Federal Reserve Bulletin, 1978-01

JANUARY 1978 FEDERAL RESERVE BULLETIN The Economic Expansion In 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

N U M B ER 1 • V O L U ME 64 • J A N U A RY 1978 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS C O M M I T T EE Joseph R. Coyne, Chairman • Stephen H. Axilrod • 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 1 THE ECONOMIC EXPANSION IN 1977 tive for the weekly-average Federal funds rate should be varied in an orderly Economic growth continued to increase fashion within a range of 6lA to 63A per briskly during 1977 highlighted by large cent. As to the annual rates of growth in gains in residential construction and in- M-l and M-2 over the Novemberventory investment. With demands December period, the Committee strong in most sectors, total employspecified ranges of 1 to 7 per cent and 5 ment rose at a near-record pace and the to 9 per cent, respectively. unemployment rate declined significantly. 27 LAW DEPARTMENT 12 STAFF ECONOMIC STUDIES Amendments to Regulations D, H, and Y; various bank holding company and Summary of "An Analysis of Federal bank merger orders. Reserve System Attrition Since I960" looks beyond the aggregate data to 59 ANNOUNCEMENTS examine the several components involved in the attrition phenomenon. Resignation of Dr. Arthur F. Burns as a member of the Board of Governors. Summary of "Problems in Applying Discriminant Analysis in Credit Scoring The Board of Governors approved an Models" reviews the types of models increase in the discount rate from 6 to used to appraise the creditworthiness of 6V2 per cent. loan applicants and the statistical prob- The U.S. Treasury and the Board of lems associated with those models that Governors issued an announcement use discriminant analysis techniques. concerning joint intervention in the foreign exchange markets to check 15 RECORD OF POLICY ACTIONS OF THE speculation and to re-establish order FEDERAL OPEN MARKET COMMITTEE in those markets. At its meeting on November 15, 1977, The results of a survey of foreign lendthe Federal Open Market Committee ing by large U.S. banks as of June 30, decided that operations in the period 1977, were made public by the Office of immediately ahead should be directed the Comptroller of the Currency, the toward maintenance of prevailing Federal Deposit Insurance Corporation, money market conditions, as repreand the Board of Governors. sented by the then current level of the Federal funds rate. However, the The Federal bank regulatory agencies members agreed that if growth in the issued a joint policy statement on Januaggregates should appear to approach ary 17, 1978, concerning improper and or move beyond the limits of their illegal payments by banks and bank specified ranges, the operational objec- holding companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Preliminary figures indicate that gross 65 INDUSTRIAL PRODUCTION current earnings of the Federal Reserve Output increased 0.2 per cent in De- Banks amounted to $6.89 billion during cember. 1977, an increase of 4.0 per cent from a year earlier. A1 FINANCIAL AND B USINESS STATISTICS The Board has approved the 1978 budgets of the 12 Federal Reserve A3 Domestic Financial Statistics Banks, permitting a 3 per cent increase A46 Domestic Nonflnancial Statistics over outlays anticipated for 1977. A54 International Statistics Outline of procedures for processing of A69 GUIDE TO TABULAR PRESENTATION requests for copies of materials sched- AND STATISTICAL RELEASES uled to be discussed at meetings of the Board that are open to public observa- A70 BOARD OF GOVERNORS AND STAFF tion. The proposed effective date of revisions All OPEN MARKET COMMITTEE AND in quarterly reports by State member STAFF; ADVISORY COUNCILS banks of their condition and income has been postponed. A73 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES Comment has been invited on proposed plans to enhance and improve payments A74 FEDERAL RESERVE BOARD services to financial institutions and the PUBLICATIONS public. Changes in Board staff. A76 INDEX TO STATISTICAL TABLES One State bank was admitted to mem- A78 MAP OF FEDERAL RESERVE SYSTEM bership in the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Economic Expansion in 1977 This article was prepared by James L. Freund to sustain growth in final sales. Further, folof the National Income Section, Division of lowing a sharp shift to inventory accumula- Research and Statistics. tion early in the year, a cautious posture by businesses kept stocks generally in line with Expansion of economic activity was brisk sales. from late 1976 to late 1977 with advances in The sectors of greatest concern—consumpaggregate demand widespread among sec- tion and business fixed investment—also tors. Total employment rose at a near-record made important contributions toward mainpace, and although the labor force also grew taining over-all economic growth. Consumer at an extremely rapid rate, unemployment spending advanced more moderately than had dropped significantly by the fourth quar- gross national product as a whole in 1977. A ter of 1977. Prices rose somewhat more strong surge in durable goods sales that boosted during 1977 than 1976, in large part be- growth in the first quarter was followed by a cause of a steep increase in food prices early midyear lull. However, renewed strength in in the year. Higher energy costs continued to consumption at year-end provided further have an adverse effect on over-all economic momentum to economic growth. Business activity; in particular, an increased volume of fixed investment provided substantial support petroleum imports and higher oil prices were during 1977, but gains moderated somewhat major factors in the shift of the Nation's after a first-quarter surge that included a net exports into deficit in 1977. rebound from the effects of earlier strikes. At At the beginning of 1977 fundamental ques- the end of the year, real capital spending by tions were raised as to the durability of the business remained below the pre-recession expansion. The unbalanced composition of peak of early 1974, whereas at this point in growth—with consumer spending and inven- previous expansions real capital outlays were tory investment providing much of the typically well above earlier peak levels. strength—was a source of concern. The outlook for further gains in consumption was uncertain, with the saving rate at an unusu- Change in GNP ally low level. Moreover, there were doubts Per cent whether spending on business fixed investment would gather momentum in light of fac- 20 Current tory operating rates that were still low and a persistent climate of uncertainty. nLln allien to 10 As the year unfolded, growth was marked by a pattern of uneven advances in domestic ' • • I] activity. Large gains occurred in the housing sector as construction activity rose sharply in Real response to strong underlying demands and an 10 ample supply of mortgage funds. In the government sector, an upward shift in both State 1974 1975 1976 1977 Dept. of Commerce data, seasonally adjusted at compound anand local and Federal purchases also helped nual rates. Real is in terms of 1972 dollars. 1977 Q4 estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1978 As 1977 came to a close, most indicators table in the housing area, as sales and conpointed to continued moderate growth over struction of single-family dwellings reached the near term. Consumer spending continued unusually high levels. Consumption outlays strong through the holiday season, and buyer rose somewhat less rapidly in 1977 than dursentiment remained at relatively high levels. ing the two prior years but continued to pro- In part because of this strength in sales, in- vide considerable support to over-all growth. ventory investment moved lower at year-end, and a faster growth of stocks seemed likely in early 1978. The housing expansion continued HOUSING to exhibit near-term strength as starts of new Throughout the recovery, housing activity units continued to rise and as sales of existing has been very brisk, with especially large units remained at record-setting levels. How- gains in the West and South. In 1977 continued ever, by the end of the year attention again strong demand led to record levels of sales for centered on longer-term prospects for busi- new and existing homes. This strength stimuness fixed investment and personal consump- lated a continuous rise in housing starts that, tion outlays. Surveys and commitments data together with heavy spending on additions and suggested slower growth of investment out- alterations, boosted real residential outlays lays in 1978. In addition, both business and 15 per cent during the year. consumers were facing higher payroll Employment and product demands taxes—which would damp growth of dispos- spawned by the rise in residential investment able income—in both January 1978 and Janu- were impressive. Employment in the conary 1979. In view of these developments, the struction industry—including both residential administration proposed reductions in both and nonresidential work—increased almost 10 personal and corporate taxes designed to per cent during the year. In addition, producsustain these two critical components of tion of building supplies rose about IVi per aggregate demand. cent, generating large gains in employment within supplier industries. The strong showing of residential construc- GNP and final sales tion activity in 1977 was facilitated by de- Billions of 1972 dollars velopments in financial markets. Net residential mortgage debt formation is estimated to have totaled a record $98 billion, as lending by thrift institutions was supplemented by stepped-up commercial bank participation and by large issues of mortgage-backed, "passthrough" securities. For the year as a whole private housing Privately owned housing starts Ratio scale, millions of units Dept. of Commerce data, seasonally adjusted at annual rates. 1977 Q4 estimated. H O U S E H O LD SECTOR Economic growth continued to be supported during 1977 by strong demands originating in the household sector. Such support was no- Dept. of Commerce data, seasonally adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Expansion in 1977 3 starts totaled almost 2 million units. Starts of personal savings, provided support for a sharp single-family homes rose about one-fourth upturn of consumption spending. from the 1976 volume to about 1.45 million Purchases of durable goods rose at a rapid units, reaching the highest level since 1955. In pace during the first quarter of 1977, as unit the multifamily sector, special Federally sup- sales of automobiles jumped more than 10 per ported units—primarily under the Department cent from the prior quarter. The strong sales of Housing and Urban Development's Sec- pace early in the year was partly attributable tion 8 Rental Assistance Program—accounted to deferred purchases following the auto for about a fifth of all multifamily starts. strike late in 1976. Auto sales rose further to Market conditions facing builders of units an annual rate of 11.7 million units in the that were not Federally supported varied con- second quarter—the strongest quarterly pace siderably across the country. In some areas since 1973. During that quarter, demand for low vacancy rates and rising rents provided autos appeared to shift strongly in the directhe basis for moderate increases in rental tion of foreign models—in part, perhaps, behousing starts, while elsewhere rents re- cause the administration's energy proposals mained too low to justify much construction. stimulated renewed interest in fuel-efficient Nationwide, multifamily starts totaled 535,000 cars. Sales of foreign model autos continued units during 1977—an increase of 40 per cent strong and for the year totaled 2.1 million, a from 1976 but still only approximately half the record level. peak reached in 1972. Sales of domestic autos, at an annual rate Activity in housing markets was particu- of about 8.9 million units during the second larly ebullient in the final quarter of the year. half of 1977, were somewhat below manufac- Combined sales of new and existing homes turers' anticipations, especially at year-end. were at an annual rate of 4.8 million units, With inventories building up, selected downand single-family housing starts were at an ward adjustments in production were instiannual rate of nearly 1.6 million units— tuted in November and December. Thus, the highest since the beginning of this series prospects for this important sector were amin 1959. Starts of multifamily units were at an biguous at year-end. annual rate of 635,000 units, almost 30 per cent Outlays for other consumer durable goods above a year earlier. Outstanding mortgage rose most strongly after midyear. Purchases lending commitments at thrift institutions of furniture and appliances, stimulated in part were at a record level—about $39 billion sea- by record purchases of homes, rose at a 12 sonally adjusted toward the end of 1977— per cent annual rate during the last three which was sufficient to support high levels of quarters of the year. Outlays for luxury items homebuilding for some months. such as jewelry and sporting goods, as well as for a wide variety of other "nonessential" durable goods, also rose briskly late in the CONSUMPTION year. Consumption spending rose unevenly last year with especially large increases in the Auto sales first and last quarters and comparatively Millions of units small gains in the middle quarters. The very sharp rise in consumer spending early in 1977 largely reflected two events: the auto industry strike of late 1976, which apparently had delayed auto purchases, and the unusually severe winter weather, which had widespread impacts on consumption of heating fuels and on some food prices. Late in the year, the strong growth of employment and disposable income, coupled with the improved rate of Ward's "Automotive Reports" data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1978 Consumers faced larger bills for essentials Income, consumption, and saving during the winter of 1976-77. Over-all con- Percentage change, Q4 to Q4 sumption of heating fuels rose sharply in response to unusually cold weather east of the Rockies. At the same time, prices of fuels were rising sharply. Spending for natural gas, fuel oil, coal, and electricity was at an annual rate of nearly $52^ billion in the first quarter, an increase of 22 per cent from a year earlier with more than half of the rise due to higher prices. With the return of more favorable weather, such spending fell to an annual rate of $48^ billion in the second quarter. Consumer outlays for food rose sharply in the first quarter, in part because of steep increases in prices. Rising prices, which were 1974 1975 1976 1977 only partially a result of weather damage to Dept. of Commerce data, seasonally adjusted at annual rates. Real is in terms of 1972 dollars. 1977 Q4 estimated. crops, persisted through the spring months. With utility and grocery bills large, spending second half of the year. And farm income, on most other nondurable goods was not par- after declining for two quarters due in part ticularly ebullient early in the year. During the to falling farm prices, contributed signifispring, as fuel bills eased and food price cantly to income growth at year-end because increases began to moderate, purchases of of stepped-up wheat price-support payments. apparel moved into an upswing that was still Although increases in Federal gift and sostrong at year-end. cial security taxes held down growth in dis- Consumer surveys conducted near the end posable income early in the year, such inof 1977 indicated that confidence remained at come was strongly bolstered thereafter by a a relatively high level. Further, with growth cut in Federal income tax rates. Lower withof disposable income quite strong and with holding rates, which contribute directly to personal tax cuts proposed, continued ad- disposable income, were instituted in the secvances in consumer outlays appear to be in ond quarter. The reduction in withholding prospect for 1978. accounted for almost one-tenth of the growth of disposable income between the first and third quarters. Some of the growth in dispos- INCOME able income was used to rebuild consumer An acceleration in income growth was sup- savings. The saving rate—which had reached portive of household demand in 1977. Per- a 26-year low in the first quarter, in part sonal income rose 11% per cent during the because of recently enacted estate and gift four quarters of 1977—up from less than 10 tax law revisions—rose moderately during the per cent during 1976. Advances were quite last three quarters. sharp in the first half of the year as wages and Despite the large increase in disposable insalaries rose rapidly. Growth in wages and come, financial obligations of the household salaries slowed in the third quarter but picked sector reached new highs relative to disposup again at year-end. Private wages and able income late in 1977 largely as a result of salaries, particularly in manufacturing and the record increase in home mortgage debt. services, led the advance in payroll growth Thus, while this sector was supportive of during 1977; government wages and salaries over-all activity during 1977, rising debt serwere up a modest IV2 per cent. The midyear vice requirements may narrow the proportion cost-of-living increase for social security re- of disposable income available for discretioncipients bolstered transfer payments in the ary spending in the future. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Expansion in 1977 5 BUSINESS SECTOR source of strength for capital outlays in 1977; it rose 11 per cent over the year. Within Business investment advanced cautiously durthe equipment sector, spending on machinery ing 1977 as uncertainties concerning legislative strengthened as the year progressed, although developments as well as the prospects for ecosuch outlays still did not account for the share nomic growth and inflation continued to cloud of capital spending that historical experience the long-term outlook. Nonetheless, capital would suggest. Total nonresidential construcspending was comparatively strong during the tion advanced modestly during 1977—about 6 year, and inventory imbalances were successper cent—but commercial and industrial buildfully avoided as production was, in general, ing activity appeared to gain strength as the quickly adjusted to the uneven pace of retail year progressed, following 2 years of little sales during the year. change. As was true in the four previous years, growth of outlays was largest in the manufac- FIXED INVESTMENT turing sector. Spending by producers of dur- By the fourth quarter of 1977, real outlays for able goods was particularly robust, led by plant and equipment had risen almost 9Vi per gains in the motor vehicles sector—which cent from a year earlier—well above the 1976 retooled to reduce the size of many models— rise and the largest increase of the current and in the machinery sector. Among producers expansion. The sharpest advances in outlays of nondurable goods, relatively large increases occurred in the first half and reflected pur- were recorded by the petroleum and rubber chases of motor vehicles following a pause in industries. Capital spending by materials prosuch buying during the fourth quarter of 1976, ducers was damped by relatively low levels of when strikes in the auto and farm equipment capacity utilization and readily available industries evidently interrupted normal pur- foreign supplies at competitive prices. Among chasing schedules. Real capital outlays rose nonmanufacturing industries, a renewal of only moderately in the third quarter, as pur- commercial investment and another year of chases of transportation equipment leveled large advances by utilities were partially off and construction of the Alaskan pipeline offset by a sharp decline in the transportation drew to a close. During the fourth quarter, sector due to the completion of the Alaskan however, growth of capital outlays strength- pipeline. ened again, reaching an 8.4 per cent annual Despite healthy gains during 1977, business rate. fixed investment at year-end was still 3 per Continuing the pattern of recent years, cent below its earlier peak; a more typical spending for new equipment was the primary cyclical experience would have seen such Capital outlays, constant dollars Trough = 100 1975 Q1 =100 Dept. of Commerce data, seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1978 outlays almost 13 per cent above their previ- INVENTORIES ous peak. In part, this weakness can be attributed to earlier imbalances between expan- Investment in business inventories proceeded sion in capacity and growth in output. In the cautiously in 1977 and inventory/sales ratios manufacturing sector, for example, capacity remained below historical averages in most grew about 3 per cent a year during the sectors. Conservative inventory policies rep- 1973-76 period, whereas the level of factory resented a continuation of attitudes develoutput was about the same in both years. oped earlier in the recovery. This increase in capacity, together with a Inventory accumulation picked up sharply comparatively moderate expansion of indus- in the first quarter of 1977 after the abrupt trial production during 1977, left capacity shift to liquidation that had taken place in the utilization rates around 83 per cent at year- final quarter of 1976. There were further adend, well below the levels normally recorded vances in the second and third quarters in at this stage of an expansion and not much response to gains in final demand. At yearabove the reading for late 1976. These low end, however, the pace of accumulation utilization rates probably have had a depress- abated considerably as final sales strengthing effect on investment demand. ened. The manufacturing sector rebuilt inven- Other factors also contributed to the rela- tories at a rapid pace in the first half of 1977, tively modest recovery in investment spend- reflecting an upswing in the nondurable goods ing. Continued uncertainty over tax and energy sector. In the second half such accumulation policies heightened the caution that already moderated again. Inventory investment in the characterized longer-range investment plans. trade sector remained at generally advanced The weakness in stock prices pushed up the levels throughout the year. Trade accumulacost of capital and made the acquisition of tion was strongest in nondurable goods in the existing capital relatively attractive. Financial first quarter, but as the year progressed trade developments outside of equity markets did accumulation in durable goods became quite not seem to be affecting capital spending in an rapid. adverse manner, however. And while the By type of good, accumulation in durable sharp advance in book-value profits in 1977 goods—which had slowed dramatically in the was partially attributable to the continued, fourth quarter of 1976—was fairly steady durdistorting effect of inflation, the gap between ing 1977. The inventory /sales ratio for the internally generated funds and capital outlays total durable goods sector was little changed remained unusually small over the course of over the year, remaining below its average for the year. the last decade. By contrast, inventory activ- Judging from the available indicators, capi- ity in the nondurable goods sector fluctuated tal spending appears likely to increase at a widely over the year as firms adjusted promore moderate pace this year than in 1977. duction quickly to changes in sales. A rapid New orders for nondefense capital goods and build-up of stocks during March and April contracts for commercial and industrial build- was followed by lower investment in late ing both rose more slowly after mid-1977 than spring and early summer. By late summer they had earlier. In addition, surveys of capital signs of renewed accumulation were evident, spending anticipations suggested continued and production was again adjusted downbut more moderate advances in plant and ward. The fact that the inventory/sales ratio equipment spending during the year. Of for nondurable goods as a whole remained course, it should be remembered that spend- essentially stable in 1977 suggests that busiing plans were progressively scaled up during nesses were quite successful in avoiding in- 1977. This could be the case again this year, ventory imbalances. especially when ambiguities about energy and Inventories appeared to remain under contax policies are clarified. trol at the close of the year. The rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Expansion in 1977 7 inventory accumulation was apparently re- Federal receipts and expenditures duced in the fourth quarter from the rates Billions of dollars maintained over the second and third quarters of the year. Indeed, stocks might be a bit on Expenditures jtf the lean side in some sectors; hence, there could be some pick-up in accumulation during // early 1978. ^ ^ /— G O V E R N M E NT SECTOR Activity picked up in the government sector UMUM ll|[||)ll|llplll III ili I ! during 1977. The Federal Government initi- •D•ef•ici•t ••• • , !I |:;j If | ated efforts to stimulate the economy through II •111 tax cuts, countercyclical grants-in-aid, and increased purchases. State and local govern- H H H H H H H H B H H H H HI ments increased their spending somewhat; 1974 1975 1976 1977 nevertheless as a group they recorded a Dept. of Commerce national income and product data, seasonally record-setting operational surplus. Thus, the adjusted at annual rates. over-all deficit for the entire government seccivilian work force remained essentially untor was down about $15 billion from the previchanged in 1977 and, thus, continued below ous year. the peak level reached in 1968. Among other types of Federal expendi- FEDERAL tures, total grants-in-aid to State and local The Federal Government continued to run a governments increased as a result of expansubstantial deficit in 1977, reflecting in part sion in public works, public employment, and planned fiscal initiatives. Spending was the countercyclical revenue-sharing probuoyed by grants-in-aid to States and lo- grams. The largest increases in these grants calities to implement various countercyclical occurred around midyear and marked the inispending programs, and receipts were held tial spend-out from the programs recomdown by tax cuts embodied in the Tax Reduc- mended by the administration in February. tion and Simplification Act of 1977. The Fed- Substantially higher payments to farmers eral budget deficit, on a national-income- were mainly responsible for a sharp increase accounts (NIA) basis, was about $50 billion in subsidies (less current surplus) during during calendar year 1977—$4 billion less 1977. than the previous year. As has often occurred, spending during fis- Real Federal purchases including both cal year 1977 fell short of administration and defense and nondefense rose slightly more congressional expectations. After allowing for than 7 per cent during 1977. This contrasts the withdrawal of the proposed income tax rewith the small decline recorded a year earlier bate, the shortfall in expenditures for the entire and was the largest advance since the Vietnam year was around $1\Vi billion. The 1977 shortwar build-up in the mid-1960's. National de- fall was most noticeable in defense spending for fense purchases were particularly strong, ris- procurement and construction and in countering more than 11 per cent in nominal terms. cyclical programs in which delays occurred Nondefense spending was bolstered by a $4Vi both in congressional enactment and in agency billion (annual rate) purchase of agricultural implementation. products by the Commodity Credit Corpora- Total receipts in the Federal sector rose tion in the third quarter that followed a sharp more than 12 per cent in 1977—slightly less drop in farm prices at midyear. The Federal than the increase a year earlier. The slowing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1978 resulted from planned tax cuts. Personal tax growth, notwithstanding declining total encollections recorded a twelve per cent gain in rollments. 1977, led by a large increase in estate and Real spending by States and localities on gift levy receipts associated with legislated new structures did rise somewhat over the changes in the method of taxing gifts. Social four quarters of 1977, but much of the gain insurance tax collections were up about 13 was the result of a recovery from the deper cent, reflecting an increase in the taxable pressed levels to which activity had fallen durwage base as well as increases in payrolls. ing the severe winter. Despite an infusion of countercyclical Federal aid for public works projects and record bond volume in 1977, real STATE AND LOCAL capital spending late in the year was about Spending by State and local governments one-fifth lower than the level 3 years earlier. was depressed in the first quarter of 1977 by Total receipts rose about 11 per cent during the extreme winter, but after that it increased the year. The advance reflected increases in markedly. Real purchases of goods and ser- local tax bases associated with the general vices advanced more than 3 per cent from late economic expansion as well as sharply higher 1976 to late 1977 after a slight decline in 1976. Federal grants-in-aid during the second half Renewed growth in hiring bolstered spending of the year. State and local governments held on compensation, in large part due to in- spending below incoming revenues throughcreases in Federally subsidized public service out the year. As a result, the operational jobs in the second half of the year. Between balance—which excludes net savings by social the fourth quarter of 1976 and the fourth insurance funds—showed a record annual surquarter of 1977, over-all employment in this plus of more than $13 billion in 1977. This is sector increased by more than 350,000 jobs; more than double the level of the surpluses this compares with an advance of just over recorded at the outset of general revenue shar- 200,000 positions in the corresponding period ing in 1972 and 1973. While the surplus during a year earlier. A healthy rise in educational 1977 reflected to some extent unspent counteremployment contributed to the over-all cyclical grants, it also manifested an attitude of fiscal conservatism. Many governments apparently used unspent revenues to rebuild State and local government spending cash balances that had been drawn down by several years of fiscal stress. Percentage change, Q4 to Q4 REAL PURCHASES 1 I N T E R N A T I O N AL U.S. net exports of goods and services showed a deficit of $9 billion in 1977 on an l i i Billions of dollars NIA basis—a sharp reversal from the $7.8 billion surplus recorded in 1976. The swing BALANCES Total NIA surplus into deficit was the result of a marked decline in the merchandise trade balance that was only partially offset by rising net investment income. Merchandise imports rose almost Operational surplus* $27 billion—oil imports, in particular, were ISIMWMMMM MHHHHHHHHi HI 1974 1975 1 1976 1977 up sharply—while merchandise exports rose a moderate $5Vi billion. Dept. of Commerce data, seasonally adjusted at annual rates. •Excludes net savings by social insurance funds. Exports of merchandise from the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Expansion in 1977 9 U.S. foreign transactions cant boost to the value of imports in 1977. Net exports of services and military trans- Billions of dollars actions (NIA defined) rose $5 billion in 1977 to $22 billion. The importance of these trans- 1200 actions has increased over the past several years as income from U.S. investment abroad and sales of military equipment to foreign governments have grown. L A B OR M A R K ET With over-all demand strong during 1977, employment and earnings rose sharply, and unemployment declined. Gains were widespread among the various occupation and MH 20 industry groups as total employment re- 1974 1975 1976 1977 corded its largest relative increase—4.4 per Dept. of Commerce data, seasonally adjusted at annual rates. cent—in more than 20 years. Nonfarm payroll employment rose 3.1 million from late 1976 to States were constrained by slow growth in late 1977. Service-producing industries— the economies of our major trading partners. trade, miscellaneous services, and finance— The weakness of recoveries in capital investprovided the largest and steadiest growth in ment in both developing and developed counemployment, advancing about 2 million. State tries was a major depressant in this regard and local governments added 360,000 jobs, since it particularly limited growth of demand with more than half the net increase in Federfor machinery and industrial materials, which ally subsidized positions. account for about half of our merchandise With industrial production continuing to exports. The volume of agricultural exports in advance at a healthy, although somewhat un- 1977 continued the strong trend established in even, rate, about 700,000 jobs were added 1976, but the value of these exports declined to manufacturers' payrolls during 1977. By in the latter half of the year as grain prices fell sharply. The sharp rise in merchandise imports in Labor force employment and unemployment 1977 reflected a broad range of developments. Change from previous half, millions of persons A major factor was the substantial rise in imports of petroleum. The bill for imported oil was $46 billion—up about 30 per cent from 1976. Increased consumption and substantial inventory building of petroleum were met almost entirely by imports. Nonfuel imports rose almost 20 per cent, paced by industrial Per cent supplies, autos and related equipment, and UNEMPLOYMENT RATE ^^ v Total consumer goods. This increase reflected demands generated by the recovery of the domestic economy as well as the effect on import prices of excess supplies produced by slack economies abroad. At the same time, sharply higher prices for coffee and other 1974 1975 1976 1977 agricultural commodities provided a signifi- Dept. of Labor data, seasonally adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1978 year-end the factory workweek and average agreements were negotiated. Most major conovertime hours had each risen 0.4 hour. New tracts closely resembled the steel pact, with hiring was concentrated in the durable goods effective wage increases—including cost-ofsector as demand for motor vehicles, busi- living escalator clauses—amounting to beness equipment, and consumer durable goods tween 10 and 12 per cent in the first year and picked up. By contrast, growth in most non- about 30 per cent over the entire 3-year life of durable goods industries was modest over the the contract. However, wage increases in the year. Finally, for the first time in the expan- construction industry were more moderate— sion period, employment in the construction averaging 4.8 per cent—in part reflecting industry posted a significant gain. continued high unemployment rates in this Although rapid growth in the work force is sector. typical of expansionary periods, the 3.1 per Hourly compensation—which includes the cent increase in 1977 was one of the largest costs of fringe benefits and employer contribusince post-World-War-II demobilization. Ex- tions to social security—rose 8.6 per cent tending and enlarging the patterns of recent during 1977. First-quarter increases in payroll years, adult women and teenagers entered the taxes for social security and unemployment labor force in near-record numbers and ac- compensation, as well as an increase in the counted for three-fourths of the increase dur- minimum wage, contributed importantly to ing the year. The labor force participation the rise. rate of adult women rose 1.2 percentage At the same time, growth in productivity points to 48.6 per cent in the fourth quarter of decelerated in 1977. Over the four quarters of 1977, while teenage participation had jumped 1977, increases in productivity in the private 2.6 percentage points to 57.0 per cent by the nonfarm business sector averaged about 23A end of the year. The participation rate of per cent—down from about a VA per cent rise adult males was essentially unchanged. recorded during 1976. Unemployment fell from 7.8 per cent of the labor force in the fourth quarter of 1976 to 6.6 per cent in the fourth quarter of 1977. Al- Productivity and costs though unemployment declined for most de- Percentage change from previous year mographic and economic groups, the reduc- HOURLY COMPENSATION tion was concentrated among experienced workers who had lost their jobs. Three- 10 quarters of a million "job losers" were reemployed over the year. Conversely, at year-end joblessness among labor force entrants—generally women and youth—was PRODUCTIVITY only slightly reduced. In the final quarter of 10 B n n n n H the year the unemployment rate among u household heads was 4.2 per cent—down 1 u percentage point from a year earlier. Wages and fringe benefits continued to rise at a rapid rate in 1977. The broadest measure UNIT LABOR COSTS of wage rates—the average hourly earnings index in the private nonfarm sector—rose 7.6 110 per cent over the four quarters of the year—a slight acceleration from the 6.8 per cent rise during 1976. Wages grew most rapidly in the 1974 1975 1976 1977 service sector and in those manufacturing in- Dept. of Labor data for the private nonfarm business sector, dustries in which major collective bargaining seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Economic Expansion in 1977 11 per cent increase during 1976. Exclusive of COSTS A ND PRICES food and energy items, however, the pace of The combination of large increases in com- inflation was about the same in both years— pensation and slower growth of productivity 6.4 per cent in 1976 and 6.1 per cent in 1977. resulted in a rise in unit labor costs of about The most rapid increases in 1977 were during 53A per cent during 1977. This was associated the first half when, in addition to the 12 with an underlying inflation rate that, exclud- per cent annual rate of increase in food prices, ing the volatile effects of food and energy used car prices rose markedly. The rate of rise prices, remained for a second year in the moderated in the second half of the year as neighborhood of 6 per cent. food prices rose only slightly, used car prices Over-all prices rose more during 1977 than fell very sharply, and smaller increases were during 1976, with most broad measures of registered for services. price change rising from 6 to 6V2 per cent, up Wholesale prices rose about 6 per cent durfrom around 5 per cent during 1976. As has ing 1977—after a 4.1 per cent rise during 1976. been the case in recent years, developments The entire acceleration reflected developin food markets were a crucial element in the ments in prices of farm products and propattern of price movements. Food prices rose cessed foods and feeds. Wholesale prices of sharply in the first half of 1977, in part reflect- these groups, which had declined during 1976, ing the effects of weather-related interrup- rose about W2 per cent during 1977. By contions of supplies. Over the summer months— trast, wholesale prices of industrial commodias supplies became more abundant—food ties rose a bit more than 6V2 per cent during prices at wholesale fell sharply, and by the both 1976 and 1977. Prices of crude nonfood third quarter increases in consumer food materials continued to advance rather rapidly, prices had abated. rising more than 8 per cent over the year. The consumer price index rose about 6V2 Prices of producer finished goods rose about per cent during 1977 compared with about a 5 1V\ per cent. • Prices Dept. of Labor data, seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1978 Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the forth are those of the authors and do not Federal Reserve Banks undertake studies that necessarily indicate concurrence by the Board cover a wide range of economic and financial of Governors, by the Federal Reserve Banks, subjects, and other staff members prepare or by the members of their staffs. papers related to such subjects. In some in- Single copies of the full text of each of the stances the Federal Reserve System finances studies or papers summarized in the BULLEsimilar studies by members of the academic TIN are available in mimeographed form. The profession. list of Federal Reserve Board publications at From time to time the results of studies that the back of each BULLETIN includes a sepaare of general interest to the economics pro- rate section entitled'4Staff Economic Studies" fession and to others are summarized—or they that enumerates the papers prepared on these may be printed in full—in this section of the studies for which copies are currently available Federal Reserve BULLETIN. in mimeographed form. STUDY SUMMARIES AN ANALYSIS OF FEDERAL RESERVE SYSTEM ATTRITION SINCE 1960 JOHN T. ROSE—Staff, Board of Governors Prepared as a staff paper in late 1977 In recent years the attrition of both banks and de novo banks to remain outside the System, deposits from the Federal Reserve System has and (3) a pattern of more mergers and absorpaccelerated. Because of this, much attention tions of member banks than nonmembers, with has been given to the regulatory/financial most of the merged and absorbed banks being burden of Federal Reserve System member- acquired by other member banks. The first two ship and to the implications of membership factors have contributed to attrition of both attrition for monetary policy. Little attention, member banks and member bank deposits. however, has been directed to the various However, in recent years these two factors structural factors, which, in the aggregate, have been attenuated somewhat by less withproduce the observed attrition phenomenon. drawal activity on the part of subsidiary banks The present study examines these factors as of multibank holding companies as well as by they relate to System attrition from 1960 the preference of holding companies for charthrough mid-1977. tering de novo member banks. The third The first part of the study focuses on attri- factor—bank mergers and absorptions—also tion associated with changes in the number of has contributed to attrition of member banks, member and nonmember banks. Principal con- but it has served as an offset to member bank tributing factors include (1) a pattern of net deposit attrition. In fact, only since the late withdrawals from the System, (2) a tendency of 1960's has deposit attrition from net System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies 13 withdrawals been sufficiently large to exceed without any reduction in the burden of System the net flow of nonmember deposits into the membership, the pattern of net System withmember bank sector through acquisition. drawals, as well as the preference of de novo Still, as the second part of this study dem- banks for nonmember status, may be expected onstrates, the bulk of deposit attrition has not to continue and thereby to produce further been caused by net System withdrawals. decreases in both the number of banks and the Rather, it has been due to a more rapid rate of amount of deposits in the System. Second, a internal deposit growth by nonmember further reduction in the offsetting effect of banks—including the growth of de novo non- bank mergers and absorptions on deposit attrimember banks chartered since 1960—than tion can be expected to the extent that the member banks, resulting in a relative increase number and average size of nonmember banks in the average size of nonmember banks. continue to increase relative to member banks Moreover, since the late 1960's, deposit attri- and that such a development continues to lead tion due to differences in internal growth be- to further relative growth in bank acquisition tween member and nonmember banks has activity by the nonmember sector. Finally, the increased. This fact, along with the increase in significant contribution to deposit attrition redeposit attrition from net System withdrawals sulting from faster internal deposit growth by and a smaller offset from bank mergers and nonmember banks than by member banks absorptions, accounts for the general accelera- suggests that deposit attrition will continue in tion of deposit attrition from 1960 to 1977. the future, even without additional changes in These developments have implications for the number of member and nonmember the future pattern of System attrition. First, banks. • PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS IN CREDIT SCORING MODELS ROBERT A. EISENBEIS—Staff, Board of Governors Presented at the Financial Management Association Meetings, October 14, 1977 Since the mid- 1960's financial institutions and analysis techniques. The paper points out that other creditors with increasing frequency have the statistical scoring models discussed in the applied credit scoring and related loan review literature have focused primarily on the procedures to appraise the creditworthiness of minimization of default rates, which is in fact loan applicants. The passage of the Equal only one dimension of the more general prob- Credit Opportunity Act and promulgation of lem of granting credit. To the extent that for the Federal Reserve's Regulation B to imple- the lender profit maximization or cost minimiment this act place an important burden on zation is, or should be, the objective of a institutions that are subject to the regulation scoring model, then most of the applied literaand that employ screening models to ensure ture seems incomplete. The paper also shows that their procedures are. statistically and that, even ignoring these shortcomings, the methodologically sound. models used typically suffer from statistical This paper reviews the types of credit scor- deficiencies. And it finds that some of the ing models that have been described in various problems of these models seem to be inherent journals. It gives particular attention to the in the discriminant analysis techniques emmethodological approaches that have been ployed or seem to be hard to remedy, given employed and the statistical problems as- the state of the art concerning estimation and sociated with those models using discriminant sampling procedures. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON NOVEMBER 15, 1977 Domestic Policy Directive The information reviewed at this meeting suggested that growth in real output of goods and services—which had slowed to an annual rate of 3.8 per cent in the third quarter, according to preliminary estimates of the Commerce Department—was picking up in the current quarter. At the same time the rise in average prices, as measured by the fixed-weighted price index for gross domestic business product, appeared to be stepping up somewhat from the annual rate of 5.2 per cent estimated for the third quarter. Staff projections suggested that growth in real GNP would continue at a moderate, although gradually diminishing, pace throughout 1978. It was also expected that the rate of increase in prices would remain high. The staff estimate of a pick-up in growth of real GNP in the current quarter was attributable to expectations of accelerated expansion in final sales of goods and services, reflecting indications of renewed strength in consumer spending for both durable and nondurable goods, in business fixed investment, and in residential construction. It was anticipated that business inventory accumulation would remain near the rate of the second and third quarters. The staff projections of growth in real GNP during the year ahead reflected expectations that the expansion in business capital outlays would be sustained; that growth in consumer spending would remain moderate; that increases in State and local government purchases of goods and services would continue to be sizable; that the expansion in residential construction activity would taper off as the period progressed; and that the rise in Federal purchases of goods and services would be smaller than over the past year. The projections implied a gradual further decline in the unemployment rate over the year ahead. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1978 In October industrial production expanded 0.3 per cent, almost the same as in September, owing in part to an increase in automobile assemblies and to a large rise in coal output after the striking miners had returned to work. Capacity utilization in manufacturing was estimated to have remained at about 83 per cent; in both the materials-producing and the advanced processing industries, utilization rates were close to their levels in the second and third quarters. For the former group of industries, the rate was about 10 percentage points below the high reached in the preceding period of business expansion. Total nonfarm payroll employment expanded in October, although by considerably less than in September. Growth in employment in the service-producing industries slowed; in manufacturing both employment and the length of the average workweek of production workers changed little. Total employment, as measured by the survey of households, also increased less than in September, and the unemployment rate edged up from 6.9 to 7.0 per cent. From April through October the unemployment rate had fluctuated between 6.9 and 7.1 per cent. The pace of expansion in wage and salary disbursements and in total personal income picked up in September, the latest month for which data were available. In the third quarter as a whole, the gain in total personal income in current dollars was less than that in the first two quarters of 1977, but in real terms it was about equal to the average gain in the first two quarters. The dollar value of retail sales had risen 1.8 per cent in October, according to the advance report. Moreover, sales estimates for August and September were revised upward substantially— resulting in an increase of 1.5 per cent from the second to the third quarter, rather than the 0.3 per cent that had been reported earlier. Unit sales of new autos—domestic and foreign models—rose about 5 per cent in October, after having declined more than 10 per cent in September. At an annual rate of 10.9 million units, the level of sales in October was the same as in the third quarter but somewhat less than in the second quarter. Private housing starts were at an annual rate of slightly more than 2 million units in September, virtually unchanged from August. For the third quarter as a whole, starts were almost 8 per cent more than for the second quarter and at the highest level since Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 17 1973. Nearly three-fourths of the gain in the third quarter was accounted for by starts of multifamily units. The latest Department of Commerce survey of business plans, taken in late July and August and published in early September, suggested that spending for plant and equipment would be 13.3 per cent greater in 1977 than in 1976 and that the expansion in spending would be somewhat less in the second half of the year than in the first half. Private surveys suggested a somewhat smaller increase in capital outlays in 1978 than in 1977. Manufacturers' new orders for nondefense capital goods advanced sharply in September, bringing the total for the third quarter up to the second-quarter level. The machinery component of such orders—generally a better indicator of underlying trends in demand for business equipment—expanded about 5 per cent in the third quarter. At the same time contract awards for commercial and industrial buildings—measured in terms of floor space—rose about 10 per cent to a level 30 per cent higher than in the third quarter of 1976. The index of average hourly earnings for private nonfarm production workers advanced at a fast pace in October. The rate of increase over the first 10 months of the year was about 8 per cent, compared with a rise of about 7 per cent over the 12 months of 1976. The wholesale price index for all commodities, which had turned up in September after 3 months of little change, rose sharply in October. Average prices of farm products and foods advanced appreciably, after having declined over the preceding 4 months. The rise in average prices of industrial commodities in October was a little less than in September but about equal to the rate of increase over the past year. In September the consumer price index rose at an annual rate of about 4 per cent, the same as over the preceding 2 months but considerably less than during the first half of 1977. From June to September retail prices of foods increased only about 0.4 per cent, in contrast with a rise of nearly 7 per cent over the first 6 months of the year. The rise in average prices of commodities other than foods and of services also slowed during the third quarter. The trade-weighted value of the dollar—which had declined about 1 Vi per cent from late September to mid-October— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1978 depreciated about 1 per cent further over the period to mid- November, reflecting mainly appreciation of the Japanese yen, of the Swiss franc, and of the U.K. pound. Over the period, moreover, foreign central banks purchased a substantial amount of dollars, even though on October 31 the U.K. authorities allowed the pound to float upward. The downward pressure on the dollar was associated with continuing concern about the deficit in the U.S. current account, especially as compared with the surpluses in the current accounts of several other industrial countries. The U.S. foreign trade deficit declined somewhat in September, reflecting a sharp increase in exports that was attributable in large part to temporary factors—specifically, anticipation of the strike by longshoremen that began on October 1 and a rebound in shipments of coal from a strike-depressed level in August. For the third quarter as a whole, the deficit was about the same as for the second quarter. At U.S. commercial banks, growth in total credit accelerated in October from the relatively slow pace recorded in September. The pick-up reflected a vigorous expansion in bank lending that was offset only in part by a further reduction in holdings of Treasury securities. Growth in business loans at banks was especially strong in October, following little change in September. To some extent the monthly changes appeared to reflect a shift in the seasonal pattern that had not yet been captured in adjustment factors; the average increase over the 2 months represented a continuation of relatively strong growth. The outstanding volume of commercial paper issued by nonfinancial corporations declined in October by the same amount that it had in September. Nevertheless, business credit expansion through these two sources was brisk over the 2-month period. Growth in the narrowly defined money stock (M-l) accelerated in October to an annual rate of 12 per cent. However, data for early November suggested a sharp slowing of growth. Growth in M-2 also picked up during October and then slowed again in early November. In October expansion in the total of interest-bearing deposits included in M-2 was maintained at about its September pace, although the key components of this total showed divergent changes. Inflows of savings deposits to banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 19 slowed appreciably as yields on competitive market securities rose further above the ceiling rate on savings deposits, and the rate of expansion in small-denomination time deposits changed little. However, the rate of expansion accelerated for nonnegotiable, large-denomination time deposits, which are not subject to interest rate ceilings. In association with the increase in loan demand, banks also expanded the outstanding volume of negotiable, largedenomination CD's (not included in M-2) by the largest amount for any month in nearly 3 years. Growth in M-3 changed little in October. Inflows of funds to nonbank thrift institutions slowed somewhat from the strong pace of the preceding 2 months, offsetting the effect on M-3 of the acceleration of the expansion in M-l. At its October meeting the Committee had decided that operations in the period immediately ahead should be directed toward maintaining about the prevailing money market conditions, as represented by a weekly-average Federal funds rate of 6V2 per cent, provided that M-l and M-2 appeared to be growing over the October-November period at annual rates within ranges of 3 to 8 and 5Vi to W2 per cent, respectively. However, the members also had agreed that if growth in the aggregates appeared to approach or move beyond the limits of their specified ranges, the operational objective for the weekly-average Federal funds rate should be varied in an orderly fashion within a range of 6lA to 63A per cent. Immediately following the meeting, incoming data had suggested that over the October-November period M-l and M-2 would grow at rates within their specified ranges. Accordingly, the Manager of the System Open Market Account sought to maintain the Federal funds rate at around 6V2 per cent. In late October, however, additional data suggested that M-l and M-2 were growing at rates approaching or moving beyond the upper limits of their ranges. Therefore, the Manager sought a slight firming in the funds rate. Still later, available data again suggested that growth in both aggregates would be within the ranges; hence the Manager's objective for the funds rate was returned to 6V2 per cent. During the inter-meeting period the funds rate generally fluctuated between 6V2 and 6% per cent, and it was at the lower rate in the last few business days before this meeting of the Committee. Fluctuations in other market interest rates were larger than those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1978 in the funds rate, owing chiefly to changes in the perceptions of market professionals concerning the probable course of monetary policy. But on balance over the period, changes in interest rates were quite small; short- and medium-term rates generally declined a little, and changes in bond yields were mixed. In late October most large commercial banks raised the rate on loans to prime business borrowers from IV2 to 7% per cent. A few major banks, located chiefly on the west coast, held their prime rate at IV2 per cent. On October 25 the Board of Governors announced its approval of actions by directors of all 12 Federal Reserve Banks raising the discount rate from 53A to 6 per cent, effective October 26. In announcing the approval, the Board stated that the action was taken in recognition of increases that had occurred in other shortterm interest rates and that it would bring the discount rate into closer alignment with short-term rates generally. The Board also stated that the increase would reduce the incentive for member banks to borrow from the Federal Reserve. Member bank borrowing had increased to a daily average of more than $1.8 billion during the week ending October 19, compared with an average of $337 million 5 weeks earlier. In the week ending November 9, dailyaverage borrowings were down to $887 million. Major indexes of stock prices declined to new lows for 1977 during the initial weeks of the inter-meeting period, but then rallied in early November. At the time of the November meeting the indexes were about 5 per cent above their 1977 lows. In November, in connection with its quarterly refinancing, the U.S. Treasury refunded $2.4 billion of maturing debt held by the public; sold $4.1 billion of additional securities to the general public for cash; and sold $700 million of new securities directly to foreign central banks for cash. Securities issued to the public in this operation included $3.3 billion of 3-year notes, sold at an average yield of 7.24 per cent; $2.0 billion of 10-year notes, sold at an average yield of 7.69 per cent; and $1.3 billion of 30-year bonds, sold at an average yield of 7.94 per cent. At the time that plans for the November refinancing were announced, the Treasury reported that its cash-borrowing needs in the fourth quarter were expected to total $18% billion. Gross public bond offerings by nonfinancial corporations de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 21 clined in October. However, the total volume of new corporate bond issues was sustained by unusually large offerings by financial firms, including several large issues of mortgage-backed bonds. In October the volume of mortgage lending apparently remained close to its unprecedented third-quarter pace. The increase in mortgage loans at commercial banks was almost as large as the record monthly-average gain in the third quarter; and net acquisitions of mortgage loans at savings and loan associations were probably about maintained, even though inflows of deposits to these institutions slowed somewhat. Outstanding mortgage commitments of the associations had risen to a record level at the end of September, and in October these institutions increased their reliance on borrowings from the Federal home loan banks and on the sale of mortgage-backed bonds. Between mid-October and mid-November the average interest rate on new commitments for conventional home mortgages at savings and loan associations changed little. In the Committee's discussion of the economic situation, the members agreed that the staff projections—suggesting that growth in real GNP would continue at a moderate, although gradually diminishing, pace throughout 1978—were reasonable. There were, however, some shadings of view about prospects for the economy. Two members suggested that the outlook was potentially stronger than that implied by the staffs projections. One of these members remarked that some of the uncertainties that had plagued this business expansion were being cleared up. In his judgment a reasonably good fourth quarter, which he was inclined to expect, could have a favorable influence on business and consumer attitudes; and that development, in turn, could affect business activity in 1978. The other member observed that there was a real possibility that 1978 would prove to be a very good year, particularly if administration statements were of a kind that tended to strengthen business confidence. In a related comment, another member observed that business decisions were being influenced by uncertainty generated not only by Federal tax and energy policies but also by expectations of further inflation. Two members expressed the view that while the staff projections were not unreasonable, any deviations from them were more likely to be in the direction of shortfalls than of overshoots—particularly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1978 in the latter part of the projection period. One of these members remarked that economic policy-makers, including the Federal Reserve, would need to act if any marked slowing in the rate of economic growth appeared likely to develop. However, in his judgment it was too early to reach such a conclusion. In this connection, he noted that there seemed to have been a general tendency among economic forecasters in recent years to underestimate growth rates by progressively larger amounts for more distant periods. The other member who thought the staffs projections were on the high side of the range of possibilities observed that there was ample time for new developments to lead to improved prospects for the second half of 1978. At the moment, however, he did not find such developments to be clearly in prospect. It was noted during the discussion that, according to projections of the Federal budget on a "high employment" basis, fiscal policy would move from a highly stimulative stance in the second half of 1977 to approximate neutrality by the end of 1978, unless some new fiscal initiatives were undertaken. It was also noted that sustained growth in spending by State and local governments was likely to contribute to the strength of the expansion, but that the foreign trade sector would probably be a source of weakness. It was suggested that prospects for business capital spending were a key element in the economic outlook. One member observed that the underlying need for additions to capacity might soon have an increasing impact on spending for plant and equipment—a greater impact than implied by the recent private surveys of business spending plans—especially if proposals for reductions in taxes should prove to be reasonable and if business confidence should improve. Another member remarked that enough time had elapsed since the culmination of the recession in early 1975 for businessmen to conclude that profit opportunities had been neglected and for them to become more willing to take risks on longer-term commitments. This member added, however, that he expected uncertainties to persist throughout 1978, in part because of a bulge in the rate of inflation early in the year that in his opinion would be produced mainly by recent and prospective Federal legislation. Other comments about the outlook included the observation by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 23 one member that the rate of economic growth projected by the staff for late 1978, although somewhat below the rates projected for earlier in the year, was still quite satisfactory. Another member remarked that he expected the growth rate to be lower in the first quarter of 1978 and higher in the second quarter than the staffs projections suggested. In his judgment it was too early to arrive at any firm view about prospects for the second half of next year. At its October meeting the Committee had agreed that from the third quarter of 1977 to the third quarter of 1978 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M-1, 4 to 6V2 per cent; M-2, 6V2 to 9 per cent; and M-3, 8 to IOV2 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 the discussion of policy for the period immediately ahead, members noted that growth in the monetary aggregates appeared to be slowing sharply in November. It was observed that for a number of reasons growth rates for December were particularly difficult to project, but even if they also proved to be low, two consecutive months of slow growth would be acceptable in view of the rapid monetary expansion of recent months. The comment was made that the sharp slowing in early November suggested that the aggregates might grow at reasonably satisfactory rates over the November-December period, assuming continuation of a Federal funds rate at about its current level. Many members indicated that they would like to maintain stable conditions in the money market for a time and that they were willing to accept a rate of growth in M-1 over the November-December period within a somewhat wider range than usual, encompassing relatively low growth. Most members expressed a preference for continuing to give greater weight than usual to money market conditions in conducting open market operations in the period until the next meeting of the Committee. However, a number of members were in favor of basing operating decisions primarily on the behavior of the monetary aggregates. The members did not differ greatly in their preferences for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1978 operating specifications for the period immediately ahead. Most members favored a range of 1 to 6 or 1 to 7 per cent for the annual rate of growth in M-l over the November-December period and a range of 5 to 9 per cent, or a slightly lower one, for growth in M-2. With respect to M-l, some sentiment was also expressed for a range of 2 to 7 per cent. And one member suggested a range of 2Vi to IVi per cent because he was concerned that the velocity of M-l would not tend to increase so much in the period ahead as he thought was implied by the lower range. With respect to the Federal funds rate, almost all members favored an operating range of 6lA to 63A per cent for the period until the next meeting. However, one member who preferred to base decisions for operations primarily on the behavior of the monetary aggregates suggested a wider range, one of 6 to 7 per cent. At the conclusion of the discussion the Committee decided that operations in the period immediately ahead should be directed toward maintenance of prevailing money market conditions, as represented by the current level of the Federal funds rate. However, the members agreed that if growth in the aggregates should appear to approach or move beyond the limits of their specified ranges, the operational objective for the weekly-average Federal funds rate should be varied in an orderly fashion within a range of 6lA to 63A per cent. With respect to the annual rates of growth in M-l and M-2 over the November-December period, the Committee specified ranges of 1 to 7 per cent and 5 to 9 per cent, respectively. It was also agreed that in assessing the behavior of the aggregates, the Manager should give approximately equal weight to the behavior of M-l and M-2. 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 Fed eral Reserve Bank of New York: The information reviewed at this meeting suggests that growth in real output of goods and services is picking up in the current quarter from the reduced pace in the third quarter. The dollar value of total retail sales, which had been unchanged in September, rose substan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 25 tially in October. Industrial production and employment increased somewhat. The unemployment rate, at 7.0 per cent, remained in the narrow range prevailing since April. The wholesale price index for all commodities rose sharply in October, as average prices of farm products and foods increased after having declined appreciably over the preceding 4 months. Prices of industrial commodities rose at about the average rate of the preceding 12 months. The index of average hourly earnings increased sharply in September and has advanced at a somewhat faster pace so far this year than it had on the average during 1976. The trade-weighted value of the dollar against major foreign currencies has declined further since mid-October. In September the U.S. foreign trade deficit was reduced somewhat, in part as a result of temporary factors. M-1 and M-2 increased substantially in October, but growth slowed sharply in early November. In October inflows to banks of the total of savings deposits and small-denomination time deposits fell off, but banks expanded the outstanding volume of largedenomination CD's substantially as credit demands strengthened. Inflows to nonbank thrift institutions slowed somewhat in October from the strong pace of the preceding 2 months. Following a substantial rise in member bank borrowings, Federal Reserve discount rates were increased from 53A to 6 per cent in late October. Market interest rates have fluctuated moderately since mid-October and most recently have tended to decline. 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 October 18, 1977, the Committee agreed that growth of M-l, M-2, and M-3 within ranges of 4 to 6V2 per cent, 6V2 to 9 per cent, and 8 to lOVi per cent, respectively, from the third quarter of 1977 to the third quarter of 1978 appears to be consistent with these objectives. These ranges are subject to reconsideration at any time as conditions warrant. At this time, the Committee seeks to maintain about the prevailing money market conditions during the period immediately ahead, provided that monetary aggregates appear to be growing at approximately the rates currently expected, which are believed to be on a path reasonably consistent with the longer-run ranges for monetary aggregates cited in the preceding paragraph. Specifically, the Committee seeks to maintain the weekly-average Federal funds rate at about the current level, so long as M-l and M-2 appear to be growing over the November-December period at annual rates within ranges of 1 to 7 per cent and 5 to 9 per cent, respectively. If, giving approximately equal weight to M-1 and M-2, it appears that growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1978 rates over the 2-month period are approaching or moving beyond the limits of the indicated ranges, the operational objective for the weekly-average Federal funds rate shall be modified in an orderly fashion within a range of 6!4 to 63A per cent. If it appears during the period before the next meeting that the operating constraints specified above are proving to be significantly inconsistent, the Manager is promptly to notify the Chairman who will then decide whether the situation calls for supplementary instructions from the Committee. Votes for this action: Messrs. Burns, Volcker, Coldwell, Gardner, Guffey, Jackson, Lilly, Mayo, Morris, Partee, Roos, and Wallich. Votes against this action: None. 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

27 Law Department Statutes, regulations, interpretations, and decisions RESERVES OF MEMBER BANKS Schedule B to Form TA-1 ("revised Schedule B"), The Board of Governors has amended its Regula- the form used for the registration of transfer tion D to exempt from the definition of the term agents. The Board has also amended instructions to deposit a member bank's borrowings from a Form TA-1, and adopted a temporary exemptive member bank whose head office is located outside rule extending the filing deadline for the schedule the United States. from January 30, 1978, to April 6, 1978. Effective December 23, 1977, Section 204.1(f) is 1. Section 208.8(f) is amended by adding a new amended to read as follows: paragraph (4) to read as follows: SECTION 208.8—BANKING PRACTICES SECTION 204.1—DEFINITIONS * * * ** (f) STATE MEMBER BANKS AS TRANSFER (f) DEPOSITS AS INCLUDING CERTAIN PROMIS- AGENTS. SORY NOTES AND OTHER OBLIGATIONS. For the purposes of this Part, the term "deposits" also includes a member bank's liability on any promissory (4) Every State member bank or any of its subnote, acknowledgment of advance, due bill, sidiaries that is registered with the Board as a banker's acceptance, or similar obligation (written transfer agent is exempted until April 3, 1978, from or oral) that is issued or undertaken by a member that part of the provision of Section 208.8(f)(2) that bank as a means of obtaining funds to be used in states that "[w]ithin thirty calendar days following its banking business, except any such obligation the close of any calendar year . . . during which the that: information required by Item 7 of Form TA-1 (1) Is issued to (or undertaken with respect to) becomes inaccurate, misleading, or incomplete, the and held for the account of (i) a domestic banking bank or its subsidiary shall file an amendment to office6 of another bank or (ii) an agency of the Form TA-1 correcting the inaccurate, misleading or United States or the Government Development incomplete information." Bank for Puerto Rico; 2. Section 225.5(c) is amended by adding a new paragraph (4) to read as follows: SECTION 225.5—ADMINISTRATION MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (c) Registration of certain bank holding companies and their nonbank subsidiaries as transfer BANK HOLDING COMPANIES agents. The Board of Governors has adopted a revised 6 Any banking office (i) in any State of the United States or the District of Columbia of a bank organized under domestic or (4) Every bank holding company and nonbank foreign law or (ii) of a member bank whose head office is located subsidiary of a bank holding company that is regisoutside the States of the United States or the District of Columbia tered with the Board as a transfer agent is exempted provided, reserves are required to be maintained by such member bank under this Part against the deposit liabilities of such office. until April 3, 1978, from that part of the provision of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1978 Section 225.5(c)(2) that states that "(wjithin thirty ing or incomplete, the bank holding company or its calendar days following the close of any calendar nonbank subsidiary shall file an amendment to year . . . during which the information required by Form TA-1 correcting the inaccurate, misleading or Item 7 of Form TA-1 becomes inaccurate, mislead- incomplete information". BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 the shareholders who now control Bank directly OF BANK HOLDING COMPANY ACT will control Bank indirectly through Applicant, and since Applicant controls no other banks in the Dexter Banking Company, relevant market,3 consummation of the proposal Dexter, Kansas would not eliminate competition or increase the concentration of banking resources in any relevant Order Approving area. Thus, the Board concludes that the competi- Formation of Bank Holding Company tive effects of the proposal are consistent with approval of the application. Dexter Banking Company, Dexter, Kansas, has The financial and managerial resources and the applied for the Board's approval under § 3(a)(1) of future prospects of Applicant and Bank, as well as the Bank Holding Company Act (12 U.S.C. § 1842 of the other banks with which one of Applicant's (a)(1)) of formation of a bank holding company principals is associated, are considered generally by acquiring 80 per cent or more of the voting satisfactory. Although Applicant will incur debt in shares of The Farmers & Merchants State Bank of connection with the proposal, it appears that the Dexter Kansas ("Bank"), Dexter, Kansas. projected income from Bank should provide suffi- Notice of the application, affording opportunity cient revenue to service the debt without impairing for interested persons to submit comments and the financial condition of Bank. Accordingly, conviews, has been given in accordance with § 3(b) of siderations relating to banking factors are consisthe Act. The time for filing comments and views has tent with approval of the application.4 expired, and the Board has considered the applica- While consummation of the proposal would have tion and all comments received in light of the no immediate effect on services offered in the area, factors set forth in § 3(c) of the Act (12 U.S.C. considerations relating to the convenience and § 1842(c)). needs of the community to be served are consistent Applicant, a Kansas corporation, was formed in with approval. Accordingly, it is the Board's judg- 1973 for the purpose of engaging in general insur- ment that consummation of the proposed transacance agency activities in Dexter, Kansas.1 Upon tion is consistent with the public interest and that acquisition of Bank (deposits of $2.9 million), Ap- the application should be approved. plicant will control the 546th largest bank in Kan- On the basis of the record, the application is sas, holding approximately 0.03 per cent of total approved for the reasons summarized above. The deposits in commercial banks in the State.2 Bank is the sixth largest of eight banks competing in Cowley County, Kansas, which approximates 3 One of Applicant's principals is associated with three other banks, one of which, State Bank of Burden, Burden, Kansas, is the relevant banking market, and holds approxiwithin the relevant banking market and, with deposits of $2.3 mately 2.7 per cent of the total deposits in commer- million, controls 2.2 per cent of the deposits in commercial banks cial banks in that market. Since the proposed in that market. State Bank of Burden and Bank together control only 4.9 per cent of total market deposits. Moreover, Applicant's transaction is essentially a reorganization whereby principal serves only as a director of State Bank of Burden and has only a minority interest in that bank. In view of these facts, competitive factors related to this application are considered to be 1 Applicant has engaged in the sale of insurance in Dexter, consistent with approval. Kansas, since its incorporation in November, 1973. Before it 4 On January 23, 1975, the Board denied an earlier application acquires Bank, Applicant will terminate its insurance agency by Applicant to acquire Bank. 61 Federal Reserve BULLETIN 103 activities, and Bank will engage in insurance activities in accord- (1975). That denial was based primarily on considerations relating ance with Kansas law. to banking factors that were at that time unsatisfactory but that 2 All banking data are as of December 31, 1976. have since improved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 29 transaction shall not be made before the thirtieth 26.3 per cent of total deposits in commercial banks calendar day following the effective date of this in the State. Since Bank is a proposed new bank, Order, or later than three months after the effective Bank's acquisition by Applicant would not cause date of this Order unless such period is extended for any immediate increase in Applicant's share of good cause by the Board, or by the Federal Reserve commercial bank deposits in the State. Bank of Kansas City pursuant to delegated author- The Comptroller of the Currency has granted ity. preliminary approval of a charter for Bank and it is By order of the Board of Governors, effective to be located in the area of the Crossroads Shopping December 21, 1977. Center in St. Cloud, Minnesota. Applicant is not currently represented in the relevant market, which Voting for this action: Vice Chairman Gardner and is approximated by the eastern half of Stearns Governors Wallich, Cold well, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. County, the western half of Sherburne County, and all of Benton County. Protestants challenge this (Signed) GRIFFITH L. GARWOOD, market definition, asserting that the relevant mar- [SEAL] Deputy Secretary of the Board. ket extends to portions of several counties adjacent to the market area described above. Protestants' First Bank System, Inc., market definition includes the cities of Little Falls, Minneapolis, Minnesota Paynesville, and Sauk Centre, where Applicant has bank subsidiaries. Protestants' market definition is Order Approving based on an analysis of highway access to the St. Acquisition of Bank Cloud area, banking business in the area derived First Bank System, Inc., Minneapolis, Min- from adjacent counties, and marketing patterns of nesota, a bank holding company within the meaning St. Cloud broadcast and print media, whereas the of the Bank Holding Company Act, has applied for relevant market approximation used by the Board is the Board's approval under § 3(a)(3) of the Act (12 derived from similar criteria in addition to commut- U.S.C. § 1842(a)(3)) to acquire all of the voting ing data, level of retail sales, and service availabilshares (less directors' qualifying shares) of Granite ity in the St. Cloud area. City National Bank of St. Cloud, St. Cloud, Min- Examination of submissions by Protestants and nesota. Applicant indicates that the amount of business that Notice of the application, affording opportunity Applicant's subsidiaries located in the market defor