : 47 Governments, official institutions, etc......... 1,247 911 888 1,062 986 811 1,060 1,282 48 Commercial banks....................................... 4,594 4,356 4,746 4,974 4,619 4,598 5,369 5,544 49 Certified and officers’ checks........................... 2,921 3,809 4,487 3,845 3,544 3,517 4,449 3,568 50 Time and savings deposits3................................... 42,302 41,960 42,215 42,360 41,700 41,562 41,466 41,486 51 Savings4............................................................ 10,776 10,781 10,741 10,694 10,684 10,663 10,671 10,634 Time: 31,526 31,179 31,474 31,666 31,016 30,899 30,795 30,852 52 Individuals, partnerships, and corporations 23,198 22,943 23,100 23,366 23,040 23,072 23,071 23,028 53 States and political subdivisions.............. 1,469 1,441 1,412 1,357 1,210 1,256 1,281 1,303 54 Domestic interbank..................................... 1,792 1,821 1,889 1,874 1,737 1,636 1,613 1,587 55 Foreign govts., official institutions, etc....... 4,169 4,104 4,187 4,180 4,152 4,060 3,969 4,071 56 Federal funds purchased, etc. 5............................... 19,735 17,384 18,517 18,813 21,553 22,267 21,054 20,130 Borrowings from: 57 F.R. Ranks........................................................... 580 110 396 58 Others................................................................... 1,837 1,812 1,721 1,793 1,733 1,552 1,483 1,409 59 Other liabilities, etc. 6.............................................. 11,846 12,601 11,535 11,579 11,216 11,500 12,295 11,422 60 Total equity capital and subordinated notes/debentures 7............................................. 12,053 12,052 12,131 12,140 12,161 12,184 12,171 12,180 1 Includes securities purchased under agreements to resell. 5 Includes securities sold under agreements to repurchase. 2 Federal agencies only. * 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 □ August 1977 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27 1 331,763 332,102 330,081 331,919 333,810 332,912 332,717 332,074 Loans: 2 Federal funds sold1................................................... 21,544 19,502 17,935 18,939 21,060 19,753 19,080 18,853 3 To commercial banks...................................... 14,845 14,074 14,756 15,966 16,896 16,157 15,965 15,449 To brokers and dealers involving— 4 U.S. Treasury securities............................... 4,749 3,536 1,780 1,648 2,722 2,178 1,784 1,907 5 Other securities............................................ 569 466 433 292 405 329 402 424 6 To others.......................................................... 1,371 1,426 966 1,033 1,037 1,089 929 1,073 7 Other, gross............................................................... 226,714 228,260 228,781 229,836 230,342 230,310 230,942 231,521 8 Commercial and industrial............................. 84,241 84,515 85,186 84,993 84,746 84,752 84,764 84,966 9 Agricultural...................................................... 4,464 4,499 4,531 4,544 4,544 4,565 4,593 4,600 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities........................... 270 277 190 194 225 291 219 146 11 Other securities......................................... 3,726 4,018 3,926 4,153 4,301 4,252 4,386 4,284 To others: 12 U.S. Treasury securities........................... 68 71 71 66 50 52 49 49 13 Other securities......................................... 2,163 2,174 2,163 2,193 2,206 2,209 2,207 2,198 To nonbank financial institutions: 14 Personal and sales finance cos., etc............. 5,078 5,108 4,964 4,949 4,918 4,884 4,824 4,830 15 Other............................................................. 10,630 10,750 10,633 10,769 10,669 10,635 10,558 10,537 16 Real estate........................................................ 57,741 58,069 58,309 58,989 59,236 59,606 59,835 60,068 To commercial banks: 17 1,301 1,324 1,304 1,384 1,355 1,261 1,229 1,204 18 Foreign.......................................................... 3,038 2,974 3,004 3,082 3,185 3,076 3,219 3,134 19 Consumer instalment....................................... 37,226 37,474 37,624 37,544 37,592 37,703 37,884 38,114 20 Foreign governments, official institutions, etc. 1,250 1,201 1,195 1,200 1,175 1,174 1,163 1,206 21 All other loans.................................................. 15,518 15,806 15,681 15,776 16,140 15,850 16,012 16,185 22 Less : Loan reserve and unearned income on loans.................................................... 7,297 7,340 7,387 7,334 7,315 7,370 7,408 7,448 23 Other loans, net......................................................... 219,417 220,920 221,394 222,502 223,027 222,940 223,534 224,073 Investments: 24 U.S. Treasury securities........................................... 37,843 38,119 37,348 36,922 36,054 35,814 35,819 35,255 25 Bills................................................................... 6,501 6,510 6,048 5,884 5,303 5,199 5,147 A,911 Notes and bonds, by maturity: 26 Within 1 year................................................ 7,638 7,710 7,599 7,674 7,711 7,758 7,871 7,793 27 1 to 5 years.................................................... 20,591 20,731 20,678 20,268 20,072 19,853 19,782 19,512 28 After 5 years................................................. 3,113 3,168 3,023 3,096 2,968 3,004 3,019 2,973 29 Other securities.......................................................... 52,959 53,561 53,404 53,556 53,669 54,405 54,284 53,893 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 6,128 6,017 5,982 5,931 6,270 6,709 6,422 6,358 31 All other........................................................ 35,062 35,422 35,436 35,439 35,305 35,590 35,592 35,418 Other bonds, corporate stocks, and securities: 32 Certificates of participation2....................... 1,832 1,849 1,832 1,920 1,888 1,863 1,909 1,862 33 All other, including corporate stocks......... 9,937 10,273 10,154 10,266 10,206 10,243 10,361 10,255 34 Cash items in process of collection......................... 23,961 29,213 24,538 24,574 32,022 26,208 25,423 24,212 35 Reserves with F. R. Banks..................................... 11,247 15,336 13,719 12,770 11,918 12,908 16,914 15,197 4,824 4,859 5,037 5,213 4,620 5,182 5,120 5,171 6,626 7,087 7,003 7,831 7,937 7,155 6,766 7,032 38 Investments in subsidiaries not consolidated........ 1,410 1,407 1,389 1,386 1,370 1,370 1,426 1,460 39 35,756 35,883 35,147 35,076 37,065 36,399 35,316 34,492 415,587 425,887 416,914 418,769 428,742 422,134 423,682 419,638 Deposits: 41 Demand deposits......................................................... 122,293 135,290 123,497 124,027 136,127 128,463 127,282 124,976 42 Individuals, partnerships, and corporations.. 97,987 103,927 98,588 98,564 105,653 102,827 100,687 99,382 43 States and political subdivisions..................... 4,925 5,477 5,434 5,769 5,790 5,143 5,447 5,341 44 U.S. Govt.......................................................... 836 6,734 1,576 1,237 2,219 1,208 2,096 1,604 Domestic interbank: 45 Commercial.................................................. 13,081 13,414 12,353 12,660 16,245 13,344 13,208 12,843 46 Mutual savings............................................. 404 408 389 416 525 430 446 417 Foreign: 47 Governments, official institutions, etc......... 261 241 232 204 285 280 256 285 48 1,388 1,309 1,371 1,382 1,394 1,547 1,446 1,500 49 Certified and officers’ checks........................... 3,411 3,780 3,554 3,795 4,016 3,684 3,696 3,604 50 194,545 194,094 194,647 195,571 195,016 195,576 195,633 196,280 51 Savings4............................................................ 83,701 83,363 83,239 83,390 83,800 83,717 83,699 83,717 Time: 110,844 110,731 111,408 112,181 111,216 111,859 111,934 112,563 52 Individuals, partnerships, and corporations 85,163 85,108 85,768 86,476 85,438 85,924 86,197 86,623 53 States and political subdivisions................. 18,883 18,690 18,650 18,564 18,789 19,087 19,193 19,363 54 Domestic interbank..................................... 2,920 2,929 2,958 3,006 2,828 2,785 2,803 2,801 55 Foreign govts., official institutions, etc....... 3,201 3,276 3,262 3,369 3,325 3,326 3,002 3,051 50,363 47,722 50,237 50,651 49,621 50,899 53,483 51,251 Borrowings from: 57 F. R. Banks.......................................................... 128 784 679 387 75 263 68 289 58 Others.................................................................... 2,698 2,828 2,896 3,214 3,012 2,233 2,144 2,144 14,950 14,625 14,398 14,311 14,134 13,840 14,240 13,814 60 Total equity capital and subordinated 30,610 30,544 30,560 30,608 30,757 30,860 30,832 30,884 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

Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures Account and bank group June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27 Total loans (gross) and investments, adjusted1 1 Large banks............................................................... 413,514 416,431 411,047 411,973 414,281 413,992 414,230 412,493 2 New York City banks..................................... 90,600 92,387 89,639 90,070 91,407 91,128 91,299 89,624 3 Banks outside New York City........................ 322,914 324,044 321,408 321,903 322,874 322,864 322,931 322,869 Total loans (gross), adjusted 4 Large banks............................................................... 300,504 301,620 298,290 299,724 302,410 301,296 301,542 301,736 5 New York City banks..................................... 68,392 69,256 67,634 68,299 69,259 68,651 68,714 68,015 6 Banks outside New York City........................ 232,112 232,364 230,656 231,425 233,151 232,645 232,828 233,721 Demand deposits, adjusted2 7 Large banks................................................................ 107,719 111,164 109,878 110,331 110,912 112,473 111,722 110,550 8 New York City banks..................................... 23,304 25,235 24,848 24,775 25,271 24,770 25,167 24,233 9 Banks outside New York City........................ 84,415 85,929 85,030 85,556 85,641 87,703 86,555 86,317 Large negotiable time CD’s included in time and savings deposits3 Total: 10 Large banks.............................................................. 62,983 62,559 63,322 64,002 62,214 62,544 62,329 63,082 11 New York City................................................. 20,786 20,338 20,593 20,737 20,232 20,056 19,976 20,018 12 Banks outside New York City........................ 42,197 42,221 42,729 43,265 41,982 42,488 42,353 43,064 Issued to IPC’s: 13 Large banks............................................................... 41,588 41,057 41,630 42,353 41,219 41,585 41,704 42,144 13,942 13,547 13,690 13,930 13,715 13,696 13,691 13,657 15 Banks outside New York City........................ 27,646 27,510 27,940 28,423 27,504 27,889 28,013 28,487 Issued to others: 16 Large banks................................................................ 21,395 21,502 21,692 21,649 20,995 20,959 20,625 20,938 17 New York City banks..................................... 6,844 6,791 6,903 6,807 6,517 6,360 6,285 6,361 18 Banks outside New York City........................ 14,551 14,711 14,789 14,842 14,478 14,599 14,340 14,577 All other large time deposits4 Total: 19 Large banks.............................................................. 26,239 26,070 26,163 26,298 26,530 26,788 26,999 27,099 20 New York City banks..................................... 5,381 5,395 5,418 5,466 5,400 5,500 5,462 5,468 21 Banks outside New York City........................ 20,858 20,675 20,745 20,832 21,130 21,288 21,537 21,631 Issued to IPC’s: 22 Large banks............................................................... 14,391 14,469 14,594 14,694 14,609 14,761 14,927 14,998 23 New York City banks..................................... 3,959 4,015 4,014 4,039 4,000 4,093 4,084 4,081 24 Banks outside New York City........................ 10,432 10,454 10,580 10,655 10,609 10,668 10,843 10,917 Issued to others: 25 Large banks................................................................ 11,848 11,601 11,569 11,604 11,921 12,027 12,072 12,101 26 New York City banks..................................... 1,422 1,380 1,404 1,427 1,400 1,407 1,378 1,387 27 Banks outside New York City....................... 10,426 10,221 10,165 10,177 10,521 10,620 10,694 10,714 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks............................................................... 87,014 86,707 86,652 86,928 87,441 87,373 87,358 87,357 9,716 9,688 9,688 9,681 9,754 9,734 9,733 9,720 30 Banks outside New York City........................ 77,298 77,019 76,964 77,247 77,687 77,639 77,625 77,637 Partnerships and corporations for profit:5 31 Large banks................................................................ 5,130 5,048 5,061 5,062 5,075 5,077 5,086 5,132 572 566 564 567 567 573 570 573 33 Banks outside New York City........................ 4,558 4,482 4,497 4,495 4,508 4,504 4,516 4,559 Domestic governmental units: 34 Large banks................................................................ 2,285 2,334 2,209 2,041 1,926 1,886 1,884 1,820 35 New York City banks..................................... 458 492 451 411 339 332 347 320 36 Banks outside New York City........................ 1,827 1,842 1,758 1,630 1,587 1,554 1,537 1,500 All other:6 37 Large banks................................................................ 48 55 58 53 42 44 42 42 38 New York City banks..................................... 30 35 38 35 24 24 21 21 39 Banks outside New York City........................ 18 20 20 18 18 20 21 21 Gross liabilities of banks to their foreign branches 40 Large banks................................................................ 3,155 5,597 3,751 4,535 4,184 3,426 4,725 3,431 41 New York City banks..................................... 1,911 4,349 2,398 2,636 2,532 2,160 3,083 1,613 42 Banks outside New York City........................ 1,244 1,248 1,353 1,899 1,652 1,266 1,642 1,818 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial.................................. 2,698 2,742 2,834 2,844 2,830 2,827 2,829 2,839 44 Real estate............................................................ 204 216 217 193 205 195 209 196 45 All other............................................................... 1,053 1,028 1,009 985 985 1,011 1,006 1,015 1 Exclusive of loans and Federal funds transactions with domestic 5 Other than commercial banks. commercial banks. 6 Domestic and foreign commercial banks, and official international 2 All demand deposits except U.S. Govt, and domestic commercial organizations. banks, less cash items in process of collection. 7 To bank’s own foreign branches, nonconsolidated nonbank af­ 3 Certificates of deposit (CD’s) issued in denominations of $100,000 or filiates of the bank, the bank’s holding company (if not a bank), and more. nonconsolidated nonbank subsidiaries of the holding company. 4 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD’s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Financial Statistics □ August 1977 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1977 1977 1977 June 29 July 6 July 13 July 20 July 27 Ql Q2 May June July Total loans classified2 1 Total.................................................... 97,336 97,033 96,570 96,491 96,734 -916 1,542 -136 1,481 -602 Durable goods manufacturing: 2 Primary metals................................ 2,416 2,350 2,287 2,329 2,323 377 -161 -7 10 -93 3 Machinery....................................... 4,804 4,772 4,703 4,768 4,744 108 38 -35 56 -60 4 Transportation equipment............. 2,398 2,404 2,412 2,438 2,421 74 94 35 -18 23 5 Other fabricated metal products... 1,961 1,976 1,968 1,928 1,936 181 70 -18 72 -25 6 Other durable goods...................... 3,667 3,688 3,664 3,630 3,602 90 323 -15 228 -65 Nondurable goods manufacturing: 7 Food, liquor, and tobacco............. 3,328 3,280 3,240 3,233 3,177 -151 -21 -1 43 -151 8 Textiles, apparel, and leather........ 3,852 3,915 3,928 3,957 4,048 381 475 111 226 196 9 Petroleum refining.......................... 2,621 2,610 2,590 2,591 2,631 -305 285 68 134 10 10 Chemicals and rubber.................... 2,757 2,784 2,802 2,782 2,768 131 68 -48 32 11 11 Other nondurable goods................ 2,022 1,998 2,023 2,026 2,014 147 -22 13 -33 -8 12 Mining, including crude petroleum and natural gas........................... 8,172 8,164 8,133 8,114 8,160 94 757 170 403 -12 Trade: 13 Commodity dealers......................... 1,703 1,687 1,622 1,501 1,496 204 -434 -217 -86 -207 14 Other wholesale............................... 6,761 6,816 6,781 6,730 6,727 465 36 -124 40 -34 15 Retail............................................... 6,887 6,858 6,855 7,026 7,169 405 380 156 140 282 16 Transportation.................................... 5,037 4,932 4,936 4,877 4,914 -140 -128 -14 27 -123 17 Communication.................................. 1,196 1,368 1,268 1,265 1,232 -10 -152 -6 -107 36 18 Other public utilities........................... 5,552 5,277 5,265 5,247 5,238 -61 12 -3 167 -314 19 Construction....................................... 4,267 4,282 4,296 4,353 4,381 64 294 85 148 114 20 Services................................................ 11,284 11,197 11,101 11,136 11,137 398 331 187 23 -147 21 All other domestic loans.................... 7,721 7,764 7,637 7,652 7,689 -303 105 140 69 -32 22 Bankers acceptances........................... 3,680 3,706 3,828 3,670 3,691 -2,930 -263 -283 6 11 23 Foreign commercial and industrial loans............................................ 5,250 5,205 5,231 5,238 5,236 -135 -545 -330 -99 -14 Memo: 24 Commercial paper included in total classified loans1................. 318 243 -216 -34 -10 70 — 75 25 Total commercial and industrial loans of all large weekly reporting banks........................... 119,439 119,099 118,592 118,441 118,862 203 2,648 -27 1,819 -576 1977 1977 1977 Mar. 30 Apr. 27 May 25 June 29 July 27 Ql Q2 May June July “Term” loans classified3 26 Total.................................................... 45,841 45,893 46,107 46,516 45,901 630 675 214 409 -615 Durable goods manufacturing: 27 Primary metals................................ 1,521 1,344 1,342 1,388 1,323 204 -133 -2 46 -65 28 Machinery....................................... 2,552 2,499 2,490 2,520 2,414 -33 -32 -9 30 -106 29 Transportation equipment............. 1,339 1,383 1,386 1,382 1,404 -13 43 3 -4 22 30 Other fabricated metal products... 820 841 826 832 813 44 12 -15 6 -19 31 Other durable goods....................... 1,625 1,630 1,647 1,722 1,719 97 17 75 — 3 Nondurable goods manufacturing: 32 Food, liquor, and tobacco............. 1,412 1,374 1,438 1,435 1,363 14 23 64 -3 -72 33 Textiles, apparel, and leather........ 1,071 1,099 1,163 1,150 1,204 -27 79 64 -13 54 34 Petroleum refining.......................... 1,770 1,805 1,824 1,938 1,975 -202 168 19 114 37 35 Chemicals and rubber.................... 1,547 1,589 1,615 1,646 1,677 103 99 26 31 31 36 Other nondurable goods................ 1,032 1,101 1,172 1,128 1,118 78 96 71 -44 -10 37 Mining, including crude petroleum and natural gas........................... 5,856 6,015 6,043 6,375 6,250 173 519 28 332 -125 Trade: 38 Commodity dealers......................... 199 199 202 171 180 -1 -28 3 -31 9 39 Other wholesale.............................. 1,479 1,489 1,519 1,483 1,478 16 4 30 -36 -5 40 Retail............................................... 2,268 2,274 2,353 2,325 2,331 223 57 79 -28 6 41 Transportation................................... 3,773 3,695 3,604 3,649 3,607 -164 -124 -91 45 -42 42 Communication.................................. 779 802 793 748 764 -68 -31 -9 -45 16 43 Other public utilities........................... 3,907 3,796 3,796 3,771 3,416 243 — 136 — 25 — 355 44 Construction....................................... 1,661 1,720 1,722 1,833 1,873 32 172 2 111 40 45 Services................................................ 5,111 5,188 5,283 5,301 5,247 113 190 95 18 -54 46 All other domestic loans.................... 2,433 2,408 2,465 2,432 2,464 -167 -1 57 -33 32 47 Foreign commercial and industrial loans............................................ 3,686 3,642 3,424 3,287 3,281 62 -399 -218 -137 -6 1 Reported for the last Wednesday of each month. all outstanding loans granted under a formal agreement—revolving credit 2 Includes “term” loans, shown below. or standby—on which the original maturity of the commitment was in 3 Outstanding loans with an original maturity of more than 1 year and excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deposits and Commercial Paper A25 1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations Billions of dollars, estimated daily-average balances At commercial banks Type of holder 1975 1976 1977 1972 1973 1974 Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar. June? 1 All holders, IPC..................................................... 208.0 220.1 225.0 236.9 227.9 234.2 236.1 250.1 242.3 253.8 2 Financial business.................................................. 18.9 19.1 19.0 20.1 19.9 20.3 19.7 22.3 21.6 25.9 109.9 116.2 118.8 125.1 116.9 121.2 122.6 130.2 125.1 129.2 4 Consumer............................................................... 65.4 70.1 73.3 78.0 77.2 78.8 80.0 82.6 81.6 84.1 1.5 2.4 2.3 2.4 2.4 2.5 2.3 2.7 2.4 2.5 12.3 12.4 11.7 11.3 11.4 11.4 11.5 12.4 11.6 12.2 At weekly reporting banks 1976 1977 1973 1974 1975 Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June? 7 All holders, IPC..................................................... 118.1 119.7 124.4 128.5 127.4 123.0 124.7 127.5 124.4 128.7 8 Financial business.................................................. 14.9 14.8 15.6 17.5 16.7 15.6 16.7 16.7 17.0 17.8 9 Nonfinancial business............................................ 66.2 66.9 69.9 69.7 69.5 67.4 67.8 68.5 67.2 69.5 10 Consumer................................................................ 28.0 29.0 29.9 31.7 32.0 31.1 31.5 33.5 31.5 32.3 11 Foreign.................................................................... 2.2 2.2 2.3 2.6 2.2 2.4 2.2 2.3 2.4 2.4 12 Other....................................................................... 6.8 6.8 6.6 7.1 7.1 6.5 6.5 6.6 6.4 6.7 Note.—Figures include cash items in process of collection. Estimates of banks. Types of depositors in each category are described in the June 1971 gross deposits are based on reports supplied by a sample of commercial Bulletin, p. 466. 1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1976 1977 1974 1975 1976 Instrument Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June Commercial paper (seasonally adjusted) 1 49,742 48,145 52,623 52,623 52,778 52,775 54,546 56,715 57,434 61,237 Financial companies:1 Dealer-placed paper;2 2 Total................................................................ 4,599 6,220 7,271 7,271 7,053 6,931 7,196 7,286 7,555 8,196 3 Bank-related.................................................... 1,814 1,762 1,900 1,900 1,895 1,929 1,839 1,778 1,805 1,894 Directly-placed paper:3 4 Total................................................................ 31,801 31,230 32,365 32,365 32,726 32,073 33,873 34,753 34,949 37,593 5 Bank-related.................................................... 6,518 6,892 5,959 5,959 5,637 5,502 6,126 5,703 5,999 6,636 6 Nonfinancial companies4...................................... 13,342 10,695 12,987 12,987 12,999 13,771 13,475 14,676 14,930 15,538 Dollar acceptances (not seasonally adjusted) 7 Total........................................................................ 18,484 18,727 22,523 22,523 22,362 22,187 22,694 22,899 23,201 23,440 Held by: 8 Accepting banks.................................................. 4,226 7,333 10,442 10,442 8,183 7,991 7,787 7,761 7,326 7,630 9 Own bills......................................................... 3,685 5,899 8,769 8,769 7,011 6,654 6,367 6,309 '6,218 6,356 10 Bills bought.................................................... 542 1,435 1,673 1,673 1,172 1,337 1,421 1,381 1,108 1,273 F.R. Banks: 11 Own account.................................................. 999 1,126 991 991 191 322 280 881 108 228 12 Foreign correspondents................................. 1,109 293 375 375 374 440 435 394 385 360 13 Others.................................................................. 12,150 9,975 13,447 10,715 13,615 13,434 14,191 13,863 15,382 15,222 Based on: 14 Imports into United States............................... 4,023 3,726 4,992 4,992 4,992 5,138 4,983 5,114 5,124 5,635 15 Exports from United States.............................. 4,067 4,001 4,818 4,818 5,137 5,074 5,222 5,376 5,642 5,729 16 All other.............................................................. 10,394 11,000 12,713 12,713 12,233 11,974 12,489 12,410 12,436 12,076 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 □ August 1977 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Month Average Month Average Effective date Rate Effective date Rate rate rate 1976_Jan 12............. 7 1976—Oct. 4........... 6 y4 1976—Feb....................... 6.75 1976—Nov...................... 6.50 21. .. 63^ Mar...................... 6.75 Dec...................... 6.35 Nov. 1........... 61/2 Apr...................... 6.75 June 1 7 May..................... 6.75 1977—Jan....................... 6.25 7 .. 7% Dec. 13........... 6V4 June..................... 7.20 Feb...................... 6.25 July..................... 7.25 Mar..................... 6.25 Aug. 2............. 7 1977—May 13........... 61/2 Aug...................... 7.01 Apr...................... 6.25 31........... 63/4 Sept...................... 7.00 May..................... 6.41 Oct....................... 6.78 6.75 1.35 TERMS OF LENDING AT COMMERCIAL BANKS May 2-7, 1977, survey Per cent per annum Size of loan (in thousands of dollars) All Item sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over Short-term commercial and industrial loans 1 Amount of loans (thousands of dollars). 6,652,747 806,754 431,421 504,177 1,247,257 605,755 3,057,385 2 Number of loans...................................... 144,391 113,551 13,447 7,967 7,316 962 1,148 3 Weighted-average maturity (months). . . 2.9 3.2 3.7 3.8 2.7 2.7 2.7 4 Weighted-average interest rate (per cent) 7.37 9.04 8.39 8.04 7.57 7.11 6.65 5 Interquartile range 1............................ 6.40-8.14 8.03-9.50 7.71-9.20 7.25-8.97 6.50-8.30 6.40-7.54 6.25-6.92 Percentage of amount of loans: 6 With floating rate................................. 47.2 12.6 18.3 34.1 40.7 49.8 64.6 7 Made under commitment................... 52.4 23.0 33.5 36.1 51.3 61.0 64.2 Long-term commercial and industrial loans 8 Amount of loans (thousands of dollars). 1,651,267 439,081 175,761 183,375 188,678 74,981 589,391 9 Number of loans..................................... 59,524 49,530 5,398 3,157 1,172 119 150 10 Weighted-average maturity (months) 35.0 18.8 23.1 46.8 49.1 42.9 41.5 11 Weighted-average interest rate (per cent) 8.24 9.31 8.95 8.71 8.03 8.03 7.18 12 Interquartile range 1............................ 7.20-9.25 7.50-9.50 7.26-9.38 7.25-10.20 6.98-9.00 6.84-8.84 6.51-7.45 Percentage of amount of loans: 13 With floating rate................................. 36.7 3.0 7.3 9.1 42.1 68.3 73.4 14 Made under commitment.................... 45.1 9.4 8.5 19.0 37.3 68.9 90.2 Construction and land development loans 15 Amount of loans (thousands of dollars)., 863,318 167,107 87,280 331,708 145,933 131,289 16 Number of loans....................................... 28,820 19,843 2,763 5,100 1,017 98 17 Weighted-average maturity (months) 7.5 8.0 5.7 4.8 9.5 12.7 18 Weighted-average interest rate (per cent) 8.72 9.28 8.95 8.79 8.46 7.97 19 Interquartile range 1............................ 8.16-9.25 8.25-9.92 8.00-9.73 8.71-8.71 8.00-9.00 7.43--8.91 Percentage of amount of loans: 20 With floating rate................................. 20.0 8.4 9.9 3.7 32.2 69.1 21 Secured by real estate.......................... 81.4 81.9 82.5 82.7 63.1 97.0 22 Made under commitment................... 39.4 46.4 56.3 13.6 45.5 77.4 23 Type of construction: 1-4 family.......... 55.9 75.9 74.6 61.4 23.6 39.9 24 Multifamily....................................... 