Federal Reserve Bulletin, 1977-11

NOVEMBER 1977 FEDERAL RESERVE BULLETIN Domestic Financial Developments in the Third Quarter of 1977 Changes in Time and Savings Deposits, April-July 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 11 • VOLUME 63 • NOVEMBER 1977 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE 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 Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 965 DOMESTIC FINANCIAL DEVELOP- ber 9, 1977. Chairman Burns pointed MENTS IN THE THIRD QUARTER OF out the target ranges for growth in the monetary aggregates that were 1977 decided at the FOMC meeting held The quarterly report to the Joint on October 18. The ranges for the Economic Committee of the U.S. period extending from the third quar- Congress, which highlights developter of this year to the third quarter ments in domestic financial markets of 1978 were: 4 to 6V2 per cent for during the summer and early fall, M-1, as previously specified at the points out that total borrowing by July meeting; 6Vi to 9 per cent for nonfinancial sectors in domestic M-2; and 8 to WV2 per cent for M-3. credit markets expanded substantially further during the quarter. 994 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE 973 CHANGES IN TIME AND SAVINGS DEPOSITS AT COMMERCIAL BANKS, At its meeting on September 20, APRIL-JULY 1977 1977, the Federal Open Market Committee agreed that annual rates of In the most recent survey period, growth in M-\ and M-2 over the total time and savings deposits at all September-October period within insured commercial banks increased ranges of 2 to 7 per cent and 4 to 8 nearly $14 billion, compared with less per cent, respectively, would be apthan $12 billion in the preceding 3 propriate. The Committee decided months, as a pick-up in time deposit that operations should be directed growth more than offset a slowdown initially toward a Federal funds rate in savings deposit growth. of 6V4 per cent and that the rate could be modified within a range of 6 to 6Vi 984 STATEMENTS TO CONGRESS per cent depending on growth rates of Henry C. Wallich, Member of the M-l and M-2 during the 2-month Board of Governors, discusses U.S. period. international transactions and the trade and current-account deficits of 1008 LAW DEPARTMENT the United States before the Committee on Ways and Means, U.S. House Amendments to Regulations Q and of Representatives, November 3, Z and various rules and orders. 1977. 1031 ANNOUNCEMENTS 986 Arthur F. Burns, Chairman of the Board of Governors, reports on the The Board of Governors approved condition of the national economy actions by the directors of the 12 and the course of monetary policy be- Federal Reserve Banks to increase fore the Committee on Banking, the discount rate from 53A per cent to Housing and Urban Affairs, Novem- 6 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A program of intensified super- One State bank was admitted to vision of bank holding companies will membership in the Federal Reserve become effective January 1, 1978. System. Regulation Q (Interest on Deposits) 1034 INDUSTRIAL PRODUCTION has been modified to provide consumers with more flexibility in han- Output increased an estimated 0.3 dling their time deposit accounts. per cent in October. (See Law Department.) A1 FINANCIAL AND BUSINESS STATISTICS Regulation M (Foreign Activities of National Banks) has been amended to A3 Domestic Financial Statistics reduce reserve requirements on the A46 Domestic Nonfinancial Statistics dollar deposits that foreign branches A54 International Statistics of U.S. banks use to lend funds to American borrowers. A69 GUIDE TO TABULAR PRESENTATION AND STATISTICAL RELEASES The Board of Governors has issued for comment proposals for revised A70 BOARD OF GOVERNORS AND STAFF financial reporting requirements to be implemented for the March 1978 in- All OPEN MARKET COMMITTEE AND come and condition reports. Uniform STAFF; FEDERAL ADVISORY COUNCIL guidelines for the enforcement of the Truth in Lending law and its regu- A73 FEDERAL RESERVE BANKS, latory rules (the Board's Regulation BRANCHES, AND OFFICES Z) have also been proposed for public comment by the five Federal agencies A74 FEDERAL RESERVE BOARD that regulate banks, thrift institutions, PUBLICATIONS and credit unions. Changes in Board staff. A76 INDEX TO STATISTICAL TABLES Publication of a revised edition of A78 MAP OF FEDERAL RESERVE SYSTEM the Federal Reserve Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments in the Third Quarter of 1977 This report, which was sent to the Joint Eco- and local government borrowing remained nomic Committee of the U.S. Congress, high- close to the record rate of the second quarter, lights the important developments in domestic and the Federal Government became a sizable financial markets during the summer and net borrower again, following seasonal debt early fall. paydowns in the second quarter. Despite some slowing in the pace of eco- Total borrowing by nonfinancial sectors in nomic expansion, M-1 accelerated to a seadomestic credit markets expanded substan- sonally adjusted annual rate of 9.3 per cent in tially further during the third quarter, as in- the third quarter from the already advanced creases in credit extended to households and to rate of 8.4 per cent in the preceding quarter. governments more than offset a small decline Growth of M-1 over the two quarters thus in funds raised by nonfinancial businesses. exceeded by a wide margin its expansion The slowing of business borrowing was con- earlier in the current economic upswing, when fined to short-term obligations, which had the rate of increase averaged around 5.5 per grown quite rapidly in the first two quarters of cent. Inflows to time and savings accounts at the year; businesses continued to make sub- banks and thrift institutions also were larger in stantial use of long-term credit markets. In- the third quarter than in the second. This stalment borrowing by households was main- acceleration occurred despite increases in tained near the high second-quarter pace, market interest rates that brought them above while the growth of mortgage indebtedness ceiling rates on savings accounts and shorteraccelerated further. In the public sector, State term time deposits. On average over the quar- Interest rates NOTES: Monthly averages except for F.R. discount rate and conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; Aaa utility bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's Investors Service and adjusted to Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 Federal Reserve Bulletin • November 1977 ter, M-2 grew at a 10.3 per cent seasonally restrain such borrowing, the discount rate was adjusted annual rate, compared with a 9.2 per increased from 5lA per cent to 53A per cent in cent rate in the second quarter, and M-3 rose late August and to 6 per cent near the end of at a 12.3 per cent annual rate—up from a 10 October, thereby bringing it into better alignper cent rate the preceding quarter. ment with other short-term interest rates. With growth in the key monetary aggregates Most short-term market interest rates rose exceeding the longer-run ranges adopted by about 1 percentage point from the end of June the Federal Open Market Committee, Federal through October. Despite strong credit de- Reserve operations gradually became less ac- mands in long-term markets, long-term rates commodative in providing reserves to the changed little on balance over the summer, banking system. As a consequence, the inter- although some upward rate pressures did est rate on Federal funds (overnight loans of emerge in October. The relative stability of immediately available bank funds) advanced long-term rates appeared to reflect continued from 5% per cent in late June to around 6V2 per strong flows of funds to investors with a cent by the middle of October. The rise in the preference for long-term instruments, over-all Federal funds rate was accompanied by a stability in the inflation rate, and the effects on substantial increase in member bank borrow- market expectations of the slower growth of ing from Federal Reserve Banks. In order to economic activity. Changes in selected monetary aggregates Per cent, seasonally adjusted annual rates 1976 1977 IItteemm 11997755 11997766 Q4 Ql Q2 Q3 Member bank reserves: Total -.2 1.0 4.4 2.7 3.0 9.2 Nonborrowed 3.2 1.2 4.8 2.6 1.9 3.6 Concepts of money:1 M-1 4.4 5.6 6.5 4.2 8.4 9.3 M-2 8.3 10.9 12.5 9.9 9.2 10.3 M-3 11.1 12.8 14.4 11.3 10.0 12.3 M-4 6.5 7.1 9.8 9.3 8.5 9.7 M-5 9.7 10.3 12.7 10.9 9.4 11.9 Time and savings deposits at commercial banks: Total (excluding large CD's) . 11.7 15.2 17.1 14.0 9.8 11.0 Savings 17.4 25.0 24.7 21.9 7.9 6.8 Other time 7.8 7.7 10.8 7.1 11.6 14.6 Thrift institutions2 15.8 15.8 17.3 13.4 11.1 15.3 MEMO (change in billions of dollars, seasonally adjusted): Large CD's -5.3 -19.2 -3.1 .3 -.3 .5 U.S. Govt, demand deposits at all member banks -.2 .3 .1 -.8 .4 .2 Nondeposit sources of funds3 -5.9 14.9 7.1 3.4 3.7 3.2 lM-1 is currency plus private demand deposits adjusted. cial banks from other than commercial banks in the form of M-2 is M-l plus bank time and savings deposits other than large Federal funds purchased, securities sold under agreements to CD's. repurchase, and other liabilities for borrowed money, plus gross M-3 is M-2 plus deposits at mutual savings banks and savings liabilities to own foreign branches (Euro-dollar borrowings), loans and loan associations and credit union shares. sold to affiliates, loan repurchase agreements, borrowings from M-4 is M-2 plus large negotiable CD's. Federal Reserve Banks, and other minor items. M-5 is M-3 plus large negotiable CD's. NOTE.—Changes are calculated from the average amounts 2Savings and loan associations, mutual savings banks, and outstanding in each quarter. Annual rates of change in reserve credit unions. measures have been adjusted for changes in reserve requirements. 3Nondeposit sources of funds include borrowings by commer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1977 967 MONETARY AGGREGATES ments and negotiable orders of withdrawal AND BANK CREDIT (NOW) accounts for consumers—as well as by increased utilization of other cash- The rapid rate of growth in M-1 during the management devices designed to economize second and third quarters apparently was aton demand deposit balances. The recent betributable in large measure to the growing havior of M-1 velocity may reflect a moderademand for transactions balances associated tion in the pace at which these means of with the expanding economy. Over the two reducing holdings of M-l are being adopted. quarters, the velocity of M-l—the ratio of The interest-bearing components of the gross national product to M-l—increased at broader measures of money, M-2 and M-3, about a 2 per cent annual rate, which is slightly increased more rapidly last quarter than in the below the trend rate of increase established by second quarter. At banks, inflows into savings this measure over the last 25 years. Moderate deposits slowed slightly, as the accounts of growth in M-1 velocity has prevailed recently businesses and governmental units either redespite an upturn in short-term market interest mained unchanged or declined somewhat with rates beginning in April, which ordinarily the advance in short-term interest rates. Indimight be expected to induce more intensive viduals and nonprofit organizations did not efforts to reduce non-interest-bearing demand appear to react so promptly to rising market balances. The recent behavior of M-l velocity yields, however, and their savings balances at also stands in marked contrast to its rapid banks recorded large gains over the quarter. growth earlier in the economic recovery. Growth in deposits at thrift institutions and The pick-up in velocity in 1975 and early in the time-deposit component of M-2 acceler- 1976 seems to have been caused partly ated in the third quarter, despite increases in by the introduction of important money market interest rates to levels that equaled or substitutes—for example, savings accounts exceeded regulatory ceiling rates for shortfor businesses and for State and local governterm time deposits. Rows into time deposits apparently were buoyed somewhat by the actions of a number of banks and thrift Changes in income velocity of M-l and M-2 institutions, which raised rates to ceiling Percentage rate of change levels, reinstituted the offering of long-term accounts that still enjoyed a rate advantage, and stepped up promotional campaigns to at- GNP tract time deposits. These efforts probably contributed to the large measure of success experienced by banks and thrift institutions in their attempt to retain funds held in the so- M 1 called "wild card" accounts that began maturing in July. Banks and thrift institutions had issued about $27 billion of these 4-year time deposits between July and October 1973, \ V 5 M-l / \ when there were no regulatory ceilings on offering rates for such instruments. Thrift institutions, with higher ceiling rates than commercial banks on all deposit maturities, en- _ GNP VV2 " M-2 joyed substantially larger inflows in the third 1 i quarter than they had earlier in the year. Large negotiable certificates of deposit at Data are at seasonally adjusted annual rates of growth. Money major banks registered a small increase in the stock data are quarterly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 Federal Reserve Bulletin • November 1977 Components of Major categories of the expansion of total loans outstanding conbank credit bank loans tinued at a rapid pace, surpassing the secondquarter rate by a large margin. Real estate and consumer loans accounted for more than half TREASURY SECURITIES BUSINESS the increase in loans held by banks in the third quarter. XL ,n n U n i l, fl REAL ESTATE 12 BUSINESS CREDIT in OTHER SECURITIES n n.fl~ Short-term credit demands of nonfinancial XL I—1 I • business firms continued to expand in the third quarter, but at a somewhat less rapid pace CONSUMER TOTAL LOANS 120 n n than earlier in the year. Business loans at n n.n 16 commercial banks increased at a 7.5 per cent annual rate compared with a rate of nearly 12 NONBANK FINANCIAL per cent in the preceding quarter, and outstanding nonfinancial commercial paper de- -a clined. Much of this latter decrease was attributable to redemptions of commercial paper Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 by public utilities that were marketing a heavy 76 1977 76 1977 volume of capital market issues. Business Seasonally adjusted. Total loans and business loans adjusted for transfer between banks and their holding companies, affiliates, borrowing from finance companies, however, subsidiaries, or foreign branches. reached a record level during the quarter, third quarter on a quarterly-average basis, reflecting in part the importance of their role in following a small decline in the second quar- financing a rising level of automobile inventer. Among managed liabilities, however, tories. banks continued to rely more heavily on nondeposit sources of funds than on large Business loans and short-term business credit CD's—particularly short-term borrowing from Seasonally adjusted changes at annual percentage rates business corporations and other nonbank lenders through purchases of Federal funds Business loans and sales of securities under repurchase CCoolluummnn 22 pplluuss agreements. The rise in borrowings of member PPeerriioodd Excluding nnoonnffiinnaanncciiaall Total1 bank holdings ccoommppaannyy banks from Reserve Banks during the quarter of bankers ccoommmmeerrcciiaall acceptances ppaappeerr22 accounted for about $500 million of the $3V£ billion quarterly-average increase in total bank (1) (2) (3) 1975—Q1 .... -5.2 -6.8 -5.0 borrowing from nondeposit sources. Q2 .... -8.7 -9.0 -11.2 Q3 .... -3.1 -3.5 -4.0 Total loans and investments at all commer- Q4 .... .7 -3.2 -6.5 cial banks expanded at a seasonally adjusted 1976—-Ql .... -6.7 -4.8 -2.9 annual rate of 8.5 per cent in the third quarter, Q2 .... 1.4 2.2 6.4 Q3 .... 3.9 1.1 -1.7 compared with the 11.2 per cent growth in the Q4 .... 12.0 8.2 9.6 second quarter. Banks reduced their holdings 1977—Ql .... 8.1 13.0 13.1 of U.S. Treasury securities by about $6 billion Q2 .... 11.9 12.5 15.9 Q3 .... 7.5 6.3 4.9 over the quarter. Acquisitions of tax-exempt and Government agency securities slowed 1At all commercial banks based on last-Wednesday-of-month data, adjusted for outstanding amounts of loans sold to from the high rate of the second quarter but affiliates. remained substantial. Despite a pronounced 2Short-term business credit is business loans excluding bank holdings of bankers acceptances plus nonfinancial company moderation in the growth of business loans, commercial 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, Q3 1977 969 Gross offerings of new security issues adding to liquid asset positions, as well as Billions of dollars, seasonally adjusted annual rates toward supporting sizable capital investment programs. In addition, finance companies con- 1976 1977 tinued to borrow heavily to help accommodate TTyyppee ooff iissssuuee Q3 Q4 Qi Q2 eQ3 strong demand for business and consumer credit, largely related to automobile financing. Corporate securities— Total 56 53 46 r46 54 Lower-rated firms—those with bond ratings Bonds 47 43 36 ^36 45 less than Aa—accounted for about 50 per cent Publicly offered 26 26 23 ^20 32 Privately placed 21 17 13 r16 13 of public bond offerings during the third quar- Stocks 9 10 10 no 9 ter, a greater proportion than during the first Foreign securities r12 9 4 13 13 half of this year. Private placements of bonds, State and local govt. a second major source of financing for lowerbonds 36 36 43 r53 47 rated companies, are estimated to have dee Estimated. clined slightly during the third quarter, alr Revised. though they were still substantial by historical The slower pace of business lending was standards. evident at both large and small banks. At the Long-term bond yields remained relatively large banks that report the industrial composi- constant during the third quarter, despite the tion of their business loans, the weakness was sharp rise in short-term rates and the large noticeable in loans to public utilities, durable volume of bond financing. The Federal Regoods manufacturers, and mining and other serve index of yields on new Aaa-rated extractive industries. Loans to manufacturers utility bonds declined from 8.07 per cent at the of nondurable goods, on the other hand, con- end of the second quarter to 7.97 per cent in tinued to expand steadily. With interest rates early September—near its 3-year low—before rising on money market sources of funds to backing up in late September to end the third banks and on alternative outlets for short-term quarter at 8.14 per cent. Heavy investment business borrowing, banks raised their prime demand from such traditional long-term rate a total of 1 percentage point between the lenders as life insurance companies and penend of June and the latter part of October. By sion funds helped to maintain the relative the end of October the prime rate was 7% per stability of bond yields, although long-term cent at most major banks. rates increased somewhat during late Septem- In contrast to the slowing of expansion in ber and in the initial weeks of the fourth short-term business credit, the volume of quarter. long-term financing by businesses increased Stock prices declined during the third quarduring the third quarter. Gross bond and ter, apparently reflecting investor uncertainty equity issuance by U.S. corporations rose to a regarding the prospects for the economy, corseasonally adjusted annual rate of $54 billion, porate profits, and the level of interest rates. from the $46 billion annual pace of the first The New York Stock Exchange composite half of 1977. The expanded activity was con- index fell 4.2 per cent, leaving it 8.8 per cent centrated in the long-term debt market in below its level at year-end 1976. The Ameriwhich offerings by manufacturing and other can Stock Exchange (AMEX) index registered industrial concerns rebounded from their rela- a more moderate decline, while the National tively moderate pace of the first half, boosting Association of Securities Dealers Automated total seasonally adjusted public bond issues Quotation (NASDAQ) over-the-counter index to their highest level in more than 2 years. increased slightly during the third quarter. Public utilities continued to issue a high vol- Both the AMEX and NASDAQ indexes— ume of bonds during the quarter, with a por- which reflect the stock-price performance of tion of the proceeds applied toward paying generally smaller corporations—remained down outstanding short-term borrowings and above their levels at the end of 1976. New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 Federal Reserve Bulletin • November 1977 corporate stock offerings continued at the vestment outlets by property-casualty insursame relatively slow pace as in recent quar- ance companies, commercial banks, and ters. Public utilities again accounted for the municipal bond funds helped the market abmajority of new issues, as they have since sorb the quarter's large volume of new issues mid-1976. with minimal pressure on rates, although municipal yields did back up along with other interest rates during early October. To finance an $11.5 billion Federal budget GOVERNMENT SECURITIES deficit (not seasonally adjusted), along with a In the municipal securities market, gross bond $5.3 billion deficit from off-budget programs, issuance by State and local governments pro- the Treasury borrowed $ 19.5 billion in the credit ceeded at a seasonally adjusted annual rate of markets during the third quarter of 1977. In the $45 billion during the third quarter, a volume previous quarter, seasonal tax receipts had exceeded only by the record second-quarter allowed a small reduction in total Federal debt pace. As during the first half of this year, outstanding. about one-fifth of the issues represented ad- The Treasury raised $12.6 billion net vance refundings of outstanding higher- through the sale of marketable obligations coupon obligations. Largely reflecting this in- during the July-September period. Increases creased advance refunding activity, State and in outstanding notes and bonds accounted for local bond issues through the first 9 months of the bulk of this total as the Treasury continued this year have already surpassed the annual its efforts to lengthen the maturity structure of total for 1976, which itself was a record. its debt. At the same time, however, $1.0 The continued large volume of advance re- billion was added to outstanding Treasury fundings can be attributed to the substantial bills—compared with a net paydown of more reduction in the cost of municipal bond financ- than $9.0 billion during the second quarter. A ing since late 1975. The Bond Buyer index of major source of demand for Treasury securilong-term, tax-exempt yields declined slightly ties was foreign official institutions, whose further during the third quarter of 1977, clos- holdings rose by nearly $6.0 billion during the ing the period at 5.51 per cent—near its lowest period. level in 3 years. Demand for tax-exempt in- The Treasury supplemented its marketable Federal Government borrowing and cash bala Quarterly totals, billions of dollars, not seasonally adjusted 1976 1977 IItteemm Ql Q2 Q3 Q4 Ql Q2 eQ} Treasury financing: Budget surplus, or deficit (-) --2222..88 2.0 -13.0 --2222..88 -18.7 8.6 -11.5 Off-budget deficit1 -3.7 -.6 -1.8 .4 -4.3 .1 -5.3 Net cash borrowings, or repayments (-) 24.1 9.4 18.0 17.4 17.6 -1.1 419.5 Other means of financing2 2.0 -4.0 -.7 -.8 2.7 -.4 .1 Change in cash balance -.4 6.8 2.6 -5.7 -2.6 7.2 42.8 Federally sponsored credit agencies, net cash borrowings3 .3 .5 1.7 .4 .7 r2.9 2.3 includes outlays of the Pension Benefit Guaranty Corporation, intermediate credit banks, banks for cooperatives, and Federal Postal Service Fund, Rural Electrification and Telephone Re- National Mortgage Association (including discount notes and volving Fund, Rural Telephone Bank, Housing for the Elderly securities guaranteed by the Government National Mortgage Asor Handicapped Fund, and Federal Financing Bank. All data sociation). have been adjusted to reflect the return of the Export-Import includes $2.5 billion of borrowing from the Federal Reserve Bank to the unified budget. on September 30, which was repaid October 4 after the new 2Checks issued less checks paid, accrued items, and other debt ceiling bill became law. transactions. includes debt of the Federal Home Loan Mortgage Corpora- Estimated. tion, Federal home loan banks, Federal land banks, Federal T*evised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1977 971 borrowings in the third quarter with $6.9 bil- Deposits Savings and loans lion raised through nonmarketable obligations, Annual rate of change, per a $2.8 billion of which was provided by State and local governments investing the proceeds 16 from advance refunding operations. The $6.9 billion total also included a special $2.5 billion nonmarketable security issued to the Federal 8 Reserve System at the close of September in order to build up the Treasury's deposit balances in advance of a possible expiration of its 0 Q3 Q4 Q1 Q2 Q 3 authority to borrow. The obligation was repaid '76 1977 a few days into the fourth quarter after a new Seasonally adjusted. Quarterly averages at annual rates. debt ceiling bill became law. from depressed 1975-76 volumes, remained well below the record levels of 1972-74. MORTGAGE AND Savings and loan associations continued as CONSUMER CREDIT the predominant suppliers of mortgage funds during the third quarter, expanding their Net mortgage lending during the third quarter portfolios at a record seasonally adjusted anrose to a seasonally adjusted annual rate nual rate of $62 billion. Substantial deposit of $134 billion, exceeding the second quarinflows during the quarter enabled these inter's record $127 billion pace. Lending on stitutions to support this high level of lending without significantly straining their liquidity. Net change in mortgage debt outstanding Despite rising short-term interest rates in the Billions of dollars, seasonally adjusted annual rates open market, deposits at savings and loans grew at a 16.8 per cent seasonally adjusted 1976 1977 annual rate in the third quarter, well above the CChhaannggee—— rQ3 rQ4 rQl 1 rQ2 /Q3 growth experienced during the first half of By type of debt: 1977. Increases in borrowings by savings and Total ' 94 97 102 127 134 Residential 74 77 78 96 100 loans from Federal home loan banks were Other1 20 20 24 31 34 relatively moderate in light of typical seasonal By type of holder: patterns, while liquid asset holdings declined Commercial banks 15 14 17 23 28 Savings and loans 47 52 48 59 62 only slightly as a percentage of total assets. Mutual savings banks ... 4 5 4 6 8 Life insurance companies 2 3 2 5 55"" FNMA and GNMA ... -1 -5 (3) 7 -4 Net change in Other2 27 28 31 27 35 consumer instalment debt outstanding 'Includes commercial and other nonresidential as well as farm properties. Billions of dollars, seasonally adjusted annual rates includes mortgage pools backing securities guaranteed by the Government National Mortgage Association, Federal Home Loan 1976 1977 Mortgage Corporation, or Farmers Home Administration, some CChhaannggee—— of which may have been purchased by the institutions shown Q3 Q4 Q1 Q2 eQ3 separately. 3Less than $500 million. By type of debt: 'Partially estimated. Total 19 21 27 30 29 rRevised. Automobile 9 9 12 13 12 Other 10 12 15 17 17 both residential and nonresidential properties By type of holder: Commercial banks 10 12 12 15 14 reached record rates, with strength in the Finance companies 2 3 6 4 5 residential sector concentrated in the 1- to Credit unions 5 2 7 7 4 Retail firms 12 12 3 4-family area. Multifamily residential mort- Other 12 12 2 gage lending, though somewhat recovered eEsti mated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 Federal Reserve Bulletin • November 1977 Among other major lenders, commercial and loan associations during the third quarter banks supplied about 20 per cent of total net contributed to the stability in home mortgage mortgage funds during the third quarter, in- interest rates. Average rates on conventional creasing their holdings at a record seasonally new-home mortgages remained at 9.00 per adjusted annual rate of $28 billion. Issues of cent at the end of September, unchanged from mortgage-backed, pass-through securities— the end-of-June level. primarily obligations backed by Federally un- Consumer instalment credit outstanding, derwritten mortgages and guaranteed by the the other major area of household debt, is Government National Mortgage Association— estimated to have expanded at a seasonally expanded as well. In addition, a California- adjusted annual rate of $29 billion during the based commercial bank successfully marketed third quarter, down only slightly from the the first public issue of pass-through securities second quarter's record $30 billion pace. Aubacked by a pool of mortgages not under- tomobile credit continued to account for more written by the Federal Government. than 40 per cent of the total increase, as new The strength of deposit flows into savings car sales continued to be strong. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

973 Changes in Time and Savings Deposits at Commercial Banks, April-July 1977 Inflows of time and savings deposits to insured large-denomination (greater than $100,000) commercial banks accelerated over the time deposits since late 1974; such deposits 3-month period ending July 27, 1977, with a registered a gain of more than $6 billion in the pick-up in time deposit growth more than interval from April to July, after having fallen offsetting a slowdown in growth of savings by about $3 billion between January and April deposits. Total time and savings deposits in- and by about $40 billion during the preceding creased by nearly $14 billion, or about 2% per nine quarters. Interest-bearing, small-denomicent at a quarterly rate, not seasonally nation (less than $100,000) time deposits grew adjusted—up from 2lA per cent in the preced- by $4l/2 billion as compared with the $6 billion ing 3 months.1 increase in the previous quarter. Savings inflows moderated in the April-July interval as short-term market rates in late May rose above the regulatory ceilings on commer- SAVINGS DEPOSITS cial bank passbook savings accounts for the first time since September 1976. Savings de- As the yield advantage of savings accounts posits rose by a modest $2Vi billion compared over competing short-term market instruwith the $8 billion rise in the previous 3-month ments, such as Treasury bills, narrowed and interval. In contrast, growth in interest- then vanished in late May, inflows to savings bearing time deposits advanced more rapidly, accounts slowed to about \lA per cent at a rising by $1(M billion, up from the $3 billion quarterly rate, not seasonally adjusted—the increase in such deposits in each of the two smallest rise since the October 1974 survey. previous survey quarters. The rapid expansion Individuals and nonprofit organizations mainly resulted from the first increase in showed substantial interest sensitivity as they limited the expansion of their holdings of savings accounts to less than $3 billion after NOTE.—Rebekah F. Wright of the Board's Division of having increased such holdings by $6V£ billion Research and Statistics prepared this article. Purveys of time and savings deposits (STSD) at all in the previous survey quarter. Similarly, savmember banks were conducted by the Board of Gover- ings inflows to business accounts slowed to nors in late 1965, in early 1966, and quarterly in 1967. In $600 million after having risen by $1 billion in January and July 1967 the surveys also included data for all insured nonmember banks collected by the Federal the preceding 3-month period. Domestic Deposit Insurance Corporation (FDIC). Since the begin- governmental units reacted most promptly to ning of 1968 the Board of Governors and the FDIC have the rise in competing rates of interest, reducconducted joint quarterly surveys to provide estimates for all insured commercial banks based on a probability ing their holdings of savings balances by $800 sample of banks. The results of all earlier surveys have million. appeared in previous BULLETINS from 1966 to 1977, the The number of commercial banks paying the most recent being September 1977. The current sample—designed to provide estimates of ceiling rate of interest on each of the the composition of deposits—includes about 560 insured ownership categories of savings deposits rose commercial banks. For details of the statistical methodolslightly between April and July, a reversal of ogy, see "Survey of Time and Savings Deposits, July 1976" in the BULLETIN for December 1976. the rate cutting evident in late 1976 and early Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 Federal Reserve Bulletin • November 1977 1. Types of time and savings deposits held by insured commercial banks on survey dates, January 26, April 27, and July 27, 1977 Deposits Number of issuing banks TTyyppee ooff ddeeppoossiitt In millions of dollars Percentage change Jan. 26 Apr. 27 July 27 Jan. 26 Apr. 27 July 27 Jan. 26- Apr. 27- Apr. 27 July 27 Total time and savings deposits 14,376 14,397 14,365 492,813 504,299 518,117 2.3 2.7 14,376 14,397 14,365 204,603 212,860 215,420 4.0 1.2 Issued to: Individuals and nonprofit organizations... 14,373 14,397 14,365 189,829 196,394 199,183 3.5 1.4 Partnerships and corporations operated for profit (other than commercial banks). 8,497 9,003 8,948 8,869 9,880 10.482 11.4 6.1 Domestic governmental units 6,965 6,639 6,936 5,575 6,444 5,625 15.6 -12.7 All other 714 731 670 329 143 131 -56.7 -8.4 Interest-bearing time deposits in denominations of less than $100,000 14,072 14,103 14,131 157,643 163,602 168,146 3.8 2.8 Issued to: Domestic governmental units 10,751 10,531 10,675 4,309 4,789 4,553 11.1 -4.9 Accounts with original maturity of: 30 up to 90 days 4,298 4,360 4,671 931 945 1,038 1.4 9.9 90 up to 180 days 8,036 8,364 8,185 1,458 1,679 1,601 15.2 -4.6 180 days up to 1 year 4,251 4,104 3,670 651 847 696 30.2 -17.9 1 year and over 8,258 8,152 8,288 1,269 1,317 1,218 3.8 -7.5 Other than domestic governmental units... . 14,043 14,074 14,131 153,334 158,814 163,593 3.6 3.0 Accounts with original maturity of: 30 up to 90 days 5,686 5,916 5,793 6,980 7,220 7,690 3.4 6.5 90 up to 180 days 11,091 11,784 11,458 31,105 31,747 31,814 2. 1 .2 180 days up to 1 year 8,540 8,519 8,134 4.535 4,095 4,697 -9.7 14.7 1 up to 2 Vi years 13,622 13,720 13,662 33,979 34,077 34,243 .3 .5 2Vi up to 4 years 12,132 12,452 12,614 17,646 18,119 18,999 2.7 4.9 12,071 12,394 12,121 48,047 50,962 51.877 6. 1 1.8 6 years and over 8,526 9; 082 9,414 11,043 12.594 14,274 14.0 13.3 Interest-bearing time deposits in denominations of $100,000 or more 10,980 11,242 11,358 124,719 121,699 127,826 -2.4 5.0 Non-interest-bearing time deposits 1,651 1,665 1,654 4,867 4.729 4,774 -2.8 1.0 In denominations of: Less than $100,000 1,423 1,287 1,321 1,680 1,358 1.387 -19.2 2.1 $100,000 or more 672 769 736 3,186 3,371 3,387 5.8 .5 Club accounts (Christmas savings, vacation, or similar club accounts) 8,798 8,754 9,053 982 1,409 1,952 43.5 38.5 NOTE.—All banks that had either discontinued offering or never had discontinued issuing certain deposit types are included in the offered certain deposit types as of the survey date are not counted as amounts outstanding. issuing banks. However, small amounts of deposits held at banks that Figures may not add to totals because of rounding. 1977. As a result of the general movement to of nongovernmental entities, which continued, higher rates, the weighted-average rate paid on as in recent quarters, to lengthen the maturity all new issues of savings deposits increased structure of their holdings of these deposits. slightly, from 4.90 to 4.91 in the survey quarter. Holdings of small time deposits by domestic governmental units, about three-quarters of which have maturities of less than 1 year, declined in all except the shortest maturity cate- SMALL-DENOMINATION gory. The growth in time deposits maturing in TIME DEPOSITS less than 90 days reflected shifts from lower- In the interval from April to July, ceiling rates yielding savings accounts and temporary inon most intermediate- and long-term, small- vestments in anticipation of rising market denomination time deposits remained sub- rates. stantially above yields on alternative money In an apparent effort to retain funds held in market instruments of comparable maturity. 4'wild card" time accounts2 that began matur- Consequently, growth in small-denomination time deposits remained moderately strong, ad- 2Between July and October 1973, interest rate ceilings vancing by nearly 3 per cent to an outstanding were temporarily suspended on time deposits with maturities greater than 4 years and with denominations of level of $168 billion. All of the growth in this $1,000 to $100,000. During this period, banks issued an deposit category was concentrated in holdings estimated $9 billion of such deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 975 2. Small-denomination time and savings deposits held by insured commercial banks on July 27 compared with April 27, 1977, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks All banks Deposit group, and distribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Savings deposits Individuals and nonprofit organizations Issuing banks 14,365 14,397 13,389 13,420 976 977 199,183 196,394 75,239 73,659 123,943 122,735 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less 4.4 3.6 4.3 3.4 4.7 6.0 3.5 3.6 3.0 2.9 3.8 4.0 4.01-4.50 10.7 11.7 11.0 11.9 7.5 9.2 10.9 11.4 10.5 10.1 11.1 12.2 4.51-5.00 84.9 84.6 84.7 84.6 87.8 84.7 85.6 84.9 86.6 86.9 85.1 83.7 Paying ceiling rate1... 84.9 84.4 84.7 84.4 87.7 84.3 85.6 84.1 86.6 86 6 85.0 82.5 Partnerships and corporations Issuing banks 8,948 9,003 7,986 8,040 962 963 10,481 9,880 3,301 2,977 7,181 6,902 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less 1.2 1.3 1.1 1.3 1.2 1.2 .8 .9 1.0 1.2 .8 .7 4.01-4.50 8. 1 9.2 8.2 9.0 7. 1 11.5 8.1 12.3 6.7 8.9 8.7 13.7 4.51-5.00 90.7 89.4 90.6 89.7 91.6 87.3 91.1 86.9 92.4 89.9 90.5 85.6 Paying ceiling rate1... 90.4 88.8 90.3 89.1 91.3 86.5 90.3 84.4 92.3 89.8 89.4 82.1 Domestic governmental units Issuing banks 6,936 6,639 6,302 6,019 633 620 5,625 6,444 2,778 2,565 2,847 3,879 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less 2.8 3.0 3.0 3.2 1.3 1.3 1.3 .8 1.6 1 1.1 1.3 4.01-4.50 9.9 10.6 10.0 10.1 9.5 15.4 8.0 12.7 8.2 8*. 8 7.8 15.3 4.51-5.00 87.3 86.4 87.1 86.7 89.3 83.3 90.7 86.4 90.2 91.1 91.1 83.4 Paying ceiling rate1... 86.6 85.8 86.6 86.2 87.1 82.3 89.9 85.4 90.1 91.0 89.7 81.8 All other Issuing banks 670 731 583 642 87 89 131 140 34 20 96 121 Di 4 s 4 t . . r 0 0 i 0 1 b u o 4 t r . i 5 o l 0 e n s , s total. . . 1 ( 0 2 0 ) .4 1 ( 0 12 0 1 ) .9 1 ( ( 0 2 20 ) ) 1 ( 0 12 0 3 ) .1 1 ( 0 23 0 ) .2 1 ( 0 23 0 ) .2 1 ( 0 2 0 ) .8 1 ( 0 2 0 1 ) .1 1 ( ( 02 2 0 ) ) 1 ( 0 23 0 ) .5 1 ( 0 2 0 1 ) .0 1 ( 0 2 0 ) .7 4.51-5.00 99.6 88.1 100.0 86.9 96.8 96.8 99.2 98.9 100.0 96.5 99.0 99.3 Paying ceiling rate1. .. 99.6 87.9 100.0 86.9 96.8 95.6 99.2 97.8 100.0 96.5 99.0 98.0 Time deposits in denominations of less than $100,000 Domestic governmental units: Maturing in— 30 up to 90 days Issuing banks 4,671 4,360 4,037 3,706 633 665544 1,038 945 688 600 350 345 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 1.7 7.7 .9 6.6 6.5 14.1 6.5 6.6 8.1 2.4 3.6 13.9 4.51-5.00 71.7 73.9 71.5 73.2 72.9 78.4 58.6 67.9 63.3 74.2 49.4 57.0 5.01-5.50 17.7 13.4 17.5 14.7 19.1 6.1 26.1 14.8 17.0 8.8 43.9 25.3 Paying 5.5 c 1 ei - l 7 in .7 g 5 rate1... (28 ) .9 (24 ) .9 ( 120 ) .1 (25 ) .6 (21 ) .5 (21 ) .4 (28 ) .8 ( 120 ) .7 ( 121 ) .7 ( 124 ) .6 (23 ) .1 (23 ) .8 90 up I s t s o u in 18 g 0 b d a a n y k s s 8,185 8,364 7,458 7,620 727 744 1,598 1,678 1,194 1,197 405 481 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4 50 or less .4 2.4 .3 2.1 2.1 5.8 .5 2.3 .4 2.2 .8 2.5 4 51-5 00 12.8 19.1 13.0 18.7 11.4 23.3 12.2 15.4 13.9 13.8 7.1 19.6 5 01-5 50 82.2 74.6 82.1 75.1 83.8 69.2 84.7 79.3 82.7 80.7 90.6 75.6 Paying 5 5 c 1 ei - l 7 in 7 g 5 rate1... (24 ) .5 (23 ) .9 (24 ) .7 (24 ) .2 (22 ) .7 (21 ) .7 (22 ) .6 (23 ) .0 (23 ) .0 (23 ) .3 (21 ) .5 (22 ) .3 180 days up to 1 year Issuing banks 3,670 4,104 3,154 3,536 516 568 694 847 444 506 250 340 Dis 4 t . r 5 i 0 b u or ti o le n s , s total. . . 100 .6 10 2 0 .4 1 ( 020 ) 10 2 0 .1 10 4 0 . 1 10 4 0 . 2 100 .3 10 6 0 .8 1 ( 020 ) 10 1 0 0 .8 100 .9 100 ..88 4 51-5 00 10.1 14.2 10.1 12.9 10.0 22.0 24.2 37.7 16.2 13.9 38.4 7733..11 5 01-5.50 73.3 72.0 73.8 72.9 70.7 66.5 50.2 37.9 49.1 48.6 52. 1 22.1 Paying 5.5 c 1 ei - l 7 in .7 g 5 rate1... ( 126 ) .0 ( 121 ) .5 ( 126 ) .2 ( 122 ) .1 ( 125 ) .2 (27 ) .2 ( 225 ) .3 ( 127 ) .6 ( 324 ) .7 ( 226 ) .7 (28 ) .7 (23 ) .9 1 year and over Issuing banks 8,288 8,152 7,535 7,414 753 738 1,214 1,315 905 1,038 308 277 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 5 00 or less 3.9 3.3 3.6 2.8 7.3 8.6 2.1 4.2 1.5 .9 3.8 16.7 5 01 5 50 6.5 7.9 6.3 7.0 8.2 17.4 8.4 12.6 3.7 5.5 22.0 39.2 5.51-6.00 70.0 71.1 70.4 72.7 66.8 55.5 71.7 70.2 74.1 78.9 64.5 37.7 Paying 6.0 c 1 ei - l 7 in .7 g 5 rate1... ( 129 ) .6 ( 127 ) .7 ( 1 2 9 ) .8 ( 127 ) .6 17 . . 4 7 18 . . 4 6 17 . . 1 9 12 . . 1 9 ( 220 ) .6 ( 124 ) .7 9. . 7 3 6 . . 3 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 Federal Reserve Bulletin • November 1977 TABLE 2—Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks All banks Deposit group, and distribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 July 27 Apr. 27 Amount of deposits (in millions of dollars). Number of banks, or percentage distribution or percentage distribution TTiimmee ddeeppoossiittss iinn ddeennoommiinnaa-tions of less than $100,000 (cont.) Other than domestic governmental units: Maturing in— 30 up to 90 days Issuing banks 5,793 5,916 4,926 5,067 866 849 7,669 7,199 1,568 1,415 6,102 5,784 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 5.5 3.7 5.5 2.0 5.6 13.9 1.6 12.4 .3 6.5 1.9 13.8 Paying 4.5 c 1 ei - l 5 in .0 g 0 rate1... 9 9 4 4 . . 5 1 9 9 6 2 . . 3 8 9 9 4 4 . . 5 5 9 95 8 . . 8 0 9 92 4 . . 0 4 7 8 4 6. . 1 8 9 9 8 7 . . 4 6 8 80 7 . . 9 6 9 9 9 9 . . 7 7 9 8 3 8 . . 5 9 9 9 8 7 . . 1 1 7 8 8 6 . . 9 2 90 up to 180 days Issuing banks 11,457 11,784 10,501 10,824 956 960 31,802 31,730 13,074 12,764 18,728 18,967 Di 4 st . r 5 i 0 b u or ti o le n s , s total... 100 .9 100 .6 100 .9 100 .5 100 .2 100 1 .0 1 ( 020 ) 100 . 1 1 ( 020 ) 110000 1 ( 020 ) 100 . 1 4.51-5.00 9.0 13.2 9.4 13.1 4.4 13.8 7.2 15.7 8.0 8*. 8 6.6 20.3 Paying 5.0 ce 1 i - l 5 in .5 g 0 rate1... 9 8 0 7 . . 1 5 8 8 5 6 . . 2 2 8 8 7 9 . . 5 7 8 8 5 6 . . 7 3 9 87 5 . . 9 4 7 8 9 5 . . 7 2 9 8 2 6 . . 8 3 8 81 4 . . 1 2 9 90 2 . . 8 0 9 9 1 0 . . 1 2 9 8 3 3 . . 4 2 7 7 9 5 . . 5 0 180 days up to 1 year Issuing banks 8,134 8,519 7,287 7,667 847 852 4,664 4,060 2,948 2,442 1,716 1,618 Di 4 st . r 5 i 0 b u o t r i o le n s , s total. .. 100 .5 100 1 .1 100 .4 100 .9 100 1 .7 10 2 0 .7 100 .1 100 .6 1 ( 020 ) 100 .4 100 .3 100 1 .0 4.51-5.00 7.0 10.3 7.3 10.1 4.0 12.1 2.7 10.2 2.7 7.8 2.6 13.8 5.01-5.50 92.5 88.7 92.3 89.1 94.2 85.2 97.2 89.2 97.3 91.9 97.2 85.2 Paying ceiling rate1... 91.2 87.0 91.5 88.1 89.0 76.9 96.1 85.0 96.9 91.8 94.7 74.7 1 up to 2Vi years Issuing banks 13,662 13,720 12,698 12,757 964 964 34,242 33,966 21,342 21,288 12,900 12,678 Dis 5 t . r 0 i 0 b u o t r i o le n s , s total. . . 100 .7 100 .7 100 .8 100 .7 100 .2 100 .4 100 . i 100 .2 100 .2 100 .1 1 ( 020 ) 100 .4 5.01-5.50 2.9 4.0 2.9 3.7 2.6 7.9 1.9 4.9 1.6 2.9 2.4 8.2 5.51-6.00 96.4 95.3 96.3 95.6 97.2 91.6 98.0 94.9 98.2 97.0 97.5 91.4 Paying ceiling rate*... 95.7 91.9 95.9 92.3 93.3 86.3 95.8 92.0 97.6 94.7 92.7 87.4 2Vi up to 4 years Issuing banks 12,605 12,452 11,669 11,516 936 936 18,921 18,009 10,963 10,578 7,959 7,431 Distribution, total.. . 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less 2.9 5.4 2.7 5.0 5.5 10.6 2.2 9.0 .4 6.3 4.5 12.9 Paying 6.0 ce 1 i - l 6 in .5 g 0 rate1... 9 9 4 7. . 1 6 9 9 2 4 . . 6 6 9 9 4 7 . . 9 3 9 9 3 5 . . 2 0 9 9 1 4. . 5 4 8 8 4 9 . . 8 4 9 9 7 5 . . 8 1 9 89 1 . . 5 0 9 98 9 . . 5 6 9 9 3 3 . . 7 0 9 9 5 0 . . 5 3 8 8 4 7. . 1 6 4 up to 6 years Issuing banks 12,121 12,394 11,187 11,469 934 925 51,133 50,099 26,389 25,503 24,744 24,596 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 110000 6.50 or less 2.0 4.3 1.6 3.7 7.3 11.2 4.5 7.9 .4 5.0 8.9 1111..11 6.51-7.00 18.0 18.0 18.5 18.2 12.5 15.9 15.6 16.9 18.7 16.6 12.2 17.1 Paying 7.0 c 1 ei - l 7 in .2 g 5 rate1... 8 8 0 0 . . 0 0 7 7 7 7. . 7 6 8 8 0 0 . . 0 0 7 7 8 7 . . 1 9 7 8 9 0 . . 9 2 7 7 2 2. . 9 9 7 7 9 9 . . 9 9 7 7 4 5 . . 9 2 8 8 0 0. . 9 9 7 7 7 8 . . 9 4 7 7 8 8 . . 9 8 7 7 1 1. . 9 9 6 years and over Issuing banks 9,405 9,082 8,593 8,268 811 814 13,827 12,438 6,144 5,361 7,683 7,077 Dis 5 t . r 0 i 0 b u o t r i o le n s , s total. . . 100 .7 100 .6 100 .7 100 .5 100 .7 100 .8 1 ( 020 ) 100 . 1 1 ( 020 ) 1 ( 020 ) 1 ( 020 ) 100 .2 5.01-7.25 5.4 12.0 4.8 11.1 11.6 21.4 7.5 16.3 2.6 9.0 11.4 21.9 7.26-7.50 93.9 87.4 94.5 88.4 87.7 77.8 92.5 83.6 97.4 91.0 88.6 78.0 Paying ceiling rate*... 93.9 87.4 94.5 88.4 87.7 77.6 92.5 83.6 97.4 91.0 88.6 78.0 Club accounts Issuing banks 9,053 8,754 8,328 8,016 725 738 1,836 1,327 763 548 1,073 779 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 0.00 48.5 48.5 50.6 50.4 24.2 27.1 20.0 20.0 29.4 29.0 13.3 13.6 0.01-4.00 16.9 15.3 16.9 15.4 16.5 14.2 18.2 15.6 23.8 19.9 14.2 12.6 4.01-4.50 7.4 8.5 7.3 8.6 9.2 8.1 14.0 14.1 14.5 14.5 13.7 13.9 4.51-5.50 27.2 27.7 25.2 25.6 50.2 50.5 47.8 50.3 32.3 36.7 58.8 59.9 1 See p. A10 for maximum interest rates payable on time and held at banks that had discontinued issuing deposits are not included savings deposits at the time of each survey. The ceiling rate is included in the amounts outstanding. Therefore, the deposit amounts shown in the rate interval in the line above. in Table 1 may exceed the deposit amounts shown in this table. 2 Less than .05 per cent. The most common interest rate for each instrument refers to the stated rate per annum (before compounding) that banks paid on the NOTE.—All banks that either had discontinued offering or had largest dollar volume of deposit inflows during the 2-week period never offered particular deposit types as of the survey date are not immediately preceding the survey date. counted as issuing banks. Moreover, the small amounts of deposits Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 977 3. Average of most common interest rates paid on various categories of time and savings deposits at insured commercial banks on July 27, 1977 Bank size (total deposits in millions of dollars) Type of deposit All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over Savings and small-denomination time deposits 5.54 5.73 5.70 5.60 5.51 5.41 5.38 Savings, total 4.91 4.94 4.90 4.92 4.93 4.82 4.92 Individuals and nonprofit organizations 4.91 4.94 4.90 4.92 4.93 4.82 4.92 Partnerships and corporations 4.95 4.97 4.93 4.97 4.97 4.90 4.94 Domestic governmental units 4.94 4.94 4.95 4.94 4.98 4.86 4.95 All other 4.98 5.00 5.00 5.00 4.95 5.00 5.00 Time deposits in denominations of less than $100,000, total. . 6.35 6.32 6.48 6.39 6.34 6.31 6.26 Domestic governmental units, total 5.53 5.60 5.58 5.40 5.50 5.44 5.37 Maturing in— 30 up to 90 days 5.14 5.28 5.08 4.84 5.25 5.11 5.06 90 up to 180 days 5.43 5.47 5.33 5.37 5.47 5.47 5.37 180 days up to 1 year 5.44 5.50 5.59 5.32 5.25 5.56 5.45 1 year and over 6.05 6.11 6.03 6.29 5.89 6.07 5.89 Other than domestic governmental units, total 6.38 6.37 6.51 6.41 6.36 6.33 6.27 Maturing in— 30 up to 90 days 4.99 5.00 5.00 5.00 5.00 4.96 5.00 90 up to 180 days 5.45 5.48 5.43 5.46 5.49 5.46 5.41 180 days up to 1 year 5.48 5.49 5.48 5.48 5.49 5.45 5.46 1 up to 2 Vi years 5.98 5.98 6.00 5.99 5.99 5.95 5.97 2 Vi up to 4 years 6.48 6.50 6.50 6.49 6.48 6.46 6.46 4 up to 6 years 7. 17 7.19 7.19 7.22 7. 15 7.16 7. 12 Over 6 years 7.45 7.49 7.50 7.48 7.45 7.45 7.39 MEMO: Club accountsI 3.65 2.39 3.08 3.54 3.90 3.69 4.39 i Club accounts are excluded from all of the above categories. amount of that type of deposit outstanding. All banks that had either discontinued offering or never offered particular deposit types as of the NOTE.—The average rates were calculated by weighting the most survey date were excluded from the calculations for those specific common rate reported on each type of deposit at each bank by the deposit types. ing in July, some banks raised their offering required to pledge securities against governrates on all maturity categories of small- mental deposits. denomination time deposits. Specifically, the proportion of banks paying the maximum allowable rate of IV2 per cent on those deposits OTHER TIME DEPOSITS with original maturities of 6 years or more increased by a substantial 6 percentage points In the face of increasing loan demand and to 94 per cent, while the proportion paying the weakening savings deposit inflows, commermaximum of llA per cent for deposits maturing cial banks increased their outstanding volume in 4 to 6 years rose to 80 per cent from just of interest-bearing, large-denomination time under 78 per cent. Some banks had cut interest deposits for the first time since early 1975, rates on long-maturity time deposits in late from a level of $122 billion to $128 billion. 1976 and early 1977 when market rates were Data from weekly reporting banks (not shown falling and inflows were strong. in tables) indicate that growth of large negoti- The average rate paid on all new issues of able certificates of deposit at large banks regisinterest-bearing, small-denomination time de- tered $3.8 billion, or almost two-thirds of the posits, weighted by the amount of outstanding total large-denomination time deposit expandeposits, rose moderately in the 3-month sion. The level of non-interest-bearing time period ending July 1977. Average rates paid on deposits—principally escrow accounts and both governmental and nongovernmental ac- compensating balances held against loans— counts increased by similar amounts, from remained about unchanged at nearly $5 billion. 5.47 to 5.53 per cent on the former and from Club accounts increased seasonally by $550 6.32 to 6.38 per cent on the latter. The lower million to a level of $2 billion at the end of July. rates paid on issues to governmental entities More than half of the issuing banks, holding reflect the shorter maturity structure of these about one-fifth of such deposits, paid no deposits as well as the fact that banks are interest on club accounts. D Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 Federal Reserve Bulletin • November 1977 APPENDIX TABLES Al. Savings deposits issued to individuals and nonprofit organizations Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling GGrroouupp Total rate i Total rate 1 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 (5.00 or to to per or to to per less 4.50 5.00 cent) less 4.50 5.00 cent) Number of banks Millions of dollars 14,365 626 1,544 12,196 12,195 199,183 6,939 21,646 170,597 170,433 Size of bank (total deposits in millions of dollars): Less than 20 8,575 475 920 7,180 7,180 20,481 523 1,399 18,559 18,559 20-50 3,638 38 463 3,137 3,137 31,359 591 4,980 25,788 25,788 50 100 1,176 67 88 1,021 1,021 23,399 1,134 1,484 20,781 20,781 100-500 784 33 44 707 707 44,466 1,652 2,892 39,922 39,922 500 1,000 102 9 16 77 77 18,920 1,912 3,130 13,878 13,878 1,000 and over 90 4 13 73 72 60,558 1,128 7,761 51,670 51,505 A2. Savings deposits issued to partnerships and corporations operated for profit Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) Paying (per cent) Paying ceiling ceiling Group Total rate i Total rate i 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 (5.00 or to to per or to to per less 4.50 5.00 cent) less 4.50 5.00 cent) Number of banks Millions of dollars All banks 8,948 103 726 8,118 8,086 10,481 87 845 9,550 9,468 Size of bank (total deposits in millions of dollars): Less than 20 3,745 179 3,566 3,537 889 49 840 837 20-50 3,153 387 2,690 2,690 1,247 27 121 1,099 1,099 50-100 1,088 92 981 981 1,164 5 50 1,110 1,110 5 1 1 0 , 0 0 0 0 0 - - 0 1 5 , 0 a 0 0 n 0 d 0 over 7 1 7 9 0 0 0 2 3 1 1 9 8 2 72 8 7 3 2 7 72 7 7 3 9 6 2 3 1 , , , 4 6 0 7 2 7 6 7 7 ( ( 2 2 ) ) 1 4 ( ( 2 2 1 ) ) 0 7 2 3 , , 3 2 9 5 4 0 5 3 2 2 3 , , 3 1 8 5 9 7 5 4 3 A3. Savings deposits issued to domestic governmental units Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) Paying (per cent) PPaayyiinngg ceiling cceeiilliinngg Group Total rate i TToottaall rraattee 11 4.00 4.01 4.51 (5.00 4.00 4.01 4.51 ((55..0000 or to to per or to to ppeerr less 4.50 5.00 cent) less 4.50 5.00 cceenntt)) Number of banks Millions of dollars All banks 6,936 196 688 6,052 6,009 5,625 76 449 5,100 5,056 Size of bank (total deposits in millions of dollars): Less than 20 3,812 150 234 3,428 3,399 852 43 8 801 797 20-50 1,860 38 363 1,459 1,459 1,226 1 130 1,096 1,096 5 5 1 0 0 0 - 0 0 1 - - 1 0 5 0 , 0 0 0 0 0 4 6 9 3 7 4 0 3 4 3 1 1 4 5 5 9 6 0 9 0 4 5 4 9 5 1 9 6 1,0 4 6 8 8 9 9 9 9 ( ( 2 2 ) ) ( ( 2 2 ) ) 9 1 1,0 6 3 4 0 5 9 8 9 1,0 6 3 3 0 4 0 8 9 1,000 and over 67 8 56 55 1,269 30 52 1,188 1,176 For notes, see p. 983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 979 A4. Savings deposits issued to all others Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee ii TToottaall rraattee 11 4.00 4.01 4.51 ((55..0000 4.00 4.01 4.51 ((55..0000 or to to ppeerr or to to ppeerr less 4.50 5.00 cceenntt)) less 4.50 5.00 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 666666667777777700000000 33 666666666666666677777777 666666666666666677777777 111111113333333311111111 11 111111113333333300000000 111111113333333300000000 Size of bank (total deposits in millions of dollars): Less than 20 222222226666666622222222 222222226666666622222222 222222226666666622222222 77777777 77777777 77777777 20-50 222222226666666699999999 222222226666666699999999 222222226666666699999999 1111111133333333 1111111133333333 1111111133333333 50-100 5555555522222222 5555555522222222 5555555522222222 1111111155555555 1111111155555555 1111111155555555 100-500 6666666655555555 33 6666666622222222 6666666622222222 5555555577777777 11 5555555566666666 5555555566666666 500-1,000 44444444 44444444 44444444 ((((((((33333333)))))))) ((((((((33333333)))))))) ((((((((33333333)))))))) 1,000 and over 1111111177777777 1111111177777777 1111111177777777 3333333399999999 3333333399999999 3333333399999999 A5. Government time deposits in denominations of less than $100,000— Maturities of 30 up to 90 days Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) Paying (per cent) ceiling Group Total rate i Total 5.00 5.01 5.51 (7.75 5.00 5.01 5.51 or to to per or to to less 5.50 7.75 cent) less 5.50 7.75 Number of banks Millions of dollars All banks 4,671 3,425 829 417 1,038 676 271 91 Size of bank (total deposits in millions of dollars): Less than 20 2,302 1,448 629 225 356 195 91 70 20-50 1,278 1,046 48 183 152 123 19 50-100 458 427 31 179 172 7 100-500 484 394 84. 177 71 99 (2) 500-1,000 81 55 24 81 47 (2) (2) 1,000 and over 68 55 13 92 67 (2) A6. Government time deposits in denominations of less than $100,000— Maturities of 90 up to 180 days Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee 11 TToottaall rraattee ii 5.00 5.01 5.51 ((77..7755 5.00 5.01 5.51 ((77..7755 or to to ppeerr or to to ppeerr less 5.50 7.75 cceenntt)) less 5.50 7.75 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 88888888,,,,,,,,111111118888888855555555 11111111,,,,,,,,000000008888888855555555 66666666,,,,,,,,777777773333333311111111 333366669999 11111111,,,,,,,,555555559999999988888888 222222220000000033333333 11111111,,,,,,,,333333335555555544444444 44442222 Size of bank (total deposits in millions of dollars): Less than 20 44444444,,,,,,,,555555556666666655555555 333333337777777799999999 44444444,,,,,,,,000000004444444444444444 111144442222 777777777777777722222222 3333333322222222 777777773333333300000000 11110000 20-50 22222222,,,,,,,,333333337777777744444444 555555554444444411111111 11111111,,,,,,,,666666662222222266666666 222200007777 222222229999999911111111 111111111111111166666666 111111114444444499999999 22226666 50-100 555555551111111199999999 6666666677777777 444444445555555522222222 111111113333333311111111 2222222244444444 111111110000000077777777 5 1 1 0 0 ,0 0 0 0 - - 0 1 5 , 0 a 0 0 n 0 0 d over 55555555 77777777 77777777 88888888 00000000 44444444 33333333 66666666 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 44444444 9 5 9 5 9 5 9 5 9 5 9 5 9 5 9 5 5555555500000000 55555555 55555555 00000000 44444444 55555555 1111 9999 0000 22222222 11111111 00000000 44444444 55555555 44444444 99999999 11111111 ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) 55555555 11111111 11111111 44444444 22222222 99999999 11111111 77777777 99999999 (((( (((( 2222 2222 )))) )))) 1111 For notes, see p. 983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 Federal Reserve Bulletin • November 1977 A7. Government time deposits in denominations of less than $100,000— Maturities of 180 days up to 1 year Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee 11 TToottaall rraattee 11 5.00 5.01 5.51 ((77..7755 5.00 5.01 5.51 ((77..7755 or to to ppeerr or to to ppeerr less 5.50 7.75 cceenntt)) less 5.50 7.75 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 33333333,,,,,,,,666666667777777700000000 333999000 22222222,,,,,,,,666666669999999911111111 555555558888888899999999 666666669999999944444444 111777000 333333334444444488888888 111111117777777766666666 Size of bank (total deposits in millions of dollars): Less than 20 11111111,,,,,,,,444444446666666699999999 222666666 999999997777777744444444 222222222222222299999999 111111114444444400000000 222777 6666666644444444 4444444488888888 20-50 11111111,,,,,,,,333333334444444477777777 11111111,,,,,,,,111111110000000022222222 222222224444444455555555 111111119999999999999999 111111111111111177777777 8888888822222222 50 100 333333333333333388888888 5555522222 222222225555555500000000 3333333366666666 111111110000000055555555 4444455555 3333333366666666 2222222233333333 100 500 333333337777777799999999 5555533333 222222227777777733333333 5555555522222222 111111116666666699999999 9999922222 6666666699999999 88888888 500-1,000 7777777700000000 1111111111 4444444433333333 1111111166666666 3333333322222222 11111 2222222222222222 99999999 1,000 and over 6666666677777777 88888 4444444499999999 1111111100000000 4444444488888888 55555 3333333399999999 55555555 A8. Government time deposits in denominations of less than $100,000— Maturities of 1 year or more Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate (per cent) Paying Most common rate (per cent) Paying ceiling ceiling rate 1 rate 1 Group Total 5.00 5.01 5.51 6.01 (7.75 5.00 5.01 5.51 6.01 (7.75 or to to to per or to to to per less 5.50 6.00 7.75 cent) less 5.50 6.00 7.75 cent) Number of banks Millions of dollars All banks 8,288 325 536 5,806 1,622 1,214 25 870 217 Size of bank (total deposits in millions of dollars): Less than 20 4,308 203 421 2,569 1,116 457 316 100 20-50 2,596 38 2,386 172 321 306 15 50-100 632 67 16 349 200 127 (3) 49 71 100-500 614 43 44 418 109 231 64 144 15 5 1 0 ,0 0 0 - 0 1 , a 0 n 00 d over 5 8 9 0 9 3 1 8 0 4 4 3 1 20 4 4 3 5 2 2 3 3 1 9 6 14 1 A9. Other time deposits in denominations of less than $100,000— Maturities of 30 up to 90 days Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee 11 TToottaall rraattee 11 4.50 4.51 ((55..0000 4.50 4.51 ((55..0000 or to ppeerr or to ppeerr less 5.00 cceenntt)) less 5.00 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 55,,779933 320 55,,447722 55,,445511 77,,666699 121 77,,554488 77,,448899 SSiizzee ooff bbaannkk ((ttoottaall ddeeppoossiittss iinn mmiilllliioonnss ooff ddoollllaarrss)):: LLeessss tthhaann 2200 22,,663399 234 22,,440066 22,,440066 337766 3 337722 337722 2200--5500 11,,449977 38 11,,445599 11,,445599 441188 1 441177 441177 5500--110000 779900 779900 779900 777744 777744 777744 100-500 668866 36 665500 663333 22,,008899 8 22,,008811 22,,006622 500-1,000 9988 10 8877 8855 11,,440077 (2) ((22)) 11,,330000 1,000 and over 8833 2 8811 7799 22,,660066 (2) ((22)) 22,,556644 For notes, see p. 983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 981 A10. Other time deposits in denominations of less than $100,000— Maturities of 90 up to 180 days Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) Paying (per cent) PPaayyiinngg ceiling cceeiilliinngg Group Total rate 1 TToottaall rraattee 11 4.50 4.51 5.01 (5.50 4.50 4.51 5.01 ((55..5500 or to to per or to to ppeerr less 5.00 5.50 cent) less 5.00 5.50 cceenntt)) Number of banks Millions of dollars All banks 11,458 98 1,031 10,329 10,028 31,814 1 2,277 29,536 27,464 Size of bank (total deposits in millions of 2 L 0 e - d s 5 s o 0 l t l h a a rs n ) : 2 0 6 3 , , 0 2 5 9 3 2 5 3 8 8 2 5 9 9 7 9 2 5 , , 6 6 5 9 5 9 2 5 , . 