interested persons to submit comments and fined by Protestants derive from St. Cloud is insigviews, has been given in accordance with § 3(b) of nificant. Media circulation patterns are not rethe Act. The time for filing comments and views has garded as a reliable guide for defining markets, as expired, and the Board has considered the applica- illustrated by the fact that such an approach would tion and all comments received in light of the put most of the State of Minnesota and portions of factors set forth in § 3(c) of the Act (12 U.S.C. neighboring States in the Minneapolis/St. Paul § 1842(c)). These comments include, but are not banking market. The evidence of record in this case limited to, those on behalf of the Independent demonstrates that Little Falls, Paynesville, and Bankers of Minnesota, Minneapolis, Minnesota; Sauk Centre are sufficiently removed from St. the St. Cloud National Bank & Trust Company, St. Cloud in terms of distance and commuting levels to Cloud, Minnesota; Zapp National Bank of St. be placed in banking markets separate from that of Cloud, St. Cloud, Minnesota; Plaza Park State St. Cloud. On the basis of its analysis of all the facts Bank, Waite Park, Minnesota; and The First of record, the Board has concluded that the appro- American National Bank of St. Cloud, St. Cloud, priate market for analyzing the competitive effects Minnesota (hereinafter collectively referred to as of the subject proposal is approximated by the "Protestants"). tri-county area described above. Applicant, the largest banking organization in The St. Cloud banking market is served by 18 Minnesota, controls 87 banks with total deposits of commercial banking institutions, the four largest of $6.2 billion.1 which hold 63.7 per cent of total commercial bank Fifty of Applicant's subsidiary banks are located deposits in the market. The market shares of the in Minnesota, controlling $4.2 billion in deposits, or four largest organizations range from 10.8 per cent to 21.1 per cent, so that no one of the four can be said to dominate the market. In view of the market 1 Banking data are as of March 31, 1977. shares of the largest organizations and the number Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 1978 of banking organizations represented in the market, tionally, the Board is unable to conclude that Prothe St. Cloud market cannot be regarded as signifi- testants' assessment of the effect of this acquisition cantly concentrated. Since Bank is a proposed new on statewide concentration is correct, since Applibank, consummation of Applicant's proposal would cant's acquisition of shares of Bank, which curnot eliminate any existing competition. rently holds no deposits, will not increase per se the In its analysis of the subject application, the amount of banking resources under Applicant's Board has considered the comments submitted by control. Any increase in Applicant's resources that Protestants. Protestants are concerned that con- may eventually result from its control of Bank summation of the subject proposal would would occur through the operation of a normally strengthen Applicant's "dominant" position in the competitive market. State, increase concentration of banking resources While, in some instances, de novo expansion in a on a statewide level, and have adverse effects on market by a leading organization within that market competition in the St. Cloud market. Protestants could reduce prospects for market deconcentration argue that acquisition of Bank by Applicant will by preempting sites for de novo entry or expansion preempt a valuable site for future de novo entry into by other firms, that does not seem to be the case the St. Cloud market.2 Protestants request that the here. Applicant's de novo expansion into St. Cloud Board hold a hearing on the subject application. would tend to lower overall market concentration The Board has examined the record of the hear- inasmuch as Applicant is not presently represented ing held in connection with the chartering of Bank in the relevant market. Growth trends in the market and in which each of the Protestants participated, area indicate that establishment of Bank is not the written submissions of Protestants and Appli- premature and does not represent a site-preemption cant's responses, and is unable to conclude that a strategy on the part of Applicant.3 Rather, it aphearing would significantly supplement the record pears that the formation of Bank is a response to the before the Board or resolve issues not already growing needs of a growing market. discussed at length in the written submissions of On the basis of the facts of record, including the Protestants and Applicant and in the record of the record of the chartering hearing and the submishearing before the Office of the Comptroller of the sions of Protestants and Applicant, the Board con- Currency. Protestants have neither specified any cludes that, given the growth of the market and the particular issue of material fact that a hearing would fact that Applicant is not currently represented in resolve nor indicated what additional evidence, if that market, consummation of this proposal would any, they would adduce at such a hearing. In view not result in concentration of financial resources or of the foregoing, Protestants' requests for a hearing adversely affect competition in the relevant market. are hereby denied. Based upon the information on record in this While Protestants characterize Applicant as application, the financial and managerial resources "dominant" in the relevant market, its definition of and future prospects of Applicant, its subsidiaries the relevant market, as discussed above, is overly and Bank are regarded as generally satisfactory. broad. None of Applicant's subsidiaries are repre- Bank, a proposed new bank, has no financial or sented in the relevant market as it is properly operating history; however, its prospects as a subdefined. Applicant cannot be considered "domi- sidiary of Applicant appear favorable. Connant" in a market in which it does not currently siderations relating to banking factors are therefore have a competitive presence. Indeed, Applicant's consistent with approval of the application. subsidiary banks in markets adjacent to the St. Bank will operate in the growing St. Cloud area Cloud market derive insubstantial amounts of de- as an additional full-service banking facility offering posits from Bank's proposed service area. Addi- a wide array of customer services. Accordingly, considerations relating to the convenience and needs of the community to be served lend some weight toward approval of the application. It is the 2 In support of their contentions Protestants submitted, inter alia, a research report on Minnesota's banking structure prepared by Paul F. Jessup for the Federal Reserve Bank of Minneapolis. In support of its position, Applicant submitted a privately commissioned economic report prepared in April 1975, in connection with 3 The tri-county area has grown in population from 110,493 in Bank's application to the Comptroller of the Currency for a 1960 to a State-estimated 150,060 in 1975. According to the charter. Also included in the record on this application is the Minnesota Department of Employment Services, the annual avertranscript of a hearing conducted by the Regional Administrator of age number of workers employed in the St. Cloud area increased National Banks on May 30, 1975, at which Protestants objected to 14.6 per cent between 1970 and 1976. The State of Minnesota the chartering of Bank, making essentially the same contentions recently characterized St. Cloud as its fastest growing metropolithat they have made in protesting the subject application. tan area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 31 Board's judgment that the proposed acquisition mercial banks in Missouri.1 Upon consummation of would be in the public interest and that the applica- the proposed transaction, Applicant would be the tion should be approved. 27th largest banking organization in the State. Ap- On the basis of the record, the application is proval of the application would not increase signifiapproved for the reasons summarized above. The cantly the concentration of banking resources in transaction shall not be made (a) before the thirtieth Missouri. calendar day following the effective date of this Kansas City Bank ($48.4 million in deposits) Order or (b) later than three months after that date, controls 0.87 per cent of deposits in the relevant and (c) Granite City National Bank of St. Cloud, St. banking market,2 while Westport Bank ($42.9 mil- Cloud, Minnesota shall be opened for business not lion in deposits) controls 0.78 per cent of deposits in later than six months after the effective date of this the same market. Upon consummation of the pro- Order. Each of the periods described in (b) and (c) posal, Applicant would control 1.65 per cent of total may be extended for good cause by the Board, or deposits in commercial banks in the relevant marby the Federal Reserve Bank of Minneapolis pur- ket and would be the 17th largest banking organizasuant to delegated authority. tion in the market. By order of the Board of Governors, effective Kansas City Bank and Westport Bank are com- December 13, 1977. monly owned and managed by principals of Applicant3 and the proposal represents essentially a Voting for this action: Chairman Burns and Governors restructuring of ownership into corporate form. In a Gardner, Coldwell, Jackson, and Partee. Present and case where a prior purchase of the shares of two abstaining: Governor Lilly. Absent and not voting: Governor Wallich. banks by an applicant's principals eliminates substantial competition between the banks, the Board (Signed) GRIFFITH L. GARWOOD, is reluctant to approve the formation of a bank [SEAL] Deputy Secretary of the Board. holding company, even though such a formation, on its face, would not appear to eliminate significant competition.4 While approval of the subject proposal would further solidify the existing relationship between these two banks and reduce the likelihood that they would become independent competitors in Kansas City Bancshares, Inc., the future, it is the Board's view that consummation Kansas City, Missouri of this proposal would not have any significant Order Approving adverse effect on existing or potential competition Formation of Bank Holding Company in the relevant market. Each bank holds less than one per cent of the Kansas City Bancshares, Inc., Kansas City, Mistotal deposits in commercial banks in the relevant souri, has applied for the Board's approval under market. The Kansas City banking market is rela- § 3(a)(1) of the Bank Holding Company Act (12 tively unconcentrated with the 10 largest banking U.S.C. § 1842(a)(1)) of formation of a bank holding organizations controlling just 56.5 per cent of total company by acquiring 67.2 per cent of the voting market deposits. In view of the size of the banks to shares of Kansas City Bank & Trust Co., Kansas City, Missouri ("Kansas City Bank"), and 97 per cent of the voting shares of Westport Bank, Kansas City, Missouri ("Westport Bank"). 1 All banking data are as of December 31, 1976. Notice of the application, affording opportunity 2 The relevant banking market is the Kansas City banking for interested persons to submit comments and market, which is approximated by the northern half of Cass views, has been given in accordance with § 3(b) of County, all of Clay, Jackson, and Platte Counties in Missouri and Johnson and Wyandotte Counties in Kansas. This market contains the Act. The time for filing comments and views has 134 banks. expired, and the Board has considered the applica- 3 Applicant purchased 17.9 per cent of the voting shares of tion and all comments received in light of the Kansas City Bank in 1976. Applicant's principals control 59 per cent of the voting shares of Kansas City Bank. This raises a factors set forth in § 3(c) of the Act (12 U.S.C. rebuttable presumption, pursuant to § 225.2(b)(2) of Regulation Y § 1842(c)). (12 CFR 225.2(b)(2)), that Applicant exercises a controlling influence over Kansas City Bank. Consummation of the proposed Applicant is a Missouri corporation organized for transaction would formalize the control relationship that may have the purpose of becoming a bank holding company. existed between Applicant and Bank. Kansas City Bank and Westport Bank have aggre- 4 See the Board's Order of May 11, 1977, denying the application of Mahaska Investment Company, Oskaloosa, Iowa, to gate deposits of approximately $19.3 million, reprebecome a bank holding company (63 Federal Reserve BULLETIN senting 0.48 per cent of the total deposits in com- 579 (1977)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1978 be acquired and the large number of banking or- approved for the reasons summarized above. The ganizations competing in the market, it does not transaction shall not be made (a) before the thirtieth appear that consummation of the proposed transac- calendar day following the effective date of this tion will result in the elimination of a significant Order or (b) later than three months after the amount of existing competition. While approval of effective date of this Order, unless such period is this application would eliminate two potential entry extended for good cause by the Board, or by the vehicles for bank holding companies not repre- Federal Reserve Bank of Kansas City pursuant to sented in the market, the Board notes that 6 of 10 delegated authority. largest multibank holding companies in Missouri By order of the Board of Governors, effective are already represented in the market and that a December 12, 1977. large number of independent banks would remain available as entry vehicles after consummation of Voting for this action: Chairman Burns and Governors the subject transaction.5 Moreover, the Kansas Gardner, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Governor Wallich. City banking market appears to be attractive for de novo entry.6 Two principals of Applicant are also (Signed) GRIFFITH L. GARWOOD, associated with six other banks in Missouri.7 How- [SEAL] Deputy Secretary of the Board. ever, none of these banks competes in the relevant banking market nor are they part of any holding Manchester Financial Corp., company system and, hence, the subject proposal St. Louis, Missouri would eliminate no existing competition between these six banks and Kansas City Bank or Westport Order Denying Requests Bank. Accordingly, on the basis of the facts of for a Stay and Reconsideration record, the Board concludes that consummation of Plaza Bank of West Port, St. Louis, Missouri the proposal would not have any significantly ad- ("Petitioner"), has requested reconsideration and a verse effect on competition. stay, pending judicial review, of the Order of the The financial and managerial resources and fu- Board of Governors, dated August 15, 1977, ture prospects of Applicant, Kansas City Bank and whereby the Board approved the application of Westport Bank are considered to be satisfactory Manchester Financial Corp., St. Louis, Missouri and are consistent with approval of the application. ("MFC"), for Board approval filed pursuant to Although Applicant will incur debt in connection section 3(a)(3) of the Bank Holding Company Act with the proposal, it appears to have the necessary (12 U.S.C. § 1842(a)(3) to acquire shares of Manfinancial resources available to service the debt chester Bank West County, Maryland Heights, without impairing the financial condition of either Missouri ("Bank"), a de novo bank.1 bank. Furthermore, the financial and managerial The Board has reviewed the request for reconresources of the other banking organizations with sideration and finds that it does not present any new which Applicant's principals are associated are facts that, for good cause shown, were not previregarded as satisfactory. While there will be no ously presented to the Board; nor does it otherwise immediate increase in the services offered by either appear to the Board that reconsideration would be bank as a result of the proposed transaction, the appropriate. Petitioner has requested that the considerations relating to the convenience and Board specifically address two issues: (1) whether needs of the community to be served are consistent the Board was required to consider whether the with approval of the application. It is the Board's chartering of Bank was invalid under § 362.415 of judgment that the proposed transaction would be the Missouri Statutes2; and (2) whether the Board consistent with the public interest and that the was required to file an Environmental Impact application should be approved. Statement ("EIS") pursuant to the Environmental On the basis of the record, the application is 1 63 Federal Reserve BULLETIN 848 (197/;. 5 Of the 134 banks in the Kansas City banking market 94 banks 2 MO. STAT. ANN. § 362.415 (Vernon's 1968). Section 362.415 are not affiliated with multibank holding companies. provides in pertinent part:*** 6 The ratio of deposits in the relevant market is $41.3 million as 1. No person unauthorized by law shall subscribe to or become compared with $26.9 million in the State of Missouri as a whole. a member of, or be in any way interested in any association, 7 The banks are: Citizens State Bank of Fair Play, Fair Play; institution or company formed or to be formed for the purpose of Tri-County State Bank of El Dorado Springs, El Dorado Springs; issuing notes or other evidences of debt to be loaned or put in Humansville Bank, Humansville; The Lowry City Bank, Lowry circulation as money; nor shall any such person subscribe to or City; Osceola Bank, Osceola; Citizens Bank of Appleton City, become in any way interested in any bank or fund created or to be Appleton City, Missouri. created for the like purposes or either of them.*** Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 33 Policy Act of 1969.3 In the context of this applica- Bank from five individual incorporators of Bank to tion, the Board is of the view that it is not required MFC. The Board finds that such a transfer, alone, to consider issues of State law of the type advanced would not significantly affect the quality of the by Petitioner in deciding whether to approve or human environment.6 Moreover, the Petitioner has deny an application. Similarly, the Board is not not indicated how it believes the Board's action required to file an EIS in connection with the would affect the environment.7 Thus, having resubject application as the Board's approval of the viewed the question in the context of Protestant's Application does not represent a "major Federal request, the Board finds that it is not required to file action significantly affecting the quality of the an EIS in connection with the acquisition of Bank human environment" necessitating the filing of an by MFC. EIS. Upon consideration of Petitioner's request for a The Petitioner argues that the chartering of Bank stay of the Board's Order pending judicial review was invalid under § 362.415 of the Missouri Statutes thereof, the Board finds that the stay should not be and that, pursuant to the Supreme Court's holding granted for the following reasons.8 First, the Board in Whitney National Bank of Jefferson Parish v. finds it unlikely, for the reasons discussed above, Bank of New Orleans and Trust Company {"Whit- that the Petitioner will succeed on the merits in its ney"),4 the Board is required to consider issues of case now before the Eighth Circuit U.S. Court of State law such as that presented by the acquisition Appeals. The Board finds by this Order that the of Bank by MFC. arguments advanced by Petitioner in favor of the Although the Board did not specifically address Board's reconsideration of its August 15, 1977 the issue of the alleged violation of § 362.415 of the Order are without merit. Secondly, the Petitioner Missouri Statutes in its Order, it did address the has not made a showing that it will suffer irreparaclosely related issue of the alleged violation of ble harm if the stay is denied. Indeed, the record § 362.015 of the Missouri Statutes.5 The Board found relied upon by the Board in its August 15, 1977 that under Whitney, the Board was not required to Order contradicts Petitioner's claim. The Order consider a violation that occurred, if at all, upon the indicates that: (1) the acquisition of Bank by MFC issuance of the charter for Bank by the Missouri would have "no adverse competitive effect"; and Commissioner of Finance. Only where the acquisi- (2) that there is "no evidence in the record to tion of a bank by a bank holding company would indicate that this area will not continue to experiresult in a violation of State law is the Board ence growth or that the area is unable to support a required to consider issues of State law. However, new bank." Therefore, it appears from the facts the alleged violation of § 362.415, like the alleged that Petitioner will not suffer irreparable harm if the violation of §362.015 previously considered by the stay is denied. Thirdly, a stay would act to seriously Board, occurred, if at all, upon the issuance of the harm MFC and the public. On December 2, 1977, charter for Bank by the Missouri Finance Commissioner. Approval of the application by the Board constituted an approval of Applicant's acquisition of shares of Bank, not approval of the chartering of 6 In more than twenty years of administering the Act, no one Bank. has ever brought to the Board's attention any adverse environmental consequence of any transfer of shares approved by the The second argument advanced by Petitioner, Board under the Act. Any environmental effect of the formation of that an EIS statement is required to be filed by the a new bank derives from the chartering of the bank, not from the transfer of its shares from its incorporators to a bank holding Board, is based upon section 102(2)(c) of the Nacompany. See First National Bank of Homestead v. Watson, 363 tional Environmental Policy Act (42 U.S.C. § 4332 F. Supp. 466 (D.C. D.C. 1973). (2)(c)) ("NEPA"), which provides that an EIS 7 Under the Bank Holding Company Act, the Board is required to take the convenience and needs of the community to be served must be prepared by any federal agency taking into consideration in acting upon an application filed with the ". . . major Federal action significantly affecting Board pursuant to section 3(a)(3) of the Act, § 12 U.S.C. § the quality of the human environment. ..." The 1842(a)(3). Had the Petitioner asserted specific facts suggesting somehow that approval of the application may have had an "Federal action" taken by the Board on August 15, adverse environmental impact, the Board could have considered 1977, was its approval of a transfer of shares of that impact in its consideration of the convenience and needs of the community. However, no such assertions have been made in this case and NEPA concerns have been raised seriously for the first time in Petitioner's request for reconsideration. 8 The Board has taken into consideration the four factors that 3 42 U.S.C. § 4332. Section 4332 provides that an EIS must be courts apply in deciding whether to stay agency orders: (1) prepared by any Federal agency taking "... major Federal action likelihood of success on the merits; (2) irreparable injury to significantly affecting the quality of the human environment." movant; (3) substantial harm to interested parties; and (4) the 4 379 U.S. 411 (1965). public interest, Washington Metropolitan Area Transit Commis- 5 63 Federal Reserve BULLETIN 848, 850-851. sion v. Holiday Tours, Inc., No. 77-1379 (July 5, 1977). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1978 Bank opened for business. A stay, if granted, could Applicant is a bank holding company by virtue of result in the closing of Bank, the sale of Bank's its ownership of 46.7 per cent of the shares of Bank shares by MFC, and lost revenue for Bank during and its control of the Bank of Northern Utah, the time it may be closed. Furthermore, Bank's Clearfield, Utah. Applicant is the 8th largest of 54 closing would cause disruption and inconvenience commercial banking organizations in Utah, with to those innocent members of the community who total deposits of $98.2 million, representing approxare customers of Bank. Finally, the public interest imately 2.6 per cent of the total deposits in comwould not be served by a stay for, if the stay were mercial banks in Utah.1 Applicant acquired 522 granted, the community may lose the only source of voting shares, or 0.47 per cent of the total outstandbanking services available to it, other than Peti- ing voting shares of Bank, without the Board's prior tioner, in the Bank's proposed service area.9 The approval, and now seeks the Board's approval to Board in its Order stated that the acquisition of retain these shares.2 Bank by MFC would "significantly enhance the Bank ($92.1 million in deposits) controls 2.4 per convenience and serve the needs of the commu- cent of the total commercial bank deposits in Utah nity." This benefit would be lost to the community and is the eighth largest commercial bank in the during such time as the stay would remain in effect. State. Bank is the third largest of eleven commer- Therefore, in light of the above considerations, cial banks in the relevant banking market,3 controlthe Board denies the Petitioner's requests for re- ling 16.8 per cent of market deposits.4 In view of the consideration and a stay of the Board's August 15, fact that Applicant already controlled Bank before 1977 Order. acquiring additional shares, it does not appear that By order of the Board of Governors, effective Applicant's retention of Bank's shares would have December 7, 1977. any adverse effect on competition, or increase the concentration of banking resources. Thus, competi- Voting for this action: Vice Chairman Gardner and tive considerations are consistent with approval of Governors Cold well, Jackson, and Partee. Absent and not the application. voting: Chairman Burns and Governors Wallich and Lilly. The financial resources and future prospects of (Signed) GRIFFITH L. GARWOOD, Applicant, Bank, and Bank of Northern Utah are [SEAL] Deputy Secretary of the Board. considered generally satisfactory. In making its analysis of the managerial resources of these or- Tennessee Homestead Company, ganizations, the Board notes that this application Ogden, Utah represents an after-the-fact request for the Board's approval to retain Bank shares acquired in violation Order Approving Retention of Bank Shares of the Act. Upon consideration of the facts and Tennessee Homestead Company ("Applicant"), Ogden, Utah, a bank holding company within the meaning of the Bank Holding Company Act ("Act"), has applied for the Board's approval 1 Banking data are as of June 30, 1977, unless indicated otherwise. under § 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to 2 On November 1, 1976, Applicant purchased 275 shares of retain 0.47 per cent of the voting shares of Bank of Bank and on March 11, 1977, Applicant purchased an additional 247 shares of Bank, representing 0.47 per cent of the total Utah ("Bank"), Ogden, Utah. outstanding voting shares of Bank. Prior to April 15, 1974, Notice of the application, affording opportunity Applicant held 52.8 per cent of the outstanding shares of Bank. As for interested persons to submit comments and a result of the merger of Bank of Ben Lomond, Ogden, Utah, into Bank on April 15, 1974, Applicant's ownership interest was views, has been given in accordance with § 3(b) of reduced to 46.25 per cent of the total outstanding shares of Bank. the Act. The time for filing comments and views has Prior to the merger, because Applicant owned over 50 per cent of expired, and the Board has considered the applica- the voting shares of Bank, Applicant could have acquired additional shares of Bank without the Board's prior approval, pursuant tion and all comments received, in light of factors to § 3(a)(B) of the Act. It appears that Applicant believed that § set forth in § 3(c) of the Act (12 U.S.C. § 1842(c)). 3(a)(B), which permits a company to acquire additional bank shares without prior Board approval if the company already owns or controls a majority of the bank's shares, was available to it because of an additional 4.7 per cent of Bank's shares held by Applicant's principals and by various family trusts. 3 The relevant banking market is approximated by the Ogden, 9 The Board notes that Petitioner has diligently pursued its Utah RMA, which is comprised of portions of Weber and Davis position through administrative and judicial procedures at the Counties, Utah. State level in its efforts to keep Bank from opening. Notwithstand- 4 Market data are as of June 30, 1976. ing such efforts, neither the Missouri Commissioner of Finance, Through Bank and Bank of Northern Utah, Applicant is the the State Banking Board, nor the Missouri State courts have seen third largest of ten banking organizations in the market, controlfit to stay the effectiveness of the Commissioner's order granting ling $79 million in deposits, or 18.1 per cent of total deposits in the Bank its charter. market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 35 circumstances surrounding Applicant's violations Notice of the application, affording opportunity and other information in the record evidencing for interested persons to submit comments and Applicant's intent and efforts to comply with the views, has been given in accordance with § 3(b) of requirements of the Act, including Applicant's the Act. The time for filing comments and views has adoption of a definite program to prevent the recur- expired, and the Board has considered the applicarence of violations, the Board has determined that tion and all comments received in light of the the circumstances of the violations do not reflect so factors set forth in § 3(c) of the Act (12 U.S.C. adversely on the managerial resources of Applicant § 1842(c)). as to warrant denial of the application. In other Applicant, the 16th largest banking organization respects, the managerial resources of Applicant, in Michigan, controls four banks with aggregate Bank, and Bank of Northern Utah are regarded as deposits of $362.1 million, representing approxigenerally satisfactory. Accordingly, considerations mately 1.1 per cent of the total deposits in commerrelating to banking factors are consistent with ap- cial banks in Michigan.2 Acquisition of Western, proval. which holds aggregate deposits of $158.8 million, Although there are no changes contemplated in and is thereby the 30th largest banking organization the services or facilities of Bank as a result of the in Michigan, will increase Applicant's share of retention of the voting shares, considerations relat- statewide deposits by 0.5 per cent and Applicant ing to the convenience and needs of the community would thereby become the 14th largest banking to be served are consistent with approval of the organization in Michigan. application. Therefore, it is the Board's judgment Both Niles Bank and Cassopolis Bank operate in that the proposed transaction is consistent with the the Niles, Michigan/South Bend-Elkhart, Indiana public interest and that the application should be banking market.3 Niles Bank also has branches in approved. the adjacent St. Joseph-Benton Harbor, Michigan On the basis of the record, the application is banking market.4 Western is the sixth largest bankapproved for the reasons summarized above. ing organization in the Niles market, holding 8.1 per By Order of the Board of Governors, effective cent of market deposits, and the fifth largest in the December 19, 1977. St. Joseph market, with 5.8 per cent of that market's deposits.5 None of Applicant's subsidiary Voting for this action: Chairman Burns and Governors Gardner, Wallich, Cold well, Jackson, Partee, and Lilly. banks competes in either of these markets. It does not appear that any of Applicant's subsidiary banks (Signed) GRIFFITH L. GARWOOD, derives significant amounts of deposits or loans [SEAL] Deputy Secretary of the Board. from the service area of Western's subsidiary banks; nor does it appear that any significant com- Pacesetter Financial Corporation, petition currently exists between any of Applicant's Grand Rapids, Michigan subsidiary banks, on the one hand, and Western's subsidiary banks, on the other. Thus, it does not Order Approving Acquisition of Bank appear that consummation of this proposal would eliminate any significant existing competition. Pacesetter Financial Corporation, Grand Rapids, Michigan, ("Applicant") a bank holding company Western has demonstrated no inclination to bewithin the meaning of the Bank Holding Company come a statewide competitor, and its competitive Act, has applied for the Board's approval under § 3 presence is felt only in the far southwestern portion (a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire of Michigan. Neither the Niles nor the St. Joseph all of the voting shares of Western Michigan Corpo- banking markets is highly concentrated and thus, elimination of Applicant as a potential de novo or ration, Niles, Michigan ("Western") a registered foothold entrant into either market would not have a bank holding company owning 100 per cent of the significant adverse effect on potential competition. First National Bank of Southwestern Michigan, Niles, Michigan ("Niles Bank"), and The First National Bank of Cassopolis, Cassopolis, Michigan ("Cassopolis Bank").1 2 Unless otherwise indicated, banking data are as of June 30, 1977. 3 This market is approximated by the Niles South Bend-Elkhart 1 By Order dated April 29, 1977 (63 Federal Reserve BULLETIN Rand McNally Area plus Cass Country, Michigan. 507 (1977)), the Board approved Western's application to acquire 4 The St. Joseph-Benton Harbor banking market is approxi- Cassopolis Bank. It is expected that this acquisition will be mated by the north-northwestern two-thirds of Berrien County, consummated shortly, and such consummation is assumed for Michigan plus the western half of Van Buren County, Michigan. purposes of this Order. 5 As of December 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1978 In view of the size of the market shares held by the voting shares of Parish National Bank, Bogalusa, Western, consummation of the proposed transac- Louisiana ("Bank"). tion, in any event, would eliminate only a very Notice of the application, affording opportunity slight amount of probable future competition, if for interested persons to submit comments and any, between Western and Applicant. views, has been given in accordance with § 3(b) of The financial and managerial resources of Appli- the Act. The time for filing comments and views has cant, Western, and Western's subsidiary banks are expired, and the application and all comments regarded as satisfactory, and the future prospects of received have been considered in light of the factors each appear favorable. The managerial resources of set forth in § 3(c) of the Act (12 U.S.C. § 1842(c)). Applicant's subsidiary banks are also satisfactory Applicant, a non-operating company with no and, in light of pending capital injections, their subsidiaries, was organized for the purpose of befinancial resources appear satisfactory and their coming a bank holding company by acquiring Bank. future prospects favorable. Accordingly, con- Bank has total deposits of $36 million, representing siderations relating to banking factors are consis- less than 1 per cent of total deposits in commercial tent with approval. banks in the State of Louisiana.1 Bank is the smallest Considerations relating to the convenience and of three commercial banks in the relevant banking needs of the community to be served lend some market,2 controlling 26.5 per cent of the deposits weight toward approval of the application, since therein. Principals of Applicant are principals of Applicant will seek, among other things, to improve First National Corporation, Covington, Louisiana, a trust services and to utilize electronic funds transfer one-bank holding company controlling First Naservices. These convenience and needs factors are tional Bank, Covington, Louisiana. First National sufficient to outweigh clearly the very slight ad- Bank is located 25 miles from Bank in a separate verse competitive factors mentioned above, and the banking market. In view of the distance between Board concludes that on balance the application Bank and First National Bank, consummation of the should be approved. instant proposal will have no adverse effect upon On the basis of the record, the application is existing competition, nor will consummation adapproved for the reasons summarized above. The versely affect potential competition or increase the transaction shall not be made (a) before the thirtieth concentration of banking resources in any relevant calendar day following the effective date of this area. Accordingly, it is concluded that competitive Order or (b) later than three months after the considerations are consistent with approval of the effective date of this Order, unless such period is application. extended for good cause by the Board, or by the The Board applies multi-bank holding company Federal Reserve Bank of Chicago pursuant to dele- standards in assessing the financial and managerial gated authority. resources and future prospects, both of an applicant By order of the Board of Governors, effective seeking to become a one-bank holding company and December 23, 1977. of its proposed subsidiary bank, where the principals Voting for this action: Chairman Burns and Governors of the applicant are engaged in establishing a chain of Gardner, Wallich, Coldwell, Jackson, and Partee. Absent one-bank holding companies.3 The financial and and not voting: Governor Lilly. managerial resources and future prospects of Applicant appear to be satisfactory. In view of Applicant's (Signed) GRIFFITH L. GARWOOD, commitment to augment Bank's capital by $500,000 [SEAL] Deputy Secretary of the Board. from the proceeds of Applicant's sale of its common stock and in view of Bank's commitment to issue subordinated debentures in the amount of $500,000, the financial resources and future prospects of Bank Parish National Corporation, appear to be satisfactory. The proposed transaction Bogalusa, Louisiana does not involve a change in management or management policies of Bank. The considerations relat- Order Approving Formation of Bank Holding Company Parish National Corporation, Bogalusa, 1 All deposit data are as of December 31, 1976. Louisiana, has applied for the Board's approval 2 The relevant banking market is approximated by Washington under § 3(a)(1) of the Bank Holding Company Act Parish, Louisiana. 3 See, e.g., Board's Order dated June 14, 1976, denying the (12 U.S.C. § 1842(a)(1)) of formation of a bank application of Nebraska Banco, Inc., Ord, Nebraska, 62 Federal holding company by acquiring 81 per cent or more of Reserve BULLETIN 638 (1976). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 37 ing to banking factors are consistent with approval of banks in the State.1 Since Bank is a proposed new the application. bank, its acquisition by Applicant would not in- There are no significant proposed changes in the crease the concentration of banking resources in operation or services of Bank. Considerations relat- Colorado. ing to the convenience and needs of the community Bank, which is currently in formation, would be to be served are consistent with approval of the located in the city of Arvada, in the northwest application. It has been determined that consumma- portion of the Denver banking market.2 There are tion of the proposed transaction would be consis- three other banks located in Arvada, one of which tent with the public interest and that the application is Protestant. Applicant is the second largest bankshould be approved. ing organization in the market, with seven of its On the basis of the record, the application is banking subsidiaries controlling 19.8 per cent of approved for the reasons summarized above. The market deposits. Since Bank is a proposed new transaction shall not be made (a) before the thirtieth bank, consummation of the proposal would not calendar day following the effective date of this eliminate any existing competition in the market. Order or (b) later than three months after the Moreover, given the size of the market, the number effective date of this Order, unless such period is of banks operating therein, and the prospects for extended for good cause by the Board, or by the continuing growth in the area, it does not appear Federal Reserve Bank of Atlanta pursuant to dele- that the proposal would have any adverse effects on gated authority. potential competition. On the basis of the above By order of the Secretary of the Board, acting and facts of record, the Board concludes that pursuant to delegated authority for the Board of competitive considerations are consistent with ap- Governors, effective December 2, 1977. proval of the application. The financial and managerial resources of Appli- (Signed) THEODORE E. ALLISON, cant, its subsidiaries, and Bank are regarded as [SEAL] Secretary of the Board. generally satisfactory. Bank has no financial or operating history; however, its future prospects as a subsidiary of Applicant appear favorable and considerations relating to banking factors are therefore regarded as consistent with approval of the application. As a new institution in the city of United Banks of Colorado, Inc., Arvada and the Denver market, Bank would serve Denver, Colorado as an additional source of a full range of banking services in the market. Accordingly, considerations Order Approving Acquisition of Bank relating to the convenience and needs of the community to be served are consistent with approval of United Banks of Colorado, Inc., Denver, Colthe application. orado, a bank holding company within the meaning In its review of the subject application, the Board of the Bank Holding Company Act, has applied for has given careful consideration to the comments the Board's approval under § 3(a)(3) of the Act (12 submitted on behalf of Protestant, a bank located U.S.C. § 1842(a)(3)) to acquire 80 per cent (or more) near the proposed site of Bank. Protestant conof the voting shares of United Bank of Arvada, tends, inter alia, that the banking needs of the N.A. Arvada, Colorado ("Bank"). community area are being adequately met at the Notice of the application, affording opportunity present time and there is no need for a new bank; for interested persons to submit comments and that the acquisition is anti-competitive; and that views, has been given in accordance with § 3(b) of Applicant's subsidiary banks are acting as de facto the Act. The time for filing comments and views has branches in violation of Colorado law.3 expired, and the Board has considered the application and all comments received, including those submitted on behalf of Northwest State Bank, Arvada, Colorado ("Protestant"), in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1 All banking data are as of December 31, 1976, and reflect bank § 1842(c)). holding company formations and acquisitions approved by the Board through August 17, 1977. Applicant, the second largest banking organiza- 2 The Denver market includes all of Denver, Adams, Arapahoe tion in Colorado, controls 18 banks with aggregate and Jefferson Counties and the Broomfield area in Boulder deposits of approximately $1.3 billion, representing County. 