11.9 4.3 1.0 18.6 7.9 16.7 25 Nonresidential.................................. 32.2 19.8 24.4 20.0 68.5 43.4 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over Loans to farmers 26 Amount of loans (thousands of dollars)....................... 924,826 196,521 212,922 140,441 145,491 102,271 127,180 27 Number of loans............................................................ 77,543 56,467 13,784 4,109 2,219 765 199 28 Weighted-average maturity (months)........................... 8.3 8.1 7.9 11.5 6.6 5.9 9.6 29 Weighted-average interest rate (per cent)..................... 8.73 9.06 8.98 8.98 8.73 8.58 7.67 30 Interquartile range 1................................................... 8.25-9.20 8.62-9.34 8.50-9.24 8.45-9.20 8.31-9.20 8.16-9.07 6.27-8.68 31 By purpose of loan: 32 Feeder livestock...................................................... 8.42 8.84 8.80 8.65 8.55 8.19 7.68 33 Other livestock........................................................ 8.20 8.89 8.91 9.41 8.81 8.47 6.77 34 Other current operating expenses.......................... 8.84 9.01 8.95 8.81 8.91 8.59 8.01 35 Farm machinery and equipment........................... 9.40 9.47 9.44 9.74 8.96 8.58 8.72 36 Other........................................................................ 8.82 9.04 8.90 9.04 8.66 8.73 8.78 1 Interest rate range that covers the middle 50 per cent of the total Note.—For more information, see the Board’s G.14 statistical release, dollar amount of loans made. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A ll 1.36 INTEREST RATES Money and Capital Markets Averages, per cent per annum 1977 1977, week ending— Instrument 1974 1975 1976 Apr. May June July July 2 July 9 July 16 July 23 July 30 Money market rates Prime commercial paper 1 1 90- to 119-day............... 10.05 6.26 5.24 4.75 5.26 5.42 5.38 5.38 5.38 5.38 5.38 5.41 2 4- to 6-month................ 9.87 6.33 5.35 4.87 5.35 5.49 5.41 5.44 5.43 5.41 5.40 5.42 3 Finance company paper, directly placed, 3- to 6-month 2................................... 8.62 6.16 5.22 4.81 5.13 5.38 5.38 5.38 5.38 5.38 5.38 5.38 4 Prime bankers acceptances, 90-day 3. 9.92 6.30 5.19 4,78 5.34 5.39 5.43 5.35 5.38 5.41 5.44 5.49 5 Federal funds 4................................... 10.51 5.82 5.05 4.73 5.35 5.39 5.42 5.43 5.35 5.33 5.35 5.45 Large negotiable certificates of deposit 6 3-month, secondary market 5............ 10.27 6.43 5.26 4.81 5.20 5.42 5.46 5.40 5.45 5.45 5.43 5.65 7 3-month, primary market 6............... 5.15 4.72 5.13 5.35 5.32 5.30 5.25 5.38 5.38 5.65 8 Euro-dollar deposits, 3-month 7. 10.96 6.97 5.57 5.16 5.70 5.78 5.80 5.79 5.75 5.78 6.11 U.S. Govt, securities Bills: 8 Market yields: 9 3-month............................. 7.84 5.80 4.98 4.54 4.96 5.02 5.19 4.97 5.12 5.16 5.21 5.27 10 6-month............................. 7.95 6.11 5.26 4.80 5.20 5.21 5.40 5.19 5.29 5.37 5.43 5.51 11 1-year................................. 7.71 6.30 5.52 5.10 5.43 5.41 5.57 5.39 5.46 5.51 5.60 5.70 Rates on new issue: 12 3-month............................. 7.886 5.838 4.989 4.540 4.942 5.004 5.146 4.965 5.044 5.163 5.214 5.163 13 6-month............................. 7.926 6.122 5.266 4.790 5.193 5.198 5.351 5.173 5.246 5.356 5.436 5.364 Notes and bonds maturing in 14 9 to 12 months 9................... .25 6.70 5.84 5.37 5.81 5.76 5.89 5.68 5.76 5.85 5.93 6.01 Constant maturities:1 o 15 1-year..................................... .18 6.76 5.88 5.44 5.84 5.80 5.88 5.72 5.81 5.88 5.99 6.08 Capital market rates Government notes and bonds U.S. Treasury: Constant maturities:1 o 16 2-year......................... 6.31 5.96 6.25 6.13 6.27 6.07 6.15 6.22 6.34 6.38 17 3-year......................... 7.82 7.49 6.77 6.31 6.55 6.39 6.51 6.32 6.40 6.47 6.55 6.61 18 5-year......................... 7.80 7.77 7.18 6.79 6.94 6.76 6.84 6.68 6.78 6.80 6.86 6.94 19 7-year......................... 7.71 7.90 7.42 7.11 7.26 7.05 7.12 6.98 7.08 7.09 7.12 7.18 20 10-year....................... 7.56 7.99 7.61 7.37 7.46 7.28 7.33 7.22 7.33 7.31 7.32 7.35 21 20-year....................... 8.05 8.19 7.86 7.67 7.74 7.64 7.60 7.57 7.58 7.60 7.62 7.61 22 30-year....................... 7.73 7.80 7.64 7.64 7.57 7.63 7.64 7.64 7.67 Notes and bonds maturing in?— 23 3 to 5 years............................... 7.81 7.55 6.94 6.58 6.76 6.58 6.67 6.49 6.60 6.62 6.69 6.77 24 Over 10 years (long-term)........ 6.99 6.98 6.78 7.14 7.17 6.99 6.97 6.90 6.94 6.96 6.99 7.01 State and local:11 Moody’s series: 25 Aaa......................... 5.89 6.42 5.66 5.18 5.23 5.21 5.21 5.18 5.20 5.20 5.22 5.22 26 Baa......................... 6.53 7.62 7.49 6.27 6.23 6.05 6.00 5.95 6.00 6.00 6.00 6.00 27 Bond Buyer series 12. 6.17 7.05 6.64 5.73 5.75 5.62 5.63 5.56 5.63 5.64 5.62 5.62 Corporate bonds Seasoned issues 13 28 All industries... . 9.03 9.57 9.01 8.49 8.47 8.38 8.33 8.32 8.33 8.34 8.33 8.34 By rating groups: 29 8.57 8.83 8.43 8.04 8.05 7.95 7.94 7.91 7.93 7.94 7.94 7.96 30 Aa.. 8.84 9.17 8.75 8.28 8.28 8.19 8.12 8.11 8.11 8.12 8.13 8.13 31 A... 9.20 9.65 9.09 8.55 8.55 8.46 8.40 8.40 8.40 8.40 8.40 8.40 32 Baa. 9.50 10.61 9.75 9.07 9.01 8.91 8.87 8.87 8.88 8.88 8.87 8.85 Aaa utility bonds:14 33 New issue..................... 9.33 9.40 8.48 8.26 8.33 8.08 8.14 8.14 8.14 8.12 8.17 34 Recently offered issues. 9.34 9.41 8.49 8.22 8.31 8.12 8.12 8.03 8.12 8.12 8.14 8.14 Dividend/price ratio 35 Preferred stocks.. 8.23 8.38 7.97 7.60 7.63 7.62 7.51 7.51 7.50 7.50 7.50 7.51 36 Common stocks. 4.47 4.31 3.77 4.47 4.39 4.60 4.59 4.56 4.59 4.59 4.50 4.66 1 Averages of the most representative daily offering rate quoted by 7 Averages of daily quotations for the week ending Wednesday. dealers. 8 Except for new bill issues, yields are computed from daily closing 2 Averages of the most representative daily offering rates published by bid prices. Yields for all bills are quoted on a bank-discount basis. finance companies for varying maturities in this range. 9 Unweighted averages for all outstanding notes and bonds in maturity 3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of ranges shown, based on daily closing bid prices. “Long-term” includes the range of daily dealer closing rates offered for domestic issues; prior all bonds neither due nor callable in less than 10 years. data are averages of the most representative daily offering rate quoted by Yields on the more actively traded issues adjusted to constant dealers. maturities by the U.S. Treasury, based on daily closing bid prices. 4 Weekly figures are 7-day averages of daily effective rates for the week 11 General obligations only, based on figures for Thursday, from ending Wednesday; the daily effective rate is an average of the rates on Moody’s Investors Service. a given day weighted by the volume of transactions at these rates. 12 Twenty issues of mixed quality. 5 Weekly figures are 7-day averages of the daily midpoints as determined 13 Averages of daily figures from Moody’s Investors Service. from the range of offering rates; monthly figures are averages of total days 14 Compilation of the Board of Governors of the Federal Reserve in the month. 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 FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ August 1977 1.37 STOCK MARKET Selected Statistics 1977 Indicator 1974 1975 1976 Jan. Feb. Mar. Apr. May June July 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 56.28 54.93 54.67 53.92 53,96 54.31 54.94 2 Industrial............................................................ 48.08 51.88 60.44 61.26 59.65 59.56 58.47 58.13 58.44 58.90 3 Transportation................................................... 31.89 30.73 39.57 41.93 40.59 40.52 41.51 43.25 43.29 43.52 4 Utility................................................................. 29.82 31.45 36.97 41.13 40.86 40.18 40.24 41.14 41.59 42.44 5 Finance............................................................... 49.67 46.62 52.94 57.86 55.65 54.84 54.30 54.80 55.15 57.29 6 Standard & Poor’s Corporation (1941-43 = 10)1.. 82.85 85.17 102.01 103.81 100.96 100.57 99.05 98.76 99.29 100.19 7 American Stock Exchange (Aug. 31,1973 = 100). 79.97 83.15 101.63 111.04 112.17 111.77 111.70 113.72 116.28 122.03 Volume of trading (thousands of shares)2 8 New York Stock Exchange............................... 13,883 18,568 21,189 23,562 19,310 17,814 17,380 18,700 20,478 19,215 9 American Stock Exchange................................ 1,908 2,150 2,565 3,268 2,830 2,580 2,500 2,440 2,720 2,880 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers and banks3.................................................. 4,836 6,500 9,011 9,301 9,523 9,701 9,887 10,068 10,255 11 Brokers, total...................................................... 3,980 5,540 8,166 8,469 8,679 8,891 9,078 9,267 9,432 12 Margin stock4................................................ 3,840 5,390 7,960 8,270 8,480 8,690 8,880 9,070 9,230 13 Convertible bonds.......................................... 137 147 204 196 197 199 196 196 198 14 Subscription issues......................................... 3 3 2 3 2 2 2 1 4 15 Banks, total........................................................ 856 960 r845 832 r844 810 809 801 823 16 Margin stocks................................................ 815 909 r800 788 r799 767 766 761 779 17 Convertible bonds.......................................... 30 36 r30 27 r28 25 25 25 25 18 Subscription issues......................................... 11 15 M5 17 17 18 18 15 19 19 Unregulated nonmargin stock credit at banks5... 2,064 2,281 r2,817 2,844 r2,850 2,293 2,878 2,886 2,992 Memo: Free credit balances at brokers6 20 Margin-account.................................................. 410 475 585 645 605 605 615 625 595 21 Cash-account...................................................... 1,425 1,525 1,855 1,930 1,815 1,720 1,715 1,710 1,805 Margin-accountdebt 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 15.0 17.6 16.5 16.5 17.8 12.9 24 40-49.................................... 23.0 28.8 23.0 28.8 34.9 36.8 34.1 35.6 27.0 25 50-59.................................... 13.9 22.3 35.0 28.0 23.4 23.2 25.4 23.0 33.0 26 60-69.................................... 8.8 11.6 15.0 13.0 11.3 11.6 11.8 11.0 13.3 27 70-79.................................... 4.6 6.9 8.7 8.3 7.3 6.7 6.8 7.0 8.0 28 80 or more........................... 4.3 5.3 6.0 5.8 5.5 5.3 5.4 5.0 5.8 Special miscellaneous-account balances at brokers (end of period) 29 Total balances (millions of dollars)8... 7,010 7,290 8,776 9,070 9,170 9,350 9,300 9,360 9,470 Distribution by equity status (per cent) 30 Net credit status................................. 41.1 43.8 41.3 42.3 42.9 42.3 41.4 41.0 41.0 Debit status, equity of— 31 60 per cent or more....................... 32.4 40.8 47.8 46.6 45.5 46.0 46.3 46.3 47.8 32 Less than 60 per cent..................... 26.5 15.4 10.9 11.1 11.6 11.7 12.4 12.6 11.2 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 Vi-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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Savings and loan associations 1 Assets.................................... 295,545 338,233 391,999 385,013 389,173 391,999 398,299 403,591 409,357 414,436 421,865 427,076 2 Mortgages............................. 249,301 278,590 323,130 315,742 319,273 323,130 326,056 329,086 333,703 338,984 344,631 350,777 3 Cash and investment 23,251 30,853 35,660 36,442 36,605 35,660 38,252 39,505 39,656 39,061 40,461 39,625 4 Other...................................... 22,993 28,790 33,209 32,829 33,295 33,209 33,991 35,000 35,998 36,391 36,773 36,674 5 Liabilities and net worth........ 295,545 338,233 391,999 385,013 389,173 391,999 398,299 403,591 409,357 414,436 421,865 427,076 6 Savings capital...................... 242,974 285,743 336,030 327,252 329,833 336,030 341,211 344,616 352,194 354,318 357,965 364,332 7 Borrowed money.................... 24,780 20,634 19,087 18,810 18,715 19,087 18,455 18,256 18,283 18,880 19,804 20,584 8 FHLBB.............................. 21,508 17,524 15,708 15,636 15,571 15,708 15,029 14,661 14,325 14,809 15,000 15,583 9 Other.................................. 3,272 3,110 3,379 3,174 3,144 3,379 3,426 3,595 3,958 4,071 4,804 5,001 10 Loans in process................... 3,244 5,128 6,836 6,735 6,753 6,836 6,718 6,783 7,351 7,899 8,505 9,134 11 Other...................................... 6,105 6,949 8,015 10,531 11,918 8,015 9,667 11,418 8,833 10,360 12,287 9,532 12 Net worth2............................ 18,442 19,779 22,031 21,685 21,954 22,031 22,248 22,518 22,696 22,979 23,304 23,494 13 Memo : Mortgage loan com­ mitments outstanding3.. 7,454 10,673 14,828 15,319 15,467 14,828 15,079 16,796 19,304 21,242 22,274 22,001 Mutual savings banks 14 Assets........................... 109,550 121,056 134,702 132,455 133,361 134,812 135,906 137,307 138,901 139,496 140,593 Loans: 15 Mortgage................. 74,891 77,221 81,554 80,543 80,884 81,630 81,826 81,982 82,273 82,687 83,075 16 Other........................ 3,812 4,023 5,192 5,549 5,801 5,183 5,956 6,254 6,389 6,050 6,650 Securities: 17 U.S. Govt................. 2,555 4,740 5,911 5,796 5,836 5,840 5,917 6,096 6,360 6,323 6,248 18 State and local government. 930 1,545 2.420 2,429 2,466 2,417 2,295 2,366 2,431 2,504 2,539 19 Corporate and other4....... 22,550 27,992 33,676 32,793 33,074 33,793 34,475 35,088 35,928 36,322 36,455 20 Cash....................................... 2,167 2,330 2,374 1,695 1,668 2,355 1,800 1,835 1,823 1,900 1,922 21 Other assets........................... 2,645 3,205 3,574 3,649 3,632 3,593 3,637 3,686 3,668 3,709 3,703 22 Liabilities............................... 109,550 121,056 134,702 132,455 133,361 134,812 135,906 137,307 138,901 139,496 140,593 23 Deposits................................. 98,701 109,873 122,802 120,360 120,971 122,877 123,864 124,728 126,687 126,938 127,791 24 Regular:5........................... 98,221 109,291 121,874 119,346 120,125 121,961 122,874 123,721 125,624 125,731 126,587 25 Ordinary savings............ 64,286 69,653 74,483 73,610 73,857 74,535 74,621 75,038 76,260 76,336 76,384 26 Time and other.............. 33,935 39,639 47,391 45,736 46,268 47,426 48,253 48,683 49,364 49,395 50,203 27 Other.................................. 480 582 928 1,014 846 916 989 1,007 1,063 1,207 1,204 28 Other liabilities..................... 2,888 2,755 2,853 3,140 3,376 2,884 2,940 3,368 2,939 3,230 3,381 29 General reserve accounts---- 7,961 8,428 9,047 8,955 9,015 9,052 9,102 9,211 9,275 9,329 9,422 30 Memo : Mortgage loan com­ mitments outstanding6.. 2,040 1,803 2,439 2,548 2,553 2,439 2,584 2,840 3,161 3,287 3,521 Life insurance companies 31 Assets..................... 263,349 289,304 321,552 314,845 317,499 321,552 323,407 325,094 326,753 328,786 331,028 Securities: 32 Government........ 10,900 13,758 17,942 18,019 18,390 17,942 18,198 18,443 18,470 18,500 18,475 33 United States7 3,372 4,736 5,368 5,821 5,992 5,368 5,537 5,592 5,546 5,544 5,396 34 State and local 3,667 4,508 5,594 5,463 5,533 5,594 5,657 5,709 5,732 5,758 5,797 35 Foreign®......... 3,861 4,514 6,980 6,735 6,865 6,980 7,004 7,142 7,192 7,198 7,282 36 Business.............. 119,637 135,317 157,246 153,291 154,382 157,246 159,213 160,463 161,214 162,816 164,126 37 Bonds.............. 97,717 107,256 122,984 120,610 121,763 122,984 125,910 127,603 128,596 130,057 131,568 38 Stocks.............. 21,920 28,061 34,262 32,681 32,619 34,262 33,303 32,860 32,618 32,759 32,558 39 Mortgages.............. 86,234 89,167 91,552 90,293 90,794 91,552 91,566 91,585 91,786 92,200 92,358 40 Real estate............. 8,331 9,621 10,476 10,231 10,244 10,476 10,556 10,629 10,738 10,802 10,822 41 Policy loans............ 22,862 24,467 25,834 25,594 25,695 25,834 25,911 26,034 26,207 26,364 26,500 42 Other assets........... 15,385 16,971 18,502 17,417 17,994 18,502 17,963 17,940 18,338 18,104 18,747 Creditunions 43 Total assets/liabilities and capital........................... 31,948 38,037 44,897 43,415 44,089 44,835 44,906 45,798 47,111 47,348 48,322 49,479 44 Federal............................. 16,715 20,209 24,164 23,283 23,668 24,164 24,188 24,756 25,596 25,697 26,259 27,017 45 State................................ 15,233 17,828 20,733 20,132 20,421 20,671 20,718 21,042 21,515 21,651 22,063 22,462 46 Loans outstanding................ 24,432 28,169 34,033 33,275 33,732 34,293 34,188 34,549 35,411 36,019 36,936 38,134 47 Federal............................. 12,730 14,869 18,022 17,522 17,786 18,202 18,081 18,275 18,776 19,050 19,583 20,303 48 State................................. 11,702 13,300 16,011 15,753 15,946 16,091 16,107 16,274 16,635 16,969 17,353 17,831 49 Savings................................. 27,518 33,013 39,264 37,854 38,281 38,968 39,344 39,981 41,161 41,394 42,125 43,196 50 Federal (shares)............... 14,370 17,530 21,149 20,358 20,597 20,980 21,165 21,559 22,346 22,524 22,955 23,608 51 State (shares and deposits) 13,148 15,483 18,115 17,496 17,684 17,988 18,179 18,442 18,815 18,870 19,170 19,588 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics □ August 1977 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year Transition quarter Type of account or operation (July- 1976 1977 1977 1975 1976 Sept. 1976) HI H2 HI Apr. May June U.S. Budget 1 Receipts.......................................... 280,997 300,005 81,773 160,552 157,961 190,238 40,016 27,672 43,075 2 Outlays 1,2..................................... 326,105 366,466 94,746 181,369 193,719 200,310 35,547 33,715 32,881 3 Surplus, or deficit (—)................ -45,108 -66,461 -12,973 -20,816 -35,758 -10,072 4,469 -6,043 10,194 4 Tryst funds................................. 7,419 2,409 -1,952 5,503 -4,621 7,332 647 7,542 1,829 5 Federal fund^ 3........................... -52,526 -68,870 -11,021 -26,320 -31,137 -17,405 3,822 -13,584 8,365 Off-budget entities surplus, or deficit ( —) 6 Federal Financing Bank outlays.. -6,389 -5,915 -2,575 -3,222 -5,176 -2,075 581 -299 -45 7 Other i,4........................................ -1,652 -1,355 793 -1,119 3,809 -2,086 -114 245 -262 U.Si. Budget plus off-budget, in­ cluding Federal Financing Bank 8 Surplus, or deficit ( —)................... -53,149 -73,731 -14,755 -25,158 -37,125 -14,233 4,936 -6,097 9,888 Financed by: 9 Borrowing from the public 2. . . 50,867 82,922 18,027 33,561 35,457 16,480 1,206 -2,871 518 10 Cash aqd monetary assets (de­ crease, or increase (—))___ -320 -7,796 -2,899 -7,909 2,153 -4,666 -9,422 11,268 -9,345 11 Others........................................ 2,602 -1,396 -373 -495 -485 2,420 3,280 -2,300 -1,061 Memo items: 12 Treasury operating balance (level, end of period)... ............................... 7,591 14.836 17,418 14,836 11,670 77,311 17,763 6,992 16,246 13 F.R. Banks..................................... 5,773 11,975 13,299 11,975 10,393 65,372 13,628 5,836 15,183 14 Tax and Joan accounts.................. 1,475 2,854 4,119 2,854 1,277 11,940 4,135 1,156 1,063 15 Other demand accounts 6.............. 343 7 7 1 Outlay totals reflect the reclassification of the Export-Import Bank 5 Includes: Public debt accrued interest payable to the public; deposit from off-budget status to unified budget status. funds; miscellaneous liability (including checks outstanding) and asset 2 Export-Import Bank certificates of beneficial interest (effective July accounts; seignorage; increment on gold; net gain/loss for U.S. currency 1, 1975) and loans to the Private Export Funding Corp. (PEFCO), a wholly valuation adjustment; net gain/loss for IMF valuation adjustment. owned subsidiary of the Export-Import Bank are treated as debt rather 6 Excludes the gold balance but includes deposits in certain commercial than asset sales. depositories that have been converted from a time deposit to a demand 3 Half years calculated as a residual of total surplus/deficit and trust deposit basis to permit greater flexibility in Treasury cash management. fund surplus/deficit. 4 Includes Pension Benefit Guaranty Corp., Postal Service Fund, Rural Source.—“Monthly Treasury Statement of Receipts and Outlays of Electrification and Telephone Revolving Fund, Ryral Telephone Bank, the U.S. Government,” Treasury Bulletin, and U.S. Budget, Fiscal Year and Housing for the Elderly or Handicapped Fund. 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 assQciations: 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- 1976 1977 1977 1975 1976 Sept. 1976) HI H2 HI Apr. May June Receipts 1 All sources 1........................................ 280,997 300,005 81,773 160,552 157,961 190,238 40,016 27,672 43,075 2 Individual income taxes, net.............. 122,386 131,603 38,801 65,767 75,094 78,775 18,660 9,413 17,949 3 Withheld......................................... 122,071 123,408 32,949 63,859 68,023 73,303 11,797 12,993 12,175 4 Presidential Election Campaign Fund....................................... 32 34 1 33 1 28 7 6 4 5 Non withheld................................... 34,296 35,528 6,809 27,879 8,426 32,967 14,581 2,092 6,272 6 Refunds 1........................................ 34,013 27,367 958 26,004 1,356 27,521 7,725 5,678 501 7 Corporation income taxes: 8 Gross receipts................................. 45,747 46,783 9,808 27,973 20,706 37,133 8,461 1,465 14,758 9 Refunds.......................................... 5,125 5,374 1,348 2,639 2,886 2,324 488 369 379 10 Social insurance taxes and contribu­ tions, net..................................... 86,441 92,714 25,760 51,828 47,596 58,098 10,703 14,203 7,696 11 Payroll employment taxes and contributions 2....................... 71,789 76,391 21,534 40,947 AO,All 45,241 6,670 9,912 6,709 12 Self-employment taxes and contributions 2....................... 3,417 3,518 269 3,250 286 3,688 2,328 248 335 13 Unemployment insurance.............. 6,771 8,054 2,698 5,193 4,379 6,576 1,296 3,582 228 14 Other net receipts 3....................... 4,466 4,752 1,259 2,438 2,504 2,594 409 461 424 15 Excise taxes........................................ 16,551 16,963 4,473 8,204 8,910 8,431 1,392 1,485 1,530 16 Customs.............................................. 3,676 4,074 1,212 2,147 2,361 2,518 393 All 504 17 Estate and gift................................... 4,611 5,216 1,455 2,643 2,943 4,333 376 501 437 18 Miscellaneous receipts 4................... 6,711 8,026 1,612 4,630 3,236 3,269 517 548 581 Outlays 19 AH types 1, 5....................................... 326,105 366,466 94,746 181,369 193,719 200,310 35,547 33,715 32,881 20 National defense................................ 86,585 89,996 22,518 44,052 45,002 48,721 7,976 8,555 8,404 21 International affairs 5....................... 5,862 5,067 1,997 2,668 3,028 2,522 548 284 439 22 General science, space, and technology.................................. 3,989 4,370 1,161 1,708 2,377 2,108 356 350 362 23 Natural resources, environment, and energy.................................. 9,537 11,282 3,324 6,900 7,206 6,855 1,077 1,239 1,421 24 Agriculture......................................... 1,660 2,502 584 All 2,019 2,628 737 138 256 25 Commerce and transportation.......... 16,010 17,248 4,700 5,766 9,643 5,945 1,316 1,586 1,419 26 Community and regional development............................... 4,431 5,300 1,530 2,411 3,192 3,149 579 525 670 27 Education, training, employment, and social services..................... 15,248 18,167 5,013 9,116 9,083 9,775 1,604 1,628 1,772 28 Health................................................ 27,647 33,448 8,720 17,008 19,329 18,654 3,241 3,317 3,398 29 Income security 1............................... 108,605 127,406 32,796 65,336 65,456 70,745 11,632 11,568 11,129 30 Veterans benefits and services.......... 16,597 18,432 3,962 9,450 8,542 9,382 1,684 1,625 1,225 31 Law enforcement and justice............ 2,942 3,320 859 1,784 1,839 1,783 305 285 316 32 General government.......................... 3,089 2,927 878 870 1,734 1,587 113 488 324 33 Revenue sharing and general purpose fiscal assistance............ 7,005 7,119 2,024 3,664 4,729 4,333 2,103 45 47 34 Interest 6............................................. 30,974 34,589 7,246 18,560 18,409 18,927 2,751 2,690 5,908 35 Undistributed offsetting receipts 6,7 -14,075 -14,704 -2,567 -8,340 -7,869 -6,803 -475 -609 -4,211 1 Effective June 1977, earned income credit payments in excess of an certificates of beneficial interest (effective July 1, 1975) and loans to the individual’s tax liability, formerly treated as outlays, are classified as in­ Private Export Funding Corp. (PEFCO), a wholly owned subsidiary of come tax refunds. the Export-Import Bank, are treated as debt rather than asset sales. 2 Old-age, disability and hospital insurance, and Railroad Retirement 6 Effective September 1976, “Interest” and “Undistributed Offsetting accounts. Receipts” reflect the accounting conversion for the interest on special 3 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. 7 Consists of interest received by trust funds, rents and royalties on 4 Deposits of earnings by F.R. Banks and other miscellaneous receipts. the Outer Continental Shelf, and U.S. Govt, contributions for em­ 5 Outlay totals reflect the reclassification of the Export-Import Bank ployee retirement. from off-budget status to unified budget status. Export-Import Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics □ August 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........................... 469.1 474.2 492.7 533.7 576.6 620.4 634.7 653.5 669.2 3 Held by public................................. 339.4 336.0 351.5 387.9 437.3 470.8 488.6 506.4 524.3 4 Held by agencies............................. 129.6 138.2 141.2 145.3 139.3 149.6 146.1 147.1 144.9 5 Agency securities.................................. 11.6 12.0 11.3 10.9 10.9 11.5 11.6 12.0 10.9 6 Held by public................................. 9.6 10.0 9.3 9.0 8.9 9.5 2 9.7 10.0 9.1 7 Held by agencies............................. 2.0 2.0 2.0 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........................... 468.4 473.6 490.5 532.6 576.0 619.8 634.1 652.9 668.6 10 Other debt1.......................................... 2.4 2.4 2.4 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 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 Mar. Apr. May June July 1 Total gross public debt1....................................... 469.9 492.7 576.6 653.5 669.2 671.0 672.1 674.4 673.9 By type: 467.8 491.6 575.7 652.5 668.2 668.5 671.0 673.4 671.4 3 Marketable........................................................ 270.2 282.9 363.2 421.3 435.4 434.1 r431.5 431.1 430.2 4 Bills................................................................ 107.8 119.7 157.5 164.0 164.3 162.0 157.9 155.1 154.2 5 Notes............................................................. 124.6 129.8 167.1 216.7 229.6 230.7 230.2 232.9 231.4 6 Bonds............................................................. 37.8 33.4 38.6 40.6 41.5 41.4 43.3 43.2 44.7 7 Nonmarketable2................................................ 197.6 208.7 212.5 231.2 232.8 234.4 239.5 242.2 241.1 8 Convertible bonds 3....................................... 2.3 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.2 9 Foreign issues4.............................................. 26.0 22.8 21.6 22.3 22.1 21.9 21.8 21.7 21.5 10 Savings bonds and notes.............................. 60.8 63.8 67.9 72.3 73.4 73.9 74.3 74.7 75.2 11 Govt, account series5................................... 108.0 119.1 119.4 129.7 128.2 129.0 133.0 134.8 132.4 By holder:6 12 U.S. Govt, agencies and trust funds............... 129.6 141.2 139.3 147.1 145.0 145.5 149.4 13 F.R. Banks........................................................ 78.5 80.5 87.9 97.0 96.0 99.8 91A 14 Private investors................................................ 261.7 271.0 349.4 409.5 428.3 425.7 425.3 15 Commercial banks........................................ 60.3 55.6 85.1 102.5 106.0 103.5 102.0 16 Mutual savings banks................................... 2.9 2.5 4.5 5.5 5.2 5.2 • 5.2 17 Insurance companies..................................... 6.4 6.1 9.3 12.3 12.2 12.1 12.3 18 Other corporations....................................... 