6 5 1 4 7 8 4 3 , , 6 6 1 3 0 0 ( ( 3 2 ) ) (2) 8 0 4 3 , , 0 5 5 4 5 9 3 3 , , 5 9 2 3 5 7 50-100 1,156 94 1,062 1,021 4,835 405 4,430 4,409 5 1 0 0 0 0 - - 1 5 , 0 0 0 0 0 77 9 1 5 2 1 0 3 75 8 2 0 69 7 8 6 7 2, , 8 7 8 7 8 2 (2) (2) 8 1 7 2, , 7 6 3 9 6 2 2 7 , ,5 5 4 7 5 2 1,000 and over 90 9 81 68 8,079 1,006 7,274 5,476 All. Other time deposits in denominations of less than $100,000— Maturities of 180 days up to 1 year Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) Paying (per cent) ceiling Group Total rate 1 Total 4.50 4.51 5.01 (5.50 4.50 4.51 5.01 or to to per or to to less 5.00 5.50 cent) less 5.00 5.50 Number of banks Millions of dollars All banks 8,134 569 7,520 7,418 4,664 5 124 4,535 4,481 Size of bank (total deposits in millions of Le d ss o l t l h a a rs n ) : 2 0 4,481 29 387 4,065 4,065 1,635 ((33)) 33 1,602 1,602 20-50 1,928 86 1,842 1,804 605 20 585 584 5 5 1 1 0 0 , 0 0 0 - 0 0 1 - - 0 1 0 5 , 0 0 a 0 0 n 0 d 0 over 8 6 9 7 6 8 5 7 6 6 6 1 2 9 7 8 6 8 3 1 7 8 9 5 8 2 6 7 0 9 7 7 5 5 8 1 6 7 7 3 9 0 0 1 9 3 7 4 ( ( ( 3 2 2 ) ) ) ( ( 2 2 ) ) 2 8 3 7 6 6 3 0 8 6 0 0 0 2 5 6 6 6 3 3 8 0 7 9 5 1 0 A12. Other time deposits in denominations of less than $100,000— Maturities of 1 up to ly years 2 Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee ii TToottaall rraattee ii 5.00 5.01 5.51 ((66..0000 5.00 5.01 5.51 ((66..0000 or to to ppeerr or to to ppeerr less 5.50 6.00 cceenntt)) less 5.50 6.00 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 11113333,,,,666666662222 98 333399994444 11113333,,,,111177771111 11113333,,,,000077776666 33334444,,,,222244442222 37 666655557777 33333333,,,,555544448888 33332222,,,,888800000000 SSiizzee ooff bbaannkk ((ttoottaall ddeeppoossiittss iinn mmiilllliioonnss ooff ddoollllaarrss)):: LLeessss tthhaann 2200 7777,,,,999922229999 58 333322229999 7777,,,,555544442222 7777,,,,444488884444 9999,,,,333322221111 24 222244446666 9999,,,,000055550000 8888,,,,999922224444 2200--5500 3333,,,,666611114444 38 22224444 3333,,,,555555552222 3333,,,,555555552222 8888,,,,444477773333 (2) ((((2222)))) 8888,,,,444433333333 8888,,,,444433333333 5500--110000 1111,,,,111155556666 11116666 1111,,,,111144440000 1111,,,,111144440000 3333,,,,555544448888 66667777 3333,,,,444488881111 3333,,,,444488881111 100-500 777777774444 11115555 777755559999 777733333333 5555,,,,222222223333 66665555 5555,,,,111155559999 5555,,,,000055553333 500-1000 111100000000 2 6666 99992222 99992222 1111,,,,777788886666 (2) ((((2222)))) 1111,,,,666622222222 1111,,,,666622222222 1,000 and over 99990000 4444 88886666 77775555 5555,,,,888899991111 88888888 5555,,,,888800003333 5555,,,,222288886666 For notes, see p. 983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 Federal Reserve Bulletin • November 1977 A13. Other time deposits in denominations of less than $100,000— Maturities of iy up to 4 years 2 Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee ** TToottaall rraattee ii 6.00 6.01 ((66..5500 6.00 6.01 ((66..5500 or to ppeerr or to ppeerr less 6.50 cceenntt)) less 6.50 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 1122,,661144 365 1122,,224499 1111,,993388 1188,,996677 407 1188,,556600 1188,,003333 SSiizzee ooff bbaannkk ((ttoottaall ddeeppoossiittss iinn mmiilllliioonnss ooff ddoollllaarrss)):: LLeessss tthhaann 2200 66,,995599 237 66,,772222 66,,448800 33,,778800 19 33,,776611 33,,775522 2200--5500 33,,559900 76 33,,551144 33,,551144 44,,882233 26 44,,779977 44,,779977 5500--110000 11,,112200 11,,112200 11,,007799 22,,335599 22,,335599 22,,224499 100-500 776633 37 772266 770033 33,,227722 118 33,,115555 22,,999922 500-1,000 9955 7 8899 8866 11..004488 68 998800 994411 1,000 and over 8877 8 7799 7755 33,,668844 177 33,,550077 33,,330022 A14. Other time deposits in denominations of less than $100,000— Maturities of 4 up to 6 years Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee ii TToottaall rraattee ii 6.50 6.51 7.01 ((77..2255 6.50 6.51 7.01 ((77..2255 or to to ppeerr or to to ppeerr less 7.00 7.25 cceenntt)) less 7.00 7.25 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 1122,,112211 242 22,,118844 99,,669955 99,,669933 5511,,113333 2,301 77,,995555 4400,,887777 4400,,886611 SSiizzee ooff bbaannkk ((ttoottaall ddeeppoossiittss iinn mmiilllliioonnss ooff ddoollllaarrss)):: LLeessss tthhaann 2200 66,,993399 150 11,,229988 55,,449911 55,,449911 88,,119944 63 11,,663388 66,,449944 66,,449944 2200--5500 33,,118855 24 559944 22,,556677 22,,556677 1111,,339944 44 22,,447755 88,,887744 88,,887744 5500--110000 11,,006633 117755 888888 888888 66,,880011 881133 55,,998888 55,,998888 100-500 775533 49 9977 660077 660044 1100,,554488 892 11,,446699 88,,118866 88,,117700 500-1,000 9966 8 1111 7777 7777 44,,448866 216 889944 33,,337777 33,,337777 1,000 and over 8855 11 88 6666 6666 99,,771100 1,086 666666 77,,995588 77,,995588 A15. Other time deposits in denominations of less than $100,000— Maturities of 6 years or more Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate Most common rate (per cent) PPaayyiinngg (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee 11 TToottaall rraattee 11 5.00 5.01 7.26 ((77..5500 5.00 5.01 7.26 ((77..5500 or to to ppeerr or to to ppeerr less 7.25 7.50 cceenntt)) less 7.25 7.50 cceenntt)) Number of banks Millions of dollars AAllll bbaannkkss 999,,,444111444 66 555000666 888,,,888444222 888,,,888444222 111333,,,999111555 3 111,,,000333222 111222,,,888888111 111222,,,888888111 SSiizzee ooff bbaannkk ((ttoottaall ddeeppoossiittss iinn mmiilllliioonnss ooff ddoollllaarrss)):: LLeessss tthhaann 2200 444,,,999666111 29 222999444 444,,,666333888 444,,,666333888 111,,,222888999 (3) 444444 111,,,222444555 111,,,222444555 2200--5500 222,,,666333666 888666 222,,,555555000 222,,,555555000 222,,,888444000 444 222,,,888333666 222,,,888333666 50-100 999999666 31 333111 999333444 999333444 222,,,000111555 2 111000999 111,,,999000444 111,,,999000444 100-500 666555111 4 666888 555777999 555777999 333,,,000999666 (2) (((222))) 222,,,888222333 222,,,888222333 500-1,000 888777 1 111333 777333 777333 111,,,333222333 (2) (((222))) 111,,,222111111 111,,,222111111 1,000 and over 888222 111333 666999 666999 333,,,333555222 444999000 222,,,888666222 222,,,888666222 For notes, see p. 983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 983 A16. Club accounts—Christmas savings, vacation, or similar club accounts Most common interest rates paid by insured commercial banks on new deposits, July 27, 1977 Most common rate (per cent) PPaayyiinngg Most common rate (per cent) PPaayyiinngg cceeiilliinngg cceeiilliinngg GGrroouupp TToottaall rraattee 11 TToottaall rraattee 11 0.00 . t 0 o 1 4 t . o 0 1 4. to 5 1 (( pp 55 ee ..55 rr 00 0.00 . t 0 o 1 4. t 0 o 1 4 t . o 5 1 ((55 pp .. ee 55 rr 00 4.00 4.50 5.50 cceenntt)) 4.00 4.50 5.50 cceenntt)) Number of banks Millions of dollars All banks 9,053 4,393 1,527 674 2,460 163 1,836 367 334 257 878 23 Size of bank (total deposits in millions of dollars): Less than 20 4,862 2,950 762 355 796 226 99 45 39 42 20-50 2,587 985 507 206 889 136 256 65 71 47 73 50-100 879 283 138 47 411 281 60 66 25 131 5 1 1 0 , 0 0 0 0 0 - - 0 1 5 , 0 a 0 0 n 0 d 0 over 5 6 6 9 9 2 4 14 1 1 2 6 7 10 1 1 4 5 4 1 6 9 1 3 2 0 3 8 5 1 25 2 4 4 1 8 5 3 5 3 5 2 4 7 4 3 6 1 3 0 1 3 6 4 ( ( 2 2 ) ) 4 7 2 3 5 1 5 6 9 6 (2) NOTES TO APPENDIX TABLES 1-16: 1 See p. A10 for maximum interest rates payable on time and held at banks that had discontinued issuing deposits are not included saving deposits at the time of each survey. The ceiling rate is the top in the amounts outstanding. Therefore, the deposit amounts shown of the rate interval immediately to the left. in Table 1 may exceed the deposit amounts shown in these tables. 2 Omitted to avoid individual bank disclosure. The most common interest rate for each instrument refers to the 3 Less than $500,000. stated rate per annum (before compounding) that banks paid on the largest dollar volume of deposit inflows during the 2 week period NOTE.—All banks that either had discontinued offering or had immediately preceding the survey date. never offered particular deposit types as of the survey date are not Figures may not add to totals because of rounding. counted as issuing banks. Moreover, the small amounts of deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 Statements to Congress Statement by Henry C. Wallich, Member, and quite likely the non-oil-developing coun- Board of Governors of the Federal Reserve tries as well, should be experiencing real System, before the Subcommittee on Trade of growth in 1978 no faster than the United the Committee on Ways and Means, U.S. States. We may, therefore, have to wait until House of Representatives, November 3, 1977. after 1978 before most other countries have fully caught up with the United States. Making I am pleased to appear before this subcommit- an adjustment for these cyclical differences is tee today to discuss the important topic of difficult both conceptually and operationally. I U.S. international transactions and our trade would not think it unreasonable, however, to and current-account deficits. attribute something like $10 billion to $15 The deficit of the United States on current- billion of our current-account deficit to this account transactions is expected to amount to factor. $16 billion to $20 billion in 1977 and may well Our oil imports, estimated at $45 billion in be at least that large in 1978. The anticipated 1977, have also contributed substantially to 1977 current-account deficit is the composite our deficit. It would be a mistake, however, to result of a trade deficit that could be on the view the increase in these imports, over some order of $30 billion and a surplus on the order earlier period, as a complete measure of the of $12 billion in other current-account transac- impact of oil on our external position. Our tions. It is important to note this composition exports to the Organization of Petroleum Exof the U.S. current-account deficit. Focusing porting Countries (OPEC) also have risen on the trade balance alone makes the U.S. rapidly in recent years. A more meaningful, situation appear weaker, just as it makes the but still not entirely satisfactory, assessment situations of Japan and Germany look of the oil impact on the U.S. current account stronger, than it actually is. Japan and Ger- would be to look at our current-account balmany have substantial deficits on service ance excluding both imports from and exports transactions. to OPEC. Such a calculation, which ignores The factors that may have contributed to our large surplus on services with OPEC, our deficit can be grouped under three head- indicates that our current-account position ings: (1) the pace of recovery in the United with the non-OPEC countries was in surplus in States, compared with that in other countries; the first half of 1977. (2) oil imports; and (3) the degree of interna- It is also useful to remember that the United tional competitiveness of our economy. I shall States depends far less upon imported oil than briefly comment on each of these factors. other countries in relation to the size of the The U.S. economy is substantially ahead of respective economies. Unfortunately, this most other economies in the expansion phase ability of the United States to take care of its of the current cycle. This has meant that our oil needs from domestic sources has diimports have risen faster than our exports. As minished over the past several years as other countries catch up, this situation should domestic oil production declined. be corrected. On the basis of current fore- The competitiveness of American exports casts, the Organization for Economic Cooper- and of our economy generally can be assessed ation and Development (OECD) countries, by a variety of criteria although none of them Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 985 is completely satisfactory. An examination of United States, despite its negative implicathe share of U.S. exports in the markets of tions, seems unavoidable and indeed not unparticular countries indicates that we have not desirable from the viewpoint of global stabilexperienced a declining share in most of them, ity. An effort to bring our international balance although in the aggregate our share of exports back into equilibrium quickly could raise the to the Group of Ten countries has declined deficits of other countries to unsustainable somewhat from the peak in 1975. Such calcu- rates. We must, however, remain aware of the lations suggest that our exports continue to be negative implications of a large and continuing competitive. An examination of so-called U.S. current-account deficit. Such a deficit 4'real" exchange rates, that is, exchange rates tends to exert a negative influence on ecoadjusted for different degrees of price inflation nomic activity in this country. It also tends to here and abroad, also suggests that neither our put downward pressure on the U.S. dollar and export nor our domestic economy has, over thereby eventually to intensify inflationary the past 2 years, lost price competitiveness. pressures. And it tends to create pressure for Furthermore, recent investigations show that interference with the free flow of trade foreign demand for our exports responds to through quotas, tariffs, and other restrictions. increases in income abroad much as our own Concern over the outlook for the dollar could demand for foreign goods has responded to also cause official and private holders of increases in our own income. dollar-denominated assets to seek to shift to So long as OPEC maintains a current- assets denominated in other currencies, account surplus, presently on the order of $40 thereby intensifying the pressure on the dollar. billion, the rest of the world taken together Such a development also might prompt the inevitably must have a deficit with these coun- OPEC countries to raise the price of oil. And, tries of equal magnitude. The greatest contri- taking a longer view, a stance for the United bution that could be made toward better world States as a heavy importer of foreign capital, payments balance would be a decline in the which is the necessary implication of a large OPEC surplus. The problem created by the current-account deficit, is not consonant with OPEC surplus is intensified by additional our position as a wealthy country that tradisurpluses run by some oil-importing countries, tionally has exported capital to countries with including Japan, Germany, Switzerland, and lower per capita incomes. the Netherlands, which may amount to over The best means of dealing with our deficit, $15 billion in 1977. An important step toward because it is also the most fundamental, is to better balance in world payments would be a hold down and reduce our rate of inflation. reduction in these non-OPEC surpluses. A This will increase our underlying price comnumber of countries now in deficit are ap- petitiveness with respect to that very large proaching debt levels that make a reduction of part of the world where inflation rates remain those deficits, and of the rate of external high. borrowing, highly desirable. A number of Measures to reduce the importation of countries, indeed, have already achieved such oil, through conservation and increased reductions. But one must recognize that when domestic production, likewise are urgent. In one country reduces its deficit the deficits of this way, measures that we ought to take in other countries are likely to increase; in order to strengthen our economy from a addition, the surpluses of those in surplus domestic point of view also would serve the diminish. purpose of reducing our current-account defi- Under these circumstances, a current- cit and of contributing to a better balance in account deficit of some magnitude for the global payments positions. • Additional statement follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 Federal Reserve Bulletin • November 1977 Statement by Arthur F. Burns, Chairman, ances cumulated to major proportions in 1973 Board of Governors of the Federal Reserve and 1974. By the time businessmen recognized System, before the Committee on Banking, the mistaken assessments they had made, the Housing and Urban Affairs, U.S. Senate, need to scale back operations had become November 9, 1977. enormous. The worst recession in a generation ensued. I am pleased to meet with this committee once The scars of both the recession and its again to present the report of the Board of prelude are with us still. Psychologically, the Governors of the Federal Reserve System on recession was profoundly disturbing because the condition of the national economy and the of its magnitude and because it caught so course of monetary policy. many people by surprise. A good many of our It might be useful to begin this testimony citizens, it seems clear, had developed inordiwith a few comments on economic de- nate faith in government's ability to manage velopments during the past several years. I do and sustain economic expansion. When they so because I believe that analysis of the cur- discovered that that faith was not justified, the rent situation will be helped materially if we experience was sobering—particularly for the start with a reasonably clear understanding of not inconsiderable number of businessmen how we got to where we are. who in the froth of the earlier prosperity had The key economic problems confronting our added excessively to their short-term debts. Nation today have their origin in events that Out of that trauma was born a resolve in the extend back over a considerable time. A major minds of many businessmen to be much more conditioner of national economic affairs at cautious in managing inventories, and also in present continues to be the fact that inflation adding to their fixed costs or in enlarging their was allowed to get so far out of control in the current liabilities. latter part of the 1960's and the early 1970's. And, as this committee knows well, it was Precisely why that happened is a very com- not only the business sector that was affected. plex matter, involving both shocks to our Many State and local governments encouneconomy—the chief one being the quantum tered problems that were just as searing—with jump in oil prices—and some mistaken actions New York City representing only the extreme by governmental and private decision-makers case. That was partly because their normal alike. But it is no part of my immediate expenditures tend to respond more elastically concern to explore or assign responsibility. to inflation than do revenues, and partly be- The point I want to stress is simply that the cause their budgets—particularly those of distortions of the inflationary blow-up that local governments—were hard hit during the occurred in the 1972-74 period are still casting recession by the costs of income-maintenance a heavy shadow on our economic environ- programs. It was not so long ago, as you may ment. recall, that grave concern was being voiced Certainly, the recession of 1974-75 would across our land about the financial health of not have been nearly so severe, and indeed many State and local governments. might not have occurred at all, had it not been The special legacy of inflation and recession for the inflationary stress of the preceding has inevitably been on our minds at the Fedseveral years. Blinded by the dizzying ad- eral Reserve in hammering out monetary polvance of prices and the effects of that advance icy throughout the past 2Vi years of recovery. on their nominal profits, businessmen were We have recognized, on the one hand, that slow to recognize that the underlying condi- formidable risks of adding to inflationary extion of demand for their products was de- pectations would accompany any pursuit of teriorating. They thus continued aggressive aggressive monetary ease. But at the same programs of inventory expansion and capital- time, we have been sensitive to our obligation goods expansion longer than was prudent, to foster financial conditions favorable to enwith the consequence that economic imbal- couraging job opportunities, so that the unem- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 987 ployment rate—which has remained very high ronment for a massive amount of debt reby historical yardsticks—might be further re- structuring. During this expansion, business duced. firms have been notably successful in reducing What we feel has been virtually obligatory the ratio of short- to long-term debt, and State in these circumstances is a middle course of and local governments as well have been able moderate monetary expansion. That, in fact, to strengthen their financial posture. Progress is the course we have pursued to the best of of this kind has not only enhanced the potenour ability. Monetary aggregates, to be sure, tial of businesses and governmental units to have sometimes grown very slowly for short play a continuing supportive role in the ecotimespans: in other periods, they have grown nomic expansion; it has also quieted the not very rapidly. Over all, however, the path has inconsiderable nervousness many investors been one of moderation. This is evidenced, for felt a short time ago about holding debt issues, instance, by an average annual rate of growth especially those enjoying less than top ratings. of about 6 per cent in M-1—the narrow money That is a very constructive financial-market stock, which includes only currency and de- development. mand deposits—during the 10 full quarters of The recovery of economic activity during this recovery. the past 2Vi years has had features that might The rise in M-1 and in related monetary have been expected from the special circumaggregates has been sufficient to finance a stances that prevailed earlier. For instance, large gain in the physical volume of output and retail sales and housing starts weakened at the employment. Indeed, nearly 7 million jobs very beginning of 1973—well in advance of the have been created since March 1975—a per- peak of the previous cyclical expansion. These formance without parallel in both absolute and activities consequently avoided some of the percentage terms since World War II. But the extreme end-phase distortion that occurred increases in the money supply, while so favor- elsewhere in the economy, and they have able to the physical expansion of economic displayed the most conspicuous elements of activity, were sufficiently limited to permit a strength during the current expansion. In both retreat from double-digit inflation. And clearly, instances, the percentage gains since the rethe increases that occurred in the money cession trough in March 1975 are greater than supply have not excited new inflationary has been usual in previous expansions. By expectations—a fact evidenced by the dramat- contrast, a large residue of caution has characically atypical behavior of interest rates in this terized business spending for both inventories expansion. Short-term interest rates, despite and fixed capital. the advances of recent months, are not mate- Indeed, the control that businesses are rially higher today than they were at the exercising nowadays over inventories has beginning of this expansion. And long-term produced very prompt slowing in production rates are actually lower by a significant mar- whenever consumer spending showed signs of gin. Charts 1 and 2 of the appendix to this hesitancy. That fact goes a long way toward statement, which depict the behavior of inter- explaining why we have had considerable unest rates, make this entirely clear.1 evenness in the rate of over-all economic All in all, we at the Federal Reserve are advance. While the pauses have produced satisfied that monetary policy has made an some anxiety from time to time, the new important contribution to the recovery and to determination of businessmen not to allow the basic economic health of this Nation. their inventories to become unbalanced is Among other things, monetary policy has actually a constructive development. helped to produce a receptive, orderly envi- A worrisome feature of businessmen's current caution, however, is their marked relucirThe appendix to this statement is available on request tance to proceed with capital investment from Publications Services, Division of Administrative programs comparable to those of previous ex- Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. pansions. In the IVi years since the recession Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 Federal Reserve Bulletin • November 1977 trough, "real" capital outlays have increased It has not been easy during recent months to less than half as much as they did, on average, interpret economic or financial developments over like periods in previous postwar expan- with as much confidence as one would like to sions. The shortfall has been especially feel. This committee is aware, I am sure, of marked in the case of major long-lived indus- the wide divergence of judgment that has trial projects, and it has occurred even in been expressed by private economists. A industries—such as basic chemicals—in which similar diversity of views—although less the rate of capacity utilization is well ad- pronounced—has existed within the Federal vanced. The relative weakness of spending on Reserve System. This is simply a time when plant and equipment is, indeed, the most honest differences in assessment can easily troublesome feature of the current expansion. arise among conscientious analysts. At the In large part this weakness is due to the September meeting of the Federal Open Marunsatisfactory performance of corporate ket Committee, for instance, the consensus profits—a difficulty that I discussed at length favoring some firming of monetary policy in a recent speech and one that must be found 2 of the 12 Committee members dissentovercome soon if the recovery is to take on a ing because they felt that the policy allowed more balanced character and hence enjoy a for more firming than they believed to be good chance of being sustained. justified and another two members dissenting One other unusual weakness of this re- because they thought that the intended firming covery—and this again is something that was inadequate. could have been reasonably anticipated—has I can report, nevertheless, that the domibeen the subdued expenditure pattern, until nant view within the Federal Reserve is that recently, of State and local governments. Their economic expansion will persist well into "real" spending, like that of businesses for 1978, probably at a pace sufficiently strong to fixed-capital assets, also is up by only about result in some further reduction in the unemhalf as much from the recession trough as has ployment rate. The collective belief is that the been typical in previous expansions—a clear reduced rate of increase in real gross national reflection of the generalized financial strains product (GNP) in the third quarter is now that State and local governments have experi- giving way to quicker expansion. A key eleenced. ment in this expectation is the emergence In sum, the character of the current eco- recently of a strong pattern in State and local nomic recovery has differed in some major government spending and employment— respects from that of earlier recoveries. This reflecting the improved budget position of fact has considerable bearing on prospects for these governments. Also supportive of the the continuation of the recovery and also for view that early 1978 will witness good gains in policy formulation. One thing that should be general economic activity is the fact that busiapparent is that the obstacles that have stood ness capital spending, although far from in the way of more vigorous economic growth robust, is moving ahead, and in particular is are not likely to be successfully addressed showing some recovery in major industrial by conventional stimulative actions. Simply construction. opening up the monetary faucets or spewing The judgments that we in the System have out funds from the Treasury does not seem a about the more distant future are much more promising course in view of the widespread tentative—mainly because of uncertainties concerns that now exist—particularly in the about capital formation and the generally business and financial community. We need weak trend of activity in foreign economies. policies, rather, that are attuned to our spe- Lagging recovery abroad has, of course, cial legacy—namely, past inflation, its after- worked to the serious detriment of our export math of recession, and fears of new troubles trades and this in turn has caused some that may yet come from a continuing high rate weakening of the dollar in foreign exchange of inflation. markets. The uneasiness that now appears to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 989 prevail in many parts of the business world half of this year and to an estimated rate of casts a cloud on the longer-run prospects of $115 billion in the third quarter. This, I might the economy, but the possibility that the gen- add, has raised the combined instalment and eral expansion will actually accelerate as 1978 mortgage repayment burden that households unfolds—particularly if capital spending can face—relative to their disposable income— be invigorated—is very much a part of my own close to the previous high experienced in 1973. thinking as well as that of some other members I do not mean to imply that this as yet is a of the Federal Reserve. matter for serious concern. But this is an area I must call your attention to a striking fact. that warrants continuing close scrutiny for The somewhat mixed character of recent eco- signs of excess, with special attention given nomic news has been reflected in equity prices to the apparently increasing tendency of quoted on the stock exchanges, but it has homeowners to borrow heavily against the had little counterpart in other financial de- accumulated equity in their residences. velopments. General credit expansion, in- Business firms, too, have borrowed much deed, has proceeded at a brisk pace this more this year than last. During the early year—with an intensity that I do not think has stages of this economic expansion, the sum of been fully appreciated. The Federal Reserve retained earnings and depreciation actually has naturally given some weight to the evolv- exceeded outlays by nonfinancial corporations ing pattern of credit expansion in the course of for inventories and fixed capital. This relationits monetary policy deliberations. We have not ship was reversed in 1976, and—with the been able to assume, as some others appear to tempo of capital spending picking up this have done, that the intense reaching out for year—a larger "financing gap" than existed in credit is a process without significance. 1976 has developed. For all of 1977, the The total amount of funds raised in credit Board's staff estimates that nonfinancial cormarkets this year not only has expanded very porations will raise a net total of about $80 rapidly from quarter to quarter in absolute billion in credit markets, up almost 40 per cent terms but also has expanded much more from last year. The higher volume of business rapidly than has the dollar value of GNP. borrowing this year is being distributed be- Preliminary estimates indicate that total bor- tween short- and long-term debt, with the rowings by all entities in this country ran at an former showing the more prominent rise— annual rate of about $400 billion in the third partly because some of the higher-rated indusquarter of this year—or some $90 billion more trial corporations have largely completed their than in the third quarter of 1976. This raised desired balance-sheet restructuring. the ratio of total borrowings to the dollar value I know that it is widely believed that shortof GNP above 20 per cent, close to the all-time term and intermediate-term business borrowpeak recorded during the speculative boom of ing has been sluggish. True, there has been early 1973. It is hardly surprising, I submit, some unevenness in borrowing pressures from that such a volume of fundraising should press region to region and from one type of lending against available supplies of credit and tend to institution to another; but any impression that cause some interest rates to move upward. I shorter-dated business credit demands have would note especially that the quest for credit been anemic is decidedly wrong. There has, in accommodation has not been confined to just fact, been an impressively rapid rise since late a few sectors of the economy; rather, it has last year in the combined total of business been very broadly diffused. credit raised from banks, the commercial Households have absorbed a huge total of paper market, and finance companies. The credit this year, mainly in the form of mort- rate of increase, to be sure, did slow materially gage and instalment debt. Their net addi- this September, but that seems to have been tion to mortgage and instalment debt, which an erratic deviation from the basic trend; was $46 billion in 1975 and $82 billion in 1976, preliminary data indicate extremely fast-paced rose to an annual rate of $ 105 billion in the first growth of business loans in October. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 Federal Reserve Bulletin • November 1977 Moreover, it has not been only the private however, patently at odds with economic desector of the economy that has reached out velopments averaged out over several quaraggressively for credit this year. Borrowing by ters. And it may be, of course, that undue State and local governments has been running attention has been given to the summer pause at record levels, partly because these govern- in trying to gauge how well the economy is ments have moved to take advantage of the doing. That is a possibility that the Federal significant renewal of lender confidence in Reserve has had to weigh. It would be a tax-exempt securities. Our Board staff esti- happier situation if there were less apparent mates that the net borrowing of State and local conflict between different kinds of evidence, governments during this year for all purposes but in making decisions on monetary policy will come to about $25 billion, up more than 60 we must do the best we can with whatever per cent from the net borrowing in 1976. Much evidence can be mustered. of this money is being used to finance con- There is no rigid link between the total struction of such things as water treatment and volume of credit outstanding in the economy sewer systems and municipal power facilities. and the Nation's stock of money, but move- And not to be forgotten is the continuing ments in credit and money do tend, of course, large appetite of the Federal Government for to be positively related. If the demand for credit. Thus far during calendar 1977, it is credit begins to strengthen at a time when true, such borrowing has been smaller than in financial institutions are relatively liquid, a the like period of 1976, reflecting a reduced good amount of credit expansion can occur budget deficit. But the rate of Federal borrow- without much—if any—change in monetary ing nevertheless has remained exceptionally balances. But as the economy grows and large and—what is more significant—it is now credit expansion continues, sooner or later a heading upward again, in contrast to the nor- need for enlarged money balances will arise in mal pattern of progressively lower financing order to facilitate the enlarged total of credit needs as economic expansion proceeds. That transactions. Such a process has unquestionreflects, of course, various tax cuts or tax-cut ably been at work this year, and it explains in extensions embodied in the Tax Reduction some measure why the growth of M-l—the Act of 1977 and various spending initiatives narrow money stock—has accelerated retaken last spring with a view to quickening the cently in relation to money growth earlier in pace of economic growth. For the full fiscal this expansion. year 1978, the combined unified and off- As you know, the Federal Open Market budget deficit is now officially estimated at Committee (FOMC) has, however, the ability about $69 billion—nearly $16 billion higher to take prompt steps that will in time check than for fiscal year 1977. The Treasury started any unwanted acceleration in the money this fiscal year with a large cash balance. Even aggregates. There has been considerable disso, it appears likely that in the 6-month period cussion recently in economic and financial ending with March 1978 the Treasury will have circles as to why we at the Federal Reserve to raise about $10 billion more in financial have allowed money growth in the past 6 or 7 markets than it did in the corresponding period months to exceed the upside limit we had 1 year earlier. projected for longer-term monetary expan- I have dwelt at some length on the evolving sion. M-l actually grew at an average annual pattern of credit extension because, as I noted rate of 9 per cent during the second and third earlier, I do not think that what has been quarters of this year—well above the 6V2 per happening in credit markets is as widely ap- cent upper end of the longer-term growth preciated as it should be. The vigor of credit range previously projected. Growth in the extension certainly suggests a sense of greater broader monetary aggregates has also run dynamism in the economy than appears, for above their anticipated upper limits, but the example, from business statistics for the third excess in their case has been minor. The quarter. The vigor of credit extension is not, growth actually recorded in them has shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 991 no quickening compared with earlier stages of its pre-1974 relationship to economic activity. the economic expansion. Still, their growth But we still do not know whether the slowing has rather consistently exceeded our objec- of changes in financial technology is more than tives. a temporary aberration. The high rate of growth in each of the major Under the circumstances, we have judged it monetary aggregates during the past 6 months wise to move cautiously in adapting policy. is thus a setback to the Federal Reserve's We have felt very keenly the need for some policy of gradually reducing the rates of clarification of ambiguities before striking out growth of the monetary aggregates, so that decisively. We well realize that the middle they may in time be once again consistent with course actually followed—that of gradually general price stability. But it is only a tempo- limiting the availability of bank reserves and rary setback. A zigzag course is sometimes thereby slowing the growth of money—has left inevitable or perhaps even desirable. us open to the charge of temporizing. In fact, One fact that needs to be borne in mind is we did not temporize at all, but we did move that the acceleration of money growth has not prudently. occurred in a smooth pattern. Instead, the On the one hand, restrictive action vigorous tendency toward excess has proceeded in fits enough to have kept M-1 growth within the and starts, so it was virtually impossible to projected ranges would, we believe, have judge how durable—or meaningful—this or forced a far steeper climb in short-term interthat large increase in M-1 was likely to be. est rates than actually has occurred since Often in the past, spurts in monetary growth April. This could have proved destructive to such as occurred in April and July of this the smooth functioning of financial markets year have been followed by strong reversals. and might eventually have brought serious Things did not quite happen that way this injury to our economy. year. On the other hand, a determined effort by Besides, it was virtually impossible even 3 the Federal Reserve System to prevent any months ago to isolate with any confidence rise in interest rates during recent months the causes of the sudden spurt in monetary would have produced—in the face of the credit growth. While still somewhat obscure, the pressures that have been experienced—a rate forces at work have now become clearer. At of monetary expansion well above the rise that practically every hearing thus far held under has actually occurred. That would have been House Concurrent Resolution 133, I have very damaging, for it would have practically called attention to the dynamism of financial destroyed any remaining hope of achieving technology. More specifically, I have kept mastery over the inflationary forces that now stressing that the growth of M-1 was for a time move our society. Indeed, the Federal Rebeing retarded by such things as the develop- serve might then have been viewed as havment of negotiable orders of withdrawal ac- ing transformed itself into an engine of counts, the newly enjoyed authority of busi- inflation—such as it was a generation ago nesses and State and local governments to when it reluctantly pursued a course of peghave passbook savings accounts, and the ging Government security prices. steadily increasing tendency of individuals The increase of short-term interest rates as well as corporations to carry at least a that has occurred since late April has thus part of their transactions balances in one or served to check what otherwise might well another type of income-earning asset. Such have been an explosion of the money supply. developments—which served to retard the By taking measures to curb the growth of growth of M-1 appreciably during 1975 and money, we have demonstrated that we remain 1976—appear to have waned considerably this alert to the dangers of inflation. As a conseyear. Econometric work done at the Board quence, long-term interest rates, which nowaindicates that within the past half year the days are extremely sensitive to expectations growth of M-1 moved back to something like of inflation, have remained substantially sta- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 Federal Reserve Bulletin • November 1977 ble. Had we not taken steps to bring the behavior of M-l might be interpreted as indimoney supply under control, I have little cating that the Federal Reserve was faltering doubt that fears of inflation would now be in its determination to lean against inflationary running stronger, and that long-term interest pressures. No such faltering has occurred, nor rates, which play such a significant role in is it likely to occur. October's sharp advance shaping investment decisions, would therefore of the wholesale price index should remind now be higher than they in fact are. In that everyone of the need for unrelenting efforts to event, of course, the continuance of economic contain the push of inflation. The resolve of expansion would be less secure. the Federal Reserve to undernourish and At the most recent meeting of the FOMC, weaken inflation remains undiminished. We held on October 18, we deliberated at length fully recognize that a powerful inflationary on the monetary growth aggregates that ap- bias has become embedded in our economic peared desirable in the coming year. For the life over many years and that general price period extending from the third quarter of this stability cannot therefore be restored quickly; year to the third quarter of 1978, the Commit- but we do not intend to depart from pursuing tee decided to retain the growth range of 4 to the maximum degree of monetary firmness 6V2 per cent for M-1 specified at the July consistent with our companion obligation to meeting. Some sentiment was initially ex- foster financial conditions that favor expanpressed for reducing the upper end of the M-l sion of job opportunities. band with a view to compensating for the I want to assure this committee that, in excessive growth that has been occurring. lowering the growth ranges for the broader Other members favored widening the M-l aggregates, we did not overlook the implicaband because of uncertainty as to whether the tions for thrift institutions and the borrowers basic relationship between money growth and they serve. The new upper ends of the ranges GNP was again changing. In the end, there for M-2 and M-3 are compatible, in our judgwas a consensus that the growth range previ- ment, with a substantial flow of new savings ously established for M-l should be retained into thrift institutions in the year ahead. These until more certain knowledge developed as to institutions are less vulnerable to deposit outthe relative importance of the influences now flows than they were in earlier years, since a conditioning M-l growth. very large and increasing portion of their However, in the case of the broader money liabilities now consist of longer-dated cerstock measures—which have been behaving tificates. Their earnings position has also more normally—the Committee decided to strengthened considerably, and they enjoy lower both the upper and the lower bounds of relatively large liquid assets and good capabilthe projected growth ranges by V2 of a per- ity to borrow if necessary. In short, even if centage point. Thus, the 12-month growth deposit inflows were to slow appreciably in range for M-2—a measure of money that in- the coming year, the ability of these institucludes, in addition to M-l, savings and tions to support the homebuilding industry will consumer-type deposits at commercial probably remain strong. banks—was set at 6V2 to 9 per cent. That for I would like to emphasize one additional M-3—a still broader measure, which includes point before concluding this statement. The the deposits of thrift institutions as well—was objective of the administration and the Federal set at 8 to KM per cent. Reserve to achieve better price performance A crucial consideration in lowering the in our country is obviously not being helped longer-term ranges for the broader aggregates by the recent depreciation of the dollar against was the Committee's wish to reaffirm its intent foreign currencies. A cheaper dollar in foreign of gradually bringing down the growth of the exchange markets spells higher costs of immonetary aggregates to rates compatible with ported goods—and these now have a much reasonable price stability. Such action seemed larger role in our domestic markets than they particularly appropriate at a time when the did a decade or two ago. Depreciation of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 993 dollar can also cause serious international ency toward improvement. That means, first difficulties since the dollar is a store of value of all, that we need to adopt an energy policy not only for foreign central banks but also for that relies less heavily on imports of oil. It multinational corporations and individuals of means, secondly, that we must have a busiwealth all over the world. We dare not, there- ness environment that is hospitable to new fore, be complacent about the current depre- investments. And it means, finally, that reciating tendencies of the dollar. sponsible monetary, fiscal, and structural It is not easy to counter these tendencies at policies are required to protect our internaa time when our trade deficit has become tional price competitiveness. In short, and enormous—a phenomenon that partly reflects fortunately, these international considerations the more advanced degree of economic re- reinforce our basic domestic needs. covery achieved in this country than abroad. We at the Federal Reserve, I need hardly To some extent imbalance in our foreign trade tell you, will continue to devote our energies will be self-correcting as economic activity to the maintenance of a sound dollar—a dollar strengthens abroad, but we surely should seize that is both strong here at home and strong every opportunity to help accentuate any tend- abroad. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON SEPTEMBER 20, 1977 1. Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services—which had expanded at an annual rate of 6.2 per cent in the second quarter, according to revised estimates of the Commerce Department—had grown less rapidly in the current quarter. The rise in average prices—as measured by the fixedweighted price index for gross domestic business product— appeared to have slowed from that of the second quarter, now estimated to have been at an annual rate of 7.5 per cent. Staff projections suggested that real GNP would grow moderately over the year ahead, although at a slightly lower rate than projected a month earlier. The projections also suggested that the rate of increase in prices, while below that in the first half of 1977, would remain high. According to staff estimates, the third-quarter slowing of growth in real GNP was accounted for by a sharp cutback in the rate of business inventory accumulation, following a large increase in the second quarter, as businesses attempted to prevent an excessive build-up of stocks. It was estimated that growth in final sales of goods and services in real terms was about the same in the third quarter as in the second. Staff projections of moderate growth in real GNP over the year ahead reflected expectations that growth in consumer spending would pick up gradually; that expansion in business capital outlays would be sustained; and that increases in State and local government purchases of goods and services would remain large, in part because of the stimulus of increased Federal public works and job-related programs. It was still anticipated that the expansion in residential construction activity would taper off as the period progressed and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 995 that slow export growth combined with a somewhat faster rise in imports would exert a drag on domestic economic activity over much of the year ahead. In August industrial production declined by 0.5 per cent, about as much as it had risen in July. A substantial part of the decline was accounted for by curtailments in automobile assemblies and electric utility power generation, both of which had increased sharply in July, but decreases in output were widespread. Production of iron ore was reduced by a strike. Capacity utilization in manufacturing also declined in August, for the most part reflecting decreases in the transportation equipment and nonelectrical machinery industries. Utilization in the materials-producing industries edged down to 82.7 per cent. This rate was appreciably lower than at the comparable stage of other recent business expansions, in part because of larger supplies from foreign sources. In association with the decrease in industrial output, employment in manufacturing fell in August—returning to the level of May—and the length of the average workweek declined for the second successive month. Total nonfarm payroll employment increased moderately, however, as employment outside the manufacturing sector continued to grow. According to the household survey, total civilian employment also rose moderately, but the labor force expanded sharply and the unemployment rate increased 0.2 of a percentage point to 7.1 per cent—the same level as in June. From April through August the unemployment rate fluctuated between 6.9 and 7.1 per cent. The rise in personal income accelerated in July, as a result of a cost-of-living increase in social security payments, and then slowed in August to about the same rate as in May and June. In August total wage and salary disbursements increased little. Disbursements expanded substantially in government, reflecting gains in State and local payrolls attributable to a rise in Federally sponsored public service jobs, but declined in manufacturing and gained little in other industries. The dollar value of retail sales had increased 1.7 per cent in August, according to the advance report. The August level of sales was somewhat above the earlier peak reached in March and moderately above the average for the second quarter. Sales gains in August Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 Federal Reserve Bulletin • November 1977 were widespread among types of outlets and were particularly strong at furniture and appliance stores, apparel stores, and gasoline stations. Sales of new automobiles, which had fallen in July, recovered almost to the high rate that had prevailed throughout the second quarter. The adjustment in inventories proceeded in July, when the book value of nondurable goods stocks actually declined. The increase in the book value of total manufacturing and trade stocks was substantially below the monthly-average increases in the first two quarters of 1977. Private housing starts rose appreciably in July to an annual rate of nearly 2.1 million units and then edged down in August to a rate slightly above 2.0 million. The average for the 2 months was 7 per cent above the average for the second quarter, in large part because of gains in starts of multifamily units. The Department of Commerce survey of business plans taken in late July and August suggested that spending for plant and equipment would be 13.3 per cent greater in 1977 than in 1976; the survey taken in May had suggested a year-to-year gain of 12.3 per cent. The latest survey implied average increases of somewhat less than 3 per cent in the third and fourth quarters of the year, compared with 3Vi per cent in the first two quarters. New orders for nondefense capital goods, which had increased about 5 per cent in June, were indicated by the partial sample estimate to have fallen about 10 per cent in July. Much of the rise and subsequent decline was accounted for by orders for commercial aircraft, apparently for export. The level of new orders in July was well below the average for the second quarter and about equal to the average for the first quarter. Manufacturers' shipments of nondefense capital goods expanded in July, and unfilled orders for such goods leveled off after having risen during the preceding 6 months. Contract awards for commercial and industrial buildings—measured in terms of floor space—declined in July and were moderately below the average for the second quarter. The index of average hourly earnings for private nonfarm production workers, which had increased substantially in July according to revised data, advanced little in August. Over the first 8 months of 1977 the index rose at an annual rate of 6.8 per cent; over the 12 months of 1976 the index had risen 6.9 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 997 The wholesale price index for all commodities, which had declined in June and changed little in July, was about unchanged again in August. Average prices of farm products and foods declined sharply for the third successive month and were back down to about the level of December 1976. Average prices of industrial commodities continued to rise at a more moderate pace than in the latter part of 1976 and the first 4 months of 1977. The consumer price index rose 0.4 per cent in July, considerably less than in any month in the first half of 1977. Retail prices of foods changed little, after having increased about 7 per cent over the preceding 6 months. Average prices of nonfood commodities also changed little in July, in part because of reductions for gasoline and used cars, but prices of services continued to rise at an annual rate of about 10 per cent. The weighted-average exchange rate for the dollar against leading foreign currencies recovered further over the inter-meeting period and returned to the level of late June. During the period the Swedish krona was devalued by 10 per cent and was withdrawn from the European "snake" arrangement; the Norwegian and Danish kroner were devalued by 5 per cent within that arrangement. Upward pressure on sterling intensified, and the Bank of England intervened in the market to maintain the exchange rate for the pound against the dollar. The U.S. foreign trade deficit declined in July from the record level of June and was about equal to the average for the second quarter. Imports of petroleum and products fell, following an increase of about 20 per cent in June. Inflows of capital, both private and foreign official, were sizable in July. At U.S. commercial banks, growth in total credit accelerated during August to a rate somewhat above the average for the first 7 months of 1977. Growth in total loans remained at the advanced pace of July, while bank holdings of U.S. Treasury securities declined much less than in July and holdings of other securities continued to increase moderately. Expansion of business loans picked up from the reduced rate in July. Outstanding commercial paper issued by nonfinancial businesses increased in August, but by somewhat less than it had declined in July. Growth in the narrowly defined money stock (M-l) slowed to an annual rate of about 5Vz per cent in August from the July rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 Federal Reserve Bulletin • November 1977 more than 18 per cent. Nevertheless, growth over the 2-month period, at an annual rate of almost 12 per cent, was more rapid than the advanced rate of the second quarter. Growth in the more broadly defined measures of money, M-2 and M-3, also slowed during August—to annual rates of 6.4 and 11.2 per cent, respectively—mainly because of deceleration of growth in the demand deposit and currency components common to all three measures of money. Expansion of the bank time and savings deposits included in the broader aggregates also slowed substantially, but inflows of deposits to nonbank thrift institutions remained strong. Over the July-August period, M-2 and M-3 grew at annual rates of 11.6 and 13.7 per cent, respectively. At its August meeting the Committee had decided that during the August-September period growth in M-1 and M-2 within ranges of 0 to 5 per cent and 3 to 8 per cent, respectively, would be appropriate. It had judged that these growth rates were likely to be associated with a weekly-average Federal funds rate of about 6 per cent. The Committee had agreed that if growth rates in the aggregates over the 2-month period appeared to be deviating significantly from the midpoints of the indicated ranges, the operational objective for the weekly-average Federal funds rate should be modified in an orderly fashion within a range of 5% to 6lA per cent. Data that had become available in the weeks immediately following the August FOMC meeting suggested that over the August- September period M-l was growing at a rate in the upper half and M-2 at a rate near the midpoint of their respective ranges. Accordingly, the System Account Manager continued to seek a Federal funds rate of around 6 per cent. Near the end of the inter-meeting period, growth in M-l for the 2-month period appeared to be exceeding the upper limit of its range and growth in M-2 appeared to be in the upper half of its range. Therefore, the Manager sought a firming in the Federal funds rate to around 6V6 per cent, and the rate averaged close to that level in the 5 days just prior to this meeting of the Committee. During the initial weeks of the inter-meeting period, market interest rates declined somewhat from the levels that had prevailed in mid-August. But in early September, when it became evident that growth in the monetary aggregates had not receded so much in August as market participants had anticipated and that the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 999 funds rate was remaining above 6 per cent, other market interest rates turned up. Over the inter-meeting period, short-term rates posted net advances ranging up to about lA of a percentage point. Long-term rates, however, changed little on balance. Early in the inter-meeting period major commercial banks raised their prime rate on business loans lA of a percentage point to 7 per cent, and in the second week of September most of them raised the rate to llA per cent. Stock prices declined further during the inter-meeting period. Just prior to the September meeting, several major indexes of stock prices reached their lowest levels since the end of 1975 and early 1976. On August 29 the Board of Governors of the Federal Reserve System announced its approval of action by directors of five Federal Reserve Banks raising the discount rate from 5lA to 53A per cent, effective August 30; on August 30 and September 1 increases at the remaining Reserve Banks were approved. In announcing the approval, the Board stated that its action was intended as a technical move for the purpose of bringing the discount rate into better alignment with other short-term interest rates and that the action was taken to reduce the incentive for member banks to borrow from the Federal Reserve. Daily-average borrowings had risen from $323 million in July to $1,084 million in August; in the week ending August 24, they had reached $1,665 million. In the week ending September 14, daily-average borrowings were down to $337 million. During the inter-meeting period the U.S. Treasury raised $6.3 billion of new money, including $1.5 billion in conjunction with a regular rollover of $1.9 billion of maturing 2-year notes and $3.0 billion through a new offering in the regular cycle of 4-year notes. Also, the Treasury sold $1.8 billion of short-dated, cashmanagement bills, which it refinanced at maturity by adding to the regular weekly bill auctions. This marked the Treasury's first sizable use of the bill market for new money since late 1976. Gross offerings of new State and local government bonds increased substantially in August. Part of the large volume consisted of offerings that had originally been scheduled for September and then were advanced to August. Advance refunding of outstanding municipal issues rose to a record level. The volume of new publicly offered corporate bonds declined in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 Federal Reserve Bulletin • November 1977 August, in large part for seasonal reasons. As in July, the bulk of the new offerings were from lower-rated issuers, reflecting the continuing reduction of risk premiums for such securities. Downward pressure on risk premiums in the public market apparently reflected some continuing spillover of funds from the private placement market—where the supply of investable funds being provided by insurance companies and pension funds remained large. Growth in mortgage credit also remained strong in August. Mortgage loans outstanding at commercial banks continued to rise at a rapid pace, and new issues of GNMA-guaranteed, mortgagebacked securities increased further. At savings and loan associations the record volume of mortgage commitments outstanding at the end of July suggested that mortgage holdings had risen substantially further. Nevertheless, the liquidity position of these associations remained comfortable, reflecting the strong growth in deposits and large inflows of funds from mortgage repayments. In the Committee's discussion of the economic situation and outlook, the members agreed—as they had at the August meeting— that the expansion was likely to continue for some time, and most of them expected that real GNP would grow at about the moderate pace projected by the staff. However, some members expressed doubts about the vigor of the expansion. One member reiterated a view that he had expressed at the August meeting, to the effect that growth was likely to fall short of the rate projected for the balance of this year and then to exceed the projected rates in the first half of 1978. It was suggested during the discussion that recent developments bore some resemblance to those in 1976. Last year, it was recalled, progressive diminution in the quarterly rates of growth in real GNP had fostered concern that the expansion might be coming to an end and had given rise to recommendations for a stimulative fiscal program. It was noted, however, that the 1976 slowing had been caused by an inventory adjustment; final sales of goods and services had been strong throughout the year. It was observed that a similar adjustment of inventories had begun in the third quarter of this year and that once again the expansion in real final sales had been maintained while growth in total real GNP had slowed. In view of the continued strength in final takings, it was suggested that the recent cutbacks in production and in employment in some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 1001 activities were likely to be temporary. It was also observed that the performance of the recent unemployment statistics might have been affected by inadequate seasonal adjustments. In the discussion, members offered reasons for expecting greater or less strength in business activity over the next year or so than suggested by the staff projections. Thus, some doubts were expressed that growth in consumer spending would pick up as much as projected and, in particular, that over the year ahead sales of new automobiles would increase further from the currently advanced levels. These doubts were attributed in part to the surge in spending for durable goods and the substantial rise in consumer debt that had already occurred. It was also suggested that expansion in consumer spending might be dampened by the adverse effect that the decline in stock prices had had on wealth. On the other hand, it was noted that rising real estate values had tended to increase consumers' wealth, and that the liquidity of real estate holdings—while less than that of market securities—had been increasing as a result of the greater ease with which homeowners could refinance first mortgages and obtain second mortgages. The comment was made that many second mortgages were being undertaken for the purpose of refinancing outstanding instalment debt. Some concern was expressed about the sluggishness of economic activity in other major industrial countries, particularly in Europe, and about its effect on net exports and thus on domestic economic activity. However, the view was also expressed that in some major countries the foundation for improvement in activity was being laid by a slowing of the rise in wages and prices, a reduction of growth in money supplies, and a strengthening of external positions. Business fixed investment was described as a sector whose contribution to over-all economic growth might well be greater than projected, as businessmen responded to further growth in economic activity and increases in capacity utilization. Moreover, business confidence was said to have increased somewhat, although it was still being adversely affected by uncertainties concerning Government tax and energy policies. It was suggested that the contribution to over-all economic growth from Federal Government expenditures also could be greater than projected. Concern was expressed about the outlook for both unemployment and prices. It was remarked that even if real GNP grew at a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 Federal Reserve Bulletin • November 1977 moderate pace over the next year, little progress would be made in reducing the unemployment rate—which was still significantly above the level that might be regarded as "full employment," even if that level were judged for structural reasons to be considerably higher than in the past. Moreover, one member observed, recent experience had shown that high unemployment did not greatly reduce the rate of inflation, and the staff projections did suggest persistence of both a rapid rate of inflation and a high rate of unemployment. To a few members, those prospects for unemployment and prices indicated that active public discussion of some form of an incomes policy would be appropriate. Others observed that an incomes policy both workable and likely to have fairly wide support had not yet been devised, and also that an effort to institute such a policy probably would have an adverse effect on business fixed investment. One member expressed the view that the longer-run outlook for unemployment and inflation called for a shift in the policy mix toward a firmer monetary policy—to limit growth of liquidity—and an easier fiscal policy. At its July meeting the Committee had agreed that from the second quarter of 1977 to the second quarter of 1978 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M-l, 4 to 6V2 per cent; M-2, 7 to W2 per cent; and M-3, SV2 to 11 per cent. The associated range for the rate of growth in commercial bank credit was 7 to 10 per cent. It was agreed that the longer-run ranges, as well as the particular aggregates for which such ranges were specified, would be subject to review and modification at subsequent meetings. In their discussion at this meeting of policy for the immediate future, Committee members differed in their views on the appropriate response to the recent rapid growth in the monetary aggregates. It was noted that growth in M-1 and M-2 had not slowed so much in August as had been expected and that it apparently was picking up somewhat in September—making it likely that the rates of monetary expansion in the third quarter would be high relative to the Committee's longer-run ranges. Some members thought that the Committee's primary objective in the period immediately ahead should be to resist continued rapid expansion in the aggregates, in light of the implications of such expansion for inflation and inflationary expecta- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 1003 tions. On the other hand, some members advocated avoiding substantial increases in interest rates at present, in light of their doubts about the economic outlook. It was also noted that the recent high rate of growth in M-1 might represent a return to a more typical relationship between that rate and the growth rate in nominal GNP—following a period in which the demand for money had been held down by changes in financial practices—and accordingly that it might not warrant the kind of policy response that would be appropriate under other circumstances. Most members, however, were of the opinion that the Committee could not afford to ignore either the uncertainties in a generally favorable economic outlook or the recent high rates of monetary growth, and they favored finding some middle ground. These differences in members' views were reflected in their preferences for operating specifications for the period immediately ahead. For the annual rate of growth in M-l over the September- October period, most members favored a range with a lower limit of 2 or 3 per cent and an upper limit of 7 or 8 per cent. For M-2, most favored a range of 4 to 8 or 4 to 9 per cent. However, one member, who advocated maintaining relatively stable money market conditions, preferred ranges of 2 to 9 per cent for M-l and 5Vi to Wi per cent for M-2. Another member favored a range of 0 to 5 per cent for M-l. With respect to the Federal funds rate, a variety of views were expressed as to both the objective toward which operations should be directed initially and the degree of leeway that should be provided during the inter-meeting period in the event that the aggregates appeared to be deviating significantly from the midpoints of the specified ranges. Most members favored directing operations initially toward a funds rate of 6Vs per cent—the prevailing level—or 6V4 per cent, but some sentiment also was expressed for a higher initial objective. In view of the rapid monetary growth over recent months, the members in general believed that it would be desirable to avoid any significant decline in the weekly-average Federal funds rate from its current level, and almost all favored 6 per cent for the lower limit of the range. The view was expressed that a weeklyaverage Federal funds rate above 6V2 per cent should not be sought before the Committee had had an opportunity for further consultation, and a majority favored 6V2 per cent as the upper limit for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 Federal Reserve Bulletin • November 1977 range. There was, however, considerable sentiment for an upper limit of 6% per cent. At the conclusion of the discussion the Committee agreed that growth in M-1 and M-2 over the September-October period at annual rates within ranges of 2 to 7 and 4 to 8 per cent, respectively, would be appropriate. It was understood that in assessing the behavior of the aggregates, the Manager should give approximately equal weight to the behavior of M-1 and M-2. The Committee decided that operations should be directed initially toward a weekly-average Federal funds rate of 6lA per cent. The members agreed that if growth rates 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 6 to 6V2 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 less rapidly in the current quarter than in the second quarter. In August industrial output declined by about as much as it had risen in July. Employment increased moderately but the labor force rose more and the unemployment rate edged up to 7.1 per cent, the same as in June. The dollar value of total retail sales, which had turned up in July, rose appreciably in August. The wholesale price index for all commodities was about unchanged; average prices of farm products and foods declined sharply for the third successive month, and average prices of industrial commodities continued to rise at a more moderate pace than in the early months of 1977. So far this year the index of average hourly earnings has advanced at about the same pace as it had on the average during 1976. The weighted average exchange rate for the dollar against leading foreign currencies has recovered further in recent weeks, returning to the level of late June. In July the U.S. foreign trade deficit was at about the second-quarter rate, and there were sizable net inflows of foreign private and official capital. Growth in M-1 and M-2 slowed in August from the exceptionally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 1005 rapid rates in July. Expansion of both demand deposits and time and savings deposits at banks slackened. Growth in M-3 also slowed, although inflows to nonbank thrift institutions remained strong. Business short-term borrowing increased somewhat from the reduced pace in July, but remained below the volume of preceding months. Short-term interest rates, which had risen appreciably in early August, most recently have advanced somewhat further. Yields on longer-term market securities, however, have changed little on balance in recent months. Federal Reserve discount rates were increased from 5!4 to 53A per cent in late August and early September, and member bank borrowings receded from the high levels of the latter part of August. 