3 Protestant also requested a hearing on the instant application, 15.4 per cent of the total deposits in commercial (Footnote continued on following page) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1978 Protestant gave evidence in opposition to the 101. It is clear from a long line of court cases that a chartering of Bank at a public hearing before the State's restrictive branch banking laws do not au- Regional Administrator of the Office of the Comp- tomatically bar bank holding company operations. troller of the Currency, Denver, Colorado, on In a given case, the Board must examine the facts to May 11, 1976. The Comptroller of the Currency determine whether a particular acquisition would found that adequate demand for banking services constitute an illegal branch under State law. See existed to support an additional bank, and approved Gravois Bank v. Board of Governors 478 F.2d 546 Bank's national charter. The Board has reviewed (1973). If the Board determines that a violation of the facts of record, including the transcript of the State law would occur as a result of the consummahearing before the Comptroller, and finds that the tion of the proposal, it is required to disapprove the market can reasonably be expected to support an transaction. Whitney National Bank v. Bank of additional banking facility. New Orleans 323 F.2d 290 (D.C. Cir 1963), re- With regard to competition, Protestant contends versed on other grounds, 379 U.S. 411 (1965). that consummation of the proposal would enhance The facts of record indicate that Bank will be a Applicant's penetration in the market by placing separate corporation, with its own capital stock and Applicant in a dominant position in the market and a loan limit based upon such capital stock; that pre-empting a location for entry into the Denver Bank will be managed by its own officers; that market. Applicant competes with 80 banks in the Bank's board of directors will be generally separate Denver market, and its market share of 19.8 per and independent from the boards of Applicant and cent is not such that it could be characterized as of Applicant's subsidiaries; and that Bank will such a "dominant" organization in that market that maintain its own separate books of account, issue it should be denied the opportunity to expand de its own distinctive checks, and use its own stationnovo. Furthermore, Applicant's market share has ery. Moreover, except as permitted by law, money actually decreased by 6 percentage points from 20.4 deposited at Bank will not be credited to the per cent as of December 31, 1969. While, in certain account of a depositor at any other banking subinstances, de novo expansion in a market by a sidiary, nor will money deposited at the other leading organization within that market might re- subsidiaries be credited to accounts at Bank;5 duce the prospects for market deconcentration by Bank's officers and employees will not directly preempting viable sites for de novo entry or expan- perform any services for customers of Applicant's sion by other firms, Applicant's de novo expansion other subsidiary banks other than those services in the northwest portion of the Denver market4 is that would be provided for customers of other area not viewed by the Board with such concern. In fact, banks, and, conversely, officers and employees of it appears that the proposal would have only a Applicant's other subsidiary banks will not directly minimal impact on the market since the structure perform any services for customers of Bank that and prospects for the market should provide ample would not be provided for customers of other area opportunity for foothold entry or de novo expan- banks. Applicant further represents that it will sion by the State's other banking organizations. purchase Bank's shares through use of its own Protestant also contends that Bank's proposed capital resources. affiliation with Applicant would offend Colorado The Board concludes, based upon the above and law prohibiting branch banking, 1973 C.R.S. 11-6- other facts of record, that Applicant is a "traditionally recognized bank holding company which, with its own capital, invests in or buys the stock of banks,"6 and that, upon consummation of the proand that request is hereby denied. Under § 3(b) of the Act, the posed acquisition, Bank would not be an illegal Board is required to hold a hearing when the primary supervisor of branch of any of Applicant's other banking subthe Bank to be acquired recommends disapproval of the application (12 U.S.C. 1842(b)). In this case, after a hearing on the charter application, the Comptroller of the Currency issued preliminary charter approval to Bank on February 14, 1977, and he has not subsequently recommended that the subject application be denied. Thus, there is no statutory requirement that the Board hold a 5 Under recently enacted Colorado law, 73 C.R.S. 11-6.5-101, hearing. In view of the Board's conclusion that the record in this which becomes effective on January 1, 1978, Colorado banks are case is sufficiently complete to render a decision, the Board has authorized to engage, inter alia, in certain banking transactions denied Protestant's request for a hearing. (including making deposits and withdrawals) with their account 4 The Denver market has a population of 17,273 per banking holders through on-or off-premises communications facilities notoffice, as compared with 11,583 per banking office in the state of withstanding the limitations imposed by C.R.S. 11-6-101. Inas- Colorado. Thus the market may be characterized as an attractive much as Bank would not open until after the effective date of this one for de novo entry and approval of this proposal will not provision, any deposit taking arrangements involving such compreclude entry into the market by other banks or banking organi- munications facilities would be permissible under State law. zations. 6 Whitney 323 F.2d 290,303. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 39 sidiaries. Furthermore it appears that any indicia of tion and all comments received, including those unitary operations that may be present in Appli- submitted by the Missouri State Commissioner of cant's future operations of Bank are those that are Finance, in light of the factors set forth in § 3(c) of inherent in the structure of bank holding companies the Act (12 U.S.C. § 1842(c)). generally and permissible under Colorado law. Applicant, the sixth largest banking organization Grandview Bank and Trust Company v. Board of in Missouri, controls 19 banks with total deposits of Governors 550 F.2d 415 (1977). $919 million, representing 4.8 per cent of the total In view of the foregoing discussion and having deposits in commercial banks in the State.1 Acquiconsidered the facts of record and all the comments sition of Bank (deposits of $7.2 million) would of Protestant in light of the statutory factors the increase Applicant's share of commercial bank de- Board must consider under § 3(c) of the Act, it is posits in Missouri by .04 per cent and would have the Board's judgment that consummation of the no appreciable effect upon concentration of banksubject proposal would be in the public interest and ing resources in Missouri. that the application to acquire Bank should be Bank is one of the smallest of 134 commercial approved. banks in the relevant banking market2 and holds On the basis of the record, the application is approximately .13 per cent of the total commercial approved for the reasons summarized above. The bank deposits in the market. Applicant has five transaction shall not be made (a) before the thirtieth banking subsidiaries in the Kansas City market and calendar day following the effective date of this is the third largest banking organization in the Order or (b) later than three months after that date, market, controlling 10.8 per cent of market deand (c) United Bank of Arvada, N.A., Arvada, posits. Upon consummation of the proposed acqui- Colorado, shall be opened for business not later sition, Applicant's share of commercial bank dethan six months after the effective date of this posits in the market would increase to 10.9 per cent Order. Each of the periods described in (b) and (c) and Applicant's rank in the market would not may be extended for good cause by the Board, or change. Inasmuch as Applicant and Bank operate in by the Federal Reserve Bank of Kansas City pur- the same relevant market, the proposed acquisition suant to delegated authority. would eliminate some existing competition and By order of the Board of Governors, effective increase somewhat the concentration of banking December 27, 1977. resources in that market. However, the Board does not view much effects as being particularly serious Voting for this action: Chairman Burns and Governors in light of the competitive banking structure in the Gardner, Wallich, Coldwell, Jackson, and Partee. Absent Kansas City market. Six of the ten largest banking and not voting: Governor Lilly. organizations in Missouri are represented in the market and are among the largest banking organiza- (Signed) GRIFFITH L. GARWOOD, tions in the market. While consummation of the [SEAL] Deputy Secretary of the Board. proposal would reduce the number of independent banking organizations in the Kansas City market, this does not appear to be significant since a large United Missouri Bancshares, Inc., number of independent banks would remain avail- Kansas City, Missouri able as entry vehicles into the market after consummation of the proposal. In light of the above Order Approving Acquisition of Bank and other facts of record, the Board concludes that the proposed acquisition would have only slightly United Missouri Bancshares, Inc., Kansas City, adverse effects on competition and, in light of the Missouri, a bank holding company within the meanconsiderations discussed below, the Board does not ing of the Bank Holding Company Act, has applied view such effects as being so serious as to require for the Board's approval under § 3(a)(3) of the Act denial of this proposal. (12 U.S.C. § 1842(a)(3)) to acquire 100 per cent (less directors' qualifying shares) of the voting shares of The Cass County Bank, Peculiar, Missouri ("Bank"). 1 All banking data are as of December 31, 1976, and are adjusted Notice of the application, affording opportunity to reflect bank holding company applications approved by the for interested persons to submit comments and Board to date. views, has been given in accordance with § 3(b) of 2 The relevant banking market is the Kansas City banking market, which is approximated by the northern half of Cass the Act. The time for filing comments and views has County, all of Clay, Jackson, and Platte Counties in Missouri and expired, and the Board has considered the applica- Johnson and Wyandotte Counties in Kansas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1978 The financial and managerial resources and fu- ("Protestants"), opposing the proposal, in light of ture prospects of Applicant, its subsidiary banks, the factors set forth in § 3(c) of the Act (12 U.S.C. and Bank are regarded as satisfactory and consis- § 1842(c)). tent with approval of the proposal. As a result of Applicant is a recently formed corporation oraffiliation with Applicant, Bank's ability to meet ganized for the purpose of becoming a bank holding increasing residential mortgage loan demand and company through the acquisition of Bank.1 Bank agricultural and commercial loan demand will be holds total deposits of approximately $7 million, improved. Thus, considerations relating to the con- representing 2.5 per cent of total deposits in comvenience and needs of the community to be served mercial banks in the relevant banking market2 and lend weight toward approval of the application and, is the seventh largest of 11 banking organizations in in the Board's judgment, are sufficient to outweigh the market.3 any slightly adverse effects on competition that Since Applicant has no present operations or might result from consummation of the proposal. It subsidiaries, consummation of the proposed transis the Board's judgment that approval of the appli- action would not have any adverse effect on existcation would be in the public interest and that the ing or potential competition, nor would it increase application should be approved. the concentration of banking resources or have an On the basis of the record, the application is adverse effect on other banks in the relevant marapproved for the reasons summarized above. The ket. Accordingly, the Board concludes that comtransaction shall not be made (a) before the thirtieth petitive considerations are consistent with approval calendar day following the effective date of this of the application. Order or (b) later than three months after the The financial and managerial resources of Applieffective date of this Order, unless such period is cant and Bank are regarded as satisfactory, and the extended for good cause by the Board, or by the future prospects for each appear favorable. Appli- Federal Reserve Bank of Kansas City pursuant to cant would incur no debt incident to the subject delegated authority. proposal. Accordingly, the Board concludes that By order of the Board of Governors, effective the banking factors are consistent with approval of December 23, 1977. the application. As noted above, the Board has received com- Voting for this action: Chairman Burns and Governors ments opposing the subject proposal. Protestants Gardner, Wallich, Cold well, Jackson, and Partee. Absent contend generally that consummation of the propoand not voting: Governor Lilly. sal would have adverse competitive effects. Protes- (Signed) GRIFFITH L. GARWOOD, tants argue that because bank holding companies [SEAL] Deputy Secretary of the Board. may not acquire shares of a savings and loan, credit union or any similar financial organization, credit unions should not be allowed to acquire shares of WISCUB, Inc., banks or bank holding companies. In addition, Milwaukee, Wisconsin Protestants argue that the proposal is an attempt by members of the credit union industry to obtain a Order Approving captive commercial bank and thereby avoid having Formation of Bank Holding Company to use other commercial banks. Similarly, Protestants argue that Applicant's acquisition of Bank WISCUB, Inc., Milwaukee, Wisconsin, has would serve the needs of the State's credit union applied for the Board's approval under § 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842 (a)(1)) of formation of a bank holding company through acquisition of 86 per cent (or more) of the 1 Applicant was organized by the Wisconsin Credit Union League ("WCUL"), and members thereof would each be permitvoting shares of Cleveland State Bank, Cleveland, ted to purchase not more than 4.95 per cent of the outstanding Wisconsin ("Bank"). voting stock of Applicant. The application indicates that each Notice of the application, affording opportunity credit union-shareholder of Applicant would sign a voting trust agreement naming WCUL as trustee for the shares of Applicant for interested persons to submit comments and that it holds. Each credit union-shareholder would retain the views, has been given in accordance with § 3(b) of power to direct the Trustee in the exercise of the voting rights of the shares of Applicant that the Trustee would hold on behalf of the Act. The time for filing comments and views has the individual credit union-shareholder. expired, and the Board has considered the applica- 2 The relevant banking market for purposes of competitive tion and all comments received, including those of analysis of this proposal is the Manitowoc-Two Rivers banking market, which is approximated by all except the southwestern Associated Banc-Corp., the State Bank of Howards portion of Manitowoc County. Grove and the Wisconsin Bankers Association 3 All banking data are as of December 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 41 industry and not the convenience and needs of the would continue as a competitor in the relevant community. Protestants also contend that the pro- market and that Applicant's acquisition of Bank posed arrangement among the credit union- may even have a somewhat positive competitive shareholders of Applicant with WCUL as the vot- effect as a result of Bank becoming a more aggresing Trustee would result in a bank holding company sive competitor for services performed by commerbeing created, and Protestants urge the Board to cial banks for credit unions. Similarly, the Board reconsider its earlier determinations that such ar- finds without substantial merit Protestants' contenrangements do not constitute a "company", as that tion that this proposal would result in bank holding term is defined in the Act.4 Finally, Protestants companies being at a disadvantage with respect to have requested that a formal hearing be held in other financial institutions because the Board has connection with the issues that have been raised in determined that bank holding companies may not Protestants' comments. acquire savings and loan associations7 or similar Section 3(b) of the Act requires the Board to hold financial institutions. This argument has only lima formal hearing when the primary supervisor of the ited relevance to the subject proposal and, in addibank to be acquired (in this case, the Wisconsin tion, overlooks the degree of flexibility provided Banking Commissioner) recommends disapproval bank holding companies in § 4(c)(6) of the Act (12 of the application (12 U.S.C. § 1842(b)). Since the U.S.C. § 1843(c)(6)), which permits investments by Wisconsin Banking Commissioner has interposed bank holding companies in the shares of any comno such objection, there is no statutory requirement pany so long as the bank holding company does not that the Board hold a formal hearing in the instant acquire more than 5 per cent of any class of the matter.5 The Board has reviewed the entire record outstanding voting shares of the company.8 of this application, including the views expressed in Finally, the Board has reconsidered its earlier the written submissions of Protestants and Appli- decisions that voting trust arrangements involving cant's responses to those submissions, and con- credit unions such as that proposed in the instant cludes that the record is sufficiently complete to application do not result in the creation of a "comrender a decision on the application and that no pany", as that term is defined in the Act, in light of useful purpose would be served by holding a formal Protestants' comments, and has determined that its hearing. Accordingly, Protestants' request for a earlier decisions should be modified to the extent hearing is denied. described herein in order to carry out the purposes With respect to the competitive issues raised by of the Act.9 Where, as here, the voting trust Trustee Protestants in connection with the proposal, the is a trade association of credit unions, the Board is Board is unable to agree that this acquisition would concerned that the Trustee would have responresult in adverse competitive effects in any relevant sibilities to its credit union members as an associamarket.6 Indeed, it appears more likely that Bank tion and at the same time responsibilities to the beneficiaries of the voting trust. Such dual responsibilities may result in the trade association acting less as a disinterested Trustee and more as a 4 Company is defined, in part, in § 2(b) of the Act as . . any corporation, partnership, business trust, association, or similar company exercising control over Applicant's and organization, or any other trust unless by its terms it must Bank's management. Moreover, the proposal as terminate within twenty-five years. . . ." (12 U.S.C. § 1841(b)). presently structured would result in a group of The Board has previously determined that similar arrangements would not constitute companies in its Orders approving the formation of CUbanc Corp., Columbus, Ohio (62 Federal Reserve BULLETIN 792 (1976)) and CU Bank Shares, Inc., Dallas, Texas (62 Federal Reserve BULLETIN 364 (1976)). 5 See Farmers & Merchants Bank of Las Cruces v. Board of 7 See the Board's Order denying the application of D. H. Governors of the Federal Reserve System, [1977] Fed. Banking L. Baldwin Co. to retain Empire Savings, Building and Loan Associ- Rep. (CCH) 11 97,271 (D.C. Cir-. Nov. 7, 1977) with respect to the ation (63 Federal Reserve BULLETIN 280 (1977)). statutory requirement of a hearing. 8 The credit unions acquiring shares of Applicant are each 6 As the Board has noted on previous occasions (cf. the Board's acquiring less than 5 per cent of the outstanding voting shares of Order approving the acquisition of The First National Bank of Applicant. Moreover, the Board has approved a similar arrange- Mexico, Mexico, Missouri, by Central Bancompany, Jefferson ment among one-bank holding companies in Oklahoma (see the City, Missouri (62 Federal Reserve BULLETIN 843 (1977)), § 3(c) of Board's Order of May 6, 1977, approving the formation of SYB the Act requires the Board to consider whether a proposed Corporation, Oklahoma City, Oklahoma (63 Federal Reserve acquisition would have adverse effects upon competition among BULLETIN 587 (1977)). commercial banking organizations within a relevant market. This 9 In view of the Board's disposition of this case, the Board has analysis relates primarily to the existing or potential number of today directed those bank holding companies previously approved commercial banking organizations competing in the market to by the Board that involved similar arrangements among their provide commercial banking services, which is the relevant prod- credit union-shareholders to bring themselves into conformity uct (see U.S. v. Philadelphia National Bank, 374 U.S. 321 for a with the conditions imposed upon the Applicant and its sharediscussion of the relevant product definition to be used in analyz- holders in the instant case within six months of the date of this ing the competitive effects of bank acquisitions). Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1978 shareholders united through both a voting trust or by the Federal Reserve Bank of Chicago pursuant agreement and through common membership in the to delegated authority. trade association that would serve as the Trustee By order of the Board of Governors, effective for the voting trust, thus necessitating a finding that December 30, 1977. the group constitutes a company.10 Therefore, the Board has determined that approval of this applica- Voting for this action: Chairman Burns and Governors tion, and a decision not to treat the stockholder Gardner, Wallich, Cold well, Jackson, and Partee. Absent group, the voting trust, and/or the voting Trustee as and not voting: Governor Lilly. a bank holding company, should be conditioned (Signed) GRIFFITH L. GARWOOD, upon the selection of a bona fide independent [SEAL] Deputy Secretary of the Board. trustee for the voting trust and upon WCUL's refraining from any role by any means in the ORDERS UNDER SECTION 4 management of Bank or Applicant.11 OF BANK HOLDING COMPANY ACT Applicant has indicated that upon consummation Central Bancshares of the South, Inc., of its proposal it would make changes in the cus- Birmingham, Alabama tomer services provided by Bank. Bank would provide service-free checking for senior citizens, Order Approving Acquisition higher interest rates for certain categories of time of The Trust Company of California deposits, additional loan programs, overdraft Central Bancshares of the South, Inc., Birmingchecking, free bank by mail services, and free ham, Alabama, a bank holding company within the printed checks. Thus, the Board is unable to agree meaning of the Bank Holding Company Act, has with Protestants' contention that Bank would no applied for the Board's approval, under § 4(c)(8) of longer serve the convenience and needs of the local the Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of community if Applicant's proposal were approved. the Board's Regulation Y (12 CFR § 225.4(b)(2)), Accordingly, considerations relating to the conto acquire The Trust Company of California, Newvenience and needs of the communities to be served port Beach, California ("Trust Company"), a comlend some weight toward approval of the applicapany that engages in the activities that may be tion. carried on by a trust company (including activities On the basis of the foregoing and the facts of of a fiduciary, agency, or custodian nature), in the record, it is the Board's judgment that the proposed manner authorized by State law. Such activities acquisition would be in the public interest and that have been determined by the Board to be closely the application should be approved. Accordingly, related to banking (12 CFR § 225.4(a)(4)). the application is approved for the reasons sum- Notice of the application, affording opportunity marized above and subject to the conditions for interested persons to submit comments and specified herein. The transaction shall not be made views on the public interest factors, has been duly (a) before the thirtieth calendar day following the published (42 Federal Register 58202). The time for effective date of this Order or (b) later than three filing comments and views has expired, and the months after the effective date of this Order, unless Board has considered the application and all comsuch period is extended for good cause by the Board, ments received in the light of the public interest factors set forth in § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). Applicant, the fourth largest commercial banking 10 The Board noted in its SYB Order, infra, that a . . group of organization in Alabama, controls ten banks with shareholders (of a bank or a bank holding company) may itself, aggregate deposits of approximately $1.0 billion, through agreement or understanding among the members or representing 10 per cent of the total deposits in through its structure alone, constitute a "company" within the meaning of § 2(b) of the Act (12 U.S.C. § 184(b))". Where the commercial banks in the State.1 Applicant does not companies in a consortium owning or controlling shares of a bank currently engage in any nonbanking activities, or bank holding company engage in other banking or nonbanking either directly or through subsidiaries. activities as part of a group that consists of substantially the same companies as are shareholders of the bank or bank holding Trust Company is presently an inactive organizacompany, that influence is even stronger. tion. In November 1975, it opened for business as a 11 Because WCUL is an organization that falls within the trust company authorized under the State of definition of a company, the rebuttable presumptions of control contained in the Board's Regulation Y would apply if WISCUB were to enter into any agreement or understanding whereby it exercised significant influence with respect to the general management or overall operations of Bank or Applicant (12 CFR § 225.2(b)(3)). 1 All banking data are as of December 31, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 43 California. However, by May 1976, Trust Company voting: Chairman Burns and Governors Wallich and had ceased to engage in any trust activities and has Jackson. not engaged in any such activities since that time. (Signed) GRIFFITH L. GARWOOD, Through the acquisition of Trust Company, Appli- [SEAL] Deputy Secretary of the Board. cant proposes to engage in trust activities in the greater Los Angeles area.2 In particular, Applicant ORDERS UNDER SECTION 4 proposes to provide trust services for employee benefit plans holding $100 thousand to $2 million in First Amtenn Corporation, assets. Although three of Applicant's subsidiary Nashville, Tennessee banks engage in trust activities in Alabama, it does Order Approving not appear that they derive any business from the Acquisition of Lee Robinson & Steine, Inc. Los Angeles area or elsewhere in California. Since } Trust Company is inactive, the subject proposal is First Amtenn Corporation, Nashville, Tennesviewed as essentially a proposal to engage in trust see, a bank holding company within the meaning of activities de novo. Thus, it appears that consummathe Bank Holding Company Act ("Act"), has tion of the proposal would not have any significant applied for the Board's approval, under § 4(c)(8) of adverse effects on competition in any relevant area. the Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of It is anticipated that Applicant's acquisition of the Board's Regulation Y (12 CFR § 225.4(b)(2)), Trust Company would result in benefits to the to acquire all of the shares of Lee, Robinson & public by providing an additional source of trust Steine, Inc., Nashville, Tennessee ("LR&S"), a services in the Los Angeles area. Furthermore, company that engages in the activities of acting as there is no evidence in the record to indicate that an investment adviser registered under the Investconsummation of the proposed transaction would ment Company Act of 1940. Such activities have result in any undue concentration of resources, been determined by the Board to be closely related unfair competition, conflicts of interests, unsound to banking (12 CFR § 225.4(a)(5)). banking practices, or other effects that would be Notice of the application, affording opportunity adverse to the public interest. for interested persons to submit comments and Based upon the foregoing and other con- views on the public interest factors, has been duly siderations reflected in the record, the Board has published (42 Federal Register 52486). The time for determined that the balance of the public interest filing comments and views has expired, and the factors the Board is required to consider under Board has considered that application and all com- § 4(c)(8) is favorable. Accordingly, the application is ments received, including those of J. R. Wauford & hereby approved. This determination is subject to Company Employees Profit Sharing Plan, the conditions set forth in § 225.4(c) of Regulation Y Nashville, Tennessee ("Protestant"), in light of the and to the Board's authority to require such modifi- public interest factors set forth in section 4(c)(8) of cation or termination of the activities of a holding the Act. company or any of its subsidiaries as the Board Applicant, the third largest banking organization finds necessary to assure compliance with the pro- in Tennessee, controls eight banks with aggregate visions and purposes of the Act and the Board's deposits of approximately $1.3 billion, representing regulations and orders issued thereunder or to 9.2 per cent of total deposits in commercial banks in prevent evasion thereof. the State.1 Applicant also controls several nonbank- The transaction shall be made not later than three ing companies whose activities include consumer months after the effective date of this Order, unless financing, accounts receivable and inventory such period is extended for good cause by the financing, and equipment leasing. Board or by the Federal Reserve Bank of Atlanta. LS&R is an investment adviser, registered with By order of the Board of Governors, effective the Securities and Exchange Commission under the December 16, 1977. Investment Company Act of 1940, providing investment adviser and investment management ser- Voting for this action: Vice Chairman Gardner and vices on a discretionary basis. Its principal ac- Governors Cold well, Partee, and Lilly. Absent and not tivities involve the management of investment portfolios of securities for individuals, charitable 2 Applicant proposes to move Trust Company's office from Newport Beach to Los Angeles, both in California. 1 All banking data are as of June 30, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1978 organizations, profit-sharing plans, and pension the relevant market for investment adviser acplans. LR&S conducts such activities from its sole tivities is probably more regional in scope at least office in Nashville, Tennessee. As of June 30, 1977, for certain types of services and accounts. Thus, LS&R had a total of approximately $101 million in although some competition would be eliminated by assets under management in 111 accounts; and Applicant's acquisition of LR&S, the Board is of during 1976 it received net income of $113,000 for the view that the number and size of the organizaits services. LS&R derives the vast majority of its tions competing in the area suggest that approval of business from Davidson County, Tennessee, the the proposal would not have significant adverse county in which the city of Nashville is located. effects on competition. However, it also derives business from clients It is anticipated that affiliation with Applicant located in other parts of Tennessee, as well as would enable LR&S to improve the quality and Louisiana, Colorado, Florida, Georgia and New depth of its investment adviser services, which York. would result in better services to the public. In Applicant's lead bank, First American National addition, the proposal should result in increased Bank of Nashville, Nashville, Tennessee competition by enhancing LR&S's capabilities ("Bank"), also provides investment adviser and vis-a-vis the larger organizations with which it investment management services through its trust competes. On the basis of these and other facts of department. Although Bank's trust department and record, the Board concludes that the benefits to the LR&S are both engaged in investment management public that would result from consummation are activities and both are located in Nashville, it does sufficient to outweigh any slightly adverse effects not appear that Applicant's acquisition of LR&S on competition that may result from Applicant's would result in the elimination of any significant acquisition of LR&S. Furthermore, there is no competition. First, the record indicates that Bank's evidence in the record to indicate that consummatrust department serves a substantially different tion of the proposed transaction would result in any clientele than LR&S. Under State law, an invest- undue concentration of resources, unfair competiment adviser cannot serve in a fiduciary capacity tion, conflicts of interests, unsound banking pracwith respect to assets under its management. tices, or other effects that would be adverse to the Moreover, LR&S's activities relate solely to the public interest.2 management of investment portfolios of securities. Based upon the foregoing and other con- Bank, on the other hand, offers a wide range of siderations reflected in the record, the Board has services including serving as a fiduciary, executor determined that the balance of the public interest and trustee, assisting in estate planning, and manag- factors the Board is required to consider under ing real estate and other assets. With respect to § 4(c)(8) is favorable. Accordingly, the application is services comparable to those offered by LR&S, hereby approved. This determination is subject to Bank provides such services for only about $19.4 the conditions set forth in § 225.4(c) of Regulation Y million of the total $264.4 million in assets held in and to the Board's authority to require such modifitrust. cation or termination of the activities of a holding Second, the relevant market for purposes of company or any of its subsidiaries as the Board analyzing the competitive effects of the subject finds necessary to assure compliance with the proproposal is not limited solely to the Nashville area. visions and purposes of the Act and the Board's A large number of investment adviser firms, bank regulations and orders issued thereunder, or to trust departments, insurance companies and in- prevent evasion thereof. vestment management departments of investment The transaction shall be made not later than three banking firms compete for the opportunity to pro- months after the effective date of this Order, unless vide investment management services throughout such period is extended for good cause by the the country. Furthermore, in addition to the 21 Board or by the Federal Reserve Bank of Atlanta. other organizations providing investment management services that have offices in Nashville, the record indicates that a significant number of organi- 2 In its analysis of the application, the Board has also conzations located in the South and other parts of the sidered the comments of Protestant, a shareholder of Applicant. Protestant generally questions the competence of Applicant and country actively solicit accounts in Tennessee and the fairness of the entire proposal to Applicant's shareholders. No throughout the South. In fact, LR&S, itself, serves material has been submitted in support of the allegations made by customers located in Louisiana, Colorado, Florida, Protestant. Moreover, the Board finds that the facts of record indicate that denial of the application based on such allegations Georgia and New York. These factors indicate that would not be appropriate. 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Law Department 45 By order of the Board of Governors, effective Applicant proposes to form two de novo sub- December 15, 1977. sidiaries for which it would provide initial funding through equity and debt investments. CLC would Voting for this action: Vice Chairman Gardner and engage in the activity of restoring abandoned and Governors Jackson, Partee, and Lilly. Voting against this substandard residential and commercial properties. action: Governor Coldwell. Absent and not voting: Chairman Burns and Governor Wallich. CLC would purchase, rehabilitate or reconstruct, and resell such properties; participate with inde- (Signed) GRIFFITH L. GARWOOD, pendent developers by using subordinated debt or [SEAL] Deputy Secretary of the Board. nonvoting equity investments to enable the developers to qualify for bank credit to purchase and rehabilitate substandard property; or, participate as Illinois Neighborhood Development Corporation, an investor in joint ventures with existing commu- Chicago, Illinois nity redevelopment corporations such as Rescorp (the Chicago Area Renewal Effort Service Corpora- Order Approving tion). Applicant has indicated that any profits re- Acquisition of City Lands Corp. sulting from such projects would be reinvested in and The Neighborhood Institute similar programs to continue rehabilitating properties in the community. The rehabilitated or Illinois Neighborhood Development Corporarestored housing would be for low to moderate tion, Chicago, Illinois, a bank holding company income families and the rehabilitated or restored within the meaning of the Bank Holding Company commercial properties would be small stores lo- Act, has applied for the Board's approval, under cated in deteriorating neighborhoods. § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and TNI would initiate a variety of programs de- § 225.4(b)(2) of the Board's Regulation Y (12 CFR signed to promote the community welfare. Appli- §225.4(b)(2)), to acquire City Lands Corp., Chicago, cant has indicated that such programs would in- Illinois ("CLC"), and The Neighborhood Institute, clude: the formation of an educational development Chicago, Illinois ("TNI"), and thereby engage de center to increase local educational opportunities novo in making equity and debt investments in and educational counselling and training (including corporations or projects designed primarily to proadmissions and financial aid information for area mote community welfare. Such activities have been college-bound students); the provision of employdetermined by the Board to be closely related to ment and career counselling services (including banking (12 CFR § 225.4(a)(7)). technical aid to community organizations in the Notice of the application, affording opportunity development of Comprehensive Employment and for interested persons to submit comments and Training Act grant proposals to place unemployed views on the public interest factors, has been duly individuals in public service jobs); the establishpublished (42 Federal Register 55851). The time for ment of a cultural center to provide instruction in filing comments and views has expired, and the and exposure to the arts; and the provision of Board has considered the application and all comresearch and development services to aid the fundments received in the light of the public interest ing and operation of such projects, to develop factors set forth in § 4(c)(8) of the Act (12 U.S.C. similar future projects, and to aid other § 1843(c)(8)). community-oriented organizations. Applicant has Applicant became a bank holding company in indicated that each program initiated by TNI would 1973 when it acquired The South Shore National be expected to be financially self-sufficient and Bank of Chicago ("Bank"), the only commercial would be required to return the start-up funds bank in the South Shore community of Chicago. expended in its development. Applicant has committed Bank to a program of By order of May 30, 1972,1 the Board issued an community renewal and a reversal of deposit outinterpretation of § 225.4(a)(7) of Regulation Y (12 flow by involvement in community affairs. Since its CFR § 225.4(a)(7)). That interpretation (12 CFR initiation of that program, Bank has reversed its § 225.127) stated in subparagraph (d) that the Board previous declining deposit and earnings trend, and intended to include as a permissible activity under Applicant has established itself as a business-based § 225.4(a)(7) investment in: "(1) projects for the private sector organization committed to urban redevelopment. Applicant's management has extensive experience in community development and has secured deposits and support for Bank from religious, charitable and corporate organizations. 