10.9 11.0 20.2 25.5 26.0 26.3 25.3 19 State and local governments........................ 29.2 29.2 33.8 41.6 43.4 46.9 47.8 Individuals: 20 Savings bonds............................................ 60.3 63.4 67.3 72.0 72.8 73.2 73.7 21 Other securities.......................................... 16.9 21.5 24.0 28.8 29.1 r29.0 29.1 22 Foreign and international7........................... 55.5 58.4 66.5 78.1 84.7 85.9 86.0 23 Other miscellaneous investors8.................... 19.3 23.2 38.6 43.2 48.9 43.6 47.8 1 Includes $2.5 billion of non-interest-bearing debt (of which $611 6 Data for F.R. Banks and U.S. Govt, agencies and trust funds are million on July 31, 1977, was not subject to statutory debt limitations). actual holdings; data for other groups are Treasury estimates. 2 Includes (not shown separately): Securities issued to the Rural 7 Consists of the investments of foreign balances and international Electrification Administration and to State and local governments, de­ accounts in the United States. Beginning with 1974, the figures exclude positary bonds, retirement plan bonds, and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 3 These nonmarketable bonds, also known as Investment Series B 8 Includes savings and loan associations, nonprofit institutions, cor­ Bonds, may be exchanged (or converted) at the owner’s option for 1V4 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 May June May June All maturities 1 to 5 years 1All holders............................................................................... 363,191 421,276 431,447 431,149 112,270 141,132 143,011 144,503 2 U.S. Govt, agencies and trust funds..................................... 19,397 16,485 15,434 15,425 7,058 6,141 5,949 5,949 3 F. R. Banks............................................................................. 87,934 96,971 97,394 102,239 30,518 31,249 30,239 31,554 4 Private investors....................................................................... 255,860 307,820 318,619 313,485 74,694 103,742 106,823 107,000 5 Commercial banks.............................................................. 64,398 78,262 77,048 79,059 29,629 40,005 41,129 41,725 6 Mutual savings banks.......................................................... 3,300 4,072 4,450 4,390 1,524 2,010 2,093 2,118 7 Insurance companies........................................................... 7,565 10,284 10,158 11,372 2,359 3,885 4,088 4,274 8 Nonfinancial corporations.................................................. 9,365 14,193 13,607 12,487 1,967 2,618 3,120 2,972 9 Savings and loan associations............................................ 2,793 4,576 5,170 4,827 1,558 2,360 2,662 2,588 10 State and local governments.............................................. 9,285 12,252 16,201 14,522 1,761 2,543 4,573 3,826 11 All others............................................................................. 159,154 184,182 191,985 186,828 35,894 50,321 49,157 49,497 Total, within 1 year 5 to 10 years 12 All holders................................................................................ 199,692 211,035 213,662 211,955 26,436 43,045 45,972 45,955 13 U.S. Govt, agencies and trust funds..................................... 2,769 2,012 1,821 1,811 3,283 2,879 2,141 2,141 14 F. R. Banks............................................................................. 46,845 51,569 49,630 52,792 6,463 9,148 11,172 11,371 15 Private investors....................................................................... 150,078 157,454 162,211 157,353 16,690 31,018 32,658 32,443 16 Commercial banks.............................................................. 29,875 31,213 28,622 29,633 4,071 6,278 6,576 7,063 17 Mutual savings banks......................................................... 983 1,214 1,407 1,319 448 567 654 662 18 Insurance companies........................................................... 2,024 2,191 1,720 1,705 1,592 2,546 2,791 2,884 19 Nonfinancial corporations.................................................. 7,105 11,009 9,861 9,064 175 370 380 262 20 Savings and loan associations............................................ 914 1,984 2,297 2,030 216 155 140 139 21 State and local governments.............................................. 5,288 6,622 8,747 7,530 782 1,465 1,253 1,345 22 All others............................................................................. 103,889 103,220 109,556 106,071 9,405 19,637 20,865 20,086 Bills, within 1 year 10 to 20 years I 23 All holders................................................................................ 157,483 163,992 157,931 155,064 14,264 11,865 11,656 11,607 24 U.S. Govt, agencies and trust funds..................................... 207 449 280 270 4,233 3,102 3,102 3,102 25 F. R. Banks............................................................................. 38,018 41,279 40,054 42,388 1,507 1,363 1,374 1,413 26 Private investors....................................................................... 119,258 122,264 117,597 112,406 8,524 7,400 7,180 7,092 27 Commercial banks.............................................................. 17,481 17,303 11,410 11,669 552 339 301 314 28 554 454 445 397 232 139 134 135 29 Insurance companies........................................................... 1,513 1,463 728 732 1,154 1,114 1,076 1,577 30 Nonfinancial corporations.................................................. 5,829 9,939 8,178 7,576 61 142 159 146 31 Savings and loan associations............................................ 518 1,266 1,268 1,013 82 64 56 56 32 State and local governments.............................................. 4,566 5,556 6,916 5,886 896 718 663 634 33 All others............................................................................. 88,797 86,282 88,651 85,133 5,546 4,884 4,790 4,230 Other, within 1 year Over 20 years 34 All holders................................................................................ 42,209 47,043 55,731 56,891 10,530 14,200 17,146 17,129 35 U.S. Govt, agencies and trust funds..................................... 2,562 1,563 1,541 1,541 2,053 2,350 2,421 2,421 36 F. R. Banks............................................................................. 8,827 10,290 9,576 10,404 2,601 3,642 4,979 5,110 37 Private investors....................................................................... 30,820 35,190 44,614 44,947 5,876 8,208 9,746 9,598 38 Commercial banks.............................................................. 12,394 13,910 17,212 17,964 271 427 419 324 39 429 760 962 922 112 143 162 157 40 Insurance companies........................................................... 511 728 992 973 436 548 483 931 41 Nonfinancial corporations.................................................. 1,276 1,070 1,683 1,488 57 55 87 42 42 Savings and loan associations............................................ 396 718 1,029 1,017 22 13 15 13 43 State and local governments.............................................. 722 1,066 1,831 1,644 558 904 965 1,186 44 All others............................................................................. 15,092 16,938 20,905 20,938 4,420 6,120 7,616 6,945 Note.—Direct public issues only. Based on Treasury Survey of Owner­ banks, 466 mutual savings banks, and 728 insurance companies, each ship from Treasury Bulletin (U.S. Treasury Dept.). about 90 per cent; (2) 433 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) 496 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 June 30, 1977; (1) 5,493 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 □ August 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 Apr. May June June 22 June 29 July 6 July 13 July 20 July 27 1 U.S. Govt, securities............. 3,579 6,027 10,449 13,597 10,306 8,683 7,445 '9,026 8,238 7,541 8,798 10,026 By maturity: 2 Bills.................................... 2,550 3,889 6,676 8,829 6,495 5,021 4,083 '4,874 5,023 4,940 5,579 6,874 3 Other within 1 year.......... 250 223 210 215 183 215 171 230 277 141 220 192 4 15 years........................... 465 1,414 2,317 2,727 1,981 2,059 1,896 '2,301 1,505 1,261 1,979 2,019 5 5-10 years.......................... 256 363 1,019 1,592 1,322 952 926 '1,078 697 688 698 648 6 Over 10 years.................... 58 138 229 235 325 436 '370 '544 735 511 322 293 By type of customer: 7 U.S. Govt, securities dealers........................ 652 885 1,360 1,523 1,059 1,030 739 1,204 985 971 899 1,047 8 U.S. Govt, securities brokers....................... 965 1,750 3,407 4,795 3,975 2,529 2,025 2,638 2,477 2,320 2,696 3,355 9 Commercial banks............ 998 1,451 2,426 2,705 2,095 1,965 1,606 1,955 1,902 1,690 2,378 2,260 10 All others1......................... 964 1,941 3,257 4,575 3,177 3,159 3,075 3,230 2,874 2,561 2,825 3,365 11 Federal agency securities.... 965 1,043 1,548 '2,008 1,786 2,138 '2,028 '2,348 2,276 1,355 1,697 1,404 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 Apr. May June May 25 June 1 June 8 June 15 June 22 June 29 Positions2 1U.S. Govt, securities............. 2,580 5,884 7,592 5,911 3,900 5,757 3,584 5,611 6,561 6,537 4,840 4,922 2 Bills.................................... 1,932 4,297 6,290 5,215 3,786 5,538 3,647 4,930 6,280 6,374 5,140 4,430 3 Other within 1 year.......... -6 265 188 253 198 15 230 134 27 33 -12 5 4 1-5 years............................ 265 886 515 211 -101 82 -259 332 174 33 -201 257 5 5-10 years.......................... 302 i 300 402 101 -70 23 -111 77 -11 45 -54 91 6 Over 10 years.................... 88 136 198 131 87 99 76 139 91 52 -33 139 7 Federal agency securities.... 1,212 943 729 '687 539 1,027 481 1,632 1,660 1,513 1,023 1,621 Sources of financing3 8 All sources............................. 3,977 6,666 8,715 10,301 9,351 10,791 9,338 8,585 12,098 12,043 10,489 8,781 Commercial banks: 9 New York City................. 1,032 1,621 1,896 1,948 881 1,583 840 1,129 2,224 1,969 1,492 692 10 Outside New York City... 1,064 1,466 1,660 2,174 1,735 2,179 1,711 1,963 2,670 2,891 2,070 1,187 11 Corporations1....................... 459 842 1,479 1,891 1,806 2,769 2,103 1,905 2,619 3,484 2,888 2,272 12 All other............................... 1,423 2,738 3,681 4,288 4,929 4,261 4,683 3,589 4,586 3,699 4,038 4,631 1 All 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 1977 Agency 1973 1974 1975 1976 Dec. Jan. Feb. Mar. Apr. May 1 Federal and Federally sponsored agencies........... 71,594 89,381 97,680 r103,308 *103,489 *102,961 *103,673 105,579 105,823 2 Federal agencies.................................................... 11,554 12,719 19,046 *•22,419 22,168 r22,307 *•22,413 *•22,462 22,316 3 Defense Department1...................................... 1,439 1,312 1,220 1,113 1,095 1,086 1,077 1,068 1,059 4 Export-Import Bank2,3.................................... 2,625 2,893 7,188 8,574 8,557 8,580 8,615 8,610 8,596 415 4450 Fede5ra6l4 Housing5 7A5dminist5ra7t9ion4.......5..8.1......... 592 598 594 6 Government National Mortgage Association participation certificates5......................... 4,390 4,280 4,200 r4,120 3 3,845 33,845 *•3,845 *•3,803 3,803 7 Postal Service6.................................................. 250 721 1,750 2,998 2,998 2,998 2,998 2,998 2,856 8 Tennessee Valley Authority............................. 2,435 3,070 3,915 4,935 4,985 5,005 5,070 5,155 5,175 9 United States Railway Association6............... 3 209 104 109 212 216 230 233 10 Federally sponsored agencies................................. 60,040 76,662 78,634 80,889 81,321 80,654 81,260 83,117 83,507 11 Federal home loan banks................................. 15,362 21,890 18,900 16,811 16,805 16,587 16,626 16,678 16,851 12 Federal Home Loan Mortgage Corporation.. 1,784 1,551 1,550 1,150 1,350 957 957 957 957 13 Federal National Mortgage Association........ 23,002 28,167 29,963 30,565 30,394 30,143 30,392 30,684 30,843 14 Federal land banks........................................... 10,062 12,653 15,000 17,127 17,304 17,304 17,304 18,137 18,137 15 Federal intermediate credit banks................... 6,932 8,589 9,254 10,494 10,631 10,556 10,670 10,990 11,174 16 Banks for cooperatives..................................... 2,695 3,589 3,655 4,330 4,425 4,695 4,899 5,254 5,113 17 Student Loan Marketing Association7............ 200 220 310 410 410 410 410 415 430 18 Other.................................................................. 3 3 2 2 2 2 2 2 2 Memo items : 19 Federal Financing Bank debt6,8........................... 4,474 17,154 28,711 29,848 30,328 31,312 30,823 31,007 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank3....................................... 4,595 5,208 5,208 5,237 5,273 5,273 5,273 21 Postal Service6.................................................. 500 1,500 2,748 2,748 2,748 2,748 2,748 2,606 22 Student Loan Marketing Association7........... 220 310 410 410 410 410 415 430 23 Tennessee Valley Authority............................. 895 1,840 3,110 3,160 3,180 3,245 3,330 3,350 24 United States Railway Association6............... 3 209 104 109 212 216 230 233 Other lending:9 25 Farmers Home Administration....................... 2,500 7,000 10,750 11,450 11,450 11,750 11,750 12,250 26 Rural Electrification Administration.............. 566 1,768 1,509 1,584 1,677 1,806 1,864 27 Other.................................................................. 356 1,134 4,613 5,254 5,507 5,993 5,271 5,001 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 □ August 1977 1.47 NEW SECURITY ISSUES State and Local Government and Corporate Millions of dollars 1977 Type of issue or issuer, 1974 1975 1976 or use Jan. Feb. Mar. Apr. May June State and local government 1All issues, new and refunding 1.............................................. 24,315 30,607 35,313 3,429 3,150 4,140 3,566 4,308 5,347 By type of issue: 2 General obligation............................................................. 13,563 16,020 18,040 1,867 1,624 1,812 1,701 2,032 2,265 3 Revenue.............................................................................. 10,212 14,511 17,140 1,552 1,518 2,323 1,862 2,272 3,079 4 Housing Assistance Administration 2.............................. 461 5 U.S. Govt, loans................................................................ 79 76 133 10 8 5 3 4 3 By type of issuer: 6 State.................................................................................... 4,784 7,438 7,054 468 441 705 769 875 1,476 7 Special district and statutory authority............................ 8.638 12,441 15,304 1,786 1,335 1,818 1,388 1,836 1,873 8 Municipalities, counties, townships, school districts.... 10,817 10,660 12,845 1,166 1,367 1,612 1,407 1,593 1,994 23,508 29,495 32,108 3,084 3,019 3,209 '2,939 3,781 4,456 By use of proceeds: 10 Education........................................................................... 4,730 4,689 4,900 489 502 472 '249 497 807 11 Transportation................................................................... 1,712 2,208 2,586 104 410 180 119 508 218 12 Utilities and conservation.................................................. 5,634 7,209 9,594 1,050 935 804 703 1,235 1,202 13 Social welfare..................................................................... 3,820 4,392 6,566 483 580 600 658 438 816 14 Industrial aid...................................................................... 494 445 483 15 12 38 42 130 23 15 Other purposes................................................................... 7,118 10,552 7,979 943 580 1,115 1,168 973 1,390 Corporate 16 All issues 3.................................... 38,313 53,619 53,356 3,989 2,708 5,495 3,639 17 Bonds............................................ 32,066 42,756 42,262 3,387 1,888 4,300 3,048 By type of offering: 18 Public........................................ 25,903 32,583 26,453 2,786 '1,102 2,610 1,961 19 Private placement..................... 6,160 10,172 15,808 601 '786 1,690 1,087 By industry group: 20 Manufacturing......................... 9,867 16,980 13,243 817 568 1,049 ,128 21 Commercial and miscellaneous 1,845 2,750 4,361 743 346 454 180 22 Transportation......................... 1,550 3,439 4,357 165 47 243 129 23 Public utility............................. 8,873 9,658 8,297 634 210 756 602 24 Communication....................... 3,710 3,464 2,787 50 290 808 324 25 Real estate and financial.......... 6,218 6,469 9,222 979 426 991 684 26 Stocks........................................... 6,247 10,863 11,094 602 820 1,195 591 By type: 27 Preferred................................... 2,253 3,458 2,789 103 128 520 163 28 Common................................... 3,994 7,405 8,305 499 692 675 428 By industry group: 29 Manufacturing......................... 544 1.670 2,237 89 175 76 220 30 Commercial and miscellaneous 940 1,470 1,183 136 94 114 114 31 T ransportation......................... 22 1 24 125 32 Public utility............................. 3,964 6,235 6,101 352 225 842 172 33 Communication....................... 217 1,002 776 267 10 34 Real estate and financial.......... 562 488 771 ”25* 60 38 75 1 Par amounts of long-term issues based on date of sale. than $100,000, secondary offerings, undefined or exempted issues as 2 Only bonds sold pursuant to the 1949 Housing Act, which are secured defined in the Securities Act of 1933, employee stock plans, investment by contract requiring the Housing Assistance Administration to make companies other than closed-end, intracorporate transactions, and sales to annual contributions to the local authority, foreigners. 3 Figures, which represent gross proceeds of issues maturing in more Sources.—State and local government securities, Securities Industry than 1 year, sold for cash in the United States, are principal amount or Association; corporate securities, Securities and Exchange Commission. number of units multiplied by offering price. Excludes offerings of less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.48 CORPORATE SECURITIES Net Change in Amounts Outstanding Millions of dollars 1975 1976 Source of change, or industry 1974 1975 1976 Q2 Q3 Q4 Ql Q2 Q3 Q4 All issues1 1 New 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 5 Retirements............................................................ 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 Manufacturing................................................ 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 Communication.................................................. 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 Dec. Jan. Feb. Mar. Apr. May June INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1........................................ 3,302 4,226 661 655 423 463 558 421 601 2 Redemptions of own shares2.......................... 3,686 6,802 628 628 463 553 468 531 510 3 Net sales........................................................... -384 2,496 33 141 -40 -90 63 -110 91 4 Assets3.............................................................. 42,179 47,537 47,537 45,760 45,040 44,516 44,862 44,403 46,217 5 Cash position4.............................................. 3,748 2,747 2,747 2,958 3,260 3,474 2,776 2,859 2,901 6 38,431 44,790 44,790 42,802 41,780 41,042 42,086 41,544 43,316 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 □ August 1977 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1975 r 1976r 1977 r Account 1974r 1975 r 1976r Q3 Q4 Ql Q2 Q3 Q4 Ql 126.9 123.5 156.9 137.7 141.0 153.5 159.2 159.9 154.8 161.7 52.4 50.2 64.7 56.3 57.9 63.1 66.1 65.9 63.9 64.4 74.5 73.3 92.2 81.4 83.1 90.4 93.1 94.0 90.9 97.3 31.0 32.4 35.8 32.9 32.5 33.6 35.0 36.0 38.4 38.4 5 Undistributed profits............................................... 43.5 40.9 56.4 48.5 50.6 56.8 58.1 58.0 52.5 58.9 6 Capital consumption allowances............................. 81.6 89.5 97.2 90.6 92.2 94.1 95.9 98.2 100.4 102.0 125.1 130.4 153.6 139.1 142.8 150.9 154.0 156.2 152.9 160.9 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 1977 Account 1971 1972 1973 1974 Q4 Ql Q2 Q3 Q4 Ql 1Current assets......................................................... 529.4 574.4 643.2 712.2 731.6 753.5 775.4 791.8 816.8 845.3 2 Cash.................................................................... 53.3 57.5 61.6 62.7 68.1 68.4 70.8 71.1 77.0 75.0 3 11.0 10.2 11.0 11.7 19.4 21.7 23.3 23.9 26.4 27.3 4 Notes and accounts receivable............................ 221.1 243.4 269.6 293.2 298.2 310.9 321.8 328.5 328.2 346.6 5 U.S. Govt.1.................................................... 3.5 3.4 3.5 3.5 3.6 3.6 3.7 4.3 4.3 4.7 6 Other............................................................... 217.6 240.0 266.1 289.7 294.6 307.3 318.1 324.2 323.9 342.0 7 Inventories.......................................................... 200.4 215.2 246.7 288.0 285.8 288.8 295.6 302.1 315.4 322.1 8 43.8 48.1 54.4 56.6 60.0 63.6 63.9 66.3 69.8 74.3 9 326.0 352.2 401.0 450.6 457.5 465.9 475.9 484.1 499.9 516.6 10 220.5 234.4 265.9 292.7 288.0 286.9 293.8 291.7 302.9 309.0 11 U.S. Govt.1.................................................... 4.9 4.0 4.3 5.2 6.4 6.4 6.8 7.0 7.0 6.8 12 Other............................................................... 215.6 230.4 261.6 287.5 281.6 280.5 287.0 284.7 295.9 302.2 13 Accrued Federal income taxes......................... 13.1 15.1 18.1 23.2 20.7 23.9 22.0 24.9 26.8 28.6 14 92.4 102.6 117.0 134.8 148.8 155.0 160.1 167.5 170.2 179.0 15 Net working capital............................................... 203.6 221.3 242.3 261.5 274.1 287.6 299.5 307.7 316.9 328.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Source.—Securities and Exchange Commission estimates published offset against each other on corporations’ books. in the Commission’s Statistical Bulletin. 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 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 2 1 All industries.......................................................... 112.75 120.82 111.80 114.72 118.12 122.55 125.22 130.16 134.46 136.91 Manufacturing 2 Durable goods industries............................... 21.88 23.50 21.07 21.63 22.54 24.59 25.50 26.30 26.42 28.30 3 Nondurable goods industries............................ 26.13 29.22 25.75 27.58 28.09 30.20 28.93 30.13 32.20 33.46 Nonmanufacturing 4 Mining................................................................ 3.80 3.98 3.82 3.83 3.83 4.21 4.13 4.24 4.42 4.54 Transportation: 5 Railroad.......................................................... 2.56 2.35 2.39 2.08 2.64 2.69 2.63 2.71 2.69 2.37 6 Air................................................................... 1.87 1.31 1.65 1.18 1.44 1.12 1.41 1.62 1.52 1.94 7 Other............................................................... 3.03 3.56 3.56 3.29 4.16 3.44 3.49 2.96 2.39 2.43 Public utilities; 8 Electric............................................................ 16.99 18.90 17.92 18.56 18.82 18.22 19.49 21.19 21.09 21.58 9 Gas and other................................................ 3.14 3.47 3.00 3.36 3.03 3.45 3.96 4.16 4.56 4.14 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 .. 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 0 2 . . 6 7 1 6 2 1 0 2 . . 8 9 7 3 2 1 0 2 . .2 4 2 4 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 2 1 2 4 . . 6 1 7 9 1) jIQy •1UO Id. 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 Q4 Ql Q2 Q3 Q4 Ql Q2 ASSETS Accounts receivable, gross 1 Consumer........................................................... 31.9 35.4 36.1 36.0 35.7 36.7 37.6 38.6 39.2 40.7 2 Business.............................................................. 27.4 32.3 37.2 39.3 41.2 42.4 42.4 44.7 47.5 50.4 3 Total................................................................ 59.3 67.7 73.3 75.3 76.9 79.2 80.0 83.4 86.7 91.2 4 Less: Reserves for unearned income and losses 7.4 8.4 9.0 9.4 9.4 9.8 10.2 10.5 10.6 11.1 5 Accounts receivable, net....................................... 51.9 59.3 64.2 65.9 67.4 69.4 69.9 72.9 76.1 80.1 6 Cash and bank deposits........................................ 2.8 2.6 3.0 2.9 2.8 2.7 2.6 2.6 2.7 2.5 7 Securities................................................................ .9 .8 .4 1.0 .8 .8 1.2 1.1 1.0 1.2 8 All other................................................................. 10.0 10.6 12.0 11.8 12.5 12.4 12.7 12.6 13.0 13.7 9 Total assets............................................................. 65.6 73.2 79.6 81.6 83.5 85.3 86.4 89.2 92.8 97.5 LIABILITIES 10 Bank loans.............................................................. 5.6 7.2 9.7 8.0 7.4 6.9 5.5 6.3 6.1 5.7 11 Commercial paper................................................. 17.3 19.7 20.7 22.2 22.2 22.2 21.7 23.7 24.8 27.5 Debt: 12 Short-term, n.e.c................................................. 4.3 4.6 4.9 4.5 4.9 5.0 5.2 5.4 4.5 5.5 13 Long-term, n.e.c................................................. 22.7 24.6 26.5 27.6 28.4 30.1 31.0 32.3 34.0 35.0 14 Other................................................................... 4.8 5.6 5.5 6.8 7.8 7.8 9.5 8.1 9.5 9.4 15 Capital, surplus, and undivided profits................ 10.9 11.5 12.4 12.5 12.8 13.2 13.4 13.4 13.9 14.4 16 Total liabilities and capital.................................... 65.6 73.2 79.6 81.6 83.5 85.3 86.4 89.2 92.8 97.5 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 June 30, 1977 1977 1977 1977 i Apr. May June Apr. May June Apr. May June 1 Retail automotive (commercial vehicles)....... 10,750 307 229 340 1,005 943 1,042 698 714 702 2 Wholesale automotive..................................... 10,710 164 361 137 5,261 5,120 5,049 5,097 4,759 4,912 3 Retail paper on business, industrial, and farm equipment........................................ 12,645 76 113 238 752 731 694 676 618 456 4 Loans on commercial accounts receivable. . . 3,901 60 37 115 2,585 2,333 2,483 2,525 2,296 2,368 5 Factored commercial accounts receivable.... 2,225 124 -14 -50 1,721 1,541 1,347 1,597 1,555 1,397 6 All other business credit................................. 10,211 112 273 202 1,310 1,392 1,346 11,198 1,119 1,144 1 Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics □ August 1977 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1977 Item 1974 1975 1976 Jan. Feb. Mar. Apr. May June 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 52.5 53.1 53.8 53.4 r52.8 53.0 2 Amount of loan (thous. dollars).................. 29.8 33.3 35.9 39.0 39.3 40.9 39.6 r39.9 39.4 74.3 74.7 74.2 76.3 75.8 77.5 75.5 HI A 75.8 4 Maturity (years)............................................ 26.3 26.8 27.2 28.2 27.8 28.0 27.3 27.9 27.3 5 Fees and charges (per cent of loan amount)2. 1.30 1.54 1.44 1.38 1.31 1.34 1.30 1.34 1.25 6 Contract rate (per cent per annum)............ 8.71 8.75 8.76 8.82 8.78 8.74 8.73 8.74 8.77 Yield (per cent per annum): 7 FHLBB series 3.............................................. 8.92 9.01 8.99 9.05 8.99 8.95 8.94 8.96 8.98 8 HUD series4.................................................. 9.22 9.10 8.99 8.80 8.80 8.85 8.90 8.95 9.00 SECONDARY MARKETS Yields (per cent per annum) on— 9 FHA mortgages (HUD series)5................... 9.55 9.19 8.82 8.40 8.50 8.58 8.57 8.74 8.72 8.52 8.17 7.85 7.98 8.06 7.96 8.04 7.95 FNMA auctions:7 11 Government-underwritten loans.............. 9.31 9.26 8.99 8.48 8.55 8.68 8.67 8.74 8.75 9.43 9.37 9.11 8.82 8.86 8.91 8.97 9.08 9.12 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total................................................................... 29,578 31,824 32,904 32,848 32,792 32,830 32,938 33,580 33,918 14 FHA-insured.................................................. 19,189 19,732 18,916 18,854 18,771 18,739 18,745 18,939 18,974 15 VA-guaranteed.............................................. 8,310 9,573 9,212 9,162 9,115 9.099 9,125 9,399 9,509 2,080 2,519 4,776 4,833 4,906 4.992 5,069 5,241 5,435 Mortgage transactions (during period) 17 Purchases........................................................... 6,953 4,263 3,606 141 150 283 391 947 656 18 Sales................................................................... 