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 July 19, 1977, the Committee agreed that growth of M-l, M-2, and M-3 within ranges of 4 to 6V2 per cent, 7 to 9Vi per cent, and 8V2 to 11 per cent, respectively, from the second quarter of 1977 to the second quarter of 1978 appears to be consistent with these objectives. These ranges are subject to reconsideration at any time as conditions warrant. The Committee seeks to encourage near-term rates of growth in M-l and M-2 on a path believed to be reasonably consistent with the longer-run ranges for monetary aggregates cited in the preceding paragraph. Specifically, at present, it expects the annual growth rates over the September-October period to be within the ranges of 2 to 7 per cent for M-l and 4 to 8 per cent for M-2. In the judgment of the Committee such growth rates are likely to be associated with a weekly-average Federal funds rate of about 6lA per cent. If, giving approximately equal weight to M-l and M-2, it appears that growth rates over the 2-month period will deviate significantly from the midpoints of the indicated ranges, the operational objective for the Federal funds rate shall be modified in an orderly fashion within a range of 6 to 6V2 per cent. If it appears during the period before the next meeting that the operating constraints specified above are proving to be significantly inconsistent, the Manager is promptly to notify the Chairman who will then decide whether the situation calls for supplementary instructions from the Committee. Votes for this action: Messrs. Burns, Volcker, Coldwell, Gardner, Guffey, Jackson, Mayo, and Par- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 Federal Reserve Bulletin • November 1977 tee. Votes against this action: Messrs. Lilly, Morris, Roos, and Wallich. Messrs. Lilly and Wallich dissented from this action because it allowed for somewhat more firming in money market conditions than they thought was appropriate at present in view of their judgment that the economic situation was not very strong. They also felt that the rapid monetary growth over recent months might represent an increase in the public's demand for money in relation to growth in GNP of a kind that should be accommodated. Mr. Lilly believed, in addition, that further tightening in money market conditions would not be effective in dealing with the underlying structural inflation. Messrs. Morris and Roos dissented on the ground that the policy adopted by the Committee represented an inadequate response to the rapid rates of monetary growth over recent months, which in their view were not compatible with a healthy economy over the longer run. Mr. Roos felt that, if the Committee did not take action now that would assure a reduction in the rate of growth in M-1, the rate of inflation would accelerate and more drastic action would need to be taken later on. 2. Authorization for Domestic Open Market Operations On September 30, 1977, Committee members voted to increase from $2 billion to $3 billion the limit on Federal Reserve Bank holdings of special short-term certificates of indebtedness purchased directly from the Treasury, specified in paragraph 2 of the authorization for domestic open market operations, effective immediately. Votes for this action: Messrs. Burns, Cold well, Gardner, Guffey, Jackson, Lilly, Mayo, Partee, Roos, Wallich, Eastburn, and Timlen. Votes against this action: None. (Messrs. Eastburn and Timlen voted as alternates for Messrs. Morris and Volcker, respectively.) This action was taken on the recommendation of Chairman Burns. The Chairman had advised the Committee that the current temporary debt ceiling of $700 billion would expire at midnight on September 30, 1977; that unless congressional action to extend the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FCMC 1007 temporary ceiling were completed before that time, the ceiling would revert to its permanent level of $400 billion; and that under the temporary ceiling, the Treasury had leeway to borrow an additional amount between $2 billion and $3 billion and had requested that the System stand ready to purchase that day directly from the Treasury such amounts of special short-term certificates of indebtedness as the Treasury might be able to issue under the temporary ceiling. ifc ^ ^ ^ 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

1008 Law Department Statutes, regulations, interpretations, and decisions INTEREST ON DEPOSITS Effective October 1, 1977, Section 1 of Regulation V (Loan Guarantees for Defense Production) The Board of Governors has approved amend- of the Board of Governors is amended by deleting ments to its Regulation Q relating to penalties for "Energy Research and Development Administraearly withdrawals. tion" and substituting "the Department of Energy" after "the Department of Agriculture". Effective December 1, 1977, Section 217.4(d) is amended to read as follows: RULES REGARDING AVAILABILITY OF INFORMATION SECTION 217.4—PAYMENT OF TIME DEPOSITS BEFORE MATURITY RULES OF PROCEDURE The Board of Governors has amended its Rules Regarding Availability of Information and Rules of (d) Penalty for Early Withdrawals.*** Any Procedure to conform the rules to current practices. amendment of a time deposit contract that results in an increase in the rate of interest paid or in a 1. Section 261.3(a) is amended by revising the last reduction in the maturity of the deposit constitutes sentence to read as follows: a payment of the time deposit before maturity.*** (1) where a member bank pays all or a portion of a time deposit upon the death of any owner of the The Board also publishes in the Federal Register time deposit funds;113 notice of receipt of applications pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. * * * 1842), and notices of formal hearings ordered by the Board. LOAN GUARANTEES 2. Section 262.3(g) (4) is amended by deleting FOR DEFENSE PRODUCTION the words, "Each such Order is published in the Federal Register." The Board of Governors has amended its Regulation V to reflect that the Department of Energy now RULES REGARDING possesses the authority formerly held by the En- DELEGATION OF AUTHORITY ergy Research and Development Administration to guarantee V-loans. In order to expedite and facilitate the performance of its functions, the Board of Governors has delegated to the Secretary of the Board authority to approve certain conforming changes in the Board's 113 For the purposes of this provision, an "owner" of time deposit funds is any individual who at the time of his or her death outstanding rules and regulations. has full legal and beneficial title to all or a portion of such funds or, at the time of his or her death, has beneficial title to all or a portion Effective October 5, 1977, § 265.2(a)(16) is of such funds and full power of disposition and alienation with respect thereto. amended to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1009 SECTION 265.2—SPECIFIC Federal Reserve Act (12 U.S.C. § 248(i)) to con- FUNCTIONS DELEGATED TO BOARD form references to administrative positions or units in outstanding rules and regulations of the Board EMPLOYEES AND FEDERAL RESERVE BANKS with Changes in the administrative structure of the Board, the Government of the United States and (a) The Secretary of the Board (or, in the agencies thereof, and to conform citations and Secretary's absence, the Acting Secretary) is aureferences in outstanding rules and regulations of thorized: the Board with other regulatory or statutory * * * * * changes adopted or promulgated by the Board, the (16) Under the provisions of section 1 l(i) of the Government of the United States and agencies thereof. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 Applicant's principals, the Board has determined to OF BANK HOLDING COMPANY ACT resume processing of the application and further orders that the determination whether to approve Benson Bancshares, Inc., this application be made on the complete record as Benson, Minnesota it now stands. Applicant, a nonoperating corporation with no Order Approving subsidiaries, was organized for the purpose of be- Formation of Bank Holding Company coming a bank holding company through the acquisition of Bank. Bank, with deposits of $21.6 mil- Benson Bancshares, Inc., Benson, Minnesota, lion,1 is the largest of 11 banking organizations in has applied for the Board's approval under § 3(a)(1) the relevant market2 and controls approximately of the Bank Holding Company Act (12 U.S.C. 17.9 per cent of the total commercial bank deposits § 1842(a)(1)) of formation of a bank holding com- in the relevant market. Upon acquisition of Bank, pany by acquiring 88 per cent (or more) of the Applicant would control the seventy-first largest voting shares of Swift County Bank, Benson, Min- banking organization in Minnesota, holding 0.13 per nesota (tkBank"). cent of the total deposits in commercial banks in the Notice of the application, affording opportunity State. Inasmuch as the proposed transaction is for interested persons to submit comments and essentially a reorganization whereby the shareviews, has been given in accordance with § 3(b) of holders who presently control Bank directly will the Act. The time for filing comments and views has control Bank indirectly through Applicant, and expired, and the Board has considered the applica- since Applicant presently has no subsidiaries and tion and all comments received in light of the engages in no activities, consummation of the profactors set forth in § 3(c) of the Act (12 U.S.C. posal would not eliminate existing or potential § 1842(c)). competition, or increase the concentration of bank- By Order of June 7, 1976 (62 Federal Reserve ing resources in any relevant market. Therefore, BULLETIN 611 (1976)), the Board suspended pro- competitive considerations are consistent with apcessing of the application pending receipt of advice proval of the application. from the Securities and Exchange Commission as The financial resources of Applicant, which are to whether certain facts in the record of the applica- dependent upon those of Bank, are considered to be tion gave rise to a violation of the provisions of the Securities Exchange Act of 1934. (15 U.S.C. § 78(a) et seq.) The Securities and Exchange Commission having expressed no formal opinion regarding the 1A11 banking data are as of December 31, 1976. 2The relevant banking market is approximated by Swift County question of a violation of the securities laws by and most of Pope County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1010 Federal Reserve Bulletin • November 1977 generally satisfactory, and future prospects of both acquiring bank holding company. In assessing the Applicant and Bank appear favorable. Although managerial resources of an applicant, the Board Applicant would incur some debt as a result of this must consider all of the factors that bear upon the proposal, it appears that Applicant's income will be competence, quality and integrity of the managesufficient to meet its debt service requirements ment of an applicant.3 without adversely affecting the financial condition Certainly corporate insiders who seek to purof Bank. chase shares of the company from shareholders Prior to February 15, 1973, the last known sale of who do not have comparable access to material Bank's shares was at a price of $250 per share. No information about the company have a special active market existed for shares of Bank, which responsibility to deal fairly with those whose shares were then held by 37 persons. On February 15, they wish to buy. This responsibility is particularly 1973, Bank's principal shareholders and their re- heavy where, as in this case, the company is not lated interests held 56 per cent of Bank's shares. On subject to periodic reporting requirements under that date, they offered, by means of a letter to the securities laws and publicly available informa- Bank's shareholders, to purchase the stock of Bank tion about the company is limited. Under such for $300 per share. The letter did not state that the circumstances there is a high potential for abuse. book value (excluding reserves) of Bank's stock at Although the Board does not bear primary responthat time was $467 per share. Bank's shareholders sibility for enforcing the securities laws, it may, in had, however, received a copy of Bank's statement assessing the managerial resources of a bank holdof condition as of year-end 1972 on January 10, ing company applicant, take account of evidence 1973. As a result of the February 1973 offer, Bank's indicating that management has violated legal or principals acquired an additional 5 per cent of fiduciary obligations of fair dealing with minority Bank's stock. Shortly thereafter, Bank's manage- shareholders. Even though the evidence does not ment reduced Bank's dividend from $10 per share establish a violation of law, it may establish a to $5 per share; a suggestion for a reduction in pattern of conduct that has a significant adverse dividends was made to the Bank by an examiner bearing on the managerial factor, and the Board representing the Federal Deposit Insurance Corpo- may deny the application on that ground alone. ration. The conduct of Applicant's principals may be On February 11, 1974, a second letter from construed, depending upon the inferences one Bank's principals informed Bank's shareholders draws, in different lights. In one light, it may appear that Bank's principals intended to form a bank that Applicant's principals offered a more than holding company and offered to purchase the re- adequate price for unmarketable stock and were maining shares of Bank for $400 per share. This merely receptive to supervisory suggestions in resecond offer was made without disclosing that the ducing Bank's dividend. In another light, however, book value (excluding reserves) of Bank's stock it may appear that Applicant's principals made an was $522 per share. Again, a copy of Bank's offer at an unfairly low price in relation to book statement of condition had been mailed to Bank's value, intentionally concealed the book value of shareholders a month earlier. As a result of the Bank's stock, and manipulated Bank's dividend to second tender offer, Bank's principals increased encourage acceptance of their offer. In this worse their holdings to 90 per cent of the outstanding light, their conduct may be construed as overreachshares of Bank. ing in the treatment of Bank's minority share- During 1974, following the second tender offer, holders,4 and would reflect so adversely upon the Bank recovered on a number of loans that had quality and integrity of the proposed bank holding previously been written off and also achieved the company's management that the Board would be highest earnings in its history. Bank then quad- obliged to deny the application on the basis of rupled its dividend to $20 per share. In the fall of Applicant's managerial resources. 1974, while this application was being prepared, Bank converted from a cash method of accounting to the accrual method of accounting. The effect of that change, implemented in early 1975, was to 3See the Board's Order denying the application of Florida increase the book value of Bank's stock by approx- National Bank of Florida, Inc., to acquire the Citizens Bank of Bunnell (62 Federal Reserve BULLETIN 696 (1976)). imately $250 per share before tax considerations. 4In Western Bancshares, Inc. v. Board of Governors of the Among the factors enumerated in § 3(c) of the Federal Reserve System, 480 F.2d 749 (10th Cir., 1973), the U.S. Court of Appeals held that the Board could not deny an applica- Act that the Board must consider in acting on tion to form a bank holding company solely because unequal offers applications is the managerial resources of the (Footnote continued on next page) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1011 The facts in the record of this application present Voting for this action: Vice Chairman Gardner and a very close case. It is clear that shareholders of Governors Jackson and Partee. Voting against this action: Bank were not given sufficient facts upon which to Governor Lilly. Absent and not voting: Chairman Burns and Governors Wallich and Cold well. base a fully informed decision as to the sale of their shares of Bank's stock. However, on the basis of (Signed) GRIFFITH L. GARWOOD, the facts in the record of this application, including [SEAL] Deputy Secretary of the Board. the absence of any complaint by those shareholders who dealt with Applicant's principals5 and the absence of formal action by other agencies that Dissenting Statement of Governor Lilly have been advised of this matter, the Board has concluded that evidence sufficiently establishing The Board's majority and I differ significantly in conduct on the part of Applicant's proposed man- our respective judgments of the conclusions to be agement that would support an adverse finding with drawn from the evidence of record in this case respect to the managerial resources of Applicant is bearing on the managerial resources factor. Both as not present in this record. Moreover, other aspects expressed in the majority statement and as reaof applicant's managerial resources appear satisfac- sonably implied therefrom, serious questions are tory. Accordingly, on balance, the Board concludes presented regarding the conduct of Applicant's that considerations relating to managerial factors do proposed management—a number of which quesnot warrant denial of the application. tions remain unresolved. In particular, the record While no major changes are contemplated in reflects actions by Applicant's principals in the Bank's services, considerations relating to the con- matters of tender for Bank's stock and changes in venience and needs of the community to be served the Bank's dividend policy and accounting pracare consistent with approval of the application. tices that I find are sufficiently inequitable and Accordingly, it is the Board's judgment that con- lacking in arm's-length character as to warrant summation of the proposed transaction would be denial of the application. As the majority stated: consistent with the public interest and that the application should be approved. Even though the evidence does not establish a On the basis of the record, the application is violation of law, it may establish a pattern of approved for the reasons summarized above. The conduct that has a significant adverse bearing on the managerial factor, and the Board may deny the transaction shall not be made (a) before the thirtieth application on that ground alone. calendar following the effective date of this Order The conduct of Applicant's principals may be or (b) later than three months after the effective construed, depending upon the inferences one date of this Order, unless such period is extended draws, in different lights. . . . [I]t may appear that for good cause by the Board, or by the Federal Applicant's principals made an offer at an unfairly Reserve Bank of Minneapolis pursuant to delegated low price in relation to book value, intentionally authority. concealed the book value of Bank's stock, and By order of the Board of Governors, effective manipulated Bank's dividend to encourage accep- October 26, 1977. tance of their offer. In this . . . light, their conduct may be construed as overreaching in the treatment of Bank's minority shareholders . . . and would reflect so adversely upon the quality and integrity of the proposed bank holding company's management that the Board would be obliged to deny the application on the basis of Applicant's managerial resources. had been made to the majority and the minority shareholders of the bank to be acquired. The Board's Order denying that application (58 Federal Reserve BULLETIN 843 (1972)) was based upon On the foregoing rationale, I would deny the applithe proposition that the practice of making unequal offers to cation. shareholders was contrary to the public interest. The Board's Order did not consider the adverse implications such practices had upon the integrity of the principals of the bank involved and hence B.O.C. Corporation, upon the managerial resources of the proposed bank holding Sheridan, Wyoming company. Consequently, the Board does not view that decision as affecting its authority to consider how business practices employed by the principals of a bank holding company in acquiring Order Approving the stock of a bank reflect upon the managerial resources of the Acquisition of Bank proposed bank holding company. 5To the contrary, the record contains letters from each of three B.O.C. Corporation, Sheridan, Wyoming, a bank shareholders who dealt with Applicant's principals expressing satisfaction with the transaction. holding company within the meaning of the Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1012 Federal Reserve Bulletin • November 1977 Holding Company Act, has applied for the Board's subject proposal, the Board notes that Bank, which approval under § 3(a)(3) of the Act (12 U.S.C. opened for business in November 1974, was or- § 1842(a)(3)) to acquire all of the voting shares (less ganized de novo by principals of Applicant. In this directors' qualifying shares) of The Wyoming Secu- regard, shareholders of approximately 80 per cent rity Bank, Sheridan, Wyoming ("Bank"). of Applicant's shares are also shareholders of more Notice of the application, affording opportunity than 90 per cent of Bank's shares. Furthermore, the for interested persons to submit comments and president of Bank, who also serves as chairman of views, has been given in accordance with § 3(b) of its board of directors, is executive vice president of the Act. The time for filing comments and views has Applicant. Thus, the subject proposal essentially expired, and the Board has considered the applica- represents a reorganization of Bank's present tion and all comments received in light of the ownership. In view of these facts, the slight infactors set forth in § 3(c) of the Act (12 U.S.C. crease in concentration within the market that § 1842(c)). would result from approval of Applicant's proposal Applicant, the eighth largest banking organiza- is not considered serious. Moreover, during the last tion in Wyoming, controls one bank with deposits three years the Sheridan banking market has beof $46.7 million, representing 2.5 per cent of total come less concentrated due to the de novo entry of deposits in commercial banks in the State.1 Appli- the State's largest banking organization. With recant's acquisition of Bank would increase Appli- spect to the elimination of competition, it appears cant's share of total deposits only slightly and that little, if any, competition actually exists bewould not result in a significant increase in the tween Commerce Bank and Bank due to their concentration of banking resources in the State. common control and management. Although ap- Upon acquisition of Bank, Applicant's rank among proval of the subject proposal may lessen the other banking organizations in Wyoming would be possibility that the two banks would become indeunchanged. pendent of each other in the future, there is no Bank holds deposits of approximately $2.9 mil- evidence in the record to indicate that denial of the lion, representing 2.8 per cent of the total deposits application would increase the likelihood of such in commercial banks in the Sheridan banking mar- possibility in the foreseeable future. Principals of ket,2 and ranks as the smallest of five banks operat- Applicant are also principals of Security ing in the market. Applicant's sole subsidiary bank, Bancshares of Montana, Inc., Billings, Montana, a Bank of Commerce, Sheridan, Wyoming ("Com- holding company that controls three banks in Monmerce Bank"), is also located in the Sheridan tana, none of which operates in the Sheridan bankbanking market. It holds deposits representing 45.3 ing market. On the basis of all of the facts of record, per cent of the market's total deposits in commer- including the fact that Bank was organized de novo cial banks and ranks as the largest bank in the by principals of Applicant, the Board concludes market. The second largest bank in the market that the proposed acquisition of Bank by Applicant holds deposits representing 36.8 per cent total de- would not have significant adverse effects on composits in the market. With the two largest banking petition. organizations in the market together controlling The financial and managerial resources of Applimore than 82 per cent of the market's deposits, the cant, its subsidiary and Bank are regarded as satismarket can be characterized as concentrated. factory and the future prospects for each appear Consummation of the subject proposal would favorable. Thus, the banking factors are consistent result in an increase in the level of concentration of with approval. The financial strength of Applicant banking resources within the relevant market and would enable Bank to occupy new, permanent bank the elimination of some competition between facilities, which Bank would be unable to afford if it Commerce Bank and Bank. The Board normally were not to become a subsidiary of Applicant. considers such effects as adverse factors in acting These considerations relating to the convenience upon an application for approval of a proposed and needs of the community to be served may not acquisition. However, in its consideration of the be substantial, but they do lend some weight toward approval of the application and, in the Board's view, outweigh any slightly adverse effects on competition that might result from consummation JA11 banking data are as of December 31, 1976, and reflect of this proposal. Therefore, it is the Board's judgholding company formations and acquisitions approved thorugh September 30, 1977. ment that the proposed acquisition of Bank would 2The Sheridan banking market, the relevant geographic market be in the public interest and that the application for purposes of analyzing the competitive effects of the subject should be approved. proposal, is approximated by all of Sheridan County, Wyoming. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1013 On the basis of the record, the application is of one per cent and would make Applicant the 13th approved for the reasons summarized above. The ranking banking organization in Minnesota, without transaction shall not be made (a) before the thirtieth having a significant effect upon the concentration of calendar day following the effective date of this banking resources in the State. Order or (b) later than three months after the Bank is the 15th largest of the 113 banking effective date of this Order, unless such period is organizations in the Minneapolis-St. Paul banking extended for good cause by the Board, or by the market3 and controls approximately .5 of one per Federal Reserve Bank of Minneapolis pursuant to cent of the total deposits in commercial banks in the delegated authority. market. Applicant's subsidiary bank is also located By order of the Board of Governors, effective in the Minneapolis-St. Paul banking market and is October 27, 1977. the 22nd largest banking organization in the market and controls .3 of one per cent of total market Voting for this action: Vice Chairman Gardner and deposits. Upon consummation of the proposed ac- Governors Wallich, Coldwell, Partee, and Lilly. Absent quisition, Applicant's share of market deposits and not voting: Chairman Burns and Governor Jackson. would increase to .8 of one per cent and Applicant would thereby become the 10th largest banking (Signed) GRIFFITH L. GARWOOD, organization in the market. Although consumma- [SEAL] Deputy Secretary of the Board. tion of the proposal will result in the elimination of a Crystal State Agency, Inc., very slight amount of existing competition, in view of Minneapolis, Minnesota the relative sizes of the banks involved and the nature of the market, the amount is not significant. Order Approving Acquisition of Bank Moreover, the market is dominated by two large regional bank holding companies that together con- Crystal State Agency, Inc., Minneapolis, Min- trol two-thirds of market deposits, and while Applinesota, a bank holding company within the meaning cant's rank in the market will improve as a result of of the Bank Holding Company Act, has applied for the proposed acquisition, Applicant's share of marthe Board's approval under § 3(a)(3) of the Act (12 ket deposits will not increase significantly and U.S.C. § 1842(a)(3)) to acquire 94.1 per cent of the numerous other banking alternatives will remain in voting shares of Wayzata Bank & Trust Company, the market. In light of the above and other facts of Wayzata, Minnesota ("Bank"). record, the Board concludes that the proposed Notice of the application, affording opportunity acquisition will not have significant adverse comfor interested persons to submit comments and petitive effects. views, has been given in accordance with § 3(b) of The financial and managerial resources and futhe Act. The time for filing comments and views has ture prospects of Applicant, its subsidiary bank and expired, and the Board has considered the applica- Bank are regarded as satisfactory. Although Applition and all comments received in light of the cant will incur debt in connection with the subject factors set forth in § 3(c) of the Act (12 U.S.C. proposal, it appears that Applicant will be able to § 1842(c)). meet its debt service requirements without ad- Applicant, the 39th largest banking organization versely affecting the financial position of Bank. in Minnesota, controls one bank, Crystal State Thus, considerations relating to banking factors are Bank, Crystal, Minnesota, with total deposits of consistent with approval. Bank appears to have approximately $28.5 million, representing .2 of one adequately served the needs of the community in per cent of the total deposits in commercial banks in the past, and while Applicant does not contemplate the State.1 Applicant also operates a general insur- any immediate changes in the services offered by ance agency business.2 Acquisition of Bank ($41.9 Bank, the affiliation would enable Bank to offer its million in deposits) would increase Applicant's customers the indirect benefits of increased operatshare of Statewide commercial bank deposits by .3 ing efficiency. These operating efficiencies should result in an enhancement of the services offered by Bank and this benefit is viewed as outweighing any *A11 banking data are as of December 31, 1976, and reflect bank slightly adverse competitive effects that may be holding company formations and acquisitions approved through associated with this proposal. Accordingly, con- September 30, 1977. 2Applicant, a "company covered in 1970" as that term is venience and needs considerations are consistent defined in the Act, has conducted a general insurance agency business continuously since January 23, 1963. This activity is permanently "grandfathered" pursuant to § 4 (a)(2) of the Act, and the Board sees no reason to require Applicant to terminate 3The relevant market is approximated by the Minneapolis-St. this activity at this time. Paul RMA adjusted to include all of Carver County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1014 Federal Reserve Bulletin • November 1977 with approval of the proposed transaction. It is the Applicant already owned or controlled a majority of Board's judgment that the proposed transaction is the voting shares of Bank, and that, accordingly, in the public interest and that the application should prior Board approval was not required under § 3(a) be approved. of the Bank Holding Company Act (12 U.S.C. § On the basis of the record, the application is 1842(a)). In its original Registration Statement Apapproved for the reasons summarized above. The plicant indicated that it owned 50.4 percent of transaction shall not be made (a) before the thirtieth Bank's voting shares, including the voting shares it calendar day following the effective date of this owned directly and the shares it had transferred to Order or (b) later than three months after the directors subject to options. Upon being informed effective date of this Order, unless such period is by the Federal Reserve Bank of Chicago that the extended for good cause by the Board, or by the Board's approval of the transaction was required, Federal Reserve Bank of Kansas City pursuant to Applicant submitted this application. delegated authority. Applicant's retention of the additional shares of By order of the Board of Governors, effective Bank would not significantly affect competition October 26, 1977. between Bank and any competing institution, or diminish the ability of Bank to meet the conve- Voting for this action: Vice Chairman Gardner and nience and needs of its community. The financial Governors Wallich, Coldwell, Partee and Lilly. Absent and managerial resources and future prospects of and not voting: Chairman Burns and Governor Jackson. Applicant and Bank are generally satisfactory. It is the Board's judgment that the proposed transaction (Signed) GRIFFITH L. GARWOOD, [SEAL] Deputy Secretary of the Board. is in the public interest and that the application should be approved. On the basis of the record, the application is First Charter Financial Corporation, approved for the reasons summarized above. Syracuse, Indiana By order of the Board of Governors, effective October 26, 1977. Order Approving Retention of Bank Shares Voting for this action: Vice Chairman Gardner and First Charter Financial Corporation, Syracuse, Governors Wallich, Coldwell, Partee, and Lilly. Absent Indiana, a bank holding company within the mean- and not voting: Chairman Burns and Governor Jackson. ing of the Bank Holding Company Act, has applied for the Board's approval under § 3(a)(3) of the Act (Signed) GRIFFITH L. GARWOOD, (12 U.S.C. § 1842(a)(3)) to retain 2.7 per cent of the [SEAL] Deputy Secretary of the Board. voting shares of State Bank of Syracuse, Syracuse, Indiana ("Bank"). GEMA Financial Corporation Notice of the application, affording opportunity Chicago, Illinois for interested persons to submit comments and views, has been given in accordance with § 3(b) of Order Approving the Act. The time for filing comments and views has Formation of Bank Holding Company expired, and the Board has considered the application and all comments received in light of the GEMA Financial Corporation, Chicago, Illinois, factors set forth in § 3(c) of the Act (12 U.S.C. has applied for the Board's approval under § 3(a)(1) § 1842(c)). of the Bank Holding Company Act (12 U.S.C. At the time Applicant became subject to the Act § 1842(a)(1)) of formation of a bank holding comas a one-bank holding company, Applicant owned pany by acquiring 80 per cent or more of the voting directly 8,967 of Bank's voting shares (48.8 per shares of The Lawndale Trust and Savings Bank, cent), and held options to purchase 300 additional Chicago, Illinois ("Bank"). shares (1.6 percent) that it had transferred to bank's Notice of the application, affording opportunity directors in 1964 and 1968. Between 1971 and 1976, for interested persons to submit comments and Applicant increased its stock ownership in Bank views, has been given in accordance with § 3(b) of from 48.8 per cent to 51.5 per cent through exercise the Act. The time for filing comments and views has of these options, the purchase of 218 shares in five expired, and the Board has considered the applicatransactions, and receipt of five shares as a gift. tion and all comments received in light of the These options were apparently exercised and the factors set forth in § 3(c) of the Act (12 U.S.C. additional shares were acquired in the belief that § 1842(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1015 Applicant is a non-operating corporation or- By order of the Board of Governors, effective ganized for the purpose of becoming a bank holding October 20, 1977. company by acquiring Bank, which holds deposits of $34 million.1 Upon acquisition of Bank, Appli- Voting for this action: Vice Chairman Gardner and cant would control the 297th largest commercial Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. banking organization in the State of Illinois and approximately 0.05 per cent of total deposits in (Signed) GRIFFITH L. GARWOOD, commercial banks in that State. [SEAL] Deputy Secretary of the Board. Bank is the 168th largest bank in the relevant market,2 controlling approximately 0.08 per cent of the total deposits in commercial banks in that First of Iowa Bank Shares, Inc., market. Since Applicant has no other banking sub- Delhi, Iowa sidiaries and Applicant's principals do not control any other banks, consummation of the proposal Order Denying would not have any adverse effects upon either Formation of Bank Holding Company existing or potential competition nor would it increase the concentration of banking resources in First of Iowa Bank Shares, Inc., Delhi, Iowa, has any relevant area. Thus, the Board concludes that applied for the Board's approval under § 3(a)(1) of the competitive effects of the proposal are consis- the Bank Holding Company Act (12 U.S.C. tent with approval of the application. § 1842(a)(1)), of formation of a bank holding com- The financial resources and future prospects of pany by acquiring 95.4 per cent of the voting shares Applicant, which are dependent upon those of of Delhi Savings Bank, Delhi, Iowa ("Bank"). Bank, appear satisfactory and are regarded as being Notice of the application, affording opportunity consistent with approval of the application to be- for interested persons to submit comments and come a bank holding company. The debt to be views, has been given in accordance with § 3(b) of incurred by Applicant in connection with this pro- the Act. The time for filing comments and views has posal appears to be serviceable without having an expired, and the Board has considered the applicaadverse effect on the financial condition of Bank. tion and all comments received, including those Based on the record, the Board also concludes that submitted by the Iowa Department of Banking, in Applicant's and Bank's managerial resources are light of the factors set forth in § 3(c) of the Act (12 satisfactory. Therefore, considerations relating to U.S.C. § 1842(c)). banking factors are regarded as being consistent Applicant, a nonoperating corporation with no with approval. subsidiaries, was organized for the purpose of be- While no major changes are contemplated in coming a bank holding company through the acqui- Bank's services, considerations relating to con- sition of Bank. Bank, with deposits of $9.4 million,1 venience and needs of the community to be served is the third largest of seven banking organizations in are consistent with approval. Accordingly, it is the the relevant banking market2 and controls approx- Board's judgment that Applicant's proposal to form imately 14 per cent of total market deposits. Upon a bank holding company would be consistent with acquisition of Bank, Applicant would control one of the public interest and that the application should the smaller banking organizations in Iowa. be approved. Inasmuch as the proposed transaction is essen- On the basis of the record, the application is tially a reorganization whereby the shareholder approved for the reasons summarized above. The who presently controls Bank directly will control transaction shall not be made (a) before the thirtieth Bank indirectly through Applicant, and since Apcalendar day following the effective date of this plicant presently has no subsidiaries and engages in Order or (b) later than three months after the no activities, consummation of the proposal would effective date of this Order, unless such period is not have any adverse effects upon existing or extended for good cause by the Board, or by the potential competition, nor would it increase the Federal Reserve Bank of Chicago pursuant to dele- concentration of banking resources in the relevant gated authority. market. Therefore, the Board concludes that com- JA11 banking data are as of December 31, 1976. 2The Chicago banking market, the relevant market, is approxi- XA11 banking data are as of December 31, 1976. mated by Cook and DuPage Counties, and the southern portion of 2The relevant banking market is approximated by Delaware Lake County, Illinois. County, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1016 Federal Reserve Bulletin • November 1977 petitive considerations are consistent with approval Board notes that Applicant would incur a sizeable of the application. debt in connection with the proposed acquisition of The Board has indicated on previous occasions Bank's shares. Applicant proposes to service this that a holding company should constitute a source debt over a 12-year period through dividends to be of financial and managerial strength to its sub- declared by Bank, tax benefits to be derived from sidiary bank(s), and that the Board will closely filing consolidated tax returns, and insurance inexamine the condition of an applicant in each case come resulting from the incorporation into Bank's with this consideration in mind.3 Having examined operations of the insurance agency business consuch factors in light of the record in this application, ducted by Applicant's principal. In light of the the Board concludes that the record presents ad- policies and practices in evidence in Bank's existing verse considerations as they relate to the applicant operations, as well as its generally inexperienced bank holding company that warrant denial of the management, Applicant's projections for successful proposal to place the ownership of Bank into corpo- operations may be suspect. Therefore, there is a rate form. significant degree of uncertainty in Applicant's pro- The president of Bank is its principal shareholder jections, and the Board is unable to conclude that and, under this proposal, would become the presi- the Applicant will be able to manage the Bank dent and principal shareholder of Applicant. Prior properly to insure that the projections are fulfilled. to acquiring control of Bank in 1976, Applicant's In sum, the Board does not presently view Appliprincipal operated a general insurance agency, and cant's management as being capable of implementhas had only limited banking experience, although ing a financial plan that would enable Applicant to he has served as a director of Bank since 1969. He serve as a source of strength to Bank or one that presently divides his time and energies between his would enhance Bank's prospects. Accordingly, the insurance and banking interests. The record indi- Board concludes that considerations relating to cates that policies and practices employed at Bank financial resources and future prospects of Applihave hindered its overall operations. The Board, cant and Bank weigh against approval of this applitherefore, cannot conclude at this time that Bank's cation. management has demonstrated a record that would No significant changes in Bank's operations or in warrant a favorable finding with respect to manage- the services offered to customers are anticipated to rial factors.4 Since no management changes are follow from consummation of the proposed acquisicontemplated by Applicant and consummation of tion. Consequently, convenience and needs factors this proposal would perpetuate and enhance pres- lend no weight towards approval of this proposal. ent management's control of Bank,5 the Board is of On the basis of the circumstances concerning this the view that the record of Bank's operations application, the Board concludes that the banking indicates that managerial factors should be re- considerations involved in this proposal present garded as an adverse consideration. adverse factors bearing upon the financial and With regard to financial considerations, the managerial resources and future prospects of Applicant and Bank. Such adverse factors are not outweighed by any procompetitive effects or by benefits that would result in better serving the 3The Bank Holding Company Act requires that the Board, in acting on an application to acquire a bank, inquire into the convenience and needs of the community. Accordfinancial and managerial resources of an applicant. While this ingly, it is the Board's judgment that approval of the proposal involves the transfer of the ownership of Bank from an application would not be in the public interest and individual to a corporation to be owned by the same individual, the Act requires that before an organization is permitted to become a that the application should be denied. bank holding company and thus obtain the benefits associated On the basis of the facts of record, the application with the holding company structure, it must secure the Board's is denied for the reasons summarized above. approval. Section 3(c) of the Act provides that the Board must, in every case, consider, among other things, the financial and By order of the Board of Governors, effective managerial resources of both the applicant company and the bank October 31, 1977. to be acquired. The Board's action in this case is based on a consideration of such factors. 4The Board's conclusion on the quality of Applicant's manage- Voting for this action: Governors Coldwell, Jackson, ment is based upon the facts presently contained in the record. Partee, and Lilly. Voting against this action: Vice Chair- This action is taken without prejudice to the Applicant, and if man Gardner and Governor Wallich. Absent and not Bank shows improvement in its operations and management voting: Chairman Burns. competence, the Board would be receptive to consideration of an application at some time in the future. 5The Board notes in this connection that the Iowa Department of Banking has indicated that Applicant's principal may not be able to maintain his present ownership position in Bank absent the (Signed) ROBERT E. MATTHEWS, formation of the proposed bank holding company. [SEAL] Assistant Secretary of the Board. 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Law Department 1017 Dissenting Statement of factors set forth in § 3(c) of the Act (12 U.S.C. Vice Chairman Gardner and Governor Wallich § 1842(c)). Applicant is a recently chartered, nonoperating We would approve the application of First of corporation organized under the laws of Delaware Iowa Bank Shares, Inc., to become a bank holding for the purpose of becoming a bank holding comcompany by acquiring Delhi Savings Bank pany by acquiring Bank ($351.4 million in depos- ("Bank"). The facts presented in this ca$e pose a its).1 Upon acquisition of Bank, Applicant would close question and, on balance, warrant approval of control the eleventh largest commercial bank in the the application. The proposal is merely a means to State of Illinois and would control approximately complete the transfer of ownership of Bank among 0.6 per cent of the total deposits held by commermembers of the same family. Prospective acquisi- cial banks in that State. tion of the Bank by a new bank holding company Bank, located approximately five miles north- (First of Iowa Bank Shares) will simply continue in west of downtown Chicago, is the eleventh largest a holding company form the ownership structure of 333 commercial banks located in the Chicago that exists presently in the Bank. In June 1976, banking market2 and holds approximately 0.8 per Applicant's principal purchased control of Bank cent of the total commercial bank deposits in that from his brother with whom he had previously market. The proposed transaction involves the jointly controlled Bank. Bank's operations have transfer of ownership of Bank from an individual to shown some improvement since he assumed con- a corporation owned by the same individual.3 Aptrol. Accordingly, the managerial and financial fac- plicant's principal, the current owner of Bank, is tors, although regarded by the majority as adverse, also the owner and director of an additional bank should be regarded in a more favorable light since and two registered one-bank holding companies.4 the operations of the Bank have improved, and the Each of these organizations operates in the Chicago denial of the holding company application, which banking market and competes with Bank. would assist the present shareholders in completing Nevertheless, given the size of the respective bankthe transfer of ownership, serves little purpose. ing organizations involved and the structure of the We are pleased that the majority recognizes that Chicago banking market, it is the Board's view that this is a particularly narrow issue and that it would the combination of these entities would have no be willing to consider an application at some time in significant adverse effects upon competition within the future if the Bank demonstrates continued im- that market. Moreover, because the subject proprovement in its operations and management com- posal is essentially a corporate reorganization and petence. However, we disagree with the majority's Applicant has no subsidiaries, it does not appear conclusion and would approve the proposal now that consummation of the proposal would have any based on the present record. adverse effect upon either existing or potential competition or increase the concentration of banking resources, or have any other adverse effect upon any other banks, in the relevant market. Thus, Lake View Bancorp, Inc., the Board concludes that the competitive con- Northbrook, Illinois Order Approving Formation of Bank Holding Company 'All banking data are as of December 31, 1976. Lake View Bancorp, Inc., Northbrook, Illinois, 2The Chicago banking market, the relevant geographic market for purposes of analyzing the competitive effects of the proposed has applied for the Board's approval under § 3(a)(1) transaction, is approximated by Cook and DuPage Counties and of the Bank Holding Company Act (12 U.S.C. the southern portion of Lake County. 3Prior to the sale of Bank on March 25, 1976, to William N. § 1842(a)(1)) to form a bank holding company by Lane, Applicant's principal, Bank was owned by NL Industries, acquiring 99.9 per cent of the voting shares of Lake Inc., New York, New York ("NL"), a diversified manufacturing View T1"118* anci Savings Bank, Chicago, Illinois company, which became a bank holding company by virtue of the 1970 Amendments to the Act. On May 5, 1972, NL filed an ("Bank"). irrevocable declaration to divest its interest in Bank by year-end Notice of the application, affording opportunity 1980. Sale of Bank to Applicant's principal was intended to comply with that commitment. for interested persons to submit comments and 4These organizations are Pioneer Bank & Trust Co., Chicago, views, has been given in accordance with § 3(b) of Illinois ($306.3 million in deposits); Northbrook Bancorp, Inc., the Act. The time for filing comments and views has which controls Northbrook Trust & Savings Bank, Northbrook, Illinois ($65.3 million in deposits); and Northwestco, Inc., which expired, and the Board has considered the applicacontrols Northwest National Bank of Chicago ($327.4 million in tion and all comments received in light of the deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1018 Federal Reserve Bulletin • November 1977 siderations are consistent with approval of the bank holding company by acquiring Lake View application. Trust and Savings Bank. Nevertheless, I am con- The financial resources of Applicant, which are cerned with the "chain banking" arrangement that dependent upon those of Bank, and the managerial will be further entrenched by the combination of resources of Applicant are considered to be satis- Applicant with three other affiliated banking orfactory, and their future prospects appear favor- ganizations within the Chicago banking market. able. Although Applicant will incur some debt as a The facts of record indicate that Applicant's result of this proposal, it appears that income and principal, the current owner of Bank, is also the dividends from Bank should provide Applicant with owner and director of an additional bank and two sufficient revenues to meet its debt service re- registered one-bank holding companies in the quirements without adversely affecting the financial Chicago banking market. It appears that Applicondition of Bank. Furthermore, the financial and cant's principal is using the one-bank holding commanagerial resources of the other banking organiza- panies solely as vehicles to facilitate his individual tions with which Applicant's principal is associated ownership of three separate banks in Illinois, a are regarded as generally satisfactory. Accordingly, State that prohibits multi-bank holding companies. considerations relating to banking factors are con- In my view, it is clear that this series of one-bank sistent with approval of the application. While no holding companies by Applicant's principal results significant changes are contemplated in Bank's in a "chain banking" arrangement that serves as a operations or services, considerations relating to substitute for either a multi-bank holding company the convenience and needs of the community to be or branch banking facilities. Such arrangements served are consistent with approval of the applica- could permit tightly interlocked one-bank holding tion. Therefore, it is the Board's judgment that companies to act as multi-bank holding companies consummation of the proposed transaction would without meeting the regulatory constraints for be consistent with the public interest and that the multi-bank holding companies. In this sense, they application should be approved.5 are evasions of the regulatory and statutory On the basis of the record, the application is framework of the Bank Holding Company Act, approved for the reasons summarized above. The which evasion the Board should not sanction. Of transaction shall not be made (a) before the thirtieth particular concern to me is the possibility that calendar day following the effective date of this "chain banking" may be adverse to the public Order or (b) later than three months after the interest because it can result in undue concentraeffective date of this Order, unless such period is tions of financial power, which the Board prohibits extended for good cause by the Board, or by the in its regulation of multi-bank holding companies. Federal Reserve Bank of Chicago pursuant to dele- In acting upon one-bank holding company formagated authority. tions in previous situations wherein individuals By order of the Board of Governors, effective have been involved in "chain banking," the Board October 17, 1977. has stated that it is more appropriate to analyze the financial considerations and managerial resources Voting for this action: Vice Chairman Gardner and of such organizations under the standards that are Governors Wallich, Coldwell, Jackson, Partee, and Lilly. normally applicable in analyzing acquisitions by Absent and not voting: Chairman Burns. multi-bank holding companies.1 In addition, the (Signed) ROBERT E. MATTHEWS, Board has indicated that it is inappropriate to ignore [SEAL] Assistant Secretary of the Board. the identity of interests between an applicant and affiliated banking organizations in assessing the competitive effects of a proposal that would bring Concurring Statement of Governor Coldwell an additional bank into the affiliated group through I concur in the Board's action approving the the formation of a bank holding company.2 This is application of Lake View Bancorp, Inc., to form a balance in connection with the loan to finance the purchase of 5In its order of January 3, 1977, denying Applicant's previous Bank's shares. proposal to become a bank holding company by acquiring Bank, the Board noted that the terms of the loan used to finance the !See Board's Order dated June 14, 1976, denying the formation purchase of Bank's shares were dependent upon a compensating of a bank holding company by Nebraska Banco, Inc., Ord, balance provided by Bank, an action that the Board regarded as an Nebraska, 62 Federal Reserve BULLETIN 638 (1976). improper use of Bank's funds. Applicant has stated that with 2See Board Order, dated May 11, 1977, denying the formation of respect to the subject proposal, there no longer exists any agree- a bank holding company by Mahaska Investment Company, ment or understanding for Bank to maintain a compensating Oskaloosa, Iowa, 1977 Federal Reserve BULLETIN 579 (June). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1019 especially pertinent where a proposed acquisition ments received in the light of the public interest involves the use of a holding company by an factors set forth in § 4(c)(8) of the Act (12 U.S.C. individual or group of individuals to acquire control § 1842(c)(8)). of a bank that is a competitor of another bank under Applicant is the fourth largest banking organizathe control of essentially the same individual or tion in Arizona and controls one bank, United Bank group of individuals. In this case, Applicant's prin- of Arizona. H.S. Pickrell Company ("Pickrell") is cipal controls four banking organizations that are all engaged in the mortgage banking business and located within five miles of one another in the makes, sells, and services loans secured by Chicago banking market and control in the aggre- mortgages or deeds of trust on real property, and gate approximately 2.4 per cent of that market's arranges for such loans by insurance companies, total deposits. In favorably assessing this pro- savings and loan associations, commercial and savposal's financial considerations and managerial re- ings banks, pension funds, and other institutional sources, the Board has applied the more restrictive investors. Pickrell has its main office in Phoenix standards for analyzing multi-bank holding com- and maintains other offices in Tucson and Mesa, panies. I believe, however, that the more restrictive Arizona and Albuquerque, New Mexico. standards should also have been applied in assess- By Order of March 28, 1972, the Board approved ing the competitive considerations, although an Applicant's application to retain Pickrell. The analysis of the facts in this case would not have Board's Order was limited to an approval for Applibeen so adverse as to warrant denial. cant to acquire Pickrell and engage in mortgage In conclusion, I am of the opinion that, in all banking activities. It appears that in addition to cases involving similar "chain banking" one-bank mortgage banking activities, Pickrell has particiholding company arrangements, the Board should pated in certain credit life and credit accident and apply its multi-bank holding company standards in health insurance activities which were not included assessing all the statutory factors in section 3(c) of in Applicant's application to retain Pickrell. the Act. Pickrell provided lists of its mortgagors to an unaffiliated third party insurance company which solicited the purchase of credit life insurance. In ORDERS UNDER SECTION 4 those instances where a mortgagor elected to pur- OF BANK HOLDING COMPANY ACT chase such insurance, the insurance company forwarded the necessary forms to Pickrell to allow UB Financial Corp., Pickrell to impound and pay the insurance pre- Phoenix, Arizona miums out of the mortgagor's monthly payment. Pickrell received a share of the premiums for han- Order Approving dling the payments. Pickrell also mailed material Credit-Related Insurance Activities prepared by the insurance company to the mortgagor describing the availability of credit acci- UB Financial Corp., Phoenix, Arizona, a bank dent and health insurance. If the mortgagor elected holding company within the meaning of the Bank to purchase that insurance, Pickrell again handled Holding Company Act, has applied for the Board's the premium payments in return for a share of the approval, under § 4(c)(8) of the Act (12 U.S.C. premium. § 1843(c)(8)) and § 225.4(b)(2) of the Board's Regu- In the Board's view, Pickrell's actions constitute lation Y (12 CFR § 225.4(b)(2)), to recommence engaging in credit insurance activities. Since Applithrough its subsidiary, H.S. Pickrell Company, the cant's approval from the Board did not include activity of acting as broker or agent for the sale, by engaging in insurance activities, Pickrell's particimail solicitation, of credit-related life and accident pation in those activities constituted a violation of and health insurance, solely in connection with the Board's Regulation Y.1 extensions of credit by H.S. Pickrell Company. In acting on applications pursuant to § 4(c)(8) of Such activities have been determined by the Board the Act to continue to engage in activities in situato be closely related to banking (12 CFR tions where the necessary prior approval of the § 225.4(a)(9)). Board was not obtained for such activities, the Notice of the application, affording opportunity Board applies the same standards as it does to for interested persons to submit comments and applications to commence such activities initially. views on the public interest factors, has been duly In addition, the Board considers the competitive published (42 Federal Register 39478). The time for filing comments and views has expired, and the Board has considered the application and all com- ^ec 12 CFR §225. 4(c)(2). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1020 Federal Reserve Bulletin • November 1977 effects of such proposals as of the time that the regulations and orders issued thereunder, or to activity was commenced. prevent evasion thereof. The credit insurance Pickrell offers is a supple- By order of the Board of Governors, effective mentary service and has no competitive signifi- October 3, 1977. cance independent of the mortgage credit extended by Pickrell. Credit insurance is readily available Voting for this action: Chairman Burns and Governors from other financial institutions in the market. It Gardner, Wallich, Coldwell, Jackson, Partee, and Lilly. does not appear that Applicant's engaging in insur- (Signed) GRIFFITH L. GARWOOD, ance activities would have any significant adverse [SEAL] Deputy Secretary of the Board. effect on existing or future competition. Moreover, there is no evidence in the record indicating that approval of this proposal would result in any undue UB Financial Corp., concentration of resources, unfair competition, Phoenix, Arizona conflicts of interests, unsound banking practices or Order Approving Retention other adverse effects on the public interest. of an Office of H.S. Pickrell Company As indicated above, the subject application is an after-the-fact request for the Board's approval to UB Financial Corp., Phoenix, Arizona, a bank engage in activities that were commenced in viola- holding company within the meaning of the Bank tion of the Board's Regulation Y. It is the Board's Holding Company Act, has applied for the Board's view, on the basis of the facts and circumstances of approval, under § 4(c)(8) of the Act (12 U.S.C. the subject application, that the violation was the § 1843(c)(8)) and § 225.4(b)(2) of the Board's Regularesult of a misinterpretation of the Act. In acting on tion Y (12 CFR § 225.4(b)(2)), to retain an office of this application the Board has taken into considera- H.S. Pickrell Company, Phoenix, Arizona, located tion the fact that Applicant, upon becoming aware in Mesa, Arizona, and continue to engage in of the existence of the violation, immediately mortgage banking activities, including originating, ceased the activity and took steps to conform its selling, and servicing mortgage loans. Such acoperations to the Act by filing the subject applica- tivities have been determined by the Board to be tion. In addition, Applicant's management has closely related to banking (12 CFR § 225.4(a)(1) and taken steps to prevent violations from occurring in (3)). the future, including the initiation of an affirmative Notice of the application, affording opportunity program under the direction of one of its officers to for interested persons to submit comments and ensure that the management of Applicant's sub- views on the public interest factors, has been duly sidiaries is aware of its responsibilities under the published (42 Federal Register 39478). The time for Bank Holding Company Act. The Board expects filing comments and views has expired, and the that these actions will assist Applicant in avoiding a Board has considered the application and all comrecurrence of similar violations. In consideration of ments received in the light of the public interest the above and other information in the record factors set forth in § 4(c)(8) of the Act (12 U.S.C. evidencing Applicant's intent to comply with the § 1842(c)(8)). requirements of the Bank Holding Company Act, Applicant is the fourth largest banking organizathe Board has determined that the circumstances of tion in Arizona and controls one bank, United Bank the above violation do not warrant denial of the of Arizona. H.S. Pickrell Company ("Pickrell") is application. engaged in the mortgage banking business and Based upon the foregoing and other con- makes, sells, and services loans secured by siderations reflected in the record, the Board has mortgages or deeds of trust on real property, and determined that the balance of the public interest arranges for such loans by insurance companies, factors the Board is required to consider under savings and loan associations, commercial and sav- § 4(c)(8) is favorable. Accordingly, the application ings banks, pension funds, and other institutional is hereby approved. This determination is subject to investors. Pickrell has its main office in Phoenix the conditions set forth in § 225.4(c) of Regulation Y and maintains other offices in Tucson and Mesa, and to the Board's authority to require such modifi- Arizona and Albuquerque, New Mexico. cation or termination of the activities of a holding By Order of March 28, 1972, Applicant received company or any of its subsidiaries as the Board the Board's approval to retain Pickrell. In April finds necessary to assure compliance with the pro- 1972, Pickrell opened a new office in Mesa, Arivisions and purposes of the Act and the Board's zona, without the prior approval of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1021 Applicant has indicated that it was in the process of aware of its responsibilities under the Bank Holding completing its assimilation of Pickrell and was Company Act. The Board expects that these acunaware that the Mesa office had been newly tions will assist Applicant in avoiding a recurrence established. Thus, Applicant's approval from the of similar violations. In light of the above and other Board to retain Pickrell did not include the Mesa information in the record evidencing Applicant's office and the operation of that office would consti- intent to comply with the requirements of the Bank tute a violation of the Board's Regulation Y.1 Holding Company Act, the Board has. determined In acting on applications pursuant to § 4(c)(8) of that the circumstances of the above violation do not the Act to retain offices in situations where the warrant denial of the application. necessary prior approval of the Board was not Based upon the foregoing and other conobtained for such offices, the Board applies the siderations reflected in the record, the Board has same standards as it does to applications to estab- determined that the balance of the public interest lish such offices initially. In addition, the Board factors the Board is required to consider under considers the competitive effects of such proposals § 4(c)(8) is favorable. Accordingly, the application as of the time that the offices were established. is hereby approved. This determination is subject to At the time that it approved Applicant's applica- the conditions set forth in § 225.4(c) of Regulation Y tion to retain Pickrell, the Board noted that only a and to the Board's authority to require such modifislight amount of existing competition existed be- cation or termination of the activities of a holding tween Applicant and Pickrell. Neither Applicant company or any of its subsidiaries as the Board nor Pickrell had more than a minor share of the finds necessary to assure compliance with the promortgage banking business in any local market in visions and purposes of the Act and the Board's Arizona, or in the State as a whole. The Board regulations and orders issued thereunder, or to concluded at that time that Applicant's acquisition prevent evasion thereof. of Pickrell would have no adverse effects on com- By order of the Board of Governors, effective petition and would strengthen Pickrell's competi- October 3, 1977. tive position in the State. Inasmuch as the Mesa office of Pickrell that is the subject of this applica- Voting for this action: Chairman Burns and Governors tion was opened de novo, it appears that Appli- Gardner, Wallich, Coldwell, Jackson, Partee, and Lilly. cant's retention of that office would likewise have no adverse effects upon either potential or existing (Signed) GRIFFITH L. GARWOOD, competition. Moreover, there is no evidence in the [SEAL] Deputy Secretary of the Board. record indicating that retention of this office would result in any undue concentration of resources, United Missouri Bancshares, Inc., unfair competition, conflicts of interests, unsound Kansas City, Missouri banking practices or other adverse effects on the Order Approving Acquisition of public interest. United Missouri Insurance Company As indicated above, the subject application is an after-the-fact request for the Board's approval to United Missouri Bancshares, Inc., Kansas City, conduct operations at an office that was opened in Missouri, a bank holding company within the meanviolation of the Board's Regulation Y. It is the ing of the Bank Holding Company Act, has applied Board's view, on the basis of the facts and circum- for the Board's approval, under § 4(c)(8) of the Act stances of the subject application, that the violation (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the was inadvertent. In acting on this application the Board's Regulation Y (12 CFR § 225.4(b)(2)), to Board has taken into consideration the fact that acquire shares of United Missouri Insurance Com- Applicant, upon becoming aware of the existence of pany, Phoenix, Arizona ("Company"), a company the violation, took steps to conform its operations that will engage de novo in the activity of underwritto the Act by filing the subject application. In ing, as reinsurer, credit life and credit accident and addition, Applicant's management has taken steps health insurance directly related to extensions of to prevent violations from occurring in the future, credit by the bank holding company system. Such including the initiation of an affirmative program activity has been determined by the Board to be under the direction of one of its officers to ensure closely related to banking (12 CFR § 225.4(a)(10)). that the management of Applicant's subsidiaries is Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly ^ee 12 CFR § 225.4(c)(2). published (42 Fed. Reg. 41914 (1977)). The time for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1022 Federal Reserve Bulletin • November 1977 filing comments and views has expired, and the commitment by Applicant to maintain on a continu- Board has considered the application and all com- ing basis the public benefits which the Board has ments received in the light of the public interest found to be reasonably expected to result from this factors set forth in § 4(c)(8) of the Act (12 U.S.C. proposal and upon which the approval of this § 1843(c)(8)). proposal is based, the Board has determined that Applicant, the sixth largest bank holding com- the balance of the public interest factors the Board pany in Missouri, controls nineteen subsidiary is required to consider under § 4(c)(8) is favorable. banks with aggregate deposits of $919 million,1 Accordingly, the application is hereby approved. representing 4.83 per cent of the total deposits in This determination is subject to the conditions set commercial banks in the State. Company will be forth in § 225.4(c) of Regulation Y and to the chartered under the laws of Arizona and will engage Board's authority to require such modification or in the activity of underwriting, as reinsurer, credit termination of the activities of a holding company life and credit accident and health insurance sold in or any of its subsidiaries as the Board finds necesconnection with extensions of credit by Applicant's sary to assure compliance with the provisions and lending subsidiaries. Inasmuch as the subject pro- purposes of the Act and the Board's regulations and posal involves engaging in this activity de novo, orders issued thereunder, or to prevent evasion consummation of this transaction would not have thereof. any adverse effect upon existing or potential com- The transaction shall be made not later than three petition in any relevant market. months after the effective date of this Order, unless Credit life and credit accident and health insur- such period is extended for good cause by the ance is generally made available by banks and other Board or by the Federal Reserve Bank of Kansas lenders and is designed to assure repayment of a City pursuant to authority hereby delegated. loan in the event of death or disability of the By order of the Board of Governors, effective borrower. In connection with its addition of the October 20, 1977. underwriting of such insurance to the list of permissible activities for bank holding companies, the Voting for this action: Vice Chairman Gardner and Board stated: Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. To assure that engaging in the underwriting of credit life and credit accident and health insurance (Signed) GRIFFITH L. GARWOOD, can reasonably be expected to be in the public [SEAL] Deputy Secretary of the Board. interest, the Board will only approve applications in which an applicant demonstrates that approval ORDER UNDER BANK MERGER ACT will benefit the consumer or result in other public benefits. Normally such a showing would be made Isabella Bank and Trust, by a projected reduction in rates or increase in Mount Pleasant, Michigan policy benefits due to bank holding company performance of this service. (12 CFR § 225.4(a)(10), Order Denying Application for Merger of Banks n. 7) Isabella Bank and Trust, Mount Pleasant, Michi- Applicant proposes to offer, through Company, gan, ("Isabella Bank"), a member State bank of the various credit life and credit accident and health Federal Reserve System, has applied for the insurance coverages to its customers at rates rang- Board's approval pursuant to the Bank Merger Act ing from 5.0 to 6.7 per cent below the prima facie rates established in Missouri.2 The Board is of the (12 U.S.C. § 1828(c)) of the merger of that bank with Shepherd State Bank, Shepherd, Michigan view that the reductions in insurance premiums that ("Shepherd Bank"), under the charter and title of Applicant proposes to establish are, and will con- Isabella Bank. Incident to the proposed merger, the tinue to be, in the public interest. present offices of Shepherd Bank would become Based upon the foregoing and other conbranch offices of the resulting bank. siderations reflected in the record, including a As required by the Act, notice of the proposed ] A11 banking data are as of June 30, 1977. merger, in form approved by the Board, has been 2Prima facie rates are the maximum rates allowed by the State published, and the Board has requested reports on for particular types of insurance coverage. Where no prima facie the competitive factors from the Attorney General, rate exists for a type of coverage, the insurance company may Comptroller of the Currency and the Federal Deapply to the State insurance department for approval of a proposed rate. posit Insurance Corporation ("FDIC"). The Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1023 has considered the application and all comments1 the four largest banks in the market would increase and reports2 received in light of the factors set forth to 96.5 per cent. Thus, the proposed merger would in the Act. significantly increase the concentration of banking Isabella Bank operates five offices with aggregate resources in the market. Moreover, consummation deposits of approximately $46.4 million,3 represent- of the proposed merger would substantially ining 0.15 per cent of total deposits in commercial crease the disparity in size between Isabella Bank banks in Michigan, and ranks as the 80th largest and the market's second and third largest banks as bank in the State. Consummation of the proposed well as lessen, to a significant degree, the likelihood merger would not appreciably increase Isabella of the market becoming less concentrated in the Bank's share of deposits in the State, nor would it future. The Board regards these as adverse factors significantly increase the concentration of banking lending weight toward denial of the proposal. resources in Michigan. However, as discussed be- In addition to the adverse effects on concentralow, consummation of the proposal would have tion, the record in this matter demonstrates that significant adverse effects on concentration of substantial competition presently existing between banking resources within the relevant banking mar- Isabella Bank and Shepherd Bank would be elimiket. nated upon consummation of the merger. A dis- Shepherd Bank holds deposits of approximately tance of seven and one-half miles separates the $11.6 million and operates two offices, both of closest offices of each of these two banks and no which are located in the Mount Pleasant banking offices of other banks intervene. More importantly, market.4 With 8.0 per cent of total deposits in Shepherd Bank derives about 11 per cent of its commercial banks in the relevant market, Shepherd demand deposits, 14 per cent of its time and savings Bank ranks as the fourth largest of six banks deposits and 15 per cent of its commercial loans operating therein. Each of Isabella Bank's five from the service area of Isabella Bank. Isabella offices is also located in the Mount Pleasant bank- Bank, in turn, derives 1.5 per cent of its demand ing market. Isabella Bank holds 31.8 per cent of the deposits, 2.5 per cent of its time and savings deposits in commercial banks in the market and deposits and 4.5 per cent of its commercial loans ranks as the largest bank therein. The second and from the service area of Shepherd Bank. The prothird largest banks in the market hold 26.4 per cent posed merger would reduce the number of banking and 22.7 per cent of such deposits, respectively. alternatives operating in the market.5 In light of all The four largest banks in the market together hold of the facts of record, including the comments 88.9 per cent of the market's deposits, and thus, the submitted by Protestants, the Board concludes that market is viewed as highly concentrated. Consum- consummation of the proposed merger would have mation of the subject proposal would substantially significant adverse effects on competition within increase the percentage of commercial bank de- the Mount Pleasant banking market. posits held by the market's largest bank to almost The financial and managerial resources and fu- 40 per cent of such deposits. That bank would also ture prospects of both banks are regarded as satisthen operate seven of the 17 banking offices in the factory and consistent with approval, but do not market. The percentage of market deposits held by weigh in favor of the proposal. Under the Act, the subject application should not be approved unless the anticompetitive effects that would result from The Board has received comments in opposition to the subject the merger are clearly outweighed in the public proposal from American Security Bank, Mount Pleasant and interest by the probable effect of the transaction in Central National Bank of Alma, Alma, both in Michigan (collecmeeting the convenience and needs of the commutively referred to herein as "Protestants"). In summary, Protestants allege that consummation of the proposed merger would nity to be served. Upon consummation of the have significant anticompetitive effects by increasing the concen- merger, Isabella Bank proposes to offer 24-hour tration of banking resources and eliminating existing competition bank teller machine services, credit card services, within the market. Because the comments of Protestants are, in substance, discussed in this Order, Protestants' allegations are not overdraft checking, FHA improvement and SB A set forth separately. loans, and trust services to the customers of 2The reports of the Department of Justice and the FDIC Shepherd Bank. Although each of these services is conclude that the proposed merger would have an adverse effect on competition. No report was received from the Comptroller of currently offered by other firms in the market, the Currency. 3A11 banking data are as of December 31, 1976. 4The Mount Pleasant banking market, the relevant geographic market for purposes of analyzing the competitive effects of the 5In this regard, it is noted that both Isabella Bank and Shepherd subject proposal, is approximated by all of Isabella County and the Bank are the resulting banks from other mergers within the past 15 southern portion of Clare County, both in Michigan. years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1024 Federal Reserve Bulletin • November 1977 provision of these services at offices of Shepherd regard to the future earnings prospects of Appli- Bank would serve the convenience of customers cant, the convenience and needs of the community using those offices. Thus, considerations relating to to be served, and the general character of Applithe convenience and needs of the communities to cant's management. be served lend some weight toward approval of the Under section 9 of the Federal Reserve Act (12 application. The Board finds, however, that neither U.S.C. 322), the Board, in acting upon an applicathe considerations relating to the banking factors tion to become a member of the Federal Reserve nor the considerations relating to the public benefits System, is required to consider the financial condiclearly outweigh the significant adverse competi- tion of the applying bank, the general character of tive effects of the proposed merger. its management, and whether or not the corporate On the basis of all of the facts of record, and in powers of the institution are consistent with the light of factors set forth in the Act, it is the Board's purposes of the Federal Reserve Act. In addition, judgment that approval of the proposal would not under section 4(b) of the Federal Deposit Insurance be in the public interest. Accordingly, the applica- Act (12 U.S.C. 1814), the admission to membership tion is denied for the reasons summarized herein. in the Federal Reserve System of an uninsured By order of the Board of Governors, effective State bank automatically confers deposit insurance October 12, 1977. upon the bank from the time the Board certifies to the FDIC that the bank is a member of the Federal Voting for this action: Vice Chairman Gardner and Reserve System. The Board's certificate to the Governors Wallich, Cold well, Jackson, Partee, and Lilly. FDIC is required to state that the Board has given Absent and not voting: Chairman Burns. consideration to the factors enumerated in section 6 of the Federal Deposit Insurance Act (12 U.S.C. (Signed) GRIFFITH L. GARWOOD, 1816), namely, the financial history and condition of [SEAL] Deputy Secretary of the Board. the bank; the adequacy of its capital structure; the bank's future earnings prospects; the general character of its management; the convenience and ORDER APPROVING needs of the community to be served by the bank; APPLICATION TO BECOME A and whether or not the bank's corporate powers are MEMBER OF THE FEDERAL RESERVE SYSTEM consistent with the purposes of the Federal Deposit Insurance Act. The Board has considered the sub- Harvard Tower Bank, ject application in light of the statutory factors set Tulsa, Oklahoma forth above. Applicant would be located at a major intersec- Harvard Tower Bank, Tulsa, Oklahoma ("Applition in the south central portion of the city of Tulsa cant"), a proposed new bank chartered under the and would have a service area of approximately 13 laws of the State of Oklahoma, has applied, pursquare miles. The northern half of Applicant's suant to section 9 of the Federal Reserve Act (12 proposed service area is highly developed with little U.S.C. 321-338) and the Board's Regulation H (12 space available for additional development. The CFR 208), to become a member of the Federal southern half of the area, on the other hand, is Reserve System. currently undergoing a substantial amount of com- Applicant, which has not opened for business, mercial as well as residential development. The was organized in 1975 for the purpose of obtaining a population of the proposed service area is approxi- State bank charter and engaging in a commercial mately 51,000, which represents an increase of banking business. Applicant's application for a approximately 51 per cent since 1970. Average charter was approved by the Oklahoma State Bankfamily income in the area is approximately $24,500 ing Board by Order dated April 14, 1975. Approval as compared to the Statewide average of approxiof Applicant's charter was conditioned, in part, mately $14,000. Five banks presently operate in the upon Applicant filing an application for insurance proposed service area, one of which opened in June coverage for its deposits from the Federal Deposit of this year. The other four banks that compete in Insurance Corporation ("FDIC") or for memberthe area have, over the past five years, either ship in the Federal Reserve System. Applicant filed doubled or tripled their total deposits. Deposit an application with the FDIC on August 24, 1976, growth in the entire Tulsa banking market1 over the for insurance pursuant to section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815). That application was denied by the FDIC on February 15, 1977, on the basis of unfavorable findings with The Tulsa banking market is approximated by the Tulsa SMSA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1025 same period of time has been strong, increasing at managerial factors was apparently due to reservaan annual rate of 13.6 per cent. Based on the tions concerning the financial affairs and banking foregoing and other information in the record, it is experience of two individuals affiliated with Appliapparent that the economy of the area that would be cant. Since the time of the FDIC's action, those two served by Applicant has expanded in recent years individuals have disassociated themselves from and, in the Board's view, it is reasonable to con- Applicant. In the Board's judgment, the general clude that it will continue to expand in the foresee- character of Applicant's management is satisfacable future. tory and consistent with approval of the subject Applicant's proposed location at a major inter- application. Applicant's proposed capital appears section should make it a convenient source of to be adequate and its corporate powers are consisbanking services. The population per banking office tent with the Federal Reserve Act and with the ratio in the proposed service area is substantially Federal Deposit Insurance Act. Accordingly, the above the ratio for the Tulsa banking market and Board finds that those factors are consistent with more than double the ratio for the State. Even after approval of the subject application. Applicant opens for business, the population per In view of the foregoing discussion and having banking office ratio in the service area would be considered the facts of record in light of the statugreater than that of the market and the State. In tory factors the Board must consider under section addition, the results of a survey submitted since the 9 of the Federal Reserve Act and section 6 of the FDIC's action on Applicant's application for de- Federal Deposit Insurance Act, it is the Board's posit insurance reflect a favorable disposition on judgment that the application should be, and is the part of individuals towards a bank that would be hereby, approved. located at Applicant's site. Although it does not By order of the Board of Governors, effective appear that Applicant will offer any banking ser- October 19, 1977. vices that are not presently available from other banks in the area, Applicant will be open for Voting for this action: Vice Chairman Gardner and business on Saturdays, making it the only commer- Governors Wallich, Coldwell, Jackson, Partee, and Lilly. cial bank in the area to be open on that day. It is the Absent and not voting: Chairman Burns. Board's judgment on the basis of the above and other information in the record that the conve- (Signed) ROBERT E. MATTHEWS, nience and needs factors are favorable and reflect [SEAL] Assistant Secretary of the Board. favorably on the future earnings prospects of Applicant. ORDER GRANTING DETERMINATION Applicant has no operating history and its future UNDER BANK HOLDING COMPANY ACT earnings prospects are, of course, related to the First Security Corporation, amount of deposits Applicant will be able to attract. Salt Lake City, Utah In denying Applicant's application for deposit insurance, the FDIC indicated that it did not believe First Security Corporation, Salt Lake City, Utah that Applicant would acquire deposit volume suffi- ("FSC"), a bank holding company within the meancient to support satisfactory earnings within a rea- ing of section 2(a) of the Bank Holding Company sonable period. The FDIC's views with respect to Act of 1956, as amended (12 U.S.C. § 1841(a)) ("the Applicant's future earnings prospects appear to Act"), has requested a determination, pursuant to have been based principally on its adverse finding section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) concerning the convenience and needs factors. As that FSC is not in fact capable of controlling Mr. indicated above, the Board has reached a different John Price, an individual residing in Salt Lake City, conclusion than did the FDIC with respect to the Utah, or Security Savings & Loan Association, convenience and needs of the community to be Pocatello, Idaho ("Security") (formerly First Secuserved by Applicant. Based on the above and other rity Savings and Loan Association), notwithstandinformation in the record, it is the Board's reasoned ing the fact that the purchase by Mr. Price from judgment that Applicant's future earnings prospects FSC of all of the outstanding voting shares of are consistent with approval of the subject applica- Security was financed, in part, by a loan from First tion. Security Bank of Utah, National Association, Salt In denying its application for deposit insurance, Lake City, Utah ("FSB"), a banking subsidiary of the FDIC stated that the managerial factors did not FSC, and that Mr. Price is otherwise indebted to support approval. The FDIC view with respect to FSB. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1026 Federal Reserve Bulletin • November 1977 Under section 2(g)(3) of the Act, shares trans- Mr. Price, or businesses controlled or affiliated ferred after January 1, 1966, by any bank holding with Mr. Price, and Security has submitted a resocompany to a transferee that is indebted to the lution of its board of directors affirming that neither transferor are deemed to be indirectly owned or FSC or any of its subsidiaries and affiliates is controlled by the transferor unless the Board, after capable of controlling Security, directly or indiopportunity for hearing, determines that the trans- rectly, and that Security will not acquiesce in any feror is not in fact capable of controlling the trans- such control or attempt to control its operations or feree. management. In addition, FSC submitted an af- Notice of an opportunity for hearing with respect fidavit from its president averring that FSC has not to FSC's request for a determination under section and will not attempt to exercise a controlling influ- 2(g)(3) was published in the Federal Register on ence over Mr. Price or any corporations controlled August 23, 1977 (42 Federal Register 42380). The by him. Mr. Price, in his affidavit, states that FSC is time provided for requesting a hearing has expired. not capable of controlling him or Security and that No such request has been received by the Board. he will not permit or acquiesce in any such control FSC has submitted to the Board evidence to sup- or attempt to control. port FSC's contention that it is not in fact capable Accordingly it is ordered, That the request of of controlling Mr. Price or Security, directly or FSC for a determination pursuant to section 2(g)(3) indirectly. be and hereby is granted. This determination is It is hereby determined that FSC is not in fact based upon the representations made to the Board capable of controlling Mr. Price or Security. This by FSC and Mr. Price, and is conditioned upon the determination is based upon the evidence of record continued absence of interlocking relationships bein this matter, including the following facts: FSC is tween Security and FSC and its subsidiaries. In the a publicly-owned corporation and is not affiliated event the Board should hereafter determine that with Mr. Price or with any business in which Mr. facts material to this determination are otherwise Price has an interest. The sale of Security to Mr. than as represented, or that FSC or Mr. Price has Price appears to have been the result of arms-length failed to disclose to the Board other material facts, negotiations and Mr. Price's purchase of the shares this determination may be revoked, and any change of Security appears to have been as an investment in the facts or circumstances relied upon by the for his own account and not as a nominee or Board in making this determination could result in representative of any other party. There is no the Board reconsidering the determination made evidence to indicate that the sale was motivated by herein. an intent to evade the requirements of the Act. All By order of the Board of Governors, acting interlocking relationships1 between Security and through its General Counsel, pursuant to delegated FSC or any of FSC's subsidiaries have been termi- authority (12 CFR § 265.2(b)(1)), effective October nated. The terms governing the debt relationship 31, 1977. between FSB and Mr. Price arising from FSB's financing of Mr. Price's purchase of the shares of PRIOR AND FINAL Security are limited to those reasonably required to CERTIFICATION PURSUIT TO THE protect FSB's security interest. Additionally, the BANK HOLDING COMPANY TAX ACT OF 1976 other indebtedness to FSB of Mr. Price and his business interests arose in the ordinary course of H. F. Ahmanson & Company, business. Mr. Price's personal financial resources Los Angeles, California are substantial and support the conclusion that FSC is not in fact capable of controlling him or Security [Docket No. TCR 76-101] by reason of the indebtedness. FSC has submitted a H. F. Ahmanson & Company, Los Angeles, resolution of its executive committee disclaiming California ("Ahmanson"), has requested a prior any capability or intent on FSC's part of controlling certification pursuant to section 6158(a) of the Internal Revenue Code (the "Code"), as amended by section 3(a) of the Bank Holding Company Tax !An "interlocking relationship" shall be deemed to exist be- Act of 1976 (the "Tax Act"), that the sale on tween two companies if any person holding an office or position (including an advisory or honorary position) with a company as an November 5, 1976, by Ahmanson and its subofficer, director, trustee, policy-making employee or consultant, sidiary, Ahmanson Bank and Trust Company, Bevor who performs functions comparable to those usually associated erly Hills, California ("Bank"), of 400,000 shares of with such office or position, holds any such office or position with the other company. California Overseas Banks, Beverly Hills, Califor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1027 nia ("COB"), a corporation created and availed of property is "prohibited property" within the meansolely for the purpose of receiving the commercial ing of sections 6158(f)(2) and 1103(c) of the Code. banking assets of Bank, was necessary or appropri- 5. On November 24, 1971, Ahmanson filed with ate to effectuate the policies of the Bank Holding the Board an irrevocable declaration, pursuant to Company Act (12 U.S.C. § 1841 et seq.) ("BHC section 225.4(d) of the Board's Regulation Y that it Act"). Ahmanson has also requested a final certifi- would cease to be a bank holding company by cation pursuant to section 6158(c)(2) of the Code December 31, 1980. that it has (before the expiration of the period 6. Ahmanson organized COB under the laws of prohibited property is permitted under the BHC the State of California for the sole purpose of Act to be held by a bank holding company) ceased receiving the commercial banking assets of Bank. to be a bank holding company.1 On October 6, 1976, COB received approval from In connection with these requests, the following the Federal Deposit Insurance Corporation of its information is deemed relevant for purposes of application for deposit insurance. COB received issuing the requested certifications:2 authorization to engage in the commercial banking 1. Ahmanson is a corporation organized under business under the laws of the State of California the laws of the State of California on January 28, from the California State Banking Department ef- 1928. fective November 8, 1976. 2. On December 2, 1957, Ahmanson acquired 7. On November 8, 1976, COB issued 40,000 direct ownership and control of 4,517 shares, repre- shares of its voting stock in exchange for $250,000 senting 90.34 per cent of the total outstanding in cash. Of such shares, 39,400 were issued to voting shares of Bank. Ahmanson and 100 of such shares were issued to 3. Ahmanson became a bank holding company each of the six initial directors of COB. The shares on December 31, 1970, as a result of the 1970 issued to the directors of COB were held in trust by Amendments to the BHC Act, by virtue of its direct those individuals for the benefit of Ahmanson. On ownership and control at that time of more than 25 the same date, 360,000 shares of COB were issued per cent of the outstanding voting shares of Bank, to Bank in exchange for all of the commercial and it registered as such with the Board on August banking assets and liabilities of Bank as of that 20, 1971. Ahmanson would have been a bank hold- date. Such assets included certain real property and ing company on July 7, 1970, if the BHC Act all improvements thereon, known as 9145 Wilshire Amendments of 1970 had been in effect on such Boulevard, Beverly Hills; 3701 Wilshire Boulevard, date, by virtue of its direct and indirect ownership Los Angeles; and 1460 Westwood Boulevard, Los and control on that date of more than 25 per cent of Angeles, all in California. the outstanding voting shares of Bank. On . 8. On November 8, 1976, Ahmanson and Bank November 5, 1976, Ahmanson owned and con- sold all of the 400,000 shares, representing 100 per trolled 100 per cent of the outstanding voting shares cent of the outstanding voting shares of COB to a (less directors' qualifying shares) of Bank. group of individuals headed by Mr. Roberto S. 4. On November 8, 1976, Ahmanson held Benedicto for $5,114,060 in cash. property acquired by it on or before July 7, 1970, 9. Effective November 8, 1976, the California the disposition of which would be necessary or State Banking Department approved a change in appropriate to effectuate section 4 of the BHC Act the name of Bank to Ahmanson Trust Company and if Ahmanson were to remain a bank holding com- issued a replacement certificate of authority for pany beyond December 31, 1980, and which Ahmanson Trust Company to engage in the trust business. Ahmanson Trust Company, the shares of which were retained by Ahmanson, was thereby empowered to transact the business of a trust xPursuant to sections 2(d)(2) and 3(e)(2) of the Tax Act, in the company as defined and provided for in the Financase of 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 cial Code of the State of California, but not to certification described in section 6158(a) shall be treated as made accept deposits that the depositor has a right to before the sale, and the certification described in section withdraw on demand or engage in the business of 6158(c)(2) shall be treated as made before the close of the calendar year following the calendar year in which the last such sale making commercial loans. On November 23, 1976, occurred, if application for such certification was made before the Ahmanson Trust Company amended its articles of close of December 31, 1976. Ahmanson's request for such certifications was received by the Board on October 21, 1976. incorporation to reflect the change in its business 2This information derives from Ahmanson's correspondence activities. with the Board concerning its requests for certification, Ahman- 10. Neither Ahmanson nor any subsidiary of son's Registration Statement filed with the Board pursuant to the BHC Act, and other records of the Board. Ahmanson holds any interest (including a debtor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1028 Federal Reserve Bulletin • November 1977 creditor relationship) in COB or in any other bank COB were all or part of the property by reason of or any company that controls a bank. which Ahmanson controlled (within the meaning of 11. None of the individuals that purchased the section 2(a) of the BHC Act) a bank or bank holding shares of COB holds any interest (including a company; debtor-creditor relationship) in Ahmanson or any (C) the exchange of the commercial banking assubsidiary of Ahmanson. sets of Bank for shares of COB and the sale of those 12. No officer, director (including honorary or shares by Ahmanson and Bank was necessary or advisory director) or employee with policy-making appropriate to effectuate the policies of the BHC functions of Ahmanson or any subsidiary of Act; and Ahmanson also holds any such position with COB, (D) Ahmanson has (before the expiration of the or with any other bank or any company that con- period prohibited property is permitted under the trols a bank. BHC Act to be held by a bank holding company) 13. Ahmanson does not control in any manner ceased to be a bank holding company. the election of a majority of directors or exercise a This certification is based upon the representacontrolling influence over the management or tions made to the Board by Ahmanson and upon the policies of COB, or of any other bank or company facts set forth above. In the event the Board should that controls a bank. hereafter determine that facts material to this cer- On the basis of the foregoing information, it is tification are otherwise than as represented by hereby certified that: Ahmanson, or that Ahmanson has failed to disclose (A) at the time of the exchange of the commer- to the Board other material facts, it may revoke this cial banking assets of Bank for shares of COB and certification. the sale of the shares of COB by Ahmanson and By order of the Board of Governors, acting Bank, Ahmanson was a qualified bank holding through its General Counsel, pursuant to delegated corporation, within the meaning of sections authority (12 CFR § 265.2(b)(3)), effective October 6158(f)(1) and 1103(b) of the Code, and satisfied the 17, 1977. requirements of those sections; (Signed) THEODORE E. ALLISON, (B) the assets that Bank exchanged for shares of [SEAL] Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT BY THE BOARD OF GOVERNORS During October 1977, the Board of Governors approved the application listed below. A copy is available upon request to Publication Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action (effective Applicant Bank(s) date) First National Cincinnati Corporation, The Third National Bank of Circleville, 10/31/77 Cincinnati, Ohio Circleville, Ohio BY FEDERAL RESERVE BANKS Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1029 Section 3 Reserve Effective Applicant Bank(s) Bank date United Bank Corporation of New York, Hempstead Bank, Hempstead, New York 8/18/77 Hempstead, New York New York New Virginia Bancorporation, The Bank of Warrenton, Richmond 10/26/77 Springfield, Virginia Warrenton, Virginia First Bankers Corporation of National Bank of Cape Atlanta 8/9/77 Florida, Pompano Beach, Canaveral, Cape Canaveral, Florida Florida Old Kent Financial Corporation, Peoples Bank and Trust, N.A. Chicago 10/25/77 Grand Rapids, Michigan Trenton, Michigan Ameribanc, Inc., St. Joseph, Missouri Morgan County Bank, Kansas City 8/26/77 Versailles, Missouri First Texas Bancorp, Inc., First National Bank, Dallas 9/14/77 Georgetown, Texas Belton, Texas ORDER APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant Bank(s) Bank date 40 Main Street Bank, Hempstead, Hempstead Bank, Hempstead, New York 8/18/77 New York New York PENDING CASES INVOLVING THE BOARD OF GOVERNORS* Central Bank v. Board of Governors, filed October Farmers State Bank of Crosby v. Board of Gover- 1977, U.S.C.A. for the District of Columbia. nors, filed January 1977, U.S.C.A. for the Plaza Bank of West Port v. Board of Governors, Eighth Circuit. filed September 1977, U.S.C.A. for the Eighth National Automobile Dealers Association, Inc. v. Circuit. Board of Governors, filed November 1976, First State Bank of Abilene, Texas v. Board of U.S.C.A. for the District of Columbia. Governors, filed August 1977, U.S.C.A. for the First Security Corporation v. Board of Governors, District of Columbia. filed August 1976, U.S.C.A. for the Tenth Cir- BankAmerica Corporation v. Board of Governors, cuit. filed May 1977, U.S.D.C. for the Northern Dis- Central Wisconsin Bankshares, Inc. v. Board of trict of California. Governors, filed June 1976, U.S.C.A. for the BankAmerica Corporation v. Board of Governors, Seventh Circuit. filed May 1977, U.S.C.A. for the Ninth Circuit. First Security Corporation v. Board of Governors, * This list of pending cases does not include suits against the filed March 1977, U.S.C.A. for the Tenth Cir- Federal Reserve Banks in which the Board of Governors is not cuit. named a party. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1030 Federal Reserve Bulletin • November 1977 National Urban League, et al. v. Office of the of Insurance Agents, Inc. v. Board of Gover- Comptroller of the Currency, et. al., filed April nors, filed August 1975, actions consolidated in 1976, U.S.D.C. for the District of Columbia U.S.C.A. for the Fifth Circuit. Circuit. David R. Merrill, et. al. v. Federal Open Market Farmers & Merchants Bank of Las Cruces, New Committee of the Federal Reserve System, filed Mexico v. Board of Governors, filed April 1976, May 1975, U.S.D.C. for the District of Colum- U.S.C.A. for the District of Columbia Circuit. bia, appeal pending, U.S.D.A. for the District of Grandview Bank & Trust Company v. Board of Columbia. Governors, filed March 1976, U.S.C.A. for the Louis J. Roussel v. Board of Governors, filed April Eighth Circuit. 1975, U.S.D.C. for the Eastern District of Association of Bank Travel Bureaus, Inc. v. Board Louisiana. of Governors, filed February 1976, U.S.C.A. for Georgia Association of Insurance Agents, et al. v. the Seventh Circuit. Board of Governors, filed October 1974, Memphis Trust Company v. Board of Governors, U.S.C.A. for the Fifth Circuit. filed February 1976, U.S.D.C. for the Western Alabama Association of Insurance Agents, et. al. District of Tennessee. v. Board of Governors, filed July 1974, First Lincolnwood Corporation v. Board of Gover- U.S.C.A. for the Fifth Circuit. nors, filed February 1976, U.S.C.A. for the Bankers Trust New York Corporation v. Board of Seventh Circuit. Governors, filed May 1973, U.S.C.A. for the Roberts Farms, Inc. v. Comptroller of the Curren- Second Circuit. cy, et. al., filed November 1975, U.S.D.C. for the Southern District of California. t Decisions have been handed down in these cases, subject to Florida Association of Insurance Agents, Inc. v. appeals noted. Board of Governors, and National Association $ The 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

1031 Announcements CHANGE IN DISCOUNT RATE than $300 million that control subsidiaries—other than banks—that extend credit (such as finance The Board of Governors of the Federal Reserve companies and mortgage companies). System has announced its approval of actions by Bank holding companies to be inspected the directors of the 12 Federal Reserve Banks annually—the Federal Reserve now inspects most increasing the discount rate from 53A per cent to 6 bank holding companies no less than once in 3 per cent, effective October 26. years—include most of those with assets greater The Board's action was taken in recognition of than $300 million. (Companies with exceptionally increases that have occurred recently in other low debt to equity ratios and whose subsidiaries short-term interest rates and will bring the discount extend relatively little credit would not be rate into closer alignment with short-term rates examined annually.) generally. The increase will also reduce the incen- Criteria and frequency of inspection of bank tive for member banks to borrow from the Federal holding companies not qualifying for the new pro- Reserve. Member bank borrowings increased to cedures will remain unchanged. more than $1.8 billion during the week ending In adopting its new supervisory program for bank October 19 compared with a level of $337 million 5 holding companies the Board said: weeks earlier. "The development of numerous complex and The discount rate is the interest rate that is diverse bank holding company structures and accharged member banks when they borrow from tivities has prompted the expansion of the Board's their district Federal Reserve Bank. continuing program for their supervision and regulation. "Implementation of the proposed annual inspec- SUPERVISION OF tion guideline would markedly increase the Sys- BANK HOLDING COMPANIES tem's review of total assets controlled by bank holding companies and would afford increased op- The Board of Governors has announced a program portunity to identify and supervise those holding of intensified supervision of bank holding com- companies warranting increased supervisory attenpanies. tion. The program—which includes new inspection "It is believed that the scope of the proposed requirements—becomes effective January 1, 1978. inspection required by the new format—which in- It will subject 85 to 90 per cent of total bank cludes a requirement for classification of the loans holding company assets to Federal Reserve review of nonbank subsidiaries that extend credit—would every year. reasonably insure a determination of the financial The modified program for supervision of bank condition of large bank holding companies." holding companies calls for: The new inspection report was developed by a 1. A standardized k" Report of Bank Holding Com- task force including supervisory personnel of both pany Inspection" to be used by all Reserve Banks the Board of Governors and the Federal Reserve in the inspection of companies subject to the new Banks. The Federal Deposit Insurance Corporation program. and the Office of the Comptroller of the Currency 2. An annual inspection of most large bank hold- were both consulted in developing the program. ing companies. Bank holding companies whose condition will be reported on the basis of the criteria of the new REGULATION Q: Amendment standardized inspection form include: 1. All bank holding companies with consolidated The Board of Governors on November 1, 1977, assets of more than $300 million. modified its rules to provide consumers with more 2. Bank holding companies with assets of less flexibility in handling their time deposit accounts. A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1032 Federal Reserve Bulletin • November 1977 change in the rules concerning early withdrawal of originally established in 1969 as part of a thentime deposits will: needed effort to moderate the use of Euro-dollars in 1. Permit member banks, at the request or upon the financing of U.S. domestic credit. permission of their depositors, to extend the matur- No change was made in the 4 per cent reserve ity of a time deposit without penalty when there is required on borrowings by member banks from no increase in the rate of interest. their overseas branches or from foreign banks 2. Permit member banks to pay a time deposit abroad. before maturity without penalty upon the death of The Board's action will not affect loans by U.S. any owner of the deposit, whether or not that banks to foreign borrowers and should have no owner's name appears on the deposit. This will ease impact upon the availability of credit from domestic the administrative burden in the settlement of offices of U.S. banks. estates. The action will enable the foreign branches of Prior to this change, Regulation Q (Interest on American banks to compete on more equal terms Deposits) required that an extension of maturity be with foreign banks in lending to U.S. borrowers. In treated as a payment of a time deposit before recent years foreign banks have increased their maturity subject to the penalty for early withdrawal efforts to lend to U.S. corporations from offices and permitted a member bank to pay a time deposit outside the United States. As the spread between before maturity without penalty following the death Euro-dollar lending and deposit rates has narrowed, of a person whose name appears on the deposit. the Board's Euro-dollar reserve requirement on The new rules are effective December 1, 1977. U.S. branch lending to U.S. residents has become The Board's rules in this respect will then be the an important factor limiting the ability of overseas same as those of the Federal Deposit Insurance offices of U.S. banks to bid for the business of U.S. Corporation and of the Federal Home Loan Bank firms against foreign banks that are not required to Board. maintain reserves against Euro-dollar deposits. Reductions in the maturity as well as increases in Outstanding loans to U.S. residents from foreign the rate of interest paid on the deposit will continue branches of U.S. banks currently amount to about to be treated as an early withdrawal subject to $500 million; they have ranged between $200 milpenalty. lion and $800 million over the past 2 years. The penalty for withdrawal of a time deposit The new 1 per cent reserve requirement must be before maturity is (1) a reduction of the interest rate maintained by affected banks beginning December paid on the portion of the time deposit withdrawn to 1, based initially on the level of deposits during the the maximum permissible passbook savings rate, period of October 20-November 16. and (2) a loss of 3 months' interest on the portion In announcing the reduction, the Board also said withdrawn. that it intends to monitor developments in foreign Customers entering into a time deposit contract branch lending to U.S. residents. To aid in this must be supplied with a written statement specify- monitoring and to regularize the basis for reserve ing that the customer has contracted to keep the reporting, the Board has issued a proposal to amend funds on deposit for a fixed time and describing the Regulation M to provide that a 1-week period— penalty for early withdrawal. instead of the current 4—be used by banks in computing their required reserves on Euro-dollar transactions. Comment on the proposal will be REGULATION M: received by the Board through December 6. Amendment and Proposal In a move designed to improve the competitive PROPOSED CHANGES position of U.S. banks abroad, the Board of Governors has amended Regulation M (Foreign Activities The Board of Governors on October 20, 1977, of National Banks) to reduce reserve requirements issued for comment proposals for revised financial on the dollar deposits that foreign branches of U.S. reporting requirements that would provide new banks use to lend funds to American borrowers. information on the foreign operations of State Effective December 1, the Board reduced the member banks and additional information on large required reserve on this type of deposit from 4 per banks. The Board asked for comment through cent to 1 per cent. This reserve requirement was November 21, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 1033 In addition, uniform guidelines for the enforce- Richard H. Puckett and Jared J. Enzler have ment of the Truth in Lending law and its regulatory been promoted to Associate Research Division rules (Regulation Z—Truth in Lending) have been Officers in the Division of Research and Statistics. proposed for public comment by the five Federal agencies that regulate banks, thrift institutions, and credit unions. Comment should be sent by December 6, 1977, to Interagency Enforcement Policy— FEDERAL RESERVE ACT: Regulation Z, Washington, D.C. 20219. Revised Edition The Board of Governors has published a reprint of the Federal Reserve Act and related statutes. The CHANGES IN BOARD STAFF revised edition includes legislation enacted through The Board of Governors has announced the fol- 1976. lowing official staff appointments and promotions A complimentary copy is being sent to the head effective October 9, 1977: office of each member bank of the Federal Reserve John D. Paulus, Chief of the Banking Section, System. Additional copies may be obtained by has been named Associate Research Division Of- member banks at a cost of $2.50 each. Copies are ficer in the Division of Research and Statistics. Mr. also available to the public at $2.50 each, from the Paulus, who joined the Board's staff in 1972, holds Board's Division of Administrative Services or any an A.B. from the University of Michigan and a Federal Reserve Bank. Ph.D. from the University of Chicago. Edward T. Mulrenin has been appointed Assistant Controller. Mr. Mulrenin, with the Board since SYSTEM MEMBERSHIP: 1973, is a graduate of Fordham University and Admission of State Bank holds an M.B.A. from Columbia University and a J.D. from George Washington University. The following bank was admitted to membership in John R. Weis has been appointed Assistant Di- the Federal Reserve System during the period rector of the Division of Personnel. Mr. Weis, who October 16, 1977, through November 15, 1977: joined the Board's staff in 1972, holds a B.A. from the University of Maryland where he also did South Dakota graduate work in the area of personnel management Pierre American State Bank of and organizational behavior. South Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1034 Industrial Production Released for publication November 15 crease in coal output to build stocks reduced by recent wildcat strikes and in anticipation of a possi- Industrial production increased by an estimated 0.3 ble strike in December. per cent in October to 139.1 per cent of the 1967 average, following a 0.4 per cent gain in September. Seasonally adjusted, ratio scale, 1967=100 Increases in output were widespread among products and most materials. Industrial production in October was 6.8 per cent higher than a year earlier. Output of consumer goods rose 0.6 per cent in October, reflecting another sizable gain in durable goods. Output of automotive products, which include auto assemblies, increased 2.2 per cent, and production of home goods rose 0.6 per cent. Output of nondurable consumer goods again increased only slightly as in September. Production of business equipment in October increased 0.3 per cent, despite strikes in the aircraft industry that reduced appreciably the output of transit equipment. Production of construction supplies increased sharply for the second successive month. Output of durable goods materials increased slightly in October; production of iron and steel was reduced further, and the output of copper remained below pre-strike levels. Output of nondurable goods materials was about unchanged. Energy ma- F.R. indexes, seasonally adjusted. Latest figures: October. terials output rose sharply, reflecting a large in- * Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 PPeerr cceenntt cchhaannggeess ffrroomm—— IInndduussttrriiaall pprroodduuccttiioonn 1977 July Aug. Sept." Oct/ Month ago Year ago Q2 to Q3 Total 138.7 138.2 138.7 139.1 .3 6.8 1.1 Products, total 138.7 138.4 138.9 139.4 .4 7.9 1.6 Final products 136.8 136.2 136.7 137.0 .2 8.1 1.4 Consumer goods 145.4 144.6 145.2 146.0 .6 7.4 1.3 Durable goods 158.0 154.5 156.4 158.2 1.2 13.9 2.0 Nondurable goods 140.3 140.6 140.8 141.1 .2 4.8 .9 Business equipment 151.2 151.0 151.4 151.8 .3 11.9 1.7 Intermediate products 146.3 146.4 146.9 148.5 1.1 7.0 2.1 Construction supplies 141.2 141.7 143.5 145.5 1.4 7.9 2.5 Materials 138.9 138.0 138.4 138.8 .3 5.3 .5 p Preliminary. p 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 A25 Commercial paper and bankers time and savings deposits at Federally acceptances outstanding insured institutions A26 Prime rate charged by banks on A10 Margin requirements short-term business loans A1 1 Federal Reserve open market A26 Terms of lending at commercial banks transactions A27 Interest rates in money and capital markets FEDERAL RESERVE BANKS A28 Stock market—Selected statistics A12 Condition and F.R. note statements A13 Maturity distribution of loan and A29 Savings institutions—Selected assets security holdings and liabilities FEDERAL FINANCE MONETARY AND CREDIT AGGREGATES A30 Federal fiscal and financing operations A13 Bank debits and deposit turnover A31 U.S. Budget receipts and outlays A14 Money stock measures and components A32 Federal debt subject to statutory A15 Aggregate reserves and deposits of limitation member banks A32 Gross public debt of U.S. Treasury— A15 Loans and investments of all commercial banks Types and ownership A33 U.S. Government marketable securities—Ownership, by maturity COMMERCIAL BANK ASSETS AND LIABILITIES A34 U.S. Government securities dealers— A16 Last-Wednesday-of-month series Transactions, positions, and financing A17 Call-date series A35 Federal and Federally sponsored credit A18 Detailed balance sheet, Mar. 31, 1977 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 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 A55 U.S. reserve assets A37 Corporate securities—Net change in A56 Selected U.S. liabilities to foreigners amounts outstanding and to foreign official institutions A37 Open-end investment companies—Net 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 Q4 Ql Q2 Q3 May June July Aug. Sept. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 Member bank reserves 1 Total 4.4 2.7 3.0 9.0 1.5 4.8 16.9 9.8 -.5 2 Required 4.0 3.0 3.5 8.6 .9 6.9 12.5 12.5 -.8 3 Nonborrowed 4.8 2.6 1.9 3.4 -3.1 2.9 14.9 -15.4 14.6 Concepts of money 1 4 M-1 6.5 44..22 8.4 9.3 .7 4.5 1188..33 '5.9 7.3 5 M-2 12.5 9.9 9.2 10.3 4.7 8.1 16.6 6.4 7.9 6 M-3 14.4 11.3 10.0 12.3 7.3 9.8 16.1 11.4 12.0 Time and savings deposits Commercial banks: * 7 Total 12.2 12.5 8.3 10.0 8.3 13.2 11.0 6.9 7.6 8 Other than large CD's 17.1 14.0 9.8 11.0 7.6 10.7 15.4 7.1 8.4 9 Thrift institutions 2 17.3 13.4 11.2 15.4 11.2 r12.2 '15.5 '18.4 17.9 10 Total loans and investments at commercial banks 3 10.8 8.8 11.9 9.4 10.3 8.9 9.3 12.3 3.7 1976 1977 1977 Q4 Ql Q2 Q3 June July Aug. Sept. Oct. Interest rates (levels, per cent per annum) Short-term rates 11 4.88 4.66 5.16 5.82 5.39 5.42 5.90 6.14 6.47 12 Treasury bills (3-month market yield) 5 4.67 3.63 4.84 5.50 5.02 5.19 5.49 5.81 6.16 13 Commercial paper (90- to 119-day) 6 4.91 4.74 5.15 5.74 5.42 5.38 5.75 6.09 6.51 14 Federal Reserve discount 7 5.39 5.25 5.25 5.42 5.25 5.25 5.27 5.75 5.80 Long-term rates Bonds: 15 U.S. Govt. 8 7.54 7.62 7.68 7.60 7.64 7.60 7.64 7.57 7.71 16 State and local government 9 6.18 5.88 5.70 5.59 5.62 5.63 5.62 5.51 5.64 17 Aaa utility (new issue) 1 o 8.15 8.17 8.21 8.09 8.08 8.14 8.04 8.07 8.23 1188 Conventional mortgages * * 88..9955 88..8822 88..9955 99..0000 99..0000 99..0000 99..0000 99..0000 1 M-1 equals currency plus private demand deposits adjusted. 7 Rate for the Federal Reserve Bank of New York. M-2 equals M-1 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. II Average rates on new commitments for conventional first mortgages 3 Quarterly changes calculated from figures shown in Table 1.23. on new homes in primary markets, unweighted and rounded to nearest 4 Seven-day averages of daily effective rates (average of the rates on 5 basis points, from Dept. of Housing and Urban Development. a given date weighted by the volume of transactions at those rates). *2 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 NonfinancialS tatistics • November 1977 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily Weekly averages of daily figures for weeks endingfigures Factors 1977 1977 Aug. Sept. Oct.f Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19f Oct. 26? SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding... 110,886 112,171 113,392 109,084 111,964 117,116 118,786 110,855 112,352 112,730 2 U.S. Govt, securities1 95,977 97,618 98,037 94,747 96,723 102,860 103,925 96,317 96,402 98,047 3 Bought outright 95,835 96,427 97,395 94,059 96,723 99,354 101,172 95,883 96,402 97,862 4 Held under repurchase agreement 142 1,191 642 688 33,,550066 22,,775533 434 185 5 Federal agency securities 7,412 7,419 7,389 7,366 7,329 77,,555544 77,,660000 7,374 7,329 7,358 6 Bought outright 7,403 7,338 7,329 7,343 7,329 77,,332299 77,,332299 7,329 7,329 7,329 7 Held under repurchase agreement 9 81 60 23 225 271 45 29 8 Acceptances 34 109 91 74 4 262 366 59 4 34 9 Loans 1,071 634 1,319 337 738 718 883 1,051 1,861 1,443 10 Float 3,543 3,634 4,085 3,943 4,269 2,912 3,266 3,744 4,430 3,432 11 Other Federal Reserve assets 2,850 2,757 2,All 2,618 2,901 2,810 2,746 2,310 2,327 2,416 12 Gold stock 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 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 11,189 11,228 11,272 11,225 11,229 11,242 11,231 11,267 11,271 11,284 ABSORBING RESERVE FUNDS 15 Currency in circulation 97,780 98,180 98,868 98,704 98,154 97,714 98,122 99,047 99,194 98,856 16 Treasury cash holdings 433 436 429 440 433 431 433 432 432 426 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury 6,025 6,956 6,618 3,842 6,188 12,089 12,622 5,520 4,704 5,985 18 Foreign. 310 368 298 464 283 346 327 267 327 287 19 Other2 607 668 699 661 733 603 730 871 617 656 20 Other F.R. liabilities and capital... 3,341 3,434 3,501 3,311 3,545 3,622 3,576 3,309 3,426 3,623 21 Member bank reserves with F.R. Banks 26,373 26,152 27,046 25,683 26,653 26,349 27,002 25,471 27,719 26,977 End-of-month figures Wednesday figures 1977 1977 Aug. Sept. Oct.f Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 v Oct. 26*> SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding 113,641 118,845 -109,385 111,945 113,724 122,230 114,503 113,226 111,833 114,751 23 U.S. Govt, securities1 98,436 104,715 94,597 96,114 96,878 104,275 100,004 98,220 94,278 99,362 24 Bought outright 97,357 102,405 94,597 95,300 96,878 99,595 98,742 97,737 94,278 98,068 25 Held under repurchase agreement 11,,007799 2,310 814 44,,668800 1,262 483 11,,229944 26 Federal agency securities 77,,550055 7,639 7,329 7,370 7,329 77,,668800 7,461 7,389 7,329 77,,552299 27 Bought outright 77,,335544 7,329 7,329 7,329 7,329 77,,332299 7,329 7,329 7,329 77,,332299 28 Held under repurchase agreement 151 310 41 351 113322 60 200 29 Acceptances 131 482 150 4 436 8888 115533 4 222222 30 Loans 1,265 1,069 922 358 2,707 1,292 467 668877 3,551 11,,118822 31 Float 3,842 2,067 3,973 5,270 4,110 5,545 3,765 44,,555533 4,366 33,,990077 32 Other Federal Reserve assets 2,462 2,873 2,564 2,683 2,696 3,002 2,718 22,,222244 2,305 22,,554499 33 Gold stock 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 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 11,161 11,206 11,291 11,227 11,231 11,246 11,250 11,270 11,273 11,288 ABSORBING RESERVE FUNDS 36 Currency in circulation 97,943 97,823 98,940 98,754 98,091 98,101 98,756 99,585 99,259 99,133 37 Treasury cash holdings 440 434 421 433 434 429 431 434 430 425 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury 6,115 15,740 6,398 3,989 9,803 11,197 6,521 4,630 5,215 6,375 39 Foreign 535 382 425 324 249 300 298 247 243 344 40 Other 2 679 853 715 616 757 769 561 710 562 708 41 Other F.R. liabilities and capital... 3,623 3,659 3,704 3,332 3,395 3,696 3,228 3,304 3,466 3,637 42 Member bank reserves with F.R. Banks 28,262 23,953 22,868 28,519 25,021 31,779 28,753 28,381 26,726 28,212 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 1976 1977 Dec. Feb. Mar. Apr. May July Aug. Sept. All member banks Reserves: 1 At F.R. Banks 26,430 25,725 25,849 26,096 25,970 25,646 26,663 26,373 26,152 2 Currency and coin 8,548 8,326 8,134 8,368 8,610 8,609 8,622 8,712 8,887 3 Total held i 35,136 34,199 34,135 34,613 34,732 34,406 35,391 35,186 35,156 4 Required 34,964 34,234 33,870 34,602 34,460 34,293 35,043 34,987 34,965 5 Excess1 172 -35 265 11 272 113 348 199 191 Borrowings at F.R. Banks:2 6 Total 62 79 110 73 200 262 336 1,071 634 7 Seasonal 12 12 13 14 31 55 60 101 112 Large banks in New York City 8 Reserves held 6,520 6,442 6,331 6,264 6,310 6,241 6,359 6,272 6,025 9 Required 6,602 6,537 6,259 6,351 6,279 6,188 6,342 6,247 6,022 10 Excess.... -82 -95 72 -87 31 53 17 25 3 11 Borrowings2 15 47 44 16 18 36 74 157 75 Large banks in Chicago 12 Reserves held 1,632 1,624 1,610 1,629 1,637 1,662 1,573 1,653 1,655 13 Required 1,641 1,624 1,611 1,634 1,634 1,627 1,606 1,622 1,634 14 Excess -9 -1 -5 3 35 -33 31 21 15 Borrowings2 4 3 4 15 6 5 12 Other large banks 16 Reserves held 13,117 12,683 12,779 13,090 13,067 12,869 13,438 13,290 13,362 17 Required 13,053 12,765 12,705 13,110 12,996 12,943 13,286 13,270 13,355 18 Excess 64 -82 74 -20 71 -74 152 20 7 19 Borrowings2 14 4 29 23 62 80 79 530 183 All other banks 20 Reserves held 13,867 13,450 13,415 13,630 13,718 13,634 14,021 13,971 14,114 21 Required 13,668 13,308 13,295 13,507 13,551 13,535 13,809 13,848 13,954 22 Excess 199 142 120 123 167 99 212 123 160 23 Borrowings2 29 28 34 34 116 131 111 379 364 Weekly averages of daily figures for weeks ending— 1977 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 v AH member banks Reserves: At F.R. Banks 26,498 26,470 25,755 25,683 26,653 26,349 27,002 25,471 27,719 Currency and coin 8,201 8,773 8,941 9,281 8,177 9,120 8,990 9,201 8,620 Total held1 34,800 35,345 34,797 35,060 34,924 35,614 36,218 34,798 36,413 Required 34,772 34,974 34,566 34,739 34,927 35,382 35,817 34,629 36,278 Excess1 28 371 231 321 3 232 401 169 135 Borrowings at F.R. Banks:2 Total 1,665 1,393 636 337 738 718 883 1,051 1,861 Seasonal 116 130 114 108 109 115 111 113 112 Large banks in New York City 31 Reserves held 6,178 6,128 5,995 6,202 5,808 6,096 6,325 5,768 6,650 32 Required 6,110 6,100 6,037 6,046 5,905 6,028 6,280 5,839 6,591 33 Excess 68 28 -42 156 -97 68 45 -71 59 34 Borrowings2 443 26 49 217 159 285 Large banks in Chicago 35 Reserves held 1,572 1,681 1,612 ,695 1,652 1,594 1,663 ,651 1,634 36 Required 1,586 1,634 1,611 ,667 1,660 1,597 1,642 ,597 1,744 3 3 7 8 Bo E r x ro ce w s i s n gs2 -14 47 1 28 -8 2 9 -3 1 5 2 1 1 5 5 1 4 3 -11 5 0 6 Other large banks 39 Reserves held. .. 13,052 13,480 13,199 13,243 13.398 13,571 13,832 13,265 13,650 40 Required 13,167 13,341 13,121 13,277 13.399 13,532 13,676 13,288 13,864 41 Excess -115 139 78 -34 -1 39 156 -23 -214 42 Borrowings 2.... 798 729 137 54 198 293 307 661 1,014 All other banks 43 Reserves held. 13,998 14,056 13,991 13,920 14,066 14,353 14,398 14,114 14,159 44 Required... 13,909 13,899 13,797 13,749 13,963 14,225 14,219 13,905 14,079 45 Excess 89 157 194 171 103 128 179 209 80 46 Borrowings2.. 424 638 450 283 294 410 402 377 506 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 • November 1977 1.13 FEDERAL FUNDS TRANSACTIONS of Money Market Banks Millions of dollars, except as noted 1977, week ending Wednesday— Type Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Total, 46 banks Basic reserve position 1 Excess reserves1 156 13 210 -17 52 191 111 -16 38 LESS: 2 Borrowings at F.R. Banks... 225 58 5 264 76 202 138 795 345 3 Net interbank Federal funds transactions 15,102 18,968 21,174 19,406 14,978 15,361 20,620 18,666 16,378 EQUALS : Net surplus, or deficit (-): 4 Amount -15,171 -19,014 -20,968 -19,687 -15,002 -15,373 -20,647 -19,477 -16,684 5 Per cent of average required reserves 102.2 129.7 141.1 133.3 100.6 100.6 141.5 122.9 113.2 Interbank Federal funds transactions Gross transactions: Purchases 22,411 26,178 28,075 26,430 23,969 23,847 27,466 24,945 22,681 Sales 7,309 7,210 6,902 7,024 8,991 8,486 8,646 6,279 6,304 Two-way transactions2 4,788 4,901 4,984 4,866 5,156 5,159 4,820 4,937 5,373 Net transactions: Purchases of net buying banks.. 17,624 21,277 23,091 21,564 18,813 18,688 22,646 20,008 17,309 Sales of net selling banks 2,522 2,309 1,917 2,159 3,835 3,327 2,026 1,342 931 Related transactions with U.S. Govt, securities dealers 11 Loans to dealers3 3,497 4,230 4,138 3,374 2,594 3,409 5,475 4,498 3,049 12 Borrowing from dealers4. . . 1,629 1,950 1,865 1,636 2,969 2,503 2,384 2,133 1,762 13 Net loans 1,868 2,281 2,273 1,739 -375 906 3,091 2,365 1,287 8 banks in New York City Basic reserve position 14 Excess reserves1 62 -69 100 -24 36 68 -32 42 4 LESS: 15 Borrowings at F.R. Banks. .. 26 29 199 159 285 200 16 Net interbank Federal funds transactions 4,927 7,187 8,090 7,218 6,832 6,608 8,494 6,173 5,195 EQUALS : Net surplus, or deficit (-): 17 Amount -4,892 -7,285 -7,990 -7,441 -6,797 -6,699 -8,525 -6,416 -5,391 18 Per cent of average required reserves 88.8 133.0 145.7 139.0 124.4 117.4 160.5 106.6 103.4 Interbank Federal funds transactions Gross transactions: 19 Purchases 5,835 8,065 8,744 7,808 7,902 7,187 8,984 7,203 6,271 20 Sales 908 878 654 590 1,070 579 490 1,030 1,076 21 Two-way transactions2 908 878 654 590 1,070 579 490 991 1,076 Net transactions: 22 Purchases of net buying banks.. 4,927 7,187 8,090 7,218 6,832 6,608 8,494 6,212 5,195 23 Sales of net selling banks 39 Related transactions with U.S. Govt, securities dealers 24 Loans to dealers3 1,690 2,218 2,439 2,107 1,425 1,842 3,357 2,595 1,819 25 Borrowing from dealers4. . . 791 859 899 1,083 1,086 1,298 1,246 1,181 1,004 26 Net loans 899 1,359 1,540 1,024 338 545 2,111 1,413 815 38 banks outside New York City Basic reserve position 27 Excess reserves1 95 82 110 c7 c16 122 143 -58 34 LESS: 28 Borrowings at F.R. Banks... 199 29 5 66 76 44 138 510 145 29 Net interbank Federal funds transactions 10,175 11,781 13,084 12,188 8,146 8,753 12,126 12,493 11,182 EQUALS : Net surplus, or deficit (-): 30 Amount -10,279 -11,729 -12,979 c — 12,246 c —8,206 -8,675 -12,122 -13,061 -11,294 31 Per cent of average required reserves 110.1 127.8 138.4 130.1 c86.8 90.6 130.6 132.9 118.6 Interbank Federal funds transactions Gross transactions: Purchases 16,576 18,113 19,331 18,622 16,067 16,660 18,483 17,742 16,410 Sales 6,401 6,332 6,248 6,434 7,921 7,907 6,356 5,249 5,228 Two-way transactions2 3,880 4,032 4,330 4,276 4,086 4,580 4,330 3,946 4,297 Net transactions; Purchases of net buying banks.. 12,696 14,090 15,001 14,346 11,981 12,080 14,152 13,796 12,113 Sales of net selling banks 2,522 2,309 1,917 2,159 3,835 3,327 2,026 1,303 931 Related transactions with U.S. Govt, securities dealers 37 Loans to dealers3 1,806 2,013 1,699 1,267 1,169 1,567 2,118 1,903 1,230 38 Borrowing from dealers4.... 837 1,091 966 553 1,883 1,206 1,137 952 758 39 Net loans 969 922 734 714 -714 361 981 952 All 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 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 48 17 39 4 -3 18 82 -12 16 LESS: 41 Borrowings at F R Banks 1188 4400 42 Net interbank Federal funds transactions 5,614 6,636 7,035 6,761 4,684 5,288 6,391 6,446 5,524 EQUALS: Net surplus, or deficit (-): 43 Amount -5,566 — 6,619 -6,997 -6,775 -4,687 -5,270 -6,309 -6,498 -5,508 44 Per cent of average required reserves 364.7 440.6 448.6 436.2 314.7 343.6 423.6 397.5 358.6 Interbank Federal funds transactions Gross transactions: 45 Purchases 6,763 7,584 7,875 7,720 5,934 6,310 7.275 7,229 6,537 46 Sales 1,149 948 840 959 1.250 1,023 884 783 1,014 47 Two-way transactions2 1,149 947 838 955 1,208 1,023 879 770 1,014 Net transactions: 48 Purchases of net buying banks... 5,613 6,636 7,037 6,765 A,121 55,,228877 6,396 6,495 5,524 4499 Sales of net selling banks. . . . 2 4 4433 5 1122 Related transactions with U.S. Govt, securities dealers 50 Loans to dealers3 281 421 330 239 190 254 491 372 195 51 Borrowing from dealers4 125 144 312 108 846 241 269 128 171 52 Net loans 156 277 18 131 -657 13 222 243 24 33 other banks Basic reserve position 53 Excess reserves1 47 65 71 3 19 105 60 -46 18 LESS: 54 Borrowings at F.R. Banks 199 29 5 48 76 44 138 470 145 55 Net interbank Federal funds transactions 4,561 5,145 6,048 5,427 3,462 3,466 5,735 6,047 5,659 EQUALS: Net surplus, or deficit (-): 56 Amount -4,713 -5,110 -5,982 -5,472 -3,519 -3,405 -5,813 -6,563 -5,786 57 Per cent of average required reserves 60.3 66.6 76.5 69.6 44.2 42.3 74.6 80.1 72.5 Interbank Federal funds transactions Gross transactions: 58 Purchases 9,813 10,530 11,456 10,902 10,133 10,350 11,208 10,513 9,873 59 Sales 5,252 5,385 5,408 5,475 6,671 6,884 5,472 4,466 4,214 60 Two-way transactions2 2,730 3,076 3,492 3,321 2,879 3,557 3,452 3,176 3,283 Net transactions: 61 Purchases of net buying banks.. 7,083 7,454 7,964 7,581 7,254 6,793 7,756 7,337 6,590 62 Sales of net selling banks 2,522 2,309 1,915 2,155 3,792 3,327 2,021 1,291 931 Related transactions with U.S. Govt, securities dealers 63 Loans to dealers3 1,525 1,592 1,369 1,028 980 1,313 1,627 1,532 1,035 64 Borrowing from dealers4 713 947 654 445 1,037 965 869 823 587 65 Net loans 813 645 715 583 -57 348 759 709 448 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 • November 1977 1.14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and previous levels Loans to member banks— Loans to all others Under Sec. 10(b)2 under Sec. 13, last par.4 Federal Reserve Under Sees. 13 and 13a* Bank Regular rate Special rate3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 10/31/77 date rate 10/31/77 date rate 10/31/77 date rate 10/31/77 date rate B N o e s w t o Y n ork 6 6 1 1 0 0 / / 2 2 6 6 / / 7 7 7 7 5 53 3 / 4 4 6 6 1 1 / / 2 2 1 1 0 0 / / 2 2 6 6 / / 7 7 7 7 6 6 1 1 4 4 7 7 1 1 0 0 / / 2 2 6 6 / / 7 7 7 7 6 6 3 3 4 4 9 9 1 1 0 0 / / 2 2 6 6 / / 7 7 7 7 8 8 3 3 4 4 Philadelphia 6 10/26/77 53/4 " 61/2 10/26/77 614 7 10/26/77 634 9 10/26/77 834 Cleveland 6 10/26/77 534 61/2 10/26/77 61/4 7 10/26/77 634 9 10/26/77 834 Richmond 6 10/26/77 534 61/2 10/26/77 61/4 7 10/26/77 634 9 10/26/77 834 Atlanta 6 10/26/77 534 61/2 10/26/77 614 7 10/26/77 634 9 10/26/77 834 Chicago 6 10/26/77 534 61/2 10/26/77 614 7 10/26/77 63/4 9 10/26/77 834 St. Louis 6 10/26/77 534 61/2 10/26/77 61/4 7 10/26/77 634 9 10/26/77 83/4 Minneapolis 6 10/26/77 534 61/2 10/26/77 614 7 10/26/77 634 9 10/26/77 834 Kansas City 6 10/26/77 534 61/2 10/26/77 614 7 10/26/77 634 9 10/26/77 834 Dallas 6 10/26/77 534 61/2 10/26/77 614 7 10/26/77 634 9 10/26/77 834 San Francisco.... 6 10/26/77 534 61/2 10/26/77 61/4 7 10/26/77 63/4 9 10/26/77 834 Range of rates in recent years5 Range F.R. Range F.R. Range F.R. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970 5% 5V4 1973—Jan. 15. 5 5 1975—Jan. 6 714-734 734 1971—Jan. 8 5V4-5V2 51/4 M Fe a b r . . 26 2 . . 5 51 - / 5 2 i /2 5 5 1 1 / / 2 2 2 1 4 0 71 7 4 1 - / 7 4 3 4 7 7 1 1 / 4 4 15 5V4 5V4 Apr. 23. 51/2-534 51/2 Feb. 5 634-714 634 19 5 -5% 5Ya May 4. 53/4 53/4 7 634 63/4 22 5 -51/4 5 11. 534-6 6 Mar. 10 614-634 614 29 5 5 18. 6 6 14 61/4 614 Feb. 13 43/4-5 5 June 11. 6-61/2 61/2 May 16 6-614 6 July 1 1 9 6 43 4 4- % 5 4 5 3 4 July 1 2 5 , . 6 7 1 /2 7 61 /2 23 6 6 2 3 5 5 Aug. 14, 7-71/2 71/2 1976—Jan. 19 51/2-6 51/2 Nov. 11 434-5 5 23. 71/2 7711//22 23 51/2 51/2 19 4V4 434 Nov. 22 51/4-51/2 514 Dec. 2 1 1 3 4 7 4 4 1 y / 4 2 2 1 - - 4 / 4 2 3 3 / 4 4 4 4 4 3 1 % / / 4 2 1974—A D p ec r . . 2 3 1 9 5 0 6 , , , , 7 7 1 3 / 77 g 4 2 33 - - 8 44 8 77 7 8g 3 33 / 44 4 1977—Aug. 2 3 3 6 0 1 5 5 1 * 5 4 4 1 - - / 5 5 4 3 * 4 4 5 5 51 1 34 / 4 4 Sept. 2 53/4 534 Oct. 26 6 6 In effect Oct. 31, 1977.... 6 6 1 Discounts of eligible paper and advances secured by such paper or by 4 Advances to individuals, partnerships, or corporations other than U.S. Govt, obligations or any other obligations eligible for F.R. Bank member banks secured by direct obligations of, or obligations fully purchase. guaranteed as to principal and interest by, the U.S. Govt, or any agency 2 Advances secured to the satisfaction of the F.R. Bank. Advances thereof. secured by mortgages on 1- to 4-family residential property are made at 5 Rates under Sees. 13 and 13a (as described above). For description the Section 13 rate. and earlier data, see the following publications of the Board of Governors: 3 Applicable to special advances described in Section 201.2(e)(2) of Banking and Monetary Statistics, 1914-1941, Banking and Monetary Regulation A. Statistics, 1941-1970, and Annual Statistical Digest, 1971-75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 MEMBER BANK RESERVE REQUIREMENTS1 Per cent of deposits Requirements in effect Previous requirements Oct. 31, 1977 TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall iinn mmiilllliioonnss ooff ddoollllaarrss Per cent Effective date Per cent Effective date Net demand:2 7 12/30/76 IV2 2/13/75 2-10 91/2 12/30/76 10 2/13/75 10-100 ny4 12/30/76 12 2/13/75 100-400 ny4 12/30/76 13 2/13/75 Over 400 I6I/4 12/30/76 I6I/2 2/13/75 Time:2,3 Savings 3 3/16/67 31/2 3/2/67 Other time: 0-5, maturing in— 30-179 days 3 3/16/67 31/2 3/2/67 180 days to 4 years 4 21/2 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 4 1 8 y 0 e a d r a s y s o r t o m 4 o r y e e ars ! 4 4 2 1 1 /2 10/ 1 3 / 0 8 / / 7 7 5 6 3 3 1 1 2 2 / / 1 1 2 2 / / 7 7 4 4 Legal limits, Oct. 31, 1977 Minimum Maximum Net demand: Reserve city banks 10 22 Other banks 7 14 3 10 1 For changes in reserve requirements beginning 1963, see Board's (c) Member banks are required under the Board's Regulation M to Annual Statistical Digest, 1971-1975 and for prior changes, see Board's maintain reserves against foreign branch deposits computed on the basis Annual Report for 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 Nonfinancial Statistics • November 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 Sept. 30,1977 Previous maximum In effect Sept. 30, 1977 Previous maximum Per cent Effective Per cent Effective Effective date date date 1 Savings 7/1/73 41/2 1/21/70 51/4 (6) 2 Negotiable order of withdrawal (NOW) accounts1 1/1/74 5 1/1/74 Time (multiple- and single-maturity unless otherwise indicated):2 30-89 days: 4 3 M Sin u g lt l i e p l m ea m tu a r t i u t r y i ty 7/1/73 4 5 Vi 9 1 / / 2 2 6 1 / / 6 7 6 0 (8) (8) 90 days to 1 year: 5 6 M Sin u g lt l i e p - l m e- a m tu a r t i u t r y i ty 5Vz 7/1/73 9 7 / / 2 2 6 0 / / 6 6 6 6 3 5% (6) 5V4 1/21/70 7 8 9 2 2 1 1 t t 4 o o t 2 2 o i / y 4 2 e a y y r e e s a a 3 r r s s 3 3 6 61 /2 7 7/ / 1 1 / / 7 7 3 3 5 5 5 3 V V / z 4 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 1 % /2 ( ( 6 6 ) ) 6 5 6 V 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 10 4 to 6 years4 71/4 11/1/73 (9) m 11/1/73 ((99)) 11 6 years or more4 IVi 12/23/74 llA 11/1/73 1V4 12/23/74 mm 11/1/73 12 Governmental units (all maturities)... m 12/23/74 m 11/27/74 m 12/23/74 m 11/27/74 13 Indiv K id e u o a g l h r (H eti . r R e . m 1 e 0 n ) t pl a a c n c s o u 5 n ts and 7% 7/6/77 (8) 734 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 6Vi per cent ceiling on time deposits maturing in 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 commerto 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 1977 TTyyppee ooff ttrraannssaaccttiioonn 11997744 11997755 11997766 Mar. Apr. May June July Aug. Sept. U.S. GOVT. SECURITIES Outright transactions (excl. matched salepurchase transactions) Treasury bills: 11111111,,,,666666660000 11111111,,,,555566662222 11114444,,,,333344443333 1111,,,,666677771111 666888111 2222,,,,666699996666 111111888 881122 2222,,,,000000005555 2 Gross sales 5555,,,,888833330000 5555,,,,555599999999 8888,,,,444466662222 368 222266660000 444888999 1111,,,,111155554444 777555333 117766 333300003333 4444,,,,555555550000 2222 6666,,,,444433331111 2222 5555,,,,000011117777 11119999 444000000 666600000000 555000000 333311117777 Others within 1 year:1 444455550000 3333,,,,888888886666 444477772222 4411 22220000 88889999 2222,,,,666611116666 6 Exchange, or maturity shift ---111,,,111888333 ---444 792 -266 374 — i,209 478 238 2,321 320 111333111 333,,,555444999 1 to 5 years: 777999777 222333,,,222888444 2222 3333,,,,222200002222 117744 332277 220000 668811 111177777777 10 Exchange, or maturity shift --669977 33,,885544 ----2222,,,,555588888888 226666 --337744 -865 --447788 -238 -1,664 --332200 5 to 10 years: 1 j Gross purchases 443344 11,,551100 1111,,,,000044448888 4466 110044 6688 9966 13 Exchange or maturity shift 111,,,666777555 ---444,,,666999777 111,,,555777222 11,,117744 --778822 Over 10 years: 14 Gross purchases 111999666 111,,,000777000 666444222 3377 3388 111144 112288 16 Exchange or maturity shift 222200005555 888844448888 222222225555 999000000 112255 All maturities:1 17 Gross purchases 11113333,,,,555533337777 222222221111,,,,333311113333 222211119999,,,,777700007777 298 222,,,111666000 666888111 333,,,111666777 111188 881122 55,,552266 18 Gross sales 5555,,,,888833330000 5555,,,,555599999999 8888,,,,666633339999 368 222666000 444888999 111,,,111555444 775533 117766 330033 19 Redemptions 4444,,,,666688882222 22229999,,,,999988880000 2222 5555,,,,000011117777 111999 444000000 666000000 550000 331177 Matched sale-purchase transactions 20 Gross sales 66664444,,,,222222229999 111155551111,,,,222200005555 111199996666,,,,000077778888 30,115 333222,,,222888777 222888,,,555333222 333666,,,222555888 2277,,994477 45,831 3399,,555522 21 Gross purchases 66662222,,,,888800001111 111155552222,,,,111133332222 111199996666,,,,555577779999 30,828 333222,,,888555222 222777,,,333000666 333666,,,444444999 2277,,330011 46,170 3399,,669944 Repurchase agreements 22 Gross purchases 77771111,,,,333333333333 111144440000,,,,333311111111 222233332222,,,,888899991111 14,368 111333,,,333999777 222999,,,333000888 111444,,,777444888 1133,,997733 4,397 1166,,770000 23 Gross sales 77770000,,,,999944447777 111133339999,,,,555533338888 222233330000,,,,333355555555 14,860 111111,,,888666222 333000,,,444444888 111111,,,555000666 1155,,771199 5,648 1155,,446699 24 Net change in U.S. Govt, securities 151 ---222,,,555777333 --33,,552288 -276 66,,227799 FEDERAL AGENCY OBLIGATIONS 1111,,,,999988884444 7777,,,,444433334444 9999,,,,000088887777 333,,,999888000 444,,,888444555 Outright transactions: 25 Gross purchases • • • 27 Redemptions 3333,,,,000033888822777722 1111,,,,666622111144666666 888811999966111199 3366 333444666 ** 3333388833000 --6699 2255 Repurchase agreements: 28 Gross purchases 2233,,220044 1155,,117799 1100,,552200 552233 709 22,,116644 11,,665566 1,672 226655 11,,113366 29 Gross sales 2222,,773355 1155,,556666 1100,,336600 554466 639 22,,227788 11,,005566 1,938 445599 997788 BANKERS ACCEPTANCES ** 30 Outright transactions, net 551111 116633 --554455 --1199 -51 --4455 --1155 -24 --1155 31 Repurchase agreements, net 442200 --3355 441100 --2233 653 --772299 552288 -204 --224477 335511 32 Net change in total System Account 66,,114499 88,,553399 99,,883333 5500 4,998 --33,,446611 66,,330055 -4,020 --880011 66,,776644 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; 1976, none; Sept. 1977,2,500. 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 Nonfinancial Statistics • November 1977 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month 1977 1977 Sept. 28 Oct. 5 Oct. 12 Oct. 19? Oct. 26?> Aug. Sept. Oct.P Consolidated condition statement ASSETS Gold certificate account 11,595 11,595 11,595 11,595 11,595 11,595 11,595 11,595 Special Drawing Rights certificate account. 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Coin1 294 297 299 303 305 284 308 310 Loans: O M t e h m er b er bank borrowings 1,292 467 3,551 1,182 1,265 1,069 922 Ac H B ce o e p u ld t g a h u n t n c d o e u s e : r t r r ig ep ht u rchase agreements... 432 4 14 4 9 4 221 1 12 4 7 478 4 Federal agency obligations: B H o e u ld g h u t n d ou er t r r ig ep ht u rchase agreements... 7,3 3 2 5 9 1 7,3 1 2 3 9 2 7,32 6 9 0 7,329 7,3 2 2 0 9 0 7,3 1 5 5 4 1 7,3 3 2 1 9 0 7,329 U.S. Govt, securities Bought outright: Bills 41,758 40,385 39,380 35,921 39,711 40,021 41,548 36,240 Certificates—Special 2,500 Other Notes 49,423 49,856 49,856 49,856 49,856 48,963 49,856 49,856 Bonds 8,414 8,501 8,501 8,501 8,501 8,373 8,501 8,501 Total2 99,595 98,742 97,737 94,278 98,068 97,357 102,405 94,597 Held under repurchase agreements. 4,680 1,262 483 1,294 1,079 2,310 17 Total U.S. Govt, securities. 104,275 100,004 98,220 94,278 99,362 98,436 104,715 94,597 18 Total loans and securities.. 113,683 108,020 106,449 105,162 108,295 107,337 113,905 102,848 19 Cash items in process of collection— 11,489 10,439 1 983 10,908 9,756 9,715 7,607 8,541 20 Bank premises 378 379 379 380 381 377 379 381 Other assets: 21 Denominated in foreign currencies. 64 20 20 18 18 55 65 18 22 All other 2,560 2,319 1,825 1,907 2,150 2,030 2,429 2,165 23 Total assets. 141,263 134,269 133,750 131,473 133,700 132,593 137,488 127,058 LIABILITIES 24 F.R. notes 87,578 88,234 89,048 88,719 88,575 87,506 87,361 88,380 Deposits: 25 Member bank reserves 31,779 28,753 28,381 26,726 28,212 28,262 23,953 22,868 26 U.S. Treasury—General account. 11,197 6,521 4,630 5,215 6,375 6,115 15,740 6,398 27 Foreign 300 298 247 243 344 535 382 425 28 Other 3 769 561 710 562 708 679 853 715 29 Total deposits. 44,045 36,133 33,968 32,746 35,639 35,591 40,928 30,406 30 Deferred availability cash items 5,944 6,674 7,430 6,542 5,849 5,873 5,540 4,568 31 Other liabilities and accrued dividends. 1,202 1,100 1,060 1,097 1,150 1,089 1,165 1,127 32 Total liabilities 138,769 132,141 131,506 129,104 131,213 130,059 134,994 124,481 CAPITAL ACCOUNTS 33 Capital paid in 1,013 1,016 1,016 1,019 1,021 1,011 1,016 1,022 34 Surplus 983 983 983 983 983 983 983 983 35 Other capital accounts 498 129 245 367 483 540 495 572 36 Total liabilities and capital accounts 141,263 133,750 131,473 133,700 137,488 127,058 134,269 132,593 37 MEMO: Marketable U.S. Govt, securities held in custody for foreign and intl. account 62,807 65,737 67,050 67,772 63,781 68,768 64,546 60,717 Federal Reserve note statement 38 F.R. notes outstanding (issued to Bank) 93,780 93,777 93,940 94,139 94,175 93,289 93,762 94,288 Collateral held against notes outstanding: 39 Gold certificate account 11,591 11,591 11,591 11,591 11,591 11,591 11,591 11,590 40 Special Drawing Rights certificate account.... 855 855 855 855 855 752 855 855 41 Acceptances 42 U.S. Govt, securities 82,885 82,885 82,885 83,085 83,185 82,i35 82,885 83,185 43 Total collateral. 95,331 95,331 95,331 95,531 95,631 94,478 95,331 95,630 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 TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy 1977 1977 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. 31 Sept. 30 Oct. 31 1,292 468 687 3,551 1,182 1,267 1,069 922 2 Within 15 days 1,265 424 630 3,525 1,157 1,224 1,032 883 3 16 days to 90 days 27 44 57 26 25 43 37 39 ^ Apronftinrpc .......... 444433336666 88888888 111155553333 444 222222222 111133331111 444488882222 Within 1 ^ dflv<J 444433332222 88884444 111155552222 444 222222222 111122227777 444477778888 4444 4444 1111 4444 4444 9 U.S. Govt, securities 104,275 100,004 98,220 94,278 99,362 98,436 104,715 94,597 10 Within 15 days i 8,597 5,670 4,651 3,955 4,339 3,989 6,709 4,197 19,027 17,664 18,058 14,069 18,683 18,881 20,858 14,222 12 91 days to 1 year 31,415 31,294 30,135 30,878 30,964 30,774 31,772 30,757 28,097 28,110 28,110 28,110 28,110 27,750 28,110 28,155 10,507 10,547 10,547 10,547 10,547 10,451 10,547 10,547 6,632 6,719 6,719 6,719 6,719 6,591 6,719 6,719 7,680 7,461 7,389 7,329 7,529 7,505 7,639 7,329 17 Within 15 days i 376 207 134 117 242 305 335 42 18 16 days to 90 days 346 369 369 326 379 209 355 379 893 820 820 848 841 915 884 841 3,679 3,679 3,732 3,704 3,752 3,711 3,679 3,752 1,563 1,563 1,511 1,511 1,492 1,542 1,563 1,492 22 Over 10 years 823 823 823 823 823 823 823 823 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars. Monthly data are at annual rates 1977 BBaannkk ggrroouupp,, oorr ttyyppee 11997744 11997755 11997766 ooff ccuussttoommeerr May June July Aug. Sept. Debits to demand deposits 2 (seasonally adjusted) 1111 AAAAllllllll ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 22,937.8 25,028.5 29,180.4 34,687.0 34,805.2 34,098.5 35,644.8 36,083.9 2222 MMMMaaaajjjjoooorrrr NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy bbbbaaaannnnkkkkssss.... .... 8,434.8 9,670.7 11,467.2 13,979.7 14,049.7 13,501.0 14,351.0 14,389.6 3333 OOOOtttthhhheeeerrrr bbbbaaaannnnkkkkssss 14,503.0 15,357.8 17,713.2 20,707.3 20,755.5 20,597.5 21,293.8 21,694.2 Debits to savings deposits 3 (not seasonally adjusted) 4444 AAAAllllllll ccccuuuussssttttoooommmmeeeerrrrssss 333355559999....1111 333366666666....2222 333344447777....5555 5 Business 1 44443333....6666 55555555....0000 55550000....0000 6 Others 333311115555....6666 333311111111....2222 222299997777....5555 Demand deposit turnover 2 (seasonally adjusted) 77777 AAAAAllllllllll cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 99.0 105.3 116.8 133.7 133.6 127.5 133.8 134.7 88888 MMMMMaaaaajjjjjooooorrrrr NNNNNeeeeewwwww YYYYYooooorrrrrkkkkk CCCCCiiiiitttttyyyyy bbbbbaaaaannnnnkkkkksssss..... ..... 321.6 356.9 411.6 504.7 524.2 479.7 519.3 533.9 99999 OOOOOttttthhhhheeeeerrrrr bbbbbaaaaannnnnkkkkksssss 70.6 72.9 79.8 89.4 88.8 86.1 89.2 90.1 Savings deposit turnover 3 (not seasonally adjusted) 1111100000 AAAAAllllllllll cccccuuuuussssstttttooooommmmmeeeeerrrrrsssss 1111....7777 1111....7777 1111....6666 11 Business 1 4444....3333 5555....2222 4444....6666 12 Others 1111....5555 1111....5555 1111....5555 1 Represents corporations and other profit-seeking organizations (ex- NOTE.—Historical data—estimated for the period 1970 through June cluding commercial banks but including savings and loan associations, 1977, partly on the basis of the debits series for 233 SMSA's, which were mutual savings banks, credit unions, the Export-Import Bank, and available through June 1977 are available from Publications Services, Federally sponsored lending agencies). Division of Administrative Services, Board of Governors of the Federal 2 Represents accounts of individuals, partnerships, and corporations, Reserve System, Washington, D.C. 20551. Debits and turnover data for and of States and political subdivisions. savings deposits are not available prior to July 1977. 3 Excludes NOW accounts and special club accounts, such as Christmas and vacation clubs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • November 1977 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1977 11997733 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. DDeecc.. IIIttteeemmm Apr. May June July Aug. Sept. Seasonally adjusted MEASURES i ! M-l 270.5 283.1 294.8 312.4 320.5 320.7 321.9 326.8 328.4 330.4 2 M-2 571.4 612.4 664.3 740.3 764.6 767.6 772.8 783.5 787.7 792.9 3 M-3 919.6 981.5 1,092.6 1,237.1 1,281.2 1,289.0 1,299.5 '1,316.9 1,329.4 1,342.7 4 M-4 634.4 701.4 746.5 803.5 826.2 829.9 836.8 846.3 850.9 856.2 5 M-5 982.5 1,070.5 1,174.7 1,300.3 1,342.8 1,351.3 '1,363.5 '1,379.8 rl,392.6 1,405.9 COMPONENTS 6 Currency 61.5 67.8 73.7 80.5 83.1 83.6 84.0 85.1 85.5 86.4 Commercial bank deposits: 7 Demand 209.0 215.3 221.0 231.9 237.4 237.1 238.0 241.6 242.8 244.0 8 Time and savings 363.9 418.3 451.7 491.1 505.7 509.2 514.8 519.5 522.5 525.8 9 Negotiable CD's2 63.0 89.0 82.1 63.3 61.6 62.3 63.9 62.8 63.2 63.2 10 Other 300.9 329.3 369.6 427.9 444.1 446.9 450.9 456.7 459.4 462.6 11 Nonbank thrift institutions3 348.1 369.1 428.3 496.8 516.6 521.4 r526.7 >-533.5 r541.7 549.8 Not seasonally adjusted MEASURES i 12 M-l 278.3 291.3 303.2 321.3 322.3 315.5 321.4 327.2 325.1 328.2 13 M-2 576.5 617.5 669.3 745.3 770.0 766.2 774.5 784.0 784.3 788.9 14 M-3 921.8 983.8 1,094.3 1,237.9 1,290.2 1,290.3 1,305.7 '1,322.1 '1,326.6 1,336.8 15 M-4 640.5 708.0 752.8 809.5 830.1 827.4 837.5 846.8 848.8 854.3 16 M-5 985.8 1,074.3 1,177.7 1,302.1 1,350.3 1,351.4 '1, 368.7 '1,384.9 '1,391.0 1,402.2 COMPONENTS 17 Currency 62.7 69.0 75.1 82.0 82.8 83.4 84.2 85.7 85.8 86.1 Commercial bank deposits: 18 Demand 215.7 222.2 228.1 239.3 239.6 232.1 237.1 241.4 239.3 242.1 19 Member 156.5 159.7 162.1 168.5 167.6 161.8 165.1 167.7 166.2 167.5 20 Domestic nonmember 56.3 58.5 62.6 67.3 68.3 66.6 68.3 69.5 69.1 70.4 21 Time and savings 362.2 416.7 449.6 488.2 507.7 511.8 516.1 519.6 523.7 526.1 22 Negotiable CD's2 64.0 90.5 83.5 64.3 60.1 61.2 63.0 62.8 64.4 65.4 23 Other 298.2 326.3 366.2 423.9 447.7 450.7 453.2 456.9 459.2 460.7 24 Nonbank thrift institutions3 345.3 366.3 424.9 492.6 520.2 524.1 531.1 '538.1 '542.3 547.9 25 U.S. Govt, deposits (all commercial banks) 6.3 4.9 4.1 4.7 5.6 3.8 5.2 3.9 3.7 5.4 1 Composition of the money stock measures is as follows: M-4: M-2 plus large negotiable CD's. M-5: M-3 plus large negotiable CD's. M-l: Averages of daily figures for (1) demand deposits at 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 rewas also different. On the new basis, both "Total loans" and "Com- classifications at another large bank. mercial and industrial loans" were reduced by about $100 million. 3 Reclassification of loans 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 IItteemm 11997733 11997744 11997755 DDeecc.. DDeecc.. DDeecc.. Dec. Mar. Apr. May June July | Aug. Sept. Seasonally adjusted 1111 RRRReeeesssseeeerrrrvvvveeeessss 1111 34.94 36.60 34.73 34.95 34.31 34.68 34.72 34.86 35.35 35.64 35.63 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd 33.64 35.87 34.60 34.90 34,20 34.61 34.52 34.60 35.03 34.58 35.00 3333 RRRReeeeqqqquuuuiiiirrrreeeedddd 34.64 36.34 34.47 34.68 34,09 34.49 34.51 34.71 35.08 35.44 35.42 4444 DDDDeeeeppppoooossssiiiittttssss ssssuuuubbbbjjjjeeeecccctttt ttttoooo rrrreeeesssseeeerrrrvvvveeee rrrreeeeqqqquuuuiiiirrrreeeemmmmeeeennnnttttssss 2222 442.3 486.2 505.4 529.6 535.2 538.4 537.6 544.5 547.7 551.4 552.9 279.2 322.1 337.9 355.0 361.3 361.4 363.1 367.0 369.2 370.8 372.4 DDDDeeeemmmmaaaannnndddd:::: 158.1 160.6 164.5 171.4 171.1 173.4 172.3 173.8 175.8 177.0 176.9 7777 UUUU....SSSS.... GGGGoooovvvvtttt 5.0 3.5 3.0 3.2 2.8 3.6 2.1 3.7 2.8 3.6 3.7 Not seasonally adjusted 8888 DDDDeeeeppppoooossssiiiittttssss ssssuuuubbbbjjjjeeeecccctttt ttttoooo rrrreeeesssseeeerrrrvvvveeee rrrreeeeqqqquuuuiiiirrrreeeemmmmeeeennnnttttssss 2222 447.5 491.8 510.9 534.8 534.0 541.3 535.8 544.5 547.6 548.3 552.1 9999 TTTTiiiimmmmeeee aaaannnndddd ssssaaaavvvviiiinnnnggggssss 278.5 321.7 337.2 353.6 361.7 362.3 364.7 367.8 369.5 371.7 373.0 DDDDeeeemmmmaaaannnndddd:::: 11110000 PPPPrrrriiiivvvvaaaatttteeee 164.0 166.6 170.7 177.9 169.1 175.0 168.5 173.0 175.6 174.1 175.2 11111111 UUUU....SSSS.... GGGGoooovvvvtttt 5.0 3.4 3.1 3.3 3.2 4.0 2.5 3.7 2.6 2.5 3.8 1 Series reflects actual reserve requirement 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 11997733 11997744 44 11997755 11997766 DDeecc.. 3311 DDeecc.. 3311 DDeecc.. 3311 DDeecc.. 3311 CCCaaattteeegggooorrryyy May 25 June 30 July 27 Aug. 31 Sept. 28 Oct. 26 V V V V V V Seasonally adjusted 1 Loans and investments1 633.4 690.4 721.1 784.4 819.4 825.5 831.8 840.4 843.1 852.6 2 Including loans sold outright2 637.7 695.2 725.5 788.2 823.4 829.5 835.9 844.5 847.1 856.7 Loans: 3 Total 449.0 500.2 496.9 538.9 562.1 567.0 574.5 582.4 587.6 597.8 4 Including loans sold outright2 453.3 505.0 501.3 542.7 566.1 571.0 578.6 586.5 591.6 601.9 5 Commercial and industrial 3 156.4 183.3 176.0 179.5 185.9 188.3 189.6 191.6 191.9 195.7 6 Including loans sold outright2,3 159.0 186.0 178.5 181.9 188.7 191.1 192.4 194.4 194.7 198.6 Investments : 7 U.S. Treasury 54.5 50.4 79.4 97.3 104.6 105.3 102.9 102.6 99.5 97.2 8 Other 129.9 139.8 144.8 148.2 152.7 153.2 154.4 155.4 156.0 157.6 Not seasonally adjusted 9 647.3 705.6 737.0 801.6 816.6 830.5 829.1 837.6 843.1 850.8 10 Including loans sold outright 651.6 710.4 741.4 805.4 820.6 834.5 833.1 841.7 847.2 854.9 Loans: 11 Total i 458.5 510.7 507.4 550.2 561.3 574.4 575.4 583.6 589.3 596.6 12 Including loans sold outright2 462.8 515.5 511.8 554.0 565.3 578.4 579.5 587.7 593.4 600.7 13 Commercial and industrials 159.4 186.8 179.3 182.9 186.1 190.7 189.6 190.6 192.3 195.1 14 Including loans sold outright2,3 162.0 189.5 181.8 185.3 188.9 193.5 192.4 193.4 195.1 197.9 Investments: 15 U.S. Treasury 58.3 54.5 84.1 102.5 101.9 101.7 99.5 98.9 98.0 97.2 16 Other 130.6 140.5 145.5 148.9 153.4 154.4 154.2 155.1 155.8 157.0 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • November 1977 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1975 1976 3 1977 Account Dec. 31 Dec. Feb. Mar. Apr.?3 Mayf Junep JulyP Aug.P Sept.? Oct.25 All commercial j 775.8 846.4 831.6 840.4 846.5 853.1 864.5 866.2 877.8 882.4 888.6 2 Loans, gross 546.2 594.9 580.4 587.0 590.4 597.8 609.5 612.5 623.8 628.6 634.4 Investments: 3 U.S. Treasury securities 84.1 102.5 102.6 104.7 103.0 101.9 101.3 99.5 98.9 98.0 97.2 4 Other 145.5 148.9 148.5 148.7 153.1 153.4 153.7 154.2 155.1 155.8 157.0 5 Cash assets 133.6 136.1 127.1 122.8 122.7 119.4 124.5 124.7 134.0 127.5 127.5 6 Currency and coin 12.3 12.1 12.5 12.9 13.3 13.1 13.6 13.3 13.6 13.8 13.7 7 Reserves with F.R. Banks 26.8 26.1 28.6 26.9 28.2 24.0 23.5 27.1 28.2 30.0 28.3 8 Balances with banks 47.3 49.6 41.5 41.9 40.1 41.3 42.9 40.4 44.0 41.7 42.7 9 Cash items in process of collection.. 47.3 48.4 44.4 41.1 41.0 41.0 44.4 43.9 48.3 42.1 42.8 10 Total assets/total liabilities and capital^ 964.9 1,030.7 1,011.6 1,018.2 1,024.8 1,026.9 1,044.9 1,047.4 1,068.2 1,065.5 1,071.8 11 Deposits 786.3 838.2 809.3 817.1 819.4 818.9 833.7 836.4 850.5 844.8 851.8 Demand: 12 Interbank 41.8 45.4 36.6 37.6 33.9 35.2 37.3 37.7 39.0 36.6 37.0 13 U.S. Govt 3.1 3.0 3.8 3.1 7.4 3.6 3.0 3.8 2.5 8.0 3.6 14 Other 278.7 288.4 264.5 263.1 267.9 262.8 272.5 272.3 282.7 269.9 277.1 Time: 15 12.0 9.2 8.6 8.9 8.6 8.5 8.9 8.3 8.0 8.3 8.5 16 Other 450.6 492.2 495.9 504.4 501.6 508.8 511.9 514.4 518.4 522.0 525.7 17 Borrowings 60.2 80.2 87.6 84.5 88.2 87.6 90.2 90.6 93.1 94.8 95.1 18 Total capital accounts2 69.1 78.1 76.8 77.1 77.5 78.1 78.7 78.9 79.4 79.7 80.2 19 MEMO: Number of banks 14,633 14,671 14,688 14,685 14,690 14,695 14,702 14,709 14,713 14,724 14,724 Member 20 Loans and investments 578.6 620.5 605.9 611.8 614.8 620.2 629.1 628.9 637.9 640.8 645.2 21 Loans, gross 416.4 442.9 429.9 434.6 435.9 441.5 450.1 451.3 459.9 463.0 467.1 Investments: 22 U.S. Treasury securities 61.5 74.6 73.7 74.9 73.0 72.6 72.6 70.8 70.5 69.6 68.9 23 Other 100.7 103.1 102.3 102.3 105.8 106.1 106.4 106.7 107.5 108.3 109.3 24 Cash assets, total 108.5 108.9 102.8 100.0 99.4 95.7 100.5 101.1 108.5 103.1 102.3 25 9.2 9.1 9.3 9.6 9.9 9.7 10.0 9.9 10.0 10.2 10.2 26 Reserves with F.R. Banks 26.8 26.0 28.6 26.9 28.2 24.0 23.5 27. 1 28.2 30.0 28.3 27 Balances with banks 26.9 27.4 22.2 24.0 21.9 22.6 24.2 21.9 23.9 22.5 22.8 28 Cash items in process of collection.. 45.5 46.5 42.7 39.5 39.4 39.3 42.7 42.2 46.4 40.4 41.0 29 Total assets/total liabilities and capital i 733.6 772.9 755.1 759.7 762.7 763.9 778.9 780.1 796.2 793.2 796.5 30 Deposits 590.8 618.7 592.0 598.1 597.8 597.4 609.4 610.6 622.1 617.0 620.9 Demand: 31 Interbank 38.6 42.4 34.1 35.3 31.6 32.9 34.9 35.3 36.6 34.3 34.6 32 U.S. Govt 3.2 2.1 2.7 2.1 5.9 2.7 2.2 2.8 1.7 6.4 2.6 33 Other 210.8 215.5 196.6 195.9 199.0 195.1 202.7 202.1 211.0 200.3 205.3 Time: 34 Interbank 10.0 7.2 6.6 6.9 6.6 6.5 6.9 6.3 6.0 6.3 6.5 35 Other 329.1 351.5 351.9 357.9 354.7 360.3 362.7 364.1 366.9 369.6 372.0 36 Borrowings 53.6 71.7 78.0 75.3 78.1 77.5 80.0 80.4 82.5 84.0 83.8 37 Total capital accounts2 52.1 58.6 57.9 58.1 58.3 58.8 59.2 59.5 59.9 60.2 60.6 38 MEMO: Number of banks 5,788 5,759 5,740 5,739 5,726 5,708 5,721 5,701 5,676 5,692 5,692 1 Includes items not shown separately. NOTE.—Figures include all bank-premises subsidiaries and other sig- Effective Mar. 31, 1976, some of the item "reserve for loan losses" nificant majority-owned domestic subsidiaries. and all of the item "unearned income on loans" are no longer reported Commercial banks: All such banks in the United States, including as liabilities. As of that date the "valuation" portion of "reserve for member and nonmember banks, stock savings banks, nondeposit trust loan losses" and the "unearned income on loans" have been netted companies, and U.S. branches of foreign banks, but excluding one naagainst "other assets," and against "total assets" as well. tional bank in Puerto Rico and 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 3 Net 52 ( 62, ) 2 72 53 ( 52, ) 1 70 5 53 2 9 0 , , 0 9 1 7 7 0 5 5 6 7 0 8 , , 0 7 6 1 9 2 31 ( 22, ) 2 29 31 ( 52, ) 7 38 3 3 0 1 5 5 , , 2 6 7 2 5 4 3 3 2 4 9 0 , , 9 6 6 7 8 9 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 78,642 80,193 6 125,181 128,256 124,072 129,578 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 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 17 134,759 137,620 136,915 144,000 173,238 183,645 192,825 207,089 Loans: 1 1 9 8 Net 10 ( 02, ) 9 68 10 ( 02, ) 8 23 9 9 6 8 , ,8 0 8 3 9 7 1 9 0 9 2 , , 4 2 7 7 5 8 11 ( 32, ) 0 74 11 ( 82, ) 6 09 1 1 1 2 9 4 , , 6 5 5 0 8 3 1 1 3 3 0 5 , , 6 7 2 5 6 4 Investments: 20 U.S. Treasury securities 12,004 14,720 16,323 18,847 18,223 22,109 24,934 26,882 21 Other 21,787 22,077 21,702 22,874 41,942 42,927 43,387 44,451 22 31,466 30,451 30,422 32,859 18,029 19,778 18,161 20,644 23 Total assets/total liabilities 179,787 180,495 179,645 189,573 198,157 210,874 214,167 231,130 24 141,995 143,409 142,061 149,481 172,707 184,210 190,644 206,141 Demand: 25 U.S. Govt 443 467 869 429 940 853 894 917 26 Interbank 18,751 16,265 15.834 19,296 1,397 1,689 1,339 1,627 27 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 Other 71,409 72,981 72,624 75,177 108,989 115,389 123,980 132,991 30 Borrowings 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 11,725 13,674 15,905 18,819 184,963 197,319 208,730 225,908 Loans: 3 3 5 4 Net ( 92,5 ) 59 1 ( 12, ) 2 83 1 1 3 3 , , 2 0 0 9 9 2 1 1 6 6 , , 2 3 0 3 9 6 12 ( 22, ) 6 33 12 ( 92, ) 8 92 1 13 3 2 7 , , 7 7 5 1 1 2 1 1 5 4 2 6 , , 0 8 9 3 1 6 Investments: 36 U.S. Treasury securities 358 490 472 1,054 18,581 22,599 25,407 2277,,993366 37 Other 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 992211 42 Interbank 1,338 1,552 1,006 1,277 2,735 3,241 2,346 2,904 43 Other 2,124 2,308 2,555 3,236 62,830 67,868 66,184 72,884 Time: 44 Interbank 957 1,291 1,292 1,041 1,633 2,010 2,092 11,,999988 45 Other 3,883 6,167 6,876 7,766 112,872 121,556 130,857 140,758 46 3,110 3,449 3,372 4,842 6,086 6,577 6,711 8,412 47 Total capital accounts 570 651 663 818 16,300 17,051 17,359 18,366 48 MEMO: Number of banks 253 261 270 275 8,779 8,846 8,867 8,914 1 Includes items not shown separately. For Note see Table 1.24. 2 Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • November 1977 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, March 31, 1977 Asset.,and liability items are shown in millions of dollars. Member banks1 Insured Asset account commercial Large banks banks Total All other New York City of Other City Chicago large 1 Cash bank balances, items in process 125,193 106,148 31,527 3,960 38,001 32,660 2 Currency and coin 12,118 8,974 923 162 2,880 5,009 3 Reserves with F.R. Banks 28,031 28,031 6,025 1,724 10,410 9,872 4 Demand balances with banks in United States. 29,261 17,608 6,655 114 3,217 7,622 5 Other balances with banks in United States... 5,184 3,033 27 21 1,085 1,900 6 Balances with banks in foreign countries 4,171 3,688 578 59 2,030 1,022 7 Cash items in process of collection 46,428 44,814 17,320 1,880 18,380 7,234 8 Total securities held—Book value. . 249,841 176,540 20,197 8,116 56,924 91,304 9 U.S. Treasury 103,675 75,386 11,526 3,771 25,543 34,546 10 Other U.S. Govt, agencies 34,315 21,052 1,172 471 5,317 14,092 11 States and political subdivisions. 105,615 75,865 7,210 3,598 24,841 40,216 12 All other securities 6,143 4,181 290 276 1,201 2,415 13 Unclassified total 92 57 22 35 14 Trading-account securities 5,339 5,233 2,075 687 2,251 220 15 U.S. Treasury 3,168 3,155 1,470 434 1,172 80 16 Other U.S. Govt, agencies 566 561 211 33 292 25 17 States and political subdivisions. 1,104 1,073 369 95 536 73 18 All other trading acct. securities. 409 388 25 125 230 7 19 Unclassified 92 57 22 35 20 Bank investment portfolios 244,502 171,307 18,122 7,429 54,672 91,084 21 U.S. Treasury 100,507 72,231 10,057 3,337 24,371 34,466 22 Other U.S. Govt, agencies 33,750 20,491 961 438 5,025 14,067 23 States and political subdivisions. 104,512 74,792 6,841 3,503 24,305 40,143 24 All other portfolio securities 5,733 3,793 264 151 971 2,407 25 F.R. stock and corporate stock 1,544 1,302 291 83 483 445 26 Federal funds sold and securities resale agreement. 44.703 35,244 2,497 2,152 18,742 11,853 27 Commercial banks 37,369 28,124 705 1,441 14,689 11,289 28 Brokers and dealers 4,362 4,208 399 672 2,699 438 29 Others 2,972 2,912 1,393 39 1,354 126 30 Other loans, gross 536,794 405,594 70,710 21,530 149,631 163,722 31 LESS: Unearned income on loans. 12.704 8,660 546 80 2,860 5,175 32 Reserves for loan loss 6,306 5,038 1,191 316 1,826 1,706 33 Other loans, net 517,784 391,896 68,974 21,135 144,945 156,842 Other loans, gross, by category 34 Real estate loans. 153,309 106,810 9,315 1,966 38,372 57,156 35 Construction and land development.. 17,215 13,442 2,590 414 6,309 4,128 36 Secured by farmland 6,979 2,981 17 10 293 2,661 37 Secured by residential 86,655 61,444 4,460 963 22,314 33,707 38 1- to 4-family residences 82,250 58,255 4,028 859 21,161 32,206 39 FHA-insured or VA-guaranteed. 7,887 6,843 598 47 3,666 2,532 40 Conventional 74,364 51,412 3,430 812 17,495 29,674 41 Multifamily residences 4,405 3,189 432 104 1,153 1,501 42 FHA-insured 370 305 116 25 85 78 43 Conventional 4,035 2,884 315 78 1,068 1,423 44 Secured by other properties 42,459 28,943 2,248 579 9,456 16,660 45 Loans to financial institutions 33,501 31,511 11,103 4,254 13,380 2,774 46 To REIT's and mortgage companies. 9,793 9,453 3,250 1,230 4,330 644 47 To domestic commercial banks 2,524 I,879 531 118 946 284 48 To banks in foreign countries 5,925 5,777 2,636 276 2,383 483 49 To other depositary institutions I,085 977 115 24 684 154 50 To other financial institutions 14,175 13,424 4,571 2,606 5,038 1,208 51 Loans to security brokers and dealers. . 9,632 9,409 5,566 1,424 2,186 232 52 Other loans to purch./carry securities. . 4,060 3,375 386 310 1,734 945 53 Loans to farmers—except real estate... 23,667 13,080 120 154 3,033 9,773 54 Commercial and industrial loans 178,765 146,103 36,184 10,658 56,061 43,201 55 Loans to individuals 119,885 83,380 5,839 1,750 29,298 46,493 56 Instalment loans 95,312 66,110 4,339 1,029 23,584 37,158 57 Passenger automobiles 41,171 26,478 792 133 7,680 17,874 58 Residential-repair/modernize 6,528 4,518 308 52 1,793 2,365 59 Credit cards and related plans 14,094 12,380 1,668 667 6,764 3,281 60 Charge-account credit cards 10,978 9,803 1,146 633 5,518 2,507 61 Check and revolving credit plans . 3,116 2,578 522 34 I,247 775 62 Other retail consumer goods 15,970 10,952 331 72 3,882 6,668 63 Mobile homes 8,697 6,163 177 28 2,205 3,753 64 Other 7,273 4,789 154 44 1,676 2,915 65 Other instalment loans 17,549 II,781 1,239 106 3,465 6,971 66 Single-payment loans to individuals... 24,573 17,270 1,499 721 5,714 9,335 67 All other loans 13,975 11,926 2,197 1,015 5,565 3,148 68 Total loans and securities, net. 813,872 604,982 91,959 31,486 221,094 260,444 69 Direct lease financing 5,119 4,829 1,072 130 2,850 777 70 Fixed assets—Buildings, furniture, real estate. 19,815 14,809 1,994 650 5,759 6,406 71 Investment in unconsolidated subsidiaries. . . . 2,472 2,438 1,097 213 1,042 85 72 Customer acceptances outstanding II,661 11,303 5,737 629 4,623 313 73 Other assets 33,351 30,164 12,619 1,508 II,775 4,262 74 Total assets. 1,011,482 774,673 146,005 38,576 285,143 304,948 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 IInnssuurreedd NNoonn-- Liability or capital account ccoommmmeerrcciiaall Large banks mmeemmbbeerr bbaannkkss bbaannkkss11 Total All other New York City of Other City Chicago large 75 Demand deposits 316,260 246,707 59,781 9,454 86,536 90,936 69,571 76 Mutual savings banks. 1,203 1.057 517 1 254 284 145 77 Other individuals, partnerships, and corporations 241,902 182,142 31,068 6,798 68,453 75,823 59,760 78 U.S. Govt 3,422 2,283 112 31 623 1,517 1,140 79 States and political subdivisions 16,238 11,212 626 242 3,340 7,004 5,027 80 Foreign governments, central banks, etc 1,270 1,249 988 19 212 30 20 81 Commercial banks in United States 34,890 33,781 18,080 1,955 10,125 3,621 1,128 82 Banks in foreign countries 6,140 5,979 4,741 150 969 118 161 83 Certified and officers' checks, etc 11,194 9,004 3,648 258 2,560 2,538 2,190 84 Time deposits 293,127 212,408 3322,,115544 1122,,333333 72,420 95,502 80,719 85 Accumulated for personal loan payments 137 112 10 102 25 86 Mutual savings banks 352 331 128 43 139 21 21 87 Other individuals, partnerships, and corporations 230,513 165,815 23,878 8,781 55,372 77,784 64,698 88 U.S. Govt 689 536 68 28 230 211 152 89 States and political subdivisions 46,368 31,771 1,388 1,182 12,804 16,397 14,597 90 Foreign governments, central banks, etc 7,401 7,126 3,942 1,207 1,929 48 275 91 Commercial banks in United States 6,384 5,512 1,996 1,013 1,703 800 872 92 Banks in foreign countries 1,284 1,206 754 79 233 140 78 93 Savings deposits 213,702 152,966 12,072 3,275 56,721 80,898 60,737 94 Individuals and nonprofit organizations 197,632 141,168 10,868 2,945 52,604 74.751 56,464 95 Corporations and other profit organizations 9,651 7,143 583 248 3,016 3,296 2,508 96 U.S. Government 52 40 4 22 13 12 97 States and political subdivisions 6,242 4,500 535 82 1,054 2,830 1,742 98 All other 126 115 82 1 25 8 11 99 Total deposits 823,090 612,081 104,006 25,063 215,676 267,336 211,027 100 Federal funds purchased and securities sold under agreements to repurchase 73,846 70,496 15,854 9,249 35,905 9,489 3,350 101 Commercial banks 40,778 39,292 6,646 6,303 21,715 4,628 1,486 102 Brokers and dealers 8,472 8,145 1,454 1,335 4,484 870 327 103 Others 24,597 23,060 7,754 1,610 9,705 3,991 1,537 104 Other liabilities for borrowed money 5,229 4,977 2,373 102 2,119 383 252 105 Mortgage indebtedness 797 570 58 4 307 202 228 106 Bank acceptances outstanding 12,278 11,920 6,340 632 4,634 314 358 107 Other liabilities 17,433 15,097 4,939 807 6,049 3,303 2,442 108 Total liabilities 932,674 715,142 133,570 35,856 264,689 281,027 217,656 109 Subordinated notes and debentures 5,145 4,095 1,120 82 1,826 1,066 1,051 110 Equity capital 73,662 55,436 1111,,331155 22,,663388 18,628 22,855 18,236 111 Preferred stock 67 25 2 23 42 112 Common stock 16,419 11,994 2,453 570 3,847 5,124 4,430 113 Surplus 29,165 21,497 4.230 1,243 7,686 8,338 7,671 114 Undivided profits 26,266 20,706 4,594 772 6,670 8,671 5,562 115 Other capital reserves 1,745 1,215 38 53 424 700 531 116 Total liabilities and equity capital 1,011,482 774,673 146,005 38,576 285,143 304,948 236,942 MEMO ITEMS: 117 Demand deposits adjusted2 231,519 165,830 24,269 5,588 57,408 78,564 65,690 Average for last 15 or 30 days: 118 Cash and due from bank 121,842 103,888 29,188 4,578 38,072 32,050 17,956 119 Federal funds sold and securities purchased under agreements to resell 42,908 33,274 3,121 1,384 16,897 11,873 9,675 120 Total loans 521,907 395,321 70,296 21,429 145,777 157,820 126,586 121 Time deposits of $ 100,000 or more 129,513 105,527 26,714 9,715 41,042 28,056 23,986 122 Total deposits 805,559 596,858 95,782 25,106 211,304 264,665 208,712 123 Federal funds purchased and securities sold under agreements to repurchase 76,919 73,461 19,126 9,305 35,188 9,842 3,458 124 Other liabilities for borrowed money 4,489 4,231 2,052 90 1,739 350 258 125 Standby letters of credit outstanding 12,593 11,931 6,925 996 3,242 768 662 126 Time deposits of $100,000 or more 131,851 107,632 26,650 9,501 42,859 28,621 24,219 127 Certificates of deposit 109,696 88,947 22,351 8,270 34,294 24,033 20,749 128 Other time deposits 22,155 18,685 4,299 1,231 8,565 4,589 3,470 129 Number of banks 14,405 5.737 12 9 154 5,562 8,678 1 Member banks exclude and nonmember banks include 10 noninsured NOTE.—Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System, and bank-premises subsidiaries and other significant majority-owned domember banks exclude 2 national banks outside the continental United mestic subsidiaries. Securities are reported on a gross basis before deduc- States. tions of valuation reserves. Holdings by type of security will be reported 2 Demand deposits adjusted are demand deposits other than domestic as soon as they become available. commercial interbank and U.S. Govt., less cash items reported as in Back data in lesser detail were shown in previous BULLETINS. Details process of collection. may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • November 1977 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 1 Total loans and investments 434,446 431,197 432,499 430,839 436,236 435,914 435,912 433,025 Loans: 2 Federal funds sold1 25,774 24,350 23,554 23,214 26,933 25,822 23,339 21,624 3 To commercial banks 18,311 18,839 17,841 18,464 20,671 19,467 16,117 16,423 To brokers and dealers involving— 4 U.S. Treasury securities 4,872 2,980 3,140 2,249 3,406 3,121 4,434 2,728 5 Other securities 578 505 476 382 674 663 514 550 6 To others 2,013 2,026 2,097 2,119 2,182 2,571 2,274 1,923 7 Other, gross 304,994 303,542 305,991 305,670 307,834 308,973 310,394 309,375 8 Commercial and industrial 119,244 119,283 120,326 120,289 120,688 121,404 121,699 122,432 9 Agricultural 4,734 4,766 4,774 4,789 4,788 4,771 4,786 4,798 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 2,700 1,568 2,021 1,408 2,127 1,792 2,266 975 11 Other securities 9,049 8,865 9,181 8,991 9,313 8,960 9,501 8,750 To others: 12 U.S. Treasury securities 73 72 70 69 71 72 72 97 13 Other securities 2,600 2,597 2,600 2,607 2,597 2,614 2,612 2,637 To nonbank financial institutions: 14 Personal and sales finance cos., etc 7,678 7,501 7,490 7,379 7,413 7,682 7,614 7,619 15 Other 15,117 15,146 14,978 15,146 15,360 15,399 15,063 15,225 16 Real estate 70,390 70,726 71,287 71,446 71,335 71,592 71,981 72,248 To commercial banks: 17 Domestic 2,119 1,699 2,031 2,003 2,147 1,995 2,151 2,003 18 Foreign 6,088 5,875 5,889 5,980 5,984 6,337 6,353 6,409 19 Consumer instalment 43,435 43,615 43,493 43,792 43,881 43,999 44,122 44,339 20 Foreign governments, official institutions, etc. 1,589 1,615 1,625 1,544 1,605 1,647 1,646 1,528 21 All other loans 20,178 20,214 20,226 20,227 20,525 20,709 20,528 20,315 22 LESS: Loan loss reserve and unearned income on loans 9,341 9,387 9,406 9,347 9,256 9,286 9,346 9,369 23 Other loans, net 295,653 294,155 296,585 296,323 298,578 299,687 301,048 300,006 Investments: 24 U.S. Treasury securities 47,945 46,870 46,717 45,713 45,122 44,405 45,571 45,183 25 Bills 8,454 8,056 8,336 7,640 7,737 7,311 7,979 7,709 Notes and bonds, by maturity: 26 Within 1 year 9,195 9,175 9,110 9,001 8,710 8,760 8,916 8,937 27 1 to 5 years 26,332 25,788 25,425 25,273 24,848 24,524 23,936 23,812 28 After 5 years 3,964 3,851 3,846 3,799 3,827 3,810 4,740 4,725 29 Other securities 65,074 65,822 65,643 65,589 65,603 66,000 65,954 66,212 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 9,005 9,655 9,230 9,156 8,982 9,547 9,062 9,114 31 All other 42,062 42,216 42,089 42,257 42,291 42,493 42,567 42,605 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,115 2,051 2,141 2,210 2,190 2,128 1,908 2,092 33 All other, including corporate stocks 11,892 11,900 12,183 11,966 12,140 11,832 12,417 12,401 34 Cash items in process of collection 41,257 40,192 36,888 36,877 41,846 44,133 38,592 37,113 35 Reserves with F.R. Banks 15,330 22,146 18,567 22,989 22,579 22,169 20,205 21,231 36 Currency and coin 5,793 6,215 6,035 6,299 5,454 6,042 6,064 6,254 37 Balances with domestic banks 12,564 13,083 12,179 13,322 15,453 14,013 14,649 13,046 38 Investments in subsidiaries not consolidated.... 2,783 2,842 2,857 2,872 2,842 2,837 2,813 2,918 39 Other assets 54,861 55,594 54,751 54,182 55,519 55,052 53,407 53,706 40 Total assets/total liabilities 567,034 571,269 563,776 567,380 579,929 580,160 571,642 567,293 Deposits: Demand deposits 179,609 181,255 174,307 176,526 185,841 185,404 178,991 176,166 Individuals, partnerships, and corporations., 130,128 133,635 126,319 125,673 131,393 135,194 129,106 128,625 States and political subdivisions 5,572 5,474 6,012 5,746 5,931 5,967 5,883 5,666 U.S. Govt 1,701 1,520 3,256 5,359 2,909 1,301 2,467 1,755 Domestic interbank: 45 Commercial 26,782 25,106 23,741 25,178 29,121 27,194 26,679 25,239 46 Mutual savings 1,040 895 814 799 1,104 1,027 917 783 Foreign: 47 Governments, official institutions, etc 1,650 1,194 1,285 1,212 1,419 1,110 1,136 1,154 48 Commercial banks 6,103 6,321 6,110 6,077 6,324 6,447 6,055 6,160 49 Certified and officers' checks 6,633 7,110 6,770 6,482 7,640 7,164 6,748 6,784 50 Time and savings deposits3 238,704 238,901 239,243 241,752 242,108 241,890 242,526 242,836 51 Savings4 93,708 93,418 93,290 93,406 93,803 93,608 93,357 93,025 52 Time: 144,996 145,483 145,953 148,346 148,305 148,282 149,169 149,811 53 Individuals, partnerships, and corporations 111,708 112,140 111,996 113,711 113,566 113,504 113,803 114,320 54 States and political subdivisions 21,157 21,268 21,459 21,696 21,607 21,795 22,055 22,061 55 Domestic interbank 4,089 4,076 4,267 4,490 4,533 4,496 4,551 4,671 56 Foreign govts., official institutions, etc. 6,541 6,488 6,589 6,825 6,974 6,892 7,191 7,184 57 Federal funds purchased, etc.5 74,015 75,886 72,032 72,277 76,412 77,093 70,758 71,916 Borrowings from : 58 F.R. Banks 335 136 2,446 877 232 481 3,233 690 59 Others 4,291 4,473 5,030 5,290 4,965 4,797 4,993 5,372 60 Other liabilities, etc.6 26,541 26,885 27,028 26,873 26,480 26,523 27,232 26,277 61 Total equity capital and subordinated notes/debentures 7 43,539 43,733 43,690 43,785 43,891 43,972 43,909 44,036 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 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Total loans and investments. 94,205 92,107 93,994 92,287 93,554 94,035 95,936 94,662 Loans: Federal funds sold 1 3,683 3,961 4,490 4,327 3,918 4,939 4,282 4,721 To commercial banks 2,142 2,132 2,458 2,699 2,136 2,573 2,482 3,053 To brokers and dealers involving— U.S. Treasury securities 918 1,051 1,154 733 925 1,067 1,084 941 Other securities 6 To others 617 778 878 895 857 1,299 716 121 Other, gross 70,348 68,090 69,522 68,502 69,814 69,650 71,392 69,605 Commercial and industrial 33,950 33,678 34,140 33,949 34,178 34,312 3 A,191 35,183 Agricultural - 124 128 144 150 155 156 162 160 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 2,515 1,410 1,768 1,234 1,926 1,615 2,070 833 11 Other securities 4,913 4,829 5,048 4,850 4,877 4,628 5,140 4,589 To others: 12 U.S. Treasury securities 25 24 24 23 23 23 23 38 13 Other securities 382 382 379 378 377 376 362 364 To nonbank financial institutions: 14 Personal and sales finance cos., etc 2,696 2,555 2,572 2,480 2,502 2,695 2,708 2,687 15 Other 4,760 4,731 4,693 4,793 4,849 4,743 4,689 4,731 16 Real estate 8,823 8,863 8,864 8,846 8,814 8,828 8,841 8,876 To commercial banks: 17 Domestic 958 502 786 670 818 673 877 629 18 Foreign 2,940 2,683 2,772 2,883 2,847 3,101 3,156 3,088 19 Consumer instalment 4,172 4,206 4,193 4,220 4,229 4,243 4,261 4,282 20 Foreign governments, official institutions, etc. 331 348 380 350 422 453 457 347 21 All other loans 3,759 3,751 3,759 3,676 3,797 3,804 3,849 3,798 22 LESS : Loan loss reserve and unearned income on loans 1,752 1,761 1,747 1,709 1,666 1,664 1,695 1,699 Other loans, net 68,596 66,329 67,775 66,793 68,148 67,986 69,697 67,906 Investments : U.S. Treasury securities 11,715 11,166 10,946 10,558 10,799 10,495 11,132 11,283 Bills 3,065 2,895 2,847 2,620 2,759 2,651 2,939 3,049 Notes and bonds, by maturity: Within 1 year 1,492 1,501 1,466 1,456 1,559 1,568 1,541 1,582 1 to 5 years 6,310 5,931 5,795 5,660 5,644 5,450 5,306 5,325 After 5 years 848 839 838 822 837 826 1,346 1,327 Other securities 10,211 10,651 10,783 10,609 10,689 10,615 10,825 10,752 Obligations of States and political subdivisions: Tax warrants, short-term notes, and bills. 2,223 2,561 2,463 2,420 2,349 2,426 2,312 2,342 All other 6,295 6,319 6,384 6,399 6,444 6,452 6,623 6,481 Other bonds, corporate stocks, and securities: Certificates of participation2 193 193 193 194 194 193 192 192 All other, including corporate stocks 1,500 1,578 1,743 1,596 1,702 1,544 1,698 1,737 34 Cash items in process of collection 11,667 12,333 11,601 12,409 13,371 13,445 12,452 11,867 35 Reserves with F.R. Banks 3,564 5,946 3,514 6,337 7,364 5,023 5,787 4,971 36 Currency and coin 839 861 861 892 824 900 879 910 37 Balances with domestic banks 5,129 5,856 5,321 6,143 7,449 5,749 7,022 5,744 38 Investments in subsidiaries not consolidated. 1,377 1,376 1,380 1,375 1,384 1,386 1,372 1,381 39 Other assets 18,984 19,819 19,285 19,169 20,112 20,229 17,932 18,955 40 Total assets/total liabilities. 135,765 138,298 135,956 138,612 144,058 140,767 141,380 138,490 Deposits: Demand deposits 47,710 48,895 47,367 49,183 51,735 49,634 49,973 48,583 Individuals, partnerships, and corporations.. 26,065 27,754 25,948 26,319 27,131 27,517 26,613 26,775 States and political subdivisions 480 436 495 All 474 419 528 440 U.S. Govt 137 173 616 711 490 142 386 324 Domestic interbank: Commercial 11,412 11,378 11,268 12,788 13,839 12,060 13,580 11,999 Mutual savings 562 All 399 395 615 557 483 376 Foreign: Governments, official institutions, etc 1,416 961 1,026 958 1,093 887 892 918 Commercial banks 4,713 4,666 4,698 4,645 4,717 4,920 4,421 4,645 Certified and officers' checks 2,925 3,050 2,917 2,940 3,376 3,132 3,070 3,106 Time and savings deposits3 41,163 41,106 40,805 41,748 42,308 42,541 43,023 43,358 Savings4 10,438 10,400 10,357 10,369 10,374 10,320 10,236 10,185 Time: 30,725 30,706 30,448 31,379 31,934 32,221 32,787 33,173 Individuals, partnerships, and corporations 23,296 23,419 23,019 23,688 23,917 24,161 24,402 24,528 States and political subdivisions 1,396 1,397 1,423 1,452 1,431 1,484 1,612 1,649 Domestic interbank 1,510 1,465 1,481 1,563 1,665 1,689 1,654 1,813 Foreign govts., official institutions, etc 3,703 3,616 3,696 3,874 4,125 4,107 4,358 4,429 57 Federal funds purchased, etc.5 20,966 22,203 20,088 20,751 23,537 22,291 20,061 19,904 Borrowings from: 58 F.R. Banks 204 11,,552222 11,,112233 59 Others 1,537 1,634 11,,779966 2,138 1,966 1,969 22,,113300 2,346 60 Other liabilities, etc.6 11,811 11,899 1111,,779988 12,208 11,923 11,720 1122,,446677 11,702 61 Total equity capital and subordinated notes/debentures7 12,374 12,561 12,580 12,584 12,589 12,612 12,603 12,597 1 Includes securities purchased under agreements to resell. 