1 58 Federal Reserve BULLETIN 572. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1978 construction or rehabilitation of housing for the Governors Cold well, Jackson, Partee, and Lilly. Absent benefit of persons of low- or moderate-income, (2) and not voting: Chairman Burns and Governor Wallich. projects for the construction or rehabilitation of (Signed) GRIFFITH L. GARWOOD, ancillary local commercial facilities necessary to [SEAL] Deputy Secretary of the Board. provide goods or services principally to persons residing in low- or moderate-income housing and (3) projects designed explicitly to create improved job opportunities for low- or moderate-income groups (for example, minority equity investments, on a temporary basis, in small or medium-sized locallycontrolled businesses in low-income urban or other Orbanco, Inc., economically depressed areas)."2 The Board has Portland, Oregon reviewed Applicant's proposals and the complete Order Approving Retention record of the applications and concludes that the of Northwest Acceptance Corporation activities in which the proposed de novo suband Northwest Industrial Loan Company sidiaries would engage are designed primarily to promote the community welfare and therefore Ap- Orbanco, Inc., Portland, Oregon, a bank holding plicant's equity and debt investments in these sub- company within the meaning of the Bank Holding sidiaries are regarded as within the scope of § 225.4 Company Act, has applied for the Board's ap- (a)(7) of the Board's Regulation Y. Applicant proval, under § 4(c)(8) of the Act and § 225.4(b)(2) anticipates that the programs it proposes to imple- of the Board's Regulation Y, to retain all of the ment through CLC and TNI will also encourage outstanding voting shares of Northwest Acceptance other private developers to invest in the local area. Corporation, Portland, Oregon ("NAC"), a direct Furthermore, there is no evidence in the record subsidiary of Applicant, and all of the outstanding indicating that Applicant's acquisition of these de voting shares of Northwest Industrial Loan Comnovo subsidiaries and commencement of these ac- pany, Portland, Oregon ("NILC"), a direct subtivities would result in any undue concentration of sidiary of NAC and, indirectly of Applicant. NAC resources, unfair competition, conflicts of interests, engages in the activities of receivables financing, or unsound banking practices. equipment leasing, and acting as agent for the sale Based upon the foregoing and other con- of credit-related insurance. NILC engages in the siderations reflected in the record, the Board has making of loans for business purposes.1 Such acdetermined that the balance of the public interest tivities have been determined by the Board to be factors the Board is required to consider under closely related to banking (12 CFR § 225.4(a)(1), (2) § 4(c)(8) of the Act is favorable. Accordingly, the 6(a), and 9(ii)). application is hereby approved. This determination Notice of the application, affording opportunity is subject to the conditions set forth in § 225.4(c) of for interested persons to submit comments and Regulation Y and the Board's authority to require views on the public interest factors, has been duly such modification or termination of the activities of published (42 Fed. Reg. 54875 (1977)). The time for a holding company or any of its subsidiaries as the filing comments and views has expired, and the Board finds necessary to assure compliance with Board has considered all comments received in the provisions and purposes of the Act and the light of the public interest factors set forth in Board's regulations and orders issued thereunder, section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). or to prevent evasion thereof. Applicant became a bank holding company as a The transaction shall be made not later than three result of the 1970 Amendments to the Act by virtue months after the effective date of this Order, unless of its control of The Oregon Bank, Portland, Oresuch period is extended for good cause by the gon ("Bank"). Applicant acquired all of the out- Board or by the Federal Reserve Bank of Chicago. standing shares of NAC and, indirectly, all of the By order of the Board of Governors, effective outstanding shares of NILC in April, 1969. Pur- December 19, 1977. suant to the provisions of § 4 of the Act, Applicant has until December 31, 1980, to divest its shares of Voting for this action: Vice Chairman Gardner and 1 NILC does not publicly raise lendable funds through the receipt of deposits or the issuance of debt instruments to persons 2 12 CFR § 225.127(d). other than Orbanco or its subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 47 NAC and NILC or, in the alternative, to apply to outstanding at NAC at that time ($41 million), the the Board for approval to retain thern.2 acquisition of NAC and NILC appears to have had Applicant is the third largest banking organiza- only a slightly adverse effect on competition in the tion in Oregon by virtue of its control of Bank. relevant market. Accordingly, based on these and Bank has deposits of approximately $391.2 million, other facts of record, the Board concludes that representing approximately 5.7 per cent of the total Applicant's acquisition of NAC and NILC did not deposits in commercial banks in the State.3 In have any substantial adverse effect on either existaddition to engaging, through NAC and NILC, in ing or potential competition in any relevant area. receivables financing, equipment leasing, acting as Since the original acquisition, the structure of agent in the sale of credit-related insurance and Oregon financial markets has undergone little industrial lending, Applicant, through other non- change. The two largest banks hold more than bank subsidiaries, also engages in making and ser- seventy per cent of deposits held by Oregon banks. vicing real estate loans, leasing real estate to Appli- NAC and Bank, but for their affiliation, would be cant's affiliates, purchasing real estate loans from direct competitors in two Oregon counties, where Bank, and providing computer services for the Bank controls respectively only 2.9 and 5.5 per cent holding company system. of deposits. Although NAC's business has doubled NAC conducts its activities from two offices in from 1969 to 1976, in these two counties, which Portland, Oregon, an office in Eugene, Oregon, an contain the cities of Eugene and Portland, the total office in Mercer Island, Washington, and seven volume of business is still considered too small to offices located in seven cities outside the north- be regarded as reflecting a significant increase in western U.S. The majority of NAC's business NAC's competitive position. In view of the relaoriginates in Oregon and Washington. NILC main- tively small market shares of Bank, NAC, and tains its only operations office in Eugene, Oregon, NILC, the proposal by Applicant to retain NAC and serves as an industrial loan extension of NAC. and NILC would appear to have only a minimal As of July 31, 1977, the consolidated assets of NAC impact on competition in any relevant area. and NILC were $152.8 million. NILC held loans Since its acquisition by Applicant in 1969, NAC amounting to approximately $500 thousand as of and NILC have approximately doubled their volyear-end 1976. ume of business. NAC's continued affiliation with The Board regards the standards under § 4(c)(8) Applicant is likely to result in further growth of of the Act for retention of shares to be the same as NAC and, indirectly, NILC, accompanied by inthe standards for a proposed acquisition. In 1969, creased efficiencies of operation and increased the year of the acquisition, NAC (and NILC) con-' competition in the areas served by NAC. On the ducted approximately two-thirds of their business basis of these and other facts of record, the Board in Oregon where there did exist at the time some concludes that the benefits to the public resulting direct competition between NAC and Bank in the from Applicant's retention of NAC and NILC outmaking of commercial loans. However, the geo- weigh any adverse effects that have resulted from graphic market in which such competitive effects the affiliation. are to be judged is at least regional in scope and is Based upon the foregoing and other conapproximated by the northwestern region of the siderations reflected in the record, the Board has country. The amounts of business generated in the determined that the balance of the public interest regional market by NAC, NILC, and Bank were factors the Board is required to consider under relatively small. In view of the relative domination § 4(c)(8) is favorable, and the application should be of Oregon financial markets by the two largest approved. Accordingly, the application is hereby Portland banks, whose deposits totalled $3.04 bil- approved. This determination is subject to the lion as of December 31, 1969, the relatively small conditions set forth in § 225.4(c) of Regulation Y amount of deposits held by Bank as of that date ($99 and to the Board's authority to require such modifimillion) and the even smaller amount of loans cation or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the pro- 2 Section 4 of the Act provides inter alia, that nonbanking visions and purposes of the Act and the Board's activities acquired between June 30, 1968 and December 31, 1970, regulations and orders issued thereunder, or to by a company that becomes a bank holding company as a result of the 1970 Amendments may not be retained beyond December 31, prevent evasion thereof. 1980, without Board approval. By order of the Board of Governors, effective 3 Unless otherwise indicated, banking data are as of December 31, 1976. December 23, 1977. 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48 Federal Reserve Bulletin • January 1978 Voting for this action: Chairman Burns and Governors bank holding companies through the indirect acqui- Gardner, Wallich, Coldwell, Jackson, and Partee. Absent sition of Bank (38 Federal Register 33538). Schrodand not voting: Governor Lilly. ers acquired the business and assets of Naess on (Signed) GRIFFITH L. GARWOOD, January 31, 1969. Pursuant to the provisions of § 4 [SEAL] Deputy Secretary of the Board. of the Act, the Applicants have until December 31, 1980, to divest the business and assets of Naess, or, Schroders Limited, in the alternative, to apply to the Board for ap- London, England proval to retain them.1 Limited is a foreign bank holding company hav- Order Approving ing as its principal subsidiary J. Henry Schroder Retention of Schroder Naess & Thomas Wagg & Co. Limited, London, England, a mer- Division of Schroders Incorporated and chant bank that is the thirty-second largest bank in Acquisition of Robert C. Gilkison, Inc. the United Kingdom. International and Holdings Schroders Limited ("Limited"), and its wholly- are holding companies for Limited's interest loowned direct and indirect subsidiaries, Schroder cated outside the United Kingdom, including International Limited ("International") and Schroders and its subsidiaries. Schroders, in turn, Schroder International Holdings Limited ("Hold- holds all of Limited's United States business interings"), respectively, all of London, England, as ests, including J. Henry Schroder Banking Corpowell as its wholly-owned indirect subsidiary, ration ("Schrobank"), an investment company Schroders Incorporated, New York, New York chartered under Article XII of the New York Bank- ("Schroders"), each of which is a bank holding ing Law.2 Schroders has consolidated assets of company within the meaning of the Bank Holding $596.7 million, of which Schrobank accounts for Company Act, have applied for the Board's ap- 55.2 per cent.3 Bank, a wholly-owned subsidiary of proval under § 4(c)(8) of the Act (12 U.S.C. Schrobank, has deposits of $120 million.4 In addi- § 1843(c)(8)) and § 225.4(b)(2) of the Board's Regula- tion to engaging in investment advisory activities tion Y (12 CFR § 225.4(b)(2)), to retain the business through Naess, Schroders engages through suband assets of Schroder Naess & Thomas Division of sidiaries in corporate merger and acquisition ser- Schroders (formerly Naess & Thomas, a partner- vices, real estate development, underwriting and ship), New York, New York ("Naess"), and to issuance of certain debt obligations, as well as acquire the business and certain assets of Robert C. holding various other investments.5 Gilkison, Inc., Washington, D.C. ("Gilkison"), Naess conducts its investment advisory business both of which are engaged in the activities of acting through its principal office in New York, and ofas investment counselor and registered investment fices located in Bethesda, Maryland (suburban adviser under the Investment Advisers Act of 1940. Washington, D.C.), Baltimore and Atlanta. It de- Such activities have been determined by the Board rives most of its business from institutional clients to be closely related to banking (12 CFR § 225.4(a)(5)). Notice of the applications, affording opportunity 1 Section 4 of the Act provides inter alia, that nonbanking for interested persons to submit comments and activities acquired between June 30, 1968 and December 31, 1970, by a company which becomes a bank holding company as a result views on the public interest factors, has been given of the 1970 Amendments may not be retained beyond December in accordance with § 4 of the Act (42 Federal 31, 1980, without Board approval. Register 52487). The time for filing comments and 2 The Board has determined that New York Investment Companies organized under Title XII of the New York State Banking views has expired, and the Board has considered Law are not banks within the meaning of the Act. (See Board's the applications and all comments received in the Order of May 10, 1977, approving application of European- American Bancorp, to become a bank holding company and to light of the public interest factors set forth in acquire European-American Banking Corporation (63 Federal § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). Reserve BULLETIN 595 (1977)). Limited and Schroders are one-bank holding 3 Unless otherwise noted, all banking and financial data are as of December 31, 1976. companies, and each became a bank holding com- 4 Bank has filed application with the Federal Deposit Insurance pany as a result of the 1970 Amendments to the Act Corporation for approval to merge Schrobank pursuant to Section by virtue of indirect control of Schroder Trust 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)). 5 With the exception of one de novo subsidiary established Company, New York, New York ("Bank"). Inter- under § 4(c)(8) of the Act, the Applicants claim the grandfather national and Holdings became bank holding com- proviso of § 4(a)(2) of the Act as authority to engage in many of its nonbanking activities. The Board is presently considering the panies pursuant to the Board's Order of November extent to which the Applicants may retain these activities pursuant 29, 1973 approving their applications to become to permanent grandfather privileges of § 4(a)(2) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 49 located throughout the United States. On Decem- no evidence in the record indicating that consumber 31, 1976, Naess had over $1 billion in assets mation of the proposal has resulted in any undue under management for over 600 clients and during concentration of resources, unfair competition, 1976 it received total fee income of $3.3 million. conflicts of interests, unsound banking practices or The Board regards the standards under § 4(c)(8) other adverse effects on the public interest. of the Act for retention of shares to be the same as By separate applications, Limited, Holdings, Inthe standards for a proposed acquisition. In 1968, ternational and Schroders have also applied to the last full year of operation prior to acquisition, acquire the business and certain assets of Gilkison, Naess received total fee income of $1.8 million. The a registered adviser providing investment advisory record indicates that there are a large number of services, primarily to small individual investors. competing firms and bank trust departments provid- Gilkison conducts its investment advisory activities ing investment advisory services, and that in 1968 from its principal office in Washington, D.C. and Naess' business accounted for only a small amount maintains a conference room in suburban Virginia. of assets under management in the United States. On December 31, 1976, Gilkison had assets under Furthermore, while Bank provided investment ad- management of $55 million for 138 accounts, and visory services in 1968, the nature and scope of during 1976 it received a total fee income of such services were limited by State law and by the $136,000 that was derived primarily from the fact that Bank was not registered under the Invest- Baltimore-Washington area. As noted previously, ment Advisors Act of 1940. In light of the large Naess also maintains offices in Baltimore and suburnumber of competing firms provided investment ban Washington, and plans to close its Washington advisory services, particularly in the New York office upon consummation of the proposed transarea, and the fact that Bank was not a registered action.6 The record indicates that during 1976 adviser, the Board concludes that Applicant's ac- Naess received fee income of $160,000 from the quisition of Naess did not have significantly ad- Baltimore-Washington area, representing approxiverse effects on existing competition in any rele- mately 4 per cent of Naess' total fee income. vant area. However, the record indicates that a large number As a result of its acquisition by Applicant in 1969, of national and local firms, as well as bank trust Naess gained access to information resources departments, provide investment advisory services available to Schroders through its international in the Baltimore-Washington area. Accordingly, affiliations, which has been utilized by Naess in the Board concludes that acquisition of Gilkison providing advisory services to clients. Further- by Schroders would eliminate some existing compemore, upon acquisition of Naess, Schroders as- tition between Gilkison and Naess. However, in sumed responsibility for Naess' administrative light of the large number of competitors providing functions, such as accounting, legal and personnel investment advisory services in the Washingtonservices, enabling Naess to function more eco- Baltimore area, and the small amount of competinomically and efficiently in furnishing services to tion between the two firms, the Board does not its clients. Finally, with the financial support of view these effects on competition as significant. Schroders in 1973, Naess opened a new office in the Acquisition by Schroders of Gilkison would en- Atlanta market, thereby increasing the number of able Gilkison to expand the range of services availcompetitors providing advisory services in that able to its customers. In addition, the proposed market. It is likely that as a result of the continued affiliation would provide Gilkison and its clients affiliation with Schroders, Naess will have the with access to Schroders' extensive research flexibility to remain a strong competitor in the facilities, whereas Gilkison presently relies on outproduct line and geographical areas in which it side sources for information. Finally, affiliation of competes. the two firms would make available to Schroders' On the basis of these and other facts of record, institutional clients certain expertise in the area of the Board concludes that the benefits to the public tax-exempt securities possessed by Gilkison's prinresulting from Schroders' acquisition of Naess cipal. On the basis of these and other facts of outweigh any adverse effects on competition that record, the Board concludes that the benefits to the resulted from the affiliation. Moreover, it is the public that would result from Schroders' acquisi- Board's view that approval of Schroders' retention of Naess can reasonably be expected to continue to 6 Bank, which also provides investment advisory services, produce benefits to the public that would outweigh operates only in New York and does not compete in the Baltimore any possible adverse effects. Furthermore, there is or Washington markets. 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50 Federal Reserve Bulletin • January 1978 tion of Gilkison are sufficient to outweigh any Schedule A hereto to whom Marine Bank sold adverse effects on competition that may result from shares of American Hampton Bank, Milwaukee, the acquisition. Furthermore, there is no evidence Wisconsin ("American"), notwithstanding the inin the record to indicate that consummation of the debtedness of each such individual to Marine Bank proposed transaction would result in undue concen- incurred in connection with transactions unrelated tration of resources, unfair competition, conflicts of to the sale of shares of American. Marine Bank's interests, unsound banking practices, or other ef- parent, The Marine Corporation, Milwaukee, Wisfects that would be adverse to the public interest. consin ("Marine"), is a bank holding company Based upon the foregoing and other con- within the meaning of section 2(a) of the Act (12 siderations reflected in the record, the Board has U.S.C. § 1841(a)) by virtue of its ownership of over determined with regard to both applications before 25 per cent of the outstanding voting shares of it that in each case the balance of public interest Marine Bank, and pursuant to section 2(g)(1) of the factors the Board is required to consider under the Act (18 U.S.C. 1841(g)(1)) shares controlled by provisions of § 4(c)(8) of the Act is favorable, and Marine Bank are deemed to be indirectly controlled that the applications should be approved. Accord- by Marine. ingly, the applications are approved for the reasons Under the provisions of section 2(g)(3) of the Act summarized above. The acquisition of Gilkison (12 U.S.C. § 1841(g)(3)), shares transferred after shall be accomplished no later than three months January 1, 1966, by any bank holding company to a after the effective date of this Order unless such transferee that is indebted to the transferor or has period is extended for good cause by the Board. one or more officers, directors, trustees, or bene- The approval of these applications is subject to the ficiaries in common with or subject to control by conditions set forth in § 225.4(c) of Regulation Y the transferor, are deemed to be indirectly owned and to the Board's authority to require reports by, or controlled by the transferor unless the Board, and make examinations of, holding companies and after opportunity for hearing, determines that the their subsidiaries and to require such modification transferor is not in fact capable of controlling the or termination of the activities of a bank holding transferee. company or any of its subsidiaries as the Board Notice of an opportunity for hearing with respect finds necessary to assure compliance with the pro- to Marine Bank's request for a determination under visions and purposes of the Act and the Board's section 2(g)(3) was published in the Federal Regisregulations and orders issued thereunder, or to ter on August 17, 1977 (42 Fed. Reg. 41476), and the prevent evasion thereof. time provided for requesting a hearing has expired. By order of the Board of Governors, effective No such request has been received by the Board, December 12, 1977. nor has any evidence been received to show that Marine or Marine Bank is in fact capable of control- Voting for this action: Chairman Burns and Governors ling or exerting a controlling influence, directly or Gardner, Cold well, Jackson, Partee, and Lilly. Absent indirectly, over the individuals listed on Schedule A and not voting: Governor Wallich. or over American. (Signed) GRIFFITH L. GARWOOD, It is hereby determined that Marine and Marine [SEAL] Deputy Secretary of the Board. Bank are not in fact capable of controlling any of the individuals listed on Schedule A, the shares of ORDERS UNDER SECTION 2 American held by them or American. This determi- OF BANK HOLDING COMPANY ACT nation is based upon the evidence of record in this The Marine Corporation, matter, including the following facts. Milwaukee, Wisconsin On December 11, 1975, Marine Bank, jointly and severally with Aid Association for Lutherans ("Lu- [Docket No. 2(g)(3)-020] therans"), acquired 95 per cent of the outstanding voting shares of American in satisfaction of a debt Marine National Exchange Bank of Milwaukee, previously contracted. Pursuant to § 3(a)(A)(ii) of Milwaukee, Wisconsin ("Marine Bank") has re- the Act (12 U.S.C. 1842(a)(A)(ii), Marine and Luquested a determination pursuant to the provisions therans were not required to obtain the prior apof section 2(g)(3) of the Bank Holding Company Act proval of the Board to acquire the shares but would of 1956, as amended (the "Act") (12 U.S.C. have had to obtain such approval to retain the § 1841(g)(3)) that Marine Bank is not in fact capable shares of American if such shares had not been of controlling each of the individuals listed on disposed of within two years. Accordingly, on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 51 September 14, 1977, Marine Bank and Lutherans Tracy Bancorp, sold the shares of American to twelve individuals in Salt Lake City, Utah a transaction that appears to have been the result of arms-length negotiations. Since eleven of the [Docket No. 2(g)(3)-033] twelve individuals were indebted to Marine Bank, Tracy Bancorp, Salt Lake City, Utah ("Tracy") pursuant to the presumption contained in section a bank holding company within the meaning of 2(g)(3) of the Act, Marine Bank is deemed to section 2(a) of the Bank Holding Company Act of control the shares of American held by the indi- 1956, as amended (12 U.S.C. § 1841(a)), ("Act"), vidual purchasers who are indebted to Marine which has transferred all of its stockholdings in Bank. None of the individual purchasers of the Tracy-Osborne-Dickson & Associates, Inc., Salt shares is a director, officer or employee of Marine Lake City, Utah ("TODA"), to Affiliated Insurance Bank or any of its subsidiaries or affiliates. Neither Agency, formerly "Dickson-Ackerlind & As- Marine Bank nor any of its subsidiaries and afsociates", Salt Lake City, Utah ("DAA"), has filiates has any director or officer in common with requested a determination by the Board, pursuant American or its subsidiaries and affiliates. Furto section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) thermore, there are no existing or contemplated that Tracy is not in fact capable of controlling DAA agreements or understandings between Marine notwithstanding the fact that DAA is indebted to Bank and American regarding the conduct of Tracy Collins Bank & Trust Company, Salt Lake American's business or its management and City, Utah ("Bank"), a subsidiary of Tracy, which policies. While eleven of the twelve individual indebtedness resulted from DAA's purchase of the purchasers are indebted to Marine Bank in connecshares of TODA and is secured by 100 per cent of tion with transactions incurred in the ordinary the shares of TODA. Tracy has also requested a course of business, the personal financial resources determination by the Board pursuant to section of each are substantial and would appear to support 2(g)(3) of the Act that it is not in fact capable of the conclusion that Marine Bank is not capable of controlling Tracy Realty Company, Salt Lake City, controlling any of those individuals so indebted or Utah ("Realty"), or the individuals to whom it American. Finally, the board of directors of Marine transferred the shares of Realty, notwithstanding Bank has submitted a resolution disclaiming its the fact that three officers and directors of Tracy capability of control over the individual purchasers are transferees of more than 5 per cent of the shares and American, and affidavits were submitted by of Realty. each individual stating that Marine Bank is not in Under the provisions of section 2(g)(3) of the Act, fact capable of controlling him or American. shares transferred after January 1, 1966 by any Accordingly, it is ordered, that the request of bank holding company to a transferee that is in- Marine Bank for a determination pursuant to secdebted to the transferor or has one or more officers, tion 2(g)(3) be and hereby is granted. This determidirectors, trustees or beneficiaries in common with nation is based upon the representations made to or subject to control by the transferor, are deemed the Board by Marine Bank and the individuals listed to be indirectly owned or controlled by the transon Schedule A. In the event the Board should feror unless the Board, after opportunity for hearhereafter determine that facts material to this deing, determines that the transferor is not in fact termination are otherwise than as represented, or capable of controlling the transferee.1 that Marine Bank or the individuals listed on Notice of an opportunity for hearing with respect Schedule A failed to disclose to the Board other to Tracy's request for a determination under secmaterial facts, this determination may be revoked, tion 2(g)(3) in relation to the sale of TODA was and any change in the facts or circumstances relied published in Xht Federal Register on September 30, upon by the Board in making this determination 1977 (42 Fed. Reg. 63466 (1977)), and the time could result in the Board reconsidering the deterprovided for requesting a hearing has expired.2 No mination made herein. such request has been received by the Board, nor By order of the Board of Governors, acting through its General Counsel, pursuant to delegated 1 For purposes of § 2(g)(3) of the Act, an individual to whom authority (12 CFR § 265.2(b)(1)), effective Decem- shares are transferred by a bank holding company and who is an ber 5, 1977. officer or director of the bank holding company is deemed to be a transferee having an officer or director "in common with or subject to control by" the transferor. (Signed) THEODORE E. ALLISON, 2 Such notice did not include reference to Tracy's divestiture of Secretary of the Board. Realty. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1978 has any evidence been received to show that Tracy directors in their capacities as transferees of the is in fact capable of controlling TOD A, DAA or stock of Realty. Realty. Accordingly it is ordered, that the request of It is hereby determined that Tracy is not in fact Tracy for determinations pursuant to § 2(g)(3) be capable of controlling or exerting a controlling and hereby are granted. Any material change in the influence, directly or indirectly, over TODA or facts or circumstances relied upon in making these DAA. This determination is based upon the evi- determinations or any material breach of any of the dence of record in this matter including the follow- commitments upon which the decision is based ing facts. DAA is a closely held corporation, and could result in reconsideration of the determinanone of its shareholders is related to Tracy, other tions made herein. than by virtue of their previous employment by By order of the Board of Governors, acting TODA while it was a subsidiary of Tracy. There are through its General Counsel, pursuant to delegated no existing interlocking director, officer, or em- authority (12 CFR § 265.2(b)(1)), effective Decemployee relationships between Tracy and TODA or ber 30, 1977. Tracy and DAA. DAA's principals are personal guarantors of DAA's indebtedness to Bank and (Signed) THEODORE E. ALLISON, appear to have substantial personal financial re- [SEAL] Secretary of the Board. sources. It appears that the sale of TODA was negotiated at arm's length and that it is not unreasonable to conclude that DAA will be able to service its indebtedness to Bank. The board of directors of Tracy has submitted a resolution to the effect that Tracy does not, and will not attempt to, control or ORDER UNDER BANK MERGER ACT exercise a controlling influence over TODA or The Hillsboro Bank and Savings Co., DAA. Hillsboro, Ohio The indebtedness of DAA to Bank is secured by 100 per cent of the shares of TODA. In this regard, Order Approving Application for Merger of Banks Tracy has committed that, in the event of default by DAA and reacquisition of the shares by Bank, The Hillsboro Bank and Savings Co., Hillsboro, Tracy will promptly notify the Board and Bank will Ohio ("Hillsboro Bank") has applied for the take Appropriate steps to dispose of the shares Board's approval pursuant to the Bank Merger Act within six months of regaining control over said (12 U.S.C. § 1828(c)), to acquire the assets and shares. assume the liabilities of The Farmers Exchange It is also hereby determined that Tracy is not in Bank, Lynchburg, Ohio ("Lynchburg Bank"). Infact capable of controlling or exercising a control- cident to the proposed acquisition the existing ling influence, directly or indirectly, over Realty or office of Lynchburg Bank would become a branch the transferees of Realty. This determination is office of the resulting bank. based upon the evidence of record in this matter As required by the Bank Merger Act, notice of including the following facts. Three individuals, the proposed transactions was published in a form with their spouses, own all of the outstanding approved by the Board, and reports on competitive voting shares of Tracy and serve as Tracy's board effects from the U.S. Attorney General, the Compof directors and only officers. On December 31, troller of the Currency, and the Federal Deposit 1976, Tracy made a pro rata distribution of all of its Insurance Corporation were requested, and reports 500 shares, representing 100 per cent of the out- were submitted by the U.S. Attorney General and standing shares of Realty and the shareholders of the Federal Deposit Insurance Corporation. A Tracy. Tracy holds no interest in Realty. Moreover, comment was also received from the Banking Dethere are no interlocking director, officer or em- partment of the State of Ohio.1 The Board has ployee relationships between Tracy, including Bank, and Realty. The divestiture does not appear 1 The U.S. Attorney General expressed the view that consumto be a means for perpetuating Tracy's control over mation of the proposed transaction would not have a substantial Realty. On the basis of the above and other facts of competitive impact. The Federal Deposit Insurance Corporation record, the Board concludes that Tracy does not expressed the view that the merger would have an adverse competitive impact. The Banking Department of the State of Ohio control and is not in fact capable of controlling its has given informal approval for the proposed acquisition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 53 considered the application and all comments and more effective competition in the Lynchburg area. reports received in the light of the factors set forth For the reasons discussed above the Board conin the Bank Merger Act. cludes that consummation of the proposed transac- Hillsboro Bank holds deposits of $32.3 million tion would not have any substantial adverse effects and is the largest of four banks in the Hillsboro on competition. banking market,2 with three of its four branches The Board finds the financial and managerial operating in that market.3 Lynchburg Bank holds resources and future prospects of Hillsboro Bank to deposits of $11.7 million and is the fourth largest be satisfactory and those of Lynchburg Bank to be bank in the Hillsboro market. Hillsboro Bank holds generally satisfactory. The financial and managerial approximately 31 per cent of total deposits in resources and future prospects of the resulting commercial banks in the market, and upon con- institution would also be satisfactory, and consummation of the proposal would hold approxi- siderations relating to financial and managerial remately 44 per cent of market deposits. While the sources are regarded as consistent with approval of market would have fewer independent competitors, the application. it does not appear that a significant amount of Consummation of the proposed transaction competition would be eliminated. Analysis of the should lead to the introduction of new and immarket area served by Hillsboro Bank, based on proved services for customers in the Lynchburg commercial and commuting patterns, and a survey area. Lynchburg Bank, as a branch of Hillsboro of accounts held at Hillsboro Bank and Lynchburg Bank, would be enabled to increase its lending limit Bank, indicates that Hillsboro Bank's services are to individual customers. Hillsboro Bank has indioriented toward the eastern and southern portions cated that it plans to expand commercial and conof Highland County, whereas Lynchburg Bank sumer loan activity at the Lynchburg branch. In primarily serves northwestern Highland County. addition, the Lynchburg office would institute the Lynchburg Bank derives only 6.9 per cent of its payment of maximum rates of interest allowable by total deposits and 6.7 per cent of its total loans from law on time deposits, the payment of compound the service area of Hillsboro Bank. Furthermore, interest, and the payment of interest monthly on Hillsboro Bank derives only 1.3 per cent of its total request. Accordingly, and in light of the convenideposits and 2.6 per cent of its total loans from the ence and needs factors discussed above, the Board service area of Lynchburg Bank. Two of Hillsboro regards considerations relating to the convenience Bank's offices, located in the northeastern part of and needs of the community to be served as lending Highland County, derive no business at all from some weight toward approval of the application Lynchburg Bank's service area. and, in the Board's view, are sufficient to outweigh It appears that banks have found it difficult to any slight adverse competitive effects that might obtain business from the Lynchburg area. Lynch- result from consummation of the proposal. It is the burg Bank's president has attracted strong loy- Board's judgment that the application should be alty from the Lynchburg community, and his long approved. standing personal relationship with members of that On the basis and the reasons summarized above, community appear to account for the fact that the application to acquire assets and assume competitors have been unable to attract a signifi- liabilities and, incident thereto, to establish a cant amount of business from Lynchburg. Con- branch, is approved. The transactions shall not be summation of the proposed transaction should re- made (a) before the thirtieth calendar day following duce the significance of personal relationships in the date of this Order or (b) later than three months determining the competitive situation in Lynch- after the date of this Order, unless such period is burg, and it is anticipated that consummation of extended for good cause by the Board, or by the the proposed transaction should encourage other Federal Reserve Bank of Cleveland pursuant to banks to renew efforts to attract more business delegated authority. from Lynchburg in the future. For this reason the By order of the Board of Governors, effective proposed transaction should actually stimulate December 21, 1977. Voting for this action: Chairman Burns and Governors Gardner, Wallich, Jackson, Partee, and Lilly. Absent and 2 Unless otherwise noted, all banking data are as of March 31, not voting: Governor Cold well. 1977. Market data are as of June 30, 1976. 