4 2 86 7 Mortgage commitments:8 19 Contracted (during period)............................. 10,765 6,106 6,247 1,180 968 1,119 716 1,452 999 20 Outstanding (end of period)............................. 7,960 4,126 3,398 4,142 4,707 5,184 5,411 5,773 5,854 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9.......................................................... 5,462.6 7,042.6 4,929.8 747.4 868.4 1,138.2 456.1 1,842.8 278.9 2,371.4 3,848.3 2,787.2 549.1 484.7 612.0 269.8 1,027.4 127.8 Conventional loans: 23 Offered 9.......................................................... 1,195.4 1,401.3 2,595.7 326.8 300.0 373.9 348.1 1,164.6 371.1 656.5 765.0 1,879.2 238.3 235.8 268.1 280.7 751.7 263.0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)1 o 25 Total................................................................... 4,586 4,987 4,269 3,896 3,672 3,557 3,355 3,285 3,389 26 FHA/VA........................................................ 1,904 1,824 1,618 1,594 1,580 1,564 1,542 1,523 27 Conventional.................................................. 2,682 3,163 2,651 2,302 2,092 1,993 1,813 1,762 Mortgage transactions (during period) 28 Purchases ......................................................... 2,191 1,716 1,175 16 98 200 235 310 29 Sales................................................................... 52 1,020 1,396 51 290 285 388 329 Mortgage commitments:11 30 Contracted (during period)............................. 4,553 982 1,477 250 170 459 606 525 31 Outstanding (end of period)............................. 2,390 111 333 462 533 760 1,112 1,314 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. jo 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 r Q2 r Q3r Q4r Qlr 1All holders................................................. 603,417 682,321 742,504 801,537 840,591 865,733 889,039 910,941 2 1- to 4-family........................................ 372,793 416,883 449,937 490,761 519,836 538,847 556,443 572,517 3 Multifamily........................................... 82,572 92,877 99,851 100,601 102,906 103,882 104,283 104,342 4 Commercial.......................................... 112,294 131,308 146,428 159,298 164,056 167,539 171,259 174,763 5 Farm..................................................... 35,758 41,253 46,288 50,877 53,793 55,465 57,054 59,319 6 Major financial institutions....................... 450,000 505,400 542,552 581,193 611,538 630,103 647,627 662,272 7 Commercial banks1............................... 99,314 119,068 132,105 136,186 143,699 147,805 151,208 154,510 8 1- to 4-family.................................... 57,004 67,998 74,758 77,018 81,281 83,938 86,205 88,086 9 Multifamily........................................ 5,778 6,932 7,619 5,915 8,130 8,144 8,100 8,282 10 Commercial....................................... 31,751 38,696 43,679 46,882 47,924 49,160 50,175 51,266 11 Farm.................................................. 4,781 5,442 6,049 6,371 6,363 6,563 6,728 6,876 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................ 206,182 231,733 249,293 278,590 299,296 31,847 323,130 333,703 18 1- to 4-family.................................... 167,049 187,750 201,553 223,903 241,023 251,629 260,895 270,100 19 Multifamily........................................ 20,783 22,524 23,683 25,547 26,817 27,505 28,436 29,032 20 Commercial....................................... 18,350 21,459 24,057 29,140 31,456 32,713 33,799 34,571 21 Life insurance companies...................... 76,948 81,369 86,234 89,168 89,706 90,202 91,555 91,786 22 1- to 4-family.................................... 22,315 20,426 19,026 17,590 16,855 16,448 16,088 15,699 23 Multifamily........................................ 17,347 18,451 19,625 19,629 19,367 19,234 19,178 18,921 24 Commercial..................................... 31,608 36,496 41,256 45,196 46,479 47,336 48,864 49,526 25 Farm.................................................. 5,678 5,996 6,327 6,753 7,005 7,184 7,425 7,640 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............................. 98,856 112,160 117,833 119,315 121,795 123,356 124,858 127,610 60 1- to 4-family.................................... 45,040 51,112 53,331 56,268 59,002 60,524 62,430 64,192 61 Multifamily........................................ 21,465 23,982 24,276 22,140 21,195 20,915 20,173 19,387 62 Commercial....................................... 19,043 21,303 23,085 22,569 22,162 21,878 21,622 22,395 63 Farm.................................................. 13,308 15,763 17,141 18,338 19,436 20,039 20,633 21,636 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 □ August 1977 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1976 r 1977 r Holder, and type of credit 1974r 1975r 1976r Dec. Jan. Feb. Mar. Apr. May June Amounts outstanding (end of period) 1 Total......................................... 157,454 164,955 185,489 185,489 184,597 184,504 186,379 189,187 192,143 196,157 By holder: 2 Commercial banks.............. 75,846 IS,661 89,511 89,511 89,262 89,223 90.187 91,837 93,190 95,307 3 Finance companies.............. 36,087 35,994 38,639 38,639 38,790 38,868 39.188 39,561 40,127 40,712 4 Credit unions....................... 21,895 25,666 30,546 30,546 30,410 30,701 31,448 31,912 32,704 33,750 5 Retailers1............................. 17,933 18,002 19,052 19,052 18,378 17,860 17,585 17,734 17,911 18,032 6 Others2................................. 5,693 6,626 7,741 7,741 7,757 7,852 7,971 8,142 8,211 8,355 By type of credit: 7 Automobile........................... 52,871 55,879 66,116 66,116 65,874 66,361 67,678 69,064 70,557 72,459 8 Commercial banks.......... 30,994 31,553 37,984 37,984 37.948 38.170 38,962 39,940 40,760 41,937 9 Indirect......................... 18,687 18,353 21,176 21,176 21,091 21.170 21,563 22,059 22,442 23,054 10 Direct........................... 12,306 13,200 16,808 16,808 16,857 17,000 17,399 17,881 18,319 18,883 11 Finance companies.......... 10,623 11,155 12,489 12,489 12,367 12,450 12,593 12,757 13,023 13,219 12 Credit unions................... 10,869 12,741 15,163 15,163 15,096 15,240 15,611 15,841 16,234 16,754 13 Others............................... 386 430 480 480 464 501 513 525 540 549 Mobile homes....................... 14,618 14,423 14,572 14,572 14,466 14,396 14,409 14,471 14,477 14,551 14 Commercial banks.......... 8,972 8,649 8,734 8,734 8,644 8,590 8,571 8,597 8,617 8,646 15 Finance companies.......... 3,525 3,451 3,273 3,273 3,244 3,202 3,190 3,170 3,149 3,136 16 Home improvement.............. 8,522 9,405 10,990 10,990 10.948 10,962 11,097 11,287 11,465 11,742 17 Commercial banks.......... 4,694 4,965 5,554 5,554 5,510 5,474 5,510 5,594 5,702 5,838 Revolving credit: 18 Bank credit cards............ 8,281 9,501 11,351 11,351 11,269 11,090 10,971 11,149 11,205 11,462 19 Bank check credit........... 2,797 2,810 3,041 3,041 3,062 3,071 3,061 3,076 3,125 3,202 20 All other............................... 70,364 72,937 79,418 79,418 78,978 78,624 79,162 80,139 81,313 82,742 21 Commercial banks, total, 20,108 21,188 22,847 22,847 22,830 22,828 23,112 23,481 23,780 24,224 22 Personal loans............. 13,771 14,629 15,669 15,669 15,732 15,753 15,932 16,168 16,344 16,602 23 Finance companies, total 21,590 21,238 22,749 22,749 23,054 23,088 23,277 23,506 23,827 24,223 24 Personal loans............. 16,985 17,263 18,554 18,554 18,531 18,567 18,751 18,938 19,214 19,540 25 Credit unions................. 9,174 10,754 12,799 12,799 12,742 12,864 13,177 13,371 13,703 14,141 26 Retailers......................... 17,933 18,002 19,052 19,052 18,378 17,860 17,585 17,734 17,911 18,032 27 Others............................. 1,559 1,755 1,971 1,971 1,974 1,984 2,011 2,047 2,092 2,121 Net change (during period) 3 28 Total.................................................... 9,280 7,504 20,533 2,442 1,990 1,824 2,848 2,770 2,519 2,282 By holder: 29 3,975 2,821 10,845 1,269 627 858 1,434 1,328 1,100 1,283 30 Finance companies......................... 731 -90 2,644 409 627 349 585 392 460 182 31 2,262 3,771 4,880 511 501 517 611 634 665 519 32 1.538 69 1,050 159 200 14 113 223 210 144 33 '774 933 1,115 94 35 86 106 192 84 154 By type of credit: 34 500 3,007 10,238 1,201 732 955 1,326 1,155 1,188 898 35 Commercial banks...................... -508 559 6,431 784 428 491 790 693 561 681 36 Indirect..................................... -310 -334 2,823 409 178 217 396 355 241 328 37 Direct....................................... -198 894 3,608 376 249 274 394 338 320 353 38 Finance companies..................... -116 532 1,334 152 61 174 244 135 258 -28 39 Credit unions............................... 1,123 1,872 2,422 259 250 266 294 298 352 244 40 2 44 50 6 -7 24 -2 29 17 2 1,068 -195 150 85 -48 -48 48 56 -18 23 41 Commercial banks...................... 632 -323 85 80 -54 -38 5 11 -1 42 Finance companies..................... 166 -73 -111 -17 -18 -40 -1 -14 -24 -21 43 1,094 881 1,585 161 95 87 160 181 126 174 44 Commercial banks...................... 611 271 588 69 38 20 71 64 58 61 Revolving credit: 45 Bank credit cards........................ 1,443 1,220 1,850 69 -10 186 245 259 173 219 46 543 14 231 26 39 39 50 54 98 85 47 All other........................................... 4,631 2,577 6,479 899 1,182 605 1,019 1,065 952 883 48 Commercial banks, total............ 1,255 1,080 1,659 239 186 160 272 248 209 237 49 Personal loans......................... 898 858 1,040 132 189 126 200 182 146 156 50 Finance companies, total........... 746 -348 1,509 274 585 212 341 270 227 226 51 Personal loans......................... 486 279 1,290 128 185 178 280 219 184 185 52 948 1,580 2,045 206 204 204 264 281 258 239 53 Retailers...................................... 1,538 69 1,050 159 200 14 113 223 210 144 54 Others.......................................... 145 196 217 20 7 15 29 43 48 36 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 $38.7 billion at the 3 Net change equals extensions minus liquidations (repayments, charge- end of 1976, $35.7 billion at the end of 1975, and $33.8 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 1976r 1977 »■ Holder, and type of credit 1974 1975 1976 Dec. Jan. Feb. Mar. Apr. May June Extensions1 1 157,200 164,169 193,328 17,677 17,072 17,418 18,351 18,609 18,322 18,613 By holder: ?, Commercial banks.......................... 72,605 77,312 94,220 8,721 8,010 8,399 8,927 9,008 8,888 9,036 3 Finance companies......................... 34,061 31,173 36,028 3,247 3,477 3,301 3,528 3,445 3,359 3,443 4 19,596 24,096 28,587 2,625 2,536 2,674 2,787 2,859 2,860 2,769 5 27,034 27,049 29,188 2,620 2,643 2,580 2,615 2,721 2,728 2,806 6 Others3............................................ 3,904 4,539 5,305 465 406 464 494 576 485 559 By type of credit: 7 45,429 51,413 62,988 5,869 5,440 5,747 6,135 6,037 5,973 5,978 8 Commercial banks...................... 26,406 28,573 36,585 3,476 3,115 3,278 3,563 3,462 3,341 3,442 9 Indirect..................................... 15,576 15,766 19,882 1,889 1,668 1,730 1,923 1,850 1,751 1,817 10 Direct....................................... 10,830 12,807 16,704 1,587 1,447 1,547 1,640 1,612 1,590 1,625 11 Finance companies..................... 8,604 9,674 11,209 999 1,000 1,014 1,112 1,074 1,114 1,099 12 Credit unions............................... 10,015 12,683 14,675 1,348 1,292 1,392 1,418 1,431 1,457 1,390 13 Others.......................................... 404 483 518 46 33 64 42 70 60 47 Mobile homes.................................. 5,782 4,323 4,841 470 352 367 434 463 402 408 14 Commercial banks...................... 3,486 2,622 3,071 324 204 210 257 269 262 232 15 Finance companies..................... 1,376 764 690 52 50 53 56 58 50 48 16 Home improvement.......................... 5,211 5,556 6,736 624 558 564 638 660 627 677 17 Commercial banks...................... 2,789 2,722 3,245 306 274 262 310 308 308 319 Revolving credit: 18 Bank credit cards........................ 17,098 20,428 25,862 2,297 2,166 2,384 2,381 2,547 2,589 2,604 19 Bank check credit....................... 4,227 4,024 4,783 441 460 459 470 467 498 512 20 All other.......................................... 79,453 78,425 88,117 7,977 8,096 7,897 8,292 8,436 8,233 8,434 21 Commercial banks, total............ 18,599 18,944 20,673 1,877 1,791 1,806 1,945 1,956 1,891 1,927 22 Personal loans......................... 13,176 13,386 14,480 1\303 1,337 1,302 1,392 1,406 1,365 1,380 23 Finance companies, total............ 23,796 20,657 24,087 2,191 2,423 2,228 2,354 2,307 2,188 2,289 24 Personal loans......................... 17,162 16,944 19,579 1,722 1,737 1,755 1,863 1,833 1,744 1,850 25 Credit unions............................... 8,560 10,134 12,340 1,128 1,094 1,127 1,207 1,264 1,233 1,225 26 Retailers....................................... 27,034 27,049 29,188 2,620 2,643 2,580 2,615 2,721 2,728 2,806 27 Others........................................... 1,463 1,642 1,830 161 146 156 171 188 193 187 Liquidations1 28 Total.................................................... 147,920 156,665 172,795 15,236 15,082 15,594 15,503 15,840 15,803 16,331 By holder: 29 Commercial banks.......................... 68,630 74,491 83,376 7,452 7,383 7,540 7,493 7,680 7,789 7,753 30 Finance companies......................... 33,330 31,263 33,384 2,838 2,850 2,952 2,943 3,053 2,899 3,261 31 Credit unions................................... 17,334 20,325 23,707 2,114 2,035 2,157 2,176 2,225 2,195 2,250 32 Retailers2........................................ 25,496 26,980 28,138 2,461 2,443 2,566 2,502 2,497 2,518 2,662 33 Others3............................................ 3,130 3,606 4,191 371 371 378 \ 389 384 401 405 By type of credit: 34 Automobile....................................... 44,929 48,406 52,750 4,667 4,708 4,792 4,809 4,882 4,785 5,080 35 26,915 28,014 30,154 2,692 2,688 2,787 2,773 2,769 2,780 2,761 36 Indirect..................................... 15,886 16,101 17,059 1,480 1,490 1,513 1,527 1,495 1,509 1,489 37 Direct....................................... 11,029 11,913 13,095 1,212 1,198 1,274 1,246 1,274 1,271 1,272 38 Finance companies..................... 8,720 9,142 9,875 847 939 840 868 939 856 1,127 39 Credit unions............................... 8,892 10,811 12,253 1,089 1,042 1,126 1,124 1,133 1,106 1,146 40 Others.......................................... 402 439 468 40 40 40 44 41 43 45 Mobile homes.................................. 4,715 4,517 4,691 385 400 415 386 407 420 385 41 Commercial banks...................... 2,854 2,944 2,986 244 258 248 252 258 262 239 42 Finance companies..................... 1,210 837 867 69 68 93 57 72 74 68 43 4,117 4,675 5,151 463 463 477 478 479 501 503 44 Commercial banks...................... 2,178 2,451 2,657 236 237 241 238 244 250 252 Revolving credit: 45 Bank credit cards........................ 15,655 19,208 24,012 2,228 2,176 2,198 2,136 2,288 2,416 2,385 46 Bank check credit....................... 3,684 4,010 4,552 415 421 420 420 413 400 All 47 All other........................................... 74,821 75,849 81,638 7,078 6,914 7,292 7,273 7,371 7,282 7,551 48 Commercial banks, total............ 17,345 17,864 19,014 1,638 1,604 1,646 1,673 1,708 1,682 1,689 49 Personal loans......................... 12,278 12,528 13,439 1,171 1,148 1,176 1,192 1,224 1,219 1,224 50 Finance companies, total........... 23,050 21,005 22,578 1,917 1,838 2,016 2,013 2,037 1,961 2,063 51 Personal loans......................... 16,676 16,665 18,289 1,594 1,552 1,577 1,583 1,614 1,560 1,666 52 Credit unions............................... 7,613 8,554 10,295 921 890 922 943 983 975 986 53 Retailers....................................... 25,496 26,980 28,138 2,461 2,443 2,566 2,502 2,497 2,518 2,662 54 Others........................................... 1,318 1,446 1,613 141 139 141 143 145 146 151 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 □ August 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 1 151.0 176.9 197.6 188.8 210.4 271.6 184.2 236.5 256.6 286.3 1 7 Excluding equities.......................................... 139.6 166.4 190.0 185.0 200.3 260.8 173.8 226.9 243.0 278.2 2 By sector and instrument: S U.S. Govt........................................................ 24.7 15.2 8.3 12.0 85.2 69.0 80.8 89.6 71.6 66.6 3 4 Public debt securities................................. 26.0 14.3 7.9 12.0 85.8 69.1 82.0 89.7 71.5 66.9 4 5 -1.3 1.0 .4 * -.6 -.1 -1.2 -.1 .1 -.3 5 6 126.3 161.7 189.4 176.8 125.2 202.6 103.4 146.9 185.0 219.7 6 7 Corporate equities..................................... 11.5 10.5 7.7 3.8 10.0 10.8 10.5 9.6 13.6 8.1 7 8 Debt instruments....................................... 114.8 151.2 181.7 173.0 115.1 191.8 93.0 137.3 171.4 211.7 8 9 Private domestic nonfinancial sectors........ 121.1 157.7 183.1 161.6 112.2 181.1 94.9 129.4 169.1 192.5 9 10 11.4 10.9 7.9 4.1 9.9 10.5 10.3 9.5 13.3 7.7 10 11 109.7 146.8 175.3 157.5 102.3 170.5 84.6 119.9 155.8 184.8 11 17 Debt capital instruments..................... 86.8 102.8 106.7 101.2 101.3 123.6 97.5 105.1 113.5 133.8 12 n State and local obligations............ 17.5 15.4 16.3 19.6 17.3 17.2 16.2 18.4 18.1 16.4 13 14 Corporate bonds............................. 18.8 12.2 9.2 19.7 27.2 22.8 33.4 21.0 20.7 25.0 14 Mortgages: 15 28.6 42.6 46.4 34.6 40.8 64.4 33.5 48.1 58.1 70.7 15 16 9.7 12.7 10.4 7.0 -.1 1.1 * -.2 1.6 .6 16 17 9.8 16.4 18.9 15.1 10.9 11.7 8.7 13.1 9.8 13.5 17 18 2.4 3.6 5.5 5.1 5.2 6.4 5.6 4.8 5.1 7.6 18 19 Other debt instruments....................... 22.8 44.0 68.6 56.3 1.0 46.9 - 12.8 14.8 42.3 51.0 19 70 11.6 18.6 21.7 9.8 8.5 20.5 1.1 16.0 19.4 21.6 20 71 6.5 18.1 34.8 26.2 -14.5 7.7 -23.5 -5.5 2.2 12.7 21 77 Open market paper......................... -.4 .8 2.5 6.8 -2.2 3.5 -.2 -4.2 8.2 -1.3 22 73 5.1 6.5 9.6 13.5 9.1 15.3 9.7 8.5 12.6 17.9 23 74 121.1 157.7 183.1 161.6 112.2 181.1 94.9 129.4 169.1 192.5 24 75 17.8 15.2 14.8 18.6 14.9 16.8 13.9 15.9 16.4 17.2 25 76 42.1 64.8 73.5 45.2 49.7 90.7 39.0 60.4 88.3 93.0 26 77 4.5 5.8 9.7 7.9 9.4 12.3 9.4 9.4 11.0 13.6 27 78 10.3 13.1 12.3 6.7 1.2 4.7 -.8 3.2 4.2 4.8 28 79 46.4 58.8 72.9 83.1 37.1 56.6 33.5 40.6 49.3 63.9 29 30 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 27.5 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: 50 Sponsored credit agencies............................. 1.1 3.5 16.3 17.3 3.2 2.0 2.5 4.0 3.9 .2 50 51 Mortgage pools.............................................. 4.8 4.9 3.6 5.8 10.3 15.7 11.5 9.2 14.2 17.2 51 52 Private financial sectors................................. 11.1 20.7 36.8 19.9 1.3 12.1 .4 2.1 9.5 14.7 52 53 Commercial banks..................................... 2.4 4.8 8.1 -1.1 1.7 7.6 5.7 -2.3 9.9 5.3 53 54 Bank affiliates............................................. -.4 .7 2.2 3.5 .3 -.8 .9 -.3 -1.3 -.3 54 55 Foreign banking agencies.......................... 1.6 .8 5.1 2.9 -.3 .4 -.9 .2 -1.5 2.4 55 56 Savings and loan associations................... -.1 2.0 6.0 6.3 -2.1 -.1 -7.8 3.6 -1.0 .7 56 57 Other insurance companies.....:............ .6 .5 .5 .9 .9 1.0 .9 1.0 1.0 1.0 57 58 Finance companies.................................... 2.7 6.2 9.4 4.5 .7 6.1 -.8 2.1 6.0 6.2 58 59 REIT’s........................................................ 2.9 6.3 6.5 1.1 -1.9 -2.1 -1.6 -2.2 -1.8 -2.5 59 60 Open-end investment companies........ 1.3 -.5 -1.2 -.5 .8 .3 1.5 .1 -1.1 1.8 60 61 2.4 1.3 -.3 2.6 * -.7 .2 61 All sectors 62 Total funds raised, 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 26.1 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 21.0 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 banking..................................... 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 11.0 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 -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 1.1 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 27.4 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 savings 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, -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 □ August 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 Dec. Jan. Feb. Mar. Apr. May June? July 1 Industrial production.................................................. 129.3 117.8 129.8 133.1 132.1 133.2 135.2 136.2 137.4 138.3 139.0 Market groupings: 2 129.3 119.3 129.3 133.8 133.1 133.9 134.9 136.1 137.1 138.0 138.9 3 125.1 118.2 127.3 132.1 130.8 131.8 133.0 134.3 135.2 136.1 136.9 4 Consumer goods......................................... 128.9 124.0 136.8 142.0 140.2 141.0 142.8 143.3 144.0 144.4 145.3 5 Equipment................................................... 120.0 110.2 114.3 118.6 117.8 119.0 119.7 121.8 123.1 124.5 125.6 6 Intermediate.................................................... 135.3 123.1 136.8 139.8 141.8 141.8 141.9 142.7 144.1 145.4 146.6 7 132.4 115.5 130.5 131.9 130.7 132.4 135.5 136.3 137.8 138.8 139.1 Industry groupings: 8 129.4 116.3 129.4 132.8 131.5 132.9 135.2 136.0 137.4 138.3 138.8 Capacity utilization (per cent)1 in— 9 Manufacturing........................................................ 84.2 73.6 80.1 81.2 80.2 80.8 82.1 82.3 82.9 83.3 83.4 10 Industrial materials industries............................... 87.7 73.6 80.3 80.1 79.1 80.0 81.6 82.0 82.7 83.1 83.0 11 CVmstrnctinn contracts2............................................ 173.9 162.3 190.2 183.0 203.0 207.0 207.0 250.0 317.0 284.0 12 Nonagricultural employment, total3......................... 119.1 116.9 120.6 122.0 122.3 122.7 123.6 124.0 124.4 124.7 125.0 13 Goods-producing, total.......................................... 106.2 96.9 100.3 101.0 101.3 101.9 103.2 104.1 104.5 104.7 105.0 14 Manufacturing, total.......................................... 103.1 94.3 97.5 98.2 98.8 98.9 99.8 100.4 100.8 100.9 101.2 15 Manufacturing, production-worker.................. 102.1 91.3 95.2 95.7 96.5 96.5 97.6 98.3 98.9 98.9 99.2 16 Service-producing................................................... 126.1 127.8 131.7 133.5 133.8 134.1 134.8 134.9 135.3 135.6 136.0 '184.3 '200.0 '220.7 '231.4 '232.1 '235.7 '239.2 '241.0 '242.1 '243.3 '245.1 18 '178.9 '188.5 '208.6 '217.9 '219.3 '222.6 225.7 '227.9 '229.7 '230.8 '232.0 19 Manufacturing........................................................ '157.6 '157.3 '177.6 '185.1 '186.7 '190.4 '194.4 '196.0 '198.5 '200.4 '201.2 If) Disnnsahle nersnnal inrnme..................................... '180.8 '199.2 '217.8 '235.4 '239.4 21 Retail sales5................................................................ 171.2 186.0 206.6 221.2 216.5 222.3 221A 227.2 226.1 223.3 224.5 Prices:6 22 Consumer................................................................ 147.7 161.2 170.5 174.3 175.3 177.1 178.2 179.6 180.6 181.8 182.6 23 Wholesale................................................................ 160.1 174.1 182.9 187.1 188.0 190.0 191.9 194.3 195.2 194.4 194.8 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 Q3 Q4 Ql Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ql Q2 Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing.............................................. 131.1 131.5 133.2 137.2 162.3 163.2 164.3 165.6 80.8 80.6 81.1 82.9 2 Primary processing................................... 139.3 138.9 136.3 146.2 168.8 170.1 171.4 172.9 82.5 81.7 79.5 84.7 3 Advanced processing............................... 126.3 127.5 129.4 132.4 158.8 159.6 160.6 161.8 79.6 79.9 80.6 81.8 4 Materials...................................................... 132.6 131.8 132.9 137.6 163.1 164.3 165.5 166.6 81.3 80.2 80.3 82.6 5 Durable goods.......................................... 130.7 128.4 129.0 135.3 166.7 167.8 169.0 170.3 78.4 76.5 76.3 79.5 6 Basic metal........................................... 117.1 107.7 107.9 116.9 143.7 144.4 144.8 145.1 81.5 74.6 74.5 80.6 7 Nondurable goods................................... 146.6 147.0 149.3 154.4 172.5 174.1 175.6 177.2 85.0 84.4 85.0 87.1 8 Textile, paper, and chemical............... 151.2 151.5 153.7 160.0 180.1 182.0 183.6 185.4 84.0 83.2 83.7 86.3 9 Textile............................................... 114.4 lli.7 111.1 112.4 139.8 140.6 141.4 141.9 81.8 79.4 78.6 79.2 10 Paper................................................. 131.9 130.2 131.7 134.9 146.7 147.9 148.9 150.1 89.9 88.1 88.4 89.9 11 Chemical........................................... 175.1 177.6 181.4 191.2 211.2 213.7 216.2 218.7 82.9 83.1 83.9 87.4 12 Energy...................................................... 119.9 121.5 121.7 122.6 142.7 143.9 144.3 144.7 84.0 84.4 84.3 84.7 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 Dec. Jan. Feb. Mar. Apr. May June Household survey data 1 Noninstitutional population1.............. 150,827 153,449 156,048 157,176 157,381 157,584 157,782 157,986 158,228 158,456 2 Labor force (including Armed Forces)1. ..................................... 93,240 94,793 96,917 98,106 97,649 98,282 98,677 98,892 99,286 99,770 3 Civilian labor force............................ 91,011 92,613 94,773 95,960 95,516 96,145 96,539 96,760 97,158 97,641 Employment: 4 Nonagricultural industries2........ 82,443 81,403 84,188 85,184 85,468 85,872 86,359 86,763 87,022 87,341 5 Agriculture.................................. 3,492 3,380 3,297 3,257 3,090 3,090 3,116 3,260 3,386 3,338 Unemployment: 6 Number....................................... 5,076 7,830 7,288 7,517 6,958 7,183 7,064 6,737 6,750 6,962 7 Rate (per cent of civilian labor force).................................... 5.6 8.5 7.7 7.8 7.3 7.5 7.3 7.0 6.9 7.1 8 Not in labor force............................... 57,587 58,655 59,130 59,071 59,732 59,302 59,104 59,094 58,943 58,686 Establishment survey data 9 Nonagricultural payroll employment3 78,413 77,050 79,443 80*344 80,561 80,824 81,395 81,686 81,921 82,056 10 Manufacturing................................ 20,046 18,347 18,958 19,095 19,211 19,233 19,404 19,528 19,599 19,575 11 Mining............................................. 694 745 783 808 817 823 842 847 844 859 12 Contract construction..................... 3,957 3,515 3,593 3,605 3,561 3,645 3,759 3,842 3,867 3,898 13 Transportation and public utilities. 4,696 4,499 4,508 4,553 4,549 4,553 4,568 4,575 4,585 4,574 14 Trade........................................... 17,017 16,997 17,694 17,898 17,981 18,067 18,189 18,203 18,226 18,237 15 Finance............................................ 4,208 4,222 4,315 4,403 4.423 4,431 4,453 4,463 4,481 4,493 16 13,617 14,008 14,645 14,936 15,010 15,068 15,149 15,182 15,205 15,281 17 Government.................................... 14,177 14,773 14,947 15,046 15,009 15,004 15,031 15,046 15,114 15,139 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 □ August 1977 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1977 Grouping pro­ 1976 por­ aver­ tion age May June July Jan. Feb. Mar. Apr. May? June** Julye Index(1967 = 100) MAJOR MARKET 1 Total index.................................................... 100.00 129.8 129.6 130.1 130.7 132.1 133.2 135.2 136.2 137.4 138.3 139.0 2 Products........................................................ 60.71 129.3 128.9 129.5 129.8 133.1 133.9 134.9 136.1 137.1 138.0 138.9 3 Final products........................................... 47.82 127.3 127.3 127.6 127.6 130.8 131.8 133.0 134.3 135.2 136.1 136.9 4 Consumer goods................................... 27.68 136.8 137.4 137.8 136.8 140.2 141.0 142.8 143.3 144.0 144.4 145.3 5 Equipment............................................ 20.14 114.3 113.5 113.8 114.9 117.8 119.0 119.7 121.8 123.1 124.5 125.6 6 Intermediate products............................. 12.89 136.8 135.0 135.9 137.6 141.8 141.8 141.9 142.7 144.1 145.4 146.6 7 Materials...................................................... 39.29 130.5 130.6 131.1 132.2 130.7 132.4 135.5 136.3 137.8 138.8 139.1 Consumer goods 8 Durable consumer goods........................... 7.89 141.5 143.2 144.2 141.8 145.1 146.1 152.4 151.7 152.4 155.0 157.5 9 Automotive products........................... 2.83 154.8 154.0 156.6 155.9 164.0 161.8 178.3 174.8 172.8 178.7 183.7 10 Autos and utility vehicles................ 2.03 149.9 153.4 156.6 155.9 155.8 152.7 176.1 171.2 167.4 175.8 182.0 11 Autos............................................. 