5 Includes securities sold under agreements to repurchase. 2 Federal agencies only. 6 Includes minority interest in consolidated subsidiaries and deferred 3 Includes time deposits of U.S. Govt, and of foreign banks, which tax portion of reserves for loans. are not shown separately. 7 Includes reserves for securities and contingency portion of reserves 4 For amounts of these deposits by ownership categories, see Table 1.30. for loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Financial Statistics • November 1977 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1977 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26p 1 Total loans and investments 340,241 339,090 338,505 338,552 342,682 341,879 339,976 338,363 Loans: 2 Federal funds sold1 22,091 20,389 19,064 18,887 23,015 20,883 19,057 16,903 3 To commercial banks 16,169 16,707 15,383 15,765 18,535 16,894 13,635 13,370 To brokers and dealers involving— 4 U.S. Treasury securities 3,954 1,929 1,986 1,516 2,481 2,054 3,350 1,787 5 Other securities 572 505 476 382 674 663 514 550 6 To others 1,396 1,248 1,219 1,224 1,325 1,272 1,558 1,196 7 Other, gross 234,646 235,452 236,469 237,168 238,020 239,323 239,002 239,770 8 Commercial and industrial 85,194 85,605 86,186 86,340 86,510 87,092 86,902 87,249 9 Agricultural 4,610 4,638 4,630 4,639 4,633 4,615 4,624 4,638 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 185 158 253 174 201 177 196 142 11 Other securities 4,136 4,036 4,133 4,141 4,436 4,332 4,361 4,161 To others: 12 U.S. Treasury securities 48 48 46 46 48 49 49 59 13 Other securities 2,218 2,215 2,221 2,229 2,220 2,238 2,250 2,273 To nonbank financial institutions: 14 Personal and sales finance cos., etc 4,982 4,946 4,918 4,899 4,911 4,987 4,906 4,932 15 Other 10,357 10,415 10,285 10,353 10,511 10,656 10,374 10,494 16 Real estate 61,567 61,863 62,423 62,600 62,521 62,764 63,140 63,372 To commercial banks: 17 Domestic 1,161 1,197 1,245 1,333 1,329 1,322 1,274 1,374 18 Foreign 3,148 3,192 3,117 3,097 3,137 3,236 3,197 3,321 19 Consumer instalment 39,263 39,409 39,300 39,572 39,652 39,756 39,861 40,057 20 Foreign governments, official institutions, etc. 1,258 1,267 1,245 1,194 1,183 1,194 1,189 1,181 21 All other loans 16,419 16,463 16,467 16,551 16,728 16,905 16,679 16,517 22 LESS : Loan reserve and unearned income on loans 7,589 7,626 7,659 7,638 7,590 7,622 7,651 7,670 23 Other loans, net 227,057 227,826 228,810 229,530 230,430 231,701 231,351 232,100 Investments: 24 U.S. Treasury securities 36,230 35,704 35,771 35,155 34,323 33,910 34,439 33,900 25 Bills 5,389 5,161 5,489 5,020 4,978 4,660 5,040 4,660 Notes and bonds, by maturity: 26 Within 1 year 7,703 7,674 7,644 7,545 7,151 7,192 7,375 7,355 27 1 to 5 years 20,022 19,857 19,630 19,613 19,204 19,074 18,630 18,487 28 After 5 years 3,116 3,012 3,008 2,977 2,990 2,984 3,394 3,398 29 Other securities 54,863 55,171 54,860 54,980 54,914 55,385 55,129 55,460 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 6,782 7,094 6,767 6,736 6,633 7,121 6,750 6,772 31 All other 35,767 35,897 35,705 35,858 35,847 36,041 35,944 36,124 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 1,922 1,858 1,948 2,016 1,996 1,935 1,716 1,900 33 All other, including corporate stocks 10,392 10,322 10,440 10,370 10,438 10,288 10,719 10,664 34 Cash items in process of collection 29,590 27,859 25,287 24,468 28,475 30,688 26,140 25,246 35 Reserves with F. R. Banks 11,766 16,200 15,053 16,652 15,215 17,146 14,418 16,260 36 Currency and coin 4,954 5,354 5,174 5,407 4,630 5,142 5,185 5,344 37 Balances with domestic banks 7,435 7,227 6,858 7,179 8,004 8,264 7,627 7,302 38 Investments in subsidiaries not consolidated 1,406 1,466 1,477 1,497 1,458 1,451 1,441 1,537 39 Other assets 35,877 35,775 35,466 35,013 35,407 34,823 35,475 34,751 40 Total assets/total liabilities 431,269 432,971 427,820 428,768 435,871 439,393 430,262 428,803 Deposits: 41 Demand deposits 131,899 132,360 126.940 127,343 134,106 135,770 129,018 127,583 42 Individuals, partnerships, and corporations .. 104,063 105,881 100,371 99,354 104,262 107,677 102,493 101,850 43 States and political subdivisions 5,092 5,038 5,517 5,319 5,457 5,548 5,355 5,226 44 U.S. Govt 1,564 1,347 2,640 4,648 2,419 1,159 2,081 1,431 Domestic interbank: 45 Commercial 15,370 13,728 12,473 12,390 15,282 15,134 13,099 13,240 46 Mutual savings 478 418 415 404 489 470 434 407 Foreign : 47 Governments, official institutions, etc 234 233 259 254 326 223 244 236 48 Commercial banks 1,390 1,655 1,412 1,432 1,607 1,527 1,634 1,515 49 Certified and officers' checks 3,708 4,060 3,853 3,542 4,264 4,032 3,678 3,678 50 Time and savings deposits* 197,541 197,795 198,438 200,004 199,800 199,349 199,503 199,478 51 Savings4 83,270 83,018 82,933 83,037 83,429 83,288 83,121 82,840 52 Time: 114,271 114,777 115,505 116,967 116,371 116,061 116,382 116,638 53 Individuals, partnerships, and corporations 88,412 88,721 88,977 90,023 89,649 89,343 89,401 89,792 54 States and political subdivisions 19,761 19,871 20,036 20,244 20,176 20,311 20,443 20,412 55 Domestic interbank 2,579 2,611 2,786 2,927 2,868 2,mi 2,897 2,858 56 Foreign govts., official institutions, etc 2,838 2,872 2,893 2,951 2,849 2,785 2,833 2,755 57 Federal funds purchased, etc.5 53,049 53,683 51,944 51,526 52,875 54,802 50,697 52,012 Borrowings from: 58 F. R. Banks 131 136 924 877 232 481 2,110 690 59 Others 2,754 2,839 3,234 3,152 2,999 2,828 2,863 3,026 60 Other liabilities, etc.6 14,730 14,986 15,230 14,665 14,557 14,803 14,765 14,575 61 Total equity capital and subordinated notes/debentures 7 31,165 31,172 31,110 31,201 31,302 31,360 31,306 31,439 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 1977 Account and bank group Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26p Total loans (gross) and investments, adjusted1 1 Large banks 423,357 420,046 422,033 419,719 422,674 423,738 426,990 423,968 2 New York City banks 92,857 91,234 92,497 90,627 92,266 92,453 94,272 92,679 3 Banks outside New York City 330,500 328,812 329,536 329,092 330,408 331,285 332,718 331,289 Total loans (gross), adjusted 4 Large banks 310,338 307,354 309,673 308,417 311,949 313,333 315,465 312,573 5 New York City banks 70,931 69,417 70,768 69,460 70,778 71,343 72,315 70,644 6 Banks outside New York City 239,407 237,937 238,905 238,957 241,171 241,990 243,150 241,929 Demand deposits, adjusted2 7 Large banks 109,869 114,437 110,422 109,112 111,965 112,776 111,253 112,059 8 New York City banks 24,494 25,011 23,882 23,275 24,035 23,987 23,555 24,393 9 Banks outside New York City 85,375 89,426 86,540 85,837 87,930 88,789 87,698 87,666 Large negotiable time CD's included in time and savings deposits3 Total : 10 Large banks 64,697 64,927 65,245 67,449 67,684 67,750 68,483 69,055 11 New York City 19,880 19,760 19,533 20,497 21,157 21,374 21,944 22,391 12 Banks outside New York City 44,817 45,167 45,712 46,952 46,527 46,376 46,539 46,664 Issued to IPC's: 13 Large banks 43,934 44,096 43,868 45,396 45,556 45,594 45,823 46,413 14 New York City Banks 13,813 13,814 13,460 14,145 14,560 14,730 15,018 15,232 15 Banks outside New York City 30,121 30,282 30,408 31,251 30,996 30,864 30,805 31,181 Issued to others: 16 Large banks 20,763 20,831 21,377 22,053 22,128 22,156 22,660 22,642 17 New York City banks 6,067 5,946 6,073 6,352 6,597 6,644 6,926 7,159 18 Banks outside New York City 14,696 14,885 15,304 15,701 15,531 15,512 15,734 15,483 All other large time deposits4 Total: 19 Large banks 27,161 27,130 27,408 27,514 27,781 27,790 28,149 28,416 20 New York City banks 5,509 5,560 5,555 5,564 5,762 5,775 5,892 5,927 21 Banks outside New York City 21,652 21,570 21,853 21,950 22,019 22,015 22,257 22,489 Issued to IPC's: 22 Large banks 15,358 15,400 15,571 15,647 15,877 15,915 16,202 16,323 23 New York City banks 4,222 4,276 4,257 A,211 4,412 4,447 4,548 4,570 24 Banks outside New York City 11,136 11,124 11,314 11,370 11,465 11,468 11,654 11,753 Issued to others: 25 Large banks 11,803 11,730 11,837 11,867 11,904 11,875 11,947 12,093 26 New York City banks 1,287 1,284 1,298 1,287 1,350 1,328 1,344 1,357 27 Banks outside New York City 10,516 10,446 10,539 10,580 10,554 10,547 10,603 10,736 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks 86,828 86,549 86,499 86,621 86,962 86,813 86,645 86,324 29 New York City banks 9,571 9,529 9,498 9,521 9,518 9,477 9,422 9,390 30 Banks outside New York City 77,257 77,020 77,001 77,100 77,444 77,336 77,223 76,934 Partnerships and corporations for profit:5 31 Large banks 5,167 5,172 5,134 5,168 5,145 5,121 5,104 5,170 32 New York City banks 571 562 560 561 543 538 528 524 33 Banks outside New York City 4,596 4,610 4,574 4,607 4,602 4,583 4,576 4,646 Domestic governmental units: 34 Large banks 1,664 1,644 1,609 1,588 1,663 1,634 1,577 1,496 35 New York City banks 265 273 267 270 292 279 264 250 36 Banks outside New York City 1,399 1,371 1,342 1,318 1,371 1,355 1,313 1,246 All other:6 37 Large banks 49 53 48 29 33 40 31 35 38 New York City banks 31 36 32 17 21 26 22 21 39 Banks outside New York City 18 17 16 12 12 14 9 14 Gross liabilities of banks to their foreign branches 40 Large banks 3,824 4,469 4,172 4,696 5,033 5,381 6,665 5,243 41 New York City banks 2,123 1,962 2,539 3,198 2,930 3,015 4,252 2,836 42 Banks outside New York City 1,701 2,507 1,633 1,498 2,103 2,366 2,413 2,407 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial 2,800 2,822 2,813 2,775 2,797 2,804 2,762 2,879 44 Real estate 220 226 215 221 240 216 241 226 45 All other 1,028 1,010 1,029 1,050 1,030 1,057 1,053 1,009 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 NonfinancialS tatistics • November 1977 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1977 1977 1977 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26p Ql Q2 Aug.r Sept. Oct.?' Total loans classified2 1 Total 97,682 98,170 98,596 99,090 99,557 -916 1,532 258 752 1,875 Durable goods manufacturing: 2 Primary metals 2.494 2,448 2,444 2,451 2,436 377 -161 67 104 -58 3 Machinery 4,571 4,641 4,661 4,684 4,665 108 38 -263 90 94 4 Transportation equipment 2,386 2,337 2,374 2,405 2,365 74 94 -85 50 -21 5 Other fabricated metal products.. 1,975 1,961 2,000 1,965 1,996 181 70 -67 106 21 6 Other durable goods 3,732 3,743 3,762 3,704 3,704 90 323 59 71 -28 Nondurable goods manufacturing: 7 Food, liquor, and tobacco 3,456 3,469 3,534 3,545 3,580 -151 -21 119 180 124 8 Textiles, apparel, and leather. . . . 4,020 4,053 4,017 3,912 3,884 381 475 20 -45 -136 9 Petroleum refining 2,713 2,740 2,826 2,783 2,824 -305 285 77 15 111 10 Chemicals and rubber 2,881 2,920 2,928 2,940 2,914 131 68 45 68 33 11 Other nondurable goods 2,168 2,143 2,180 2,172 2,176 147 -22 83 71 8 12 Mining, including crude petroleum and natural gas 8,232 8,235 8,258 8,292 8,379 94 757 25 73 147 Trade: 13 Commodity dealers 1,324 1,431 1,452 1,561 1,602 204 -434 -114 -58 278 14 Other wholesale 6 860 6,953 7,013 7,061 7,081 465 36 130 221 15 Retail 7,200 7,171 7,165 7,228 7,340 405 380 -9 40 140 16 Transportation 4,968 4,930 4,906 4,916 4,908 -140 -128 51 3 -60 17 Communication 1,268 1,359 1,333 1,330 1,298 -10 -152 23 13 30 18 Other public utilities 5,040 5,114 5,057 5,094 5,112 -61 12 -94 -89 72 19 Construction 4,541 4,477 4,517 4,499 4,467 64 294 3 167 -74 20 Services 11,053 11,051 11,040 11,069 11,001 398 331 -7 -73 -52 21 All other domestic loans 7,922 8,020 8,027 7,978 7.992 -303 105 253 -17 70 22 Bankers acceptances 3,766 3,873 3,993 4,313 4,583 -2,930 -263 108 -33 817 23 Foreign commercial and industrial loans 5,112 5,101 5,109 5,188 5,250 -135 -545 -36 -114 138 MEMO: 24 Commercial paper included in total classified loans1 233 201 -216 -34 -40 30 -32 25 Total commercial and industrial loans of all large weekly reporting banks 120,290 120,688 121,404 121,699 122,432 ' 197 r 2,741 395 1,029 2,142 1977 1977 1977 June 29 July 27 Aug. 31 Sept. 28 Oct. 26 Ql Q2 Aug. Sept Oct. "Term" loans classified3 26 Total 46,516 45,901 46,076 46,337 46,631 675 175 261 Durable goods manufacturing: 27 Primary metals 1,388 1,323 1,394 1,426 1,420 204 -133 71 32 28 Machinery 2,520 2,414 2,306 2,337 2,384 -33 -32 -108 31 2 3 9 0 T O r th an er s p f o a r b t r a i t c i a o t n e d e q m u e ip ta m l e p n r t o ducts. 1,3 8 8 3 2 2 1,4 8 0 1 4 3 1,3 7 8 8 2 5 1,4 7 2 7 9 5 1,3 8 7 3 3 1 -1 4 3 4 4 1 3 2 - -2 2 8 2 -1 47 0 31 Other durable goods 1,722 1,719 1,734 1,774 1,774 97 15 40 Nondurable goods manufacturing: 32 Food, liquor, and tobacco 1,435 1,363 1,368 1,400 1,441 14 23 5 32 33 Textiles, apparel, and leather. . . 1,150 1,204 1,149 1,154 1,173 -27 79 -55 5 34 Petroleum refining 1,938 1,975 1,988 1,997 2,129 -202 168 13 9 35 Chemicals and rubber 1,646 1,677 1,705 1,745 1,746 103 99 28 40 36 Other nondurable goods 1,128 1,118 1,088 1,094 1,094 78 96 -30 6 37 Mining, including crude petroleum and natural gas 6,375 6,250 6,295 6,283 6,328 173 519 45 -12 Trade: 38 Commodity dealers 171 180 209 194 209 -1 -28 29 -15 39 Other wholesale 1,483 1,478 1,485 1,540 1,588 16 4 7 55 40 Retail 2,325 2,331 2,379 2,399 2,495 223 57 48 20 41 Transportation 3,649 3,607 3,624 3,625 3,622 -164 -124 17 1 42 Communication 748 764 785 786 812 -68 -31 21 1 43 Other public utilities 3,771 3,416 3,358 3,302 3,413 243 -136 -58 -56 44 Construction 1,833 1,873 1,904 2,042 1,956 32 172 31 138 4 4 5 6 A Se l r l v o i t c h es e r domestic loans 2 5 , ,3 4 0 3 1 2 2 5 , , 4 2 6 4 4 7 2 5 , , 7 28 3 8 3 2 5 , , 5 31 4 5 2 2 5 , , 5 18 0 5 2 -1 1 6 1 7 3 1 - 9 1 0 26 4 9 1 -19 2 1 7 47 Foreign commercial and industrial loans 3,287 3,281 3,117 3,178 3,156 62 -399 -164 61 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 TTyyppee ooff hhoollddeerr 1976 1977 11997722 11997733 11997744 11997755 DDeecc.. DDeecc.. DDeecc.. DDeecc.. 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 3 Nonfinancial business 109.9 116.2 118.8 125.1 116.9 121.2 122.6 130.2 125.1 129.2 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 6 Other 12.3 12.4 11.7 11.3 11.4 11.4 11.5 12.4 11.6 12.2 At weekly reporting banks 1977 11997733 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. Apr. May June July Aug. 7 All holders, IPC 118.1 119.7 124.4 128.5 124.7 127.5 124.4 128.7 131.0 128.0 8 Financial business 14.9 14.8 15.6 17.5 16.7 16.7 17.0 17.8 18.9 18.0 9 Nonfinancial business 66.2 66.9 69.9 69.7 67.8 68.5 67.2 69.5 70.7 68.8 10 Consumer 28.0 29.0 29.9 31.7 31.5 33.5 31.5 32.3 32.6 32.4 11 Foreign 2.2 2.2 2.3 2.6 2.2 2.3 2.4 2.4 2.2 2.5 12 Other 6.8 6.8 6.6 7.1 6.5 6.6 6.4 6.7 6.7 6.4 NOTE.—Figures include cash items in process of collection. Estimates of Data for August 1976 have been revised as follows: All holders, IPC, gross deposits are based on reports supplied by a sample of commercial 119.4; financial business, 15.3; nonfinancial business, 65.5; consumer, banks. Types of depositors in each category are described in the June 1971 30.0; foreign, 2.5; all other, 6.1. BULLETIN, p. 466. 1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1977 1974 1975 1976 Instrument Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted) 1 All issuers 49,742 48,145 52,623 54,546 56,715 57,434 61,237 60,323 60,320 61,391 Financial companies:1 Dealer-placed paper:2 2 Total 4,599 6,220 7,271 7,196 7,286 7,555 8,196 8,261 8,167 8,493 3 Bank-related 1,814 1,762 1,900 1,839 1,778 1,805 1,894 1,744 1,650 1,846 Directly-placed paper: 3 4 Total 31,801 31,230 32,365 33,873 34,753 34,949 37,593 36,773 r36,699 37,670 5 Bank-related 6,518 6,892 5,959 6,126 5,703 5,999 6,636 6,344 6,394 7,069 6 Nonfinancial companies4 13,342 10,695 12,987 13,475 14,676 14,930 15,538 15,289 15,454 15,228 Dollar acceptances (not seasonally adjusted) 7 Total 18,484 18,727 22,523 22,694 22,899 23,201 23,440 23,499 23,091 23,317 Held by: 8 Accepting banks 4,226 7,333 10,442 7,787 7,761 7,326 7,630 7,601 7,647 7,473 9 Own bills 3,685 5,899 8,769 6,367 6,309 6,218 6,356 6,464 6,580 6,566 10 Bills bought 542 1,435 1,673 1,421 1,381 1,108 1,273 1,137 1,067 907 F.R. Banks: 11 Own account 999 1,126 991 280 881 108 621 393 131 482 12 Foreign correspondents.. 1,109 293 375 435 394 385 360 296 304 287 13 Others 12,150 9,975 13,447 14,191 13,863 15,382 14,829 15,209 15,009 15,075 Based on: 14 Imports into United States. 4,023 3,726 4,992 4,983 5,114 5,124 5,635 5,570 5,446 5,654 15 Exports from United States 4,067 4,001 4,818 5,222 5,376 5,642 5,729 5,842 5,747 5,544 16 All other 10,394 11,000 12,713 12,489 12,410 12,436 12,076 12,088 11,899 12,119 1 Institutions engaged primarily in activities such as, but not limited to, 3 As reported by financial companies that place their paper directly commercial, savings, and mortgage banking; sales, personal, and mortgage with investors. financing; factoring, finance leasing, and other business lending; insurance 4 Includes public utilities and firms engaged primarily in activities such underwriting; and other investment activities. as communications, construction, manufacturing, mining, wholesale and 2 Includes all financial company paper sold by dealers in the open retail trade, transportation, and services. market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • November 1977 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Month Average Month Effective date Rate Effective date Rate rate 1976—June 1. 7 1977—May 13 6Vi 1976—June 7.20 1977—Jan.. 71/4 31 63/4 July. 7.25 Feb. 7, Aug. 7.01 Mar 7 Aug. 22 7 Sept. 7.00 Apr. Aug. 2, Oct.. 6.78 May 6 y 4 Sept. 16 IVA Nov. 6.50 June, Oct. 4 Dec. 6.35 July. Oct. 7 m Aug. Nov. 1, Oct. 24 m Sept. 6% Oct.. Dec. 13, 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, Aug. 1-6, 1977 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) 8,184,373 895,501 660,159 693,427 2,102,846 626,169 3,206,271 2 Number of loans 174,527 129,887 20,838 10,947 10,734 1,015 1,106 3 Weighted-average maturity (months) 3.0 2.6 3.0 2.5 2.8 2.8 3.5 4 Weighted-average interest rate (per cent per annum).. 7.87 9.24 8.56 8.75 7.87 7.59 7.22 5 Interquartile range 1 6.92-8.66 8.30-10.11 8.00-9.20 7.78-10.00 7.19-8.32 6.94-8.00 6.75-7.45 Percentage of amount of loans: 6 With floating rate 52.7 26.1 29.3 50.9 53.0 55.2 64.6 7 Made under commitment 40.8 13.9 17.5 20.7 36.8 59.4 56.3 Long-term commercial and industrial loans 8 Amount of loans (thousands of dollars) ,195,225 375,556 206,220 86,110 527,338 9 Number of loans 25,464 24,063 1,121 116 164 10 Weighted-average maturity (months) 63.8 51.7 116.6 46.5 54.7 11 Weighted-average interest rate (per cent per annum).. 8.09 9.35 7.03 8.18 7.60 12 Interquartile range 1 6.95-9.16 8.45-10.00 4.41-9.00 7.50-9.11 6.85-8.77 Percentage of amount of loans: 13 With floating rate 53.4 23.3 41.2 61.5 78.4 14 Made under commitment 53.6 15.4 64.7 54.1 76.5 Construction and land development loans 15 Amount of loans (thousands of dollars) 570,762 163,298 141,147 48,143 109,676 108,497 16 Number of loans 30,413 25,343 3,751 689 554 7.6 17 Weighted-average maturity (months) 13.1 11.7 10.3 9.9 10.5 23.6 18 Weighted-average interest rate (per cent per annum).. 8.70 9.16 8.84 8.93 8.70 7.73 19 Interquartile range 1 16-9.28 8.24-9.84 8.27-9.25 48-9.43 8.23-9.34 7.76-9.00 Percentage of amount of loans: 20 With floating rate 29.0 8.4 9.0 45.8 51.5 55.7 21 Secured by real estate 73.4 67.6 59.5 87.5 84.0 83.4 22 Made under commitment 44.2 39.7 29.3 64.4 62.6 42.9 23 Type of construction: 1-to 4-family 41.4 44.2 54.0 59.9 30.2 23.7 24 Multifamily 7.3 8.4 1.4 4.0 10.5 11.4 25 Nonresidential 51.4 47.5 44.6 36.1 59.3 64.8 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) 871,995 162,789 157,705 113,508 118,272 92,800 226,921 27 Number of loans 64,828 47,939 10,788 3,412 1,871 618 199 28 Weighted-average maturity (months) 7.0 6.9 10.1 5.8 8.3 5.6 5.6 29 Weighted-average interest rate (per cent per annum).. 8.72 8.98 8.79 8.81 8.82 8.90 8.33 30 Interquartile range 1 .25-9.24 8.50-9.27 8.59-9.27 8.59-9.20 8.16-9.31 8.59-9.31 7.51-9.04 31 By purpose of loan: 3 3 2 3 O Fe t e h d e e r r l i l v iv e e st s o to ck ck 8 8 . . 4 6 0 0 8 8 . . 8 6 8 9 8 8. . 6 7 1 6 8 8. . 4 8 6 0 8 8 . . 7 4 5 8 8 8. . 5 6 8 0 8. ( 023 ) 3 3 5 4 F O a t r h m er m cu a r c r h e i n n t e o ry p e a r n a d ti n e g q u e i x p p m en en se t s 9 9 . . 0 0 0 2 9 8 . . 0 9 7 7 9 9 . . 0 2 1 3 9 8 . . 1 8 2 7 9 9 . . 0 3 6 0 9.0 ( 12 ) 8 8 .5 .3 7 36 Other 8.60 9.25 7.80 8.81 8.47 8.98 8.61 1 Interest rate range that covers the middle 50 per cent of the total NOTE.—For more detail, see the Board's G.14 statistical release, dollar amount of loans made. 2 Fewer than three sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets All 1.36 INTEREST RATES Money and Capital Markets Averages, per cent per annum 1977 1977, week ending— IInnssttrruummeenntt 1974 1975 1976 July Aug. Sept. Oct. Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Money market rates Prime commercial paper 1 1 90- to 119-day 10.05 6.26 5.24 5.38 5.75 6.09 6.51 6.25 6.36 6.50 6.61 6.55 2 4- to 6-month 9.87 6.33 5.35 5.41 5.84 6.17 6.55 6.30 6.39 6.54 6.66 6.61 3 Finance company paper, directly placed, 8.62 66..1166 55..2222 5.38 5.71 66..0044 66..4411 6.13 6.23 6.38 6.50 6.50 4 Prime bankers acceptances, 90-day 3 9.92 6.30 5.19 5.43 5.88 6.16 6.57 6.30 6.48 6.64 6.62 6.53 5 Federal funds 4 10.51 5.82 5.05 5.42 5.90 6.14 6.47 6.35 6.41 6.41 6.50 6.49 Large negotiable certificates of deposit 6 3-month, secondary market 5 10.27 6.43 5.26 5.46 5.91 6.18 6.24 6.37 6.43 6.58 6.80 6.72 7 5 15 5.32 5.82 6.04 6.53 6.29 6.30 6.63 6.63 6.57 8 Euro-dollar deposits, 3-month 7 10.96 6.97 5.57 5.80 6.30 6.57 7.14 6.78 7.06 7.33 7.16 7.01 U.S. Govt, securities Bills: 8 Market yields: 9 3-month 7.84 5.80 4.98 5.19 5.49 5.81 6. 16 5.89 6.09 6.32 6. 17 6.09 10 6-month 7.95 6.11 5.26 5.40 5.83 6.04 6.43 6.16 6.33 6.52 6.49 6.37 11 1-year 7.71 6.30 5.52 5.57 5.97 6.13 6.52 6.21 6.38 6.61 6.59 6.49 Rates on new issue: 12 7.886 5.838 4.989 5.146 5.500 5.770 6.188 5.982 6.108 6.156 6.282 6.207 13 7.926 6.122 5.266 5.351 5.810 5.991 6.410 6.185 6.286 6.381 6.496 6.478 Notes and bonds maturing in 14 9 to 12 months 9 8.25 6.70 5.84 5.89 6.35 6.53 6.96 6.64 6.77 7.02 7.08 6.97 Constant maturities:1 o 15 1-year 8.18 6.76 5.88 5.94 6.37 6.53 6.97 6.63 6.79 7.05 7.07 6.96 Capital market rates Government notes and bonds U.S. Treasury: Constant maturities:10 16 2-year 6.31 6.27 6.61 6.71 7. 11 6.82 6.88 7.14 7.22 7.17 17 7.82 7.49 6.77 6.51 6.79 6.84 7. 19 6.94 6.97 7.18 7.28 7.28 18 5-year 7.80 7.77 7.18 6.84 7.03 7.04 7.32 7.10 7.18 7.32 7.36 7.39 19 7-year 7.71 7.90 7.42 7.12 7.24 7.21 7.44 7.26 7.32 7.47 7.47 7.50 20 10-year 7.56 7.99 7.61 7.33 7.40 7.34 7.52 7.40 7.43 7.54 7.55 7.57 21 20-year 8.05 8.19 7.86 7.60 7.64 7.57 7.71 7.61 7.63 7.72 7.73 7.74 2222 30-year 77..6644 77..6688 77..6644 77..7777 77..6688 77..7711 77..7799 77..7799 77..8811 Notes and bonds maturing in$— 23 3 to 5 years 7.81 7.55 6.94 6.67 6.90 6.92 7.23 6.98 7.05 7.21 7.30 7.32 24 Over 10 years (long-term) 6.99 6.98 6.78 6.97 7.00 6.94 7.08 6.97 7.01 7.09 7.11 7.12 State and local: Moody's series:11 25 Aaa 5.89 6.42 5.66 5.21 5.28 5.27 5.31 5.27 5.30 5.35 5.34 5.25 26 Baa 6.53 7.62 7.49 6.00 5.95 5.83 5.94 5.83 5.88 5.95 5.93 5.98 27 Bond Buyer series 12 6.17 7.05 6.64 5.63 5.62 5.51 5.64 5.51 5.60 5.70 5.67 5.59 Corporate bonds Seasoned issues 13 28 All industries 9.03 9.57 9.01 8.33 8.34 8.31 8.42 8.34 8.36 8.41 8.44 8.46 By rating groups: 29 Aaa 8.57 8.83 8.43 7.94 7.98 7.92 8.04 7.96 7.99 8.04 8.05 8.06 30 Aa 8.84 9.17 8.75 8.12 8.17 8.15 8.26 8. 18 8.19 8.24 8.29 8.30 31 A 9.20 9.65 9.09 8.40 8.40 8.37 8.48 8.39 8.43 8.47 8.51 8.52 32 Baa 9.50 10.61 9.75 8.87 8.82 8.80 8.89 8.82 8.82 8.86 8.91 8.95 Aaa utility bonds:14 33 9.33 9.40 8.48 8.14 8.04 8.07 8.23 8. 14 8.15 8.20 8.22 8.28 34 Recently offered issues 9.34 9.41 8.49 8.12 8.05 8.07 8.22 8.12 8.14 8.23 8.21 8.24 Dividend/price ratio 35 8.23 8.38 7.97 7.51 7.55 7.58 7.60 7.56 7.62 7.72 7.56 7.56 36 Common stocks 4.47 4.31 3.77 4.59 4.72 4.82 '4.97 4.87 4.86 4.94 5.04 5.05 1 Averages of the most representative daily offering rates 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 Jo 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 NonfinancialS tatistics • November 1977 1.37 STOCK MARKET Selected Statistics 1977 Indicator 1974 1975 1976 Apr. May June July Aug. Sept. Oct. 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 53.92 53,96 54.31 54.94 53.51 52.66 51.37 48.08 51.88 60.44 58.47 58.13 58.44 58.90 57.30 56.41 54.99 31.89 30.73 39.57 41.51 43.25 43.29 43.52 41.04 39.99 38.33 4 Utility 29.82 31.45 36.97 40.24 41.14 41.59 42.44 41.50 40.93 40.38 49.67 46.62 52.94 54.30 54.80 55.15 57.29 56.52 55.33 53.24 6 Standard & Poor's Corporation (1941-43 = 10)1.. 82.85 85.17 102.01 99.05 98.76 99.29 100.19 97.75 96.23 93.78 7 American Stock Exchange (Aug. 31,1973 = 100). 79.97 83.15 101.63 111.70 113.72 116.28 122.03 119.33 118.08 115.41 Volume of trading (thousands of shares)2 8 New York Stock Exchange 13,883 18,568 21,189 21,214 20,277 22,007 23,656 1188,,883311 18,270 19,689 9 American Stock Exchange 1,908 2,150 2,565 2,500 2,440 2,720 2,880 2,140 2,080 2,080 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 9,885 10,068 10,255 10,490 10,592 10,617 11 Brokers, total 3,980 5,540 8,166 9,078 9,267 9,432 9,667 9,763 9,793 12 Margin stock4 3,840 5,390 7,960 8,880 9,070 9,230 9,460 9,560 824 13 Convertible bonds 137 147 204 196 196 198 204 196 9,590 14 Subscription issues 3 3 2 2 1 4 3 7 783 15 Banks, total 856 960 845 807 801 823 823 829 196 16 Margin stocks 815 909 800 764 761 779 780 787 24 17 Convertible bonds 30 36 30 25 25 25 24 23 7 18 Subscription issues 11 15 15 18 15 19 19 19 17 19 Unregulated nonmargin stock credit at banks5 2,064 2,281 2,817 2,350 2,345 2,403 2,419 2,438 2,434 MEMO: Free credit balances at brokers6 20 Margin-account 410 475 585 615 625 595 600 605 600 21 Cash-account 1,425 1,525 1,855 1,715 1,710 1,805 1,860 1,745 1,745 Margin-account debt at brokers (percentage distribution, end of period) 22 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in per cent):7 23 Under 40 45.4 24.0 12.0 16.5 17.8 12.9 16.2 17.4 18.0 24 40-49 23.0 28.8 23.0 34.1 35.6 27.0 32.9 32.0 36.0 25 50-59 13.9 22.3 35.0 25.4 23.0 33.0 26.4 27.0 23.0 26 60-69 8.8 11.6 15.0 11.8 11.0 13.3 12.0 12.0 11.0 27 70-79 4.6 6.9 8.7 6.8 7.0 8.0 7.0 7.0 6.0 28 80 or more 4.3 5.3 6.0 5.4 5.0 5.8 5.5 5.0 5.0 Special miscellaneous-account balances at brokers (end of period) 29 Total balances (millions of dollars) «... 7,010 7,290 8,776 9,300 9,360 9,470 9,730 9,660 9,640 Distribution by equity status (per cent) 30 Net credit status 41.1 43.8 41.3 41.4 41.0 41.0 40.9 41.1 41.7 Debit status, equity of— 31 60 per cent or more 32.4 40.8 47.8 46.3 46.3 47.8 47.1 46.2 45.9 32 Less than 60 per cent 26.5 15.4 10.9 12.4 12.6 11.2 12.0 12.4 12.4 1 Effective July 1976, includes a new financial group, banks and in- 5 Nonmargin stocks are those not listed on a national securities exsurance companies. With this change the index includes 400 industrial change and not included on the Federal Reserve System's list of over-thestocks (formerly 425), 20 transportation (formerly 15 rail), 40 public counter margin stocks. At banks, loans to purchase or carry nonmargin utility (formerly 60), and 40 financial. stocks are unregulated; at brokers, such stocks have no loan value. 2 Based on trading for a 5^-hour day. 6 Free credit balances are in accounts with no unfulfilled commitments 3 Margin credit includes all credit extended to purchase or carry to the brokers and are subject to withdrawal by customers on demand. stocks or related equity instruments and secured at least in part by stock. 7 Each customer's equity in his collateral (market value of collateral Credit extended by brokers is end-of-month data for member firms of less net debit balance) is expressed as a percentage of current collateral the New York Stock Exchange; June data fpr 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 redata 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 1977 1974 1975 1976 Account Jan. Feb. Mar. Apr. May June July Aug.r Sept. Savings and loan associations 1 295,545 338,233 391,999 398,299 403,591 409,357 414,436 421,865 427,041 433,828 440,202 444,480 2 Mortgages 249,301 278,590 323,130 326,056 329,086 333,703 338,984 344,631 350,765 355,991 361,719 366,975 3 Cash and investment securities1 23,251 30,853 35,660 38,252 39,505 39,656 39,061 40,461 39,626 40,990 41,002 39,621 4 Other 22,993 28,790 33,209 33,991 35,000 35,998 36,391 36,773 36,650 36,847 37,481 37,884 5 Liabilities and net worth.... 295,545 338,233 391,999 398,299 403,591 409,357 414,436 421,865 427,041 433,828 440,202 444,480 6 Savings capital 242,974 285,743 336,030 341,211 344,616 352,194 354,318 357,965 364,349 368,513 371.376 377.320 7 Borrowed money 24,780 20,634 19,087 18,455 18,256 18,283 18,880 19,804 20,558 20,964 22,031 22,934 8 FHLBB 21,508 17,524 15,708 15,029 14,661 14,325 14,809 15,000 15,595 15,724 16,255 16,919 9 Other 3,272 3,110 3,379 3,426 3,595 3,958 4,071 4,804 4,963 5,240 5,776 6,015 10 Loans in process 3,244 5,128 6,836 6,718 6,783 7,351 7,899 8,505 9,123 9,332 9,657 9,742 11 Other 6,105 6,949 8,015 9,667 11,418 8,833 10,360 12,287 9,515 11,220 12,990 10,112 12 Net worth2 18,442 19,779 22,031 22,248 22,518 22,696 22,979 23,304 23,496 23,799 24,148 24,372 13 MEMO : Mortgage loan commitments outstanding 3.. 7,454 10,673 14,828 15,079 16,796 19,304 21,242 22,21A 22,037 21,911 21,905 21,620 Mutual savings banks 14 Assets 109,550 121,056 134,812 135,906 137,307 138,901 139,496 140,593 141,778 143,036 143,815 Loans: 15 Mortgage 74,891 77,221 81,630 81,826 81,982 82,273 82,687 83,075 84,051 84,700 85,419 16 Other 3,812 4,023 5,183 5,956 6,254 6,389 6,050 6,650 6,887 7,176 7,119 Securities: 17 U.S. Govt 2,555 4,740 5,840 5,917 6,096 6,360 6,323 6,248 6,604 6,101 6,019 18 State and local government. 930 1,545 2.417 2,295 2,366 2,431 2,504 2,539 2,544 2,594 2,762 19 Corporate and other4 22,550 27,992 33,793 34,475 35,088 35,928 36,322 36,455 36,349 36,674 36,878 20 Cash 2,167 2,330 2,355 1,800 1,835 1,823 1,900 1,922 2,071 2,001 6,857 21 Other assets 2,645 3,205 3,593 3,637 3,686 3,668 3,709 3,703 3,771 3,789 3,760 22 Liabilities 109,550 121,056 134,812 135,906 137,307 138,901 139,496 140,593 141,778 143,036 143,815 23 Deposits 98,701 109,873 122,877 123,864 124,728 126,687 126,938 127,791 129,332 130,111 130,381 24 Regular:5 98,221 109,291 121,961 122,874 123,721 125,624 125,731 126,587 128,071 128,748 129,030 25 Ordinary savings 64,286 69,653 74,535 74,621 75,038 76,260 76,336 76,384 77,033 77,069 77,163 26 Time and other 33,935 39,639 47,426 48,253 48,683 49,364 49,395 50,203 51,038 51,679 51,867 27 Other 480 582 916 989 1,007 1,063 1,207 1,204 1,261 1,363 1,351 28 Other liabilities 2,888 2,755 2,884 2,940 3,368 2,939 3,230 3,381 2,939 3,379 3,779 29 General reserve accounts.... 7,961 8,428 9,052 9,102 9,211 9,275 9,329 9,422 9,506 9,546 9,654 30 MEMO : Mortgage loan commitments outstanding 6.. 2,040 1,803 2,439 2,584 2,840 3,161 3,287 3,521 4,079 4,049 4,198 Life insurance companies 31 Assets 263,349 289,304 321,552 323,407 325,094 326,753 328,786 331,028 334,386 336,651 338,964 Securities : 32 Government 10,900 13,758 17,942 18,198 18,443 18,470 18,500 18,475 18,579 18,916 19,174 33 United States 7 3,372 4,736 5,368 5,537 5,592 5,546 5,544 5,396 5,400 5,628 5,831 34 State and local 3,667 4,508 5,594 5,657 5,709 5,732 5,758 5,797 5,813 5,847 5,881 35 Foreign 8 3,861 4,514 6,980 7,004 7,142 7,192 7,198 7,282 7,366 7,441 7,462 36 Business 119,637 135,317 157,246 159,213 160,463 161,214 162,816 164,126 166,859 168,498 169,747 37 Bonds 97,717 107,256 122,984 125,910 127,603 128,596 130,057 131,568 133,497 135,262 136,752 38 Stocks 21,920 28,061 34,262 33,303 32,860 32,618 32,759 32,558 33,362 33,236 32,995 39 Mortgages 86,234 89,167 91,552 91,566 91,585 91,786 92,200 92,358 92,854 93,106 93,326 40 Real estate 8,331 9,621 10,476 10,556 10,629 10,738 10,802 10,822 10,897 10,901 10,926 41 Policy loans 22,862 24,467 25,834 25,911 26,034 26,207 26,364 26,500 26,657 26,780 26,946 42 Other assets 15,385 16,971 18,502 17,963 17,940 18,338 18,104 18,747 18,540 18,450 18,845 Credit unions 43 Total assets/liabilities and capital 31,948 38,037 44,897 44,906 45,798 47,111 47,348 48,322 49,479 49,501 50,123 52,153 44 Federal 16,715 20,209 24,164 24,188 24,756 25,596 25,697 26,259 27,017 26,951 27,304 28,384 45 State 15,233 17,828 20,733 20,718 21,042 21,515 21,651 22,063 22,462 22,550 22,819 23,769 46 Loans outstanding 24,432 28,169 34,033 34,188 34,549 35,411 36,019 36,936 38,134 38,597 39,613 40,651 47 Federal 12,730 14,869 18,022 18,081 18,275 18,776 19,050 19,583 20,303 20,456 21,036 21,692 48 State 11,702 13,300 16,011 16,107 16,274 16,635 16,969 17,353 17,831 18,141 18,577 18,959 49 Savings 27,518 33,013 39,264 39,344 39,981 41,161 41,394 42,125 43,196 43,294 43,575 44,914 50 Federal (shares) 14,370 17,530 21,149 21,165 21,559 22,346 22,524 22,955 23,608 23,661 23,882 24,775 51 State (shares and deposits). 13,148 15,483 18,115 18,179 18,442 18,815 18,870 19,170 19,588 19,633 19,693 20,139 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • November 1977 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Transition Fiscal quarter Fiscal Type of account or operation year (July- year 1976 1977 1977 1976 Sept. 1977 1976) HI H2 HI July Aug. Sept. U.S. Budget 1 Receipts 1 299,197 81,686 356,861 159,742 157,868 189,410 24,952 29,676 36,642 2 Outlays 1,2,3 365,658 94,659 401,896 180,559 -193,629 199,482 33,630 34,720 35,097 3 Surplus, or deficit (—) -66,461 -12,973 -45,035 -20,816 -35,761 -10,072 -8,678 -5,044 1,545 4 Trust funds 2,409 -1,952 7,833 5,503 -4,621 7,332 -3,348 2,384 3,900 5 Federal funds 4 -68,870 -11,021 -52,868 -26,320 -31,140 -17,405 -5,330 -7,429 -2,355 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays... -5,915 -2,575 -8,415 -3,222 -5,176 -2,075 -1,606 -1,241 -892 7 Other 2,5 -1,355 793 -269 -1,119 3,809 -2,086 -122 -290 -786 U.S. Budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit ( — ) -73,731 -14,755 -53,718 -25,158 -37,125 -14,233 -10,406 -6,575 -133 Financed by: 9 Borrowing from the public 3. . . 82,922 18,027 53,516 33,561 35,457 16,480 1,803 7,780 10,024 10 Cash and monetary assets (decrease, or increase (—)) -7,796 -2,899 -2,238 -7,909 2,153 -4,666 6,730 2,740 -12,093 11 Other 6 -1,396 -373 2,440 -495 -485 2,420 1,874 -3,944 2,202 MEMO ITEMS : 12 Treasury operating balance (level, end of period) 14,836 17,418 19,104 14,836 11,670 77,311 10,154 7,063 19,104 13 F.R.Banks 11,975 13,299 15,740 11,975 10,393 65,372 8,789 6,115 15,740 14 Tax and loan accounts 2,854 4,119 3,364 2,854 1,277 11,940 1,365 948 3,364 15 Other demand accounts 7 7 7 1 Effective June 1977, earned income credit payments in excess of an Electrification and Telephone Revolving Fund, Rural Telephone Bank, individual's tax liability, formerly treated as outlays, are classified as and Housing for the Elderly or Handicapped Fund. income tax refunds retroactive to January 1976. 6 Includes: Public debt accrued interest payable to the public; deposit 2 Outlay totals reflect the reclassification of the Export-Import Bank funds; miscellaneous liability (including checks outstanding) and asset from off-budget status to unified budget status. accounts; seignorage; increment on gold; net gain/loss for U.S. currency 3 Export-Import Bank certificates of beneficial interest (effective July valuation adjustment; net gain/loss for IMF valuation adjustment. 1,1975) and loans to the Private Export Funding Corp. (PEFCO), a wholly 7 Excludes the gold balance but includes deposits in certain commercial owned subsidiary of the Export-Import Bank are treated as debt rather depositories that have been converted from a time deposit to a demand than asset sales. deposit basis to permit greater flexibility in Treasury cash management. 4 Half years calculated as a residual of total surplus/deficit and trust fund surplus/deficit. SOURCE.—"Monthly Treasury Statement of Receipts and Outlays of 5 Includes Pension Benefit Guaranty Corp., Postal Service Fund, Rural the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year 1978. NOTES TO TABLE 1.38 1 Holdings of stock of the Federal home loan banks are included in Even when revised, data for current and preceding year are subject to "other assets." further revision. 2 Includes net undistributed income, which is accrued by most, but not Mutual savings banks: Estimates of National Association of Mutual all, associations. Savings Banks for all savings banks in the United States. Data are re- 3 Excludes figures for loans in process, which are shown as a liability. ported on a gross-of-valuation-reserves basis. 4 Includes securities of foreign governments and international organiza- Life insurance companies: Estimates of the Institute of Life Insurance tions and nonguaranteed issues of U.S. Govt, agencies. for all life insurance companies in the United States. Annual figures are 5 Excludes checking, club, and school accounts. annual-statement asset values, with bonds carried on an amortized basis 6 Commitments outstanding (including loans in process) of banks in and stocks at year-end market value. Adjustments for interest due and New York State as reported to the Savings Banks Assn. of the State of accrued and for differences between market and book values are not New York. made on each item separately but are included, in total, in "other assets." 7 Direct and guaranteed obligations. Excludes Federal agency issues Credit unions: Estimates by the National Credit Union Administration not guaranteed, which are shown in this table under "business" securities. for a group of Federal and State-chartered credit unions that account for 8 Issues of foreign governments and their subdivisions and bonds of the about 30 per cent of credit union assets. Figures are preliminary and International Bank for Reconstruction and Development. revised annually to incorporate recent benchmark data. NOTE.—Savings and loan associations: Estimates by the FHLBB for all associations in the United States. Data are based on monthly reports of Federally insured associations and annual reports of other associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Transition Fiscal quarter Fiscal Source or type year (July- year 1976 1977 1977 1976 Sept. 1977 1976) HI H2 HI July Aug. ' Sept. Receipts 1 All sources 1 299,197 81,686 356,861 159,742 157,868 189,410 24,952 29,676 36,642 2 Individual income taxes, net 130,794 39,611 156,725 64,959 75,899 77,948 12,438 12,725 17,327 3 Withheld 123,408 32,949 144,820 63,859 68,023 73,303 12,240 12,429 11,776 4 Presidential Election Campaign Fund 34 j 37 33 j 37 5 Nonwithheld 35,528 6,809 42,062 27,879 8,426 32,959 923 660 5,903 6 Refunds 1 28,175 1,139 30,194 26,813 1,541 28,350 726 364 352 7 Corporation income taxes: 8 Gross receipts 46,783 9,808 60,057 27,973 20,706 37,133 1,968 1,288 8,770 9 Refunds 5,374 1,348 5,164 2,639 2,886 2,324 430 479 394 10 Social insurance taxes and contributions, net 92,714 25,760 108,683 51,828 47,596 58,099 7,961 12,958 7,828 11 Payroll employment taxes and contributions 2 76,391 21,534 88,196 40,947 40,427 45,242 6,725 10,347 6,990 12 Self-employment taxes and contributions 3 3,518 269 44,,001144 33,,225500 286 33,,668877 309 13 Unemployment insurance 8,054 2,698 1111,,331122 55,,119933 4,379 66,,557755 800 2,161 94 14 Other net receipts 4 A,152 1,259 55,,116622 22,,443388 2,504 22,,559955 437 450 434 15 Excise taxes 16,963 4,473 17,548 8,204 8,910 8,432 1,567 1,523 1,589 16 Customs 4,074 1,212 5,150 2,147 2,361 2,519 446 543 494 17 Estate and gift 5,216 1,455 7,327 2,643 2,943 4,332 505 547 454 18 Miscellaneous receipts 5 8,026 1,612 6,536 4,630 3,236 3,269 498 572 575 Outlays 19 All types 1, 6 365,658 94,659 401,896 180,559 193,629 199,482 33,630 34,720 35,097 20 National defense 89,996 22,518 96,721 44,052 45,002 48,721 8,004 8,412 8,979 21 International affairs 6 5,067 1,997 5,593 2,668 3,028 2,522 463 497 868 22 General science, space, and technology 4,370 1,161 4,677 1,708 2,377 2,108 357 420 393 23 Natural resources, environment, and energy 11,282 3,324 14,335 6,900 7,206 6,855 1,266 1,404 1,511 24 Agriculture 2,502 584 5,330 417 2,019 2,628 334 740 50 25 Commerce and transportation 17,248 4,700 14,731 5,766 9,643 5,945 978 988 1,863 26 Community and regional development 5,300 1,530 7,394 2,411 3,192 3,149 627 875 941 27 Education, training, employment, and social services 18,167 5,013 19,718 9,116 9,083 9,775 1,656 1,970 1,801 28 Health 33,448 8,720 38,838 17,008 19,329 18,654 3,115 3,469 3,316 29 Income security 1 126,598 32,710 137,151 64,526 65,367 69,917 11,590 11,598 11,643 30 Veterans benefits and services 18,432 3,962 18,040 9,450 8,542 9,382 1,338 1,430 1,325 31 Law enforcement and justice 3,320 859 3,589 1,784 1,839 1,783 291 269 267 32 General government 2,927 878 3,338 870 1,734 1,587 198 347 326 33 Revenue sharing and general purpose fiscal assistance 7,119 2,024 9,404 3,664 4,729 4,333 2,257 44 65 34 Interest 7 34,589 7,246 38,092 18,560 18,409 18,927 2,494 2,844 2,722 35 Undistributed offsetting receipts 7,8 -14,704 -2,567 -15,053 -8,340 -7,869 -6,803 -1,338 -587 -973 1 Effective June 1977, earned income credit payments in excess of an from off-budget status to unified budget status. Export-Import Bank individual's tax liability, formerly treated as outlays, are classified as in- certificates of beneficial interest (effective July 1, 1975) and loans to the come tax refunds retroactive to January 1976. Private Export Funding Corp. (PEFCO), a wholly owned subsidiary of 2 Old-age, disability and hospital insurance, and Railroad Retirement the Export-Import Bank, are treated as debt rather than asset sales. accounts. 7 Effective September 1976, "Interest" and "Undistributed Offsetting 3 Old-age, disability, and hospital insurance. Receipts" reflect the accounting conversion for the interest on special 4 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. 8 Consists of interest received by trust funds, rents and royalties on 5 Deposits of earnings by F.R. Banks and other miscellaneous receipts. the Outer Continental Shelf, and U.S. Govt, contributions for em- 6 Outlay totals reflect the reclassification of the Export-Import Bank ployee retirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • November 1977 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1974 1975 1976 1911 IItteemm June 30 Dec. 31 June 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 486.2 504.0 544.1 587.6 631.9 2646.4 665.5 680.1 685.2 2 Public debt securities 474.2 492.7 533.7 576.6 620.4 634.7 653.5 669.2 674.4 3 Held by public 336.0 351.5 387.9 437.3 470.8 488.6 506.4 524.3 523.2 4 Held by agencies 138.2 141.2 145.3 139.3 149.6 146.1 147.1 144.9 151.2 5 Agency securities 12.0 11.3 10.9 10.9 11.5 11.6 12.0 10.9 10.8 6 Held by public 10.0 9.3 9.0 8.9 9.5 29.1 10.0 9.1 9.0 7 Held by agencies 2.0 2.0 1.9 2.0 2.0 1.9 1.9 1.8 1.8 8 Debt subject to statutory limit 476.0 493.0 534.2 577.8 621.6 635.8 654.7 670.3 675.6 9 Public debt securities 473.6 490.5 532.6 576.0 619.8 634.1 652.9 668.6 673.8 10 Other debt1 2.4 2.4 1.6 1.7 1.7 1.7 1.7 1.7 1.7 11 MEMO: Statutory debt limit 495.0 495.0 577.0 595.0 636.0 636.0 682.0 682.0 700.0 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 June July Aug. Sept. Oct. 1 Total gross public debt1 469.9 492.7 576.6 653.5 674.4 673.9 685.2 698.8 697.4 By type: 2 Interest-bearing debt 467.8 491.6 575.7 652.5 673.4 671.4 684.1 697.6 696.3 3 Marketable 270.2 282.9 363.2 421.3 431.1 430.2 438.1 443.5 447.4 4 Bills 107.8 119.7 157.5 164.0 155.1 154.2 154.3 156.1 156.2 5 Notes 124.6 129.8 167.1 216.7 232.9 231.4 238.1 241.7 245.6 6 Bonds 37.8 33.4 38.6 40.6 43.2 44.7 45.8 45.7 45.7 7 Nonmarketable2 197.6 208.7 212.5 231.2 242.2 241.1 245.9 254.1 248.9 8 Convertible bonds3 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 21.7 21.5 21.4 21.8 21.1 10 Savings bonds and notes 60.8 63.8 67.9 72.3 74.7 75.2 75.5 75.8 76.2 11 Govt, account series5 108.0 119.1 119.4 129.7 134.8 132.4 136.3 140.1 136.9 By holder:6 12 U.S. Govt, agencies and trust funds 129.6 141.2 139.3 147.1 151.2 148.7 151.9 13 F.R.Banks 78.5 80.5 87.9 97.0 102.2 98.6 98.4 14 Private investors 261.7 271.0 349.4 409.5 421.0 426.5 434.9 15 Commercial banks 60.3 55.6 85.1 103.8 102.4 100.1 100.0 1 1 1 6 7 8 I O M n t s u h u t e u r r a a n c l o c s e r a p v c o i o n r m a gs t p i a o b n n a s i n e k s s 1 2 6 0 . . . 9 4 9 1 2 6 1 . . . 5 1 0 2 4 9 0 . . . 5 3 2 2 1 5 6 2 . . . 5 7 5 2 1 6 3 4 . . . 8 0 2 2 1 6 3 4 . . . 5 0 1 2 1 6 4 3 . . . 5 0 1 19 State and local governments.... 29.2 29.2 33.8 41.6 47.8 47.8 52.7 Individuals: 20 Savings bonds 60.3 63.4 67.3 72.0 74.4 74.9 75.2 21 Other securities 16.9 21.5 24.0 28.8 28.6 28.4 28.5 22 Foreign and international7 55.5 58.4 66.5 78.1 87.9 90.2 91.9 23 Other miscellaneous investors8.. 19.3 23.2 38.6 40.5 36.0 41.5 42.1 1 Includes $1.1 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 Oct. 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 July 1974, the figures exclude positary bonds, retirement plan bonds, and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 3 These nonmarketable bonds, also known as Investment Series B 8 Includes savings and loan associations, nonprofit institutions, cor- Bonds, may be exchanged (or converted) at the owner's option for 1 Vi porate pension trust funds, dealers and brokers, certain Govt, deposit per cent, 5-year marketable Treasury notes. Convertible bonds that have accounts, and Govt.-sponsored agencies. been so exchanged are removed from this category and recorded in the notes category above. NOTE.—Gross public debt excludes guaranteed agency securities and, 4 Nonmarketable foreign government dollar-denominated and foreign beginning in July 1974, includes Federal Financing Bank security issues. currency denominated 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 TTyyppee ooff hhoollddeerr 1975 1976 1975 1976 Aug. Sept. Aug. Sept. All maturities 1 to 5 years 1 All holders 363,191 421,276 438,146 443,508 112,270 141,132 144,790 148,428 19,397 16,485 14,709 14,619 7,058 6,141 5,948 5,931 3 F. R. Banks 87,934 96,971 98,436 102,215 30,518 31,249 28,161 29,178 4 Private investors 255,860 307,820 355,001 326,674 74,694 103,742 110,681 113,319 5 Commercial banks 64,398 78,262 74,227 75,132 29,629 40,005 38,945 39,724 3,300 4,072 4,402 4,422 1,524 2,010 2,136 2,144 7,565 10,284 11,177 11,533 2,359 3,885 4,253 4,282 8 Nonfinancial corporations 9,365 14,193 12,349 11,126 1,967 2,618 2,811 2,518 9 Savings and loan associations 2,793 4,576 5,294 5,179 1,558 2,360 2,764 2,758 10 State and local governments 9,285 12,252 17,219 16,960 1,761 2,543 4,271 4,221 11 All others 159,154 184,182 200,333 202,322 35,894 50,321 55,501 57,672 Total, within 1 year 5 to 10 years 12 All holders 199,692 211,035 216,141 217,917 26,436 43,045 45,879 45,872 13 U.S. Govt, agencies and trust funds 2,769 2,012 1,024 951 3,283 2,879 2,139 2,139 14 F. R. Banks 46,845 51,569 53,185 55,637 6,463 9,148 10,479 10,666 15 Private investors 150,078 157,454 161,932 161,329 16,690 31,018 33,261 33,067 29,875 31,213 27,789 28,109 4,071 6,278 6,607 6,504 983 1,214 1,310 1,334 448 567 641 640 2,024 2,191 1,975 2,116 1,592 2,546 2,952 3,066 7,105 11,009 9,050 7,979 175 370 287 375 914 1,984 2,298 2,198 216 155 147 149 21 State and local governments 5,288 6,622 9,381 9,111 782 1,465 1,256 1,257 22 All others 103,889 103,220 110,129 110,483 9,405 19,637 21,370 21,076 Bills, within 1 year 10 to 20 years 23 All holders 157,483 163,992 154,283 156,091 14,264 11,865 13,037 13,001 24 U.S. Govt, agencies and trust funds 207 449 270 182 4,233 3,102 3,102 3,102 25 F. R. Banks 38,018 41,279 40,440 42,256 1,507 1,363 1,423 1,471 119,258 122,264 113,573 113,654 8,524 7,400 8,512 8,428 17,481 17,303 9,546 10,556 552 339 545 480 554 454 397 438 232 139 151 204 29 Insurance companies 1,513 1,463 964 1,128 1,154 1,114 1,305 1,276 30 Nonfinancial corporations 5,829 9,939 6,962 5,875 61 142 131 131 31 Savings and loan associations 518 1,266 1,148 1,041 82 64 70 58 32 State and local governments 4,566 5,556 7,751 7,481 896 718 842 857 33 All others 88,797 86,282 86,806 87,135 5,546 4,884 5,468 5,431 Other, within 1 year Over 20 years 34 All holders 42,209 47,043 61,858 61,826 10,530 14,200 18,299 18,288 35 U.S. Govt, agencies and trust funds 2,562 1,563 754 769 2,053 2,350 2,495 2,495 36 F. R. Banks 8,827 10,290 12,745 13,381 2,601 3,642 5,188 5,262 30,820 35,190 48,359 47,675 5,876 '8,208 10,616 10,531 12,394 13,910 18,243 17,553 271 427 340 315 429 760 913 896 112 143 164 110 511 728 1,011 987 436 548 692 793 41 Nonfinancial corporations 1,276 1,070 2,088 2,104 57 55 70 123 42 Savings and loan associations 396 718 1,150 1,157 22 13 16 16 722 1,066 1,630 1,630 558 904 1,468 1,513 44 All others 15,092 16,938 23,323 23,348 4,420 6,120 7,865 7,660 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) 440 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 Sept. 30, 1977; (1) 5,492 commercial in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • November 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 July Aug.r Sept. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 1 U.S. Govt, securities 3,579 6,027 10,449 9,078 10,288 9,987 10,417 '9,668 10,418 9,991 1,569 12,686 By maturity: 2 Bills 2,550 3,889 6,676 5,905 6,208 6,391 6,724 6,928 6,298 6,665 6,664 8,041 3 Other within 1 year 250 223 210 194 339 211 169 '212 240 264 234 242 4 1-5 years 465 1,414 2,317 1,790 2,216 2,267 2,266 1,491 2,780 2,048 2,223 2,569 5 5-10 years 256 363 1,019 752 1,079 785 895 686 770 737 2,033 1,470 6 Over 10 years 58 138 229 438 446 334 363 350 330 277 415 363 By type of customer: 7 U.S. Govt, securities dealers 652 885 1,360 962 1,106 1,190 959 1,312 1,409 1,311 1,195 11,,226677 8 U.S. Govt, securities brokers 965 1,750 3,407 3,007 3,439 3,516 4,486 3,171 3,628 3,454 4,673 4,770 9 Commercial banks 998 1,451 2,426 2,124 '2,274 2,017 2,052 '1,794 2,040 2,129 2,096 2,381 10 All others i 964 1,941 3,257 2,986 3,469 3,265 2,920 '3,392 3,340 3,097 3,605 4,268 11 Federal agency securities.... 965 1,043 1,548 1,543 1,863 1,595 1,691 1,633 1,618 1,239 2,384 1,697 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 July Aug. Sept. Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Positions2 1 U.S. Govt, securities 2,580 5,884 7,592 4,724 2,951 5,011 3,514 '3,980 5,734 5,354 5,671 4,056 2 Bills 1,932 4,297 6,290 5,034 3,883 5,323 4,745 4,358 5.475 5,621 6,359 4,318 3 Other within 1 year -6 265 188 -7 -191 13 -255 -230 27 29 -49 48 265 886 515 -291 -661 -378 -848 -185 80 -388 -763 -257 5 5-10 years 302 300 402 -192 -79 -41 -141 -17 48 -6 -18 -124 6 Over 10 years 88 136 198 181 -1 93 13 54 104 98 142 72 7 Federal agency securities.... 1,212 943 729 776 '522 652 '708 '884 642 545 716 710 Sources of financing 3 8 All sources 3,977 6,666 8,715 9,532 8,738 10,424 9,215 9,122 10,692 11,432 11,027 9,109 Commercial banks: 9 New York City 1,032 1,621 1,896 1,289 808 922 869 599 928 1,115 1,342 452 10 Outside New York City... 1,064 1,466 1,660 1,574 1,824 2,365 2,289 '1,890 2,108 2,409 2,876 2,180 11 Corporations1 459 842 1,479 2,307 2,347 2,663 2,557 2,626 3,031 3,189 2,572 2,036 12 All others 1,423 2,738 3,681 4,361 3,759 4,473 3,500 4,007 4,625 4,720 4,237 4,440 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 Mar. Apr. May June July Aug. Federal and Federally sponsored agencies. 71,594 89,381 97,680 103,673 105,579 105,823 107,152 108,243 107,868 2 Federal agencies 11,554 12,719 19,046 22,413 22,462 22,316 22,220 22,232 22,322 3 Defense Department1 1,439 1,312 1,220 1,077 1,068 1,059 1,044 1,035 1,024 4 Export-Import Bank2,3 2,625 2,893 7,188 8,615 8,610 8,596 8,742 8,742 8,742 5 Federal Housing Administration4 415 440 564 592 598 594 588 583 579 6 Government National Mortgage Association participation certificates5 4,390 4,280 4,200 3,845 3,803 3,803 3,803 3,768 3,768 7 Postal Service6 250 721 1,750 2,998 2,998 2,856 2,431 2,431 2,431 8 Tennessee Valley Authority 2,435 3,070 3,915 5,070 5,155 5,175 5,370 5,410 5,490 9 United States Railway Association6 3 209 216 230 233 242 263 288 10 Federally sponsored agencies. 60,040 76,662 78,634 81,260 83,117 84,248 84,932 86,011 85,546 11 Federal home loan banks. 15,362 21,890 18,900 16,626 16,678 16,851 16,921 17,328 17,196 12 Federal Home Loan Mortgage Corporation. 1,784 1,551 1,550 957 957 rl,698 1,698 1,698 1,686 13 Federal National Mortgage Association .... 23,002 28,167 29,963 30,392 30,684 30,843 31,378 31,566 31,301 14 Federal land banks 10,062 12,653 15,000 17,304 18,137 18,137 18,137 18,719 18,719 15 Federal intermediate credit banks 6,932 8,589 9,254 10,670 10,990 11,174 11,418 11,654 11,786 16 Banks for cooperatives 2,695 3,589 3,655 4,899 5,254 5,113 4,948 4,604 4,356 17 Student Loan Marketing Association7 200 220 310 410 415 430 430 440 500 18 Other 3 3 2 2 2 2 2 2 2 MEMO ITEMS : 19 Federal Financing Bank debt6,8 4,474 17,154 31,312 30,823 31,007 30,820 32,443 33,800 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank3 4,595 5,273 5,273 5,273 5,420 5,420 5,420 21 Postal Service6 500 1,500 2,748 2,748 2,606 2,181 2,181 2,181 22 Student Loan Marketing Association7 220 310 410 415 430 430 440 500 23 Tennessee Valley Authority 895 1,840 3,245 3,330 3,350 3,545 3,585 3,665 24 United States Railway Association6 3 209 216 230 233 242 263 288 Other lending:9 25 Farmers Home Administration 2,500 7,000 11,750 11,750 12,250 12,900 13,650 14,465 26 Rural Electrification Administration. 566 1,677 1,806 1,864 2,042 2,105 2,184 27 Other 356 1,134 5,993 5,271 5,001 4,060 4,799 5,097 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 Nonfinancial Statistics • November 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 1 All 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 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. . . . 10^17 10,660 12,845 1,166 1,367 1,612 1,407 1,593 1.994 9 23,508 29,495 32,108 3,084 3,019 3,209 2,939 3,781 4,456 By use of proceeds: 10 4,730 4,689 4,900 489 502 447722 249 497 807 11 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 14 494 445 483 15 12 38 42 130 23 15 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 3,735 5,321 17 Bonds 32,066 42,756 42,262 3,387 1,888 4,300 3,048 2,487 4,286 By type of offering: 18 Public 25,903 32,583 26,453 2,786 1,102 2,610 1,961 1,600 2,045 19 Private placement. 6,160 10,172 15,808 601 786 1,690 1,087 887 2,241 By industry group: 20 Manufacturing 9,867 16,980 13,243 817 568 1,049 1,128 644 1,006 21 Commercial and miscellaneous. 1,845 2,750 4,361 743 346 454 180 112 363 22 Transportation 1,550 3,439 4,357 165 47 243 129 169 25 23 Public utility 8,873 9,658 8,297 634 210 756 602 581 1,237 24 Communication 3,710 3,464 2,787 50 290 808 324 294 371 25 Real estate and financial 6,218 6,469 9,222 979 426 991 684 688 1,284 26 Stocks. 6,247 10,863 11,094 602 820 1,195 591 1,248 1,035 By type: 27 Preferred. 2,253 3,458 2,789 103 128 520 163 212 332 28 Common. 3,994 7,405 8,305 499 692 675 428 1,036 703 By industry group: 29 Manufacturing 544 1.670 2,237 89 175 76 220 8 176 30 Commercial and miscellaneous. 940 1,470 1,183 136 94 114 114 126 437 31 Transportation 22 1 24 125 103 32 Public utility 3,964 6,235 6,101 352 222255 842 117722 1,031 222299 33 Communication 217 1,002 776 226677 1100 4455 34 Real estate and financial 562 488 771 25 6600 38 7755 84 4455 1 Par amounts of long-term issues based on date of sale. than $100,000, secondary offerings, undefined or exempted issues as 2 Only bonds sold pursuant to the 1949 Housing Act, which are secured defined in the Securities Act of 1933, employee stock plans, investment by contract requiring the Housing Assistance Administration to make companies other than closed-end, intracorporate transactions, and sales to annual contributions to the local authority. foreigners. 3 Figures, which represent gross proceeds of issues maturing in more SOURCES.—State and local government securities, Securities Industry than 1 year, sold for cash in the United States, are principal amount or Association; corporate securities, Securities and Exchange Commission. number of units multiplied by offering price. Excludes offerings of less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.48 CORPORATE SECURITIES Net Change in Amounts Outstanding Millions of dollars 1975 1976 SSoouurrccee ooff cchhaannggee,, oorr iinndduussttrryy 11997744 11997755 11997766 Q2 Q3 Q4 Ql Q2 Q3 Q4 All issues1 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 29,399 42,263 40,939 12,390 6,503 10,247 11,356 10,561 8,907 10,115 Bonds and notes 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: 7,404 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 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 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: 17 1,607 2,634 500 412 433 838 11,,112200 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 1,765 398 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 1977 IItteemm 11997755 11997766 Mar. Apr. May June July Aug. Sept. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1 3,302 4,226 463 558 421 639 573 501 558 2 Redemptions of own shares2 3,686 6,802 553 468 531 510 515 493 469 3 Net sales -384 2,496 -90 63 -110 129 58 8 89 4 Assets3 42,179 47,537 44,516 44,862 44,403 46,255 45,651 45,038 45,046 5 Cash position4 3,748 2,747 3,474 2,776 2,859 2,901 3,068 3,135 3,403 6 Other 38,431 44,790 41,042 42,086 41,544 43,354 42,583 41,903 41,643 1 Includes reinvestment of investment income dividends. Excludes 4 Also includes all U.S. Govt, securities and other short-term debt reinvestment of capital gains distributions and share issue of conversions securities. from one fund to another in the same group. 2 Excludes share redemption resulting from conversions from one fund NOTE.—Investment Company Institute data based on reports of memto another in the same group. bers, which comprise substantially all open-end investment companies 3 Market value at end of period, less current liabilities. registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • November 1977 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1975 1976 1977 AAccccoouunntt 11997744 11997755 11997766 Q4 Ql Q2 Q3 Q4 Ql Q2 126.9 123.5 156.9 141.0 153.5 159.2 159.9 154.8 161.7 174.0 2 Profits tax liability 52.4 50.2 64.7 57.9 63.1 66.1 65.9 63.9 64.4 69.7 3 Profits after tax 74.5 73.3 92.2 83.1 90.4 93.1 94.0 90.9 97.3 104.3 4 Dividends 31.0 32.4 35.8 32.5 33.6 35.0 36.0 38.4 38.5 40.3 5 Undistributed profits 43.5 40.9 56.4 50.6 56.8 58.1 58.0 52.5 58.8 64.0 6 Capital consumption allowances 81.6 89.5 97.2 92.2 94.1 95.9 98.2 100.4 102.0 103.5 7 Net cash flow 125.1 130.4 153.6 142.8 150.9 154.0 156.2 152.9 160.8 167.5 SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, end of period 1976 1977 AAccccoouunntt 11997722 11997733 11997744 11997755 Ql Q2 Q3 Q4 Ql Q2 1 574.4 643.2 712.2 731.6 753.5 775.4 791.8 816.8 845.3 874.7 2 Cash 57.5 61.6 62.7 68.1 68.4 70.8 71.1 77.0 75.0 77.9 3 U.S. Govt, securities 10.2 11.0 11.7 19.4 21.7 23.3 23.9 26.4 27.3 24.1 4 Notes and accounts receivable 243.4 269.6 293.2 298.2 310.9 321.8 328.5 328.2 346.6 361.4 5 U.S. Govt.1 3.4 3.5 3.5 3.6 3.6 3.7 4.3 4.3 4.7 4.8 6 Other 240.0 266.1 289.7 294.6 307.3 318.1 324.2 323.9 342.0 356.6 7 215.2 246.7 288.0 285.8 288.8 295.6 302.1 315.4 322.1 332.5 8 Other 48.1 54.4 56.6 60.0 63.6 63.9 66.3 69.8 74.3 78.8 9 Current liabilities 352.2 401.0 450.6 457.5 465.9 475.9 484.1 499.9 516.6 532.0 10 Notes and accounts payable 234.4 265.9 292.7 288.0 286.9 293.8 291.7 302.9 309.0 318.9 11 U.S. Govt.1 4.0 4.3 5.2 6.4 6.4 6.8 7.0 7.0 6.8 5.7 12 Other 230.4 261.6 287.5 281.6 280.5 287.0 284.7 295.9 302.2 313.2 13 Accrued Federal income taxes 15.1 18.1 23.2 20.7 23.9 22.0 24.9 26.8 28.6 24.5 14 Other 102.6 117.0 134.8 148.8 155.0 160.1 167.5 170.2 179.0 188.6 15 Net working capital 222.2 242.3 261.5 274.1 287.6 299.5 307.7 316.9 328.7 342.8 1 Receivables from, and payables to, the U.S. Govt, exclude amounts SOURCE.—Estimates published in Statistical Bulletin (Securities and offset against each other on corporations' books. Exchange Commission). 1.52 BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1975 1976 1977 IInndduussttrryy 11997766 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 2 Q4 2 1 120.82 111.80 114.72 118.12 122.55 125.22 130.16 134.24 138.43 142.02 Manufacturing 2 Durable goods industries 23.50 21.07 21.63 22.54 24.59 25.50 26.30 27.26 27.96 29.74 3 Nondurable goods industries 29.22 25.75 27.58 28.09 30.20 28.93 30.13 32.19 33.40 34.58 Nonmanufacturing 4 Mining 3.98 3.82 3.83 3.83 4.21 4.13 4.24 4.49 4.52 4.54 Transportation: 5 Railroad 2.35 2.39 2.08 2.64 2.69 2.63 2.71 2.57 2.74 3.19 6 Air 1.31 1.65 1.18 1.44 1.12 1.41 1.62 1.43 1.84 2.05 7 Other 3.56 3.56 3.29 4.16 3.44 3.49 2.96 2.96 2.18 1.72 Public utilities: 8 Electric 18.90 17.92 18.56 18.82 18.22 19.49 21.19 21.14 22.24 22.72 9 Gas and other 3.47 3.00 3.36 3.03 3.45 3.96 4.16 4.16 4.47 4.78 1 1 0 1 C C o om m m m e u r n c i i c a a l ti a o n n d other1 2 1 0 2 . . 8 9 7 3 2 1 0 2 . . 4 2 4 2 2 1 0 2 . . 6 5 8 4 2 1 0 2 . . 9 6 4 2 2 1 0 3 . . 9 6 9 4 2 1 1 4 . . 3 3 6 0 2 1 2 4 . . 6 1 7 9 2 1 2 5 . . 7 3 3 2 \/ o3n9 .0n8o Jo. 70 1 Includes trade, service, construction, finance, and insurance. agriculture; real estate operators; medical, legal, educational, and cultural service; and nonprofit organizations. NOTE.—Estimates for corporate and noncorporate business, excluding SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). 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 1976 1977 AAccccoouunntt 11997722 11997733 11997744 11997755 Q2 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 31.9 35.4 36.1 36.0 36.7 37.6 38.6 39.2 40.7 42.3 2 Business 27.4 32.3 37.2 39.3 42.4 42.4 44.7 47.5 50.4 50.6 3 Total 59.3 67.7 73.3 75.3 79.2 80.0 83.4 86.7 91.2 92.9 4 LESS: Reserves for unearned income and losses 7.4 8.4 9.0 9.4 9.8 10.2 10.5 10.6 11 1 11.7 5 Accounts receivable, net 51.9 59.3 64.2 65.9 69.4 69.9 72.9 76.1 8o!l 81.2 6 Cash and bank deposits 2.8 2.6 3.0 2.9 2.7 2.6 2.6 2.7 2.5 2.5 7 Securities .9 .8 .4 1.0 .8 1.2 1.1 1.0 1.2 1.8 8 Allother 10.0 10.6 12.0 11.8 12.4 12.7 12.6 13.0 13.7 14.2 9 Total assets 65.6 73.2 79.6 81.6 85.3 86.4 89.2 92.8 97.5 99.6 LIABILITIES 10 Bank loans 5.6 7.2 9.7 8.0 6.9 5.5 6.3 6.1 5.7 5.4 11 Commercial paper T 17.3 19.7 20.7 22.2 22.2 21.7 23.7 24.8 27.5 25.7 Debt: 12 Short-term, n.e.c 4.3 4.6 4.9 4.5 5.0 5.2 5.4 4.5 5.5 5.4 13 Long-term, n.e.c 22.7 24.6 26.5 27.6 30.1 31.0 32.3 34.0 35.0 34.8 14 Other 4.8 5.6 5.5 6.8 7.8 9.5 8.1 9.5 9.4 13.7 15 Capital, surplus, and undivided profits 10.9 11.5 12.4 12.5 13.2 13.4 13.4 13.9 14.4 14.6 16 Total liabilities and capital 65.6 73.2 79.6 81.6 85.3 86.4 89.2 92.8 97.5 99.6 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 outstanding Sept. 30, 1977 1977 1977 19771 July Aug. Sept. July Aug. Sept. July Aug. Sept. 1 Total 50,577 1,103 1,968 -240 12,152 13,218 11,702 11,049 11,250 11,942 2 Retail automotive (commercial vehicles) 11,257 296 269 239 1,030 1,022 1,004 734 753 765 3 Wholesale automotive 9,399 686 1,187 -960 5,493 6,321 4,233 4,807 5,134 5,193 4 Retail paper on business, industrial, and farm equipment 13,434 197 296 369 788 805 1,097 591 509 728 5 Loans on commercial accounts receivable... 3,960 28 -2 19 2,301 2,270 2,499 2,273 2,272 2,480 6 Factored commercial accounts receivable.... 2,274 -120 17 -58 1,261 1,429 1,477 1,381 1,412 1,535 7 All other business credit 10,253 16 201 151 1,279 1,371 1,392 1,263 1,170 1,241 1 Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic NonfinancialS tatistics • November 1977 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1977 Item 1974 1975 1976 Apr. May June July Aug. Sept. 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 53.4 52.8 53. 1 53.7 r54.9 55.9 2 Amount of loan (thous. dollars) 29.8 33.3 35.9 39.6 39.9 39.5 40.0 r40. 8 41.5 3 Loan/price ratio (per cent) 74.3 74.7 74.2 75.5 77.4 76.0 76.2 76.5 76.1 4 Maturity (years) 26.3 26.8 27.2 27.3 27.9 27.2 27.9 28.2 28.2 5 Fees and charges (per cent of loan amount)2. 