3 The Hillsboro banking market is comprised of all of Highland (Signed) GRIFFITH L. GARWOOD, County with the exception of Madison Township, which is in the northeastern portion of the County. [SEAL] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • January 1978 PRIOR CERTIFICATIONS PURSUANT TO THE 3. Time became a bank holding company on BANK HOLDING COMPANY TAX ACT OF 1976. December 31, 1970, as a result of the 1970 Amendments to the BHC Act, by virtue of its ownership Time Holdings, Inc., and control at that time of more than 25 per cent of Milwaukee, Wisconsin the outstanding voting shares of Bank, and it registered as such with the Board on September 22, [Docket No. TCR 76-149] 1971. Time would have been a bank holding com- Time Holdings, Inc., Milwaukee, Wisconsin pany on July 7, 1970, if the BHC Act Amendments ("Time") has requested a prior certification pur- of 1970 had been in effect on that date by virtue of suant to § 1101(b) of the Internal Revenue Code its ownership and control on that date of more than (the "Code"), as amended by § 2(a) of the Bank 25 per cent of the outstanding voting shares of Bank. Holding Company Tax Act of 1976, that its pro- 4. Time holds property acquired by it on or posed divestiture of 362,900 shares of Bank of before July 7, 1970, the disposition of which would Commerce, Milwaukee, Wisconsin ("Bank"), pres- be necessary or appropriate to effectuate section 4 ently held by Time, through the pro rata distribu- of the BHC Act if Time were to continue to be a tion of such shares to the shareholders of Time is bank holding company beyond December 31, 1980, necessary or appropriate to effectuate the policies and which property is "prohibited property" within of the Bank Holding Company Act (12 U.S.C. § 1841 the meaning of section 1103(c) of the Code. et seq.) ("BHC Act"). 5. Time has committed to the Board that it will In connection with this request, the following terminate all interlocking relationships between information is deemed relevant, for purposes of Time and Bank by May 1, 1978. issuing the requested certification:1 On the basis of the foregoing information, it is 1. Time is a corporation organized under the hereby certified that: laws of Nevada on April 24, 1969. (A) Time is a qualified bank holding corporation, 2. On June 26, 1969, Time acquired ownership within the meaning of subsection (b) of section 1103 and control of 68,644 shares, representing 91.525 of the Code, and satisfies the requirements of that per cent of the outstanding voting shares, of Bank. subsection; Time acquired additional shares of Bank thereafter, (B) the 362,900 shares of Bank covered by the and on July 7, 1970, owned and controlled 71,645 subject request that Time proposes to distribute to shares representing 95.53 per cent of Bank's out- its shareholders are all or part of the property by standing voting shares. Between that date and June reason of which Time controls (within the meaning 23, 1977, Time acquired an additional 935 shares of of section 2(a) of the BHC Act) a bank or bank Bank. On June 23, 1977, five shares of Bank were holding company;3 and issued to Bank's shareholders for every one share (C) the distribution of such shares is necessary of stock then held by them. Thus, Time now holds or appropriate to effectuate the policies of the BHC 362,900 of shares, representing 96.773 per cent of Act. the outstanding voting shares of Bank.2 This certification is based upon the representations made to the Board by Time and upon the facts set forth above. In the event the Board should 1 This information derives from Time's correspondence with the determine that facts material to this certification are Board concerning its request for this certification, Time's Regis- otherwise than as represented by Time or that Time tration Statement filed with the Board pursuant to the BHC Act, has failed to disclose to the Board other material and other records of the Board. 2 Under subsection (c) of § 1101 of the Code, property acquired facts, it may revoke this certification. This certificaafter July 7, 1970 generally does not qualify for the tax benefits of tion is granted on the condition that after May 1, § 1101(b) when distributed by an otherwise qualified bank holding 1978, no person holding an office or position (incompany. However, where such property was acquired by a qualified bank holding company in a transaction in which gain was cluding an advisory or honorary position) with not recognized under § 305(a) of the Code, then § 1101(b) is Time or any of its subsidiaries as a director, policy applicable. Time has indicated that the shares of Bank acquired on making employee or consultant, or who performs June 23, 1977, were acquired in a transaction in which gain was not recognized under section 305(a) of the Code. Accordingly, (directly, or through an agent, representative or even though such shares were acquired after July 7, 1970, those shares would nevertheless qualify as property eligible for the tax benefits provided in section 1101(b) of the Act, by virtue of section 1101(c), if the shares of Bank were in fact received in a transaction in which gain was not recognized under section 305(a) of the Act. 3 As noted above, 4,675 of the shares of Bank to be distributed Of the total 362,900 shares of Bank presently held by Time, by time were acquired by it after July 7, 1970, and do not appear to 4,675 shares represent property acquired after July 7, 1970, for qualify for any of the exceptions to the provision of § 1101(c) of the which none of the exceptions provided in section 1101(c) of the Code that makes § 1101(b) inapplicable to the distribution of Code appears to be available. shares acquired after that date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 55 nominee) functions comparable to those normally 2. On December 20, 1969, Tracy acquired associated with such office or position, will hold ownership and control of 288 shares, representing any such office or position or perform any such 100 per cent of the total outstanding voting shares, function with Bank or any of its subsidiaries. of Tracy Collins Bank and Trust Company, Salt By order of the Board of Governors, acting Lake City, Utah ("Bank"). through its General Counsel, pursuant to delegated 3. Tracy became a bank holding company on authority, (12 CFR 265.2(b)(3)), effective December December 31, 1970, as a result of the enactment of 21, 1977. the 1970 Amendments to the BHC Act, by virtue of (Signed) GRIFFITH L. GARWOOD, its ownership and control at that time of more than [SEAL] Deputy Secretary of the Board. 25 per cent of the outstanding voting shares of Bank, and it registered as such with the Board on Tracy Bancorp, July 12, 1971. Tracy would have been a bank Salt Lake City, Utah holding company on July 7, 1970, if the BHC Act Amendments of 1970 had been in effect on such [Docket No. TCR 76-127] date, by virtue of its ownership and control on that Tracy Bancorp, Salt Lake City, Utah ("Tracy"), date of more than 25 per cent of the outstanding has requested a prior certification pursuant to sec- voting shares of Bank. On December 31, 1976, tion 1101(a)(1) of the Internal Revenue Code Tracy owned 288 shares, representing 100 per cent ("Code"), as amended by section 2(a) of the Bank of the outstanding voting shares, of Bank. Holding Company Tax Act of 1976 ("Tax Act"), 4. On December 31, 1976, Tracy held property that its divestiture on December 31, 1976, of 500 acquired by it on or before July 7, 1970, the shares of Tracy Realty Company ("Realty"), disposition of which would be necessary or approthrough the pro rata distribution of such shares to priate to effectuate section 4 of the BHC Act if the holders of the common stock of Tracy, was Tracy were to continue to be a bank holding comnecessary or appropriate to effectuate section 4 of pany beyond December 31, 1980, which property is the Bank Holding Company Act (12 U.S.C. § 1841 prohibited property within the meaning of section et seq.) ("BHC Act").1 Tracy has also requested a 1103(c) of the Code. final certification pursuant to section 1101(e)(1) of 5. On December 20, 1969, Tracy acquired indithe Code that it has (before the expiration of the rect ownership and control, through Bank, of 500 period prohibited property is permitted under the shares, representing 100 per cent of outstanding BHC Act to be held by a bank holding company) shares, of Realty, a company engaged in the busidisposed of all of the property the disposition of ness of selling and leasing residential and commerwhich is necessary or appropriate to effectuate cial real property. section 4 of the BHC Act. 6. On December 31, 1976, Bank distributed all of In connection with this request, the following the 500 shares of Realty then held by Bank to information is deemed relevant for purposes of Tracy. On the same date Tracy made a pro rata issuing the requested certification.2 distribution of such shares to the common share- 1. Tracy is a corporation, organized under the holders of Tracy. laws of the State of Utah on November 17, 1969. 7. Tracy does not hold any interest (including a debtor-creditor relationship) in Realty or any transferee of the shares of Realty. 1 Pursuant to section 2(d)(2) of the Tax Act, in the case of any 8. Realty does not hold any interest in Tracy or distribution that takes place on or before December 31, 1976 (the any subsidiary of Tracy. 90th day after the date of the enactment of the Tax Act), the certifi- 9. No officer, director (including honorary or cation described in section 1101(a)(1)(B) shall be treated as made advisory director) or employee with policy making before the distribution if application for such certification was made before the close of December 31, 1976. Tracy's request for such functions of Tracy or its subsidiary holds any such certification was undated. It appears to have been mailed on position with Realty. January 6, 1977, and was received by the Board on January 10, 1977. The issuance of this prior certification is not intended as a 10. Under section 4(a)(2) of the BHC Act, Tracy determination by the Board that Tracy is entitled to the benefits is required to divest Tracy-Osborne-Dickson & provided by the Tax Act, and no opinion is expressed by the Associates, Salt Lake City, Utah ("TODA"), by Board as to the legal effect for purposes of the Tax Act of the apparent untimeliness of the application. December 31, 1980, if Tracy were to continue to be 2 This information derives from Tracy's correspondence with a bank holding company after that date. On Dethe Board concerning its request for certification, Registration cember 31, 1976, Tracy sold all of its 50,000 shares, Statement filed with the Board pursuant to the BHC Act, and other records of the Board. representing 100 per cent of the outstanding shares, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1978 of TODA to Dickson-Ackerlind & Associates, Salt (B) the shares of Realty distributed by Tracy Lake City, Utah ("DAA").3 were prohibited property within the meaning of 11. Tracy does not hold any other property that section 1103(c) of the Code; must be divested by December 31, 1980. (C) the distribution of the shares of Realty was 12. Tracy has represented that it does not control necessary or appropriate to effectuate section 4 of or exercise a controlling influence over the man- the BHC Act; and agement or policies of Realty or TODA and that it (D) Tracy has (before the expiration of the will not hereafter, alone or acting through one or period prohibited property is permitted under the more other persons, directly or indirectly acquire, BHC Act to be held by a bank holding company) retain, exercise or attempt to exercise control or disposed of all of the property the disposition of any controlling influence over the management or which is necessary or appropriate to effectuate policies of Realty or TODA. section 4 of the BHC Act. On the basis of the foregoing information, it is This certification is based upon the representahereby certified that: tions made to the Board by Tracy and upon the (A) on December 31, 1976, Tracy was a qualified facts set forth above. In the event the Board should bank holding corporation, within the meaning of hereafter determine that facts material to this cersubsection (b) of section 1103 of the Code, and tification are otherwise than represented by Tracy, satisfied the requirements of that subsection; or that Tracy has failed to disclose to the Board other material facts, it may revoke this certifica- 3 Effective December 30, 1977, the Board issued a determina- tion. tion pursuant to section 2(g)(3) of the BHC Act that (1) Tracy is By order of the Board of Governors acting not in fact capable of controlling TODA, notwithstanding the fact through its General Counsel, pursuant to delegated that the purchase by DAA of all of the outstanding voting shares of TODA was financed in part by a loan from Bank; and (2) Tracy is authority (12 CFR 265.2(b)(3)), effective December not in fact capable of controlling Realty notwithstanding the fact 30, 1977. that the directors of Tracy to whom the shares of Realty were transferred are deemed to be a transferee having an officer or (Signed) THEODORE E. ALLISON, director in common with or subject to control by Tracy. [SEAL] Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT BY THE BOARD OF GOVERNORS During December 1977, the Board of Governors approved the applications listed below. Copies are 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) Citizens State Banco, Citizens State Bank, Lincoln, 12/12/77 Lincoln, Nebraska Nebraska First National Corporation, The First State Bank of 12/7/77 Appleton, Wisconsin Campbellsport, Campbellsport, Wisconsin Junction City First The First National Bank of 12/28/77 National Company, Junction City, Junction Junction City, Kansas City, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 57 PENDING CASES INVOLVING THE BOARD OF GOVERNORS* Vickars-Henry Corp. v. Board of Governors, Governors, filed June 1976, U.S.C.A. for the filed December 1977, U.S.C.A. for the Ninth Seventh Circuit. Circuit. National Urban League, et. al. v. Office of the Emch v. The United States of America, et. al., Comptroller of the Currency, et. al., filed filed November 1977, U.S.D.C. for the East- April 1976, U.S.D.C. for the District of Coern District of Wisconsin. lumbia Circuit. Consumers Union of the United States, Inc. v. Association of Bank Travel Bureaus, Inc. v. Board of Governors, filed October 1977, Board of Governors, filed February 1976, U.S.D.C. for the District of Columbia. U.S.C.A. for the Seventh Circuit. Cor bin v. Federal Reserve Bank of New York, Memphis Trust Company v. Board of Gover- Board of Governors, et. al., filed October nors, filed February 1976, U.S.D.C. for the 1977, U.S.D.C. for the Southern District of Western District of Tennessee. New York. First Lincoln wood Corporation v. Board of Central Bank v. Board of Governors, filed Octo- Governors, filed February 1976, U.S.C.A. for ber 1977, U.S.C.A. for the District of Colum- the Seventh Circuit. bia. Roberts Farms, Inc. v. Comptroller of the Cur- Investment Company Institute v. Board of Gov- rency, et. al., filed November 1975, U.S.D.C. ernors, filed September 1977, U.S.C.A. for for the Southern District of California. the District of Columbia. Florida Association of Insurance Agents, Inc. v. Plaza Bank of West Port v. Board of Governors, Board of Governors, and National Associafiled September 1977, U.S.C.A. for the Eighth tion of Insurance Agents, Inc. v. Board of Circuit. Governors, filed August 1975, actions con- First State Bank of Abilene, Texas v. Board of solidated in U.S.C.A. for the Fifth Circuit, Governors, filed August 1977, U.S.C.A. for t David R. Merrill, et. al. v. Federal Open Market the District of Columbia. Committee of the Federal Reserve System, BankAmerica Corporation v. Board of Gover- filed May 1975, U.S.D.C. for the District of nors, filed May 1977, U.S.D.C. for the North- Columbia. ern District of California. Louis J. Roussel v. Board of Governors, filed BankAmerica Corporation v. Board of Gover- April 1975, U.S.D.C. for the Eastern District nors, filed May 1977, U.S.C.A. for the Ninth of Louisiana. Circuit. Georgia Association of Insurance Agents, et. al. First Security Corporation v. Board of Gover- v. Board of Governors, filed October 1974, nors, filed March 1977, U.S.C.A. for the U.S.C.A. for the Fifth Circuit. Tenth Circuit. Alabama Association of Insurance Agents, et. Farmers State Bank of Crosby v. Board of al. v. Board of Governors, filed July 1974, Governors, filed January 1977, U.S.C.A. for U.S.C.A. for the Fifth Circuit. the Eighth Circuit. Bankers Trust New York Corporation v. Board National Automobile Dealers Association, Inc. of Governors, filed May 1973, U.S.C.A. for v. Board of Governors, filed November 1976, the Second Circuit. U.S.C.A. for the District of Columbia. First Security Corporation v. Board of Governors, filed August 1976, U.S.C.A. for the * This listing of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not Tenth Circuit. named a party. Central Wisconsin Bankshares, Inc. v. Board of $ 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

59 Announcements DR. ARTHUR F. BURNS: THE WHITE HOUSE Resignation as a Member WASHINGTON of the Board of Governors January 13, 1978 Dear Chairman Burns: The White House on January 13 announced the It is with sincere regret and a deep sense of resignation of Arthur F. Burns as a member of the personal loss that I accept your decision to Board of Governors, effective March 31 or at any resign as a member of the Federal Reserve earlier time convenient to the President. President Board. Carter accepted the resignation with "sincere re- We have worked together closely over the gret and a deep sense of personal loss." past year, and my respect, for your sound judgment and integrity has grown steadily. Dr. Burns became a member of the Board of Your advice and counsel have been of enor- Governors, and its Chairman, on February 1, 1970. mous value to me in dealing with the difficult He was reappointed to a 4-year term as Chairman, decisions I had to make during my first year effective February 1, 1974. The exchange of letters as President. between Dr. Burns and President Carter follows: Your leadership of the Federal Reserve over the past eight years occurred at a time when January 12, 1978 our nation, and others around the world, Dear Mr. President: were forced to grapple with economic problems of extraordinary complexity. Our coun- I have given careful thought to the question try has been fortunate to have a person of of continuing to serve as a member of the your experience and knowledge at the helm Federal Reserve Board and have decided not of the central bank during this difficult to do so. This decision is based on my convicperiod. tion that Mr. Miller deserves the fullest opportunity to establish his leadership at the Because of your impeccable honesty, your helm of our Nation's central bank. The con- wisdom, and your frank and courageous pretinued presence of a former Chairman could, sentation of your professional opinions, citiin my judgment, be a complicating distrac- zens in every walk of life have come to know tion. and respect you during your long period of I am mindful, of course, of the desirability public service. In expressing my own proof easing the transition at the Board and also found thanks to you, I am conveying the of affording you time to name a new Board sentiments of a grateful nation. Member. With these and also personal con- I will miss very much the frequent personal siderations in mind, I propose March 31, contact that we have had over the past year, 1978—or any earlier convenient time—as the and I trust that in the future your services will effective date of resignation. still be available to me and to the nation. I take leave of my present office with deep gratitude for the opportunity I have had to Sincerely yours, serve under you and five of your predecessors. America is a blessed country and it Jimmy Carter has been good to its people. Adopted citizens, such as myself, perhaps know this even CHANGE IN DISCOUNT RATE more keenly than do the native born. That is why their love of this land of freedom and The recent disorder in foreign exchange markets opportunity is so often all-consuming. I need constitutes a threat to orderly expansion of the hardly add that you can count on me if I can ever be of significant help in your efforts on domestic and international economy. In view of this, our country's behalf. the Board of Governors of the Federal Reserve System on January 6, 1978, approved an increase in With every good wish to you, the discount rate from 6 per cent to 6-1/2 per cent. Sincerely yours, The Board expressed the hope that the need for Arthur F. Burns the increase will prove temporary. The Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bulletin • January 1978 A77 further indicated that the condition of the domestic Based on the experience of this survey, the bank economy is sound and that credit supplies to sustain regulatory agencies have instituted a semiannual economic expansion will remain ample. "Country Exposure Report" to begin with data for In making the change, the Board acted on requests December 1977. Results of future reports will be from directors of the Federal Reserve Banks of New published approximately 4 months after the report- York and Chicago, increasing the discount rates of ing date. those Banks to 6-1/2 per cent, effective January 9. The Board subsequently approved similar actions by the directors of the Federal Reserve Banks of TYPES OF LOANS Boston, Minneapolis, and Kansas City, effective The information gathered in the survey concen- January 10; of Richmond, St. Louis, Dallas, and trated on data concerning lending from a bank's San Francisco, effective January 13; of Atlanta, offices in one country to residents of another couneffective January 16; and of Philadelphia and Clevetry, or lending in a currency other than that of the land, effective January 20, 1978. The discount rate borrower. These are known as cross-border or is the interest rate that is charged member banks cross-currency loans. when they borrow from their district Federal Re- Cross-border and cross-currency loans are those serve Bank. most closely associated with country risk. These claims totaled $164 billion on the reporting date. About 42 per cent of such foreign lending was T R E A S U R Y - F E D E R AL R E S E R VE accounted for by claims on residents of Switzerland JOINT I N T E R V E N T I ON and the Group of Ten (G-10) developed countries. Another 20 per cent represented loans to residents The U.S. Treasury and the Board of Governors of "other developed countries" and "offshore issued the following announcement on January 4, banking centers."2 Cross-border and cross- 1978: currency claims on residents of non-oil-producing, The Exchange Stabilization Fund of the U.S. less-developed countries amounted to approxi- Treasury will henceforth be utilized actively, tomately $40 billion, or some 24 per cent of the total. gether with the $20 billion swap network operated by In addition, the banks reported $44 billion in local the Federal Reserve System. A swap agreement currency claims that were held by their offices in reached by the Treasury with the German Federal foreign countries on residents of the country in Bank is already in force. Joint intervention by the which the office was located. An example would be Treasury, the Federal Reserve, and foreign central German mark claims on German residents held by banks is designed to check speculation and rethe German branch of the reporting U.S. bank. To a establish order in the foreign exchange markets. large extent, these local currency claims were matched by $37 billion in local currency liabilities due to local residents. Approximately 75 per cent of C O U N T RY E X P O S U RE L E N D I NG these claims were on residents of Switzerland and the G-10 countries. SURVEY The results of a survey of foreign lending by large U.S. banks as of June 30, 1977, were made public MATURITIES on January 16, 1978, by the Office of the Comptrol- The survey provided for the first time comprehenler of the Currency, the Federal Deposit Insurance sive data on the type of customer and the maturity Corporation, and the Board of Governors. distribution of banks' claims on foreigners. About The survey was made to increase the information 63 per cent of the reported cross-border and crossavailable on foreign lending, on a country-by- currency claims had a maturity of less than 1 year. country basis. The data reported cover claims on Such short-term claims were especially prominent foreign residents held at all domestic and foreign in the G-10 countries and the offshore banking offices of 119 U.S. banks with assets of $1 billion or centers where, combined, $64 billion of the $85 more.1 billion in claims matured in less than 1 year. This heavy concentration of short-term claims reflects 1 The data referred to in this announcement are available in tabular form on request from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 2 Countries where multinational banks conduct a large 20551. international money market business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 61 the large volume of interbank lending in these ers by country of guarantor is about $150 billion, countries. Most such placements of deposits are for or $14 billion less than the total for claims by very short periods. country of borrower. This results from U.S. resi- For most other groups of countries, short-term dents guaranteeing about $16.5 billion of claims on claims accounted for about one-half of total claims foreigners and foreign residents guaranteeing about although the proportion varied significantly among $2.5 billion of claims on U.S. residents. individual countries. COMMITMENTS TO TYPE OF BORROWER PROVIDE FUNDS FOR FOREIGNERS With regard to type of customer, lending by the The survey also provided information on commerprivate nonbank sector was the largest, accounting cial letters of credit and other contingent claims on for $63 billion. Other types of lending were placeforeigners. The banks were asked to report such ments with banks amounting to $59 billion and contingent claims only when the bank had a legal loans to the public sector totaling $42 billion. This obligation to provide funds. The amounts reported latter category includes foreign central governtotal $42 billion, with 75 per cent of that total being ments, their political subdivisions and agencies, on the private sector, including banks. and commercial nonbank enterprises owned by government. This distribution varied significantly from country to country. Here also, most of the USE OF THE DATA claims on banks were on those located in the G-10 countries and the offshore banking centers. The results of the survey need to be interpreted with some caution. The survey was experimental in nature, and it was recognized that all banks might GUARANTEES not be able to furnish the requested information in the short period of time they were given. As a Information is provided on the cross-border and result, certain deviations from the instructions were cross-currency claims that are guaranteed by resi- permitted, and in a limited number of cases, data dents of another country. Claims are reallocated were estimated for banks that were unable to report from the country of residence of the borrower to all items requested. In particular, some banks were another country-on two grounds. First, claims on a permitted to report claims by "country of the bank branch located in one country when the head guarantor" rather than by country of the boroffice is located in another country are allocated to rower's residence. Gross claims on some countries the country of the head office. Since a branch is (particularly the banking centers) may, as a result, legally a part of the parent, claims on a branch are be somewhat understated. treated as being guaranteed by the head office. In addition, the reported contingent claims may Second, claims on a borrower in one country that be somewhat overstated, particularly with regard to are formally guaranteed by a resident of another the private sector, because some banks included country are allocated to the latter country. These advised lines of credit (when actual extensions of reallocations are thought to provide a better ap- credit under such lines might not be obligatory). In proximation of country exposure in the banks' spite of these difficulties, it is believed that the portfolios than the unadjusted figures. reported data provide a representative profile of the Most of the shifts are accounted for by the foreign claims of U.S. banks. transfer of claims on branches (and, when guaranteed, on subsidiaries) of banks to their head offices ($25 billion out of $33 billion). In general, the reallocations primarily affected the offshore bank- STATEMENT ON ing centers and some of the developed countries. IMPROPER ACTIVITIES For example, claims on the offshore banking centers decreased from $16.8 billion to $4.4 billion, and The Federal bank regulatory agencies issued notice claims on the United Kingdom decreased from $25 on January 17, 1978, that political contributions and billion to $15.8 billion. certain other questionable payments by banks and For the majority of less-developed countries, a bank holding companies may be regarded as unsafe relatively small portion of claims is externally and unsound banking practices subject to appropriguaranteed. The total shown for claims on foreign- ate corrective action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bulletin • January 1978 A77 In a joint policy statement the agencies said they domestic and foreign payments were made by will use their full legal authority to halt such prac- corporations may influence banks and bank holding companies. Thus, although the availtices, including cease-and-desist orders and reable information indicates that the number of ferrals to law enforcement agencies for possible banking firms that have engaged in improper prosecution. Such payments may also become a payment practices is small, Federal bank relevant factor in consideration of applications supervisory agencies are concerned that such practices, if permitted to continue, would submitted by organizations that made the paycome to reflect adversely on the banking ments. system as a whole. It is the judgment of the The policy statement was issued by the Comp- agencies that the practice of making political troller of the Currency (supervisor of national contributions and certain other payments, in addition to their possible illegality, may conbanks), the Federal Deposit Insurance Corporation stitute an unsafe or unsound banking prac- (Federal supervisor of insured State-chartered tice. banks that are not members of the Federal Reserve System), and the Board of Governors of the Federal The devices used by banking organizations to make political payments have included Reserve System (supervisor of State-chartered compensatory bonuses to employees, immember banks and of bank holding companies). properly designated expense accounts, ex- Referring to recent disclosures by a small number cessive fees or salaries paid to officers, and of banks and bank holding companies of certain low or zero interest rate loans. In addition, questionable payments, the statement expressed political contributions have been made by providing equipment and services without the belief of the Federal regulators that continuacharge to candidates for office. Many of these tion of such practices would reflect unfavorably on devices involved clear departures from acthe banking system as a whole and thus undermine ceptable accounting practices. Consequent public confidence. lack of corporate accountability raises serious questions regarding the effectiveness of The text of the joint policy statement follows: an institution's own internal audit procedures. For banking organizations to engage in Statement of Policy Concerning Improper illegal or unethical activities and to attempt to and Illegal Payments by Banks and Bank conceal those activities by the use of irregular accounting practices could only serve to Holding Companies undermine public confidence in the banking In recent years a number of U.S. corpora- system. tions have disclosed that they have engaged All banks and bank holding companies subin certain questionable practices with respect ject to the Federal supervisory authority of to foreign and domestic payments. These the Board, the Comptroller of the Currency, practices have included improper and illegal and the FDIC are expected not only to conpolitical contributions, bribes, kickbacks, duct their operations in accordance with apetc., and have taken place, in some instances, plicable laws but to refrain from making paywith the knowledge, consent, and even the ments that may constitute unsafe and unparticipation of senior corporate managesound banking practices. Where violations of ment. Many of the foreign payments, legal law or unsafe and unsound banking practices under U.S. law at the time they were made, result from improper payments, the appropriwould, as a result of the recently enacted ate agency will exercise its full legal author- Foreign Corrupt Practices Act of 1977, Public ity, including cease-and-desist proceedings Law 95-213, 91 Stat. 1494 (1977), be illegal if and referral to the appropriate law enforcemade today. In addition, under Federal and ment agency for further action, to ensure that State laws, certain political contributions and such practices are terminated. In appropriate other types of payments are illegal. circumstances, the fact that such payments Recently, a few banks and bank holding have been made may reflect so adversely on companies have disclosed that, over a period an organization's management as to be a of time, they also have engaged in question- relevant factor in connection with the conable payment practices either directly or sideration of applications submitted by the through subsidiary banks. Of the question- organization. able payment practices disclosed to date, most have consisted of domestic political In the near future, the agencies expect to contributions. While information presently institute additional procedures in conjunction available does not indicate any significant with their general and specialized examinainvolvement by banks or bank holding com- tions of banks and bank holding companies panies in any of the other types of question- designed to evaluate individual institutions' able payment practices disclosed by other controls for ensuring adherence to provisions U.S. corporations, the agencies recognize of law prohibiting unsafe or unsound practhat the circumstances in which questionable tices, including the making of contributions to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 63 or corporate expenditures on behalf of candi- 1978 provide for total cash outlays of $765.6 million. dates for elective office, officials of foreign or This includes $64.8 million in capital outlays, a domestic governments, and others. Banks decrease of $7 million from 1977, and operating and bank holding companies are urged to outlays of $722.2 million, an increase of $36.8 million review their own corporate policies and accounting practices to ensure that the funds of over 1977. To avoid double counting the total figure the institution are applied for proper purposes is adjusted for depreciation of capital equipment. only. The 5.4 per cent rise in operating expenditures for 1978 is substantially less than the average annual growth at the Reserve Banks of 7.7 per cent a year RESERVE BANK EARNINGS from 1974 through 1977. Output per hour at the Reserve Banks is expected Preliminary figures indicate that gross current earnto increase by more than 10 per cent in 1977 and in ings of the Federal Reserve Banks amounted to 1978. Reserve Bank payrolls have shrunk by 2,156 $6.89 billion during 1977, a 4.0 per cent increase employees over the last 3 years and a further from a year earlier. Currrent expenses for the 12 reduction of 486 employees is expected next year, Reserve Banks and their branches totaled $624 when the number of employees will total 24,007. million. The Board's budget will be considered at a later Net earnings before payments to the U.S. Treasdate. ury totaled $6,043 billion. This figure includes a loss of $177 million in the profit and loss account (primarily reflecting a loss of $146 million in foreign exchange transactions) and a $47 million assess- OPEN BOARD MEETINGS: ment for expenditures of the Board of Governors. Requests for Materials Payments to the Treasury as interest on Federal Reserve notes amounted to $5,937 billion; statutory For the information of the public, the Secretary of dividends to member banks, $60 million; and addi- the Board of Governors has outlined the following tions to Reserve Bank surplus, $46 million. procedures that are in effect at the Board for the Under the policy adopted by the Board of Gover- processing of requests for copies of memoranda and nors at the end of 1964, all net earnings after the other material scheduled to be discussed at meetings statutory dividend to member banks and additions of the Board that are open to public observation: to surplus to bring it to the level of paid-in capital As required by law, the Secretary of the Board were paid to the U.S. Treasury as interest on regularly makes public announcement of the agenda Federal Reserve notes. for each open meeting at least 1 week in advance of Compared with 1976, gross earnings were up the meeting. Members of the public who wish to $268 million. The principal changes in earnings (in request copies of materials scheduled to be dismillions of dollars) were as follows: cussed at such a meeting should make their requests to the Secretary as far in advance of the meeting as U.S. Govt, securities 332 Loans 22 possible in accordance with the Board's Rules Acceptances -23 Regarding Availability of Information, 12 C.F.R. Foreign currencies -25 Part 261. In any case, the request should be received Earnings of the Federal Reserve System are by the close of business two working days prior to derived primarily from U.S. Government securities the meeting. that the Federal Reserve has acquired through open Because such materials may be helpful to the market operations, one of the tools of monetary requesting party if they are available for use at the policy. open meeting to which they relate, the Secretary gives such requests priority treatment. Requested materials are made available by the time of the APPROVAL OF meeting unless there is insufficient opportunity to RESERVE BANK BUDGETS process the request or a determination is made to invoke an applicable exemption from disclosure. The Board of Governors on December 21, 1977, Requests for materials to be discussed in open approved the 1978 budgets of the 12 Federal Reserve meetings should be in writing and addressed to the Banks, permitting an increase of 3 per cent over total Secretary. They may be presented during business outlays anticipated for 1977. hours at the Board's Freedom of Information Office, The Reserve Bank budgets approved for calendar Room 1228, Federal Reserve Building, 20th Street Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bulletin • January 1978 A77 and Constitution Avenue, N.W., Washington, D.C. payments services to financial institutions and the 20551. public. POSTPONEMENT OF CHANGES IN BOARD STAFF REVISED REPORTS The Board of Governors has announced the follow- The Board of Governors has announced postponeing official staff promotions in the Legal Division, ment of the proposed effective date of revisions in effective January 3, 1978: quarterly reports by State member banks of their Robert E. Mannion from Assistant General Councondition and income. The proposals—announced sel to Associate General Counsel. in October—would affect chiefly banks with foreign Allen L. Raiken from Assistant General Counsel offices and others with assets of $300 million or to Associate General Counsel. more. The Board also announced the resignation of The target date for the reporting changes was Baldwin B. Tuttle, Deputy General Counsel, effecpostponed from March 31, 1978. A new date for tive December 30. implementation of the revised reports will be announced in the near future. The Board said it was acting on the basis of comments received and in order to give adequate SYSTEM MEMBERSHIP: time for consideration of these comments. Admission of State Bank The following bank was admitted to membership in PROPOSED ACTIONS: the Federal Reserve System during the period De- FUNDS TRANSFER AND CLEARING cember 16, 1977, through January 15, 1978: The Board of Governors has invited comment by Oklahoma February 28, 1978, on plans to enhance and improve Tulsa Harvard Tower Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