1.90 132.0 134.4 137.5 135.0 136.9 132.8 155.8 150.6 148.5 156.8 161.4 12 Auto parts and allied goods............ .80 167.2 135.6 156.9 156.0 184.9 184.5 184.1 184.0 186.6 186.6 187.8 13 Home goods......................................... 5.06 134.1 137.2 137.4 133.8 134.6 137.3 137.9 138.5 140.9 141.8 142.7 14 Appliances, A/C, and TV............... 1.40 115.8 123.5 123.8 110.3 113.4 118.5 124.1 126.3 131.0 132.9 133.5 15 Appliances and TV....................... 1.33 118.6 126.4 126.7 114.1 116.0 121.1 126.5 129.7 134.8 136.5 16 Carpeting and furniture................... 1.07 144.1 142.6 142.5 142.0 142.7 145.9 144.6 143.8 148.8 149.5 17 Misc. home goods............................ 2.59 139.9 142.5 142.6 143.0 142.8 144.0 142.7 143.0 143.2 143.4 144.0 18 Nondurable consumer goods..................... 19.79 134.9 135.1 135.1 134.8 138.3 138.9 139.0 140.0 140.7 140.3 140.4 19 Clothing................................................ 4.29 126.9 132.1 127.9 126.3 124.2 124.2 124.0 123.4 125.9 20 Consumer staples................................. 15.50 137.2 135.8 137.1 137.2 142.2 142.9 143.3 144.6 144.8 144.5 144.7 21 Consumer foods and tobacco.......... 8.33 130.8 129.8 130.8 131.4 132.9 135.4 136.5 138.0 137.9 137.8 22 Nonfood staples............................... 7.17 144.6 142.7 144.5 143.9 153.1 151.6 151.1 152.2 153.0 152.3 153.1 23 Consumer chemical products 2.63 166.6 161.4 165.4 166.2 178.5 175.7 175.9 178.1 180.5 180.4 24 Consumer paper products............ 1.92 113.3 113.8 112.3 112.8 117.0 113.3 117.4 116.6 118.4 117.4 25 Consumer energy products.......... 2.62 145.4 145.1 147.2 144.1 154.1 155.3 151.3 152.2 150.8 149.8 26 Residential utilities................... 1.45 154.7 153.2 150.4 Equipment 27 Business equipment................................... 12.63 136.1 134.6 135.0 136.9 142.0 143.1 144.5 147.0 148.8 150.8 152.6 28 Industrial equipment........................... 6.77 127.9 126.9 127.4 127.5 131.4 133.2 133.9 136.3 138.5 139.4 140.3 29 Building and mining equip.............. 1.44 177.4 174.6 174.9 176.9 187.9 192.9 195.9 200.5 205.4 206.2 207.4 30 Manufacturing equipment............... 3.85 106.4 106.4 106.5 107.2 107.8 108.5 109.0 112.0 112.6 114.2 114.9 31 Power equipment............................. 1.47 135.3 134.0 135.4 132.6 137.5 139.3 138.3 136.7 140.4 140.2 140.5 32 Commercial transit, farm equip.......... 5.86 145.5 143.7 143.8 147.7 154.5 154.6 156.6 159.2 160.9 164.0 166.7 33 Commercial equipment................... 3.26 173.2 169.5 171.4 174.1 185.2 185.2 186.1 189.7 191.1 194.5 196.6 34 Transit equipment............................ 1.93 103.8 104.2 102.9 107.6 108.4 108.7 113.0 114.5 115.4 118.9 123.0 35 Farm equipment............................... .67 130.6 133.1 128.0 135.3 138.0 137.7 138.8 140.0 144.4 146.0 36 Defense and space equipment................... 7.51 77.9 78.2 78.3 78.0 77.1 78.5 78.3 79.4 79.7 80.2 80.2 Intermediate products 37 Construction supplies.............................. 6.42 132.0 130.9 131.8 133.1 136.1 135.7 136.4 137.4 138.9 140.2 141.0 38 Business supplies...................................... 6.47 141.5 139.0 140.1 142.1 147.3 147.8 147.4 148.0 149.2 150.5 39 Commercial energy products.............. 1.14 156.5 157.1 156.1 159.1 162.3 165.7 164.2 166.0 166.6 166.9 Materials 40 Durable goods materials........................... 20.35 126.6 126.8 127.0 130.6 126.8 128.0 132.1 134.1 135.5 136.4 136.1 41 Durable consumer parts...................... 4.58 121.6 123.0 123.1 126.1 121.5 124.1 126.8 130.3 132.4 133.5 135.3 42 Equipment parts................................... 5.44 133.9 133.0 134.0 136.3 135.1 137.3 137.8 140.7 141.7 141.9 143.1 43 Durable materials n.e.c........................ 10.34 125.0 125.2 125.0 129.8 124.8 124.9 131.3 132.2 133.4 135.0 132.8 44 Basic metal materials....................... 5.57 109.8 113.2 111.3 117.5 104.7 104.8 114.1 115.0 117.5 118.3 45 Nondurable goods materials..................... 10.47 146.4 146.2 147.5 146.0 144.6 150.3 153.1 153.2 154.8 155.1 155.9 46 Textile, paper, and chem. mat............ 7.62 151.2 150.9 151.8 150.5 148.8 154.2 158.2 158.9 160.3 160.9 161.8 47 Textile materials............................... 1.85 114.4 116.4 116.1 114.7 110.6 110.4 112.4 111.8 112.8 112.5 48 Paper materials................................. 1.62 131.1 131.2 134.2 132.1 127.6 133.2 134.3 132.6 136.9 135.1 49 Chemical materials........................... 4.15 175.5 173.9 174.7 173.8 174.2 181.9 188.0 190.2 190.8 192.6 50 Containers, nondurable....................... 1.70 142.6 140.7 146.6 142.8 139.5 150.7 148.9 146.9 151.7 152.0 51 Nondurable materials n.e.c.................. 1.14 120.0 123.2 119.6 120.4 122.6 124.3 126.1 124.6 123.0 121.0 52 Energy materials....................................... 8.48 120.3 120.6 120.6 119.5 122.6 120.8 121.7 120.8 122.7 124.3 53 Primary energy..................................... 4.65 107.0 106.2 107.5 106.9 102.9 103.1 107.0 106.0 107.0 110.6 54 Converted fuel materials..................... 3.82 136.4 138.1 136.7 134.6 146.5 142.3 139.6 138.7 141.8 141.0 Supplementary groups 55 Home goods and clothing....................... 9.35 130.8 134.9 133.0 130.3 129.8 131.3 131.5 131.6 134.1 134.0 134.7 56 Energy, total............................................ 12.23 129.0 129.3 129.7 128.4 133.0 132.4 132.0 131.7 132.8 133.6 135.4 57 Products................................................ 3.76 148.8 148.8 149.9 148.7 156.5 158.4 155.2 156.4 155.7 154.9 58 Materials.............................................. 8.48 120.3 120.6 120.6 119.5 122.6 120.8 121.7 120.8 122.7 124.3 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 May June July Jan. Feb. Mar. Apr. May June** July*5 Index (1967 = 100) MAJOR INDUSTRY 1 12.05 131.9 n? o 131.9 130.6 136.1 136.4 136.2 135.2 137.3 139.1 139.1 ? 6.36 114.1 in o 114.4 112.5 113.2 116.5 120.2 119.2 120.0 122.3 119.3 3 5.69 151.7 153 0 151.2 150.8 161.5 158.8 154.2 153.1 156.4 157.7 161.3 4 3.88 169 8 167.2 167.2 87.95 129.4 179 6 130.2 131.0 131.5 132.9 135.2 136.0 137.4 138.3 138.8 6 35.97 141.0 140 9 141.3 141.1 143.7 145.7 147.0 147.8 149.1 149.3 149.6 7 Durable...................................... 51.98 121.4 171 7 122.3 124.2 123.0 124.0 126.8 127.9 129.3 130.6 131.3 Mining 8 Metal mining............................. 10 .51 122.8 118 3 118.3 121.6 135.6 132.3 133.8 127.7 124.3 119.0 9 11,12 .69 116.9 119 2 122.7 104.8 95.3 100.8 124.1 118.4 122.4 133.6 119.4 10 13 4.40 112.0 110.8 112.3 112.0 112.0 115.8 117.0 117.5 118.6 120.8 120.6 11 Stone and earth minerals.......... 14 .75 118.3 116 7 116.5 116.5 121.6 124.9 126.1 124.0 123.0 122.7 Nondurable manufactures 12 Foods......................................... 20 8.75 132.0 131.2 130.5 131.8 135.5 137.1 138.5 139.9 139.8 139.5 13 Tobacco products..................... 21 .67 117.2 114.5 115.4 114.5 114.8 117.0 115.3 112.1 105.2 14 Textile mill products................. 22 2.68 135.9 138.0 138.1 136.8 131.8 133.0 133.1 135.4 136.0 136.3 15 Apparel products....................... 23 3.31 126.1 130.3 126.8 125.6 123.6 125.2 123.5 123.8 125.2 16 Paper and products................... 26 3.21 133.1 134.0 139.1 132.0 130.6 136.5 135.5 136.5 140.0 139.4 139.8 17 Printing and publishing............ 27 4.72 120.7 120.5 119.7 122.0 124.3 122.4 124.3 123.4 124.4 123.9 124.6 18 Chemicals and products............ 28 7.74 169.4 166.6 170.0 167.6 172.0 175.1 179.0 180.6 182.0 182.5 19 Petroleum products................... 29 1.79 132.7 132.7 135.1 134.1 141.0 145.4 145.1 145.1 144.1 142.5 Milo' 20 Rubber & plastic products....... 30 2.24 199.8 185.6 189.1 191.2 218.7 220.4 225.6 226.0 232.4 235.1 21 Leather and products............... 31 .86 82.0 91.4 84.0 81.1 74.8 75.0 73.8 74.7 76.1 75.0 Durable manufactures 22 Ordnance, pvt. & govt.............. 19,91 3.64 71.7 71.4 73.1 74.0 70.8 72.4 72.3 73.8 73.8 73.6 74.5 23 Lumber and products................ 24 1.64 125.1 123.0 120.3 124.6 132.7 132.2 132.1 131.6 133.0 133.1 24 Furniture and fixtures............... 25 1.37 132.8 131.0 130.1 131.6 135.1 137.1 135.1 135.4 137.5 139.4 25 Clay, glass, stone prod.............. 32 2.74 135.8 133.9 136.1 137.2 137.3 139.0 143.7 144.5 145.5 147.2 26 Primary metals........................... 33 6.57 108.0 113.2 111.5 116.9 100.0 100.4 108.3 112.3 116.8 115.6 112.2 27 Iron and steel......................... 33,12 4.21 104.4 110.7 110.0 115.3 89.8 91.3 97.9 104.0 111.0 109.3 28 Fabricated metal prod.............. 34 5.93 123.3 121.4 124.0 124.6 125.7 126.0 127.5 127.6 128.0 130.2 130.5 29 Nonelectrical machinery........... 35 9.15 134.7 134.0 133.5 135.0 139.5 139.4 140.4 142.5 143.2 144.8 146.4 30 Electrical machinery................. 36 8.05 131.7 131.8 132.0 131.0 134.0 137.6 137.6 139.6 141.8 143.2 143.9 31 Transportation equip................ 37 9.27 110.6 112.9 112.6 113.3 113.5 113.4 120.5 119.8 120.1 123.3 124.2 32 Motor vehicles & pts............. 371 4.50 140.7 144.3 146.5 148.5 145.5 145.4 161.2 158.1 157.7 162.9 167.0 33 Aerospace & misc. tr. eq. ... 37,29 4.77 82.2 83.3 80.7 80.3 83.4 83.3 82.3 83.8 84.8 86.0 84.1 34 Instruments................................ 38 2.11 148.2 149.0 149.5 151.3 153.7 157.0 156.9 157.8 157.3 158.0 160.0 35 Miscellaneous mfrs................... 39 1.51 143.5 145.5 145.9 148.5 147.8 147.9 147.4 145.8 147.9 148.1 148.8 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET Products. ........................... . 1507.4 550.6 551.5 552.4 552.6 564.2 570.3 578.1 579.4 585.7 588.8 593.8 37 Final products............................. 1390.9 426.2 427.5 428.3 427.8 436.5 441.2 449.0 449.0 453.9 456.4 460.0 38 Consumer goods.................... 1277.5 302.9 303.7 305.5 302.2 309.3 312.6 317.6 316.8 319.5 320.3 321.7 39 Equipment............................. 1113.4 123.5 123.7 123.1 125.8 127.2 128.6 131.7 132.3 134.5 135.9 138.1 40 Intermediate products.................j 1116.6 124.3 123.7 124.1 124.7 127.8 128.6 129.3 130.6 131.8 132.7 133.8 1 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 □ August 1977 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates. Exceptions noted. 1976 1977 Item 1974r 1975 r 1976r Dec. Jan.r Feb.' Mar.r Apr.' Mayr June Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized......................... 1,074 927 1,281 1,514 1,333 1,526 1,687 1,605 1,615 1,602 2 1-family.................................... 644 669 895 1,053 930 1,060 1,188 1,051 1,077 1,089 3 2-or-more-family....................... 431 278 386 461 403 466 499 554 538 513 4 Started........................................... 1,338 1,160 1,540 1,889 1,384 1,802 2,089 1,880 1,954 1,833 5 1-family...................................... 888 892 1,163 1,324 1,006 1,424 1,503 1,413 1,467 1,383 6 2-or-more-family....................... 450 268 377 565 378 378 586 7 Under construction, end of period 1 1,189 1,003 1,157 1,192 1,198 1,215 1,237 1,269 1,308 8 1-family..................................... 516 531 656 686 692 710 732 749 774 9 2-or-more-family....................... 673 472 501 507 506 505 505 520 534 10 Completed...................................... 1,692 1,297 1,362 1,444 ,416 1,637 1,707 1,532 1,485 11 1-family..................................... 931 866 1,026 1,078 ,103 1,242 1,236 1,219 1,137 12 2-or-more-family....................... 760 430 336 366 313 395 471 313 348 13 Mobile homes shipped................. 213 250 248 258 275 252 252 256 Merchant builder activity in 1-family units: 14 Number sold................................. 501 544 639 808 827 893 854 746 720 15 Number for sale, end of period1.. 407 383 433 431 431 434 435 442 441 Price (thous. of dollars)2 Median: 16 Units sold............................... 35.9 39.3 44.2 45.9 45.5 47.4 45.4 48.9 49.4 17 Units for sale......................... 36.2 38.9 41.6 41,6 41.9 42.1 42.9 43.3 43.9 Average: 18 Units sold............................... 38.9 42.5 48.1 50,6 50.7 52.6 51.6 54.7 54.6 54.7 EXISTING UNITS (1-family) 19 Number sold................................. 2,272 2,452 3,002 3,470 3,190 3,080 3,410 3,300 3,450 3,420 Price of units sold (thous. of dollars):2 20 Median....................................... 32.0 35.3 38.1 39.0 39.6 40.7 41.0 42.0 42.2 43.4 21 Average..................................... 35.8 39.0 42.2 43.3 44.0 45.1 45.5 46.5 46.8 47.7 Value of new construction 3 (millions of dollars) CONSTRUCTION 22 Total put in place...................... 138,499 134,293 147,481 155,425 148,393 157,117 163,346 166,147 170,381 170,979 23 Private....................................... 100,165 93,624 109,499 121,153 116,410 122,634 127,942 129,963 131,961 132,218 24 Residential............................. 50,377 46,472 60,519 71,094 66,785 72,378 76,209 77,976 80,495 80,087 25 Nonresidential, total............. 49,788 47,152 48,980 50,059 49,625 50,256 51,733 51,987 51,466 52,131 Buildings: 26 Industrial........................ 7,902 8,017 7,182 6,559 6,157 6,262 7,162 7,279 7,184 7,065 27 Commercial.................... 15,945 12,804 12,757 12,796 12,537 12,542 13,677 13,851 13,760 14,789 28 Other............................... 5,797 5,585 6,155 6,507 6,068 6,061 5,850- 6,271 6,077 6,426 29 Public utilities and other.. 20,144 20,746 22,886 24,197 24,863 25,391 25,044 24,586 24,445 23,851 30 Public......................................... 38,333 40,669 37,982 34,273 31,983 34,483 35,403 36,184 38,420 38,761 31 Military.................................. 1,188 1,392 1,508 1,474 1,498 1,552 1,452 1,494 1,640 1,564 32 Highway................................. 12,066 10,861 9,756 8,162 5,975 7,244 8,140 8,984 33 Conservation and development... 2,740 3,256 3,722 3,651 3,446 4,037 3,776 4,092 34 Other4.................................... 22,339 25,160 22,996 20,986 21,064 21,650 22,035 21,614 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 4 Beginning Jan. 1977 Highway imputations are included in Other. 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 1977 June 1976 1977 1977 June June (1967 Sept. Dec. Mar. June Feb. Mar. Apr. May June = 100)1 Consumer prices 1 AH items........................................................ 5.9 6.9 5.3 4.2 10.0 8.1 1.0 .6 .8 .6 .6 181.8 2 Commodities................................................. 4.6 6.2 3.9 3.4 10.4 7.4 1.2 .5 .8 .5 .5 175.4 3 Food.......................................................... 3.7 7.0 1.6 14.6 12.7 2.0 .6 1.5 .7 .8 193.6 4 Commodities less food............................ 5.1 5.7 5.5 5.7 7.4 4.2 .7 .4 .4 .4 .2 165.4 5 Durable................................................. 6.1 5.9 5.0 6.0 10.5 2.5 .9 .6 .5 .2 -.1 163.9 6 Nondurable.......................................... 4.4 5.5 6.0 5.4 5.5 5.2 .6 .3 .3 .5 .4 166.6 7 Services......................................................... 8.3 7.9 7.5 5.1 9.8 9.4 .6 .8 .8 .7 .S 193.7 8 Rent.......................................................... 5.5 5.9 5.4 5.3 6.3 6.3 .3 .5 .1 .4 .5 152.9 9 Services less rent...................................... 8.7 8.2 7.7 5.4 10.4 9.7 .7 .8 .8 .7 .8 201.1 Other groupings: 10 All items less food1................................. 6.6 6.8 7.4 5.3 6.9 7.8 .6 .6 .7 .6 .6 178.4 11 All items less shelter i.............................. 6.1 6.9 5.6 4.3 9.4 8.4 1.1 .6 .8 .5 .7 179.7 12 Homeo wnership i..................................... 5.1 6.9 8.0 1.2 9.1 9.6 .7 .6 .9 .6 .8 203.9 Wholesale prices 13 All commodities........................................... 5.5 6.1 3.5 7.1 10.2 3.6 .9 1.1 1.1 .4 -.7 194.4 14 Farm products, and processed foods and feeds....................................................... 2.8 2.2 - 12.0 6.6 19.1 -2.5 2.0 2.1 2.9 .3 -3.6 191.5 15 Farm products......................................... 5.5 -1.9 -11.9 5.8 26.0 -21.6 2.2 2.5 3.4 -2.3 -6.8 192.7 16 Processed foods and feeds....................... 1.2 4.6 -11.8 6.5 15.6 10.8 1.8 1.9 2.5 1.8 -1.7 190.1 17 Industrial commodities................................. 6.3 7.2 8.0 7.6 7.9 5.3 .6 .8 .6 .4 .3 194.6 Materials, supplies, and components of which: 18 Crude materials2.................................. 9.9 12.5 10.6 21.6 21.9 -2.0 4.0 2.3 .3 .8 -1.6 219.6 19 Intermediate materials 3....................... 6.2 7.0 8.3 7.1 8.0 4.7 .6 .9 .6 .3 .2 202.1 Finished goods, excluding foods: 20 Consumer.............................................. 5.7 7.0 7.7 5.2 8.5 6.5 .3 .8 .7 .5 .4 171.9 21 Durable............................................. 4.6 5.4 5.1 3.3 7.0 6.0 .5 .4 .7 .4 .3 151.3 22 Nondurable....................................... 6.4 8.0 9.1 6.5 9.5 7.0 .2 1.0 .7 .5 .5 185.8 23 Producer................................................ 6.4 6.4 4.7 9.5 5.3 6.3 .5 .4 .6 .6 .4 183.1 Memo: 24 Consumer foods........................................... 1.0 4.7 -13.1 8.4 12.7 13.8 2.0 1.1 2.5 2.1 -1.3 190.7 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 □ August 1977 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1976 1977 Account 1974 1975 1976 Ql Q2 Q3 Q4 Ql Q2p Gross national product 1 1,412.9 1,528.8 1,706.5 1,651.2 1,691.9 1,727.3 1,755.4 1,810.8 1,869.0 By source: 2 Personal consumption expenditures................... 889.6 980.4 1,094.0 1,056.0 1,078.5 1,102.2 1,139.0 1,172.4 1,194.0 3 Durable goods.............................................. 122.0 132.9 158.9 153.3 156.7 159.3 166.3 177.0 179.1 4 Nondurable goods........................................ 376.3 409.3 442.7 430.4 437.1 444.7 458.8 466.6 475.3 5 Services.......................................................... 391.3 438.2 492.3 472.4 484.6 498.2 513.9 528.8 539.6 6 Gross private domestic investment.................... 214.6 189.1 243.3 231.3 244.4 254.3 243.4 271.8 293.0 7 Fixed investment........................................... 205.7 200.6 230.0 216.8 226.1 232.8 244.3 258.0 273.3 8 Nonresidential............................................ 150.6 149.1 161.9 155.4 159.8 164.9 167.6 177.0 183.3 9 Structures............................................... 54.5 52.9 55.8 54.7 55.8 56.0 57.0 57.9 60.2 10 Producers’ durable equipment.............. 96.2 96.3 106.1 100.8 104.0 109.0 110.6 119.2 123.1 11 Residential structures............................... 55.1 51.5 68.0 61.4 66.3 67.8 76.7 81.0 90.0 12 Nonfarm................................................ 52.7 49.5 65.7 58.9 64.1 65.7 74.3 78.5 87.6 13 Change in business inventories.................... 8.9 -11.5 13.3 14.5 18.3 21.5 -.9 13.8 19.7 14 Nonfarm.................................................... 10.8 -15.1 14.9 15.9 20.4 22.0 1.4 14.1 20.4 15 Net exports of goods and services..................... 6.0 2.0 7.8 10.2 10.2 7.9 3.0 - 8.2 - 8.1 16 Exports.......................................................... 137.9 147.3 162.9 153.9 160.6 168.4 168.5 170.4 175.4 17 Imports.......................................................... 131.9 126.9 155.1 143.7 150.4 160.6 165.6 178.6 183.5 18 Govt, purchases of goods and services.............. 302.7 338.9 361.4 353.6 358.9 363.0 370.0 374.9 390.1 19 Federal........................................................... 111.1 123.3 130.1 127.6 128.5 130.2 134.2 136.3 143.3 20 State and local.............................................. 191.5 215.6 231.2 225.9 230.4 232.7 235.8 238.5 246.7 By major type of product: 21 Final sales, total................................................ 1,404.0 1,540.3 1,693.1 1,636.7 1,673.7 1,705.8 1,756.3 1,797.0 1,849.3 22 Goods............................................................. 638.6 686.2 764.2 744.6 761.7 746.0 774.7 805.9 831.3 23 Durable goods........................................... 247.8 258.2 303.4 285.6 301.9 313.4 312.6 334.4 345.0 24 Nondurable................................................ 390.8 428.0 460.9 459.0 459.7 464.1 460.6 471.5 486.3 25 Services.......................................................... 626.8 699.2 782.0 751.6 770.8 791.8 813.8 833.7 851.5 26 Structures..................................................... 147.4 143.5 160.2 155.0 159.4 159.6 166.9 171.2 186.2 27 Change in business inventories........................ 8.9 -11.5 13.3 14.5 18.3 21.5 -.9 13.8 19.7 28 Durable goods............................................... 7.1 -9.2 4.1 -2.0 7.0 10.7 .6 7.8 9.3 29 Nondurable goods......................................... 1.8 -2.2 9.3 16.6 11.2 12.4 -3.1 6.0 10.5 30 1,217.8 1,202.1 1,274.7 1,256.0 1,271.5 1,283.7 1,287.4 1,311.0 1,331.6 National income 31 Total................................................................... 1,136.0 1,217.0 1,364.1 1,321.0 1,353.9 1,379.6 1,402.1 1,450.2 32 Compensation of employees........................... 875.8 930.3 1,036.3 999.6 1,024.9 1,046.5 1,074.2 1,109.9 1,144.8 33 Wages and salaries........................................ 764.1 805.7 891.8 861.5 882.4 900.2 923.2 951.3 981.0 34 Government and Government enterprises 160.0 175.4 187.2 182.7 185.4 188.2 192.5 194.8 197.2 35 Other.......................................................... 604.1 630.3 704.6 678.8 697.0 712.0 730.7 756.4 783.7 36 Supplement to wages and salaries................. 111.7 124.6 144.5 138.1 142.5 146.3 150.9 158.6 163.8 37 Employer contributions for social insurance............................................ 56.1 59.8 68.6 66.4 68.0 69.1 70.9 75.4 77.1 38 Other labor income................................... 55.6 64.9 75.9 71.7 74.5 77.3 80.0 83.2 86.7 39 Proprietors’ income1.......................................... 86.4 86.0 88.0 86.9 90.4 86.2 88.7 95.1 98.7 40 Business and professional1........................... 60.9 62.8 69.4 66.9 68.8 70.0 72.0 74.3 77.4 41 Farm1............................................................ 25.4 23.2 18.6 20.0 21.6 16.2 16.6 20.7 21.2 42 Rental income of persons2............................... 21.4 22.3 23.3 23.0 22.9 23.3 24.1 24.5 25.3 43 Corporate profits1............................................ 83.6 99.3 128.1 126.5 129.2 133.5 123.1 125.4 44 Profits before tax3........................................ 126.9 123.5 156.9 153.5 159.2 159.9 154.8 161.7 45 Inventory valuation adjustment................... -40.4 -12.0 -14.1 -12.4 -15.5 -11.7 -16.9 -20.6 -17.8 46 Capital consumption adjustment................. -2.9 -12.2 -14.7 -14.6 -14.6 -14.7 -14.8 -15.6 -15.9 47 Net interest........................................................ 69.0 79.1 88.4 85.0 86.5 90.1 92.0 95.3 98.7 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. 1976 1977 1974 1975 1976 Account Ql Q2 Q3 Q4 Ql Q2p Personal income and saving 1 Total personal income........................................... 1,154.9 1,253.4 1,382.7 1,338.1 1,366.7 1,393.9 1,432.2 1,476.8 1,520.1 2 Wage and salary disbursements............................. 764.6 805.7 891.8 861.5 882.4 900.2 923.2 951.3 981.0 3 Commodity-producing industries.................... 274.6 275.0 308.4 298.6 306.7 310.8 317.7 328.9 345.1 4 Manufacturing........................................... 211.4 211.0 238.2 230.6 236.7 240.2 245.1 255.4 265.6 5 Distributive industries....................................... 184.3 195.4 217.1 208.2 213.7 220.2 226.4 234.5 240.7 6 Service industries.............................................. 145.1 159.9 179.0 172.0 176.6 180.9 186.7 193.0 198.0 7 Government and government enterprises....... 160.5 175.4 187.2 182.7 185.4 188.2 192.5 194.8 197.2 8 Other labor income.............................................. 55.6 64.9 75.9 71.7 74.5 77.3 80.0 83.2 86.7 9 Proprietors' income1.............................................. 86.2 86.0 88.0 86.9 90.4 86.2 88.7 95.1 98.7 10 Business and professional i............................... 60.9 62.8 69.4 66.9 68.8 70.0 72.0 74.3 11A 11 Farm1................................................................ 25.4 23.2 18.6 20.0 21.6 16.2 16.6 20.7 21.2 12 Rental income of persons2................................... 21.4 22.3 23.3 23.0 22.9 23.3 24.1 24.5 25.3 13 Dividends.............................................................. 31.0 32.4 35.8 33.6 35.0 36.0 38.4 38.5 40.3 14 Personal interest income....................................... 103.0 115.6 130.3 125.0 127.5 132.2 136.4 140.3 145.3 15 Transfer payments................................................ 140.8 176.8 192.8 190.3 188.7 194.3 198.0 203.5 203.9 16 Old-age survivors, disability, and health insurance benefits...................................... 70.1 81.4 92.9 88.1 89.3 95.8 98.4 99.9 101.9 17 Less: Personal contributions for social insurance.................................................... 47.7 50.4 55.2 53.9 54.8 55.6 56.6 59.6 60.8 18 Equals: Personal income................................... 1,154.9 1,253.4 1,382.7 1,338.1 1,366.7 1,393.9 1,432.2 1,476.8 1,520.1 19 Less: Personal tax and nontax payments.... 170.3 169.0 196.9 184.8 192.6 200.6 209.5 224.4 224.9 20 Equals : Disposable personal income................ 984.6 1,084.4 1,185.8 1,153.3 1,174.1 1,193.3 1,222.6 1,252.4 1,295.2 21 Less: Personal outlays..................................... 913.0 1,004.2 1,119.9 1,080.9 1,103.8 1,128.5 1,166.3 1,201.0 1,223.6 22 Equals: Personal saving..................................... 71.7 80.2 65.9 72.4 70.3 64.8 56.3 51.4 71.6 Memo items : Per capita (1972 dollars): 23 Gross national product..................................... 5,746 5,629 5,924 5,853 5,916 5,961 5,966 6,064 6,148 24 Personal consumption expenditures................ 3,589 3,629 3,817 3,761 3,794 3,820 3,892 3,934 3,946 25 Disposable personal income............................. 3,973 4,014 4,137 4,107 4,130 4,135 4,177 4,202 4,280 26 Saving rate (per cent)........................................... 7.3 7.4 5.6 6.3 6.0 5.4 4.6 4.1 5.5 Gross saving 27 Gross private saving.............................................. 209.5 259.4 272.5 276.0 275.4 277.2 261.6 262.9 28 Personal saving.................................................. 71.7 80.2 65.9 72.4 70.3 64.8 56.3 51.4 71.6 29 Undistributed corporate profits1..................... .2 16.7 21.6 29.8 28.0 31.6 20.8 22.5 30 Corporate inventory valuation adjustment.... -40.4 -12.0 -14.1 -12.4 -15.5 -11.7 -16.9 -20.6 -17.8 Capital consumption allowances: 31 Corporate...................................................... 84.6 101.7 111.8 108.7 110.4 112.9 115.2 117.6 120.0 32 Noncorporate................................................ 53.1 60.8 67.2 65.1 66.6 68.0 69.2 71.4 73.1 33 Wage accruals less disbursements................... 34 Government surplus, or deficit (—), national income and product accounts......................... -3.2 -64.3 -35.6 -47.1 -33.3 -32.4 -29.4 -11.5 35 Federal.............................................................. -10.7 -70.2 -54.0 -60.3 -46.2 -53.5 -55.9 -38.8 36 State and local.................................................. 7.6 5.9 18.4 13.3 12.9 21.1 26.5 27.3 37 Capital grants received by the United States, net.................................................................. 38 Investment............................................................. 210.1 201.0 242.5 233.1 246.5 252.8 237.5 254.7 275.6 39 Gross private domestic..................................... 214.6 189.1 243.3 231.3 244.4 254.1 243.3 271.8 293.0 40 Net foreign........................................................ -4.5 11.8 -.9 1.8 2.2 -1.5 -5.9 -17.1 -17.4 41 Statistical discrepancy.......................................... 5.8 5.9 5.5 4.2 4.5 8.0 5.3 3.3 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 □ August 1977 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1976 1977 Item credits or debits 1974 1975 1976 Ql Q2 Q3 Q4 Ql 1 Merchandise exports................. 98,306 107,088 114,700 26,998 28,379 29,603 29,720 29,476 2 Merchandise imports................ 103,673 98,043 123,917 28,324 29,914 32,387 33,292 36,456 3 Merchandise trade balance2. -5,367 9,045 -9,217 -1,326 -1,535 -2,784 -3,572 -6,980 4 Military transactions, net......... -2,083 -876 366 -65 -39 235 235 82 5 Investment income, net............. 8,744 5,954 9,808 2,437 2,280 2,667 2,424 3,170 6 Other service transactions, net.. 865 2,042 2,743 523 839 781 598 556 7 Balance on goods and services3 . 2,160 16,164 3,699 1,569 1,545 889 -315 -3,172 8 Remittances, pensions, and other transfers. -1,714 -1,719 -1,878 -485 -459 -461 -473 -518 9 U.S. Govt, grants (excluding military)....... -5,475 -2,893 -3,146 -544 -556 -1,475 -572 -627 10 Balance on current account. -5,028 11,552 -1,324 540 530 -1,037 -1,360 -4,317 11 Not seasonally adjusted.. 