1.30 1.54 1.44 1.30 1.34 1.25 1.31 rl. 30 1.34 6 Contract rate (per cent per annum) 8.71 8.75 8.76 8.73 8.74 8.78 8.79 8.81 8.82 Yield (per cent per annum): 7 FHLBB series3 8.92 9.01 8.99 8.94 8.96 8.98 9.00 9.02 9.04 8 HUD series4 9.22 9.10 8.99 8.90 8.95 9.00 9.00 9.00 9.00 SECONDARY MARKETS Yields (per cent per annum) on— 9 FHA mortgages (HUD series)5 9.55 9.19 8.82 8.57 8.74 8.74 8.74 8.72 10 GNMA securities6 8.72 8.52 8.17 7.96 8.04 7.95 7.95 8.03 8.03 FNMA auctions:7 11 Government-underwritten loans 9.31 9.26 8.99 8.67 8.74 8.75 8.72 8.76 8.74 12 Conventional loans 9.43 9.37 9.11 8.97 9.08 9.12 9.07 9.06 9.05 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 29,578 31,824 32,904 32,938 33,580 33,918 33,954 34,029 34,149 14 FHA-insured 19,189 19,732 18,916 18,745 18,939 18,974 18,887 18,785 18,704 15 VA-guaranteed 8,310 9,573 9,212 9,125 9,399 9,509 9,449 9,388 9,344 16 Conventional 2,080 2,519 4,776 5,069 5,241 5,435 5,618 5,866 6,100 Mortgage transactions (during period) 17 Purchases 6,953 4,263 3,606 391 947 656 322 405 385 1188 Sales 4 2 8866 7 Mortgage commitments:8 19 Contracted (during period) 10,765 6,106 6,247 716 1,452 999 357 531 364 20 Outstanding (end of period) 7,960 4,126 3,398 5,411 5,773 5,854 5,062 4,717 3,522 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9 5,462.6 7,042.6 4,929.8 456.1 1,842.8 278.9 206.4 314.9 112.9 22 Accepted 2,371.4 33,,884488..33 2,787.2 269.8 1,027.4 127.8 131.4 221.4 75.4 Conventional loans: 23 Offered 9 1,195.4 1,401.3 2,595.7 348.1 1,164.6 371.1 286.8 370.2 246.4 24 656.5 765.0 1,879.2 280.7 751.7 263.0 184.4 236.7 184.4 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total 4,586 4,987 44,,226699 33,,335555 3,285 3,389 3,483 3,424 3,376 26 FHA/VA 1.904 1,824 1,618 1,542 1,523 1,502 1,481 1,463 1,443 27 Conventional 2,682 3,163 2,651 1,813 1,763 1,887 2,001 1,961 1,933 Mortgage transactions (during period) 28 Purchases 2,191 1,716 11,,117755 223355 310 379 236 '455 479 29 Sales 52 1,020 1,396 388 329 336 79 r479 386 Mortgage commitments:11 30 Contracted (during period) 4,553 982 1,477 606 525 511 511 567 547 31 Outstanding (end of period) 2,390 111 333 1,112 1,314 1,293 1,350 1,352 1,353 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. 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 Q4 QL Q2 Q3 1 All holders 603,417 682,321 742,512 801,537 '889,062 '912,528 947,196 983,565 2 1- to 4-family 372,154 416,211 449,371 490,761 '556,344 '572,709 599,219 626,333 3 Multifamily 82,840 93,132 99,976 100,601 '104,269 '105,586 105,902 107,850 4 Commercial 112,665 131,725 146,877 159,298 '171,399 '174,937 180,260 185,526 5 Farm 35,758 41,253 46,288 50,877 '57,050 '59,296 61,815 63,856 6 Major financial institutions 450,000 505,400 542,560 581,193 r647,650 r662,390 688,798 715,168 7 Commercial banks1 99.314 119,068 132,105 136,186 ' 151,326 '154,628 161,128 168,528 8 1- to 4-family 57,004 67,998 74,758 77,018 '86,234 '88,116 91,820 96,039 9 Multifamily 5,778 6,932 7,619 5,915 '8,082 '8,258 8,605 9,000 10 Commercial 31,751 38,696 43,679 46,882 '50,289 '51,388 53,548 56,008 11 Farm 4,781 5,442 6,049 6,371 '6,721 '6,866 7,155 7,481 12 Mutual savings banks 67,556 73,230 74,920 77,249 ' 81,639 82,273 84,051 86,103 13 1- to 4-family 46,229 48,811 49,213 50,025 '53,089 '53,502 54,658 55,993 14 Multifamily 10,910 12,343 12,923 13,792 '14,177 '14,291 14,600 14,956 15 Commercial 10,355 12,012 12,722 13,373 '14,313 '14,422 14,734 15,094 16 Farm 62 64 62 59 '60 58 59 60 17 Savings and loan associations 206,182 231,733 249,301 278,590 323,130 333,703 350,765 366,975 18 1- to 4-family 166,410 187,078 200,987 223,903 260,895 '269,932 284,541 298,122 19 Multifamily 21,051 22,779 23,808 25,547 28,436 '29,199 30,517 31,863 20 Commercial 18,721 21,876 24,506 29,140 33,799 '34,572 35,707 36,990 21 Life insurance companies 76,948 81.369 86,234 89,168 91,555 91,786 92,854 93,562 22 1-to 4-family 22.315 20,426 19,026 17,590 16,088 15,699 15,418 15,533 23 Multifamily 17,347 18,451 19,625 19,629 19,178 18,921 18,891 19,033 24 Commercial 31,608 36,496 41,256 45,196 48,864 49,526 50,405 50,790 25 Farm 5,678 5,996 6,327 6,753 7,425 7,640 8,140 8,206 26 Federal and related agencies 40,157 46,721 58,320 66,891 66,753 '67,066 68,301 69,135 27 Government National Mortgage Assn. 5,113 4,029 4,846 7,438 4,241 4,013 3,912 3,599 28 1- to 4-family 2,513 1,455 2,248 4,728 1,970 1,670 1,654 1,522 29 Multifamily 2,600 2,574 2,598 2,710 2,271 2,343 2,258 2,077 30 Farmers Home Admin 1,019 1,366 1,432 1,109 1,064 500 1,043 1,342 31 1- to 4-family 279 743 759 208 454 98 410 528 32 Multifamily 29 29 167 215 218 28 97 125 33 Commercial 320 218 156 190 72 64 126 162 34 Farm 391 376 350 496 320 310 410 527 35 Federal Housing and Veterans Admin. 3,338 3,476 4,0/5 4,970 5,150 '5,225 5,222 5,100 36 1- to 4-family 2,199 2,013 2,009 1,990 1,676 '1,730 1,701 1,552 37 Multifamily 1,139 1,463 2,006 2,980 3,474 '3,493 3,521 3,548 38 Federal National Mortgage Assn... . 19,791 24,175 29,578 31,824 32,904 '33,831 33,918 34,148 39 1- to 4-family 17,697 20.370 23,778 25,813 26,934 26,836 27,933 28,178 40 Multifamily 2,094 3,805 5,800 6,011 5,970 6,995 5,985 5,970 41 Federal land banks 9,107 11,071 13,863 16,563 19,125 19,942 20,818 21,523 42 1- to 4-family 13 123 406 549 601 611 628 649 43 Farm 9,094 10,948 13,457 16,014 18,524 19,331 20,190 20,874 44 Federal Home Loan Mortgage Corp., 1,789 2,604 4,586 4,987 4,269 3,557 3,388 3,423 45 1- to 4-family 1,754 2,446 4,217 4,588 3,889 3,200 2,901 2,931 46 Multifamily 35 158 369 399 380 357 487 492 47 Mortgage pools or trusts2 14,404 18,040 23,799 34,138 49,801 '55,462 58,748 64,398 48 Government National Mortgage Assn. 5,504 7,890 11,769 18,257 30,572 34,260 36,573 41,089 49 1- to 4-family 5,353 7,561 11,249 17,538 29,583 33,190 35,467 39,865 50 Multifamily 151 329 520 719 989 1,070 1,106 1.224 51 Federal Home Loan Mortgage Corp. 441 766 757 1,598 2,671 3,570 4,460 5,294 52 1-to 4-family 331 617 608 1,349 2,282 3,112 3,938 4,675 53 Multifamily 110 149 149 249 389 458 522 619 54 Farmers Home Admin 8,459 9,384 11,273 14,283 16,558 ' 17,63 2 17, 715 18,015 55 1- to 4-family 5,017 5,458 6,782 9,194 10,219 '10,821 10,814 10,996 56 Multifamily 131 138 116 295 532 '786 111 791 57 Commercial 867 1 ,124 1,473 1,948 2,440 '2,570 2,680 2,726 58 Farm 2,444 2,664 2,902 2,846 3,367 '3,455 3,444 3,502 59 Individuals and others3 98,856 112,160 117,833 119,315 124,858 127,610 131,349 134,864 60 1- to 4-family 45,040 51 ,112 53,331 56,268 62,430 64,192 67,336 69,750 61 Multifamily 21,465 23,982 24,276 22,140 20,173 19,387 18,536 18,152 62 Commercial 19,043 21,303 23,085 22,569 21,622 22,395 23,060 23,756 63 Farm 13,308 15,763 17,141 18,338 20,633 21,636 22,417 23,206 1 Includes loans held by nondeposit trust companies but not bank trust NOTE.—Based on data from various institutional and Govt, sources, departments. with some quarters estimated in part by Federal Reserve in conjunction 2 Outstanding principal balances of mortgages backing securities in- with the Federal Home Loan Bank Board and the Dept. of Commerce. sured or guaranteed by the agency indicated. Separation of nonfarm mortgage debt by type of property, if not re- 3 Other holders include mortgage companies, real estate investment ported directly, and interpolations and extrapolations where required, are trusts, State and local credit agencies, State and local retirement funds, estimated mainly by Federal Reserve. Multifamily debt refers to loans on noninsured pension funds, credit unions, and U.S. agencies for which structures of 5 or more units. amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • November 1977 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1977 Holder, and type of credit 1974 1975 1976 Mar.r Apr.r May r June r July r Aug.r Sept. Amounts outstanding (end of period) 1 Total 157,454 164,955 185,489 186,776 189,720 192,828 196,998 199,971 204,358 207,294 By holder: 2 Commercial banks 75,846 78,667 89,511 90,585 92,377 93,875 96,149 97,794 100,059 101,564 3 Finance companies 36,087 35,994 38,639 39,188 39,561 40,127 40,712 41,398 41,987 42,333 4 Credit unions 21,895 25,666 30,546 31,448 31,912 32,704 33,750 34,122 35,077 35,779 5 Retailers1 17,933 18,002 19,052 17,585 17,734 17,911 18,032 18,137 18,475 18,725 6 Others2 5,693 6,626 7,741 7,971 8,136 8,211 8,355 8,520 8,760 8,894 By type of credit: 7 Automobile 52,871 55,879 66,116 67,850 69,298 70,857 72,829 74,304 76,027 77,207 8 Commercial banks 30,994 31,553 37,984 39,133 40,175 41,060 42,307 43,211 44,262 44,933 9 Indirect 18,687 18,353 21,176 21,658 22,189 22,606 23,258 23,735 24,277 24,717 10 Direct 12,306 13,200 16,808 17,476 17,986 18,453 19,050 19,476 19,985 20,216 11 Finance companies 10,623 11,155 12,489 12,593 12,757 13,023 13,219 13,597 13,783 13,930 12 Credit unions 10,869 12,741 15,163 15,611 15,841 16,234 16,754 16,938 17,412 17,761 13 Others 386 430 480 513 525 540 549 558 570 584 14 Mobile homes 14,618 14,423 14,572 14,447 14,521 14,540 14,627 14,713 14,812 14,880 15 Commercial banks 8,972 8,649 8,734 8,609 8,648 8,680 8,722 8,761 8,794 8,828 16 Finance companies 3,525 3,451 3,273 3,190 3,170 3,149 3,136 3,126 3,114 3,119 17 Home improvement 8,522 9,405 10,990 11,122 11,315 11,507 11,794 12,025 12,329 12,532 18 Commercial banks 4,694 4,965 5,554 5,534 5,626 5,744 5,889 6,022 6,158 6,265 Revolving credit: 19 Bank credit cards 8,281 9,501 11,351 11,020 11,215 11,287 11,563 11,754 12,227 12,651 20 Bank check credit 2,797 2,810 3,041 3,075 3,094 3,148 3,230 3,295 3,409 3,504 21 Allother 70,364 72,937 79,418 79,263 80,277 81,488 82,955 83,880 85,554 86,519 22 Commercial banks, total, 20,108 21,188 22,847 23,214 23,619 23,955 24,437 24,752 25,209 25,383 23 Personal loans 13,771 14,629 15,669 16,002 16,263 16,464 16,749 16,922 17,238 17,373 24 Finance companies, total 21,590 21,238 22,749 23,277 23,506 23,827 24,223 24,538 24,951 25,143 25 Personal loans 16,985 17,263 18,554 18,751 18,938 19,214 19,540 19,808 20,118 20,256 26 Credit unions 9,174 10,754 12,799 13,177 13,371 13,703 14,141 14,297 14,697 14,991 27 Retailers 17,933 18,002 19,052 17,585 17,734 17,911 18,032 18,137 18,475 18,725 28 Others 1,559 1,755 1,971 2,011 2,047 2,092 2,121 2,157 2,221 2,277 Net change (during period) 3 29 Total 9,280 7,504 20,533 2,971 2,898 2,655 2,422 2,464 2,651 2,351 By holder: 30 Commercial banks 3,975 2,821 10,845 1,562 1,462 1,235 1,422 1,150 1,448 1,228 31 Finance companies 731 -90 2,644 583 391 460 182 524 321 378 32 Credit unions 2,262 3,771 4,880 611 634 665 519 368 472 458 33 Retailers i 1,538 69 1,050 113 223 210 144 286 170 144 34 Others 2 774 933 1,115 102 187 84 154 136 240 143 By type of credit: 35 Automobile 500 3,007 10,238 1,383 1,205 1,247 963 1,069 1,054 1,105 36 Commercial banks -508 559 6,431 848 747 620 145 584 125 714 37 Indirect -310 -334 2,823 429 382 273 365 290 351 466 38 Direct -198 894 3,608 419 364 347 380 294 368 248 39 Finance companies -116 532 1,334 242 134 258 -28 275 65 128 4 4 0 1 C O r t e h d er it unions 1,123 2 1,87 4 2 4 2,42 5 2 0 2 - 9 1 4 29 2 7 7 35 1 2 7 244 2 208 2 23 2 7 7 22 3 8 4 42 Mobile homes 1,068 -195 150 54 65 -6 34 57 55 32 43 Commercial banks 632 -323 85 15 24 12 3 19 3 10 44 Finance companies 166 -73 -177 -14 -24 -21 -12 -18 -3 45 Home improvement 1,094 881 1,585 169 188 133 181 165 183 143 46 Commercial banks 611 271 588 80 12 66 75 76 62 11 Revolving credit: 47 Bank credit cards 1,443 1,220 1,850 263 278 192 238 184 315 279 48 Bank check credit 543 14 231 53 60 103 90 39 60 49 49 Allother 4,631 2,577 6,479 1,049 1,101 985 916 951 984 743 50 Commercial banks, total. 1,255 1,080 1,659 302 281 242 271 248 283 99 51 Personal loans 898 858 1,040 223 206 110 180 143 161 56 52 Finance companies, total, 746 -348 1,509 340 271 221 226 260 213 251 53 Personal loans 486 279 1,290 279 220 184 185 228 186 223 54 Credit unions 948 1,580 2,045 264 283 258 239 129 200 191 55 Retailers 1,538 69 1,050 113 223 210 144 286 170 144 56 Others 145 196 217 29 43 48 36 28 59 52 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 1977 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 1974 1975 1976 Mar.r Apr. r Mayr June7" July r Aug. r Sept. Extensions3 1 Total 157,200 164,169 193,328 18,496 18,784 18,503 18,810 18,631 19,204 19,164 By holder: 2 Commercial banks 72,605 77,312 94,220 9,072 9,182 9,070 9,232 9,143 9,426 9,442 3 Finance companies 34,061 31,173 36,028 3,526 3,444 3,359 3,444 3,335 3,459 3,514 4 Credit unions 19,596 24,096 28,587 2,787 2,861 2,860 2,769 2,663 2,806 2,773 5 Retailers1 27,034 27,049 29,188 2,615 2,721 2,728 2,806 2,951 2,840 2,860 6 Others2 3,904 4,539 5,305 496 576 485 559 540 673 575 By type of credit: 7 Automobile 45,429 51,413 62,988 6,199 6,106 6,048 6,063 5,966 6,158 6,109 8 Commercial banks 26,406 28,573 36,585 3,627 3,532 3,416 3,527 3,553 3,616 3,640 9 Indirect 15,576 15,766 19,882 1,959 1,888 1,791 1,865 1,905 1,925 2,028 10 Direct 10,830 12,807 16,704 1,669 1,644 1,625 1,661 1,649 1,692 1,612 11 Finance companies 8,604 9,674 11,209 1,111 1,073 1,114 1,099 963 1,036 1,013 12 Credit unions 10,015 12,683 14,675 1,418 1,431 1,457 1,390 1,402 1,434 1,376 13 Others 404 483 518 43 70 60 47 48 72 80 14 Mobile homes 5,782 4,323 4,841 445 479 415 420 455 479 424 15 Commercial banks 3,486 2,622 3,071 267 285 275 244 267 267 261 16 Finance companies 1,376 764 690 56 58 50 48 55 55 51 17 Home improvement 5,211 5,556 6,736 648 668 636 686 671 733 679 18 Commercial banks 2,789 2,722 3,245 319 317 317 328 330 332 340 Revolving credit: 19 Bank credit cards 17,098 20,428 25,862 2,406 2,576 2,621 2,640 2,566 2,711 2,847 20 Bank check credit 4,227 4,024 4,783 475 475 506 521 499 510 485 21 All other 79,453 78,425 88,117 8,323 8,480 8,277 8,480 8,476 8,612 8,620 22 Commercial banks, total. 18,599 18,944 20,673 1,977 1,998 1,935 1,973 1,928 1,990 1,870 23 Personal loans 13,176 13,386 14,480 1,418 1,435 1,396 1,413 1,350 1,404 1,346 24 Finance companies, total, 23,796 20,657 24,087 2,352 2,307 2,188 2,289 2,309 2,361 2,440 25 Personal loans 17,162 16,944 19,579 1,861 1,833 1,744 1,850 1,836 1,870 1,938 26 Credit unions 8,560 10,134 12,340 1,207 1,266 1,233 1,225 1,113 1,207 1,240 27 Retailers 27,034 27,049 29,188 2,615 2,721 2,728 2,806 2,951 2,840 2,860 28 Others 1,463 1,642 1,830 171 189 193 187 175 214 211 Liquidations3 29 Total 147,920 156,665 172,795 15,525 15,886 15,849 16,388 16,167 16,553 16,814 By holder: 30 Commercial banks 68,630 74,491 83,376 7,510 7,720 7,835 7,810 7,992 7,978 8,214 31 Finance companies 33,330 31,263 33,384 2,943 3,053 2,899 3,261 2,811 3,138 3,135 32 Credit unions 17,334 20,325 23,707 2,177 2,227 2,195 2,250 2,295 2,333 2,316 33 Retailers i 25,496 26,980 28,138 2,502 2,497 2,518 2,662 2,665 2,670 2,716 34 Others2 3,130 3,606 4,191 394 389 401 405 404 433 432 By type of credit: 35 Automobile 44,929 48,406 52,750 4,816 4,901 4,801 5,100 4,897 5,104 5,005 36 Commercial banks 26,915 28,014 30,154 2,779 2,786 2,796 2,781 2,969 2,891 2,926 37 Indirect 15,886 16,101 17,059 1,529 1,506 1,518 1,500 1,615 1,568 1,562 38 Direct 11,029 11,913 13,095 1,250 1,279 1,278 1,281 1,354 1,324 1,364 39 Finance companies 8,720 9,142 9,875 869 939 856 1,127 688 970 885 40 Credit unions 8,892 10,811 12,253 1,125 1,134 1,106 1,146 1,194 1,197 1,148 41 Others 402 439 468 44 43 43 45 46 45 46 42 Mobile homes 4,715 4,517 4,691 391 414 421 386 397 424 392 43 Commercial banks 2,854 2,944 2,986 252 261 263 241 248 264 251 44 Finance companies 1,210 837 867 57 72 74 68 68 73 54 45 Home improvement 4,117 4,675 5,151 480 480 502 505 506 551 536 46 Commercial banks 2,178 2,451 2,657 239 245 251 253 254 270 263 Revolving credit: 47 Bank credit cards 15,655 19,208 24,012 2,142 2,298 2,430 2,403 2,382 2,396 2,567 48 Bank check credit 3,684 4,010 4,552 422 415 402 431 459 450 436 49 All other 74,821 75,849 81,638 7,274 7,379 7,292 7,564 7,525 7,628 7,877 50 Commercial banks, total, 17,345 17,864 19,014 1,675 1,716 1,692 1,702 1,680 1,707 1,771 51 Personal loans 12,278 12,528 13,439 1,196 1,230 1,226 1,233 1,207 1,243 1,291 52 Finance companies, total 23,050 21,005 22,578 2,012 2,036 1,961 2,063 2,049 2,089 2,189 53 Personal loans 16,676 16,665 18,289 1,583 1,613 1,560 1,666 1,609 1,684 1,714 54 Credit unions 7,613 8,554 10,295 943 984 975 986 984 1,008 1,043 55 Retailers 25,496 26,980 28,138 2,502 2,497 2,518 2,662 2,665 2,670 2,716 56 Others 1,318 1,446 1,613 142 146 146 151 146 155 158 1 Excludes 30-day charge credit held by retailers, oil and gas companies, Mutual savings banks, savings and loan associations, and auto dealers. and travel and entertainment companies. 3 Monthly figures are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • November 1977 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-year data are at seasonally adjusted annual rates. 1975 1976 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1971 1972 1973 1974 1975 1976 HI H2 HI H2 Nonfinancial sectors 1 Total funds raised 153.5 177.8 202.0 189.6 205.6 268.3 180.8 230.4 254.5 282.1 1 2 142.1 167.2 194.3 185.8 195.5 257.8 170.3 220.8 241.1 274.4 2 By sector and instrument: 3 U.S. Govt 24.9 15.1 8.3 11.8 85.4 69.0 79.6 91.2 73.1 64.9 3 4 Public debt securities 26.0 14.3 7.9 12.0 85.8 69.1 80.4 91.3 73.0 65.3 4 5 Agency issues and mortgages -1.1 .8 .4 -.2 -.4 —. 1 -.8 -.1 . 1 -.3 5 6 All other nonfinancial sectors 128.6 162.7 193.8 177.8 120.2 199.2 101.1 139.2 181.4 217.1 6 7 Corporate equities 11.5 10.5 7.7 3.8 10.0 10.5 10.5 9.6 13.3 7.6 7 8 Debt instruments 117.2 152.2 186.1 174.0 110.1 188.8 90.7 129.6 168.0 209.5 8 9 Private domestic nonfinancial sectors 123.5 158.7 187.5 162.4 107.0 179.0 93.1 120.9 166.2 191.7 9 10 11.4 10.9 7.9 4.1 9.9 10.5 10.3 9.5 13.3 7.7 10 11 Debt instruments 112.0 147.8 179.7 158.3 97.1 168.4 82.8 111.4 152.9 184.0 11 12 Debt capital instruments 86.8 102.3 105.0 98.7 95.8 122.7 93.8 97.8 111.7 133.7 12 13 State and local obligations 17.4 14.7 14.7 17.1 13.6 15.1 12.3 14.9 14.7 15.5 13 14 18.8 12.2 9.2 19.7 27.2 22.8 32.6 21.8 19.8 25.8 14 Mortgages: 15 28.6 42.6 46.4 34.8 39.5 63.6 33.4 45.6 57.1 70.2 15 16 Multifamily residential 9.7 12.7 10.4 6.9 * 1.6 .4 -.4 .6 2.6 16 17 Commercial 9.8 16.5 18.9 15.1 11.0 13.4 9.4 12.6 13.9 12.9 17 18 Farm 2.4 3.6 5.5 5.0 4.6 6.1 5.1 4.0 5.0 7.3 18 19 Other debt instruments 25.3 45.5 74.6 59.6 1.3 45.7 -11.0 13.6 41.2 50.3 19 20 13.1 18.9 22.0 10.2 9.4 23.6 2.2 16.6 22.9 24.2 20 21 Bank loans n.e.c 8.1 18.9 39.8 29.1 -14.5 3.7 -20.9 -8.2 -.3 7.8 21 22 Open market paper -.4 .8 2.5 6.6 -2.6 4.0 -1.4 -3.8 6.4 1.6 22 23 Other 4.4 6.9 10.3 13.7 9.0 14.4 9.0 9.0 12.2 16.7 23 24 By borrowing sector 123.5 158.7 187.5 162.4 107.0 179.0 93.1 120.9 166.2 191.7 24 25 State and local governments 17.7 14.5 13.2 16.2 11.2 14.6 10.0 12.3 13.0 16.3 25 26 Households 45.2 66.6 79.0 49.2 48.6 89.8 37.3 59.9 83.9 95.6 26 27 Farm 4.5 5.8 9.7 7.9 8.7 11.0 8.7 8.8 10.6 11.6 27 28 Nonfarm noncorporate 11.6 14.1 12.9 7.4 2.0 5.2 -1.1 5.1 2.7 7.6 28 29 Corporate 44.5 57.7 72.7 81.8 36.6 58.3 38.3 34.8 56.1 60.5 29 30 Foreign 5.2 4.0 6.2 15.4 13.2 20.3 8.0 18.3 15.2 25.4 30 31 Corporate equities * -.4 -.2 -.2 .1 * .1 .1 * -.1 31 32 5.2 4.4 6.4 15.7 13.0 20.3 7.9 18.2 15.1 25.5 32 33 .9 1.0 1.0 2.1 6.2 8.4 5.7 6.8 7.3 9.5 33 34 Bank loans n.e.c 2.1 3.0 2.8 4.7 3.7 6.7 -.4 7.8 3.4 10.0 34 35 Open market paper .3 -1.0 .9 7.3 .3 1.9 -.8 1.4 1.5 2.4 35 36 U.S. Govt, loans 1.8 1.5 1.7 1.6 2.8 3.3 3.4 2.2 2.9 3.6 36 Financial sectors 37 Total funds raised 15.4 28.3 51.6 39.4 14.0 28.6 15.1 12.8 27.8 29.4 37 By instrument: 38 U.S. Govt, related 5.9 8.4 19.9 23.1 13.5 18.6 14.5 12.6 18.6 1188..66 3388 39 Sponsored credit agency securities 1.1 3.5 16.3 16.6 2.3 3.3 1.9 2.8 4.5 2.1 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 .7 .9 -.4 .6 * -.7 41 42 9.5 19.9 31.7 16.3 .4 10.0 '.6 .2 9.1 10.8 42 43 Corporate equities 3.5 2.8 1.5 .3 * .7 -.1 -.7 2.2 43 44 Debt instruments 6.0 17.1 30.2 16.0 .4 9.2 .3 9.8 8.6 44 ''..66 45 Corporate bonds 3.8 5.1 3.5 2.1 2.9 5.8 2.3 3.5 7.0 4.5 45 46 Mortgages 2.1 1.7 -1.2 -1.3 2.3 2.1 1.4 3.2 1.4 2.8 46 47 Bank loans n.e.c 1.9 5.9 8.9 4.6 -3.6 -3.7 -4.7 -2.5 -3.0 -4.4 47 48 Open market paper and Rp's .9 4.4 11.8 3.9 2.8 7.1 8.2 -2.6 6.1 8.1 48 49 Loans from FHLB's -2.7 * 7.2 6.7 -4.0 -2.0 -6.6 -1.3 -1.6 -2.4 49 By sector: 50 Sponsored credit agencies 11..11 3.5 1166..33 1177..33 3.2 2.9 3.0 3.4 4.5 1.4 50 51 Mortgage pools 44..88 4.9 3.6 5.8 10.3 15.7 11.5 9.2 14.2 17.2 51 52 Private financial sectors 9.5 19.9 31.7 16.3 .4 10.0 .6 .2 9.1 10.8 52 53 2.4 4.8 8.1 — 1.1 1.7 7.4 5.7 -2.3 9.0 5.9 53 54 -.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 -2.2 * -6.8 2.3 .5 -.5 56 57 Other insurance companies .6 .5 .5 .9 1.0 1.0 .9 1.0 1.0 1.0 57 58 Finance companies 2.7 6.2 9.4 4.5 .5 6.4 -1.4 2.4 5.7 7.1 58 59 REIT's 2.9 6.3 6.5 .6 -2.0 -2.8 -2.0 -1.9 -2.5 -3.0 59 60 Open-end investment companies 1.3 -.5 -1.2 -.7 —. 1 -1.0 .7 -.9 -2.5 .5 60 6611 22..44 1.3 -.3 22..66 * --..77 ..22 6611 All sectors 62 Total funds raised, by instrument 168.9 206.1 253.7 229.0 219.5 296.8 195.9 243.2 282.2 311.4 62 63 1.3 -.5 -1.2 -.7 -.1 -1.0 .7 -.9 -2.5 .5 63 64 Other corporate equities 13.7 13.8 10.4 4.8 10.2 12.2 9.8 10.5 15.1 9.3 64 65 Debt instruments 154.0 192.8 244.5 224.9 209.5 285.6 185.4 233.6 269.6 301.6 65 66 30.9 23.6 28.3 34.3 98.2 88.1 93.1 103.2 91.9 84.3 66 67 State and local obligations 17.4 14.7 14.7 17.1 13.6 15.1 12.3 14.9 14.7 15.5 67 68 Corporate and foreign bonds 23.5 18.4 13.6 23.9 36.3 37.0 41.3 31.3 34.7 39.3 68 69 Mortgages 52.6 77.0 79.9 60.5 57.2 86.8 49.5 65.0 77.9 95.7 69 70 13.1 18.9 22.0 10.2 9.4 23.6 2.2 16.6 22.9 24.2 70 71 12.1 27.8 51.6 38.4 -14.4 6.7 -25.9 -2.9 13.4 71 72 Open market paper and Rp's .8 4.1 15.2 17.8 .5 13.0 6.1 -5.0 1144..00 12.0 72 73 3.5 8.4 19.1 22.7 8.7 15.3 6.9 10.5 13.4 17.2 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 11997711 11997722 11997733 11997744 11997755 11997766 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors 142.1 167.2 194.3 185.8 195.5 257.8 170.3 220.8 241.1 274.4 1 By public agencies and foreign: 2 Total net advances 43.4 19.8 34.1 52.7 44.3 54.6 55.0 33.6 53.2 56.0 2 3 U.S. Govt, securities 34.4 7.6 9.5 11.9 22.5 26.8 33.4 11.6 21A 26.5 3 4 Residential mortgages 7.0 7.0• 8.2 14.7 16.2 12.8 16.9 15.5 12.1 13.5 4 5 FHLB advances to S&L's -2.7 7.2 6.7 -4.0 -2.0 -6.6 -1.3 -1.6 -2.4 5 6 Other loans and securities 4.6 5.1 9.2 19.5 9.5 16.9 11.3 7.8 15.6 18.3 6 Totals advanced, by sector 7 U.S. Govt 2.8 1.8 2.8 9.8 15.1 8.9 15.9 14.3 6.4 11.4 7 8 Sponsored credit agencies 5.2 9.2 21.4 25.6 14.5 20.6 16.5 12.6 20.7 20.6 8 9 Monetary authorities 8.9 .3 9.2 6.2 8.5 9.8 7.6 9.5 14.5 5.2 9 10 Foreign 26.4 8.4 .6 11.2 6.1 15.2 15.0 -2.7 11.6 18.8 10 11 Agency borrowing not included in line 1. ... 5.9 8.4 19.9 23.1 13.5 18.6 14.5 12.6 18.6 18.6 11 Private domestic funds advanced 12 Total net advances 104.6 155.9 180.2 156.1 164.8 221.8 129.8 199.7 206.6 237.0 12 13 U.S. Govt, securities -3.6 16.0 18.8 22.4 75.7 61.3 59.7 91.6 64.8 57.8 13 14 State and local obligations 17.4 14.7 14.7 17.1 13.6 15.1 12.3 14.9 14.7 15.5 14 15 Corporate and foreign bonds 19.5 13.1 10.0 20.9 32.8 30.3 38.8 26.8 26.8 33.9 15 16 Residential mortgages 31.2 48.2 48.4 26.9 23.2 52.4 16.7 29.6 45.5 59.2 16 17 Other mortgages and loans 37.4 63.9 95.4 75.4 15.6 60.8 -4.3 35.5 53.2 68.3 17 18 LESS : FHLB advances -2.7 * 7.2 6.7 -4.0 -2.0 -6.6 -1.3 -1.6 -2.4 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions 110.3 149.7 164.9 126.3 119.9 187.3 99.8 140.0 167.6 207.1 19 20 Commercial banking 50.6 70.5 86.5 64.6 27.6 58.0 14.4 40.7 44.5 71.5 20 21 Savings institutions 39.9 48.2 36.9 26.9 52.0 71.9 48.5 55.4 71.8 72.0 21 22 Insurance and pension funds 13.7 17.2 23.9 30.0 41.5 47.6 38.3 44.7 47.8 47.3 22 23 Other finance 6.1 13.9 17.5 4.7 -1.1 9.9 -1.4 -.7 3.4 16.3 23 24 Sources of funds 110.3 149.7 164.9 126.3 119.9 187.3 99.8 140.0 167.6 207.1 24 25 Private domestic deposits 89.4 100.8 86.5 69.4 90.9 123.0 90.3 91.5 106.1 139.8 25 26 Credit market borrowing 6.0 17.1 30.2 16.0 .4 9.2 .6 .3 9.8 8.6 26 27 Other sources 14.9 31.8 48.2 40.9 28.6 55.1 9.0 48.2 51.7 58.7 27 28 Foreign funds -3.9 5.3 6.9 14.5 -.4 3.1 -5.6 4.8 -2.6 8.8 28 29 Treasury balances 2.2 .7 -1.0 -5.1 -1.7 — 1 -3.5 .1 2.9 -3.1 29 30 Insurance and pension reserves 8.6 11.6 18.4 26.0 29.0 35.8 26.4 31.5 35.1 36.5 30 31 Other, net 7.9 14.1 23.9 5.4 1.7 16.4 -8.3 11.7 16.2 16.6 31 Private domestic nonfinancial investors 32 Direct lending in credit markets .3 23.3 45.5 45.9 45.3 43.7 30.6 60.0 48.8 38.6 32 33 U.S. Govt, securities -10.7 3.9 19.5 18.2 22.2 19.2 6.0 38.4 22.6 15.9 33 34 State and local obligations .8 3.0 5.4 10.0 6.3 4.7 7.2 5.5 3.9 5.5 34 35 Corporate and foreign bonds 8.3 4.4 1.3 4.7 8.2 4.0 10.8 5.6 4.9 3.1 35 36 Commercial paper -1.1 2.9 12.5 4.8 3.1 4.0 1.5 4.7 6.7 1.3 36 37 Other 3.0 9.1 6.8 8.2 5.5 11.8 5.1 6.0 10.8 12.8 37 38 Deposits and currency 92.8 105.2 90.4 75.7 97.1 130.3 96.0 98.2 111.0 149.5 38 39 Time and savings accounts 79.1 83.8 76.1 66.7 84.8 113.0 73.0 96.5 98.3 127.6 39 40 Large negotiable CD's 6.3 7.7 18.1 18.8 -14.0 -14.2 -27.8 -.2 -18.0 -10.4 40 41 Other at commercial banks 33.2 30.6 29.6 26.1 39.4 58.1 39.3 39.4 50.2 66.0 41 42 At savings institutions 39.6 45.4 28.5 21.8 59.4 69.1 61.5 57.4 66.1 72.1 42 43 Money 13.7 21.4 14.3 8.9 12.3 17.3 23.0 1.7 12.7 21.9 43 44 Demand deposits 10.4 17.0 10.3 2.6 6.1 10.0 17.3 -5.0 7.8 12.1 44 45 Currency 3.4 4.4 3.9 6.3 6.2 7.3 5.7 6.7 4.9 9.8 45 46 Total of credit market instruments, deposits and currency 93.2 128.5 136.0 121.5 142.4 174.0 126.6 158.2 159.8 188.1 46 47 Public support rate (in per cent) 30.5 11.8 17.5 28.4 22.7 21.2 32.3 15.2 22.1 20.4 47 48 Private financial intermediation (in per cent) 105.4 96.1 91.5 80.9 72.8 84.5 76.9 70.1 81.1 87.4 48 49 Total foreign funds 22.5 13.7 7.5 25.7 5.8 18.3 9.4 2.1 9.0 27.6 49 MEMO : Corporate equities not included above 5 5 0 1 To M tal u t n u e a t l is f s u u n e d s shares 15 1 . . 0 3 1 - 3 .5 .3 -1 9 . . 2 2 - 4 .7 .1 1 — 0 .0 i - 1 1 1 . . 0 2 10. . 5 7 - 9 .9 .5 - 1 2 2 .5 .6 9. . 8 5 5 5 1 0 52 Other equities 13.7 13.8 10.4 4.8 lo!2 12.2 9.8 10.5 15.1 9.3 52 53 Acquisitions by financial institutions 19.2 15.3 13.3 5.8 9.4 12.3 10.7 8.1 12.6 12.0 53 54 Other net purchases -4.3 -2.1 -4.1 -1.6 .6 -1.1 -.2 1.4 * -2.2 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 • November 1977 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. Measure 1974 1975 1976 Mar. Apr. May June July Aug. Sept. Oct 1 Industrial production 129.3 117.8 129.8 135.3 136.1 137.0 137.8 138.7 138.2 138.7 139.1 Market groupings: 2 Products, total 129.3 119.3 129.3 135,1 135.8 136.5 137.3 138.7 138.4 138.9 139.4 3 Final, total 125.1 118.2 127.2 133.3 134.1 134.7 135.4 ••136.8 136.2 136.7 137.0 4 Consumer goods 128.9 124.0 136.2 142.9 142.9 143.1 143.8 145.4 144.6 145.2 146.0 5 Equipment 120.0 110.2 114.6 120.0 122.1 123.2 124. 1 124.8 124.8 125.0 124.5 6 Intermediate 135.3 123.1 137.2 141.8 142.3 143.5 144.7 146.3 146.4 146.9 148.5 7 Materials 132.4 115.5 130.6 135.5 136.5 137.8 138.7 138.9 138.0 138.4 138.8 Industry groupings: 8 Manufacturing 129.4 116.3 129.5 135.1 135.8 137.1 137.8 138.5 138.6 138.9 139.3 Capacity utilization (per cent)1 in— 9 Manufacturing 84.2 73.6 80.2 82.1 r82.3 82.8 83.0 83.1 83.0 82.9 82.8 10 Industrial materials industries 87.7 73.6 80.4 81.6 82.1 82.7 83.0 r82.9 82.2 82.3 82.3 11 Construction contracts2 173.9 162.3 190.2 207.0 250.0 317.0 284.0 218.0 >"267.0 279.0 12 Nonagricultural employment, total3 119.1 116.9 120.6 123.6 124.0 124.4 124.7 125.1 125.2 125.7 13 Goods-producing, total 106.2 96.9 100.3 103.2 104.1 104.5 104.7 104.9 104.4 104.7 14 Manufacturing, total 103.1 94.3 97.5 99.8 100.4 100.8 100.9 101.0 100.7 100.9 15 Manufacturing, production-worker 102.1 91.3 95.2 97.6 98.3 98.9 98.9 '98.8 98.3 98.5 16 Service-producing 126.1 127.8 131.7 134.8 134.9 135.3 135.6 136.1 136.6 137.1 17 Personal income, total4 184.3 200.0 220.7 239.2 241.0 242.1 243.3 245.6 246.9 248.8 18 Wages and salary disbursements 178.9 188.5 208.6 225.7 227.9 229.7 230.8 232.3 232.9 234.6 19 Manufacturing 157.6 157.3 177.7 194.4 196.0 198.5 200.4 201.2 200.1 201.5 20 Disposable personal income 180.8 199.2 217.8 239.4 240.7 21 Retail sales5 171.2 186.0 206.6 227.4 227.2 226.1 223.1 224.9 228.3 225.5 Prices:6 22 Consumer 147.7 161.2 170.5 178.2 179.6 180.6 181.8 182.6 183.3 184.0 23 Wholesale 160.1 174.1 182.9 191.9 194.3 195.2 194.4 194.9 194.6 195.3 1 Ratios of indexes of production to indexes of capacity. Based on data 6 Data without seasonal adjustment, as published in Monthly Labor from Federal Reserve, McGraw-Hill Economics Department, and De- Review (U.S. Dept. of Labor). Seasonally adjusted data for changes in partment of Commerce. the price indexes may be obtained from the Bureau of Labor Statistics, 2 Index of dollar value of total construction contracts, including U.S. Dept. of Labor. residential, nonresidential, and heavy engineering, from McGraw-Hill Informations Systems Company, F. W. Dodge Division. NOTE.—Basic data (not index numbers) for series mentioned in notes 3 Based on data in Employment and Earnings (U.S. Dept. of Labor). 3, 4. and 5, and indexes for series mentioned in notes 2 and 6 may also be Series covers employees only, excluding personnel in the Armed Forces. found in the Survey of Current Business (U.S. Dept. of Commerce). 4 Based on data in Survey of Current Business (U.S. Dept. of Com- Figures for industrial production for the last 2 months are preliminary merce). Series for disposable income is quarterly. and estimated, respectively. 5 Based on Bureau of Census data published in 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 Q4 Ql Q2 Q3 ' Q4 Ql Q2 Q3 r Q4 Ql Q2 Q3' Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing 131.2 133.1 136.9 138.7 162.8 164.0 165.6 167.1 80.6 81.2 82.7 83.0 2 Primary processing r138.8 140.1 146.3 147.6 168.8 170.2 171.8 173.5 '82.2 82.3 85.1 85.1 3 Advanced processing 127.2 '129.3 132.0 134.0 159.6 160.6 '162.2 163.8 79.7 80.5 81.4 81.8 4 131.9 133.1 137.7 138.4 164.3 165.5 166.6 167.8 80.3 80.4 82.6 82.5 5 Durable goods 128.4 129.2 135.1 136.1 167.8 169.0 170.3 171.6 76.5 76.5 79.4 79.3 6 Basic metal 107.4 108.6 116.4 110.2 144.4 144.8 145.1 145.3 74.4 75.0 80.2 75.8 7 Nondurable goods 146.9 149.5 154.6 154.7 174.1 175.6 177.2 178.8 84.4 85.1 87.2 86.5 8 Textile, paper, and chemical 151.4 153.9 159.9 159.6 182.0 183.6 185.4 187.1 83.2 83.8 86.3 85.3 9 Textile 112.1 111.3 110.9 112.5 140.6 141.4 141.9 142.5 79.7 78.7 78.1 79.0 10 Paper 130.2 131.7 134.3 135.7 147.9 148.9 150.1 151.3 88.1 88.4 89.5 89.7 11 Chemical 177.3 181.6 191.8 190.0 213.7 216.2 218.7 221.2 83.0 84.0 87.7 85.9 12 Energy 122.0 122.0 122.6 124.0 143.9 144.3 144.7 145.2 84.8 84.5 84.8 85.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1977 CCaatteeggoorryy 11997744 11997755 11997766 Apr. May June July Aug. j Sept. Oct. Household survey data 1111 NNNNoooonnnniiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnaaaallll ppppooooppppuuuullllaaaattttiiiioooonnnn1111 150,827 153,449 156,048 157,986 158,228 158,456 158,682 158,899 159,114 159,334 2222 LLLLaaaabbbboooorrrr ffffoooorrrrcccceeee ((((iiiinnnncccclllluuuuddddiiiinnnngggg AAAArrrrmmmmeeeedddd FFFFoooorrrrcccceeeessss))))1111 93,240 94,793 96,917 98,892 99,286 99,770 99,440 99,834 99,999 100,236 3333 CCCCiiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 91,011 92,613 94,773 96,760 97,158 97,641 97,305 97,697 97,868 98,102 EEEEmmmmppppllllooooyyyymmmmeeeennnntttt:::: 4444 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll iiiinnnndddduuuussssttttrrrriiiieeeessss 2222 82,443 81,403 84,188 86,763 87,022 87,341 87,348 87,519 87,880 87,958 5555 AAAAggggrrrriiiiccccuuuullllttttuuuurrrreeee 3,380 3,297 3,260 3,386 3,338 3,213 3,252 3,215 3,272 UUUUnnnneeeemmmmppppllllooooyyyymmmmeeeennnntttt:::: 3,492 6666 NNNNuuuummmmbbbbeeeerrrr 7,830 7,288 6,737 6,750 6,962 6,744 6,926 6,773 6,872 7777 RRRRaaaatttteeee ((((ppppeeeerrrr cccceeeennnntttt ooooffff cccciiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr 5,076 ffffoooorrrrcccceeee)))) 8.5 7.7 7.0 6.9 7.1 6.9 7.1 6.9 7.0 5.6 8888 NNNNooootttt iiiinnnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 58,655 59,130 59,094 58,943 58,686 59,242 59,064 59,114 59,099 57,587 Establishment survey data 9999 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll ppppaaaayyyyrrrroooollllllll''''eeeemmmmppppllllooooyyyymmmmeeeennnntttt3333 78,413 77,050 79,443 81,686 81,921 82,121 82,366 r82,480 r82,807 82,926 11110000 MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 20,046 18,347 18,958 19,528 19,600 19,622 19,648 r19,609 r19,653 19,638 11111111 MMMMiiiinnnniiiinnnngggg 694 745 783 847 845 855 834 r818 r851 854 11112222 CCCCoooonnnnttttrrrraaaacccctttt ccccoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn 3,957 3,515 3,593 3,842 3,861 3,876 3,917 r3,889 r3,896 3,940 11113333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn aaaannnndddd ppppuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttiiiieeeessss.... 4,696 4,499 4,508 4,575 4,586 4,579 4,572 r4,577 r4,613 4,610 11114444 TTTTrrrraaaaddddeeee 17,017 16,997 17,694 18,203 18,235 18,247 18,294 r18,363 r18,425 18,429 11115555 FFFFiiiinnnnaaaannnncccceeee 4,208 4,222 4,315 4,463 4,480 4,489 4,506 r4,519 r4,541 4,564 11116666 SSSSeeeerrrrvvvviiiicccceeee 13,617 14,008 14,645 15,182 15,197 15,245 15,372 r15,463 r15,477 15,523 11117777 GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 14,177 14,773 14,947 15,046 15,117 15,208 15,223 r15,242 r 15,351 15,368 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 • November 1977 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 11996677 1976 1977 GGrroouuppiinngg pprroo-- 11997766 ppoorr-- aavveerr-ttiioonn aaggee Aug. Sept. Oct.r Mar. Apr. May June July Aug. Sept.f Oct.® Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 129.8 131.3 130.6 130.2 135.3 136.1 137.0 137.8 138.7 138.2 138.7 139.1 2 Products 60.71 129.3 130.1 129.4 129.2 135.1 135.8 136.5 137.3 138.7 138.4 138.9 139.4 3 Final products 47.82 127.2 128.0 126.9 126.7 133.3 134.1 134.7 135.4 136.8 136.2 136.7 137.0 4 Consumer goods 27.68 136.2 137.0 135.7 135.9 142.9 142.9 143.1 143.8 145.4 144.6 145.2 146.0 5 Equipment 20.14 114.6 115.6 114.8 114.2 120.0 122.1 123.2 124.1 124.8 124.8 125.0 124.5 6 Intermediate products 12.89 137.2 138.4 138.7 138.8 141.8 142.3 143.5 144.7 146.3 146.4 146.9 148.5 7 Materials 39.29 130.6 133.0 132.4 131.8 135.5 136.5 1378. 138.7 138.9 138.0 138.4 138.8 Consumer goods 8 Durable consumer goods 7.89 141.4 144.2 138.7 138.9 152.4 151.5 152.2 155.8 158.0 154.5 156.4 158.2 9 Automotive products 2.83 154.8 157.8 147.6 147.8 178.3 173.9 172.8 179.8 184.8 176.7 177.9 181.9 10 Autos and utility vehicles 2.03 149.8 157.5 139.2 136.3 176.1 171.2 167.4 177.4 184.1 172.6 174.2 179.7 11 Autos 1.90 132.0 137.3 121.0 120.2 155.8 150.6 148.5 156.8 161.4 150.9 151.6 154.3 12 Auto parts and allied goods .80 167.6 158.4 168.6 176.6 184.1 181.3 186.6 185.8 186.6 187.2 187.6 187.8 13 Home goods 5.06 133.9 136.5 133.8 133.9 137.9 138.8 140.6 142.3 142.9 141.9 144.3 145.1 14 Appliances, A/C, and TV 1.40 114.6 120.5 113.1 115.7 124.1 126.4 131.0 133.1 130.1 129.2 133.1 134.8 15 Appliances and TV 1.33 117.2 123.2 116.6 118.5 126.5 129.9 134.8 136.8 134.4 132.7 137.9 16 Carpeting and furniture 1.07 144.1 145.0 146.3 146.2 144.6 145.0 147.3 151.2 154.1 154.6 159.2 17 Misc. home goods 2.59 140.1 141.7 139.8 138.6 142.7 143.0 143.1 143.6 145.1 143.6 144.1 144.5 18 Nondurable consumer goods 19.79 134.1 134.2 134.5 134.7 139.1 139.4 139.5 139.1 140.3 140.6 140.8 141.1 19 Clothing 4.29 1 ?4 0 120.7 121.5 123.3 123.9 124.4 125.5 125.7 124.1 124.5 20 Consumer staples 15.50 136.9 137.9 138.0 138.0 143.3 143.6 143.4 142.9 144.8 145.1 145.5 145.7 21 Consumer foods and tobacco.... 8.33 130.7 131.9 132.6 133.1 136.0 136.1 135.0 135.4 137.1 137.7 138.0 22 Nonfood staples 7.17 144.1 144.9 144.2 143.7 151.8 152.5 153.2 151.7 153.8 153.7 154.4 154.2 23 Consumer chemical products... 2.63 166.4 168.9 169.2 168.3 175.9 178.1 180.8 179.3 179.4 184.5 185.9 24 Consumer paper products 1.92 113.3 113.9 111.9 110.9 117.4 116.6 118.4 116.3 117.4 117.0 116.5 25 Consumer energy products 2.62 144.4 143.3 142.9 142.9 152.8 153.0 150.8 149.8 154.9 149.6 150.6 26 Residential utilities 1.45 151.1 149.3 148.4 148.7 Equipment 27 Business equipment 12.63 136.3 137.6 137.0 135.7 144.8 147.1 148.9 150.1 151.2 151.0 151.4 151.8 28 Industrial equipment 6.77 128.0 128.1 129.5 129.6 134.4 136.3 138.4 140.0 140.7 140.2 140.6 141.3 29 Building and mining equipment. . 1.44 177.7 180.3 180.3 181.2 197.9 200.5 205.3 208.1 210.6 203.9 202.0 202.1 30 Manufacturing equipment 3.85 106.5 107.2 108.2 108.1 109.0 112.0 112.8 115.0 114.3 115.3 117.0 117.8 31 Power equipment 1.47 135.3 132.2 135.8 136.0 138.3 136.7 139.9 139.0 141.2 142.5 142.2 143.0 32 Commercial transit, farm equipment 5.86 145.8 148.6 145.8 142.6 156.9 159.5 161.2 161.9 163.3 163.6 164.0 164.0 33 Commerical equipment 3.26 173.5 176.2 176.8 177.5 186.1 189.7 191.1 191.4 191.7 192.5 193.9 195.2 34 Transit equipment 1.93 104.1 106.4 98.2 97.6 113.0 115.2 116.5 118.5 121.5 123.2 123.9 119.8 35 Farm equipment .67 131.4 136.7 131.4 102.0 141.8 141.0 144.4 143.2 144.6 139.3 134.7 36 Defense and space equipment 7.51 78.4 78.5 77.6 78.0 78.5 79.9 80.0 80.3 80.4 80.8 80.8 78.4 Intermediate products 37 Construction supplies 6.42 132.6 134.9 134.1 134.8 136.4 137.2 138.7 139.9 141.2 141.7 143.5 145.5 38 Business supplies 6.47 141.8 141.8 143.2 142.8 147.3 147.5 148.4 149.6 151.3 151.0 150.2 39 Commercial energy products 1.14 157.1 157.7 157.5 155.4 163.6 164.6 165.8 164.2 168.2 165.6 164.6 Materials 40 Durable goods materials 20.35 126.8 131.4 129.9 128.3 131.9 133.8 135.2 136.4 136.8 135.5 136.0 136.4 41 Durable consumer parts 4.58 121.6 125.9 123.6 118.4 126.8 129.4 132.0 134.5 137.2 134.9 134.8 135.5 42 Equipment parts 5.44 133.9 138.1 138.3 138.0 137.8 140.7 141.7 143.0 145.0 145.6 146.7 145.5 43 Durable materials n.e.c 10.34 125.5 130.6 128.3 127.5 131.1 132.2 133.2 133.8 132.4 130.4 130.8 132.1 44 Basic metal materials 5.57 110.9 120.0 113.7 172.0 113.6 115.0 117.8 116.3 112.6 109.3 108.6 45 Nondurable goods materials , 10.47 146.3 146.3 147.6 147.5 153.3 153.7 155.4 154.7 154.1 154.8 155.1 155.2 46 Textile, paper, and chem. mat " 7.62 151.1 150.6 152.4 152.5 158.4 159.0 160.7 160.1 158.9 159.6 160.3 160.8 47 Textile materials 1.85 115.1 114.9 114.6 112.6 113.2 111.8 111.8 109.0 110.1 112.3 115.2 48 Paper materials 1.62 130.8 132.2 131.2 132.1 133.9 132.2 136.2 134.4 134.3 135.6 137.3 49 Chemical materials 4.15 175.1 173.5 177.6 178.3 188.0 190.6 192.2 192.7 190.3 190.1 189.5 50 Containers, nondurable 1.70 142.7 143.9 143.5 141.7 148.9 148.5 152.3 152.4 152.4 156.2 153.9 51 Nondurable materials n.e.c 1.14 119.9 121.7 122.1 122.4 126.1 125.6 123.1 122.9 124.9 121.2 122.4 52 Energy materials 8.48 120.2 120.1 119.9 120.8 121.8 121.3 122.3 124.3 125.2 123.3 123.6 53 Primary energy 4.65 107.1 107.9 108.4 108.6 107.0 106.0 106.6 109.7 108.9 108.6 110.7 54 Converted fuel materials 3.82 136.2 134.9 134.2 135.5 139.9 140.1 141.4 142.0 145.1 141.3 139.3 Supplementary groups 55 Home goods and clothing 9.35 129.4 129.2 128.1 129.0 131.5 132.2 133.6 134.7 134.3 133.9 135.0 135.8 56 Energy, total 12.23 128.8 128.5 128.3 128.8 132.3 132.1 132.5 133.5 135.6 132.8 133.3 133.7 57 Products 3.76 148.2 147.7 147.3 146.8 156.0 156.5 155.3 154.1 158.9 154.4 154.8 58 Materials 8.48 120.2 120.1 119.9 120.8 121.8 121.3 122.3 124.3 125.2 123.3 123.6 For NOTE see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 11996677 1976 1977 GGrroouuppiinngg SSIICC pprroo-- 11997766 ccooddee ppoorr-- aavveerr-ttiioonn aaggee Aug. Sept. Oct.r Mar. Apr. May June July Aug. Sept.? Oct.® Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 131.6 131.3 131.6 132.5 136.6 135.7 137.1 138.8 139.4 135.4 135.7 136.8 2 Mining 6.36 114.2 114.0 115.5 116.1 120.6 119.2 119.5 122.8 119.8 116.7 119.0 120.5 3 Utilities 5.69 151.0 150.5 149.6 150.8 154.8 154.0 156.7 156.8 161.4 156.2 154.5 154.9 4 Electric 3.88 167.6 167.6 166.0 167.0 5 Manufacturing. 87.95 129.5 131.2 130.5 129.8 135.1 135.8 137.1 137.8 138.5 138.6 138.9 139.3 6 Nondurable., 35.97 140.9 140.4 142.3 141.9 147.0 147.0 148.5 148.4 148.6 149.2 149.3 149.9 7 Durable 51.98 121.7 125.0 122.4 121.4 126.8 128.0 129.3 130.5 131.6 131.3 131.8 131.9 Mining 8 Metal mining 10 .51 122.8 124.5 123.2 126.1 133.8 126.1 120.5 121.3 101.9 70.0 71.2 9 Coal 1,12 .69 117.2 112.6 121.3 126.4 124.1 118.4 122.4 133.4 120.7 113.6 133.0 i46.2 10 Oil and gas extraction 13 4.40 112.0 112.2 113.1 112.5 117.5 117.5 118.3 121.3 120.6 121.2 121.4 120.7 11 Stone and earth minerals. 14 .75 118.3 118.8 119.2 120.0 126.1 124.0 123.0 122.5 126.7 125.0 124.9 Nondurable manufactures 12 Foods 8.75 132.3 134.8 134.6 134.8 138.7 138.0 138.3 136.9 138.3 138.9 138.2 13 Tobacco products .67 117.9 114.8 115.4 118.3 104.3 112.1 105.2 119.2 114.5 117.4 14 Textile mill products... 2.68 136.4 135.1' 136.4 134.2 134.4 134.6 136.0 135.4 137.2 135.8 138.1 15 Apparel products 3.31 122.2 117 5 119.5 122.9 122.2 121.4 123.5 122.1 121.1 121.7 16 Paper and products 3.21 133.0 134.6 132.1 132.3 135.5 136.3 139.5 139.3 139.2 140.3 140.5 140.3 17 Printing and publishing 4.72 120.6 120.6 120.6 119.3 124.8 123.4 124.4 124.1 124.9 125.0 124.9 125.4 18 Chemicals and products 7.74 169.3 169.7 171.3 170.7 180.0 180.6 182.8 183.5 182.6 183.2 183.1 19 Petroleum products 1.79 133.1 133.8 133.9 130.3 143.3 143.4 142.4 140.0 140.4 139.5 140.5 140.4 20 Rubber & plastic products. 2.24 200.2 189.3 212.4 211.1 225.6 226.0 232.4 235.2 235.2 237.4 239.4 21 Leather and products .86 80.9 78.3 77.9 77.2 73.8 74.7 76.2 74.1 74.1 74.5 74.1 Durable manufactures 22 Ordnance, pvt. & govt.... 19,91 3.64 72.7 73.6 73.0 72.3 72.8 74.6 74.4 74.1 75.0 75.5 74.8 73.0 23 Lumber and products 24 1.64 125.1 127.9 128.7 129.6 132.1 130.6 133.0 132.4 132.9 131.8 135.1 24 Furniture and fixtures 25 1.37 132.7 133.8 133.6 134.5 135.1 135.4 137.5 139.9 143.0 142.6 144.6 25 Clay, glass, stone products. 32 2.74 137.1 137.6 137.9 139.9 143.7 145.0 145.0 147.7 148.0 148.4 147.3 26 Primary metals 33 6.57 108.9 118.3 113.0 109.9 108.3 112.2 117.1 114.7 114.4 113.0 111.4 110.8 27 Iron and steel 331,2 4.21 104.9 116.0 108.6 105.1 97.9 103.9 lll.'O 109.2 110.9 110.6 104.5 28 Fabricated metal products. 34 5.93 123.3 125.8 126.5 123.5 127.5 127.6 128.2 130.8 132.0 134.0 135.0 135.8 29 Nonelectrical machinery... 35 9.15 135.0 136.4 136.8 134.3 139.8 142.9 142.6 144.0 145.7 145.2 146.5 147.8 30 Electrical machinery 36 8.05 131.6 135.4 133.9 135.0 137.6 139.6 141.8 142.6 143.6 143.9 145.8 146.4 31 Transportation equipment.. 37 9.27 110.6 114.6 104.7 104.3 120.5 119.8 120.3 123.7 125.6 123.6 124.1 122.6 32 Motor vehicles & parts... 371 4.50 140.7 149.7 130.6 128.4 161.2 158.1 157.7 163.2 166.2 164.1 164.5 168.0 33 Aerospace & misc. tr. eq. 372-9 4.77 82.2 81.6 80.3 81.6 82.3 83.8 85.2 86.5 87.3 85.6 86.2 79.9 34 Instruments 38 2.11 148.2 149.5 148.7 150.2 156.9 157.8 157.4 158.2 159.0 158.3 158.9 160.5 35 Miscellaneous mfrs 39 1.51 143.5 142.3 143.7 142.4 147.4 145.6 148.0 148.4 150.4 147.5 149.9 148.6 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total . 1507.4 550.4 555.5 548.2 548.1 578.2 578.3 582.2 585.9 590.5 589.9 591.5 594.3 37 Final products i390.9 425.7 429.8 421.5 421.6 449.0 448.5 451.0 453.7 457.8 456.0 457.8 459.9 38 Consumer goods. . 1277.5 301.6 303.5 299.4 300.4 316.8 316.1 316.3 318.9 321.5 319.6 321.0 323.2 39 Equipment 1113.4 124.0 126.4 121.9 121.3 132.1 132.6 134.6 134.9 136.2 136.4 137.1 136.8 40 Intermediate products. . 1116.6 124.8 126.0 126.6 126.2 129.1 130.1 131.4 131.8 132.8 133.4 134.0 134.5 1 1972 dollars. The industrial production indexes have been revised back to January 1976, on the basis of more complete information now available. A complete NOTE.—Published groupings include some series and subtotals not shown set of the revised 1976 series is attached to the September G.12.3 release separately. For summary description and historical data, see BULLETIN for which may be obtained from the Publications Section, Board of Governors June 1976, pp. 470-79. Availability of detailed descriptive and historical of the Federal Reserve System, Washington, D.C. 20551. 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 • November 1977 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates. Exceptions noted. 1977 Item 1974 11997755 11997766 Mar. Apr. May r Juner July Aug. Sept.f Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized. 1,074 927 1,296 1,687 1,605 1,615 1,678 1,639 1,772 1,696 2 1-family 644 669 894 1,188 1,051 1,077 1,105 1,089 1,156 1,092 3 2-or-more-family 431 278 402 499 554 538 573 550 616 604 4 Started 1,338 1,160 1,540 2,089 1,880 1,937 1,897 2,083 2,034 2,040 5 1-family 888 892 1,163 1,503 1,413 1,455 1,389 1,437 1,459 1,492 6 2-or-more-family 450 268 377 586 467 482 508 646 575 548 7 Under construction, end of period 1 11,,118899 1,003 1,147 1,237 1,268 1,302 1,323 1,344 11,,336666 8 1-family 551166 531 655 732 748 111 787 793 880066 9 2-or-more-family 673 472 492 505 520 531 536 550 560 10 Completed 1,692 1,297 1,362 11,,770077 1,540 1,536 1,647 1,678 111,,,666555111 11 1-family 931 866 1,026 11,,223366 1,226 1,177 1,209 1,272 111,,,222333000 12 2-or-more-family 760 430 336 471 314 359 438 406 444222111 13 Mobile homes shipped 329 213 250 275 252 251 264 251 270 288 Merchant builder activity in 1-family units: 14 Number sold 501 544 639 867 775 774 806 701 839 15 Number for sale, end of period i.. 407 383 433 435 441 441 444 451 464 Price (thous. of dollars)2 Median: 16 Units sold 35.9 39.3 44.2 46.2 48.7 49.3 49.0 48.8 49.5 17 Units for sale 36.2 38.9 41.6 42.9 43.3 43.9 44.3 44.8 45.1 Average: 18 Units sold 38.9 42.5 48.1 51.6 54.6 54.4 53.9 53.7 54.3 54.0 EXISTING UNITS (1-family) 19 Number sold 2,272 2,452 3,002 3,410 3,300 3,450 3,420 3,510 3,720 3,880 Price of units sold (thous. of dollars):2 20 Median 32.0 35.3 38.1 41.0 42.0 42.2 43.4 43.7 43.9 43.8 21 Average 35.8 39.0 42.2 45.5 46.5 46.8 47.7 48.0 48.1 47.9 Value of new construction 3 (millions of dollars) CONSTRUCTION 22 Total put in place 138,499 134,293 147,481 163,790 167,605 172,239 174,378 172,264 170,967 173,721 23 Private 100,165 93,624 109,499 128,387 131,421 133,816 135,026 133,024 132,751 134,536 24 Residential 50,377 46,472 60,519 76,677 79,616 82,542 82,181 79,643 79,126 80,483 25 Nonresidential, total 49,788 47,152 48,980 51,710 51,805 51,274 52,845 53,381 53,625 54,053 Buildings: 26 Industrial 7,902 8,017 7,182 7,162 7,279 7,184 7,066 1,210 7,646 7,376 27 Commercial 15,945 12,804 12,757 13,677 13,851 13,760 15,235 15,533 15,257 15,625 28 Other 5,797 5,585 6,155 5,850 6,271 6,077 6,206 6,474 6,294 6,487 29 Public utilities and other 20,144 20,746 22,886 25,021 24,404 24,253 24,338 24,164 24,428 24,565 30 Public 38,333 40,669 37,982 35,403 36,184 38,423 39,352 333999,,,222444000 333888,,,222111666 39,185 31 Military 1,188 1,392 1,508 1,452 1,494 1,642 1,566 111...555333888 111,,,444444888 1,488 32 Highway 12,066 10,861 9,756 9,153 9,052 9,835 10,792 999...555333999 999,,,222555888 3 3 3 4 O Co th n e s r e 4 r vation and development... 2 2 2 , , 7 3 4 3 0 9 2 3 5 , , 2 1 5 6 6 0 22 3 , , 9 7 9 2 6 2 2 3 1 , , 6 1 7 2 5 3 2 4 1 , , 0 62 1 6 2 23 3 , , 3 5 8 6 4 2 2 3 3 , , 1 7 9 9 6 8 222 444 333 ,,, ,,,999 222 111 555 111 222 222 444 333 ,,, ,,, 000 444 222 888 666 444 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 availsee 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 Sept. 1976 1977 1977 Sept. Sept. (1967 Dec. Mar. June Sept. May June July Aug. Sept. = 100)1 Consumer prices 1 All items 5.5 6.6 4.2 10.0 8.1 4.2 .6 .6 .4 .3 .3 184.0 2 Commodities 3.9 5.7 3.4 10.4 7.4 2.3 .5 .5 .1 .3 ..22 176.6 3 Food 2 1 7 1 14 6 12.7 1 7 j 8 .3 194 5 4 Commodities less food 5.0 4.9 5.7 7A 4.2 2.7 A '.2 '.1 '.3 '.2 166.7 5 Durable 5.9 4.8 6.0 10.5 2.5 1.0 .2 -.1 0.0 .1 .2 164.5 6 Nondurable 4.3 5.0 5.4 5.5 5.2 4.2 .5 .4 •3 .4 .3 168.4 7 Services 8.3 7.9 5.1 9.8 9.4 7.4 .7 .8 .8 .5 .5 197.7 8 Rent 5.6 6.2 5.3 6.3 6.3 7.0 .4 .5 .6 .5 .6 155.3 9 Services less rent 8.7 8.2 5.4 10.4 9.7 7.5 .7 .8 .8 .5 .5 205.4 Other groupings: 10 All items less food1 6.6 6.4 5.3 6.9 7.8 5.7 .6 .6 .4 .4 .6 180.9 11 All items less shelter1 5.4 6.3 4.3 9.4 8.4 3.4 .5 .7 .3 .3 .2 181.2 12 Homeownership1 5.7 7.6 1.2 9.1 9.6 10.6 .6 .8 1.1 .6 .8 209.1 Wholesale prices 13 All commodities 4.0 5.7 7.1 10.2 3.6 1.9 .4 -.7 -.1 .1 .5 195.3 14 Farm products, and processed foods and feeds -3.9 .5 6.6 19.1 —2.5 -17.0 .3 -3.6 -2.1 -2.1 -.4 183.9 15 Farm products -2.6 -5.2 5.8 26.0 -21.6 -22.3 -2.3 -6.8 -1.8 -4.3 -.2 181.9 16 Processed foods and feeds -4.8 4.0 6.5 15.6 10.8 -14.1 1.8 -1.7 -2.4 -.8 -.6 184.2 17 Industrial commodities 6.8 7.0 7.6 7.9 5.3 7.6 .4 .3 .5 .5 .8 197.8 Materials, supplies, and components of which: 18 Crude materials2 9.2 12.2 21.6 21.9 -2.0 8.9 .8 -1.6 0.0 1.9 .3 283.7 19 Intermediate materials 3 7.2 6.8 7.1 8.0 4.7 7.8 .3 .2 .6 .5 .7 206.0 Finished goods, excluding foods: 20 Consumer 5.4 6.4 5.2 8.5 6.5 5.2 .5 ' .4 .2 .3 .7 173.7 21 Durable 4.7 5.5 3.3 7.0 6.0 5.4 .4 .3 .3 1.0 .1 152.1 22 Nondurable 6.0 6.9 6.5 9.5 7.0 4.8 .5 .5 .2 0.0 1.0 188.2 23 Producer 6.1 6.7 9.5 5.3 6.3 5.6 .6 .4 .4 .4 .5 185.6 MEMO: 24 Consumer foods -4.5 6.5 8.4 12.7 13.8 -7.5 2.1 -1.3 -.7 -.9 -.3 189.7 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 • November 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 Q2 Q3 Q4 QL Q2 Q3f Gross national product 1 Total 1,412.9 1,528.8 1,706.5 1,691.9 1,727.3 1,755.4 1 ,810.8 1,869.9 1,911.3 By source: 2 Personal consumption expenditures 889.6 980.4 1,094.0 1,078.5 1,102.2 1,139.0 1 ,172.4 1,194.0 1,216.7 3 Durable goods 122.0 132.9 158.9 156.7 159.3 166.3 177.0 178.6 111 .1 4 Nondurable goods 376.3 409.3 442.7 437.1 444.7 458.8 ,466.6 474.4 All .2 5 Services 391.3 438.2 492.3 484.6 498.2 513.9 528.8 541.1 561.5 6 Gross private domestic investment 214.6 189.1 243.3 244.4 254.3 243.4 271.8 294.9 300.6 7 Fixed investment 205.7 200.6 230.0 226.1 232.8 244.3 258.0 273.2 280.8 8 Nonresidential 150.6 149.1 161.9 159.8 164.9 167.6 177.0 182.4 187.7 9 Structures 54.5 52.9 55.8 55.8 56.0 57.0 57.9 61.0 62.6 10 Producers' durable equipment 96.2 . 96.3 106.1 104.0 109.0 110.6 119.2 121.4 125.1 11 Residential structures 55.1 51.5 68.0 66.3 67.8 76.7 81.0 90.8 93.1 12 Nonfarm 52.7 49.5 65.7 64.1 65.7 74.3 78.5 88.2 90.6 13 Change in business inventories 8.9 -11.5 13.3 18.3 21.5 -.9 13.8 21.7 19.8 14 Nonfarm 10.8 -15.1 14.9 20.4 22.0 1.4 14.1 22.4 19.3 15 Net exports of goods and services 6.0 2.0 7.8 10.2 7.9 3.0 -8.2 — 9.7 -11.6 16 Exports 137.9 147.3 162.9 160.6 168.4 168.5 170.4 178.1 174.9 17 Imports 131.9 126.9 155.1 150.4 160.6 165.6 178.6 187.7 186.6 18 Govt, purchases of goods and services 302.7 338.9 361.4 358.9 363.0 370.0 374.9 390.6 405.6 19 Federal 111.1 123.3 130.1 128.5 130.2 134.2 136.3 143.6 151.5 20 State and local 191.5 215.6 231.2 230.4 232.7 235.8 238.5 247.0 254.1 By major type of product: 21 Final sales, total 11,,440044..00 11,,554400..33 1,693.1 1,673.7 1,705.8 1,756.3 1 ,797.0 1,848.2 1,891.5 22 Goods 638.6 686.2 764.2 761.7 746.0 774.7 805.9 827.1 835.0 23 Durable goods 247.8 258.2 303.4 301.9 313.4 312.6 334.4 341.0 339.6 24 Nondurable 390.8 428.0 460.9 459.7 464.1 460.6 471.5 486.1 495.4 25 Services 626.8 699.2 782.0 770.8 791.8 813.8 833.7 855.3 884.7 26 Structures 147.4 143.5 160.2 159.4 159.6 166.9 171.2 187.5 191.5 27 Change in business inventories 8.9 -11.5 13.3 18.3 21.5 -.9 13.8 21.7 19.8 28 Durable goods 7.1 -9.2 4.1 7.0 10.7 .6 7.8 11.5 8.7 29 Nondurable goods 1.8 -2.2 9.3 11.2 12.4 -3.1 6.0 10.2 11.1 30 MEMO: Total GNP in 1972 dollars 1,217.8 1,202.1 1,274.7 1,271.5 1,283.7 1,287.4 1 ,311.0 1,330.7 1,343.2 National income 31 Total 1,136.0 1,217.0 1,364.1 1,353.9 1,379.6 1,402.1 1,450.2 1,505.7 32 Compensation of employees 875.8 930.3 1,036.3 1,024.9 1,046.5 1,074.2 1,109.9 1,144.7 1,165.6 33 Wages and salaries 764.1 805.7 891.8 882.4 900.2 923.2 951.3 980.9 997.1 34 Government and Government enterprises 160.0 175.4 187.2 185.4 188.2 192.5 194.8 197.2 200.6 35 Other 604.1 630.3 704.6 697.0 712.0 730.7 756.4 783.6 796.5 36 Supplement to wages and salaries 111.7 124.6 144.5 142.5 146.3 150.9 158.6 163.8 168.5 37 Employer contributions for social insurance 56.1 59.8 68.6 68.0 69.1 70.9 75.4 11.1 78.2 38 Other labor income 55.6 64.9 75.9 74.5 77.3 80.0 83.2 86.7 90.3 39 Proprietors' income1 86.4 86.0 88.0 90.4 86.2 88.7 95.1 97.0 95.5 40 Business and professional1 60.9 62.8 69.4 68.8 70.0 72.0 74.3 77.3 80.0 41 Farm1 25.4 23.2 18.6 21.6 16.2 16.6 20.7 19.7 15.5 42 Rental income of persons2 21.4 22.3 23.3 22.9 23.3 24.1 24.5 24.9 25.5 43 Corporate profits1 83.6 99.3 128.1 129.2 133.5 123.1 125.4 140.2 44 Profits before tax3 126.9 123.5 156.9 159.2 159.9 154.8 161.7 174.0 45 Inventory valuation adjustment -40.4 -12.0 -14.1 -15.5 -11.7 -16.9 -20.6 -17.8 -6.1 46 Capital consumption adjustment -2.9 -12.2 -14.7 -14.6 -14.7 -14.8 -15.6 -15.9 -17.9 47 Net interest 69.0 79.1 88.4 86.5 90.1 92.0 95.3 98.9 102.9 1 With inventory valuation and capital consumption adjustments. 3 For after-tax profits, dividends, etc., see Table 1.50. 2 With capital consumption adjustments. SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Income Accounts A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1976 1977 11997744 11997755 1976 Account Q2 Q3 Q4 Ql Q2 Q3» Personal income and saving 1 Total personal income 1,154.9 1,253.4 1,382.7 1,366.7 1,393.9 1,432.2 1,476.8 1,517.2 1,548.3 2 Wage and salary disbursements 764.6 805.7 891.8 882.4 900.2 923.2 951.3 980.9 997.1 3 Commodity-producing industries 274.6 275.0 308.4 306.7 310.8 317.7 328.9 345.4 350.4 4 Manufacturing 211.4 211.0 238.2 236.7 240.2 245.1 255.4 265.9 269.5 5 Distributive industries 184.3 195.4 217.1 213.7 220.2 226.4 234.5 240.5 243.7 6 Service industries 145.1 159.9 179.0 176.6 180.9 186.7 193.0 197.7 202.3 7 Government and government enterprises 160.5 175.4 187.2 185.4 188.2 192.5 194.8 197.2 200.6 8 Other labor income 55.6 64.9 75.9 74.5 77.3 80.0 83.2 86.7 90.3 9 Proprietors' income1 86.2 86.0 88.0 90.4 86.2 88.7 95.1 97.0 95.5 10 Business and professional1 60.9 62.8 69.4 68.8 70.0 72.0 74.3 77.3 80.0 11 Farm1 25.4 23.2 18.6 21.6 16.2 16.6 20.7 19.7 15.5 12 Rental income of persons2 21.4 22.3 23.3 22.9 23.3 24.1 24.5 24.9 25.5 13 Dividends 31.0 32.4 35.8 35.0 36.0 38.4 38.5 40.3 42.3 14 Personal interest income 103.0 115.6 130.3 127.5 132.2 136.4 140.3 145.4 152.7 15 Transfer payments 140.8 176.8 192.8 188.7 194.3 198.0 203.5 203.0 208.6 16 Old-age survivors, disability, and health insurance benefits 70.1 81.4 92.9 89.3 95.8 98.4 9999..99 110011..88 110044..33 17 LESS: Personal contributions for social insurance 47.7 50.4 55.2 54.8 55.6 5566..66 5599..66 6600..88 6611..77 18 EQUALS : Personal income 1,154.9 1,253.4 1,382.7 1,366.7 1,393.9 1,432.2 1,476.8 1,517.2 1,548.3 19 LESS: Personal tax and nontax payments.... 170.3 169.0 196.9 192.6 200.6 209.5 224.4 224.8 221.8 20 EQUALS : Disposable personal income 984.6 1,084.4 1,185.8 1,174.1 1,193.3 1,222.6 1,252.4 1,292.5 1,320.5 21 LESS: Personal outlays 913.0 1,004.2 1,119.9 1,103.8 1,128.5 1,166.3 1,201.0 1,223.9 1,248.0 22 EQUALS : Personal saving 71.7 80.2 65.9 70.3 64.8 56.3 51.4 68.5 72.5 MEMO ITEMS : Per capita (1972 dollars): 23 Gross national product 5,746 5,629 5,924 5,916 5,961 55,,996666 66,,006644 66,,114433 66,,118877 24 Personal consumption expenditures 3,589 3,629 3,817 3,794 3,820 3,892 3,934 3,943 3,952 25 Disposable personal income 3,973 4,014 4,137 4,130 4,135 4,177 4,202 4,268 4,290 26 Saving rate (per cent) 7.3 7.4 5.6 6.0 5.4 4.6 4.1 5.3 5.5 Gross saving 27 Gross private saving 209.5 259.4 272.5 275.4 277.2 261.6 262.9 292.1 28 Personal saving 71.7 80.2 65.9 70.3 64.8 56.3 51.4 68.5 72.5 29 Undistributed corporate profits1 .2 16.7 27.6 28.0 31.6 20.8 22.5 30.3 30 Corporate inventory valuation adjustment.... -40.4 -12.0 -14.1 -15.5 -11.7 -16.9 -20.6 -17.8 -6.1 Capital consumption allowances: 31 Corporate.... 84.6 101.7 111.8 110.4 111122..99 111155..22 111177..66 111199..44 112233..77 32 Noncorporate 53.1 60.8 67.2 66.6 68.0 69.2 71.4 73.8 76.2 34 Government surplus, or deficit (—), national income cind pvocliict ciccowtits -3.2 -64.3 -35.6 --3333..33 --3322..44 --2299..44 —— 1111..55 --1144..99 35 Federal -10.7 -70.2 -54.0 -46.2 -53.5 -55.9 -38.8 -40.3 36 State and local 77..66 55..99 1188..44 1122..99 21.1 26.5 27.3 25.4 37 Capital grants received by the United States, 38 Investment 210.1 201.0 242.5 246.5 252.8 237.5 254.7 276.1 279.5 39 Gross private domestic 214.6 189.1 243.3 244.4 254.1 243.3 271.8 294.9 300.6 40 Net foreign -4.5 11.8 -.9 2.2 -1.5 -5.9 -17.1 -18.8 -21.1 41 Statistical discrepancy 55..88 5.9 55..55 4.5 8.0 5.3 3.3 -1.2 1 With inventory valuation and capital consumption adjustments. SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). 2 With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • November 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 Q2 1 Merchandise exports 98,306 107,088 114,694 27,000 28,380 29,603 29,711 29,458 30,488 2 Merchandise imports 103,673 98,043 124,014 .28,343 29,955 32,411 33,305 36,561 38,347 3 Merchandise trade balance 2 -5,367 9,045 -9,320 -1,343 -1,575 -2,808 -3,594 -7,103 -7,859 4 Military transactions, net -2,083 -876 366 -65 -39 235 235 516 464 5 Investment income, net 8,744 5,954 9,808 2,437 2,280 2,667 2,424 3,252 3,401 6 Other service transactions, net 865 2,042 2,1 A3 523 839 781 598 340 629 7 Balance on goods and services 3 2,160 16,164 3,596 1,552 1,505 875 -337 -2,995 -3,365 8 Remittances, pensions, and other transfers -1,714 -1,719 -1,878 -485 -459 -461 -473 -526 -505 9 U.S. Govt, grants (excluding military) -5,475 -2,893 -3,146 -544 -556 -1,475 -572 -637 -735 --55,,002288 11,552 -1,427 523 490 -1,061 -1,382 -4,158 -4,605 11,,445588 662211 --33,,880099 330033 --33,,440099 --44,,881122 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 -909 -827 13 Change in U.S. official reserve assets (increase, —) -1,434 -607 2,530 -773 -1,578 -407 -228 -388 6 14 Gold --5588 15 SDR's -172 -66 -78 -45 14 -18 -29 -83 -1,265 -466 -2,212 -237 -798 -716 -461 -389 -80 3 -75 -240 -491 -794 327 718 59 169 18 Change in U.S. private assets abroad (increase, —) -25,960 -27,478 -36,216 -9,254 -7,257 -6,597 -13,108 1,627 -10,952 -19,516 -13,532 -20,904 -3,630 -4,754 -3,372 -9,148 3,446 -5,426 20 Long-term -1,183 -2,357 -2,124 -289 -377 -978 -480 -306 -28 21 Short-term -18,333 -11,175 -18,780 -3,341 -A, 377 -2,394 -8,668 3,752 -5,398 22 Nonbank-reported claims -3,221 -1,447 -1,986 -738 -1,004 723 -967 -722 -1,179 23 Long-term -474 -432 10 -191 145 66 -10 45 85 24 Short-term -2,747 -1,015 -1,996 -547 -1,149 657 -957 -767 -1,264 25 U.S. purchase of foreign securities, net -1,854 -6,236 -8,730 -2,460 -1,357 -2,743 -2,171 -692 -1,746 26 U.S. direct investments abroad, net -1,368 -6,264 -4,596 -2,427 -142 -1,205 -822 -404 -2,602 27 Change in foreign official assets in the United States (in- 10,981 6,960 17,945 3,847 4,051 3,070 6,977 5,719 6,935 28 U.S. Treasury securities 3,282 4,408 9,333 1,998 2,166 1,260 3,909 5,149 A,151 29 Other U.S. Govt, obligations 902 905 566 68 316 66 116 100 588 30 Other U.S. Govt, liabilities 4 724 1,701 4,938 1,524 743 1,819 852 712 307 31 Other U.S. liabilities reported by U.S. banks 5,818 -2,158 893 -412 135 -599 1,769 -420 410 32 Other foreign official assets 5 254 2,104 2,215 669 691 524 331 178 873 33 Change in foreign private assets in the United States (increase, +) 22,631 7,376 16,575 3,009 3,333 5,132 5,102 -3,209 6,056 34 U.S. bank-reported liabilities. 16,017 628 10,982 672 3,528 1,774 5,008 -5,298 6,321 35 Long-term 9 -280 175 -105 -16 15 221 47 98 16,008 908 10,807 111 3,544 1,699 4,787 -5,345 6,223 1,844 240 -616 161 -238 -297 -242 -374 -298 38 Long-term -90 334 -947 -233 -162 -241 -311 -229 -102 39 Short-term 11,,993344 -94 331 394 -76 -56 69 -145 -196 40 Foreign private purchases of U.S. Treasury securities, 697 2,590 2,783 437 -592 3,026 -88 1,047 -1,273 41 Foreign purchases of other U.S. securities, net 378 2,503 1,250 1,030 131 68 21 879 820 42 Foreign direct investments in the United States, net.... 3,695 1,414 2,176 709 504 561 403 537 486 43 Allocation of SDR's --11,,555555 5,660 9,866 3,372 1,905 1,268 3,325 1,317 3,388 45 Owing to seasonal adjustments 111111 112299 --22,,662222 11,,778800 552244 --220055 46 Statistical discrepancy in recorded data before seasonal -1,555 5,660 9,866 2,655 1,776 3,890 1,545 793 3,593 MEMO ITEMS * Changes in official assets: 47 U.S. official reserve assets (increase, —) -1,434 -607 -2,530 -773 -1,578 -407 228 -388 6 48 Foreign official assets in the U.S. (increase, +) 10,257 5,259 13,007 2,323 3,308 1,251 6,125 5,007 6,628 49 Changes in OPEC official assets in the U.S. (part of line 27 above 1100,,884411 7,092 9,324 3,482 3,263 11,,777744 805 3,249 824 50 Transfers under military grant programs (excluded from 1,817 2,217 386 50 86 156 94 4466 28 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 Current 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. 1977 IItteemm 11997744 11997755 11997766 Mar. Apr. May June July Aug. Sept. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 97,908 107,130 114,802 10,072 9,970 10,395 10,112 10,150 9,563 10,916 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 100,252 96,115 120,678 12,459 12,593 11,616 12,932 12,476 12,232 12,631 3 Trade balance -2,344 +11,014 -5,876 -2,387 -2,623 -1,221 -2,820 -2,326 -2,669 -1,715 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.—FT 900 "Summary of U.S. Export and Import Merchandise Canada not covered in Census statistics, and (b) the exclusion of military Trade" (U.S. Dept. of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1977 TTyyppee 11997744 11997755 11997766 Apr. May June July Aug. Sept.P Oct.? 1 Total 15,883 16,226 18,747 18,868 19,195 19,156 18,927 19,055 318,988 319,048 2 Gold stock, including Exchange Stabilization Fund i 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 2,384 2,470 2,486 2,498 2,483 3 2,489 3 2,530 4 Reserve position in International Monetary Fund 1,852 2,212 4,434 4,720 4,972 4,920 4,716 4,859 3 4,776 3 4,842 5 Convertible foreign currencies 5 80 320 106 95 92 55 55 65 18 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 Oct. amounted to $19,091; SDR holdings, $2,586, and reserve and $710 million on Jan. 1, 1972; plus net transactions in SDR's. position in IMF, $4,829. 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 • November 1977 3.13 SELECTED U.S. LIABILITIES TO FOREIGNERS Millions of dollars, end of period 1977 HHoollddeerr,, aanndd ttyyppee ooff lliiaabbiilliittyy 11997744 11997755 11997766 Mar. Apr. May June July Aug.p Sept.? 1 Total 119,164 126,552 151,356 151,871 157,020 161,224 163,096 168,370 165,917 174,190 2 Foreign countries 115,842 120,929 142,873 143,770 149,306 152,532 154,913 161,950 158,761 166,766 3 Official institutions1 7766,,882233 80,712 91,975 96,788 99,748 101,546 103,099 107,045 110077,,447799 110,518 4 Short-term, reported by banks in the United States.2 53,079 49,530 53,619 56,046 57,486 58,260 57,413 60,059 56,773 56,713 U.S. Treasury bonds and notes: 5 Marketable 3 5,059 6,671 11,788 13,772 14,694 15,846 17,808 18,856 22,547 25,057 6 Nonmarketable4 1166,,333399 19,976 20,648 21,106 20,976 20,950 20,917 20,837 20,655 21,128 7 Other readily marketable liabilities5 2,346 4,535 5,920 5,864 6,592 6,490 6,961 7,293 7,504 7,620 Commercial banks abroad: 8 Short-term, reported by banks in the United States2,6 30,106 29,516 37,329 32,816 35,356 36,239 36,677 39,946 35,922 40,474 9 Other foreigners 8,913 10,701 13,569 14,166 14,202 14,747 15,137 14,959 15,360 15,774 10 Short-term, reported by banks in the United States2 8,415 10,000 12,592 13,008 12,873 13,393 13,615 13,377 13,684 14,027 11 Marketable U.S. Treasury bonds 498 701 977 1,158 1,329 1,354 1,522 1,582 1,676 1,747 12 Nonmonetary international and regional organization 8 3,322 5,623 8,483 8,101 7,714 8,692 8,183 6,420 7,156 7,424 13 Short-term, reported by banks in the United States2 3,171 5,292 5,450 4,282 5,287 6,557 5,727 3,834 4,216 3,565 14 Marketable U.S. Treasury bonds and notes3 151 331 3,033 3,819 2 All 2,135 2,456 2,586 2,940 3,859 1 Includes Bank for International Settlements. 8 Principally the International Bank for Reconstruction and Develop- 2 Includes Treasury bills as shown in Table 3.15. ment and the Inter-American and Asian Development Banks. 3 Derived by applying reported transactions to benchmark data. 4 Excludes notes issued to foreign official nonreserve agencies. NOTE.