65 Industrial Production Released for publication January 17 Output of intermediate products, which includes construction and business supplies, advanced 0.9 Industrial production increased by an estimated 0.2 per cent further. per cent in December, compared with revised in- Output of total materials declined 0.1 per cent in creases of 0.4 per cent in November and 0.2 per December, as production of energy materials was cent in October. The December increase in the reduced more than 3 per cent due to the coal strike. index would have been twice as large if it were not Both durable and nondurable goods materials infor the nearly 50 per cent cut in bituminous output creased moderately further. due to the coal strike. Moderate increases were registered in most market groupings of the index, including home goods, consumer nondurable goods, business equipment, construction supplies, and durable and nondurable goods materials. The December index, at 139.6 per cent of the 1967 average, implies a preliminary annual average for 1977 of 137.1 per cent, up 5.6 per cent from the previous year. Output of consumer goods increased 0.3 per cent, reflecting moderate increases in home goods and nondurable consumer goods such as food, staples, and clothing. In response to weaker-than-expected sales, auto assemblies were reduced to an annual rate of 8.9 million units from 9.1 million in November. First-quarter assemblies are also currently scheduled in this range. Production of business equipment is estimated to have increased 0.4 per cent in December, following smaller rises over the previous 2 months; a small portion of this increase is attributable to partial resumption of F.R. indexes, seasonally adjusted. Latest figures: December. production in strike-affected aerospace industries. *Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 PPeerr cceenntt cchhaannggeess ffrroomm—— IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1977 Sept. Oct. Nov.p Dec.e Month ago Year ago Q3 to Q4 Total 138.5 138.8 139.3 139.6 .2 5.0 .6 Products, total 138.8 138.9 139.3 140.0 .5 4.9 .6 Final products 136.8 136.6 137.0 137.6 .4 4.6 .4 Consumer goods 144.9 145.2 145.7 146.2 .3 3.5 .5 Durable goods 155.6 157.2 155.6 155.9 .2 3.6 .1 Nondurable goods 140.7 140.5 141.6 142.2 .4 3.3 .6 Business equipment 152.1 152.3 152.7 153.3 .4 7.7 .9 Intermediate products 146.5 147.0 147.9 149.2 .9 6.2 1.2 Construction supplies 143.2 144.4 146.0 147.1 .8 8.6 2.7 Materials 137.9 138.8 139.2 139.1 -.1 5.4 .7 pPreliminary. Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al 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 A11 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 A15 Aggregate reserves and deposits of A32 Federal debt subject to statutory member banks limitation A15 Loans and investments of all A32 Gross public debt of U.S. Treasury— commercial banks Types and ownership A33 U.S. Government marketable 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, June 30, 1977 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • January 1978 A77 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 assets held at F.R. A43 Extensions and liquidations banks A65 Foreign transactions in securities FLOW OF FUNDS REPORTED BY NONBANKING CONCERNS IN A44 Funds raised in U.S. credit markets THE UNITED STATES: A45 Direct and indirect sources of funds to credit markets A66 Short-term liabilities to and claims on foreigners DOMESTIC NONFINANCIAL STATISTICS A67 Long-term liabilities to and claims on foreigners A46 Nonfinancial business activity— Selected measures INTEREST AND EXCHANGE RATES A46 Output, capacity, and capacity utilization A68 Discount rates of foreign central banks A47 Labor force, employment, and A68 Foreign short-term interest rates unemployment A68 Foreign exchange rates A48 Industrial production—Indexes and gross value A69 GUIDE TO TABULAR PRESENTATION A50 Housing and construction AND STATISTICAL RELEASES 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 July Aug. Sept. Oct. Nov. 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 16.9 9.8 -.5 9.1 3.7 2 Required 4.0 3.0 3.5 8.6 12.5 12.5 -.8 9.1 2.4 3 Nonborrowed 4.8 2.6 1.9 3.4 14.9 -15.4 14.6 -14.1 19.3 Concepts of money 1 4 M-l 6.5 4.2 8.4 9.3 18.3 5.9 7.3 12.0 1.8 5 M-2 12.5 9.9 9.2 10.3 16.6 6.4 7.9 10.1 4.5 6 M-3 14.4 11.3 10.0 12.4 16. 1 11.5 12.3 '12.5 7.3 Time and savings deposits Commercial banks: 7 Total 12.2 12.5 8.3 10.0 11.0 6.9 7.6 14.6 18.3 8 Other than large CD's 17.1 14.0 9.8 10.9 15.4 6.8 8.6 8.6 9.0 9 Thrift institutions 2 17.3 13.4 11.2 15.5 15.5 18.4 '18.8 '15.9 11.2 10 Total loans and investments at commercial banks 3 10.8 '9.5 '13.3 '9.8 '9.5 12.3 '3.8 '13.5 11.8 1977 1977 Ql Q2 Q3 Q4 Aug. Sept. Oct. Nov. Dec. Interest rates (levels, per cent per annum) Short-term rates 11 Federal funds 4 4.66 5.16 5.82 6.51 5.90 6.14 6.47 6.51 6.56 12 Treasury bills (3-month market yield) 5 4.63 4.84 5.50 6.11 5.49 5.81 6.16 6.10 6.07 13 Commercial paper (90- to 119-day) 6 4.74 5.15 5.74 6.56 5.75 6.09 6.51 6.54 6.61 1144 Federal Reserve discount 7 55..2255 55..2255 55..4422 55..2277 55..7755 55..8800 66..0000 66..0000 Long-term rates Bonds: 15 U.S. Govt. 8 7.62 7.68 7.60 7.78 7.64 7.57 7.71 7.76 7.87 16 State and local government 9 5.88 5.70 5.59 5.57 5.62 5.51 5.64 5.49 5.57 17 Aaa utility (new issue) 1 o 8.17 8.21 8.09 8.27 8.04 8.07 8.23 8.27 8.34 1188 Conventional mortgages *1 88..8822 88..9955 99..0000 99..0055 99..0000 99..0000 99..0000 99..0055 1 M-l equals currency plus private demand deposits adjusted. 7 Rate for the Federal Reserve Bank of New York. M-2 equals M-l plus bank time and savings deposits other than large 8 Market yields adjusted to a 20-year maturity by the U.S. Treasury. negotiable certificates of deposit (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 10 Weighted averages of new publicly offered bonds rated Aaa, Aa, loan associations, and credit union shares. and A by Moody's Investors Service and adjusted to an Aaa basis. 2 Savings and loan associations, mutual savings banks, and credit Federal Reserve compilations. unions. 11 Average rates on new commitments for conventional first mortgages 3 Quarterly changes calculated from figures shown in Table 1.23. on new homes in primary markets, unweighted and rounded to nearest 4 Seven-day averages of daily effective rates (average of the rates on 5 basis points, from Dept. of Housing and Urban Development. a given date weighted by the volume of transactions at those rates). 12 Unless otherwise noted, rates of change are calculated from average 5 Quoted on a bank-discount rate basis. amounts outstanding in preceding month or quarter. 6 Most representative offering rate quoted by five dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • January 1978 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 Oct. Nov. Dec.f Nov. 16 Nov. 23 Nov. 30 Dec. 14 Dec. 21 p Dec. 28p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding... 113,279 110,650 116,412 110,374 111,085 111,457 113,067 112,574 116,633 121,795 2 U.S. Govt, securities* 98,037 95,421 100,185 94,919 95,565 95,825 97,976 97,416 100,532 103,365 3 Bought outright 97,395 95,170 98,957 94,919 95,414 95,382 97,074 97,416 99,504 100,990 4 Held under repurchase agreement 642 251 1,228 151 443 902 1,028 2,375 5 Federal agency securities 7,389 7,355 7,763 7,329 7,351 7,370 7,364 7,319 7,451 8,578 6 Bought outright 7,329 7,329 7,541 7,329 7,329 7,329 7,329 7,319 7,305 8,013 7 Held under repurchase agreement 60 26 222 22 41 35 146 565 8 Acceptances 91 42 326 26 61 171 270 589 9 Loans 1,319 840 558 534 879 1,079 583 509 528 686 10 Float 3,972 4,660 5,338 5,085 5,255 4,885 4,870 5,193 5,607 6,176 11 Other Federal Reserve assets. . . 2,471 2,332 2,242 2,507 2,009 2,237 2,103 2,137 2,246 2,400 12 Gold stock 11,595 11,595 11,696 11,595 11,595 11,595 11,622 11,718 11,718 11,718 13 Special Drawing Rights certificate account 1,200 1,200 1,208 1,200 1,200 1,200 1,200 1,200 1,200 1,214 14 Treasury currency outstanding. 11,272 11,313 11,356 11,307 11,322 11,324 11,344 11,348 11,359 11,364 ABSORBING RESERVE FUNDS 15 Currency in circulation 98,868 100,741 102,823 100,883 101,034 101,533 101,737 102,556 102,990 103,713 16 Treasury cash holdings 429 415 448 418 410 407 442 403 400 394 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury 6,618 2,399 5,640 1,790 1,757 2,112 4,156 3,210 5,303 9,346 18 Foreign 298 301 298 329 286 313 316 270 280 297 19 Other 2 699 597 658 575 518 713 661 620 620 581 20 Other F.R. liabilities and capital... 3,501 3,522 3,718 3,517 3,658 3,721 3,552 3,408 3,672 4,331 21 Member bank reserves with F.R. Banks 26,933 26,783 27,087 26,963 27,541 26,779 26,368 26,374 27,646 27,431 End-of-month figures Wednesday figures 1977 1977 Nov. Dec.*5 Nov. 16 Nov. 23 Nov. 30 Dec. 14 Dec. 21 p Dec. 28p SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding. .. 109,358 111,862 118,584 107,548 115,992 111,862 114,068 111,761 120,414 124,908 23 U.S. Govt, securities1 94,597 96,477 102,819 89,945 97,687 96,477 98,414 94,557 101,977 105,682 24 Bought outright 94,597 94,438 100,918 89,945 96,627 94,438 97,785 94,557 99,588 101,063 25 Held under repurchase agreement 2,039 1,901 1,060 2,039 629 2,389 4,619 26 Federal agency securities 7,329 7,460 8,455 7,329 7,484 7,460 7,379 7,305 7,551 8,825 27 Bought outright 7,329 7,329 8,004 7,329 7,329 7,329 7,329 7,305 7,305 8,013 28 Held under repurchase agreement 131 451 155 131 50 246 812 29 Acceptances 248 954 182 248 294 469 734 30 Loans 923 926 266 369 2,951 926 588 1,238 1,038 1,909 31 Float 3,945 4,632 3,648 7,856 5,623 4,632 5,179 6,477 7,055 5,355 32 Other Federal Reserve assets 2,564 2,119 2,442 2,049 2,065 2,119 2,213 2,184 2,324 2,403 33 Gold stock 11,595 11,595 11,718 11,595 11,595 11,595 11,658 11,718 11,718 11,718 34 Special Drawing Rights certificate account 1,200 1,200 1,250 1,200 1,200 1,200 1,200 1,200 1,200 1,250 35 Treasury currency outstanding 11,244 11,308 11,382 11,319 11,327 11,308 11,346 11,351 11,360 11,364 ABSORBING RESERVE FUNDS 36 Currency in circulation 98,900 101,856 103,803 101,170 101,489 101,856 102,464 103,039 103,639 104,412 37 Treasury cash holdings 413 397 450 416 409 397 402 400 399 390 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury 6,398 2,562 7,114 1,199 2,018 2,562 4,276 2,744 8,201 7,664 39 Foreign 425 416 379 268 269 416 244 291 285 327 40 Other 2 715 719 1,187 494 599 719 690 704 531 630 41 Other F.R. liabilities and capital. .. 3,704 3,675 3,292 3,776 3,794 3,675 3,324 3,508 3,660 3,902 42 Member bank reserves with F.R. Banks 22,841 26,345 26,709 24,339 31,536 26,345 26,871 25,344 27,978 31,916 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 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1976 1977 Dec. Apr. May June July Aug. Sept. Oct. Nov. Dec.? All member banks Reserves: 1 At F.R. Banks 26,430 26,096 25,970 25,646 26,663 26,373 26,152 26,933 26,783 27,087 2 Currency and coin 8,548 8,368 8,610 8,609 8,622 8,712 8,887 8,820 8,932 9,350 3 Total heldi 35,136 34,613 34,732 34,406 35,391 35,186 35,156 35,860 35,782 36,498 4 Required 34,964 3344,,660022 34,460 34,293 35,043 34,987 34,965 35,521 35,647: 36,297 5 Excess1 172 1111 272 113 348 199 191 339 135 201 Borrowings at F.R. Banks:2 6 Total 62 73 200 262 336 1,071 634 1,319 884400 555588 7 Seasonal 12 14 31 55 60 101 112 114 83 55 Large banks in New York City 8 Reserves held 6,520 6,264 6,310 6,241 6,359 6,272 6,025 6,175 6,181 66,,117788 9 Required 6,602 6,351 6,279 6,188 6,342 6,247 6,022 6,120 6,175 6,280 10 Excess -82 -87 31 53 17 25 3 55 6 -102 11 Borrowings2 15 16 18 36 74 157 75 133 132 48 Large banks in Chicago 12 Reserves held 1,632 1,629 1,637 1,662 1,573 1,653 1,655 1,666 11,,660077 11,,556688 13 Required 1,641 1,634 1,634 1,627 1,606 1,622 1,634 1,656 1,609 1,613 14 Excess -9 -5 3 35 -33 31 21 10 -2 -45 15 Borrowings2 4 * 4 15 6 5 12 24 23 26 Other large banks 16 Reserves held 13,117 13,090 13,067 12,869 13,438 13,290 13,362 13,711 1133,,660077 1133,,886622 17 Required 13,053 13,110 12,996 12,943 13,286 13,270 13,355 13,598 13,602 13,928 18 Excess 64 -20 71 -74 152 20 7 113 5 -66 19 Borrowings2 14 23 62 80 79 530 183 681 355 244 AH other banks 20 Reserves held 13,867 13,630 13,718 13,634 14,021 13,971 14,114 14,308 14,387 1144,,555544 21 Required 13,668 13,507 13,551 13,535 13,809 13,848 13,954 14,147 14,261 14,476 22 Excess 199 123 167 99 212 123 160 161 126 78 23 Borrowings2 29 34 116 131 177 379 364 481 330 240 Weekly averages of daily figures for weeks ending— 1977 Oct. 26 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 P All member banks Reserves: 24 At F.R. Banks 27,026 26,929 26,301 26,963 27,541 26,779 26,368 26,374 27,646 25 Currency and coin 8,406 8,983 9,182 9,191 8,249 9,094 9,254 9,837 8,925 26 Total heldi 35,502 35,981 35,551 36,221 35,856 35,938 35,687 36,275 36,630 27 Required 35,300 35,716 35,396 35,804 35,867 35,500 35,672 35,962 36,429 28 Excess1 202 265 155 417 -11 438 15 313 201 Borrowings at F.R. Banks:2 29 Total 1,444 ,113 887 534 879 1,079 583 509 528 30 Seasonal 116 103 87 83 85 75 65 56 53 Large banks in New York City 31 Reserves held 5,757 6,220 6,260 6,335 6,280 5,956 5,969 6,219 6,384 32 Required 5,777 6,175 6,214 6,314 6,322 5,848 6,087 6,182 6,401 33 Excess -20 45 46 21 -42 108 -118 37 -17 34 Borrowings2 200 60 252 252 37 93 50 Large banks in Chicago 35 Reserves held 1,657 1,669 1,611 1,675 ,575 1,587 1,618 1,646 1,533 36 Required 1,643 1,648 1,624 1,638 ,594 1,570 1,620 1,631 1,574 37 Excess 14 21 -13 37 -19 17 -2 15 -41 38 Borrowings2 15 17 14 13 33 31 9 27 Other large banks 39 Reserves held 13,670 13,668 13,459 13,823 13,578 13,788 13,578 13,957 13,835 40 Required 13,582 13,601 13,478 13,689 13,602 13,638 13,609 13,840 13,985 41 Excess 88 67 -19 134 -24 150 -31 117 -150 42 Borrowings2 586 631 560 168 298 386 287 211 232 All other banks 43 Reserves held 14,418 14,424 14,221 14,388 14,423 14,607 14,522 14,453 14,502 44 Required 14,298 14,292 14,080 14,163 14,349 14,444 14,356 14,309 14,469 45 Excess 120 132 141 225 74 163 166 144 33 46 Borrowings2 643 465 313 293 296 410 250 197 219 1 Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with Board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available. nonmember bank merges into an existing member bank, or when a 2 Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 DomesticN onfinancial Statistics • January 1978 1.13 FEDERAL FUNDS TRANSACTIONS of Money Market Banks Millions of dollars, except as noted 1977, week ending Wednesday— Type Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Total, 46 banks Basic reserve position Excess reserves1 133 64 131 -14 209 8 100 87 128 LESS: Borrowings at F.R. Banks. .. 281 363 48 415 422 106 123 175 251 Net interbank Federal funds transactions 16,416 20,929 20,061 17,766 16,212 19,618 20,864 19,431 16,287 EQUALS: Net surplus, or deficit (-): Amount -16,564 -21,228 -19,978 -18,195 -16,425 -19,716 -20,887 -19,519 -16,411 Per cent of average required reserves 109.1 140.2 129.8 119.6 110.9 130.8 136.2 125.6 106.3 Interbank Federal funds transactions Gross transactions: Purchases 22,719 28,083 27,820 25,552 24,445 28,000 28,734 27,426 25,218 Sales 6,304 7,155 7,760 7,786 8,233 8,382 7,870 7,995 8,930 Two-way transactions2 5,376 6,006 6,422 5,358 5,836 5,921 5,329 5,977 5,528 Net transactions: Purchases of net buying banks... 17,344 22,077 21,398 20,194 18,609 22,079 23,405 21,449 19,689 Sales of net selling banks 928 1,149 1,337 2,428 2,397 2,462 2,540 2,019 3,402 Related transactions with U.S. Govt, securities dealers 11 Loans to dealers 3 r3,698 '4,271 '4,454 '3,833 4,019 3,563 4,684 4,133 3,437 12 Borrowing from dealers4. . . 1,959 rl,625 '1,496 '1,766 1,758 1,568 1,822 1,575 2,185 13 Net loans rl ,740 r2,646 '2,958 '2,068 2,261 1,994 2,863 2,559 1,252 8 banks in New York City Basic reserve position 14 Excess reserves1 50 72 60 -9 91 -35 6 13 16 LESS: Borrowings at F.R. Banks 10 252 252 37 81 50 32 Net interbank Federal funds transactions 5,061 7,566 7,391 7,185 6,004 7,352 9,076 7,147 6,150 EQUALS : Net surplus, or deficit (-): Amount -5,011 -7,494 -7,340 -7,447 -6,165 -7,424 -9,151 -7,185 -6,165 Per cent of average required reserves 89.3 132.2 127.5 130.3 115.5 134.5 163.4 123.4 108.5 Interbank Federal funds transactions Gross transactions: Purchases 5,645 8,536 8,235 7,874 6,806 8,147 9,412 8,052 7,242 Sales 584 970 844 689 803 795 335 905 1,092 Two-way transactions2 584 970 844 689 803 796 335 905 1,092 Net transactions: Purchases of net buying banks.. 5,061 7,566 7,391 7,185 6,004 7,352 9,076 7,147 6,150 Sales of net selling banks Related transactions with U.S. Govt, securities dealers 24 Loans to dealers 3 1,718 2,558 2,734 2,167 1,978 2,122 2,799 2,530 2,085 25 Borrowing from dealers4. . . 1,016 1,173 1,103 1,087 1,076 1,128 1,225 1,095 1,226 26 Net loans 702 1,385 1,631 1,080 902 994 1,573 1,435 859 38 banks outside New York City Basic reserve position 27 Excess reserves1 83 -8 71 -5 119 43 93 74 111 LESS: Borrowings at F.R. Banks... 281 363 38 162 169 70 41 125 219 Net interbank Federal funds transactions 11,355 13,363 12,670 10,581 10,209 12,266 11,788 12,284 10,138 EQUALS : Net surplus, or deficit (-): Amount -11,554 -13,734 -12,638 -10,748 -10,259 -12,292 -11,736 -12,335 -10,246 Per cent of average required reserves 120.7 145.0 131.2 113.2 108.2 128.6 120.5 126.9 105.0 Interbank Federal funds transactions Gross transactions: Purchases 17,075 19,548 19,586 17,678 17,639 19,853 19,322 19,374 17,976 Sales 5,720 6,185 6,916 7,097 7,431 7,587 7,534 7,091 7,838 Two-way transactions2 A,192 5,036 5,578 4,669 5,033 5,125 4,994 5,072 4,436 Net transactions: Purchases of net buying banks.. 12,283 14,511 14,008 13,009 12,606 14,727 14,329 14,302 13,540 Sales of net selling banks 928 1,149 1,337 2,428 2,397 2,462 2,540 2,019 3,402 Related transactions with U.S. Govt, securities dealers 37 Loans to dealers 3 rl,980 '1,713 '1,720 '1,666 2,041 1,441 1,886 1,603 1,352 38 Borrowing from dealers4.... r942 '452 '393 '678 682 441 596 479 959 39 Net loans 1,038 '1,262 '1,327 '988 1,359 1,000 1,289 1,124 393 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds Al 1.13 Continued 1977, week ending Wednesday- Type Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 23 -3 38 -1 16 16 21 2 8 LESS: 41 Borrowings at F.R. Banks 3 20 20 23 73 42 Net interbank Federal funds transactions 5,570 6,777 6,159 5,757 5,968 6,988 6,725 6,193 5,719 EQUALS: Net surplus, or deficit (-): 43 Amount -5,550 -6,780 -6,120 -5,777 -5,972 -6,972 -6,704 -6,214 -5,784 44 Per cent of average required reserves 360.2 447.2 400.4 389.0 408.7 461.9 441.6 424.8 390.5 Interbank Federal funds transactions Gross transactions: 45 Purchases 6,875 7,756 7,783 7,144 7,381 8,165 7,843 7,358 6,7 47 46 Sales 1,305 979 1,624 1,387 1,413 1,178 1,117 1,165 1,028 47 Two-way transactions2 1,280 979 1,607 1,349 1,409 1,175 1,093 1,115 992 Net transactions: 48 Purchases of net buying banks.. 5,595 6,777 6,176 5,795 5,972 6,990 6,749 6,243 5,755 49 Sales of net selling banks 25 17 38 3 3 24 50 36 Related transactions with U.S. Govt, securities dealers 50 Loans to dealers3 378 312 283 268 357 299 455 436 278 51 Borrowing from dealers4 288 13 104 114 121 367 338 476 52 Net loans 90 312 270 164 243 178 88 98 -198 33 other banks Basic reserve position 53 Excess reserves1 60 -5 33 -4 103 27 72 72 103 LESS: 54 Borrowings at F.R. Banks 278 363 38 142 149 70 41 102 146 55 Net interbank Federal funds transactions 5,785 6,586 6,512 4,825 4,241 5,278 5,063 6,090 4,419 EQUALS: Net surplus, or deficit (-): 56 Amount -6,004 -6,954 -6,517 -4,971 -4,287 -5,320 -5,032 -6,121 -4,462 57 Per cent of average required reserves 74.8 87.4 80.4 62.1 53.5 66.1 61.2 74.1 53.9 Interbank Federal funds transactions Gross transactions: 58 Purchases 10,200 11,791 11,803 10,534 10,258 11,688 11,480 12,016 11,229 59 Sales 4,415 5,206 5,292 5,710 6,018 6,410 6,417 5,926 6,810 60 Two-way transactions2 3,512 4,057 3,971 3,320 3,624 3,950 3,901 3,957 3,444 Net transactions: 61 Purchases of net buying banks.. 6,688 7,734 7,832 7,215 6,634 7,737 7,579 8,059 7,785 62 Sales of net selling banks 903 1,149 1,320 2,390 2,393 2,459 2,516 1,969 3,366 Related transactions with U.S. Govt, securities dealers 63 Loans to dealers 3 '1,602 '1,401 '1,437 '1,398 1,684 1,142 1,431 1,168 1,074 64 Borrowing from dealers4 '654 '452 '380 '574 568 320 229 141 483 65 Net loans '948 '950 '1,057 '824 1,116 822 1,201 1,026 591 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 policy clearing banks, reverse repurchase agreements (sales of securities to of the Board of Governors 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 August 1964 BULLETIN, pp. 944-53. Back data for 46 banks appear banks, repurchase agreements (purchases from dealers subject to resale), in the Board's Annual Statistical Digest, 1971-1975, Table 3. or other lending arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • January 1978 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* BBaannkk Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 12/31/77 date rate 12/31/77 date rate 12/31/77 date rate 12/31/77 date rate Boston 6 10/26/77 53/4 61/2 10/26/77 61/4 7 10/26/77 63^ 9 10/26/77 834 New York 6 10/26/77 53/4 61/2 10/26/77 6 V4 7 10/26/77 63/4 9 10/26/77 834 Philadelphia 6 10/26/77 534 61/2 10/26/77 61/4 7 10/26/77 634 9 10/26/77 834 Cleveland 6 10/26/77 5 3/4 6Vi 10/26/77 61/4 7 10/26/77 634 9 10/26/77 834 Richmond 6 10/26/77 53Va 61/2 10/26/77 6V4 7 10/26/77 634 9 10/26/77 83/4 Atlanta 6 10/26/77 53/4 6Vi 10/26/77 6V4 7 10/26/77 634 9 10/26/77 83/4 Chicago 6 10/26/77 53/4 61/2 10/26/77 6V4 7 10/26/77 634 9 10/26/77 834 St. Louis 6 10/26/77 53/4 61/2 10/26/77 61/4 7 10/26/77 63/4 9 10/26/77 834 Minneapolis 6 10/26/77 53/4 6Vi 10/26/77 6V4 7 10/26/77 63/4 9 10/26/77 834 Kansas City 6 10/26/77 53/4 6Vi 10/26/77 61/4 7 10/26/77 634 9 10/26/77 834 Dallas 6 10/26/77 53/4 61/2 10/26/77 61/4 7 10/26/77 634 9 10/26/77 83/4 San Francisco.... 6 10/26/77 53/4 6Vi 10/26/77 61/4 7 10/26/77 63/4 9 10/26/77 83/4 Range of rates in recent years5 Range F.R. Range F.R. Range F.R. Effective date (or level)- Bank Effective date (or level)— Bank Effective date (or level)— Bank 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 51/2 5% 1973—Jan. 15. 5 5 1975—Jan. 6 71/4-73/4 734 Feb. 26. 5-5 Vi 5V4 10 71/4-73/4 714 1971—Jan. 8 51/4 Mar. 2. 5 Vi 5Vi 24 71/4 71/4 15 51/4 5% Apr. 23. 5*4-5% 5Vi Feb. 5 634-714 634 2 1 2 9 5 5 - - 5 51 % /4 5 5 1 /4 May 1 4 1 . . 53/ 5 4 3 - 4 6 2* Mar. 1 7 0 61/ 6 4 3 - 4 6 34 6 6 3 1 4 4 29 5 5 18. 6 6 14 61/4 614 Feb. 13 4%-5 5 June 11. 6-6 Vi 6Vi May 16 6-614 6 19 4'A 43/4 15. 6V4 6Vi 23 6 6 July 16 4%-5 5 July 2, 7 7 2 3 5 5 Aug. 14. 7-7Vi 7V4 1976—Jan. 19 5V4-6 5 V4 Nov. 11 43/4-5 5 23, m 7Vi 23 5Vi 5V4 19 4V4 43/4 Nov. 22 514-51/2 51/4 Dec. 13 4%-4% 43/4 1974—Apr. 25, 7V4-8 26 51/4 51/4 17 41/2-434 4% 30 8 8 2 4 4 Vi 4Vi Dec. 9 73/4-8 IVa 1977—Aug. 30 514-534 51/4 16 m 73/4 31 514-534 534 Sept. 2 534 534 Oct. 26 6 6 In effect Dec. 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 Dec. 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 71/2 2/13/75 2-10 91/2 12/30/76 10 2/13/75 10-100 1134 12/30/76 12 2/13/75 100-400 123^ 12/30/76 13 2/13/75 Over 400 16% 12/30/76 16V4 2/13/75 Time:2,3 Savings 3 3/16/67 3V4 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 4 1 10/30/75 3 3/16/67 Over 5, maturing in— 30-179 days 6 12/12/74 5 10/1/70 180 days to 4 years 421/2 1/8/76 3 12/12/74 4 years or more 4 1 10/30/75 3 12/12/74 Legal limits, Dec. 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) The Board's Regulation M requires a 4 per cent reserve against net Annual Statistical Digest, 1971-1975 and for prior changes, see Board's balances due from domestic banks to their foreign branches and to foreign Annual Report for 1976, Table 13. banks abroad. Effective Dec. 1, 1977, a 1 per cent reserve is required 2 (a) Requirement schedules are graduated, and each deposit interval against deposits that foreign branches of U.S. banks use for lending to applies to that part of the deposits of each bank. Demand deposits U.S. residents. Loans aggregating $100,000 or less to any U.S. resident are subject to reserve requirements are gross demand deposits minus cash excluded from computations, as are total loans of a bank to U.S. residents items in process of collection and demand balances due from domestic if not exceeding $1 million. Regulation D imposes a similar reserve rebanks. quirement on borrowings from foreign banks by domestic offices of a (b) The Federal Reserve Act specifies different ranges of requirements member bank. 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 DomesticN onfinancial Statistics • January 1978 .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 Effective Effective Per cent 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 S M in u g lt l i e p - l m e- a m tu a r t i u ty r ity 7/1/73 / I 4 5 i / 2 9 1 / / 2 2 6 1 / / 6 7 6 0 (8) (8) 90 days to 1 year: 5 6 M Si u ng lt l i e p - l m e- a m tu a r t i u ty ri ty 5V 2 7/1/73 9 7 / / 2 2 6 0 / /6 6 6 6 3 53/4 (6) 5% 1/21/70 7 8 9 i 2 1 y t t 2 o o t 2 o 2 i y / 4 2 e y y a e r e s a a 3 r r s s 3 3 6 6V 2 7 7 / / 1 1 / / 7 7 3 3 5 5 5 1 3 3/ / / 2 4 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 V 1 A /2 ( ( 6 6 ) ) 5 6 6 3 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 1 1 0 1 6 4 y to e a 6 r s y o e r a r m s4 o re4 7 7 1 1 / / 4 2 11/1/73 7 ( 1 9 / ) 4 11/1/73 7731//42 12 1 / 1 2 / 3 1 / / 7 7 4 3 77 (( 11 99)) //22 11/1/73 12/23/74 12 Governmental units (all maturities) 73/4 IVi 11/27/74 734 12/23/74 m 11/27/74 13 Individual retirement accounts and 12/23/74 Keogh (H.R. 10) plans 5 m (8) 73Va 7/6/77 ((88)) 7/6/77 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 2l/i 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 Type of transaction 1974 1975 1976 May June July Aug. Sept. Oct. Nov. U.S. GOVT. SECURITIES Outright transactions (excl. matched salepurchase transactions) Treasury bills: 1 Gross purchases. 11,660 11,562 14,343 681 2,696 118 812 2,005 2 Gross sales 5,830 5,599 8,462 489 1,154 753 176 303 1,877 3 Redemptions 4,550 26,431 2 5,017 400 600 500 317 Others within 1 year:1 Gross purchases 450 3,886 472 89 2,616 Gross sales Exchange, or maturity shift. ,183 -4 792 -1,209 478 238 2,321 320 -45 Redemptions 131 3,549 2,500 1 to 5 years: 8 Gross purchases 797 2 3,284 2 3,202 200 681 9 Gross sales 177 10 Exchange, or maturity shift. -697 3,854 -2,588 -865 -478' -238 -1,664 -320 45 5 to 10 years: 11 Gross purchases 434 1,510 1,048 68 96 12 Gross sales 13 Exchange, or maturity shift. 1,675 -4,697 1,572 ,174 Over 10 years: 14 Gross purchases 196 1,070 642 114 128 15 Gross sales 16 Exchange, or maturity shift. 205 848 225 900 125 All maturities:1 17 Gross purchases. 13,537 221,313 219,707 681 3,167 118 812 5,526 18 Gross sales 5,830 5,599 8,639 489 1,154 753 176 303 1,877 19 Redemptions 4,682 29,980 25,017 400 600 500 317 2,500 Matched sale-purchase transactions 20 Gross sales 64,229 151,205 196,078 28,532 36,258 27,947 45,831 39,552 48,204 21 Gross purchases 62,801 152,132 196,579 27,306 36,449 27,301 46,170 39,694 44,772 Repurchase agreements 22 Gross purchases 71,333 140,311 232,891 29,308 14,748 13,973 4,397 16,700 9,578 23 Gross sales 70,947 139,538 230,355 30,448 11,506 15,719 5,648 15,469 11,889 24 Net change in U.S. Govt, securities 1,984 7,434 9,087 -2,573 4,845 -3,528 -276 6,279 -10,118 FEDERAL AGENCY OBLIGATIONS Outright transactions: 25 Gross purchases 3,087 1,616 891 380 26 Gross sales 27 Redemptions 322 246 169 33 -69 25 Repurchase agreements: 28 Gross purchases 23,204 15,179 10,520 2,164 1,656 1,672 265 ,136 741 29 Gross sales 22,735 15,566 10,360 2,278 1,056 1,938 459 978 1,051 BANKERS ACCEPTANCES 30 Outright transactions, net... 511 163 -545 -45 —15 -24 -15 -4 31 Repurchase agreements, net. 420 -35 410 -729 528 -204 -247 351 -478 32 Net change in total System Account. 6,149 8,539 9,833 -3,461 6,305 -4,020 -801 6,764 -10,910 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 DomesticN onfinancial Statistics • January 1978 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1977 1977 Nov. 30 Dec. 7 Dec. 14 Dec. 21 p Dec. 28p Oct. Nov. Dec.p Consolidated condition statement AASSSSEETTSS 11 GGoolldd cceerrttiiffiiccaattee aaccccoouunntt 11,595 11,658 11,718 11,718 11,718 11,595 11,595 11,718 1,200 1,200 1,200 1,200 1,250 1,200 1,200 1,250 22 SSppeecciiaall DDrraawwiinngg RRiigghhttss cceerrttiiffiiccaattee aaccccoouunntt 33 CCooiinn11 289 291 294 290 281 310 289 282 44 LLooMMaanneessmm:: bbeerr bbaannkk bboorrrroowwiinnggss 926 588 1,238 1,038 1,909 923 926 266 Acceptances: 222444888 222999444 444666999 777333444 222444888 999555444 Federal agency obligations: 8 Bought outright 777,,,333222999 777,,,333222999 7,305 777,,,333000555 888,,,000111333 7,329 777,,,333222999 888,,,000000444 111333111 555000 222444666 888111222 111333111 444555111 U.S. Govt, securities Bought outright: 10 Bills 333666,,,000888111 333999,,,444222888 36,200 444000,,,222333111 444111,,,777000666 36,240 333666,,,000888111 444111,,,555666111 12 Other 13 Notes 444999,,,666111666 444999,,,666iii666 49,616 555000,,,555000999 555000,,,555000999 49,856 444999,,,666111666 5500,,550099 14 Bonds 888,,,777444111 888,,,777444111 8,741 888,,,888444888 888,,,888444888 8,501 888,,,777444111 88,,884488 15 Total2 999444,,,444333888 999777,,,777888555 94,557 999999,,,555888888 111000111,,,000666333 94,597 999444,,,444333888 110000,,991188 222,,,000333999 666222999 222,,,333888999 444,,,666111999 222,,,000333999 11,,990011 17 Total U.S. Govt, securities 999666,,,444777777 999888,,,444111444 9944,,555577 111000111,,,999777777 111000555,,,666888222 9944,,559977 999666,,,444777777 110022,,881199 18 Total loans and securities 111000555,,,111111111 111000666,,,666777555 110033,,110000 111111111,,,000333555 111111777,,,111555000 110022,,884499 111000555,,,111111111 111122,,449944 19 Cash items in process of collection 111111,,,111222333 111111,,,444444555 1133,,228877 111444,,,555000000 111333,,,222222222 88,,551133 111111,,,111000999 99,,445555 20 Bank premises 333888333 333888000 338833 333888444 333777777 338811 333888333 337788 Other assets: 21 Denominated in foreign currencies 111666 111444 1199 111444 111666 1188 111666 1188 22 All other 111,,,777222000 111,,,888222000 11,,778822 111,,,999222666 222,,,000111000 22,,116655 111,,,777222000 22,,004466 23 Total assets 111333111,,,444333777 111333333,,,444888333 113311,,778833 111444111,,,000666777 111444666,,,000222444 112277,,003311 111333111,,,444222333 113377,,664411 LIABILITIES 24 F.R. notes 999111,,,222222999 999111,,,888111222 9922,,338822 999222,,,999666777 999333,,,777111888 8888,,338800 999111,,,222222999 9933,,115533 Deposits: 25 Member bank reserves 222666,,,333444555 222666,,,888777111 2255,,334444 222777,,,999777888 333111,,,999111666 2222,,884411 222666,,,333444555 2266,,770099 26 U.S. Treasury—General account 222,,,555666222 444,,,222777666 22,,774444 888,,,222000111 777,,,666666444 66,,339988 222,,,555666222 77,,111144 27 Foreign 444111666 222444444 229911 222888555 333222777 442255 444111666 337799 28 Other 3 777111999 666999000 770044 555333111 666333000 771155 777111999 11,,118877 29 Total deposits 333000,,,000444222 333222,,,000888111 2299,,008833 333666,,,999999555 444000,,,555333777 3300,,337799 333000,,,000444222 3355,,338899 30 Deferred availability cash items 666,,,444999111 666,,,222666666 66,,881100 777,,,444444555 777,,,888666777 44,,556688 666,,,444777777 55,,880077 111,,,111333000 111,,,111555000 11,,221122 111,,,222333222 111,,,333444111 11,,112277 111,,,111333000 11,,223344 31 Other liabilities and accrued dividends 111222888,,,888999222 111333111,,,333000999 112299,,448877 111333888,,,666333999 111444333,,,444666333 112244,,445544 111222888,,,888777888 113355,,558833 32 Total liabilities CAPITAL ACCOUNTS 111,,,000222555 111,,,000222555 11,,002255 111,,,000222777 111,,,000222777 11,,002222 111,,,000222555 11,,002299 3334 CSuarppitlauls paid in 999888333 999888333 998833 999888333 999888333 998833 999888333 11,,002299 35 Other capital accounts 555333777 111666666 228888 444111888 555555111 557722 555333777 333666 TTToootttaaalll llliiiaaabbbiiillliiitttiiieeesss aaannnddd cccaaapppiiitttaaalll aaaccccccooouuunnntttsss 111333111,,,444333777 111333333,,,444888333 113311,,778833 111444111,,,000666777 111444666,,,000222444 112277,,003311 111333111,,,444222333 137,641 333777 MMMEEEMMMOOO::: MMMaaarrrkkkeeetttaaabbbllleee UUU...SSS... GGGooovvvttt,,, ssseeecccuuurrriiitttiiieeesss hhheeelllddd iiinnn cccuuussstttooodddyyy fffooorrr fffooorrreeeiiigggnnn aaannnddd iiinnntttlll... aaaccccccooouuunnnttt 777444,,,222000888 777555,,,000000666 7755,,885522 777666,,,333333999 777666,,,333444777 6688,,776688 777444,,,222000888 76,055 Federal Reserve note statement 333888 FFF...RRR... nnnooottteeesss ooouuutttssstttaaannndddiiinnnggg (((iiissssssuuueeeddd tttooo BBBaaannnkkk))) 96,398 96,931 97,528 98,190 99,479 94,288 96,398 100,534 CCCooollllllaaattteeerrraaalll hhheeelllddd aaagggaaaiiinnnsssttt nnnooottteeesss ooouuutttssstttaaannndddiiinnnggg::: 333999 GGGooolllddd ccceeerrrtttiiifffiiicccaaattteee aaaccccccooouuunnnttt 11,591 11,654 11,714 11,714 11,713 11,590 11,591 11,714 444000 SSSpppeeeccciiiaaalll DDDrrraaawwwiiinnnggg RRRiiiggghhhtttsss ccceeerrrtttiiifffiiicccaaattteee aaaccccccooouuunnnttt............ 855 855 855 855 873 855 855 880 444111 AAAcccccceeeppptttaaannnccceeesss 42 U.S. Govt, securities 84,795 85,535 86,335 87,485 88,685 83,185 84,795 89,675 43 Total collateral 97,241 98,044 98,904 100,054 101,271 95,630 97,241 102,269 1 Effective Jan. 1, 1977, Federal Reserve notes of other Federal Reserve owned banking institutions voluntarily held with member banks and Banks were merged into the liability account for Federal Reserve notes. redeposited in full with F.R. Banks. 2 Includes securities loaned—fully guaranteed by U.S. Govt, securities pledged with F.R. Banks—and excludes (if any) securities sold and NOTE.—Beginning Jan. 1, 1977, "Operating equipment" was transferred scheduled to be bought back under matched sale-purchase transactions. to "Other assets." 3 Includes certain deposits of domestic nonmember banks and foreign- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks A13 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity 1977 1977 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Oct. 31 Nov. 30 1 Loans 925 588 1,236 1,038 1,909 922 925 2 Within 15 days 895 548 1,206 1,028 1,904 883 895 3 16 days to 90 days. 30 40 30 10 5 39 30 4 91 days to 1 year.. 5 Acceptances 248 294 469 734 248 6 Within 15 days 248 294 469 734 248 7 16 days to 90 days. 8 91 days to 1 year... U.S. Govt, securities 96,477 98,414 94,557 101,977 105,682 94,597 96,477 Within 15 days1 3,950 4,891 2,203 6,363 9,496 4,197 3,950 16 days to 90 days 18,203 20,064 17,842 19,962 18,885 14.222 18,203 91 days to 1 year 30,255 29.390 30,443 30,681 32,330 30,757 30,255 Over 1 year to 5 years.., 26,888 26,888 26,888 27,516 27,516 28,155 26,888 Over 5 years to 10 years. 10,222 10,222 10,222 10,388 10,388 10,547 10,222 Over 10 years 6,959 6,959 6,959 7,067 7,067 6,719 6,959 16 Federal agency obligations., 7,460 7,379 7,305 7,551 8,825 7,329 7,460 17 Within 15 days i 292 149 9 344 910 42 292 18 16 days to 90 days 291 343 503 423 423 379 291 19 91 days to 1 year 836 846 749 740 740 841 836 20 Over 1 year to 5 years. . . 3,726 3,726 3,763 3,763 4,149 3,752 3,726 21 Over 5 years to 10 years. 1,492 1,492 1,469 1,469 1,646 1,492 1,492 22 Over 10 years 823 823 812 812 957 823 823 i 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 July Aug.r Sept.r Oct.r Nov. Debits to demand deposits 2 (seasonally adjusted) 1111 AAAAllllllll ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 22,937.8 25,028.5 29,180.4 34.336.2 35,877.5 36,253.8 36,995.3 36,754.0 2222 MMMMaaaajjjjoooorrrr NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy bbbbaaaannnnkkkkssss.... .... 8,434.8 9,670.7 11,467.2 13,504.9 14,357.1 14,389.1 14,975.5 14,216.3 3333 OOOOtttthhhheeeerrrr bbbbaaaannnnkkkkssss 14,503.0 15,357.8 17,713.2 20.831.3 21,520.4 21,864.7 22,019.8 22,537.7 Debits to savings deposits 3 (not seasonally adjusted) 4444 AAAAllllllll ccccuuuussssttttoooommmmeeeerrrrssss 333344448888....6666 333355556666....7777 333344446666....1111 333366660000....7777 333333335555....6666 5 Business 1 44440000....8888 44445555....8888 44448888....3333 44449999....2222 44445555....9999 6 Others 333300007777....8888 333311110000....8888 222299997777....8888 333311111111....4444 222288889999....7777 Demand deposit turnover 2 (seasonally adjusted) 77777 AAAAAllllllllll cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 99.0 105.3 116.8 128.1 134.2 134.7 134.6 134.5 88888 MMMMMaaaaajjjjjooooorrrrr NNNNNeeeeewwwww YYYYYooooorrrrrkkkkk CCCCCiiiiitttttyyyyy bbbbbaaaaannnnnkkkkksssss..... ..... 321.6 356.9 411.6 479.9 519.4 533.8 534.0 524.4 99999 OOOOOttttthhhhheeeeerrrrr bbbbbaaaaannnnnkkkkksssss 70.6 72.9 79.8 86.8 89.8 90.3 89.2 91.6 Savings deposit turnover 3 (not seasonally adjusted) 1111100000 AAAAAllllllllll cccccuuuuussssstttttooooommmmmeeeeerrrrrsssss 1111....6666 1111....7777 1111....6666 1111....7777 1111....6666 11 Business 1 4444....0000 4444....4444 4444....5555 4444....5555 4444....2222 12 Others 1111....5555 1111....5555 1111....5555 1111....5555 1111....4444 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 negotiable orders of withdrawal (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 • January 1978 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1977 1973 1974 1975 1976 Dec. Dec. Dec. Dec. Item June July Aug. Sept. Oct. Nov. Seasonally adjusted MEASURES i 1 M-l 270.5 283.1 294.8 312.4 321.9 326.8 328.4 330.4 333.7 333.2 2 M-2 571.4 612.4 664.3 740.3 772.8 783.5 787.7 792.9 799.6 802.6 3 M-3 919.6 981.5 1.092.6 1,237.1 1,299.5 1,316.9 1,329.5 1,343.1 rl,357.1 1,365.3 4 M-4 634.4 701.4 746.5 803.5 836.8 846.3 850.9 856.2 865.9 873.5 5 M-5 982.5 1,070.5 1.174.7 1,300.3 1,363.5 1,379.8 1,392.7 1,406.3 rl,423.5 1,436.2 COMPONENTS 6 Currency 61.5 67.8 73.7 80.5 84.0 85.1 85.5 86.4 87.1 87.8 Commercial bank deposits: 7 Demand 209.0 215.3 221.0 231.9 238.0 241.7 242.9 244.0 246.6 245.5 9 8 Tim N e e g a o n t d i a s b a l v e i n C gs D 's2 36 6 3 3 .9 .0 41 8 8 9 .3 .0 45 8 1 2 . . 7 1 49 6 1 3 .1 .3 51 6 4 3 .8 .9 51 6 9 2 .5 .8 52 6 2 3 .5 .2 52 6 5 3 .8 .2 53 6 2 6 .2 .4 54 7 0 0 . . 3 9 10 Other 300.9 329.3 369.6 All .9 450.9 456.7 459.3 462.6 465.9 469.4 11 Nonbank thrift institutions 3 348.1 369.1 428.3 496.8 526.7 533.5 541.7 550.2 r557.5 562.7 Not seasonally adjusted MEASURES i 12 M-l 278.3 291.3 303.2 321.3 321.4 327.2 325.2 328.2 332.5 335.3 13 M-2 576.5 617.5 669.3 745.3 774.5 784.0 784.4 788.9 796.4 799.9 1 1 1 4 5 6 M M M - - - 5 3 4 9 6 9 8 4 2 5 0 1 . . . 8 5 8 1,0 7 9 7 0 8 4 8 3 . . . 3 0 8 1 1 , , 1 0 7 7 9 5 7 4 2 . . . 7 3 8 1 1 , , 3 2 8 0 3 0 2 7 9 . . . 1 5 9 1 1, , 3 3 8 6 0 3 8 7 5 . . . 7 5 7 1 1 , , 3 3 8 8 2 4 2 4 6 . . . 1 9 8 1 1 , , 3 3 8 9 2 4 1 6 8 . . . 1 6 8 1 1 , , 4 3 8 0 3 5 2 7 4 . . . 6 1 3 1 1 , , 4 3 8 1 5 6 9 0 4 . . . 0 7 6 1 1 , , 4 3 8 2 5 7 8 7 1 . . . 9 5 3 COMPONENTS 17 C C o u m rr m en e c r y c ial bank deposits: 62.7 69.0 75.1 82.0 84.2 85.7 85.8 86.1 86.9 88.4 2 2 2 2 1 1 0 1 2 3 9 8 D Ti e m D N O M m e o e t a e h g m n m a e d o n r e b t d s i e a t r i b s c a l e v n in o C g n D s m 's e 2 m ber 3 2 2 1 6 1 5 6 9 5 2 5 6 4 8 6 . . . 2 7 . . . 3 2 0 5 4 2 3 1 1 2 5 9 2 5 6 2 8 0 9 6 . . . 7 . 2 . . 5 5 7 3 4 2 3 1 4 2 6 8 6 6 9 8 2 3 6 2 . . 6 . 1 . . . 6 5 1 2 4 2 4 1 8 3 6 6 2 6 8 9 7 4 3 8 . . 2 . 3 . . . 3 9 3 5 4 2 5 1 3 1 6 5 6 6 7 6 8 3 3 5 . . . 1 1 . . . 3 2 0 1 5 4 2 1 1 4 6 6 5 6 9 1 9 2 6 7 . . . 6 . 4 . . 5 8 9 7 5 4 2 1 2 3 6 6 5 6 3 9 4 9 9 6 . . . 7 . 3 . . 5 1 2 3 2 4 5 1 4 2 7 6 6 6 2 6 0 5 0 7 . . 1 1 . . . . 4 7 4 5 2 5 4 1 4 3 1 6 6 1 5 2 8 1 3 0 . . . 6 . 2 . 3 . 3 8 0 2 5 4 1 4 3 7 7 6 7 6 6 1 2 4 0 . . 9 2 . . . . 6 4 6 2 2 2 4 5 N U o .S n . b G an o k v t, t h d r e if p t o i s n i s ts t it ( u a t l i l o c n o s m 3 mercial 345.3 366.3 424.9 492.6 531.1 538.1 542.3 548.2 554.3 557.4 banks) 6.3 4.9 4.1 4.7 5.2 3.9 3.7 5.4 4.1 3.8 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" in the March 1977 BULLETIN, pp. process of collection and F.R. float; (2) foreign demand balances at F.R. 305 and 306. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of commercial banks. Latest monthly and weekly figures are available from the Board's H.6 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. a m s e 3 o r c f R i M a e l c a l a a r n . s d s 3 i 1 f i i , n c d a 1 u t 9 i s 7 o t 6 n r . i a o l f lo lo a a n n s s " w re e d r u e c r e e d d u t c h e e d s e by lo a a n b s o u b t y $1 a 0 b 0 o u m t i $ ll 1 io .2 n . billion by 5 $ 3 A 0 s 0 o m f i D lli e o c n . a 3 s 1 , t h 1 e 9 7 re 7 s , u c lt o m of m l e o r a c n i al r e a c n la d s s i i n fi d c u a s t t i r o i n a s l l a o t a n o s n e w l e a r r e g e re b d a u n c k e . d 4 Data beginning June 30, 1974, include one large mutual savings NOTE.—Data are for last Wednesday of month except for June 30 bank that merged with a nonmember commercial bank. As of that date and Dec. 31; data are partly or wholly estimated except when June 30 there were increases of about $500 million in loans, $100 million in and Dec. 31 are call dates. 