1,475 661 -3,785 325 -3,622 12 Change in U.S. Govt, assets, other than official reserve assets, net (increase, —).................................................. 365 -3,463 -4,213 -723 -944 -1,405 -1,142 -895 13 Change in U.S. official reserve assets (increase, —). -1,434 -607 -2,530 -773 -1,578 -407 228 -388 14 Gold........................................................................ -58 15 SDR’s..................................................................... -172 -66 -78 -45 14 -18 -29 16 Reserve position in IMF....................................... -1,265 -466 -2,212 -237 -798 -716 -461 -389 17 Foreign currencies.................................................. 3 -75 -240 -491 -794 327 718 59 18 Change in U.S. private assets abroad (increase, — ). -25,960 -27,478 -36,216 -9,254 -7,257 -6,597 -13,108 1,734 19 Bank-reported claims. -19,516 -13,532 -20,904 -3,630 -4,754 -3,372 -9,148 2,374 20 Long-term............. -1,183 -2,357 -2,124 -289 -377 -978 -480 -541 21 Short-term............ -18,333 -11,175 -18,780 -3,341 -4,377 -2,394 -8,668 3,815 22 Nonbank-reported claims........................ -3,221 -1,447 -1,986 -738 -1,004 723 -967 -359 23 Long-term............................................ -474 -432 10 -191 145 66 -10 38 24 Short-term........................................... -2,747 -1,015 -1,996 -547 -1,149 657 -957 -397 25 U.S. purchase of foreign securities, net. -1,854 -6,236 -8,730 -2,460 -1,357 -2,743 -2,171 -649 26 U.S. direct investments abroad, net.... -1,368 -6,264 -4,596 - 2,All -142 -1,205 -822 -532 27 Change in foreign official assets in the United States (in­ crease, +)......................................................................... 10,981 6,960 17,945 3,847 4,051 3,070 6,977 5,852 28 U.S. Treasury securities...................................................... 3,282 4,408 9,333 1,998 2,166 1,260 3,909 4,980 29 Other U.S. Govt, obligations............................................. 902 905 566 68 316 66 116 99 30 Other U.S. Govt, liabilities4.............................................. 724 1,701 4,938 1,524 743 1,819 852 1,005 31 Other U.S. liabilities reported by U.S. banks................... 5,818 -2,158 893 -412 135 -599 1,769 -405 32 Other foreign official assets5.............................................. 254 2,104 2,215 669 691 524 331 173 33 Change in foreign private assets in the United States (in crease,-]-)........................................................................ 22,631 7,376 16,575 3,009 3,333 5,131 5,102 -2,785 34 U.S. bank-reported liabilities.............................................. 16,017 628 10,982 672 3,528 1,774 5,008 -5,249 35 Long-term......................................................................... 9 -280 175 -105 -16 75 221 96 36 Short-term........................................................................ 16,008 908 10,807 111 3,544 1,699 4,787 -5,345 37 U.S. nonbank-reported liabilities......................................... 1,844 240 -616 161 -238 -297 —242 -433 38 Long-term......................................................................... -90 334 -947 -233 -162 -241 -311 -238 39 Short-term....................................................................... 1,934 -94 331 394 -76 -56 69 -195 40 Foreign private purchases of U.S. Treasury securities, net, 697 2,590 2,783 437 -592 3,026 -88 1,191 41 Foreign purchases of other U.S. securities, net................ 378 2,503 1,250 1,030 131 68 21 879 42 Foreign direct investments in the United States, net....... 3,695 1,414 2,176 709 504 561 403 827 43 Allocations of SDR’s.............................................................. 44 Discrepancy.............................................................................. -1,555 5.660 9.763 3,355 1,865 1,244 3,303 799 45 Owing to seasonal adjustments.......................................... 111 129 -2,622 1,780 470 46 Statistical discrepancy in recorded data before seasonal adjustment.................................................................... -1,555 5.660 9.763 2,638 1,736 3,866 1,523 329 Memo items : Changes in official assets: 47 U.S. official reserve assets (increase,—)............................. -1,434 -607 -2,530 -773 -1,578 -407 228 -388 48 Foreign official assets in the U.S. (increase,-f)................. 10,257 5,259 13,007 2,323 3,308 1,251 6,125 4,847 49 Changes in OPEC official assets in the U.S. (part of line 27 above)............................................................................... 10,841 7,092 9,324 3,482 3,263 1,774 805 3,178 50 Transfers under military grant programs (excluded from lines 1, 4, and 9 above)................................................... 1,817 2,217 386 50 86 156 94 32 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 Dec. Jan. Feb. Mar. Apr. May June 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments......................................... 97,908 107,130 ’'114,802 10,410 9,599 9,808 10,072 9,970 10,395 10,112 2 GENERAL IMPORTS including merchandise for immediate con­ sumption plus entries into bonded warehouses...................................... 100,252 96,115 r120,678 11,020 11,269 11,674 12,459 12,593 11,616 12,932 3 Trade balance...................................... -2,344 +11,014 '—5,876 -610 -1,670 -1,866 -2,387 -2,623 -1,221 -2,820 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 1977 Type 1974 1975 1976 Jan. Feb. Mar. Apr. May** Junep July 1 Total.................................................... 15,883 16,226 18,747 19,087 19,122 19,120 18,868 19,195 19,156 3 18,927 2 Gold stock, including Exchange Stabilization Fund1........................ 11,652 11,599 11,598 11,658 11,658 11,658 11,658 11,658 11,658 11,658 3 Special Drawing Rights2................... 2,374 2,335 2,395 2,375 2,383 2,389 2,384 2,470 2,486 3 2,498 4 Reserve position in International Monetary Fund............................... 1,852 2,212 4,434 4,682 4,819 4,812 4,720 4,972 4,920 34,716 5 Convertible foreign currencies.......... 5 80 320 372 262 261 106 95 92 55 1 Gold held under earmark at F.R. Banks for foreign and international SDR based on a weighted average of exchange rates for the currencies accounts is not included in the gold stock of the United States; see Table of 16 member countries. The U.S. SDR holdings and reserve position in 3.24. the IMF also are valued on this basis beginning July 1974. At valuation 2 Includes allocations by the International Monetary Fund of SDR’s used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; at end of July amounted to $19,003; SDR holdings, $2,572, and reserve and $710 million on Jan. 1, 1972; plus net transactions in SDR’s. position in IMF, $4,718. 3 Beginning July 1974, the IMF adopted a technique for valuing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics □ August 1977 3.13 SELECTED U.S. LIABILITIES TO FOREIGNERS Millions of dollars, end of period 1974 1977 Holder, and type of liability 1975 1976 Jan. Feb. Mar. Apr. May*5 June^ 1 Total................... 119,240 119,164 126,552 151,329 147,913 149,008 151,903 157,020 161,181 163,681 2 Foreign countries. ,115,918 115,842 120,929 142,846 139,994 141,023 143,806 149,306 152,490 155,497 Official institutions1........................... 76,801 76,823 80,712 91,900 93,046 93,858 96,782 99,748 101,526 102,967 Short-term, reported by banks in the United States.2................. 53,057 53,079 49,530 53,528 54,515 54,796 56,040 57,486 58,268 57,354 U.S. Treasury bonds and notes: Marketable3................................ 5,059 5,059 6,671 11,788 12,017 12,725 13,772 14,694 15,846 17,773 Nonmarketable4......................... 16,339 16,339 19,976 20,648 20,622 20,495 21,106 20,976 20,950 20,917 Other readily marketable liabilities 5............................. 2,346 2,346 4,535 5,936 5,892 5,842 5,864 6,592 6,462 6,923 Commercial banks abroad: 8 Short-term, reported by banks in the United States2,6............... 30,314 30,106 29,516 37,377 33,510 33,088 32,858 35,356 36,226 37,370 9 Other foreigners.................................. 8,803 8,913 10,701 13,569 13,438 14,077 14,166 14,202 14,738 15,160 10 Short-term, reported by banks in the United States2.................. 8,305 8,415 10,000 12,592 12,441 13,056 13,008 12,873 13,384 13,602 11 Marketable U.S. Treasury bonds and notes3,7............................ 498 498 701 977 997 1,021 1,158 1,329 1,354 1,558 12 Nonmonetary international and regional organization8................. 3,322 3,322 5,623 8,483 7,919 7,985 8,097 7,714 8,691 8,184 13 Short-term, reported by banks in the United States2.......... 3,171 3,171 5,292 5,450 4,625 3,918 4,278 5,287 6,556 5,728 14 Marketable U.S. Treasury bonds and notes3................ 151 151 331 3,033 3,294 4,067 3,819 2 AH 2,135 2,456 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 1977 Area 1975 1976 Dec.3 Jan. Feb. Mar. Apr. May? JuneP 1 76,801 76,823 80,712 91,900 93,046 93,858 96,782 99,748 101,526 102,967 2 Western Europe 1........................... 44,328 44,328 45,701 45,855 45,927 46,108 47,932 48,733 50,048 52,762 3 Canada............................................ 3,662 3,662 3,132 3,406 3,197 2,844 2,684 2,752 2,798 2,699 4 Latin American republics.............. 4,419 4,419 4,450 4,853 4,546 4,525 4,826 4,396 4,672 4,234 5 Asia.................................................. 18,604 18,627 22,551 34,112 35,562 36,458 37,730 39,946 40,311 39,728 6 Africa.............................................. 3,161 3,160 2,983 1,893 1,757 1,771 1,628 1,883 1,821 1,938 7 Other countries 2............................ 2,627 2,627 1,895 1,781 2,057 2,152 1,982 2,038 1,876 1,606 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 1977 Holder, and type of liability 1975 1976 Dec. Dec.8 Jan. Feb. Mar. Apr. May2* June*1 1 All foreigners, excluding the International Monetary Fund............................................... 94,847 94,771 94,338 108,947 105,091 104,858 106,184 111,002 114,434 114,054 2 Payable in dollars.............................................. 94,081 94,004 93,780 108,223 104,359 104,043 105,323 110,193 113,781 113,382 Deposits: 3 Demand...................................................... 14,068 14,051 13,564 16,803 15,314 16,098 15,101 15,382 16,738 16,301 4 Time1.......................................................... 10,106 9,932 10,250 11,297 11,395 11,205 11,239 11,282 11,606 12,130 5 U.S. Treasury bills and certificates 2............. 35,662 35,662 37,414 40,744 41,275 42,669 43,498 44,661 45,463 44,110 6 Other short-term liabilities3.......................... 34,246 34,359 32,552 39,380 36,374 34,071 35,485 38,869 39,975 40,841 7 Payable in foreign currencies............................. 766 766 558 724 732 815 861 809 653 672 8 Nonmonetary international and regional organizations4................................................. 3,171 3,171 5,293 5,450 4,625 3,918 4,278 5,287 6,556 5,728 9 Payable in dollars............................................... 3,171 3,171 5,284 5,445 4,621 3,912 4,275 5,284 6,550 5,715 Deposits: 10 Demand...................................................... 139 139 139 290 166 216 203 119 172 228 11 Time1.......................................................... 111 111 148 205 230 237 236 207 166 156 12 U.S. Treasury bills and certificates.............. 497 497 2,554 2,701 2,890 2,779 2,743 2,849 2,977 2,521 13 Other short-term liabilities5.......................... 2,424 2,424 2,443 2,250 1,335 680 1,093 2,109 3,234 2,811 14 Pavable in foreign currencies........................... 8 5 4 6 3 3 6 13 15 Official institutions, banks, and other foreigners.. 91,676 91,600 89,046 103,497 100,466 100,940 101,906 105,716 107,878 108,326 16 Payable in dollars.............................................. 90,910 90,834 88,497 102,778 99,738 100,131 101,048 104,910 107,231 107,667 Deposits: 17 Demand...................................................... 13,928 13,912 13,426 16,513 15,148 15,882 14,898 15,262 16,565 16,074 18 Time1.......................................................... 9,995 9,796 10,102 11,092 11,166 10,968 11,003 11,076 11,440 11,974 19 U.S. Treasury bills and certificates2............ 35,165 35,165 34,860 38,042 38,386 39,889 40,755 41,813 42,485 41,589 20 Other short-term liabilities3.......................... 31,822 31,961 30,109 37,130 35,039 33,391 34,392 36,760 36,741 38,030 21 Payable in foreign currencies............................. 766 766 549 719 728 809 858 805 647 660 22 Official institutions6............................................... 53,057 53,079 49,530 53,528 54,515 54,796 56,040 57,486 58,268 57,354 23 Payable in dollars............................................... 52,930 52,952 49,530 53,528 54,515 54,796 56,040 57,486 58,268 57,354 Deposits: 24 Demand...................................................... 2,951 2,951 2,644 3,394 2,931 2,404 2,629 2,747 2,676 2,727 25 Time1.......................................................... 4,257 4,167 3,423 2,289 2,456 2,376 2,269 2,335 2,449 2,497 26 U.S. Treasury bills and certificates2............. 34,656 34,656 34,199 37,725 38,081 39,559 40,399 41,508 42,197 41,321 27 Other short-term liabilities5.......................... 11,066 11,178 9,264 10,120 11,047 10,457 10,744 10,896 10,947 10,809 28 Pavable in foreien rurrenripx________ 127 127 29 Banks and other foreigners.................................... 38,619 38,520 39,515 49,969 45,951 46,144 45,866 48,230 49,609 50,972 30 Payable in dollars.............................................. 37,980 37,881 38,966 49,250 45,223 45,335 45,008 47,425 48,963 50,312 31 Banks7............................................................ 29,676 29,467 28,966 36,658 32,788 32,279 32,000 34,551 35,580 36,710 Deposits: 32 Demand.................................................. 8,248 8,231 7,534 9,104 8,475 9,387 8,401 8,721 9,778 9,557 Time1...................................................... 1,942 1,88533 1,856 2,279 2,074 1,779 1,739 1,675 1,805 2,198 34 U.S. Treasury bills and certificates........... 232 232 335 119 122 102 108 104 108 101 35 Other short-term liabilities3 . . . . ............ 19,254 19,119 19,241 25,156 22,111 21,011 21,752 24,060 23,889 24,854 36 Other foreigners............................................. 8,304 8,414 10,000 12,592 12,441 13,056 13,008 12,873 13,383 13,603 Deposits: 37 Demand.................................................. 2,729 2,730 3,248 4,015 3,741 4,091 3,868 3,803 4,111 3,790 38 Time1...................................................... 3,796 3,744 4,823 6,524 6,636 6,813 6,996 7,065 7,186 7,279 39 U.S. Treasury bills and certificates........... 277 277 325 198 183 229 248 201 180 168 40 Other short-term liabilities5...................... 1,502 1,664 1,604 1,854 1,876 1,924 1,896 1,804 1,906 2,366 41 Payable in foreign currencies............................. 639 639 549 719 728 809 858 805 647 660 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 □ August 1977 3.16 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States By Country Millions of dollars, end of period 1974 1977 Area and country 1975 1976 Dec. 7 Jan. Feb. Mar Apr. May** June? 1 94,847 94,771 94,338 108,947 105,091 104,858 106,183 111,002 114,434 114,054 2 Foreign countries.................................................... 91,676 91,600 89,046 103,497 100,466 100,940 101,906 105,715 107,878 108,326 3 Europe................................................................... 48,667 48,813 43,988 46,923 43,765 43,584 44,363 45,049 48,217 50,389 4 607 607 754 348 373 401 499 509 410 464 5 Belgium-Luxembourg.................................... 2,506 2,506 2,898 2,268 2,376 2,411 2,566 2,607 2,640 2,673 6 Denmark........................................................ 369 369 332 363 419 419 569 809 974 1,208 7 Finland............................................................ 266 266 391 419 389 367 312 306 242 258 8 4,287 4,287 7,733 4,875 4,701 4,590 4,817 4,748 4,920 5,090 9 9,420 9,429 4,357 5,965 5,304 5,495 4,677 4,490 4,825 4,270 10 Greece............................................................. 248 248 284 403 421 346 302 350 409 556 11 Italy................................................................. 2,617 2,577 1,072 3,206 2,858 2,703 2,361 2,625 3,509 4,635 12 Netherlands.................................................... 3,234 3,234 3,411 3,007 2,832 2,817 3,181 2,924 3,111 3,529 13 1,040 1,040 996 785 566 793 746 906 999 1,196 14 310 310 195 239 172 228 209 184 238 162 15 Spain................................................................ 382 382 426 565 492 546 555 501 586 668 16 1,138 1,138 2,286 1,693 1,613 1,593 1,717 2,047 2,431 2,391 17 Switzerland..................................................... 9,986 10,139 8,514 9,453 9,571 9,619 8,927 8,798 8,436 9,322 18 Turkey............................................................ 152 152 118 166 85 82 88 81 68 127 19 7,559 7,584 6,886 9,999 8,996 8,711 10,368 10,704 11,944 11,471 20 Yugoslavia...................................................... 183 183 126 188 113 121 96 111 102 115 21 Other Western Europe1................................. 4,073 4,073 2,970 2,672 2,263 2,136 2,144 2,132 2,136 2,019 22 U.S.S.R........................................................... 82 82 40 51 47 45 50 41 66 73 23 Other Eastern Europe................................... 206 206 200 255 172 162 178 176 172 162 24 Canada................................................................ 3,517 3,520 3,076 4,784 4,519 4,815 4,324 4,823 4,869 4,210 25 12,038 11,754 14,942 19,010 17,847 18,529 19,089 20,437 19,944 20,726 26 Argentina........................................................ 886 886 1,147 1,538 1,648 1,820 1,890 1,845 1,971 1,698 27 Bahamas.......................................................... 1,448 1,054 1,827 2,789 1,979 2,439 2,184 4,001 2,744 3,768 28 Brazil.............................................................. 1,034 1,034 1,227 1,432 1,292 1,272 1,108 1,225 1,175 1,349 29 Chile............................................................... 276 276 317 335 325 302 403 329 432 394 30 Colombia........................................................ 305 305 417 1,017 1,090 1,152 1,201 1,253 1,172 1,196 31 Cuba................................................................ 7 7 6 6 6 6 6 6 8 7 32 Mexico............................................................ 1,770 1,770 2,066 2,848 2,710 2,782 2,747 2,699 2,764 2,822 33 Panama........................................................... 488 510 1,099 1,140 909 1,002 1,001 1,008 984 941 34 Peru................................................................. 272 272 244 257 244 228 246 255 219 224 35 Uruguay.......................................................... 147 165 172 245 250 239 241 263 251 234 36 Venezuela........................................................ 3,413 3,413 3,289 3,060 2,986 2,909 2,927 2,440 2,992 2,462 37 Other Latin American republics................... 1,316 1,316 1,494 1,740 2,033 2,226 2,429 2,284 2,270 2,363 38 Netherlands Antilles2.................................... 158 158 129 140 151 157 162 173 215 207 39 Other Latin America..................................... 519 589 1,507 2,139 2,223 1,995 2,545 2,656 2,745 3,061 40 Asia..................................................................... 21,073 21,130 21,539 28,461 29,789 29,258 29,614 30,459 29,933 28,404 41 China, People’s Republic of (Mainland).... 50 50 123 47 47 47 52 52 53 44 42 China, Republic of (Taiwan)........................ 818 818 1,025 985 1,058 1,158 1,067 1,138 1,211 1,191 Hong Kong.................................................... 530 53043 623 892 941 1,039 1,018 993 950 940 44 India................................................................ 261 261 126 648 510 559 538 648 721 814 45 Indonesia........................................................ 1,221 1,221 369 340 695 546 480 887 531 282 46 Israel................................................................ 386 389 386 385 430 547 509 436 503 543 47 Japan............................................................... 10,897 10,931 10,218 14,380 14,481 13,358 13,271 13,071 12,481 12,375 48 Korea.............................................................. 384 384 390 437 448 483 382 430 472 547 49 Philippines...................................................... 747 747 698 627 602 554 652 624 634 610 50 Thailand.......................................................... 333 333 252 275 301 313 312 308 275 258 51 Middle East oil-exporting countries3........... 4,633 4,623 6,461 8,073 9,029 9,276 9,987 10,399 10,447 9,233 52 Other4............................................................. 813 844 867 1,373 1,245 1,377 1,346 1,473 1,655 1,567 53 Africa.................................................................. 3,551 3,551 3,373 2,300 2,207 2,406 2,285 2,587 2,753 2,671 54 Egypt............................................................... 103 103 343 333 209 244 251 245 360 314 55 Morocco......................................................... 38 38 68 88 97 105 94 91 93 81 56 South Africa................................................... 130 130 169 143 211 155 136 176 184 236 57 Zaire............................................................... 84 84 63 35 48 41 39 28 30 30 58 Oil-exporting countries5................................ 2,814 2,814 2,239 1,116 1,033 1,132 964 1,151 1,205 1,145 59 Other4............................................................. 383 383 491 585 609 728 802 896 881 866 60 Other countries................................................... 2,831 2,831 2,128 2,019 2,339 2,348 2,231 2,361 2,162 1,926 61 Australia......................................................... 2,742 2,742 2,014 1,911 2,224 2,231 2,101 2,223 2,026 1,801 62 All other......................................................... 89 89 114 108 116 118 130 138 135 125 63 Nonmonetary international and regional 3,171 3,171 5,293 5,450 4,625 3,918 4,278 5,287 6,556 5,728 64 International...................................................... 2,900 2,900 5,064 5,091 4,275 3,599 3,960 4,995 6,229 5,367 65 Latin American regional................................... 202 202 187 136 160 132 131 110 118 142 66 Other regional6.................................................. 69 69 42 223 190 187 187 182 209 218 For notes see bottom of p. A59. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-reported Data A59 3.17 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States Supplemental “Other” Countries 1 Millions of dollars, end of period 1975 1976 1977 1975 1977 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec Apr. Apr. Other Western Europe Other Asia Cyprus....................... 17 38 68 50 25 Afghanistan................. 19 41 57 55 90 Iceland....................... 20 43 40 32 26 Bangladesh................... 50 54 44 54 Ireland, Republic of. 29 43 236 131 27 Burma.......................... 49 31 34 13 28 Cambodia.................... 4 4 3 4 Other Eastern Europe 29 Jordan.......................... 30 39 23 37 23 Bulgaria..................................... 13 19 14 34 30 Laos.............................. 5 2 2 1 Czechoslovakia.......................... 11 32 11 19 31 Lebanon....................... 180 117 132 140 133 German Democratic Republic. 18 17 3 11 32 Malaysia...................... 92 77 130 394 511 Hungary.................................... 11 13 11 18 16 33 Nepal........................... 22 28 34 32 35 Poland....................................... 42 66 74 75 64 34 Pakistan....................... 118 74 92 188 135 Rumania................................... 14 44 29 19 23 35 Singapore..................... 215 256 344 280 300 36 Sri Lanka (Ceylon).... 13 13 10 22 27 Other Latin American republics 37 Vietnam....................... 70 62 66 50 50 Bolivia..................................... 93 110 117 121 135 Costa Rica............................... 120 124 134 134 170 Other Africa Dominican Republic............... 214 169 170 274 280 38 Ethiopia (incl. Eritrea) 76 60 72 41 48 Ecuador................................... 157 120 150 319 311 39 Ghana.......................... 13 23 45 27 37 El Salvador............................. 144 171 212 176 214 40 Ivory Coast................. 11 18 17 10 26 Guatemala............................... 255 260 368 340 392 41 Kenya........................... 32 19 39 46 185 Haiti........................................ 34 38 48 46 68 42 Liberia......................... 33 53 63 76 95 Honduras................................. 92 99 137 134 210 43 Southern Rhodesia... . 3 1 1 1 1 Jamaica................................... 62 41 59 34 43 44 Sudan........................... 14 12 17 22 30 Nicaragua................................ 126 133 158 113 133 45 Tanzania...................... 21 30 20 48 57 Paraguay................................. 38 43 50 47 60 46 Tunisia......................... 23 29 34 19 15 Surinam 2................................ 13 29 17 47 Uganda......................... 38 22 50 43 Trinidad and Tobago............. 31 131 44 167 85 48 Zambia......................... 18 78 14 35 55 Other Latin America: All Other 23 Bermuda................ 100 170 197 177 199 49 New Zealand............... 48 43 75 24 British West Indies. 627 1,311 2,284 1,874 2,377 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 Dec. Jan. Feb. Mar. Apr. MayP June? 1 Total....................................................................... 1,462 1,285 1,812 2,408 2,352 2,297 2,295 2,505 2,283 2,315 2 Nonmonetary international and regional organizations....................................................... 761 822 415 264 263 248 262 250 262 269 3 Foreign countries.................................................... 700 464 1,397 2,144 2,090 2,049 2,033 2,256 2,022 2,047 4 Official institutions, including central banks. .. 310 124 931 1,352 1,262 1,192 1,163 1,358 1,042 1,097 5 Banks, excluding central banks........................ 291 261 366 588 604 627 648 631 630 638 100 79 100 204 224 230 222 267 350 312 Area or country: 7 Europe................................................................ 470 226 330 537 555 580 571 583 594 612 159 146 214 313 313 296 354 304 297 312 9 United Kingdom............................................ 66 59 66 134 144 122 103 131 148 132 10 Canada................................................................ 8 19 23 29 31 29 37 35 34 35 11 Latin America.................................................... 132 115 140 230 244 267 263 264 254 295 12 Middle East oil-exporting countries1............... 94 894 1,251 1,186 1,104 1,091 1,304 1,069 1,030 13 Other Asia2........................................................ 82 7 8 96 67 67 67 68 68 68 14 African oil-exporting countries 3....................... * * * * * lie * * * 15 Other Africa4...................................................... 1 1 1 1 2 2 2 2 6 16 All other countries............................................. 7 * * 1 4 1 1 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 * 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 □ August 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 Dec. Jan. Feb. Mar. Apr. May® June® 1 20,723 39,056 50,231 69,126 63,719 63,447 65,187 65,874 68,143 70,553 2 Foreign countries.................................................... 20,723 39,055 50,229 69,121 63,712 63,442 65,181 65,869 68,139 70,541 3 Europe..................................................................... 3,970 6,255 8,987 12,162 10,486 10,764 10,887 12,033 12,917 13,761 4 11 21 15 44 41 42 58 63 43 53 5 147 384 352 662 554 611 570 470 589 765 6 48 46 49 85 72 64 67 84 88 84 7 108 122 128 141 137 131 141 126 130 113 8 621 673 1,471 1,448 1,246 1,372 1,343 1,511 1,546 1,468 9 311 589 436 563 511 667 535 550 503 578 10 35 64 49 79 57 85 54 70 65 51 11 316 345 370 929 875 802 870 946 979 875 12 Netherlands........................................................ 133 348 300 304 246 510 252 385 362 462 13 72 119 71 98 124 127 133 142 148 126 14 Portugal.............................................................. 