—Based on Treasury Dept. data and on data reported to the 5 Includes long-term liabilities reported by banks in the United States Treasury Dept. by banks (including Federal Reserve banks) and brokers and debt securities of U.S. Federally sponsored agencies and U.S. cor- in the United States. Data exclude the holdings of dollars of the Interporations. national Monetary Fund derived from payments of the U.S. subscription, 6 Includes short-term liabilities payable in foreign currencies to com- and from the exchange transactions and other operations of the IMF. mercial banks abroad and to other foreigners. Data also exclude U.S. Treasury letters of credit and nonnegotiable, non- 7 Includes marketable U.S. Treasury bonds and notes held by com- interest-bearing special U.S. notes held by nonmonetary international mercial banks abroad and other foreigners. and regional organizations. 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1977 AArreeaa 11997744 11997755 11997766 Mar. Apr. May June July Aug.f Sept.f 1 Total 76,823 80,712 91,975 96,788 99,748 101,546 103,099 107,045 107,479 110,518 2 Western Europe 1 44,328 45,701 45,882 47,929 48,733 50,048 52,789 55,113 57,170 60,105 3 Canada 3,662 3,132 3,406 2,684 2,752 2,798 2,699 2,653 2,557 2,507 4 Latin American republics 4,419 4,450 4,906 4,834 4,396 4,672 4,240 4,338 4,248 4,454 5 18,627 22,551 34,108 37,730 39,946 40,331 39,835 41,163 40,355 40,270 6 Africa 3,160 2,983 1,893 1,628 1,883 1,821 1,938 2,460 2,265 2,144 7 Other countries 2 2,627 1,895 1,780 1,983 2,038 1,876 1,600 1,318 884 1,038 1 Includes Bank for International Settlements. NOTE.—Data represent breakdown by area of line 3, Table 3.13. 2 Includes countries in Oceania and Eastern Europe, and Western European dependencies in Latin America. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A57 3.15 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States By Holder and by Type of Liability Millions of dollars, end of period 1977 Holder, and type of liability 1975 1976 Mar. Apr. May June July Aug.p Sept.33 1 All foreigners, excluding the International Monetary Fund 94,771 94,338 108,990 106,152 111,002 114,449 113,432 117,216 110,595 114,779 Payable in dollars 94,004 93,781 108,266 105,291 110,194 113,796 112,758 116,256 109,705 114,035 Deposits: Demand 14,051 13,564 16,803 15,101 15,382 16,732 16,272 17,496 15,950 16,884 Time1 9,907 10,250 11,316 11,244 11,282 11,612 12,082 11,833 11,745 11,614 U.S. Treasury bills and certificates2. 35,662 37,414 40,744 43,498 44,661 45,463 44,110 44,413 42,240 43,181 Other short-term liabilities3 34,384 32,552 39,403 35,448 38,869 39,990 40,294 42,515 39,770 42,356 7 Payable in foreign currencies 766 558 724 861 809 653 675 960 890 744 8 Nonmonetary international and regional organizations4 3,171 5,293 5,450 4,283 5,287 6,557 5,728 3,834 4,216 3,565 Payable in dollars 3,171 5,284 5,445 4,279 5,284 6,551 5,715 3,819 4,178 3,533 Deposits: 10 Demand 139 139 290 203 119 172 228 122 142 214 11 Time1 111 148 205 241 207 167 156 154 147 144 12 U.S. Treasury bills and certificates. 497 2,554 2,701 2,743 2,849 2,977 2,521 2,191 1,990 1,875 13 Other short-term liabilities5 2,424 2,443 2,250 1,093 2,109 3,234 2,811 1,352 1,900 1,300 14 Payable in foreign currencies 8 5 3 3 6 13 15 38 32 15 Official institutions, banks, and other foreigners. 91,600 89,046 103,540 101,870 105,715 107,892 107,705 113,382 106,379 111,214 16 Payable in dollars 90,834 88,496 102,821 101,012 104,910 107,246 107,043 112,437 105,527 110,502 Deposits: 17 Demand 13,912 13,426 16,513 14,898 15,262 16,559 16,044 17,374 15,808 16,670 18 Time1 9,796 10,102 11,112 11,003 11,076 11,445 11,926 11,679 11,599 11,471 19 U.S. Treasury bills and certificates2. 35,165 34,860 38,042 40,755 41,812 42,485 41,589 42,221 40,250 41,306 20 Other short-term liabilities3 31,961 30,109 37,153 34,355 36,760 36,756 37,483 41,163 37,870 41,056 21 Payable in foreign currencies 766 549 719 858 805 647 662 945 852 712 22 Official institutions6 53,079 49,530 53,619 56,046 57,486 58,260 57,413 60,059 56,773 56,713 23 Payable in dollars 52,952 49,530 53,619 56,046 57,486 58,260 57,413 60,059 56, 773 56, 713 Deposits: 24 Demand 2,951 2,644 3,394 2,638 2,747 2,676 2,705 3,642 3,122 3,131 25 Time1 4,167 3,423 2,321 2,266 2,335 2,441 2,506 2,401 2,241 1,975 26 U.S. Treasury bills and certificates2. 34,656 34,199 37,725 40,399 41,508 42,197 41,322 41,926 39,810 40,780 27 Other short-term liabilities5 11,178 9,264 10,179 10,744 10,896 10,947 10,880 12,090 11,600 10,827 28 Payable in foreign currencies. 127 29 Banks and other foreigners 38,520 39,515 49,921 45,824 48,230 49,362 50,292 53,323 49,606 54,501 30 Payable in dollars 37,881 38,966 49,202 44,966 47,424 48,985 49,630 52,378 48,754 53,789 31 Banks7 29,467 28,966 36,610 31,958 34,551 35,592 36,015 39,001 35,070 39,763 Deposits: 32 Demand 8,231 7,534 9,104 8,392 8,712 9,772 9,551 10,136 8,936 9,688 33 Time1 1,885 1,856 2,267 1,742 1,675 1,808 2,128 1,826 1,868 1,879 34 U.S. Treasury bills and certificates. 232 335 119 108 104 108 100 144 112 121 35 Other short-term liabilities3 19,119 19,241 25,120 21,716 24,060 23,904 24,236 26,895 24,154 28,074 36 Other foreigners 8,414 10,000 12,592 13,008 12,873 13,393 13,614 13,376 13,684 14,027 Deposits: 37 Demand 2,729 3,248 4,015 3,868 3.803 4,111 3,788 3,595 3,751 3,850 38 Time1 3,744 4,823 6,524 6,996 7,065 7,196 7,292 7,453 7,490 7,617 39 U.S. Treasury bills and certificates. 277 325 198 248 201 180 167 151 328 404 40 Other short-term liabilities5 1,664 1,604 1,854 1,896 1.804 1,906 2,367 2,177 2,116 2,155 41 Payable in foreign currencies. 639 549 719 858 805 647 662 945 852 712 1 Excludes negotiable time certificates of deposit, which are included 5 Principally bankers acceptances, commercial paper, and negotiable in "Other short-term liabilities." time certificates of deposit. 2 Includes nonmarketable certificates of indebtedness and Treasury 6 Foreign central banks and foreign central governments and their bills issued to official institutions of foreign countries. agencies, and Bank for International Settlements. 3 Includes liabilities of U.S. banks to their foreign branches, liabilities 7 Excludes central banks, which are included in "Official institutions." of U.S. agencies and branches of foreign banks to their head offices and foreign branches of their head offices, bankers acceptances, commercial NOTE.—"Short-term obligations" are those payable on demand, or paper, and negotiable time certificates of deposit. having an original maturity of 1 year or less. 4 Principally the International Bank for Reconstruction and Development, and the Inter-American and Asian Development Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • November 1977 3.16 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States By Country Millions of dollars, end of period 1977 Area and country 1974 1975 1976 Mar. Apr. May June July Aug.f Sept.^ 1 Total 94,771 94,338 108,990 106,152 111,002 114,449 113,432 117,216 110,595 2 Foreign countries 91,600 89,046 103,540 101,870 105,715 107,892 107,705 113,382 106,379 3 Europe 48,813 43,988 46,938 44,363 45,049 48,232 49,627 50,604 48,936 4 Austria 607 754 348 499 506 409 465 455 498 5 Belgium-Luxembourg 2,506 2,898 2,275 2,566 2,609 2,641 2,704 2,822 2,691 6 Denmark 369 332 363 569 809 974 1,178 1,154 1,032 7 Finland 266 391 422 312 306 242 258 209 210 8 France 4,287 7,733 4,875 4,817 4,748 4,920 5,089 4,745 4,894 9 Germany 9,429 4,357 5,965 4,677 4,490 4,825 4,271 4,937 4,413 10 Greece 248 284 403 302 350 409 556 573 709 11 Italy 2,577 1,072 3,206 2,361 2,625 3,509 4,636 5,422 5,538 12 Netherlands 3,234 3,411 3,007 3,181 2,924 3,111 3,545 3.397 3,328 13 Norway 1,040 996 785 746 906 999 1.195 1,203 1,140 14 Portugal 310 195 239 209 184 238 163 222 169 15 Spain 382 426 561 555 501 586 667 642 543 16 Sweden 1,138 2,286 1,693 1,717 2,047 2,431 2,390 1,963 1,782 17 Switzerland 10,139 8,514 9,458 8,927 8,798 8,436 9,323 9,162 9,386 18 Turkey 152 118 166 88 81 68 127 101 203 19 United Kingdom 7,584 6,886 10,004 10,368 10,704 11,959 10,701 11,250 10,193 20 Yugoslavia 183 126 188 96 111 102 115 125 142 21 Other Western Europe1 4,073 2,970 2,672 2,144 2,132 2,136 2,009 1,973 1,845 22 U.S.S.R 82 40 51 50 41 66 73 88 70 23 Other Eastern Europe 206 200 255 178 176 172 162 160 151 24 Canada 3,520 3,076 4,784 4,324 4,823 4,869 4,253 4,456 4,631 25 Latin America 11,754 14,942 19,026 19,052 20,437 19,944 20,771 23,038 21,545 26 Argentina 886 1,147 1,538 1,890 1,845 1,971 1,699 1,754 2,022 27 Bahamas 1,054 1,827 2,750 2,184 4,001 2.744 3,777 5,518 4,415 28 Brazil 1,034 1,227 1,432 1,108 1,225 1,175 1,357 1.398 1,233 29 Chile 276 317 335 403 329 432 393 373 353 30 Colombia 305 417 1,017 1,201 1,253 1,172 1.196 1,220 1,164 31 Cuba 7 6 6 6 6 8 7 6 6 32 Mexico 1,770 2,066 2,848 2,747 2,699 2,764 2,832 2,869 2,790 33 Panama 510 1,099 1,140 1,001 1,008 984 941 1,015 954 34 Peru 272 244 257 246 255 219 224 241 273 35 Uruguay 165 172 245 241 263 251 234 242 230 36 Venezuela 3,413 3,289 3,C95 2,927 2,440 2,992 2,463 2,532 2,887 37 Other Latin American republics 1,316 1,494 2,081 2,429 2,284 2,270 2,376 2,238 2,154 38 Netherlands Antilles2 158 129 140 162 173 215 207 158 180 39 Other Latin America 589 1,507 2,142 2,508 2,656 2.745 3,066 3,476 2,886 40 Asia 21,130 21,539 28,472 29,614 30,459 29,933 28,456 30,296 26,911 41 China, People's Republic of (Mainland) 50 123 41 52 52 53 44 49 47 42 China, Republic of (Taiwan) 818 1,025 989 1,067 1,138 1,210 1,196 1,259 925 43 Hong Kong 530 623 892 1,018 993 950 931 1,028 1,047 44 India 261 126 648 537 648 721 814 746 743 45 Indonesia 1,221 369 340 480 887 531 282 782 589 46 Israel 389 386 391 509 436 503 547 484 467 47 Japan 10,931 10,218 14,380 13,271 13,071 12,481 12,387 12,837 11,690 48 Korea 384 390 437 382 430 472 534 633 527 49 Philippines 747 698 627 652 624 634 614 653 561 50 Thailand 333 252 275 312 308 275 257 281 293 51 Middle East oil-exporting countries3.... 4,623 6,461 8,073 9,988 10,399 10,447 9,283 9,976 8,828 52 Other4 845 867 1,372 1,346 1,473 1,655 1,568 1,568 1,195 53 Africa 3,551 3,373 2,300 2,285 2,587 2,753 2,671 3,284 3,177 54 Egypt 103 343 333 251 245 360 314 401 603 55 Morocco 38 68 88 94 91 93 81 73 61 56 South Africa 130 169 143 136 176 184 237 264 192 57 Zaire 84 63 35 39 28 30 30 40 38 58 Oil-exporting countries5 2,814 2,239 1,116 964 1,151 1,205 1,145 1,541 1,430 59 Other4 383 491 585 802 896 881 866 966 853 60 Other countries 2,831 2,128 2,019 2,231 2,361 2,162 1,926 1,704 1,179 61 Australia 2,742 2,014 1,911 2,101 2,223 2,026 1,800 1,553 1,007 62 All other 89 114 108 130 138 135 126 151 172 63 Nonmonetary international and regional organizations 3,171 5,293 5,450 4,283 5,287 6,557 5,728 3,834 4,216 64 International 2,900 5,064 5,091 3,960 4,995 6,230 5,365 3,484 3,816 65 Latin American regional 202 187 136 136 110 118 144 165 187 66 Other regional6 69 42 223 187 182 209 218 186 213 For notes see bottom of p. A59. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A59 3.17 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States Supplemental "Other" Countries 1 Millions of dollars, end of period 1975 1976 1977 1975 1976 Area and country AArreeaa aanndd ccoouunnttrryy Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec. Other Western Europe Other Asia 1 Cyprus 17 6 38 68 58 25 Afghanistan 19 41 57 55 2 Iceland 20 33 43 40 32 26 Bangladesh 50 54 44 54 3 Ireland, Republic of. 29 75 43 236 131 27 49 31 34 13 28 Cambodia 4 4 3 4 Other Eastern Europe 29 30 39 23 37 4 Bulgaria 13 19 14 34 11 30 5 2 2 1 5 Czechoslovakia 11 32 11 19 31 31 180 117 132 140 6 German Democratic Republic. 1188 17 3 11 32 92 77 130 394 7 Hungary 13 11 18 16 33 22 28 34 32 8 Poland 42 66 74 75 64 34 118 74 92 188 9 Rumania 14 44 29 19 23 35 Singapore 215 256 344 280 36 Sri Lanka (Ceylon) 13 13 10 22 Other Latin American republics 37 70 62 66 50 10 Bolivia 93 110 117 121 135 11 Costa Rica 120 124 134 134 170 Other Africa 12 Dominican Republic 214 169 170 274 280 38 Ethiopia (incl. Eritrea) 76 60 72 41 13 Ecuador 157 120 150 319 311 39 13 23 45 27 14 El Salvador 144 171 212 176 214 40 Ivory Coast 11 18 17 10 15 Guatemala 255 260 368 340 392 41 32 19 39 46 16 Haiti 34 38 48 46 68 42 33 53 63 76 17 Honduras 92 99 137 134 210 43 Southern Rhodesia 3 1 1 18 Jamaica 62 41 59 34 43 44 14 12 17 2222 19 Nicaragua 126 133 158 113 133 45 21 30 20 48 20 Paraguay 38 43 50 47 60 46 23 29 34 19 21 Surinam 2. 13 29 17 47 38 22 50 43 22 Trinidad and Tobago . 31 131 44 167 85 48 18 78 14 35 Other Latin America: All Other 23 Bermuda 100 170 197 177 199 49 New Zealand 36 42 48 43 24 British West Indies. 627 1,311 2,284 1,874 2,377 i 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 1977 HHoollddeerr,, aanndd aarreeaa oorr ccoouunnttrryy 11997744 11997755 11997766 Mar. Apr. May June July Aug.f Sept.p 1 Total 1,285 1,812 2,427 2,300 2,505 2,214 2,376 2,322 2,321 2,503 2 Nonmonetary international and regional 822 415 264 267 250 226611 227799 226699 331133 331177 464 1,397 2,163 2,033 2,256 1,953 2,097 2,053 2,008 2,186 4 Official institutions, including central banks. .. 124 931 1,337 1,163 1,358 1,069 1,135 1,081 991 1,090 5 Banks, excluding central banks 261 366 621 648 631 615 650 644 680 708 79 100 204 222 267 270 312 329 337 389 Area or country: 226 330 570 571 583 579 628 634 666644 770066 146 214 346 354 304 297 312 307 308 307 59 66 124 103 131 133 147 162 169 197 19 23 29 37 35 34 35 33 27 27 115 140 230 263 264 254 280 287 304 321 12 Middle East oil-exporting countries1 94 894 1,236 1,091 1,304 1,015 1,130 1,075 972 1,056 7 8 96 67 68 69 18 18 34 52 14 African oil-exporting countries3 * * * * * * * * * * 15 Other Africa 4 1 1 * 2 2 2 6 6 6 23 * * 1 1 1 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. 4 Includes oil-exporting countries until December 1974. 2 Surinam included with Netherlands Antilles until January 1976. 5 Comprises Algeria, Gabon, Libya, and Nigeria. 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 6 Asian, African, and European regional organizations, except BIS, and United Arab Emirates (Trucial States). which is included in "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • November 1977 3.19 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States By Country Millions of dollars, end of period 1977 Area and country 1974 1975 1976 Mar. Apr. May June July Aug.? 1 Total 39,056 50,231 68,908 65,156 65,874 68,160 70,563 69,546 68,641 2 Foreign countries 39,055 50,229 68,903 65,150 65,869 68,156 70,550 69,537 68,630 3 Europe 6,255 8,987 12,122 10,896 12,033 12,913 13,769 12,748 12,342 4 Austria 21 15 44 58 63 43 53 63 53 5 Belgium-Luxembourg 384 352 662 570 470 589 759 505 477 6 Denmark 46 49 85 67 84 84 85 86 100 7 Finland 122 128 139 141 126 130 113 101 103 8 France 673 1,471 1,445 1,337 1,511 1,546 1,455 1,503 1,471 , 9 Germany 589 416 517 535 550 503 575 647 671 10 Greece 64 49 79 54 70 65 51 66 68 11 Italy 345 370 929 870 946 979 875 972 1,012 12 Netherlands 348 300 304 252 385 362 480 471 371 13 Norway 119 71 98 133 142 148 124 121 135 14 Portugal : 20 16 65 98 90 100 97 110 138 15 Spain 196 249 373 291 363 302 284 323 344 16 Sweden 180 167 180 77 116 79 101 153 151 17 Switzerland 335 237 485 496 496 473 484 488 533 18 Turkey 15 86 176 274 291 322 333 333 329 19 United Kingdom 2,580 4,718 6,179 5,230 5,939 6,803 7,485 6,458 6,054 20 Yugoslavia 22 38 41 37 31 55 58 49 35 21 Other Western Europe 22 27 52 56 51 40 51 42 47 22 U.S.S.R 46 103 99 104 108 82 90 88 81 23 Other Eastern Europe 131 nil 171 218 203 209 216 169 169 24 Canada 2,776 2,817 3,049 3,737 3,701 3,554 3,607 3,728 3,978 25 Latin America 12,377 20,532 34,039 32,017 31,789 32,560 33,413 33,367 32,810 26 Argentina 720 1,203 964 914 873 886 904 839 856 27 Bahamas 3,405 7,570 15,336 15,431 14,157 15,127 16,058 15,061 13,624 28 Brazil 1,418 2,221 3,322 2,948 3,186 3,061 3,030 3,026 3,059 29 Chile 290 360 387 357 420 362 349 373 382 30 Colombia 713 689 586 544 565 505 495 514 542 31 Cuba 14 13 13 13 13 13 13 13 13 32 Mexico 1,972 2,802 3,432 3,295 3,302 3,249 3,204 3,469 3,480 33 Panama 505 1,052 1,026 849 753 840 905 1,278 1,463 34 Peru 518 583 704 733 756 741 797 796 784 35 Uruguay 63 51 38 39 35 36 32 38 39 36 Venezuela 704 1,086 1,564 1,241 1,197 1,359 1,348 1,421 1,435 37 Other Latin American republics 852 967 1,125 1,132 1,079 1,176 1,144 1,181 1,233 38 Netherlands Antilles i 62 49 40 41 54 36 69 64 57 39 Other Latin America 1,142 1,885 5,503 4,482 5,401 5,170 5,066 5,295 5,844 40 Asia 16,226 16,057 17,672 16,118 15,760 16,606 16,979 17,025 16,837 41 China, People's Republic of (Mainland).. . 4 22 3 5 3 15 30 13 9 42 China, Republic of (Taiwan) 500 736 991 1,124 1,099 1,221 1,259 1,275 1,236 43 Hong Kong 223 258 271 317 337 298 337 359 272 44 India 14 21 41 32 24 34 39 25 65 45 Indonesia 157 102 76 53 41 39 72 65 56 46 Israel 255 491 551 328 287 280 334 311 323 47 Japan 12,518 10,776 10,997 9,486 9,397 9,591 9,935 9,698 9,623 48 Korea 955 1,561 1,714 1,736 1,807 1,912 1,861 1,981 2,069 49 Philippines 372 384 559 463 490 498 418 372 478 5 5 0 1 T M h i a d i d la le n d E ast oil-exporting countries2 4 3 5 3 8 0 4 5 9 2 9 4 1,3 4 1 2 2 2 1,3 4 8 9 9 1 1,1 4 7 6 0 8 1,4 5 6 1 9 9 1,2 5 7 5 5 8 1,4 5 7 8 6 4 1,3 5 6 8 8 0 52 Other 3 441 684 735 693 638 730 860 867 758 53 Africa 855 1,228 1,481 1,603 1,572 1,559 1,773 1,658 1,720 54 Egypt 111 101 127 149 146 152 141 158 149 55 Morocco 18 9 13 26 35 34 36 46 43 56 South Africa 329 545 763 792 783 778 810 821 799 5 5 7 8 O Za il i - r e e x porting countries4 1 9 1 8 5 23 3 1 4 2 2 5 9 3 34 1 3 0 291 8 243 7 422 9 290 8 357 6 59 Other 3 185 308 296 283 309 344 355 333 365 60 Other countries 565 609 540 779 1,013 963 1,009 1,010 943 61 Australia 466 535 441 663 894 846 878 861 795 62 All other 99 73 99 116 119 117 132 150 148 63 Nonmonetary international and regional organizations 13 10 11 1 Includes Surinam until January 1976. 3 Includes oil-exporting countries until December 1974. 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 4 Comprises Algeria, Gabon, Libya, and Nigeria and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A61 3.20 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Banks in the United States By Type of Claim Millions of dollars, end of period 1977 Type 1974 1975 1976 Mar. Apr. May June July Aug.f Sept.** 1 39,056 50,231 68,908 65,156 65,874 68,160 70,563 69,546 68,641 68,474 2 Payable in dollars 37,859 48,888 67,263 63,259 64,188 66,396 68,784 67,880 66,705 66,731 3 11,287 13,200 18,141 15,766 16,396 16,647 16,074 17,602 16,718 17,851 4 Official institutions, including central banks. 381 613 1,448 784 741 967 983 851 1,018 1,010 5 Banks, excluding central banks 7,332 7,665 11,142 9,1 AO 10,550 10,638 9,985 11,523 10,641 11,496 6 All other, including nonmonetary international and regional organizations 3,574 4,921 55,,555522 5,241 5,105 55,,004411 55,,110055 55,,222288 55,,005599 55,,334455 7 Collections outstanding 5,637 5,467 5,756 6,190 6,316 6,317 6,417 6,352 6,200 6,075 8 Acceptances made for accounts of foreigners... 11,237 11,147 12,358 12,790 12,976 13,045 13,166 13,431 13,533 13,739 9 9,698 19,075 31,007 28,513 28,499 30,387 33,127 30,494 30,255 29,066 10 Payable in foreign currencies 1,196 1,342 1,645 1,897 1,686 1,764 1,779 1,667 1,936 1,743 11 669 656 1,063 1,100 918 864 845 817 1,036 845 12 Foreign government securities, commercial and finance paper 289 314 89 323 332 337777 302 277 233 239 13 238 372 493 474 436 522 631 572 667 660 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 1977 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997744 11997755 11997766 Mar. Apr. May June July Aug.? Sept.27 1 7,179 9,536 11,898 12,204 12,458 12,294 12,191 12,210 12,447 12,626 By type: 2 7,099 9,419 11,750 12,015 12,257 12,091 11,991 12,008 12,229 12,410 3 Loans, total 6,490 8,316 10,097 10,411 10,534 10,'399 10,296 10,323 10,504 10,586 4 Official institutions, including central banks 1,324 1,351 1,407 1,625 1,647 1,642 1,653 1,676 1,702 1,748 5 Banks, excluding central banks 929 1,567 22,,223322 2,194 2,193 22,,227733 22,,226600 22,,223388 22,,226677 22,,331100 6 All other, including nonmonetary international and regional organizations 4,237 5,399 6,458 6,591 6,693 6,484 6,383 6,408 6,535 6,528 7 Other long-term claims 609 1,103 1,653 1,604 1,723 1,693 1,695 1,685 1,725 1,824 8 Payable in foreign currencies 80 116 148 190 201 202 200 202 218 216 By area or country: 9 Europe 1,908 2,704 3,314 3,616 3,698 3,650 3,687 3,606 3,665 3,687 10 Canada 501 555 637 566 558 501 483 485 455 456 11 Latin America 2,614 3,468 4,870 4,911 4,990 5,042 5,016 5,045 5,224 5,398 12 1,619 1,795 1,904 1,896 1,933 1,884 1,832 1,862 1,860 1,870 13 Japan 258 296 382 417 416 420 410 391 371 358 14 Middle East oil-exporting countries1 384 220 146 152 149 149 151 155 170 168 15 Other Asia 2 977 1,279 1,376 U327 1,368 1,316 1,271 1,317 1,319 1,344 16 Africa 366 747 890 890 953 898 860 857 898 873 17 Oil-exporting countries3 62 151 271 211 228 213 213 191 219 221 18 Other4 305 596 619 678 725 685 647 666 679 651 19 All other countries5 171 267 282 327 327 319 313 353 344 342 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 • November 1977 3.22 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1976 1977 AAsssseett aaccccoouunntt 11997744 11997755 Dec.' Feb.r Mar.r Apr.r Mayr Juner July Aug.® All foreign countries 1 Total, all currencies 151,905 176,493 219,420 215,769 223,020 223,222 229,542 236,480 235,637 235,195 2 Claims on United States 6,900 6,743 7,887 6,666 7,054 8,674 7,359 7,398 10,681 8,748 3 Parent bank 4,464 3,665 4,323 3,361 3,399 5,276 3,928 3,610 7,134 5,188 4 Other 2,435 3,078 3,564 3,306 3,655 3,398 3,430 3,788 3,547 3,560 5 Claims on foreigners 138,712 163,391 204,488 201,665 208,547 207,575 214,786 221,667 217,458 218,897 6 Other branches of parent bank. 27,559 34,508 45,955 47,979 48,621 48,164 49,464 52,364 48,012 47,909 7 Other banks 60,283 69,206 83,765 77,923 81,692 79,782 83,937 86,930 84,738 85,951 8 Official institutions 4,077 5,792 10,609 11,256 11,885 12,517 13,045 13,194 13,572 13,820 9 Nonbank foreigners 46,793 53,886 64,159 64,508 66,349 67,112 68,340 69,180 71,136 71,217 10 Other assets 6,294 6,359 7,045 7,437 7,419 6,973 7,397 7,414 7,497 7,550 11 Total payable in U.S. dollars 105,969 132,901 167,695 165,307 172,141 172,134 176,603 182,396 179,647 179,628 12 Claims on United States 6,603 6,408 7,593 6,379 6,655 8,300 6,949 6,984 10,263 8,304 13 Parent bank 4,428 3,628 4,264 3,316 3,352 5,232 3,903 3,590 7,095 5,118 14 Other 2,175 2,780 3,330 3,063 3,303 3,068 3,047 3,393 3,168 3,186 15 Claims on foreigners 96,209 123,496 156,898 155,305 161,961 160,531 166,162 172,011 166,059 167,721 16 Other branches of parent bank 19,688 28,478 37,909 40,034 40,900 40,300 41,350 43,910 39,272 39,587 17 Other banks 45,067 55,319 66,331 60,909 64,613 63,061 66,319 68,858 66,250 67,223 18 Official institutions 3,289 4,864 9,018 9,920 10,587 11,174 11,682 11,758 12,110 12,223 19 Nonbank foreigners 28,164 34,835 43,640 44,442 45,862 45,996 46,810 47,486 48,427 48,689 20 Other assets 3,157 2,997 3,204 3,623 3,525 3,303 3,492 3,401 3,325 3,603 United Kingdom 21 Total, all currencies 69,804 74,883 81,466 78,708 81,268 80,150 83,178 84,734 83,484 83,315 22 Claims on United States 3,248 2,392 3,354 1,772 2,311 2,541 2,714 2,450 3,129 2,307 23 Parent bank 2,472 1,449 2,376 1,011 1,302 1,698 1,850 1,553 2,249 1,397 24 Other 776 943 978 761 1,009 843 863 897 881 911 25 Claims of foreigners 64,111 70,331 75,859 74,713 76,865 75,559 78,333 80,087 78,083 78,643 26 Other branches of parent bank.. 12,724 17,557 19,753 21,450 21,091 21,707 21,097 22,079 20,534 19,615 27 Other banks 32,701 35,904 38,089 35,517 37,098 35,585 38,660 39,199 38,147 39,209 28 Official institutions 788 881 1,274 1,681 1,722 1,728 1,948 1,764 1,863 1,983 29 Nonbank foreigners 17,898 15,990 16,743 16,064 16,954 16,539 16,627 17,045 17,538 17,836 30 Other assets 2,445 2,159 2,253 2,224 2,092 2,050 2,131 2,197 2,272 2,365 31 Total payable in U.S. dollars 49,211 57,361 61,587 60,038 62,353 61,179 63,481 64,841 62,815 62,707 32 3,146 2,273 3,275 1,684 2,173 2,430 2,590 2,338 3,011 2,130 33 Parent bank 2,468 1,445 2,374 1,008 1,297 1,690 1,842 1,547 2,237 1,348 34 Other 678 828 902 676 876 740 748 791 774 782 35 Claims on foreigners 44,694 54,121 57,488 57,492 59,342 57,894 60,030 61,582 58,875 59,431 36 Other branches of parent bank.. 10,265 15,645 17,249 19,114 18,691 19,232 18,619 19,496 17,761 17,151 37 Other banks 23,716 28,224 28,983 26,767 28,373 26,941 29,521 29,972 28,872 29,602 38 Official institutions 610 648 846 1,407 1,426 1,415 1,624 1,437 1,473 1,574 39 Nonbank foreigners 10,102 9,604 10,410 10,204 10,852 10,306 10,267 10,676 10,769 11,104 40 Other assets 1,372 967 824 862 839 855 861 922 930 1,145 Bahamas and Caymans 41 Total, all currencies 31,733 45,203 66,774 66,100 69,526 70,950 71,540 74,853 74,727 73,842 42 Claims on United States 2,464 3,229 3,506 3,687 3,409 4,996 3,540 3,970 6,445 5,431 43 Parent bank 1,081 1,477 1,141 1,384 1,037 2,703 1,251 1,394 4,062 3,023 44 Other 1,383 1,752 2,365 2,303 2,372 2,293 2,290 2,576 2,383 2,408 45 Claims on foreigners 28,453 41,040 62,050 60,999 64,783 64,654 66,581 69,528 66,973 67,116 46 Other branches of parent bank 3,478 5,411 8,144 7,815 9,060 8,095 8,703 9,638 7,586 8,250 47 Other banks 11,354 16,298 25,354 23,435 25,339 25,234 25,588 27,372 25,967 25,475 48 Official institutions 2,022 3,576 7,101 7,225 7,495 7,784 8,062 8,344 8,628 8,591 49 Nonbank foreigners 11,599 15,756 21,451 22,523 22,890 23,540 24,228 24,174 24,791 24,800 50 Other assets 815 933 1,217 1,413 1,333 1,300 1,419 1,356 1,309 1,295 51 Total payable in U.S. dollars 28,726 41,887 62,705 61,571 64,946 66,366 66,550 69,930 69,548 68,767 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A63 3.22 Continued 1976 1977 LLiiaabbiilliittyy aaccccoouunntt 1974 1975 Dec.r Feb.'" Mar.r Apr. r Mayr June7" July Aug.?3 All foreign countries 52 Total, all currencies 151,905 176,493 219,420 215,769 223,020 223,222 229,542 236,480 235,637 235,194 53 To United States 11,982 20,221 32,721 30,128 34,008 33,054 34,792 37,242 37,713 35,482 54 Parent bank 5,809 12,165 19,775 18,879 20,527 18,256 20,497 22,825 19,670 18,559 55 Other 6,173 8,057 12,946 11,249 13,481 14,798 14,295 14,416 18,043 16,923 56 To foreigners 132,990 149,815 179,953 178,760 182,120 183,203 187,619 191,822 189,347 191,206 57 Other branches of parent bank 26,941 34,111 44,370 46,477 47,615 46,386 48,137 50,291 47,015 48.777 58 Other banks 65,675 72,259 83,878 78,333 80,071 82,180 84,114 84,263 86,919 86,361 59 Official institutions 20,185 22,773 25,829 26,658 26,438 26,150 27,328 28,247 27,084 27.778 60 Nonbank foreigners 20,189 20,672 25,877 27,291 27,996 28,486 28,040 29,021 28,329 28,290 61 Other liabilities 6,933 6,456 6,747 6,882 6,893 6,965 7,130 7,416 8,577 8,506 62 Total payable in U.S. dollars 107,890 135,907 173,071 170,379 177,036 177,270 181,813 187,643 184,722 183,888 63 To United States 11,437 19,503 31,934 29,213 33,042 32,068 33,882 36,130 36,751 34,605 64 Parent bank 5,641 11,939 19,561 18,633 20,273 18,011 20,241 22,382 19,396 18,290 65 Other 5,795 7,564 12,373 10,581 12,769 14,057 13,640 13,748 17,355 16,315 66 To foreigners 92,503 112,879 137,610 137,502 140,395 141,479 144,220 147,346 142,957 144,145 67 Other branches of parent bank 19,330 28,217 37,098 39,523 40,646 39,307 40,677 42,739 38,939 41,027 68 Other banks 43,656 51,583 60,617 56,129 57,795 60,025 60,931 60,263 61,771 61,031 69 Official institutions 17,444 19,982 22,878 23,626 23,650 23,241 24,369 25,299 24,159 24,481 70 Nonbank foreigners 12,072 13,097 17,017 18,225 18,305 18,906 18,242 19,045 18,088 17,607 71 Other liabilities 3,951 3,526 3,527 3,663 3,600 3,724 3,712 4,167 5,013 5,137 United Kingdom 72 Total, all currencies 69,804 74,883 81,466 78,708 81,268 80,150 83,178 84,734 83,484 83,315 73 To United States 3,978 5,646 5,997 4,871 6,365 6,272 5,845 6,894 8,537 7,934 74 Parent bank 510 2,122 1,198 1,191 1,537 1,515 1,460 2,150 2,217 1,611 75 Other 3,468 3,523 4,798 3,681 4,828 4,756 4,386 4,743 6,320 6,323 76 To foreigners 63,409 67,240 73,228 71,523 72,665 71,787 75,145 75,683 72,585 72,875 77 Other branches of parent bank 4,762 6,494 7,092 7,981 8,247 7,762 8,569 8,936 7,987 8,395 78 Other banks 32,040 32,964 36,259 32,097 33,835 33,749 35,933 34,960 34,623 34,189 79 Official institutions 15,258 16,553 17,273 18,204 17,711 17,260 17,538 18,086 17,148 17,368 80 Nonbank foreigners 11,349 11,229 12,605 13,242 12,872 13,016 13,106 13,701 12,827 12,922 81 Other liabilities 2,418 1,997 2,241 2,313 2,238 2,091 2,187 2,157 2,362 2,5Q6 82 Total payable in U.S. dollars 49,666 57,820 63,174 61,331 63,346 62,373 64,343 65,735 63,848 63,354 83 To United States 3,744 5,415 5,849 4,704 6,189 6,108 5,688 6,679 8,348 7,676 84 Parent bank 484 2,083 1,182 1,166 1,506 1,498 1,438 2,083 2,184 1,563 85 Other 3,261 3,332 4,666 3,538 4,683 4,610 4,250 4,596 6,164 6,113 86 To foreigners 44,594 51,447 56,372 55,675 56,283 55,390 57,720 58,136 54,550 54,565 87 Other branches of parent bank, 3,256 5,442 5,874 6,906 7,184 6,561 7,333 7,660 6,583 7,132 88 Other banks 20,526 23,330 25,527 22,211 23,845 23,818 25,172 24,135 23,681 23,278 89 Official institutions 13,225 14,498 15,423 16,345 15,817 15,394 15,674 16,301 15,295 15,252 90 Nonbank foreigners 7,587 8,176 9,547 10,213 9,437 9,617 9,541 10,040 8,990 8,903 91 Other liabilities 1,328 959 953 953 874 875 936 920 951 1,113 Bahamas and Caymans 92 Total, all currencies 31,733 45,203 66,774 66,100 69,526 70,950 71,540 74,853 74,727 73,824 93 To United States 4,815 11,147 22,723 21,638 24,299 23,082 25,162 26,625 25,080 23,608 94 Parent bank 2,636 7,628 16,163 15,207 17,110 14,514 16,426 18,366 14,835 14,410 95 Other 2,180 3,520 6,560 6,431 7,190 8,568 8,735 8,258 10,245 9,198 96 To foreigners 26,140 32,949 42,897 43,166 43,841 46,618 45,136 46,477 47,161 47,904 97 Other branches of parent bank, 7,702 10,569 13,801 14,406 14,713 14,123 14,001 14,662 13,736 14,642 98 Other banks 14,050 16,825 21,758 20,981 20,456 23,245 22,296 22,693 24,166 23,878 99 Official institutions 2,377 3,308 3,573 3,339 3,540 3,917 4,130 4,216 4,322 4,592 100 Nonbank foreigners 2,0.11 2,248 3,765 4,439 5,132 5,334 4,709 4,906 4,936 4,792 101 Other liabilities 778 1,106 1,154 1,295 1,385 1,249 1,243 1,751 2,487 2,330 102 Total payable in U.S. dollars 28,840 42,197 63,417 62,382 65,755 67,168 67,518 70,816 70,399 69,221 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • November 1977 3.23 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1977 1977 Country or area 1975 1976 Jan.— Sept.f Mar. Apr. May June July Aug.f Sept.f Holdings (end of period) 4 1 Estimated total... 7,703 15,798 18,748 18,450 19,335 21,787 23,024 27,163 30,663 2 Foreign countries. 7,372 12,765 14,929 16,024 17,200 19,331 20,439 24,223 26,803 3 Europe 1,085 2,330 2,870 3,505 3,624 4,862 5,815 8,070 9,769 4 Belgium-Luxembourg.. 13 14 14 14 16 18 19 19 19 5 Germany 215 764 894 1,112 1,112 1,262 1,266 1,847 1,957 6 Netherlands 16 288 388 388 418 492 503 634 719 7 Sweden 276 191 188 188 148 149 149 155 125 8 Switzerland 55 261 317 397 429 439 485 478 488 9 United Kingdom 363 485 713 1,069 1,181 2,190 3,068 4,607 6,111 10 Other Western Europe. 143 323 354 332 316 312 322 327 344 11 Eastern Europe 4 4 4 4 4 4 4 4 4 12 Canada. 395 256 270 268 271 279 283 288 292 13 Latin America 200 312 405 448 472 481 481 514 517 14 Venezuela 4 149 258 193 193 193 193 193 183 15 Other Latin America republics. 29 35 26 21 21 18 18 18 18 16 Netherlands Antilles 1 161 118 120 119 113 114 114 145 159 17 Asia 5,370 9,323 11,068 11,476 12,528 13,407 13,567 15,059 15,931 18 Japan. 3,271 2,687 3,123 3,174 3,773 4,290 4,314 5,025 5,635 19 Africa 321 543 305 305 279 279 279 279 279 20 All other., * * 11 23 27 23 13 13 17 21 Nonmonetary international and regional organizations 331 3,033 3,819 2,426 2,135 2,456 2,586 2,940 3,859 22 International 322 2,905 3,700 2,318 2,032 2,353 2,440 2,830 3,759 23 Latin American regional. 9 128 118 108 103 103 146 110 100 Transactions (net purchases, or sales (—), during period) 24 Total 1,994 8,095 14,865 936 -298 885 2,451 1,238 4,139 3,500 25 Foreign countries. 1,814 5,393 14,039 1,184 1,094 1,176 2,131 1,108 3,784 2,581 26 Official institutions. 1,612 5,116 13,234 1,047 922 1,152 1,962 1,048 3,691 2,509 27 Other foreign 202 276 805 137 172 24 168 59 93 71 28 Nonmonetary international and regional organizations 180 2,702 826 -248 -1,392 -291 321 130 354 919 MEMO : Oil-exporting countries 29 Middle East 2 1,797 3,887 2,971 408 338 339922 397 -14 528 162 30 Africa 3 170 221 -264 -51 --2266 1 Includes Surinam until January 1976. 4 Estimated official and private holdings of marketable U.S. Treasury 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, securities with an original maturity of more than 1 year. Data are based and United Arab Emirates (Trucial States). Data not available until 1975. on a benchmark survey of holdings as of Jan. 31, 1971, and monthly 3 Comprises Algeria, Gabon, Libya, and Nigeria. Data not available transactions reports. Excludes nonmarketable U.S. Treasury bonds and until 1975. notes held by official institutions of foreign countries. 3.24 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1977 AAsssseettss 11997744 11997755 11997766 Apr. May June July Aug. Sept. Oct. 1 Deposits 418 353 352 305 436 379 468 534 382 425 Assets held in custody: 2 3 E U a .S r . m T a r r e k a e s d u r g y o l s d e 2 c urities1 5 1 5 6 , , 6 83 0 8 0 6 1 0 6 , , 0 7 1 4 9 5 6 1 6 6 , , 5 4 3 1 2 4 7 1 3 6 , , 2 2 6 8 1 2 7 1 3 6 , , 9 22 6 1 4 7 1 4 6 , , 0 1 9 8 8 4 7 1 5 6 , , 4 1 4 7 3 9 7 1 5 6 , , 9 1 7 1 6 7 7 1 9 6 , , 2 0 8 7 5 3 8 1 3 5 , , 8 98 3 8 2 1 Marketable U.S. Treasury bills, certificates of indebtedness, notes, NOTE.—Excludes deposits and U.S. Treasury securities held for interand bonds; and nonmarketable U.S. Treasury securities payable in dollars national and regional organizations. Earmarked gold is gold held for an?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 1977 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 1975 1976 Jan.- Mar. Apr. May June July Aug.f Sept.f Sept.p U.S. corporate securities Stocks 1 Foreign purchases 15,347 18,227 10,797 1,101 1,135 1,207 1,196 1,373 1,023 1,010 2 Foreign sales 10,678 15,474 8,899 980 913 978 948 1,162 900 845 3 Net purchases, or sales (—) 4,669 2,752 1,733 121 222 229 248 211 123 165 4 Foreign countries 4,651 2,740 1,718 116 222 209 254 209 124 170 5 Europe 2,491 336 647 72 105 128 42 29 37 57 6 France 262 256 1 4 -6 -3 21 -24 -13 5 7 Germany 251 68 110 -4 38 37 12 20 -1 14 8 Netherlands 359 -199 1 -10 -7 27 * -10 -2 -18 9 Switzerland 899 -100 118 30 38 4 -20 5 -7 6 10 United Kingdom 594 340 493 55 47 67 43 57 69 80 11 Canada 361 325 10 9 -5 -33 -3 12 -5 -3 12 Latin America -7 155 89 14 21 17 17 4 1 -3 13 Middle East1 1,640 1,803 916 17 97 92 186 171 95 108 14 Other Asia2 142 117 49 3• 5 4 10 -7 -3 8 15 Africa 10 7 3 * * * * 1 2 16 Other countries 15 -4 5 1 -1 1 2 * -2 1 17 Nonmonetary international and regional organizations 18 12 14 5 1 2200 -7 2 -1 -5 Bonds3 18 Foreign purchases 5,408 5,529 5,620 348 856 609 976 752 670 475 19 Foreign sales 4,642 4,322 2,628 208 245 332 394 286 248 379 20 Net purchases, or sales (—) 766 1,207 2,992 140 611 277 582 467 421 96 21 Foreign countries 1,795 1,248 2,950 112 566 308 569 499 396 98 22 Europe 113 92 1,272 75 100 99 314 232 130 33 23 France 82 40 22 -2 -5 -7 -3 1 1 1 24 Germany -6 -50 39 * -4 13 12 12 1 3 25 Netherlands -8 -29 51 -3 -7 -28 57 11 0 21 26 Switzerland 117 158 178 31 -4 19 17 35 21 12 27 United Kingdom -52 23 1,006 43 106 102 223 197 96 6 28 Canada 128 96 135 -3 6 1 7 30 13 15 29 Latin America 31 94 52 1 3 * 2 12 18 13 30 Middle East1 1,553 1,179 1,338 48 454 192 235 153 150 54 31 Other Asia2 -35 -165 161 -6 4 17 10 72 84 -13 32 Africa 5 -25 -5 -2 * * * * * -3 33 Other countries 1 -21 * * * * * * * * 34 Nonmonetary international and regional organizations -1,030 -41 40 27 45 -31 13 -32 25 -2 Foreign securities 35 Stocks, net purchases, or sales (—) -189 -322 -590 -62 -40 -7 -56 -265 -63 30 36 Foreign purchases 1,541 1,937 1,528 187 157 204 173 159 169 168 37 Foreign sales 1,730 2,259 2,116 249 197 211 229 423 232 138 38 Bonds, net purchases, or sales (—) -6,325 -8,729 -4,024 -56 -11 -866 -765 -205 -989 -685 39 Foreign purchases 2,383 4,932 6,215 628 606 607 636 786 852 701 40 Foreign sales 8,708 13,661 10,239 684 617 1,473 1,401 991 1,841 1,386 41 Net purchases, or sales (—) of stocks and bonds.. -6,515 -9,050 -4,612 -118 -51 -873 -821 -467 -1,052 -655 42 Foreign countries -4,323 -7,155 -3,163 -149 4 -201 -692 -393 -213 -649 43 Europe -53 -844 -866 54 2 -124 -271 -267 -8 -24 44 Canada -3,202 -5,246 -2,273 -83 -94 -128 -292 -241 -255 -573 45 Latin America -306 1 199 35 69 -13 -39 52 -7 35 46 Asia -622 -700 -171 -155 25 62 -94 57 55 -7 47 Africa 15 48 6 * * * 3 1 * 1 48 Other countries -155 -416 -59 * 2 2 2 5 1 -81 49 Nonmonetary international and regional organizations -2,192 -1,898 -1,452 31 -55 -673 -129 -76 -839 -6 1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, 3 Includes State and local government securities, and securities of U.S. Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial Govt, agencies and corporations. AJso 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 • November 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 Juner Sept.r Dec.r Mar. June?5 Juner Sept. ' Dec.r Mar. Junef Liabilities to foreigners Claims on foreigners 1 Total 6,266 6,408 6,582 6,551 6,386 13,820 13,164 14,156 14,943 16,140 By type: 2 Payable in dollars 5,640 5,671 5,870 5,787 5,737 12,823 12,104 13,169 13,943 15,018 3 Payable in foreign currencies 626 737 712 764 648 997 11,,006600 987 11,,000000 11,,112222 4 Deposits with banks abroad in reporter's 558 592 442 431 448 55 Other 443399 446688 554455 556699 667744 By area or country: 6 Foreign countries 66,,002200 66,,222222 6,374 6,359 6,216 13,819 13,163 14,155 14,940 16,139 7 Europe 2,273 2,387 2,227 2,126 2,208 5,326 5,151 5,269 5,218 5,808 8 Austria 13 15 10 9 10 17 21 21 23 27 9 Belgium-Luxembourg 233 183 166 168 138 193 195 162 170 218 10 Denmark 12 13 7 15 14 30 26 56 48 40 11 Finland 1 17 2 2 10 131 135 77 40 90 12 France 159 185 200 163 157 363 413 426 422 402 13 Germany 228 256 174 175 163 358 492 378 367 377 14 Greece 29 28 48 80 73 47 56 51 90 86 15 Italy 116 148 131 135 154 335 358 384 473 439 16 Netherlands 170 141 141 168 205 146 142 166 172 182 17 Norway 22 24 29 37 33 52 43 51 42 42 18 Portugal 3 5 13 23 20 22 28 40 35 30 19 Spain 51 36 40 52 68 432 336 369 325 322 20 Sweden 24 35 34 36 36 84 62 90 93 92 21 Switzerland 213 243 190 214 236 270 253 241 154 179 22 Turkey 20 16 13 12 21 31 23 25 32 37 23 United Kingdom 839 888 878 689 730 2,602 2,365 2,445 2,475 3,027 24 Yugoslavia 108 113 123 113 110 28 30 26 30 27 25 Other Western Europe 7 8 7 6 6 14 17 20 18 15 26 U.S.S.R 10 19 9 15 16 96 81 156 105 76 27 Other Eastern Europe 16 14 13 13 10 75 79 85 103 102 28 Canada 372 327 379 403 420 2,201 2,196 2,464 2,432 2,570 29 Latin America 1,095 1,028 1,037 1,118 1,017 3,055 2,831 3,579 4,400 4,928 30 Argentina 49 48 44 42 50 43 39 44 46 51 31 Bahamas 330 251 260 256 216 1,150 940 1,384 1,869 2,231 32 Brazil 97 58 72 49 37 462 417 682 535 457 33 Chile 15 16 17 16 24 46 26 34 35 28 34 Colombia 19 11 13 18 22 57 66 59 7755 7722 35 Cuba 1 1 11 36 Mexico 72 74 99 118 117 332 352 332 317 301 37 Panama 12 10 34 12 10 101 83 74 105 120 38 Peru 31 32 25 24 21 39 35 42 32 28 39 Uruguay 3 3 4 4 3 4 22 5 6 5 40 Venezuela 184 222 219 260 208 186 215 194 214 245 41 Other Latin American republics 102 104 141 148 140 188 182 276 237 223366 42 Netherlands Antilles 1 55 68 10 11 17 10 9 9 14 88 43 Other Latin America 127 129 100 160 151 436 444 441 914 1,146 44 1,705 1,978 2,052 2,057 1,891 2,703 2,401 2,282 2,314 22,,331188 45 China, People's Republic of (Mainland) 1 1 1 3 2 16 5 3 7 88 46 China, Republic of (Taiwan) 122 127 110 113 138 212 134 197 130 131 47 Hong Kong 28 33 40 42 27 104 88 96 107 93 48 India 10 11 23 39 41 51 53 55 35 51 49 Indonesia 115 131 110 94 80 143 179 185 206 184 50 Israel 34 32 37 37 45 53 48 41 51 70 51 Japan 272 247 193 172 184 1,170 1,010 912 969 934 52 Korea 60 85 76 96 95 129 142 117 130 158 53 Philippines 18 28 53 59 73 114 93 86 84 87 54 Thailand 11 23 24 19 11 19 23 22 27 22 55 Other Asia 1,035 1,260 1,385 1,383 1,196 692 625 568 569 582 56 Africa 532 435 603 588 587 378 406 392 429 368 57 Egypt 22 25 27 29 33 28 36 28 70 24 58 Morocco 32 42 43 27 70 12 9 10 12 9 59 South Africa 88 65 54 33 27 83 78 87 80 69 60 Zaire 12 24 36 39 39 25 28 21 19 17 61 Other Africa 377 279 444 460 418 230 255 247 248 248 62 Other countries 44 67 76 68 92 155 178 170 147 145 63 Australia 32 50 57 49 72 100 112 105 111 106 64 All other 12 18 19 19 20 56 67 65 36 40 65 Nonmonetary international and regional organizations 246 186 208 192 170 1 1 1 2 1 i 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 1977 Type and country 1973 1974 1975 l976r Mar.r Apr.r May r Juner July Aug.** 1 Total 3,185 3,357 3,799 5,468 6,451 6,441 7,481 7,685 7,357 7,739 By type: 2 Payable in dollars 2,641 2,660 3,042 4,788 5,776 5,707 6,787 6,895 6,619 6,976 3 Deposits 2,604 2,591 2,710 4,415 5,321 5,125 6,264 6,424 6,195 6,475 4 Short-term investments 37 69 332 373 455 582 523 471 424 501 5 Payable in foreign currencies 544 697 757 675 675 733 695 790 739 764 6 Deposits 431 429 511 447 373 423 361 389 352 394 7 Short-term investments 1. 113 268 246 228 302 310 334 401 387 370 By country: 8 United Kingdom 1,128 1,350 1,306 1,712 1,879 1,713 1,920 2,318 2,123 2,194 9 Canada 775 967 1,156 1,356 1,518 1,616 1,645 1,652 1,725 1,930 10 Bahamas 597 391 546 1,810 1,782 1,736 2,414 2,114 2,113 2,225 11 Japan 336 398 343 146 147 155 158 184 149 139 12 All other 349 252 446 726 1,125 1,221 1,344 1,417 1,247 1,251 1 Negotiable and other readily transferable foreign obligations payable NOTE.—Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 3.26. 3.28 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1976 r 1977 1976 r 1977 AArreeaa aanndd ccoouunnttrryy June Sept. Dec. Mar. June June Sept. Dec. Mar. June*> Liabilities to foreigners Claims on foreigners 1 Total 4,008 3,791 3,567 3,504 3,331 4,982 5,006 4,925 4,894 4,827 2 Europe 3,036 2,858 2,725 2,655 2,499 929 901 853 847 829 425 406 396 391 370 35 73 72 84 76 4 Netherlands 233 290 277 272 262 211 211 156 154 147 5 Switzerland 467 327 260 178 177 56 54 57 53 43 6 United Kingdom 1,516 1,470 1,420 1,388 1,274 310 245 240 207 221 7 Canada 166 111 89 82 81 1,511 1,507 1,530 1,475 1,486 8 Latin America 250 257 270 272 275 1,609 1,637 1,521 1,489 1,457 9 Bahamas 184 157 163 163 167 37 37 36 34 34 10 Brazil 5 5 5 5 7 165 172 133 125 125 11 Chile 1 1 1 1 1 306 244 248 210 208 12 Mexico 6 7 17 21 23 187 219 195 180 178 13 Asia 489 498 423 432 406 712 739 775 817 831 14 Japan 388 402 397 413 384 85 80 77 96 108 15 Africa 2 2 2 2 3 163 165 187 199 158 16 All other * 64 64 58 59 67 59 58 58 67 67 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • November 1977 3.29 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on Oct. 31, 1977 Rate on Oct. 31, 1977 Rate on Oct. 31, 1977 Country Country Country Per Month Per Month Per Month cent effective cent effective cent effective Argentina 18.0 Feb. 1972 France 9.5 Aug. 1977 Norway 6.0 Sept. 1976 Austria.. . 5.5 June 1977 Germany, Fed. Rep. of. 3.5 Sept. 1975 Sweden 8.0 Oct. 1976 Belgium. . 6.0 June 1977 Italy 11.5 Aug. 1977 Switzerland...... 1.5 July 1977 Brazil 28.0 May 1976 Japan 4.25 Sept. 1977 United Kingdom 5.5 Oct. 1977 Canada.. 7.5 May 1977 Mexico 4.5 June 1942 Venezuela 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 May June July Aug. Sept. Oct. 1 Euro-dollars 11.01 7.02 5.58 5.80 5.78 5.80 6.30 6.56 7.14 2 United Kingdom. 13.34 10.63 11.35 7.63 7.81 7.77 6.91 6.03 5.05 3 Canada 10.47 8.00 9.39 7.44 7.16 7.27 7.44 7.31 7.23 4 Germany 9.80 4.87 4.19 4.43 4.24 4.20 4.04 4.07 4.06 5 Switzerland. 3.01 1.45 3.98 3.80 3.01 2.41 2.37 2.23 6 Netherlands. 5.17 7.02 3.03 2.84 3.05 3.48 4.39 4.55 7 France 7.91 8.65 9.13 9.01 8.67 8.51 8.38 8.41 8 Italy 10.37 16.32 15.49 14.65 14.09 13.94 12.42 12.05 9 Belgium. 6.63 10.25 6.94 6.88 6.85 6.20 6.20 6.25 10 Japan... 11.64 7.70 5.75 6.05 6.25 6.24 5.32 5.25 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 CCoouunnttrryy//ccuurrrreennccyy 11997744 11997755 11997766 May June July Aug. Sept. Oct. 1 Australia/dollar 143.89 130.77 122.15 110.31 110.80 112.20 110.47 110.37 111.90 2 Austria/shilling 5.3564 5.7467 5.5744 5.9533 5.9647 6.1691 6.0792 6.0377 6.1567 3 Belgium/franc 2.5713 2.7253 2.5921 2.7700 2.7713 2.8208 2.8107 2.7910 2.8229 4 Canada/dollar 102.26 98.30 101.41 95.364 94.549 94.230 93.028 93.168 91.010 5 Denmark/krone 16.442 17.437 16.546 16.638 16.544 16.769 16.590 16.188 16.359 6 Finland/markka 26.565 27.285 25.938 24.530 24.524 24.902 24.801 23.977 24.139 7 France/franc 20.805 23.354 20.942 20.190 20.240 20.607 20.415 20.314 20.574 8 Germany/deutsche mark... 38.723 40.729 39.737 42.394 42.453 43.827 43.168 43.034 43.904 9 India/rupee 12.460 11.926 11.148 11.320 11.286 11.342 11.465 11.450 11.605 10 Ireland/pound 234.03 222.16 180.48 171.85 171.91 172.26 173.97 174.31 177.11 11 Italy/lira .15372 .15328 .12044 .11279 .11295 .11330 .11332 .11318 .11353 12 Japan/yen .34302 .33705 .33741 .36046 .36652 .37756 .37499 .37486 .39263 13 Malaysia/ringgit 41.682 41.753 39.340 40.255 40.270 40.443 40.606 40.600 41.088 14 Mexico/peso 8.0000 8.0000 6.9161 4.3890 4.3582 4.3528 4.3629 4.3776 4.4069 15 Netherlands/guilder 37.267 39.632 37.*846 40.7009 40.326 40.983 40.831 40.604 41.048 16 New Zealand/dollar 140.02 121.16 99.115 96.002 96.264 97.160 96.826 96.812 98.152 17 Norway/krone 18.119 19.180 18.327 18.956 18.915 19.023 18.863 18.226 18.232 18 Portugal/escudo 3.9506 3.9286 3.3159 2.5818 2.5802 2.5953 2.5678 2.4606 2.4601 19 South Africa/rand 146.98 136.47 114.85 115.00 114.88 114.98 115.00 115.00 115.04 20 Spain/peseta 1.7337 1.7424 1.4958 1.4491 1.4404 1.2382 1.1804 1.1824 1.1902 21 Sri Lanka/rupee 14.978 14.385 11.908 13.700 13.664 13.700 13.721 12.301 11.618 22 Sweden/krona 22.563 24.141 22.957 22.962 22.625 22.991 22.472 20.602 20.846 23 Switzerland/franc 33.688 38.743 40.013 39.694 40.170 41.487 41.523 42.115 43.909 24 United Kingdom/pound.. . 234.03 222.16 180.48 171.85 171.91 172.26 173.97 174.31 177.11 MEMO : 25 United States/dollar i 84.11 82.20 89.68 89.99 89.91 88.67 89.10 89.52 88.38 i 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

A 69 Guide to Tabular Presentation and Statistical Releases GUIDE TO TABULAR PRESENTATION SYMBOLS AND ABBREVIATIONS p Preliminary SMSA's Standard metropolitan statistical areas r Revised REIT's Real estate investment trusts rp Revised preliminary * Amounts insignificant in terms of the partice Estimated ular unit (e.g., less than 500,000 when c Corrected the unit is millions) n.e.c. Not elsewhere classified (1) Zero, (2) no figure to be expected, or Rp's Repurchase agreements (3) figure delayed or, (4) no change (when IPC's Individuals, partnerships, and corporations figures are expected in percentages). GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) obligations of the Treasury. "State and local govt." a negative figure, or (3) an outflow. also includes municipalities, special districts, and other "U.S. Govt, securities" may include guaranteed political subdivisions. issues of U.S. Govt, agencies (the flow of funds figures In some of the tables details do not add to totals also include not fully guaranteed issues) as well as direct because of rounding. STATISTICAL RELEASES LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1977 A-78 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

> o Board of Governors of the Federal Reserve System ARTHUR F. BURNS, Chairman STEPHEN S. GARDNER, Vice Chairman HENRY C. WALLICH PHILIP E. COLDWELL PHILIP C. JACKSON, JR. J. CHARLES PARTEE DAVID M. LILLY OFFICE OF OFFICE OF BOARD MEMBERS OFFICE OF STAFF STAFF DIRECTOR FOR MANAGEMENT DIRECTOR FOR MONETARY POLICY THOMAS J. O'CONNELL, Counsel to the JOHN M. DENKLER, Staff Director Chairman STEPHEN H. AXILROD, Staff Director ROBERT J. LAWRENCE, Deputy Staff MILTON W. HUDSON, Assistant to the ARTHUR L. BROIDA, Deputy Staff Director Director Chairman MURRAY ALTMANN, Assistant to the Board 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 DIVISION OF DATA PROCESSING JAMES L. KICHLINE, Director CHARLES L. HAMPTON, Director JOSEPH S. ZEISEL, Deputy Director BRUCE M. BEARDSLEY, Associate Director EDWARD C. ETTIN, Associate Director UYLESS D. BLACK, Assistant Director JOHN H. KALCHBRENNER, Associate Director GLENN L. CUMMINS, Assistant Director LEGAL DIVISION JOHN J. MINGO, Senior Research Division ROBERT J. ZEMEL, Assistant Director Officer JOHN D. HAWKE, JR., General Counsel ELEANOR J. STOCKWELL, Senior Research BALDWIN B. TUTTLE, Deputy General Division Officer Counsel JAMES R. WETZEL, Senior Research Division DIVISION OF PERSONNEL ROBERT E. MANNION, Assistant General Officer Counsel ROBERT A. EISENBEIS, Associate Research DAVID L. SHANNON, Director ALLEN L. RAIKEN, Assistant General Counsel Division Officer JOHN R. WEIS, Assistant Director CHARLES R. MCNEILL, Assistant to the JARED J. ENZLER, Associate Research CHARLES W. WOOD, Assistant Director General Counsel Division Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICE OF THE CONTROLLER DIVISION OF CONSUMER AFFAIRS JOHN D. PAULUS, Associate Research Division Officer JOHN KAKALEC, Controller JANET O. HART, Director J. CORTLAND G. PERET, Associate Research EDWARD T. MULRENIN, Assistant Controller NATHANIEL E. BUTLER, Associate Director Division Officer JERAULD C. KLUCKMAN, Associate Director RICHARD H. PUCKETT, Associate Research Division Officer DIVISION OF ADMINISTRATIVE SERVICES t HELMUT F. WENDEL, Associate Research Division Officer WALTER W. KREIMANN, Director OFFICE OF THE SECRETARY JOHN L. GRIZZARD, Assistant Director JAMES M. BRUNDY, Assistant Research JOHN D. SMITH, Assistant Director THEODORE E. ALLISON, Secretary Division Officer GRIFFITH L. GARWOOD, Deputy Secretary ROBERT M. FISHER, Assistant Research OFFICE OF STAFF DIRECTOR FOR *ROBERT E. MATTHEWS, Assistant Secretary Division Officer FEDERAL RESERVE BANK ACTIVITIES STEPHEN P. TAYLOR, Assistant Research Division Officer WILLIAM H. WALLACE, Staff Director DIVISION OF BANKING LEVON H. GARABEDIAN, Assistant Director SUPERVISION AND REGULATION DIVISION OF FEDERAL RESERVE BANK EXAMINATIONS AND BUDGETS JOHN E. RYAN, Director tFREDERiCK 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 SAMUEL PIZER, Senior International Division SAMUEL H. TALLEY, Assistant Director Officer JAMES R. KUDLINSKI, Director WILLIAM TAYLOR, Assistant Director WALTER ALTHAUSEN, Assistant Director 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

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

73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Louis W. Cabot Frank E. Morris Robert M. Solow James A. Mcintosh NEW YORK* 10045 Frank R. Milliken Paul A. Volcker Robert H. Knight Thomas M. Timlen Buffalo 14240 Paul A. Miller John T. Keane PHILADELPHIA 19105 John W. Eckman David P. Eastburn Werner C. Brown 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; Utica, New York 13424; 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 MONETARY STATISTICS, 1914-1941. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE (Reprint of Part 1 only) 1976. 682 pp. $5.00. STUDY OF THE U.S. GOVERNMENT SECURITIES BANKING AND MONETARY STATISTICS, 1941-1970. MARKET. 1969. 48 pp. $.25 each; 10 or more to 1976. 1,168 pp. $15.00. one address, $.20 each. ANNUAL STATISTICAL DIGEST, 1970-75. 1976. 339 pp. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE $4.00 per copy for each paid subscription to Fed- GOVERNMENT SECURITIES MARKET: STAFF STUDeral Reserve Bulletin. All others, $5.00 each. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- to one address, $.40 each. PART 2. 1971. 153 pp. tion includes one issue of Historical Chart Book. and PART 3. 1973. 131 pp. Each volume $1.00; $12.00 per year or $1.25 each in the United States, 10 or more to one address, $.85 each. its possessions, Canada, and Mexico; 10 or more OPEN MARKET POLICIES AND OPERATING PROCEof same issue to one address, $1.00 each. Else- DURES—STAFF STUDIES. 1971. 218 pp. $2.00 where, $15.00 per year or $1.50 each. each; 10 or more to one address, $1.75 each. HISTORICAL CHART BOOK. Issued annually in Sept. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT Subscription to Monthly Chart Book includes one MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. issue. $1.25 each in the United States, its posses- 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; sions, Canada, and Mexico; 10 or more to one 10 or more to one address, $2.50 each. address, $1.00 each. Elsewhere, $1.50 each. THE ECONOMETRICS OF PRICE DETERMINATION CON- CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per FERENCE, October 30-31, 1970, Washington, D.C. year or $.40 each in the United States, its posses- 1972. 397 pp. Cloth ed. $5.00 each; 10 or more sions, Canada, and Mexico; 10 or more of same to one address, $4.50 each. Paper ed. $4.00 each; issue to one address, $13.50 per year or $.35 each. 10 or more to one address, $3.60 each. Elsewhere, $20.00 per year or $.50 each. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE SELECTED INTEREST AND EXCHANGE RATES—WEEKLY FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. SERIES OF CHARTS. Weekly. $15.00 per year or 487 pp. $4.00 each; 10 or more to one address, $.40 each in the United States, its possessions, $3.60 each. Canada, and Mexico; 10 or more of same issue LENDING FUNCTIONS OF THE FEDERAL RESERVE to one address, $13.50 per year or $.35 each. BANKS. 1973. 271 pp. $3.50 each; 10 or more Elsewhere, $20.00 per year or $.50 each. to one address, $3.00 each. THE FEDERAL RESERVE ACT, as amended through De- INTRODUCTION TO FLOW OF FUNDS. 1975. 64 pp. $.50 cember 1976, with an appendix containing provi- each; 10 or more to one address, $.40 each. sions of certain other statutes affecting the Federal IMPROVING THE MONETARY AGGREGATES (Report of the Reserve System. 307 pp. $2.50. 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 MEASURES OF SECURITY CREDIT. 12/70. REVISED MEASURES OF MANUFACTURING CAPACITY (Short pamphlets suitable for classroom use. Multiple UTILIZATION. 10/71. copies available without charge.) REVISION OF BANK CREDIT SERIES. 12/71. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF THE EQUAL CREDIT OPPORTUNITY ACT AND . . . AGE U.S. BANKS. 2/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— DOCTORS, LAWYERS, SMALL RETAILERS, AND REVISED SERIES. 7/72. OTHERS WHO MAY PROVIDE INCIDENTAL CREDIT YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. WOMEN BANKS. 10/72. FAIR CREDIT BILLING REVISION OF CONSUMER CREDIT STATISTICS. 10/72. IF YOU BORROW TO BUY STOCK ONE-BANK HOLDING COMPANIES BEFORE THE 1970 U.S. CURRENCY AMENDMENTS. 12/72. WHAT TRUTH IN LENDING- MEANS TO YOU YIELDS ON RECENTLY OFFERED CORPORATE BONDS. 5/73. CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMER- STAFF ECONOMIC STUDIES CIAL BANKS. 9/73. RATES ON CONSUMER INSTALMENT LOANS. 9/73. Studies and papers on economic and financial subjects NEW SERIES FOR LARGE MANUFACTURING CORPORAthat are of general interest in the field of economic TIONS. 10/73. research. U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. SUMMARIES ONLY PRINTED IN THE BULLETIN INFLATION AND STAGNATION IN MAJOR FOREIGN IN- (Limited supply of mimeographed copies of full text DUSTRIAL COUNTRIES. 10/74. available upon request for single copies.) THE STRUCTURE OF MARGIN CREDIT. 4/75. NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT THE GROWTH OF MULTIBANK HOLDING COMPANIES: SELECTED LARGE COMMERCIAL BANKS. 4/75. 1956-73, by Gregory E. Boczar. Apr. 1976. 27 RECENT TRENDS IN FEDERAL BUDGET POLICY. 7/75. pp. RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL EXTENDING MERGER ANALYSIS BEYOND THE SINGLE- MARKETS. 10/75. MARKET FRAMEWORK, by Stephen A. Rhoades. MINNIE: A SMALL VERSION OF THE May 1976. 25 pp. MIT-PENN-SSRC ECONOMETRIC MODEL, 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. THE PERFORMANCE OF BANK HOLDING COMPANY- REVISED SERIES FOR MEMBER BANK DEPOSITS AND AFFILIATED FINANCE COMPANIES, by Stephen A. AGGREGATE RESERVES. 4/76. Rhoades and Gregory E. Boczar. Aug. 1977 19 pp. INDUSTRIAL PRODUCTION—1976 Revision. 6/76. GREELEY IN PERSPECTIVE, by Paul Schweitzer and Joshua FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- Greene. Sept. 1977 17 pp. NISMS: A SUMMARY. 6/76. RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF BANKS. 10/76. NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- PRINTED IN FULL IN THE BULLETIN FACTURING AND MATERIALS. 11/76. Staff Economic Studies shown in list below. U.S. INTERNATIONAL TRANSACTIONS IN A RECOVERING ECONOMY. 4/77. REPRINTS BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS IN 1976. 4/77. (Except for Staff Papers, Staff Economic Studies, and CHANGES IN BANK LENDING PRACTICES, 1976. 4/77. some leading articles, most of the articles reprinted do SURVEY OF TERMS OF BANK LENDING—NEW SERIES. not exceed 12 pages.) 5/77. THE COMMERCIAL PAPER MARKET. 6/77. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with CONSUMPTION AND FIXED INVESTMENT IN THE ECO- Frank E. Hopkins and Michael D. Sherman. 11/66. NOMIC RECOVERY ABROAD. 10/77. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN CHANGES IN TIME AND SAVINGS DEPOSITS AT COM- 1960-67. 4/68. MERCIAL BANKS, April-July 1977. 11/77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 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: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 Discount rates at F.R. Banks (See Interest rates) BANKERS balances, 16, 18, 20, 21, 22 Discounts and advances by F.R. Banks (See Loans) (See also Foreigners) Dividends, corporate, 38 Banks for cooperatives, 35 Bonds (See also U.S. Govt, securities): New issues, 36, 37 EMPLOYMENT, 46, 47 Yields, 3 Euro-dollars, 15, 27 Branch banks: Assets and liabilities of foreign branches of U.S. FARM mortgage loans, 41 banks, 62 Farmers Home Administration, 41 Liabilities of U.S. banks to their foreign Federal agency obligations, 4, 11, 12, 13, 34 branches, 23 Federal and Federally sponsored credit agencies, 35 Business activity, 46 Federal finance: Business expenditures on new plant and Debt subject to statutory limitation and equipment, 38 types and ownership of gross debt, 32 Business loans (See Commercial and industrial Receipts and outlays, 30, 31 Treasury operating balance, 30 loans) Federal Financing Bank, 35 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 CAPACITY utilization, 46, 47 Federal home loan banks, 35 Capital accounts: Federal Home Loan Mortgage Corp., 35, 40, 41 Banks, by classes, 16, 17, 19, 20 Federal Housing Administration, 35, 40, 41 Federal Reserve Banks, 12 Federal intermediate credit banks, 35 Central banks, 68 Federal land banks, 35, 41 Certificates of deposit, 23, 27 Federal National Mortgage Assn., 35, 40, 41 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 15, 18, 23, 26 Condition statement, 12 Weekly reporting banks, 20, 21, 22, 23, 24 Discount rates (See Interest rates) Commercial banks: U.S. Govt, securities held, 4, 12, 13, 32, 33 Assets and liabilities, 3, 15-18, 20-23 Federal Reserve credit, 4, 5, 12, 13 Business loans, 26 Federal Reserve notes, 12 Commercial and industrial loans, 24 Federally sponsored credit agencies, 35 Consumer loans held, by type, 42, 43 Finance companies: Loans sold outright, 23 Assets and liabilities, 39 Number, by classes, 16, 17, 19 Busines credit, 39 Real estate mortgages held, by type of holder and Loans, 20, 21, 22, 42, 43 property, 41 Paper, 25, 27 Commercial paper, 3, 24, 25, 27, 39 Financial institutions, loans to, 18, 20-23 Condition statements (See Assets and liabilities) Float, 4 Construction, 46, 50 Flow of funds, 44, 45 Consumer instalment credit, 42, 43 Foreign: Consumer prices, 46, 51 Currency operations, 12 Consumption expenditures, 52, 53 Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Corporations: Exchange rates, 68 Profits, taxes, and dividends, 38 Trade, 55 Security issues, 36, 37, 65 Foreigners: Cost of living (See Consumer prices) Claims on, 60, 61, 66, 67 Credit unions, 29, 42, 43 Liabilities to, 23, 56-59, 64-67 Currency and coin, 5, 16, 18 Currency in circulation, 4, 14 Customer credit, stock market, 28 GOLD: Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Assn., 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • November 1977 HOUSING, new and existing units, 50 REAL estate loans: Banks, by classes, 18, 20-23, 29, 41 INCOME, personal and national, 46, 52, 53 Life insurance companies, 29 Industrial production, 46, 48 Mortgage terms, yields, and activity, 3, 40 Instalment loans, 42, 43 Type of holder and property mortgaged, 41 Insurance companies, 29, 32, 33, 41 Reserve position, basic, member banks, 6 Insured commercial banks, 17, 18, 19 Reserve requirements, member banks, 9 Interbank deposits, 16, 17, 20, 21, 22 Reserves: Interest rates: Commercial banks, 16, 17, 18, 20, 21, 22 Bonds, 3 Federal Reserve Banks, 12 Business loans of banks, 26 Member banks, 3, 4, 5, 15, 16, 18 Federal Reserve Banks, 3, 8 U.S. reserve assets, 55 Foreign countries, 68 Residential mortgage loans, 40 Money and capital market rates, 3, 27 Retail credit and retail sales, 42, 43, 46 Mortgages, 3, 40 Prime rate, commercial banks, 26 SAVING: Time and savings deposits, maximum rates, 10 Flow of funds, 44, 45 International capital transactions of the United National income accounts, 53 States, 56-67 Savings and loan assns., 3, 10, 29, 33, 41, 44 International organization, 56-61, 65-67 Savings deposits {See Time deposits) Inventories, 52 Savings institutions, selected assets, 29 Investment companies, issues and assets, 37 Securities {See also U.S. Govt, securities): Investments (.See also specific types of investments): Federal and Federally sponsored agencies, 35 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Foreign transactions, 65 Commercial banks, 3, 15, 16, 17, 18 New issues, 36, 37 Federal Reserve Banks, 12, 13 Prices, 28 Life insurance companies, 29 Special Drawing Rights, 4, 12, 54, 55 Savings and loan assns., 29 State and local govts.: Deposits, 19, 20, 21, 22 LABOR force, 47 Holdings of U.S. Govt, securities, 32, 33 Life insurance companies {See Insurance companies) New security issues, 36 Loans {See also specific types of loans): Ownership of securities of, 18, 20, 21, 22, 29 Banks, by classes, 16, 17, 18, 20-23, 29 Yields of securities, 3 Commercial banks, 3, 15-18, 20-23, 24, 26 State member banks, 17 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Stock market, 28 Insurance companies, 29, 41 Stocks {See also Securities): Insured or guaranteed by U.S., 40, 41 New issues, 36, 37 Savings and loan assns., 29 Prices, 28 MANUFACTURERS: TAX receipts, Federal, 31 Capacity utilization, 46, 47 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Production, 46, 49 22, 23 Margin requirements, 28 Trade, foreign, 55 Member banks: Treasury currency, Treasury cash, 4 Assets and liabilities, by classes, 16, 17, 18 Treasury deposits, 4, 12, 30 Borrowings at Federal Reserve Banks, 5, 12 Treasury operating balance, 30 Number, by classes, 16, 17, 19 Reserve position, basic, 6 UNEMPLOYMENT, 47 Reserve requirements, 9 U.S. balance of payments, 54 Reserves and related items, 3, 4, 5, 15 U.S. Govt, balances: Mining production, 49 Commercial bank holdings, 19, 20, 21, 22 Mobile home shipments, 50 Member bank holdings, 15 Monetary aggregates, 3, 15 Treasury deposits at Reserve Banks, 4, 12, 30 Money and capital market rates {See Interest rates) U.S. Govt, securities: Money stock measures and components, 3, 14 Bank holdings, 16, 17, 18, 20, 21, 22, 29, Mortgages {See Real estate loans) 32, 33 Mutual funds {See Investment companies) Dealer transactions, positions, and financing, 34 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Federal Reserve Bank holdings, 4, 12, 13, 32, 33 Foreign and international holdings and NATIONAL banks, 17, 19 transactions, 12, 32, 64 National defense outlays, 31 Open market transactions, 11 National income, 52 Outstanding, by type of security, 32, 33 Nonmember banks, 17, 18, 19 Ownership, 32, 33 Rates in money and capital markets, 27 Yields, 3 OPEN market transactions, 11 Utilities, production, 49 PERSONAL income, 53 VETERANS Administration, 40, 41 Prices: Consumer and wholesale, 46, 51 WEEKLY reporting banks, 20-24 Stock market, 28 Wholesale prices, 46 Prime rate, commercial banks, 26 Production, 46, 48 Profits, corporate, 38 YIELDS {See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis^ Chicago j Omafui* Denver Kansas City j1 J ^ t Oklahoma Citjf Pallas HewOrtt*** Antcmio< i f w mm ALAS KA 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