23 20 16 65 80 90 98 90 100 96 15 222 196 249 429 362 375 291 363 302 284 16 153 180 167 177 112 85 74 116 79 105 17 176 335 237 482 539 530 496 496 473 483 18 10 15 86 173 199 207 274 291 322 333 19 1,459 2,580 4,718 6,158 4,960 4,671 5,218 5,939 6,803 7,461 20 10 22 38 45 60 64 37 31 55 58 21 Other Western Europe....................................... 25 22 27 52 53 60 56 51 40 51 22 U.S.S.R............................................................... 46 46 103 99 82 95 104 108 82 90 23 44 131 108 130 178 175 218 203 209 222 24 1,955 2,776 2,817 3,100 2,944 3,512 3,737 3,701 3,554 3,607 25 5,900 12,377 20,532 34,060 31,459 31,487 32,057 31,789 32,550 33,472 26 499 720 1,203 962 937 867 914 873 886 905 27 883 3,405 7,570 15,340 13,872 14,102 15,431 14,157 15,127 16,063 28 900 1,418 2,221 3,378 3,456 3,145 2,951 3,186 3,061 2,968 29 Chile................................................................... 151 290 360 396 370 379 357 420 362 415 30 397 713 689 575 593 598 544 565 505 494 31 Cuba................................................................... 12 14 13 13 13 13 13 13 13 13 32 Mexico................................................................ 1,373 1,972 2,802 3,419 3,366 3,332 3,295 3,302 3,239 3,189 33 Panama............................................................... 274 505 1,052 1,021 760 869 849 753 840 905 34 Peru..................................................................... 178 518 583 690 737 739 733 756 741 791 35 55 63 51 38 41 39 39 35 36 32 36 518 704 1,086 1,552 1,296 1,260 1,241 1,197 1,359 1,348 37 Other Latin American republics....................... 493 852 967 1,140 1,127 1,120 1,132 1,079 1,176 1,148 38 Netherlands Antilles1........................................ 13 62 49 40 45 41 41 54 36 67 39 Other Latin America......................................... 154 1,142 1,885 5,495 4,848 4,985 4,518 5,401 5,170 5,133 40 8,224 16,226 16,057 17,765 16,686 15,471 16,118 15,760 16,596 16,917 41 China, People’s Republic of (Mainland)........ 31 4 22 3 4 30 5 3 15 54 42 China, Republic of (Taiwan)............................ 140 500 736 987 1,028 1,089 1,124 1,099 1,221 1,232 43 Hong Kong........................................................ 147 223 258 361 229 265 317 337 298 334 44 India................................................................... 16 14 21 41 28 23 32 24 34 34 45 Indonesia............................................................ 88 157 102 76 54 55 53 41 39 72 46 Israel................................................................... 155 255 491 554 344 337 328 287 280 327 47 Japan................................................................... 6,398 12,518 10,776 10,992 10,579 9,472 9,486 9,397 9,591 9,912 48 403 955 1,561 1,722 1,710 1,574 1,736 1,807 1,912 1,859 49 181 372 384 559 592 479 463 490 488 406 50 Thailand.............................................................. 273 458 499 422 421 446 491 468 519 561 51 Middle East oil-exporting countries2............... 330 524 1,312 981 1,050 1,389 1,170 1,469 1,271 52 Other3................................................................. 392 441 684 735 715 651 693 638 730 855 53 Africa...................................................................... 388 855 1,228 1,486 1,519 1,478 1,603 1,572 1,559 1,775 54 Egypt................................................................... 35 111 101 132 151 126 149 146 152 141 55 Morocco............................................................. 5 18 9 13 19 13 26 35 34 36 56 South Africa....................................................... 129 329 545 763 798 797 792 783 778 812 57 Zaire................................................................... 61 98 34 29 16 11 10 8 7 9 58 Oil-exporting countries4.................................... 115 231 256 238 249 343 291 243 422 59 Other3................................................................ 158 185 308 293 298 282 283 309 344 355 60 Other countries....................................................... 286 565 609 549 618 729 779 1,013 963 1,009 61 Australia............................................................. 243 466 535 450 512 604 663 894 846 877 62 All other............................................................. 43 99 73 99 105 125 116 119 117 132 63 Nonmonetary international and regional organizations...................................................... 1 * 1 5 7 5 6 5 4 13 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 Dec. Jan. Feb. Mar. Apr. May*7 June» 1 20,723 39,056 50,231 69,126 63,719 63,447 65,187 65,874 68,143 70,553 2 Payable in dollars.................................................. 20,061 37,859 48,683 67,481 61,987 61,488 63,290 64,188 66,379 68,776 3 Loans, total........................................................ 7,660 11,287 13,194 18,300 16,072 16,234 15,756 16,396 16,651 16,081 4 Official institutions, including central banks. 284 381 613 1,451 1,251 935 784 741 967 980 5 Banks, excluding central banks..................... 4,538 7,332 7,665 11,076 9,334 9,764 9,730 10,550 10,618 10,016 6 All other, including nonmonetary interna­ tional and regional organizations............. 2,838 3,574 4,916 5,773 5,487 5,535 5,241 5,105 5,066 5,085 7 Collections outstanding..................................... 4,307 5,637 5,467 5,846 5,833 5,868 6,190 6,316 6,292 6,389 8 Acceptances made for accounts of foreigners... 4,160 11,237 11,147 12,367 12,018 12,009 12,793 12,976 13,045 13,151 9 Other claims1..................................................... 3,935 9,694 19,054 30,968 28,064 27,378 28,550 28,499 30,391 33,155 10 Payable in foreign currencies................................. 662 1,196 1,368 1,645 1,732 1,959 1,897 1,686 1,764 1,778 11 Deposits with foreigners.................................... 428 669 656 1,063 1,126 1,091 1,100 918 864 861 12 Foreign government securities, commercial and finance paper.......................................... 119 289 340 89 145 272 323 332 377 302 13 Other claims....................................................... 115 238 372 493 460 596 474 436 522 614 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 Dec. Jan. Feb. Mar. Apr. May*7 JuneP 1 5,996 7,179 9,536 11,660 11,684 11,829 12,201 12,457 12,287 12,208 By type: 2 Payable in dollars............................................... 5,924 7,099 9,419 11,512 11,534 11,618 12,012 12,256 12,085 12,008 3 Loans, total.................................................... 5,446 6,490 8,316 9,935 9,953 10,131 10,411 10,533 10,392 10,318 4 Official institutions, including central banks 1,156 1,324 1,351 1,422 1,404 1,535 1,625 1,647 1,642 1,634 5 Banks, excluding central banks................. 591 929 1,567 2,212 2,178 2,218 2,192 2,193 2,273 2,240 6 All other, including nonmonetary interna­ tional and regional organizations......... 3,698 4,237 5,399 6,301 6,371 6,377 6,591 6,693 6,478 6,444 7 Other long-term claims..................................... 478 609 1,103 1,577 1,581 1,487 1,604 1,723 1,693 1,690 8 Payable in foreign currencies............................. 72 80 116 148 150 211 190 201 202 200 By area or country: 9 Europe................................................................ 1,271 1,908 2,704 3,232 3,309 3,362 3,616 3,698 3,650 3,663 10 Canada............................................................... 490 501 555 586 518 536 566 558 501 483 11 Latin America.................................................... 2,116 2,614 3,468 4,806 4,878 4,906 4,908 4,990 5,036 5,066 12 Asia..................................................................... 1,582 1,619 1,795 1,882 1,835 1,841 1,896 1,933 1,884 1,830 13 Japan............................................................... 251 258 296 387 383 363 417 416 420 409 14 Middle East oil-exporting countries1........... 384 220 146 117 123 152 149 149 152 15 Other Asia2.................................................... 1,331 977 1,279 1,349 1,334 1,356 1,327 1,368 1,316 1,270 16 Africa.................................................................. 355 366 747 883 856 876 890 953 898 855 17 Oil-exporting countries 3................................ 62 151 264 201 206 211 228 213 210 18 Other4............................................................. 355 305 596 619 655 670 678 725 685 645 19 All other countries5........................................... 181 171 267 269 288 308 327 327 319 311 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 □ August 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 Nov. Dec. Jan. Feb. Mar.r Apr. May? All foreign countries 1Total, all currencies............................ "121,866 151,905 176,493 207,734 219,432 212,415 215,914 223,222 223,044 229,580 2 Claims on United States................. 5,091 6,900 6,743 7,639 7,999 6,563 7,062 7,303 8,860 7,397 3 Parent bank................................. 1,886 4,464 3,665 4,359 4,435 2,999 3,759 3,658 5,462 3,967 4 Other............................................ 3,205 2,435 3,078 3,281 3,564 3,563 3,303 3,645 3,398 3,430 5 Claims on foreigners....................... 111,974 138,712 163,391 192,886 204,390 198,241 201,416 208,500 207,211 214,786 6 Other branches of parent bank.. 19,177 27,559 34,508 42,747 45,894 46,086 47,766 48,645 47,826 49,489 7 Other banks................................. 56,368 60,283 69,206 77,401 83,765 77,415 77,923 81,668 79,800 83,950 8 Official institutions..................... 2,693 4,077 5,792 9,550 10,608 10,836 11,188 11,766 12,356 12,686 9 Nonbank foreigners.................... 33,736 46,793 53,886 63,188 64,123 63,905 64,538 66,421 67,230 68,660 10 Other assets..................................... 4,802 6,294 6,359 7,208 7,043 7,612 7,436 7,420 6,973 7,397 11 Total payable in U.S. dollars............. 79,445 105,969 132,901 156,597 167,717 163,026 165,461 172,352 171,956 176,642 12 Claims on United States............ 4,599 6,603 6,408 7,297 7,705 6,283 6,774 6,904 8,487 6,988 13 Parent bank................................. 1,848 4,428 3,628 4,296 4,375 2,960 3,714 3,611 5,419 3,941 14 Other............................................ 2,751 2,175 2,780 3,001 3,330 3,323 3,061 3,293 3,068 3,047 15 Claims on foreigners....................... 73,018 96,209 123,496 145,986 156,808 152,831 155,063 161,922 160,167 166,162 16 Other branches of parent bank.. 12,799 19,688 28,478 34,399 37,848 38,362 39,822 40,922 39,960 41,373 17 Other banks................................. 39,527 45,067 55,319 60,352 66,331 60,816 60,909 64,591 63,037 66,297 18 Official institutions..................... 1,777 3,289 4,864 8,298 9,017 9,468 9,853 10,469 11,056 11,364 19 Nonbank foreigners................... 18,915 28,164 34,835 42,936 43,611 44,185 44,479 45,940 46,113 47,128 20 Other assets..................................... 1,828 3,157 2,997 3,315 3,204 3,912 3,623 3,526 3,303 3,492 United Kingdom 21 Total, all currencies............................. 61,732 69,804 74,883 77,249 81,466 76,482 78,708 81,268 80,150 83,178 22 Claims on United States................. 1,789 3,248 2,392 3,426 3,354 2,262 1,772 2,311 2,541 2,714 23 Parent bank................................. 738 2,472 1,449 2,538 2,376 1,377 1,011 1,302 1,698 1,850 24 Other............................................ 1,051 776 943 888 978 885 761 1,009 843 863 25 Claims of foreigners........................ 57,761 64,111 70,331 71,477 75,859 71,995 74,713 76,865 75,559 78,333 26 Other branches of parent bank.. 8,773 12,724 17,557 17,949 19,753 19,483 21,450 21,115 21,733 21,122 27 Other banks................................. 34,442 32,701 35,904 35,846 38,089 34,827 35,517 37,074 35,559 38,635 28 Official institutions..................... 735 788 881 1,168 1,274 1,377 1,615 1,606 1,611 1,631 29 Nonbank foreigners.................... 13,811 17,898 15,990 16,514 16,743 16,309 16,130 17,070 16,656 16,945 30 Other assets..................................... 2,183 2,445 2,159 2,345 2,253 2,225 2,224 2,092 2,050 2,131 31 Total payable in U.S. dollars............. 40,323 49,211 57,361 57,699 61,587 57,758 60,038 62,353 61,179 63,481 32 Claims on United States................. 1,642 3,146 2,273 3,313 3,275 2,185 1,684 2,173 2,430 2,590 33 Parent bank................................. 730 2,468 1,445 2,523 2,374 1,372 1,008 1,297 1,690 1,842 34 Other............................................ 912 678 828 789 902 813 676 876 740 748 35 Claims on foreigners....................... 37,817 44,694 54,121 53,541 57,488 54,735 57,492 59,342 57,894 60,030 36 Other branches of parent bank.. 6,509 10,265 15,645 15,405 17,249 17,183 19,114 18,712 19,256 18,642 37 Other banks................................. 23,389 23,716 28,224 27,008 28,983 26,184 26,767 28,352 26,917 29,498 38 Official institutions..................... 510 610 648 817 846 1,110 1,340 1,310 1,297 1,306 39 Nonbank foreigners.................... 7,409 10,102 9,604 10,311 10,410 10,258 10,271 10,968 10,424 10,584 40 Other assets.................................... 865 1,372 967 845 824 838 862 839 855 861 Bahamas and Caymans 41 Total, all currencies............................ 23,771 31,733 45,203 61,886 66,774 66,479 66,134 69,562 70,980 71,579 42 Claims on United States................. 2,210 2,464 3,229 2,970 3,506 3,192 3,722 3,446 5,026 3,579 43 Parent bank................................. 317 1,081 1,477 845 1,141 811 1,418 1,073 2,734 1,289 44 Other............................................ 1,893 1,383 1,752 2,126 2,365 2,381 2,303 2,372 2,293 2,290 45 Claims on foreigners........................ 21,041 28,453 41,040 57,683 62,050 61,539 60,999 64,783 64,654 66,581 46 Other branches of parent bank.. 1,928 3,478 5,411 7,389 8,144 8,463 7,815 9,060 8,095 8,703 47 Other banks................................. 9,895 11,354 16,298 22,481 25,354 23,836 23,435 25,339 25,234 25,585 48 Official institutions..................... 1,151 2,022 3,576 6,485 7,101 7,004 7,225 7,495 7,784 8,062 49 Nonbank foreigners................... 8,068 11,599 15,756 21,327 21,451 22,236 22,523 22,890 23,540 24,231 50 Other assets.................................... 520 815 933 1,232 1,217 1,748 1,413 1,333 1,300 1,419 51 Total payable in U.S. dollars............. 21,937 28,726 41,887 57,799 62,705 62,266 61,605 64,982 66,396 66,589 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 Nov. Dec. Jan. Feb. Mar. r Apr. May p All foreign countries 52 Total, all currencies.......................... 121,866 151,905 176,493 207,734 219,432 212,415 215,914 223,222 223,044 229,580 53 To United States........................... 5,610 11,982 20,221 30,290 32,836 30,411 30,515 34,455 33,112 34,806 54 Parent bank............................... 1,642 5,809 12,165 19,059 19,894 18,728 19,261 21,054 18,342 20,536 55 Other.......................................... 3,968 6,173 8,057 11,231 12,942 11,683 11,253 13,402 14,770 14,270 56 To foreigners................................. 111,615 132,990 149,815 170,690 179,862 175,124 178,540 181,905 182,966 187,537 57 Other branches of parent bank. 18,213 26,941 34,111 41,711 44,309 44,288 46,327 47,661 46,175 48,157 58 Other banks............................... 65,389 65,675 72,259 78,369 83,852 79,486 78,295 80,031 82,668 84,018 59 Official institutions................... 10,330 20,185 22,773 23,967 25,828 25,771 26,631 26,199 26,125 27,298 60 Nonbank foreigners.................. 17,683 20,189 20,672 26,643 25,873 25,580 27,288 28,014 27,998 28,065 61 Other liabilities............................. 4,641 6,933 6,456 6,755 6,734 6,880 6,859 6,862 6,965 7,237 62 Total payable in U.S. dollars........... 80,374 107,890 135,907 161,054 173,092 167,589 170,533 177,247 177,092 181,836 63 To United States........................... 5,027 11,437 19,503 29,399 32,049 29,475 29,601 33,512 32,148 33,920 64 Parent bank............................... 1,477 5,641 11,939 18,821 19,680 18,480 19,015 20,800 18,097 20,280 65 Other.......................................... 3,550 5,795 7,564 10,578 12,368 10,996 10,585 12,712 14,051 13,640 66 To foreigners................................. 73,189 92,503 112,879 128,231 137,527 134,352 137,290 140,155 141,220 144,098 67 Other branches of parent bank. 12,554 19,330 28,217 34,008 37,037 37,706 39,372 40,691 39,096 40,696 68 Other banks............................... 43,641 43,656 51,583 55,900 60,597 56,772 56,096 57,750 60,513 60,835 69 Official institutions................... 7,491 17,444 19,982 20,924 22,811 23,038 23,598 23,411 23,216 24,324 70 Nonbank foreigners.................. 9,502 12,072 13,097 17,398 17,016 16,836 18,223 18,303 18,395 18,242 71 Other liabilities............................. 2,158 3,951 3,526 3,424 3,516 3,761 3,643 3,580 3,724 3,819 United Kingdom 72 Total, all currencies.......................... 61,732 69,804 74,883 77,249 81,466 76,482 78,708 81,268 80,150 83,178 73 To United States........................... 2,431 3,978 5,646 5,520 5,997 5,101 4,871 6,365 6,272 5,845 74 Parent bank............................... 136 510 2,122 1,459 1,198 1,211 1,191 1,537 1,515 1,460 75 Other.......................................... 2,295 3,468 3,523 4,061 4,798 3,889 3,681 4,828 4,756 4,386 76 To foreigners................................. 57,311 63,409 67,240 69,368 73,228 69,202 71,523 72,665 71,787 75,145 77 Other branches of parent bank. 3,944 4,762 6,494 6,783 7,092 7,663 7,981 8,252 7,764 8,570 78 Other banks............................... 34,979 32,040 32,964 33,690 36,259 32,336 32,097 33,830 33,747 35,932 79 Official institutions................... 8,140 15,258 16,553 16,181 17,273 16,975 18,204 17,711 17,260 17,538 80 Nonbank foreigners.................. 10,248 11,349 11,229 12,713 12,605 12,228 13,242 12,872 13,016 13,106 81 Other liabilities............................. 1,990 2,418 1,997 2,360 2,241 2,179 2,313 2,238 2,091 2,187 82 Total payable in U.S. dollars........... 39,689 49,666 57,820 58,757 63,174 59,009 61,331 63,346 62,373 64,343 83 To United States........................... 2,173 3,744 5,415 5,330 5,849 4,876 4,704 6,189 6,108 5,688 84 Parent bank............................... 113 484 2,083 1,447 1,182 1,195 1,166 1,506 1,498 1,438 85 Other.......................................... 2,060 3,261 3,332 3,883 4,666 3,681 3,538 4,683 4,610 4,250 86 To foreigners................................. 36,646 44,594 51,447 52,503 56,372 53,230 55,675 56,283 55,390 57,720 87 Other branches of parent bank. 2,519 3,256 5,442 5,520 5,874 6,573 6,906 7,188 6,563 7,333 88 Other banks............................... 22,051 20,526 23,330 23,040 25,527 22,131 22,211 23,841 23,815 25,171 89 Official institutions................... 5,923 13,225 14,498 14,283 15,423 15,184 16,345 15,817 15,394 15,674 90 Nonbank foreigners.................. 6,152 7,587 8,176 9,660 9,547 9,336 10,213 9,437 9,617 9,541 91 Other liabilities............................. 870 1,328 959 924 953 903 953 874 875 936 Bahamas and Caymans 23,771 31,733 45,203 61,886 66,774 66,479 66,134 69,562 70,980 71,579 93 To United States........................... 1,573 4,815 11,147 20,676 22,723 21,689 21,672 24,314 23,090 25,175 94 Parent bank............................... 307 2,636 7,628 14,797 16,163 15,191 15,241 17,146 14,545 16,465 95 Other.......................................... 1,266 2,180 3,520 5,879 6,560 6,499 6,431 7,167 8,545 8,710 96 To foreigners................................. 21,747 26,140 32,949 40,111 42,897 43,376 43,166 43,863 46,641 45,054 97 Other branches of parent bank. 5,508 7,702 10,569 12,931 13,801 13,551 14,406 14,931 14,123 14,019 98 Other banks............................... 14,071 14,050 16,825 19,923 21,758 22,256 21,006 20,475 23,780 22,201 99 Official institutions................... 492 2,377 3,308 3,198 3,573 3,607 3,314 3,302 3,892 4,100 100 Nonbank foreigners.................. 1,676 2,011 2,248 4,059 3,765 3,963 4,439 5,155 4,845 4,734 101 Other liabilities............................. 451 778 1,106 1,099 1,154 1,413 1,295 1,385 1,249 1,350 102 Total payable in U.S. dollars........... 22,328 28,840 42,197 58,367 63,417 62,851 62,416 65,792 67,199 67,556 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics □ August 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.— June? Dec. Jan. Feb. Mar. Apr.® Mayp June? Holdings (end of period) 4 1 Estimated total..................... 7,703 15,798 15,798 16,307 17,813 18,748 18,450 19,335 21,787 2 Foreign countries................. 7,372 12,765 12,765 13,014 13,746 14,929 16,024 17,200 19,331 3 Europe.............................. 1,085 2,330 2,330 2,300 2,504 2,870 3,505 3,624 4,862 4 Belgium-Luxembourg.. 13 14 14 14 14 14 14 16 18 5 Germany....................... 215 764 764 764 789 894 1,112 1,112 1,262 6 Netherlands................. 16 288 288 287 367 388 388 418 492 7 Sweden......................... 276 191 191 191 188 188 188 148 149 8 Switzerland................... 55 261 261 271 324 317 397 429 439 9 United Kingdom.......... 363 485 485 476 512 713 1,069 1,181 2,190 10 Other Western Europe. 143 323 323 293 306 354 332 316 312 11 Eastern Europe............ 4 4 4 4 4 4 4 4 4 12 Canada............................. 395 256 256 256 261 270 268 271 279 13 Latin America............................... 200 312 312 314 295 405 448 472 481 14 Venezuela................................... 4 149 149 149 149 258 193 193 193 15 Other Latin America republics. 29 35 35 21 21 26 21 21 18 16 Netherlands Antilles 1.............. 161 118 118 125 121 120 119 113 114 17 Asia................................................ 5,370 9,323 9,323 9,637 10,330 11,068 11,476 12,528 13,407 18 Japan.......................................... 3,271 2,687 2,687 2,682 2,806 3,123 3,174 3,773 4,290 19 Africa............................................ 321 543 543 506 356 305 305 279 279 20 All other.................................... * * * * * 11 23 27 23 21 Nonmonetary international and regional organizations..................................... 331 3,033 3,033 3,294 4,068 3,819 2,426 2,135 2,456 22 International......................................... 322 2,905 2,905 3,180 3,948 3,700 2,318 2,032 2,353 23 Latin American regional..................... 9 128 128 114 119 118 108 103 103 Transactions (net purchases, or sales (—), during period) 24 Total..................... 1,994 8,095 5,989 735 510 1,505 936 -298 885 2,451 25 Foreign countries. 1,814 5,393 6,566 428 249 732 1,184 1,094 1,176 2,131 26 Official institutions. 1,612 5,116 5,985 421 229 709 1,047 922 1,152 1,927 27 Other foreign.......... 202 276 580 6 21 23 137 172 24 203 28 Nonmonetary international and regional organizations..................................... 180 2,702 -577 307 261 773 -248 -1,392 -291 321 Memo: Oil-exporting countries 29 Middle East 2....................................... 1,797 3,887 2,294 140 254 505 408 338 392 397 30 Africa 3................................................. 170 221 -264 -37 -150 -51 -26 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 I 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 1977 Assets 1974 1975 1976 Jan. Feb. Mar. Apr. May June July 418 353 352 383 361 349 305 436 379 468 Assets held in custody: 2 U.S. Treasury securities1................................... 55,600 60,019 66,532 66,992 68,653 71,435 73,261 73,964 74,098 75,443 16,838 16,745 16,414 16,343 16,304 16,271 16,282 16,221 16,184 16,179 1 Marketable U.S. Treasury bills, certificates of indebtedness, notes, Note.—Excludes deposits and U.S. Treasury securities held for inter­ and 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.- Dec. Jan. Feb. Mar. Apr. Mayp JuneP JuneP U.S. corporate securities Stocks 1 15,347 18,227 7,214 1,562 1,425 1,162 1,101 1,135 1,207 1,184 2 Foreign sales...................................................... 10,678 15,474 5,972 1,287 1,137 1,036 980 913 978 927 3 Net purchases, or sales (—)............................... 4,669 2,752 1,242 274 288 126 121 222 229 257 4 Foreign countries................................................ 4,651 2,740 1,224 281 290 124 116 222 209 263 5 Europe............................................................ 2,491 336 575 111 130 47 72 105 128 94 6 France......................................................... 262 256 32 37 27 -10 4 -6 -3 21 7 Germany..................................................... 251 68 77 24 1 -7 -4 38 37 12 8 Netherlands................................................ 359 -199 27 -35 24 -5 -10 -7 27 -2 9 899 -100 114 -7 39 23 30 38 4 -20 10 594 340 330 84 39 36 55 47 67 86 11 Canada............................................................ 361 325 5 60 8 30 9 -5 -33 -4 12 Latin America................................................ -7 155 88 1 4 14 14 21 17 18 13 Middle East1.................................................. 1,640 1,803 499 115 100 50 17 97 92 143 14 Other Asia2.................................................... 142 117 51 9 46 -17 3 5 4 10 15 Africa.............................................................. 10 7 * 2 * * * * * * 16 Other countries.............................................. 15 -4 6 -17 2 1 1 -1 1 2 17 Nonmonetary international and regional 18 12 -18 -6 -2 1 5 1 20 -7 Bonds3 18 Foreign purchases.............................................. 5,408 5,529 3,723 533 400 534 348 856 609 976 19 Foreign sales....................................................... 4,642 4,322 1,715 524 322 214 208 245 332 394 20 Net purchases, or sales (—).............................. 766 1,207 2,008 9 78 320 140 611 277 582 21 Foreign countries................................................ 1,795 1,248 1,957 6 73 329 112 566 308 569 22 Europe............................................................ 113 92 877 53 8 281 75 100 99 314 23 France......................................................... 82 40 -25 7 -5 -3 -2 -5 -7 -3 24 Germany..................................................... -6 -50 21 1 -4 4 * -4 13 12 25 Netherlands................................................ -8 -29 19 -20 2 -2 -3 -7 -28 57 26 Switzerland................................................. 117 158 110 13 15 32 31 -4 19 17 27 United Kingdom........................................ -52 23 707 54 8 225 43 106 102 223 28 Canada............................................................ 128 96 77 7 11 55 -3 6 1 7 29 Latin America................................................ 31 94 9 27 -5 8 1 3 * 2 30 Middle East1.................................................. 1,553 1,179 981 -21 59 -7 48 454 192 235 31 Other Asia2.................................................... -35 -165 18 -43 1 -8 -6 4 17 10 32 Africa.............................................................. 5 -25 -2 -14 * * -2 * * * 33 Other countries.............................................. 1 -21 * -2 * * * * * * 34 Nonmonetary international and regional organizations............................................... -1,030 -41 49 3 4 -9 27 45 -31 13 Foreign securities -189 -322 -292 4 -18 -109 -62 -40 -7 -56 36 Foreign purchases.............................................. 1,541 1,937 1,032 217 181 130 187 157 204 173 37 Foreign sales...................................................... 1,730 2,259 1,323 213 199 238 249 197 211 229 38 Bonds, net purchases, or sales (—)....................... -6,325 -8,652 -2,037 -1,323 -30 -374 -56 -11 -866 -700 39 Foreign purchases.............................................. 2,383 4,932 3,876 670 818 581 628 606 607 636 40 Foreign sales...................................................... 8,708 13,584 5,914 1,993 848 955 684 617 1,473 1,337 41 Net purchases, or sales (—) of stocks and bonds.. -6,515 -8,973 -817 -1,319 -49 -483 -118 -51 -873 757 42 Foreign countries.................................................... -4,323 -7,078 -1,800 -790 -338 -488 -149 4 -201 -628 43 Europe................................................................ -53 -844 -507 -140 -21 -207 54 2 -124 -211 44 Canada............................................................... -3,202 -5,168 -1,156 -668 -298 -265 -83 -94 -128 -288 45 Latin America.................................................... -306 3 119 37 25 42 35 69 -13 -39 46 Asia..................................................................... -622 -700 -276 -24 -53 -61 -155 25 62 -94 47 Africa................................................................. 15 48 4 2 -1 2 * * 3 48 Other countries.................................................. -155 -416 16 3 9 1 * 2 2 2 49 Nonmonetary international and regional -2,192 -1,898 -531 -529 290 5 31 -55 -673 -129 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 □ August 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 1976 1977 1976 1977 Type, and area or country Mar. June Sept. Dec. Mar.? Mar. June Sept. Dec. Mar.® Liabilities to foreigners Claims on foreigners 1 6,365 6,307 6,449 6,654 6,632 12,699 13,847 13,172 14,188 14,956 By type: 2 5,715 5,683 5,715 5,943 5,871 11,712 12,850 12,111 13,205 14,004 3 Payable in foreign currencies............................. 650 625 734 710 762 988 997 1,060 984 952 4 Deposits with banks abroad in reporter’s 480 558 592 442 387 5 508 439 468 541 565 By area or country: 6 Foreign countries.................................................... 6,146 6,061 6,263 6,445 6,441 12,697 13,846 13,170 14,187 14,953 7 Europe................................................................. 2,337 2,271 2,386 2,227 2,124 4,932 5,326 5,151 5,271 5,217 8 6 13 15 10 9 17 17 21 21 23 9 296 233 183 166 169 116 193 195 164 170 10 12 12 13 7 15 35 30 26 56 49 11 5 1 17 2 2 31 131 135 77 40 12 205 159 185 200 163 355 363 413 426 422 13 152 228 256 174 173 305 358 492 378 366 14 25 29 28 48 80 41 47 56 51 90 15 125 116 148 131 135 406 335 358 384 473 16 162 170 141 141 168 176 146 142 166 172 17 23 22 24 29 37 58 52 43 51 42 18 Portugal.......................................................... 3 3 5 13 23 45 22 28 40 35 19 68 51 36 40 52 516 432 336 369 325 20 25 24 35 34 35 80 84 62 90 92 21 162 213 243 190 214 207 270 253 241 154 22 14 20 16 13 12 26 31 23 25 32 23 United Kingdom............................................ 924 837 888 879 689 2,282 2,602 2,365 2,445 2,476 24 Yugoslavia...................................................... 91 108 113 123 113 30 28 30 26 30 25 Other Western Europe................................... 6 7 8 7 6 18 14 17 20 18 26 U.S.S.R........................................................... 23 10 19 9 15 106 96 81 156 104 27 Other Eastern Europe................................... 10 16 14 13 7 80 75 79 85 36 28 Canada................................................................ 315 373 328 380 404 2,234 2,202 2,197 2,465 2,428 29 Latin America.................................................... 1,194 1,095 1,028 1,036 1,117 2,565 3,055 2,816 3,563 4,358 30 Argentina........................................................ 49 49 48 44 42 48 43 39 44 41 31 376 330 251 260 256 883 1,150 925 1,367 1,824 32 97 97 58 72 49 475 462 417 683 536 33 Chile............................................................... 11 15 16 17 16 27 46 26 34 35 34 16 19 11 13 18 47 57 66 59 75 35 Cuba................................................................ * * * * * 1 1 1 1 1 36 92 12 74 98 117 332 332 352 332 317 37 Panama........................................................... 10 12 10 34 12 84 101 83 74 105 38 Peru................................................................. 30 31 32 25 24 38 39 35 42 32 39 Uruguay.......................................................... 2 3 3 4 4 4 4 22 5 6 40 Venezuela........................................................ 163 184 222 219 260 156 186 215 194 214 41 Other Latin American republics................... 75 99 104 141 101 170 184 179 276 234 42 58 55 68 10 11 7 10 9 9 14 43 214 130 129 100 2 294 440 447 441 918 44 Asia..................................................................... 1,733 1,752 2,027 2,138 2,154 2,491 2,729 2,421 2,325 2,371 45 China, People’s Republic of (Mainland)___ 5 8 1 20 21 35 23 11 23 30 46 China, Republic of (Taiwan)........................ 110 124 129 112 113 100 215 136 200 130 47 Hong Kong.................................................... 23 28 33 40 42 66 104 88 96 107 48 India................................................................ 9 10 11 23 39 60 51 53 55 36 49 Indonesia........................................................ 141 133 144 134 137 155 160 193 210 246 50 Israel............................................................... 26 34 32 39 37 42 53 48 41 50 51 Japan.............................................................. 307 290 275 229 206 1,163 1,170 1,010 908 963 52 Korea.............................................................. 53 62 85 77 97 105 131 142 118 130 53 Philippines...................................................... 18 18 28 53 59 106 114 93 86 84 54 Thailand.......................................................... 18 11 23 24 19 20 19 23 22 26 55 Other Asia...................................................... 1,022 1,035 1,260 1,385 1,378 638 691 624 566 466 56 Africa.................................................................. 502 527 426 588 574 343 378 406 392 429 57 Egypt.............................................................. 30 22 25 21 29 22 28 36 28 71 58 Morocco.......................................................... 7 32 42 43 21 10 12 9 10 12 59 South Africa................................................... 113 88 65 54 33 80 83 78 87 80 60 Zaire............................................................... 7 12 24 36 39 23 25 28 21 17 61 Other Africa................................................... 345 372 270 429 446 207 230 255 247 249 62 Other countries.................................................... 65 44 67 76 68 133 155 178 172 150 63 Australia......................................................... 47 32 59 57 49 97 100 112 107 114 64 All other.......................................................... 18 12 18 19 19 36 56 67 65 36 65 Nonmonetary international and regional organizations................................................... 219 246 186 208 192 1 1 1 1 2 1 Includes Surinam until 1976. mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks and intercompany accounts Note.—Reported by exporters, importers, and industrial and com- between U.S. companies and their affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A67 3.27 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Large Nonbanking Concerns in the United States Millions of dollars, end of period 1976 1977 Type and country 1973 1974 1975 Nov. Dec. Jan. Feb. Mar. Apr.? May** 1 3,185 3,357 3,799 5,141 5,440 5,381 5,590 6,314 6,226 7,370 By type: 2 Payable in dollars.............................................. 2,641 2,660 3,042 4,518 4,772 4,676 4,935 5,696 5,555 6,736 3 Deposits.......................................................... 2,604 2,591 2,710 4,131 4,399 4,308 4,558 5,241 4,973 6,213 4 Short-term investments 1............................... 37 69 332 387 373 368 377 455 582 523 5 Payable in foreign currencies............................. 544 697 757 624 669 705 654 619 672 634 6 Deposits.......................................................... 431 429 511 408 383 397 339 317 362 300 7 Short-term investments 1............................... 113 268 246 216 286 308 315 302 310 334 By country: 8 United Kingdom................................................ 1,128 1,350 1,306 1,695 1,837 1,854 1,846 1,879 1,713 1,889 9 Canada................................................................ 775 967 1,156 1,552 1,539 1,292 1,338 1,468 1,503 1,642 10 Bahamas.............................................................. 597 391 546 1,062 1,247 1,320 1,412 1,709 1,649 2,350 11 Japan................................................................... 336 398 343 138 113 130 165 147 155 158 12 All other.............................................................. 349 252 446 694 704 785 829 1,111 1,206 1,331 i Negotiable and other readily transferable foreign obligations payable Note.—Data represent the assets abroad of large nonbanking con­ on 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 1976 1977 1976 1977 Area and country Mar. June Sept. Dec. Mar.p Mar. June Sept. Dec. Mar.p Liabilities to foreigners Claims on foreigners 1 Total....................................................................... 4,064 3,928 3,718 3,508 3,438 5,178 5,037 4,974 4,979 4,936 2 Europe.................................................................... 3,109 2,985 2,813 2,693 2,617 973 984 953 910 897 3 Germany............................................................ 446 425 406 396 391 34 35 73 72 84 4 Netherlands........................................................ 214 214 270 258 254 22 211 211 156 154 5 Switzerland......................................................... 484 467 327 260 178 56 56 54 57 52 6 United Kingdom................................................ 1,572 1,486 1,445 1,409 1,372 349 365 298 297 257 7 Canada................................................................... 144 166 111 89 82 1,468 1,511 1,507 1,530 1,470 8 Latin America........................................................ 248 222 230 243 244 1,776 1,609 1,552 1,521 1,488 9 Bahamas............................................................. 184 157 132 138 139 7 37 37 36 34 10 Brazil.................................................................. 5 5 5 5 5 183 165 172 133 124 11 Chile................................................................... 1 1 1 1 1 312 306 244 248 210 12 Mexico................................................................ 6 6 7 17 19 209 187 219 195 180 13 Asia......................................................................... 495 489 498 423 432 685 712 739 773 816 14 Japan.................................................................. 394 388 402 397 413 129 85 80 77 96 15 Africa..................................................................... 2 2 2 2 2 214 163 165 187 198 16 All other i.............................................................. 65 64 64 58 59 61 59 58 58 67 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics □ August 1977 3.29 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on July 31, 1977 Rate on July 31, 1977 Rate on July 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............................. 5.5 June 1977 Germany, Fed. Rep. of. 3.5 Sept. 1975 8.0 Oct. 1976 Belgium........................... 6.0 June 1977 Italy............................... 13.0 June 1977 1.5 July 1977 Brazil............................... 28.0 May 1976 5.0 Apr. 1977 United Kingdom.......... 8.0 May 1977 Canada............................ 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 1977 Country, or type 1974 1975 1976 Feb. Mar. Apr. May June July 1 Euro-dollars........ 11.01 7.02 5.58 5.08 5.13 5.16 5.80 5.78 5.80 2 United Kingdom. 13.34 10.63 11.35 11.56 10.31 8.59 7.63 7.81 7.77 3 Canada................ 10.47 8.00 9.39 7.78 7.63 7.58 7.44 7.16 7.27 4 Germany 9.80 4.87 4.19 4.64 4.70 4.57 4.43 4.24 4.20 5 Switzerland. 3.01 1.45 1.68 2.88 2.61 3.98 3.80 3.01 6 Netherlands. 5.17 7.02 6.04 5.73 4.89 3.03 2.84 3.05 7 France........ 7.91 8.65 9.81 9.87 9.33 9.13 9.01 8.67 8 Italy.... 10.37 16.32 15.86 16.57 16.26 15.49 14.65 14.09 9 Belgium. 6.63 10.25 7.59 7.07 7.01 6.94 6.88 6.85 10 Japan... 11.64 7.70 7.50 7.20 6.46 5.75 6.05 6.25 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 1977 Country/currency 1974 1975 1976 Feb. Mar. Apr. May June July 1 Australia/dollar.................. 143.89 130.77 122.15 109.04 109.94 110.53 110.31 110.80 112.20 2 Austria/shilling................... 5.3564 5.7467 5.5744 5.8453 5.8822 5.9252 5.9533 5.9647 6.1691 3 Belgium/franc..................... 2.5713 2.7253 2.5921 2.7114 2.7258 2.7509 2.7700 2.7713 2.8208 4 Canada/dollar..................... 102.26 98.30 101.41 97.295 95.125 95.103 95.364 94.549 94.230 5 Denmark/krone................. 16.442 17.437 16.546 16.891 17.038 16.710 16.638 16.544 16.769 6 Finland /markka................. 26.565 27.285 25.938 26.169 26.296 24.899 24.530 24.524 24.902 7 France/franc....................... 20.805 23.354 20.942 20.083 20.075 20.133 20.190 20.240 20.607 8 Germany/deutsche mark... 38.723 40.729 39.737 41.582 41.812 42.119 42.394 42.453 43.827 9 India/rupee......................... 12.460 11.926 11.148 11.285 11.313 11.310 11.320 11.286 11.342 10 Ireland/pound..................... 234.03 222.16 180.48 171.03 171.74 171.90 171.85 171.91 172.26 11 Italy/lira.............................. .15372 .15328 .12044 .11327 .11276 .11264 .11279 .11295 .11330 12 Japan/yen........................... .34302 .33705 .33741 .35087 .35687 .36339 .36046 .36652 .37756 13 Malaysia/ringgit................. 41.682 41.753 39.340 40.011 40.152 40.305 40.255 40.270 40.443 14 Mexico/peso....................... 8.0000 8.0000 6.9161 4.4084 4.3978 4.4076 4.3890 4.3582 4.3528 15 Netherlands/guilder........... 37.267 39.632 37.846 39.813 40.079 40.464 40.7009 40.326 40.983 16 New Zealand/dollar........... 140.02 121.16 99.115 95.192 95.689 96.129 96.002 96.264 97.160 17 Norway/krone.................... 18.119 19.180 18.327 18.904 19.035 18.909 18.956 18.915 19.023 18 Portugal/escudo................. 3.9506 3.9286 3.3159 3.0717 2.5778 2.5752 2.5818 2.5802 2.5953 19 South Africa/rand.............. 146.98 136.47 114.85 115.00 115.00 114.93 115.00 114.88 114.98 20 Spain/peseta....................... 1.7337 1.7424 1.4958 1.4475 1.4530 1.4536 1.4491 1.4404 1.2382 21 Sri Lanka/rupee................. 14.978 14.385 11.908 11.442 12.820 13.676 13.700 13.664 13.700 22 Sweden/krona..................... 22.563 24.141 22.957 23.543 23.726 23.004 22.962 22.625 22.991 23 Switzerland/franc............... 33.688 38.743 40.013 39.669 39.209 39.582 39.694 40.170 41.487 24 United Kingdom/pound... 234.03 222.16 180.48 171.03 171.74 171.90 171.85 171.91 172.26 Memo: 25 United States/dollar 1........ 84.11 82.20 89.68 90.55 90.45 90.13 89.99 89.91 88.67 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 .................................... June 1977 A-78 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman Stephen S. Gardner, Vice Chairman Henry C. W allich Philip E. Coldwell Philip C. Jackson, Jr. J. Charles Partee David M. Lilly OFFICE OF OFFICE OF BOARD MEMBERS OFFICE OF STAFF 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 Milton 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 Board 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 DIVISION OF DATA PROCESSING Edward C. Ettin, Associate Director John H. Kalchbrenner, Associate Director Charles L. Hampton, Director LEGAL DIVISION Eleanor J. Stockwell, Senior Research Bruce M. Beardsley, Associate Director Division Officer Uyless D. Black, Assistant Director John D. Hawke, Jr., General Counsel James R. Wetzel, Senior Research Division Glenn L. Cummins, Assistant Director Baldwin B. Tuttle, Deputy General Officer Robert J. Zemel, Assistant Director Counsel Robert A. Eisenbeis, Associate Research Robert E. Mannion, Assistant General Division Officer DIVISION OF PERSONNEL Counsel tJohn J. Mingo, Associate Research Division Allen L. Raiken, Assistant General Counsel Officer David L. Shannon, Director Charles R. McNeill, Assistant to the J. Cortland G. Peret, Associate Research Charles W. Wood, Assistant Director General Counsel Division Officer A 70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICE OF THE CONTROLLER DIVISION OF CONSUMER AFFAIRS t Helmut F. Wendel, Associate Research Division Officer John Kakalec, Controller Janet O. Hart, Director James M. Brundy, Assistant Research Tyler E. Williams, Jr., Assistant Controller Nathaniel E. Butler, Associate Director Division Officer Jerauld C. Kluckman, Associate Director Jared J. Enzler, Assistant Research Division DIVISION OF ADMINISTRATIVE SERVICES Officer Robert M. Fisher, Assistant Research Walter W. Kreimann, Director OFFICE OF THE SECRETARY Division Officer John D. Smith, Assistant Director Richard H. Puckett, Assistant Research Theodore E. Allison, Secretary Division Officer Griffith L. Garwood, Deputy Secretary Stephen P. Taylor, Assistant Research OFFICE OF STAFF DIRECTOR FOR *Robert E. Matthews, Assistant Secretary Division Officer FEDERAL RESERVE BANK ACTIVITIES Levon H. Garabedian, Assistant Director William H. Wallace, Staff Director DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF FEDERAL RESERVE BANK EXAMINATIONS AND BUDGETS John E. Ryan, Director fFREDERiCK C. Schadrack, Deputy Director DIVISION OF INTERNATIONAL FINANCE Albert R. Hamilton, Associate Director Frederick R. Dahl, Associate Director Clyde H. Farnsworth, Jr., Assistant Director William W. Wiles, Associate Director Edwin M. Truman, Director John F. Hoover, Assistant Director Jack M. Egertson, Assistant Director John E. Reynolds, Counselor P. D. Ring, Assistant Director Don E.Kline, Assistant Director Robert F. Gemmill, Associate Director Thomas E. Mead, Assistant Director George B. Henry, Associate Director DIVISION OF Robert S. Plotkin, Assistant Director Charles J. Siegman, Associate Director FEDERAL RESERVE BANK OPERATIONS Thomas A. Sidman, Assistant Director Reed J. Irvine, Senior International Division Officer Samuel H. Talley, Assistant Director James R. Kudlinski, Director William Taylor, Assistant Director Samuel Pizer, Senior International Division Walter A. Althausen, Assistant Director Officer Brian M. Carey, Assistant Director * On loan from the Federal Reserve Bank of Philadelphia, Harry A. Guinter, Assistant Director t On loan from the Federal Reserve Bank of New York. $ On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A ll Federal Open Market Committee Arthur F. Burns, Chairman Paul A. Volcker, Vice Chairman Philip E. Coldwell Philip C. Jackson, Jr. J. Charles Partee Stephen S. Gardner David M. Lilly Lawrence K. Roos Roger Guffey Robert P. Mayo Henry C. W allich Frank E. Morris Arthur L. Broida, Secretary A natol Balbach, Associate Economist M urray Altm ann, Deputy Secretary Richard G. Davis, Associate Economist Normand R. V. Bernard, Assistant Thomas Davis, Associate Economist Secretary Robert Eisenmenger, Associate Economist Thomas J. O’C onnell, General Counsel Edward C. Ettin, Associate Economist Edward G. Guy, Deputy General Counsel James L. K ichline, Associate Economist Baldwin B. T uttle, Assistant General John E. Reynolds, Associate Economist Counsel K arl Scheld, Associate Economist Stephen H. Axilrod, Economist Edwin M. Truman, Associate Economist Joseph S. Zeisel, Associate Economist A lan 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 G ilbert 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 W illiam J. Korsvik, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 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 Richard L. Smoot 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 I. E. Killian 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 Donald W. Moriarty 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; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 Federal Reserve Board Publications Available from Publications Services, Division of Ad­ request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed­ of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) The Federal Reserve System—Purposes and 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 M onetary 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 M onetary 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 M onthly 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 M arket 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 M oderate Selected Interest and Exchange rates—W eekly 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 M onetary 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 75 CONSUMER EDUCATION PAMPHLETS Revised Measures of M anufacturing 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 cial Banks. 9/73. STAFF ECONOMIC STUDIES Rates on Consumer Instalment Loans. 9/73. New Series for Large M anufacturing Corpora­ Studies and papers on economic and financial subjects tions. 10/73. that are of general interest in the field of economic U.S. Energy Supplies and Uses, Staff Economic research. Study by Clayton Gehman. 12/73. Inflation and Stagnation in Major Foreign In­ Summaries Only Printed in the Bulletin 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 M ultibank 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 Sm all Version of the May 1976. 25 pp. MIT-PENN-SSRC Econometric M odel, Staff Seasonal Adjustment of Mx—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 M aterials. 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 M anufacturing 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 M arket. 6/77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix “A” is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits—Continued Agricultural loans, commercial banks, 18, 20-22, 26 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners): corporations, 25 Banks, by classes, 16, 17, 18, 20-23, 29 Subject to reserve requirements, 15 Domestic finance companies, 39 Turnover, 13 Federal Reserve Banks, 12 Deposits (See also specific types of deposits): Nonfinancial corporations, current, 38 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Automobiles: Federal Reserve Banks, 4, 12 Consumer instalment credit, 42, 43 Subject to reserve requirements, 15 Production, 48, 49 Discount rates at F.R. Banks (See Interest rates) Discounts and advances by F.R. Banks (See Loans) BANKERS balances, 16, 18, 20, 21, 22 Dividends, corporate, 38 (See also Foreigners) Banks for cooperatives, 35 EMPLOYMENT, 46, 47 Bonds (See also U.S. Govt, securities): Euro-dollars, 15, 27 New issues, 36, 37 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: Business activity, 46 Debt subject to statutory limitation and Business expenditures on new plant and types and ownership of gross debt, 32 equipment, 38 Receipts and outlays, 30, 31 Business loans (See Commercial and industrial loans) Treasury operating balance, 30 Federal Financing Bank, 35 CAPACITY utilization, 46, 47 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 Capital accounts: Federal home loan banks, 35 Banks, by classes, 16, 17, 19, 20 Federal Home Loan Mortgage Corp., 35, 40, 41 Federal Reserve Banks, 12 Federal Housing Administration, 35, 40, 41 Central banks, 68 Federal intermediate credit banks, 35 Certificates of deposit, 23, 27 Federal land banks, 35, 41 Commercial and industrial loans: Federal National Mortgage Assn., 35, 40, 41 Commercial banks, 15, 18, 23, 26 Federal Reserve Banks: Weekly reporting banks, 20, 21, 22, 23, 24 Condition statement, 12 Commercial banks: Discount rates (See Interest rates) Assets and liabilities, 3, 15-18, 20-23 U.S. Govt, securities held, 4, 12, 13, 32, 33 Business loans, 26 Federal Reserve credit, 4, 5, 12, 13 Commercial and industrial loans, 24 Federal Reserve notes, 12 Consumer loans held, by type, 42, 43 Federally sponsored credit agencies, 35 Loans sold outright, 23 Finance companies: Number, by classes, 16, 17, 19 Assets and liabilities, 39 Real estate mortgages held, by type of holder and Busines credit, 39 property, 41 Loans, 20, 21, 22, 42, 43 Commercial paper, 3, 24, 25, 27, 39 Paper, 25, 27 Condition statements (See Assets and liabilities) Financial institutions, loans to, 18, 20-23 Construction, 46, 50 Float, 4 Consumer instalment credit, 42, 43 Flow of funds, 44, 45 Consumer prices, 46, 51 Foreign: Consumption expenditures, 52, 53 Currency operations, 12 Corporations: Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Profits, taxes, and dividends, 38 Exchange rates, 68 Security issues, 36, 37, 65 Trade, 55 Cost of living (See Consumer prices) Foreigners: Credit unions, 29, 42, 43 Claims on, 60, 61, 66, 67 Currency and coin, 5, 16, 18 Liabilities to, 23, 56-59, 64-67 Currency in circulation, 4, 14 Customer credit, stock market, 28 GOLD: Certificates, 12 DEBITS to deposit accounts, 13 Stock, 4, 55 Debt (See specific types of debt or securities) Government National Mortgage Assn., 35, 40, 41 Demand deposits: Gross national product, 52, 53 Adjusted, commercial banks, 13, 15, 19 Banks, by classes, 16, 17, 19, 20-23 HOUSING, new and existing units, 50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bulletin □ August 1977 All INCOME, personal and national, 46, 52, 53 REAL estate loans: Industrial production, 46, 48 Banks, by classes, 18, 20-23, 29, 41 Instalment loans, 42, 43 Life insurance companies, 29 Insurance companies, 29, 32, 33, 41 Mortgage terms, yields, and activity, 3, 40 Insured commercial banks, 17, 18, 19 Type of holder and property mortgaged, 41 Interbank deposits, 16, 17, 20, 21, 22 Reserve position, basic, member banks, 6 Interest rates: Reserve requirements, member banks, 9 Bonds, 3 Reserves: Business loans of banks, 26 Commercial banks, 16, 17, 18, 20, 21, 22 Federal Reserve Banks, 3, 8 Federal Reserve Banks, 12 Foreign countries, 68 Member banks, 3, 4, 5, 15, 16, 18 Money and capital market rates, 3, 27 U.S. reserve assets, 55 Mortgages, 3, 40 Residential mortgage loans, 40 Prime rate, commercial banks, 26 Retail credit and retail sales, 42, 43, 46 Time and savings deposits, maximum rates, 10 International capital transactions of the United States, 56-67 SAVING: International organizations, 56-61, 65-67 Flow of funds, 44, 45 Inventories, 52 National income accounts, 53 Investment companies, issues and assets, 37 Savings and loan assns., 3, 10, 29, 33, 41, 44 Investments (See also specific types of investments): Savings deposits (See Time deposits) Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Savings institutions, selected assets, 29 Commercial banks, 3, 15, 16, 17, 18 Securities (See also U.S. Govt, securities): Federal Reserve Banks, 12, 13 Federal and Federally sponsored agencies, 35 Life insurance companies, 29 Foreign transactions, 65 Savings and loan assns., 29 New issues, 36, 37 Prices, 28 Special Drawing Rights, 4, 12, 54, 55 LABOR force, 47 State and local govts.: Life insurance companies (See Insurance companies) Deposits, 19, 20, 21, 22 Loans (See also specific types of loans): Holdings of U.S. Govt, securities, 32, 33 Banks, by classes, 16, 17, 18, 20-23, 29 New security issues, 36 Commercial banks, 3, 15-18, 20-23, 24, 26 Ownership of securities of, 18, 20, 21, 22, 29 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Yields of securities, 3 Insurance companies, 29, 41 State member banks, 17 Insured or guaranteed by U.S., 40, 41 Stock market, 28 Savings and loan assns., 29 Stocks (See also Securities): New issues, 36, 37 Prices, 28 MANUFACTURERS: Capacity utilization, 46, 47 TAX receipts, Federal, 31 Production, 46, 49 Time deposits, 3, 10, 15, 16, 17, 19, 20, 21, Margin requirements, 28 22, 23 Member banks: Trade, foreign, 55 Assets and liabilities, by classes, 16, 17, 18 Treasury currency, Treasury cash, 4 Borrowings at Federal Reserve Banks, 5, 12 Treasury deposits, 4, 12, 30 Number, by classes, 16, 17, 19 Treasury operating balance, 30 Reserve position, basic, 6 Reserve requirements, 9 UNEMPLOYMENT, 47 Reserves and related items, 3, 4, 5, 15 U.S. balance of payments, 54 Mining production, 49 U.S. Govt, balances: Mobile home shipments, 50 Commercial bank holdings, 19, 20, 21, 22 Monetary aggregates, 3, 15 Member bank holdings, 15 Money and capital market rates (See Interest rates) Treasury deposits at Reserve Banks, 4, 12, 30 Money stock measures and components, 3, 14 U.S. Govt, securities: Mortgages (See Real estate loans) Bank holdings, 16, 17, 18, 20, 21, 22, 29, Mutual funds (See Investment companies) 32, 33 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Dealer transactions, positions, and financing, 34 Federal Reserve Bank holdings, 4, 12, 13, 32, 33 NATIONAL banks, 17, 19 Foreign and international holdings and National defense outlays, 31 transactions, 12, 32, 64 National income, 52 Open market transactions, 11 Nonmember banks, 17, 18, 19 Outstanding, by type of security, 32, 33 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

A 78 The Federal Reserve System Boundaries of Federal R eserve D istricts and Their Branch Territories :r'“..V* - : ... >, yvy 4 ^ .■ y, jt " v ■ 11 ....i January 1977 Vrmtfyt&gafaCm 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