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. May June July Aug. Sept. Oct. Nov. Seasonally adjusted 34.94 36.60 34.73 34.95 34.72 34.86 35.35 35.64 35.63 35.90 36.01 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd 33.64 35.87 34.60 34.90 34.52 34.60 35.03 34.58 35.00 34.59 35.15 3333 RRRReeeeqqqquuuuiiiirrrreeeedddd 34.64 36.34 34.47 34.68 34.51 34.71 35.08 35.44 35.42 35.69 35.76 4444 DDDDeeeeppppoooossssiiiittttssss ssssuuuubbbbjjjjeeeecccctttt ttttoooo rrrreeeesssseeeerrrrvvvveeee rrrreeeeqqqquuuuiiiirrrreeeemmmmeeeennnnttttssss 2222 442.3 486.2 505.4 529.6 537.6 544.5 547.7 551.4 552.9 559.4 564,6 5555 TTTTiiiimmmmeeee aaaannnndddd ssssaaaavvvviiiinnnnggggssss 279.2 322.1 337.9 355.0 363.1 367.0 369.2 370.8 372.4 377.1 383.5 DDDDeeeemmmmaaaannnndddd:::: 6666 PPPPrrrriiiivvvvaaaatttteeee 158.1 160.6 164.5 171.4 172.3 173.8 175.8 177.0 176.9 179.0 177.6 7777 UUUU....SSSS.... GGGGoooovvvvtttt 5.0 3.5 3.0 3.2 2.1 3.7 2.8 3.6 3.7 3.3 3.5 Not seasonally adjusted 8888 DDDDeeeeppppoooossssiiiittttssss ssssuuuubbbbjjjjeeeecccctttt ttttoooo rrrreeeesssseeeerrrrvvvveeee rrrreeeeqqqquuuuiiiirrrreeeemmmmeeeennnnttttssss 2222 447.5 491.8 510.9 534.8 535.8 544.5 547.6 548.3 552.1 558.2 562.1 9999 TTTTiiiimmmmeeee aaaannnndddd ssssaaaavvvviiiinnnnggggssss 278.5 321.7 337.2 353.6 364.7 367.8 369.5 371.7 373.0 377.5 380.7 DDDDeeeemmmmaaaannnndddd:::: 11110000 PPPPrrrriiiivvvvaaaatttteeee 164.0 166.6 170.7 177.9 168.5 173.0 175.6 174.1 175.2 178.0 178.7 11111111 UUUU....SSSS.... GGGGoooovvvvtttt 5.0 3.4 3.1 3.3 2.5 3.7 2.6 2.5 3.8 2.7 2.6 i 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 July 27 Aug. 31 Sept. 28 Oct. 26 Nov. 30 Dec. 31 V V V V V V Seasonally adjusted 1 Loans and investments1 633.4 690.4 721.1 784.4 837.0 845.6 848.4 857.9 866.1 865.4 2 Including loans sold outright2 637.7 695.2 725.5 788.2 841.1 849.7 852.4 862.0 870.5 870.0 Loans: 3 Total 449.0 500.2 496.9 538.9 579.0 587.0 592.2 602.5 611.2 612.9 4 Including loans sold outright2 453.3 505.0 501.3 542.7 583.1 591.1 596.2 606.6 615.6 617.5 5 Commercial and industrial 3,5 156.4 183.3 176.0 179.5 192.4 194.6 195.1 199.3 201.6 202.2 6 Including loans sold outright 2,3} 5 159.0 186.0 178.5 181.9 195.2 197.4 197.9 202.2 204.7 205.5 Investments: 7 U.S. Treasury 54.5 50.4 79.4 97.3 103.6 103.1 100.1 97.8 95.0 93.5 8 Other 129.9 139.8 144.8 148.2 154.4 155.5 156.1 157.6 159.9 159.0 Not seasonally adjusted 9 Loans and investments1 647.3 705.6 737.0 801.6 834.2 842.8 848.4 856.1 866.4 884.5 10 Including loans sold outright 651.6 710f 4 741.4 805.4 838.3 846.9 852.4 860.2 870.8 889.1 Loans: 11 Total1 458.5 510.7 507.4 550.2 579.9 588.2 594.0 601.3 610.1 625.7 12 Including loans sold outright2 462.8 515.5 511.8 554.0 584.0 592.3 598.0 605.4 614.6 630.3 13 Commercial and industrial 3,5 159.4 186.8 179.3 182.9 192.4 193.6 195.5 198.6 200.8 206.0 14 Including loans sold outright 2,355 162.0 189.5 181.8 185.3 195.2 196.4 198.3 201.5 203.9 209.3 Investments : 15 U.S. Treasury 58.3 54.5 84.1 102.5 100.0 99.4 98.5 97.7 97.9 98.9 16 Other 130.6 140.5 145.5 148.9 154.3 155.2 155.9 157.1 158.4 159.8 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • January 1978 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1976 19773 Account Dec. 3 Mar. Apr. May June JulyP Aug.f Sept.f Oct.? Nov.p Dec.? All commercial ! Loans and investments 846.4 844.6 852.2 860.4 877.5 875.0 886.8 891.4 897.7 915.0 931.6 2 Loans, gross 594.9 590.9 595.8 604.6 621.9 620.7 632.2 637.1 642.9 658.7 673.4 Investments: 3 U.S. Treasury securities. .. 102.5 105.0 103.4 102.4 101.6 100.0 99.4 98.5 97.7 97.8 98.9 4 Other 148.9 148.7 153.0 153.4 154.1 154.3 155.2 155.9 157.1 158.4 159.3 5 Cash assets 136.1 123.6 123.6 120.6 139.1 126.9 135.5 128.7 129.4 138.8C 150.1 6 Currency and coin 12.1 13.0 13.4 13.1 12.7 13.5 13.7 13.9 13.9 14.7 15.8 7 Reserves with F.R. Banks... 26.1 26.9 28.2 24.0 25.5 27.2 28.2 30.0 28.3 26.3 32.1 8 Balances with banks 49.6 42.6 41.0 42.4 47.4 42.4 45.3 42.7 44.4 46.8 48.8 9 Cash items in process of collection.. 48.4 41.1 41.0 41.0 53.4 43.9 48.3 42.1 42.8 51.0 53.5 10 Total assets/total liabilities and capital1 1,030.7 1,023.7 1,032.3 1,036.2 1,074.2 1,059.3 1,079.7 1,076.7 1,083.9 1,117.5 1,145.4 11 Deposits 838.2 820.5 823.7 824.4 861.9 843.2 857.6 852.1 858.8 883.5 908.5 Demand: 12 Interbank 45.4 38.0 34.2 35.7 46.5 38.2 39.6 37.1 37.5 41.8 43.7 13 U.S. Govt 3.0 3.1 7.4 3.6 2.8 3.8 2.5 8.0 3.6 4.7 7.2 14 Other 288.4 264.0 269.1 264.3 288.1 273.9 285.1 272.5 279.4 293.2 307.0 Time: 15 Interbank 9.2 8.9 8.6 8.5 8.9 8.3 8.0 8.3 8.5 9.0 9.6 16 Other 492.2 506.6 504.4 512.3 515.6 519.0 522.6 526.1 529.9 534.8 541.1 17 Borrowings 80.2 85.4 89.4 89.0 88.2 92.2 94.8 96.5 96.8 101.0 107.1 18 Total capital accounts2 78.1 77.3 77.7 78.2 81.8 79.0C 79.6 80.1 80.5 81.4 81.6 19 MEMO: Number of banks 14,671 14,685 14,690 14,695 14,718 14,709 14,713 14,724 14,718 14,718 14,718 Member 20 Loans and investments 620.5 611.7 614.7 620.1 632.8 628.9 637.9 640.8 645.2 658.6 670.8 21 Loans, gross: 442.9 434.5 435.9 441.5 453.4 451.3 459.9 463.0 467.1 479.0 489.9 Investments: 22 U.S. Treasury securities. .. 74.6 74.9 73.0 72.6 72.6 70.8 70.5 69.6 68.9 69.2 69.9 23 Other 103.1 102.2 105.8 106.0 106.7 106.8 107.5 108.3 109.3 110.3 111.1 24 Cash assets, total 108.9 100.0 99.4 95.7 110.6 101.2 108.6 103.1 102.3 110.6 121.7 25 Currency and coin 9.1 9.6 9.9 9.7 9.3 9.9 10.0 10.2 10.2 10.8 11.7 26 Reserves with F.R. Banks. . . 26.0 26.9 28.2 24.0 25.6 27.2 28.2 30.0 28.3 26.3 32.1 27 Balances with banks 27.4 24.0 21.9 22.6 24.4 22.0 24.0 22.5 22.8 24.7 26.6 28 Cash items in process of collection.. 46.5 39.5 39.4 39.3 51.3 42.1 46.4 40.4 41.0 48.9 51.3 29 Total assets/total liabilities and capital 1 772.9 759.7 762.7 763.9 795.2 780.1 796.3 793.2 796.5 823.9 884477..00 30 Deposits 618.7 598.0 597.7 597.4 628.7 611.0 622.2 617.0 620.9 641.8 660.8 Demand: 31 Interbank 42.4 35.3 31.6 32.9 43.4 35.3 36.6 34.3 34.6 38.7 40.4 32 U.S. Govt 2.1 2.1 5.9 2.7 2.0 2.8 1.7 6.4 2.6 3.6 5.3 33 Other 215.5 195.8 198.9 195.1 213.9 202.2 211.0 200.3 205.3 216.4 226.3 Time: 34 Interbank 7.2 6.9 6.6 6.5 6.9 6.3 6.0 6.3 6.5 6.8 7.4 35 Other 351.5 357.8 354.7 360.3 362.5 364.4 366.9 369.6 372.0 376.2 381.4 36 Borrowings 71.7 75.3 78.1 77.5 77.0 80.4 82.5 84.0 83.8 87.8 93.4 37 Total capital accounts2 58.6 58.1 58.3 58.7 60.8 59.4 59.9 60.2 60.6 61.2 61.4 38 MEMO: Number of banks 5,759 5,739 5,726 5,708 5,721 5,701 5,676 5,692 5,686 5,686 5,680 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 1977 1975 1976 1977 Account Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Total insured National (all insured) 1 Loans and investments, gross 776622,,440000 773,701 827,692 854,736 441,135 444433,,995599 447766,,660022 448888,,224400 Loans: 2 3 G N r e o t ss 53 (( 522, )) 1 70 5 53 2 9 0 , , 0 9 2 7 1 6 5 5 7 6 8 0 , , 7 06 1 2 0 6 5 0 8 1 1 , , 1 1 4 6 1 3 31 (( 522, )) 7 38 33 31 00 5 55 , ,, 6 22 2 88 8 00 33 3 22 4 99 0, ,, 6 99 7 66 9 88 3 3 3 5 9 1 , ,3 9 1 5 1 5 Investments: 4 U.S. Treasury securities 83,629 90,947 101,463 100,566 46,799 49,688 55,729 53,346 5 Other 143,602 143,731 147,517 153,029 78,598 78,642 80,193 83,582 6 Cash assets 128,256 124,072 129,581 130,724 78,026 75,488 76,074 74,641 7 Total assets/total liabilities1 944,654 942,519 1,004,001 1,040,952 553,285 548,702 583,315 599,743 8 777755,,220099 776,957 882255,,001100 847,373 444477,,559900 444444,,225511 469,378 447766,,338811 Demand: 9 U.S. Govt 3,108 4,622 3,020 2,817 1,788 2,858 1,674 1,632 10 Interbank 40,259 37,502 44,068 44.965 22,305 20,329 23,148 22,876 11 Other 227766,,338844 226655,,667711 285,201 284,544 115599,,884400 152,383 163,347 161,358 Time: 12 Interbank 10,733 9,406 8,249 7,721 7,302 5,532 4,909 4,599 13 Other 444,725 459,753 484,470 507.323 256,355 263,147 276,298 285,915 14 Borrowings 56,775 63,828 75,302 81,157 40,875 45,187 54,420 57,283 15 Total capital accounts 68,474 68,988 72,065 75,503 38,969 39,501 41,323 43,142 16 MEMO: Number of banks 14,372 14,373 14,397 14,425 4,741 4,747 4,735 4,701 State member (all insured) Insured nonmember 17 Loans and investments, gross 113377,,662200 113366,,991155 114444,,000000 114444,,559977 118833,,664455 119922,,882255 220077,,008899 221,898 Loans: 1 1 9 8 N G e ro t ss 10 (( 022, )) 8 23 9 9 6 8, , 8 0 8 3 9 7 1 9 0 9 2 ; . 4 2 7 7 4 7 1 9 0 9 2 , , 2 1 0 4 0 4 11 (( 822, )) 6 09 11 1 11 2 99 4 ,, , 66 5 55 0 88 3 1 1 3 3 0 5 , , 6 7 1 5 8 3 1 1 4 4 2 7 , , 0 68 0 5 8 Investments: 20 U.S. Treasury securities 14,720 16,323 18,849 19,296 22,109 24,934 26,884 27,923 21 Other 22,077 21,702 22,873 23,157 42,927 43,387 44,450 46,288 22 Cash assets 30,451 30,422 32,859 35,918 19,778 18,161 20,647 20,164 23 180,495 179,649 189,578 195,455 210,874 214,167 231,106 245,753 24 114433,,440099 114422,,006611 114499,,449911 115522,,447711 118844,,221100 119900,,664444 206,140 221188,,551199 Demand: 25 U.S. Govt 467 869 429 371 853 894 917 813 26 Interbank 16,265 15,833 19,295 20,568 1,689 1,339 1,624 1,520 27 Other 5500,,998844 49,659 52,204 52,571 6655,,556600 63,629 69,649 70,615 Time: 28 Interbank 2,712 3,074 2,384 2,134 719 799 956 988 29 Other 72,981 72,624 75,178 76,826 115,389 123,980 132,993 144,581 30 12,771 15,300 17,310 19,718 3,128 3,339 3,571 4,155 31 13,105 12,791 13,199 13,441 16,400 16,696 17,543 18,919 32 1,046 1,029 1,023 1,019 8,585 8,597 8,639 8,705 Noninsured nonmember Total nonmember 33 Loans and investments, gross 1133,,667744 1155,,990055 1188,,881199 2222,,994400 119977,,331199 220088,,773300 222255,,990099 224444,,883399 Loans: 3 3 5 4 N G e ro t ss 1 (( 122, )) 2 83 1 1 3 3 , , 0 20 9 9 2 1 1 6 6 , , 2 3 0 3 9 6 22 2 00 0 ,, , 66 8 77 6 99 5 12 (( 922, )) 8 92 11 1 33 3 22 7 ,, , 77 7 55 1 11 2 1 1 4 5 6 2 , , 8 0 2 9 8 0 1 16 6 8 2 , , 5 6 5 8 1 7 Investments: 36 U.S. Treasury securities 490 472 1,054 993 22,599 25,407 27,939 28,917 37 Other 1,902 2,223 1,428 1,081 44,829 45,610 45,879 47,370 38 Cash assets 5,359 4,362 6,496 8,330 25,137 22,524 27,144 28,494 39 Total assets/total liabilities 20,544 21,271 26,790 33,390 231,418 235,439 257,897 279,143 40 1111,,332233 1111,,773355 1133,,332255 1144,,665588 119955,,553333 220022,,338800 221199,,446666 223333,,117777 Demand: 41 U.S. Govt 6 4 4 8 859 899 921 822 42 1,552 1,006 1,277 1,504 3,241 2,346 2,901 3,025 43 Other 22,,330088 22,,555555 3,236 33,,558888 6677,,886688 66,184 7722,,888855 74,203 Time: 44 Interbank 1,291 1,292 1,041 1,164 2,010 2,092 1,997 2,152 45 Other 6,167 6,876 7,766 8,392 121,556 130,857 140,760 152,974 46 Borrowings 3,449 3,372 4,842 7,056 6,577 6,711 8,413 11,212 47 Total capital accounts 651 663 818 893 17,051 17,359 18,361 19,813 48 MEMO: Number of banks 261 270 275 293 8,846 8,867 8,914 8,998 1 Includes items not shown separately. For Note see Table 1.24. 2 Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • January 1978 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, June 30, 1977 Asset and liability items are shown in millions of dollars. Member banks1 All Insured Asset account commercial commercial Large banks banks banks Total All other 2 New York City of Other City Chicago large 1 Cash bank balances, items in process 139,055 130,725 110,560 32,752 4,674 39,078 34,056 2 Currency and coin 12,729 12,718 9,347 895 171 3,073 5,209 3 Reserves with F.R. Banks 25,536 25,536 25,536 4,452 1,997 9,261 9,826 4 Demand balances with banks in United States. 36,269 30,589 18,153 6,669 179 3,341 7,964 5 Other balances with banks in United States 6,128 4,840 2,813 27 17 1,028 1,740 6 Balances with banks in foreign countries 5,018 3,800 3,393 335 157 1,875 1,026 7 Cash items in process of collection 53,375 53,242 51,318 20,374 2,153 20,500 8,291 8 Total securities held—Book value 254,052 252,016 178,050 22,989 8,520 56,518 90,023 9 U.S. Treasury 101,560 100,566 72,642 12,098 3,898 23,810 32,837 10 Other U.S. Govt, agencies 35,827 35,250 21,846 1,406 477 5,676 14,287 11 States and political subdivisions.. 110,106 109,875 79,216 9,032 3,943 25,822 40,419 12 All other securities 6,452 6,224 4,273 454 202 1,186 2,432 13 Unclassified total 108 101 73 25 48 14 Trading-account securities 7,055 7,049 6,916 3,572 617 2,465 262 15 U.S. Treasury 3,797 3,797 3,725 2,347 412 811 90 16 Other U.S. Govt, agencies 953 953 952 479 38 410 25 17 States and political subdivisions 1,764 1,764 1,733 561 123 951 98 18 All other trading acct. securities 433 433 432 185 44 202 2 19 Unclassified 108 101 73 25 48 20 Bank investment portfolios 246,998 244,967 171,135 19,417 7,903 54,053 89,761 21 U.S. Treasury 91,162 96,769 68,917 9,751 3,486 22,933 32,747 22 Other U.S. Govt, agencies 34,874 34,297 20,894 927 439 5,266 14,263 23 States and political subdivisions 108,342 108,110 77,483 8,471 3,821 24,870 40,321 24 All other portfolio securities 6,020 5,791 3,841 269 158 984 2,430 25 F.R. stock and corporate stock 1,618 1,580 1,332 287 100 499 446 26 Federal funds sold and securities resale agreement.. 44,318 40,759 32,986 2,962 1,431 18,636 9,958 27 Commercial banks 37,469 34,098 26,504 1,509 1,255 14,502 9,239 28 Brokers and dealers 4,342 4,304 4,219 735 137 2,728 618 29 Others 2,507 2,358 2,264 718 40 1,406 101 30 Other loans, gross 577,689 560,382 420,469 71,053 21,812 156,134 171,469 31 LESS: Unearned income on loans 13,610 13,558 9,182 579 85 2,980 5,538 32 Reserves for loan loss 6,553 6,420 5,119 1,213 324 1,866 1,716 33 Other loans, net 557,525 540,405 406,169 69,261 21,403 151,289 164,216 Other loans, gross, by category 34 Real estate loans 161,276 161,047 111,520 9,218 2,017 40,619 59,666 35 Construction and land development 18,405 18,392 14,135 2,412 437 6,761 4.525 36 Secured by farmland 7,358 7,341 3,129 18 9 302 2,800 37 Secured by residential 91,349 91,214 64,398 4,466 1,016 23,733 35,182 38 1- to 4-family residences 86,839 86,709 61,150 4,045 920 22,541 33,644 39 FHA-insured or VA-guaranteed 7,786 7,738 6,710 582 46 3,557 2.526 40 Conventional 79,053 78,971 54,440 3,463 874 18,984 31,118 41 Multifamily residences 4,511 4,505 3,248 422 96 1,192 1,539 42 FHA-insured 353 352 281 108 16 81 16 43 Conventional 4,158 4,153 2,967 314 80 1,110 1,463 44 Secured by other properties 44,164 44,100 29,858 2,322 555 9,823 17,158 45 Loans to financial institutions 40,151 33,371 31,419 10,625 4,179 13,592 3,024 46 To REIT's and mortgage companies 9,247 9,234 8,819 2,870 1,128 4,196 684 47 To domestic commercial banks 4,573 2,470 1,911 497 116 1,008 290 48 To banks in foreign countries 10,383 6,165 6,014 2,624 284 2,501 605 49 To other depository institutions 1,257 1,241 1,126 73 27 822 204 50 To other financial institutions 14,691 14,261 13,490 4,561 2,624 5,065 1,240 51 Loans to security brokers and dealers 10,436 10,180 9,943 5,664 1,303 2,734 241 52 Other loans to purch./carry securities 4,142 4,135 3,425 374 353 1,760 939 53 Loans to farmers—except real estate 25,642 25,620 14,157 153 126 3,385 10,493 54 Commercial and industrial loans 192,715 183,767 149,361 36,383 10,819 57,632 44,527 55 Loans to individuals 127,701 127,590 88,149 6,083 1,860 30,887 49,319 56 Instalment loans 101,424 101,355 69,803 4,481 1,110 24,797 39,415 57 Passenger automobiles 44,707 44,694 28,632 845 142 8,342 19,303 58 Residential-repair/modernize 6,640 6,639 4,447 291 55 1,586 2,516 59 Credit cards and related plans 14,936 14,929 13,098 1,769 731 7,156 3,441 60 Charge-account credit cards 11,576 11,576 10,330 1,186 695 5,810 2,639 61 Check and revolving credit plans 3,360 3,353 2,768 584 36 1,346 803 62 Other retail consumer goods 16,601 16,598 11,307 354 64 4,040 6,849 63 Mobile homes 8,836 8,836 6,224 184 26 2,233 3,781 64 Other 7,765 7,762 5,082 170 38 1,807 3,068 65 Other instalment loans 18,539 18,496 12,319 1,221 118 3,674 7,306 66 Single-payment loans to individuals 26,277 26,235 18,346 1,603 750 6,090 9,904 67 All other loans 15,624 14,672 12,495 2,553 1,156 5,526 3,260 68 Total loans and securities, net 857,514 834,759 618,538 95,499 31,455 226,941 264,642 69 Direct lease financing 5,169 5,168 4,845 879 131 3,003 832 70 Fixed assets—Buildings, furniture, real estate.... 20,360 20,258 15,100 2,071 689 5,867 6,473 71 Investment in unconsolidated subsidiaries 2,634 2,591 2,555 1,193 212 1,062 88 72 Customer acceptances outstanding 12,749 11,882 11,457 5,692 749 4,710 306 73 Other assets 36,862 35,568 32,144 13,709 1,362 12,718 4,355 74 Total assets 1,074,343 1,040,952 795,199 151,796 39,272 293,378 310,752 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks1 All Insured Non- Liability or capital account commercial commercial Large banks member banks banks banks1 Total All other2 New York City of Other City Chicago large 75 Demand deposits 337,428 332,327 259,378 64,350 10,338 90,634 94,056 78,051 76 Mutual savings banks 1,621 1,443 1,257 684 2 270 301 364 77 Other individuals, partnerships, and corporations 252,889 251,580 189,126 32,633 7,349 71,011 78,134 63,763 78 U.S. Govt 2,826 2,817 2,004 136 31 710 1,126 822 79 States and political subdivisions 17,825 17,752 12,328 636 173 3,794 7,725 5,497 80 Foreign governments, central banks, etc 1,908 1,454 1,382 1,115 17 225 25 527 81 Commercial banks in United States 37,537 36,909 35,716 19,236 2,289 10,522 3,670 1,821 82 Banks in foreign countries 7,311 6.613 6,471 5,157 159 1,021 134 840 83 Certified and officers' checks, etc 15,511 13,759 11,094 4,754 318 3,081 2,941 4,417 84 Time deposits 308,831 229999,,884400 217,098 32,405 12,921 74,985 96,787 91,733 85 Accumulated for personal loan payments 134 113344 108 10 98 26 86 Mutual savings banks 363 334466 332 136 67 100 30 30 87 Other individuals, partnerships, and corporations 242,952 237,078 170,322 24,043 9,454 57,628 79,197 72,630 88 U.S. Govt 752 752 602 68 46 272 216 150 89 States and political subdivisions 46,541 46,212 31,715 1,372 981 13,134 16,230 14,826 90 Foreign governments, central banks, etc 9,590 7,967 7,635 4,254 1,520 1,797 65 1,955 91 Commercial banks in United States 6,358 5,770 4,934 1,694 736 1,774 730 1,423 92 Banks in foreign countries 2,142 1,582 1,449 838 118 270 223 693 93 Savings deposits 221155,,777722 215,206 152,378 11,746 3,145 56,133 81,353 63,394 94 Individuals and nonprofit organizations 220000,,224400 199,697 141,252 10,714 2,880 52.234 75,425 58,988 95 Corporations and other profit organizations., 1100,,007722 10,056 7,289 603 219 3,076 3,391 2,783 96 U.S. Government 6611 61 52 4 25 24 9 97 States and political subdivisions 55,,333311 5,325 3,725 394 46 782 2,504 1,606 98 Allother 6677 67 60 32 17 9 7 99 Total deposits 862,031 847,373 628,853 108,501 26,405 221,751 272,196 233,178 100 Federal funds purchased and securities sold under agreements to repurchase 79,167 75,397 71,547 17,045 8,277 36,363 9,862 7,620 101 Commercial banks 42,487 39,624 37,861 7,203 5,437 20,513 4,707 4,626 102 Brokers and dealers 9,397 9,374 8,979 1,639 1,454 4,973 914 418 103 Others 27,283 26,399 24,707 8,203 1,386 10,877 4,241 2,576 104 Other liabilities for borrowed money 9,047 5,761 5,455 1,914 45 3,030 467 3,592 105 Mortgage indebtedness 807 804 572 57 16 297 201 235 106 Bank acceptances outstanding 13,407 12,536 12,111 6,337 750 4,717 307 1,296 107 Other liabilities 28,093 18,248 15,854 5,256 1,000 6,256 3,342 12,239 108 Total liabilities 992,552 960,118 734,392 139,110 36,493 272,415 286,374 258,160 109 Subordinated notes and debentures 5,393 5,330 4,223 1,118 82 1,881 1,142 1,170 110 Equity capital 76,397 75,503 56,584 11,568 2,698 19,082 23,236 19,813 111 Preferred stock 77 71 28 2 26 48 112 Common stock 16,719 16,623 12,084 2,496 570 3,850 5,167 4,635 113 Surplus 30,211 29,728 21,794 4,290 1,298 7,839 8,367 8,418 114 Undivided profits 27,608 27,365 21,492 4,744 776 6,994 8,978 6,116 115 Other capital reserves 1,782 1,717 1,187 38 53 396 699 595 116 Total liabilities and equity capital 1,074,343 1,040,952 795,199 151,796 39,272 293,378 310,752 279,144 MEMO ITEMS: 117 Demand deposits adjusted 3 243,690 239,359 170,340 24,604 5,866 58,901 80,969 73,350 Average for last 15 or 30 days: 118 Cash and due from bank 132,469 126,370 107,671 29,887 4,764 40,094 32,927 24,798 119 Federal funds sold and securities purchased under agreements to resell 47,876 42,907 33,605 3,667 1,449 16,759 11,730 14,271 120 Total loans 559,178 542,036 407,556 69,936 21,456 151,616 164,548 151,621 121 Time deposits of $ 100,000 or more 139,145 132.096 107,972 26,712 10,328 43,044 27,888 31,174 122 Total deposits 845,218 830,008 612,859 98,375 25,769 217,875 270,841 232,359 123 Federal funds purchased and securities sold under agreements to repurchase 84,385 80,374 76,761 20,960 9,219 36,604 9,977 7,624 124 Other liabilities for borrowed money 9,553 5,961 5,666 2,172 79 2,980 436 3,887 125 Standby letters of credit outstanding 14,499 13,705 12,902 7,705 1,037 3,302 858 1,598 126 Time deposits of $100,000 or more 140,410 133,981 109,615 26,547 10,360 44,386 28,322 30,795 127 Certificates of deposit 115,589 111,351 90,425 22,011 8,703 35,781 23,930 25,164 128 Other time deposits 24,820 22,630 19,190 4,536 1,657 8,605 4,392 5,630 129 Number of banks 14,718 14,425 5,720 12 9 154 5,545 8,998 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 Figures for one large national bank have been estimated due to a as soon as they become available. merger. Back data in lesser detail were shown in previous BULLETINS. Details 3 Demand deposits adjusted are demand deposits other than domestic may not add to totals because of rounding. commercial interbank and U.S. Govt., less cash items reported as in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • January 1978 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28p 1 Total loans and investments 447,608 446,312 437,552 443,635 446,345 448,160 451,360 450,843 Loans: 2 Federal funds sold1 32,396 29,011 23,006 26,613 27,539 27,699 27,005 26,288 3 To commercial banks 23,143 19,937 17,926 19,483 21,475 19,305 20,858 20,346 To brokers and dealers involving— 4 U.S. Treasury securities 5,116 5,991 2,629 3,927 3,638 5,352 3,163 2,828 5 Other securities 111 549 487 577 548 705 782 859 6 To others 3,420 2,534 1,964 2,626 1,878 2,337 2,202 2,255 7 Other, gross 313,018 314,132 311,361 313,744 314,102 315,986 319,644 320,282 8 Commercial and industrial 123,600 123,103 123,049 123,573 124,076 123,908 125,567 125,655 9 Agricultural 4,771 4,750 4,732 4,678 4,659 4,649 4,668 4,700 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 2,340 2,547 1,088 1,486 1,827 2,122 1,598 949 11 Other securities 8,779 9,125 8,467 8,968 8,758 9,288 9,730 10,151 To others: 12 U.S. Treasury securities 82 88 87 95 97 105 103 104 13 Other securities 2,631 2,603 2,612 2,618 2,625 2,606 2,615 2,622 To nonbank financial institutions: 14 Personal and sales finance cos., etc 7,659 7,523 7,549 7,835 7,851 7,742 8,164 8,070 15 Other 15,447 15,398 15,261 15,450 15,475 15,673 15,561 15,747 16 Real estate 72,779 73,104 73,287 73,444 73,248 73,655 73,935 74,047 To commercial banks: 17 Domestic 2,188 2.466 2,122 2,107 2,083 2,213 2,579 2,455 18 Foreign 6,340 6.467 5,988 5,957 6,160 6,068 6,213 6,267 19 Consumer instalment 44,579 44,708 44,935 45,131 45,239 45,715 45,993 46,281 20 Foreign governments, official institutions, etc.. 1,411 1,405 1,426 1,423 1,402 1 444 1,544 1,496 21 All other loans 20,412 20,845 20,758 20,979 20,602 20|798 21,374 21,738 22 LESS : Loan loss reserve and unearned income on loans 9,435 9,462 9,505 9,447 9,518 9,544 9,532 9,450 23 Other loans, net 303,583 304,670 301,856 304,297 304,584 306,442 310,112 310,832 Investments: 24 U.S. Treasury securities 44,859 45,927 45,522 45,659 46,726 46,535 46,381 46,081 25 Bills 8,003 8,617 8,414 8,191 8,849 8,954 9,067 9,017 Notes and bonds, by maturity: 26 Within 1 year 8,312 8,240 8,358 8,389 8,330 8,339 8,408 8,557 27 1 to 5 years 24,047 24,677 24,540 24,928 25,577 25,290 24,974 24,634 28 After 5 years 4,497 4,393 4,210 4,151 3,970 3,952 3,932 3,873 29 Other securities 66,770 66,704 67,168 67,066 67,496 67,484 67,862 67,642 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 9,438 9,145 8,961 8,833 9,224 8,900 8,799 8,747 31 All other 42,773 42,876 42,896 42,907 43,037 43,067 43,087 43,164 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,090 2,083 2,167 2,211 2,264 2,342 2,452 2,491 33 All other, including corporate stocks 12,469 12,600 13,144 13,115 12,971 13,175 13,524 13,240 34 Cash items in process of collection 40,629 45,147 41,741 44,187 38,067 43,962 43,624 46,900 35 Reserves with F.R. Banks 17,049 17,541 23,649 19,179 20,663 19,029 21,074 24,823 36 Currency and coin 5,929 6,192 5,881 6,702 6,141 6,558 6,590 7,110 37 Balances with domestic banks 15,387 14,115 13,782 14,524 15,302 15,062 17,170 16,425 38 Investments in subsidiaries not consolidated 2,881 2,901 2,869 2,922 2,895 2,867 2,871 2,871 39 Other assets 59,723 56,100 57,032 58,524 57,852 58,177 57,691 58,844 40 Total assets/total liabilities 589,206 588,308 582,506 589,673 587,265 593,815 600,380 607,816 Depots: 41 Demand deposits 190,196 189,124 178,276 189,514 181,511 190,687 194,702 199,384 42 Individuals, partnerships, and corporations., 130,289 136,525 129,971 135,815 132,220 138,502 138,631 142,795 43 States and political subdivisions 5,926 6,575 6,221 6,235 5,629 6,136 6,279 6,261 44 U.S. Govt 962 1,867 1,207 2,707 1,205 1,327 3,304 3,676 Domestic interbank: 45 Commercial 36,977 27,685 25,710 29,389 27,038 27,794 29,427 29,261 46 Mutual savings * 972 945 881 819 850 783 805 860 Foreign: 47 Governments, official institutions, etc 1,139 1,094 1,300 1,253 1,495 1,280 1,506 1.942 48 Commercial banks 6,228 6,854 6,051 6,076 6,573 6,927 6,952 7,626 49 Certified and officers' checks 7,703 7,579 6,935 7,220 6,501 7,938 7,798 6,963 50 Time and savings deposits3 244,027 244,956 246,720 246,729 248,092 249,649 251,152 251,314 51 Savings4 92,953 92,650 92,550 92,274 92,288 92,004 91,766 91,739 52 Time: 151,074 152,306 154,170 154,455 155,804 157,645 159,386 159,575 5 3 Individuals, partnerships, and corporations 115,334 116,117 117,406 117,674 118,630 119,772 120,732 121,119 54 States and political subdivisions 21,929 22,071 22,446 22,360 22,561 23,067 23,478 23,303 55 Domestic interbank 4,771 4,792 4,993 5,121 5,300 5,541 5,689 5,731 56 Foreign govts., official institutions, etc 7,461 7,783 7,751 7,746 7,767 7,714 7,995 7.943 57 Federal funds purchased, etc. 5 78,839 78,065 78,536 76,397 81,226 76,798 77,887 79,293 Borrowings from: 58 F.R. Banks 376 172 2,669 626 415 1,051 830 1,512 59 Others 5,192 5,190 5,372 5,122 5,172 5,533 5,328 5,416 60 Other liabilities, etc. 6 26,343 26,630 26,770 26,876 26,409 25,679 26,138 26,415 61 Total equity capital and subordinated notes/debentures7 44,233 44,171 44,163 44,409 44,440 44,418 44,343 44,482 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 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28*> 1 Total loans and investments. 96,632 95,969 93,469 95,760 96,335 95,639 97,884 98,160 Loans: Federal funds sold 1 5,997 3,380 3,436 4,473 4,685 3,323 4,424 5,198 To commercial banks 3,189 1,881 1,895 2,522 2,494 1,676 2,197 2,981 To brokers and dealers involving— U.S. Treasury securities 1,336 931 688 743 1,597 1,117 1,241 1,227 Other securities 54 To others 1,418 568 853 1,208 594 530 986 990 Other, gross 70,846 71,985 69,389 70,635 71,079 71,925 73,465 73,139 Commercial and industrial 35,171 35,036 34,873 35,165 35,663 35,750 36,534 36,389 Agricultural 174 176 180 111 170 169 171 168 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 2,036 2,406 945 1,324 1,643 1,885 1,389 799 Other securities 4,507 4,836 4,389 4,737 4,606 5,142 5,311 5,730 To others: 12 U.S. Treasury securities. 23 22 22 22 21 21 21 21 13 Other securities 358 358 373 372 385 396 390 380 To nonbank financial institutions: 14 Personal and sales finance cos., etc 2,612 2,523 2,636 2,871 2,823 2,794 3,030 2,929 15 Other.. 4,873 4,895 4,926 4,901 4,883 4,955 5,011 5,077 16 Real estate 8,918 8,940 8,970 8,971 8,847 8,800 8,835 8,812 To commercial banks: 17 Domestic 748 1,034 757 662 661 585 885 812 18 Foreign 3,075 3,196 2,706 2,759 3,046 2,822 3,017 2,965 19 Consumer instalment 4,289 4,299 4,318 4,319 4,334 4,384 4,390 4,433 20 Foreign governments, official institutions, etc. 293 302 300 297 285 283 356 290 21 All other loans 3,769 3,962 3,994 4,058 3,712 3,939 4,125 4,334 22 LESS : Loan loss reserve and unearned income on loans 1,708 1,713 1,716 1,701 1,739 1,746 1,733 1,672 23 Other loans, net 69,138 70,272 67,673 68,934 69,340 70,179 71,732 71,467 Investments: U.S. Treasury securities 10,697 11,442 11,149 11,288 11,385 11,207 10,761 10,661 Bills 2,566 2,957 2,916 2,573 2,428 2,490 2,218 2,178 Notes and bonds, by maturity: Within 1 year 1,541 1,542 1,429 1,610 1,432 1,433 1,511 1,536 1 to 5 years 5,439 5,901 5,877 6,178 6,672 6,503 6,232 6,203 After 5 years 1,151 1,042 927 927 853 781 800 744 Other securities 10,800 10,875 11,211 11,065 10,925 10,930 10,967 10,834 Obligations of States and political subdivisions: Tax warrants, short-term notes, and bills. 2,378 2,263 2,220 2,220 2,247 2,142 2,147 2,132 All other 6,546 6,647 6,547 6,502 6,625 6,638 6,607 6,589 Other bonds, corporate stocks, and securities: Certificates of participation2 192 192 192 189 188 190 190 190 All other, including corporate stocks 1,684 1,773 2,252 2,154 1,865 1,960 2,023 1,923 34 Cash items in process of collection 16,000 14,486 13,533 15,754 11,995 15,034 13,811 15,216 35 Reserves with F.R. Banks 6,424 6,229 6,034 3,507 4,963 4,438 5,236 6,017 36 Currency and coin 903 937 877 962 945 974 983 1,045 37 Balances with domestic banks 8,017 5,749 6,656 6,740 7,387 7,446 8,638 7,825 38 Investments in subsidiaries not consolidated. 1,408 1,413 1,411 1,416 1,418 1,424 1,424 1,427 39 Other assets 23,215 21,233 21,670 21,706 21,890 21,792 20,458 21,295 40 Total assets/total liabilities. 152,599 146,016 143,650 145,845 144,933 146,747 148,434 150,985 Deposits: Demand deposits 60,300 51,774 48,173 53,834 50,015 54,103 55,686 57,799 Individuals, partnerships, and corporations.. 27,751 28,641 26,481 28,423 27,071 28,627 29,008 31,242 States and political subdivisions 476 572 598 471 456 427 586 584 U.S. Govt 114 232 129 409 102 103 562 595 Domestic interbank: Commercial 22,107 12,307 11,996 15,352 12,969 14,000 14,858 14,229 Mutual savings 519 481 490 407 439 408 418 459 Foreign: Governments, official institutions, etc 944 875 1,082 999 1,224 984 1,185 1,625 Commercial banks 4,761 5,332 4,543 4,527 5,039 5,484 5,293 6,010 Certified and officers' checks 3,628 3,334 2,854 3,246 2,715 4,070 3,776 3,055 Time and savings deposits3 43,324 43,575 43,985 44,052 44,226 44,505 44y623 44,505 Savings 4 10,115 10,065 10,026 9,953 9,951 9,924 9,904 9,929 Time: 33,209 33,510 33,959 34,099 34,275 34,581 34,719 34,576 Individuals, partnerships, and corporations 24,541 24,789 25,322 25,447 25,601 25,933 26,029 25,920 States and political subdivisions 1,704 1,705 1,681 1,682 1,686 1,691 1,660 1,650 Domestic interbank 1,707 1,621 1,595 1,631 1,624 1,652 1.653 1,679 Foreign govts., official institutions, etc 4,511 4,656 4,629 4,617 4,646 4,572 4.654 4,611 57 Federal funds purchased, etc.5 22,205 23,830 23,289 21,291 24,037 21,789 21,920 22,320 Borrowings from: 58 F.R. Banks 11,,776666 256 654 350 225 59 Others 2,178 2,310 22,,227744 2,299 2,515 2,507 2,386 2,344 60 Other liabilities, etc.6 11,898 11,822 1111,,446666 11,613 11,141 10,459 10,709 11,014 61 Total equity capital and subordinated notes/debentures7 12,694 12,705 12,697 12,756 12,743 12,730 12,760 12,778 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 NonfinancialS tatistics • January 1978 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1977 Account Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28p 1 Total loans and investments 350,976 350,343 344,083 347,875 350,010 352,521 353,476 352,683 Loans: 2 Federal funds sold1 26,399 25,631 19,570 22,140 22,854 24,376 22,581 21,090 3 To commercial banks 19,954 18,056 16,031 16,961 18,981 17,629 18,661 17,365 To brokers and dealers involving— 4 U.S. Treasury securities 3,780 5,060 1,941 3,184 2,041 4,235 1,922 1,601 5 Other securities 663 549 487 577 548 705 782 859 6 To others 2,002 1,966 1,111 1,418 1,284 1,807 1,216 1,265 7 Other, gross 242,172 242,147 241,972 243,109 243,023 244,061 246,179 247,143 8 Commercial and industrial 88,429 88,067 88,176 88,408 88,413 88,158 89,033 89,266 9 Agricultural 4,597 4,574 4,552 4,501 4,489 4,480 4,497 4,532 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 304 141 143 162 184 237 209 150 11 Other securities 4,272 4,289 4,078 4,231 4,152 4,146 4,419 4,421 To others: 12 U.S. Treasury securities 59 66 65 73 76 84 82 83 13 Other securities 2,273 2,245 2,239 2,246 2,240 2,210 2,225 2,242 To nonbank financial institutions: 14 Personal and sales finance cos., etc 5,047 5,000 4,913 4,964 5,028 4,948 5,134 5,141 15 Other 10,574 10,503 10,335 10,549 10,592 10,718 10,550 10,670 16 Real estate 63,861 64,164 64,317 64,473 64,401 64,855 65,100 65,235 To commercial banks: 17 Domestic 1,440 1,432 1,365 1,445 1,422 1,628 1,694 1,643 18 Foreign 3,265 3,271 3,282 3,198 3,114 3,246 3,196 3,302 19 Consumer instalment 40,290 40,409 40,617 40,812 40,905 41,331 41,603 41,848 20 Foreign governments, official institutions, etc. 1,118 1,103 1,126 1,126 1,117 1,161 1,188 1,206 21 All other loans 16,643 16,883 16,764 16,921 16,890 16,859 17,249 17,404 22 LESS : Loan reserve and unearned income on loans 7,727 7,749 7,789 7,746 7,779 7,798 7,799 7,778 23 Other loans, net 234,445 234,398 234,183 235,363 235,244 236,263 238,380 239,365 Investments: 24 U.S. Treasury securities 34,162 34,485 34,373 34,371 35,341 35,328 35,620 35,420 25 Bills 5,437 5,660 5,498 5,618 6,421 6,464 6,849 6,839 Notes and bonds, by maturity: 26 Within 1 year 6,771 6,698 6,929 6,779 6,898 6,906 6,897 7,021 27 1 to 5 years 18,608 18,776 18,663 18,750 18,905 18,787 18,742 18,431 28 After 5 years 3,346 3,351 3,283 3,224 3,117 3,171 3,132 3,129 29 Other securities 55,970 55,829 55,957 56,001 56,571 56,554 56,895 56,808 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills.. 7,060 6,882 6,741 6,613 6,977 6,758 6,652 6,615 31 All other 36,227 36,229 36,349 36,405 36,412 36,429 36,480 36,575 Other bonds, corporate stocks, and securities: 32 Certificates of participation2. 1,898 1,891 1,975 2,022 2,076 2,152 2,262 2,301 33 All other, including corporate stocks 10,785 10,827 10,892 10,961 11,106 11,215 11,501 11,317 34 Cash items in process of collection 24,629 30,661 28,208 28,443 26,072 28,928 29,813 31,684 35 Reserves with F. R. Banks 10,625 11,312 17,615 15,672 15,700 14,591 15,838 18,806 36 Currency and coin 5,026 5,255 5,004 5,740 5,196 5,584 5,607 6,065 37 Balances with domestic banks 7,370 8,366 7,126 7,784 7,915 7,616 8,532 8,600 38 Investments in subsidiaries not consolidated 1,473 1,488 1,458 1,506 1,477 1,443 1,447 1 444 39 Other assets 36,508 34,867 35,362 36,818 35,962 36,385 37,233 37',549 40 Total assets/total liabilities 436,607 442,292 438,856 443,828 442,332 447,068 451,946 456,831 Deposits: 41 Demand deposits , 129,896 137,350 130,103 135,680 131,496 136,584 139,016 141,585 42 Individuals, partnerships, and corporations.. 102,538 107,884 103,490 107,392 105,149 109,875 109,623 111,553 43 States and political subdivisions. 5,450 6,003 5,623 5,764 5,173 5,709 5,693 5,677 44 U.S. Govt 848 1,635 1,078 2,298 1,103 1,224 2,742 3,081 Domestic interbank: 45 Commercial 14,870 15,378 13,714 14,037 14,069 13,794 14,569 15,032 46 Mutual savings 453 464 391 412 411 375 387 401 Foreign: 47 Governments, official institutions, etc 195 219 218 254 271 296 321 317 48 Commercial banks 1,467 1,522 1,508 1,549 1,534 1,443 1,659 1,616 49 Certified and officers' checks 4,075 4,245 4,081 3,974 3,786 3,868 4,022 3,908 50 Time and savings deposits3 , 200,703 201,381 202,735 202,677 203,866 205,144 206,529 206,809 51 Savings4 82,838 82,585 82,524 82,321 82,337 82,080 81,862 81,810 52 Time: 117,865 118,796 120,211 120,356 121,529 123,064 124.667 124,999 5 3 Individuals, partnerships, and corporations 90,793 91,328 92,084 92,227 93,029 93,839 94,703 95,199 54 States and political subdivisions 20,225 20,366 20,765 20,678 20,875 21,376 21,818 21,653 5 5 Domestic interbank 3,064 3,171 3,398 3,490 3,676 3,889 4,036 4,052 56 Foreign govts., official institutions, etc 2,950 3,127 3,122 3,129 3,121 3,142 3,341 3,332 57 Federal funds purchased, etc.5 56,634 54,235 55,247 55,106 57,189 55,009 55,967 56,973 Borrowings from: 58 F. R. Banks 376 172 903 626 159 397 480 1,287 59. Others 3,014 2,880 3,098 2,823 2,657 3,026 2,942 3,072 60 Other liabilities, etc.6 14,445 14,808 15,304 15,263 15,268 15,220 15,429 15,401 61 Total equity capital and subordinated notes/debentures7 31,539 31,466 31,466 31,653 31,697 31,688 31,583 31,704 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 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28*> Total loans (gross) and investments, adjusted1 1 Large banks 431,712 433,371 427,009 431,492 432,305 436,186 437,455 2 New York City banks 94,403 94,767 92,533 94,277 94,919 95,124 96,535 3 Banks outside New York City 337,309 338,604 334,476 337,215 337,386 341,062 340,920 Total loans (gross), adjusted 4 Large banks 320,083 320,740 314,319 318,767 318,083 322,167 323,212 5 New York City banks 72,906 72,450 70,173 71,924 72,609 72,987 74,807 6 Banks outside New York City 247,177 248,290 244,146 246,843 245,474 249,180 248,405 Demand deposits, adjusted2 7 Large banks 111,628 114,425 109,618 113,231 115,201 117,604 118,347 8 New York City banks 22,079 24,749 22,515 22,319 24,949 24,966 26,455 9 Banks outside New York City 89,549 89,676 87,103 90,912 90,252 92,638 91,892 Large negotiable time CD's included in time and savings deposits3 Total: 10 Large banks 70,481 71,693 73,253 73,360 74,606 75,879 77,140 11 New York City 22,386 22,663 23,215 23,173 23,403 23,673 23,914 12 Banks outside New York City 48,095 49,030 50,038 50,187 51,203 52,206 53,226 Issued to IPC's: 13 Large banks 47,480 48,356 49,470 49,513 50,522 51,525 52,448 14 New York City Banks 15,237 15,490 16,084 16,040 16,247 16,498 16,653 15 Banks outside New York City 32,243 32,866 33,386 33,473 34,275 35,027 35,795 Issued to others: 16 Large banks 23,001 23,337 23,783 23,847 24,084 24,354 24,692 17 New York City banks 7,149 7,173 7,131 7,133 7,156 7,175 7,261 18 Banks outside New York City 15,852 16,164 16,652 16,714 16,928 17,179 17,431 All other large time deposits4 Total: 19 Large banks 28,617 28,719 29,112 29,027 29,218 29,668 30,172 20 New York City banks 6,035 6,049 5,987 5,982 6,009 5,984 5,905 21 Banks outside New York City 22,582 22,670 23,125 23,045 23,209 23,684 24,267 Issued to IPC's: 22 Large banks 16,642 16,663 16,856 16,831 16,819 16,876 16,892 23 New York City banks 4,658 4,646 4,625 4,605 4,631 4,646 4,598 24 Banks outside New York City 11,984 12,017 12,231 12,226 12,188 12,230 12,294 Issued to others: 25 Large banks 11,975 12,056 12,256 12,196 12,399 12,792 13,280 26 New York City banks 1,377 1,403 1,362 1,377 1,378 1,338 1,307 27 Banks outside New York City 10,598 10,653 10,894 10,819 11,021 11,454 11,973 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks 86,326 86,054 85,950 85,727 85,659 85,406 85,296 29 New York City banks 9,370 9,333 9,309 9,235 9,230 9,194 9,177 30 Partn B e a rs n h k i s p s o u a t n s d id e c o N rp e o w r a Y ti o o r n k s C fo it r y p rofit:5 76,956 76,721 76,641 76,492 76,429 76,212 76,119 31 Large banks 5,175 5,156 5,227 5,240 5,279 5,193 5,104 32 New York City banks 515 517 520 522 521 515 510 33 Banks outside New York City 4,660 4,639 4,707 4,718 4,758 4,678 4,594 Domestic governmental units: 34 Large banks 1,416 1,415 1,345 1,277 1,323 1,380 1,338 35 New York City banks 212 203 185 182 189 205 199 36 Banks outside New York City 1,204 1,212 1,160 1,095 1,134 1,175 1,139 All other:6 37 Large banks 36 25 28 30 27 25 28 38 New York City banks 18 12 12 14 11 10 18 39 Banks outside New York City 18 13 16 16 16 15 10 Gross liabilities of banks to their foreign branches 40 Large banks 4,955 5,018 4,575 4,100 5,089 4,929 5,058 41 NewJYork City banks 2,679 3,011 3,304 3,257 2,932 3,324 3,489 42 Banks outside New York City 2,276 2,007 1,271 843 2,157 1,605 1,569 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial 3,115 3,120 3,143 3,069 3,066 3,172 3,146 44 Real estate 217 223 223 243 238 243 223 45 Allother 1,137 1,132 1,128 1,130 1,122 1,155 1,180 1 Exclusive of loans and Federal funds transactions with domestic 5 Other than commercial banks. commercial banks. 6 Domestic and foreign commercial banks, and official international 2 All demand deposits except U.S. Govt, and domestic commercial organizations. banks, less cash items in process of collection. 7 To bank's own foreign branches, nonconsolidated nonbank af- 3 Certificates of deposit (CD's) issued in denominations of $100,000 or filiates of the bank, the bank's holding company (if not a bank), and more. nonconsolidated nonbank subsidiaries of the holding company. 4 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD's). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • January 1978 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1977 1977 1977 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28? Q3 Q4P Oct. Nov. Dec.? Total loans classified2 1 Total 100,473 100,786 100,574 101,974 101,966 268 4,361 2,161 707 1,493 Durable goods manufacturing: 2,358 2,357 2,323 2,668 22,,773377 74 224433 -58 -78 379 3 Machinery 4,538 4,513 4,497 4,551 4,571 -233 86 -119 33 2,448 2,343 2,387 2,347 2,314 -15 -72 -26 88 -134 5 Other fabricated metal products... 1,956 1,946 1,956 1,972 1,955 11 -20 18 -37 — 1 6 Other durable goods 3,565 3,602 3,573 3,620 3,495 66 -237 -30 -137 -70 Nondurable goods manufacturing: 7 Food, liquor, and tobacco 3,743 3,757 33,,772244 3,789 3,800 112288 344 114411 146 57 8 Textiles, apparel, and leather 3,627 3,587 3,509 3,425 3,362 166 -658 -134 -259 -265 9 Petroleum refining 2,925 2,890 2,843 2,970 2,936 91 223 114 98 11 2,925 2,909 2,885 2,830 2,844 124 -37 32 12 -81 11 Other nondurable goods 2,147 2,155 2,155 2,276 2,257 149 89 9 -30 110 12 Mining, including crude petroleum and natural gas 8,464 8,557 8,595 8,590 8,757 88 552255 146 86 293 Trade: 1,820 1,816 1,764 1,789 1,847 -379 523 288 208 27 7,112 7,142 7,175 7,235 7,273 103 413 221 31 161 15 Retail 7,475 7,448 7,275 7,077 6,972 311 -228 213 62 -503 5,010 4,975 4,953 5,019 4,965 -68 -3 -60 102 -45 1,398 1,381 1,360 1,402 1,395 72 127 56 74 -3 5,070 5,130 5,120 5,366 5,330 -512 290 74 -44 260 4,540 4,451 4,428 4,498 4,459 243 -45 -38 74 -81 11,115 11,066 11,173 11,173 11,296 -270 283 -22 124 181 21 All other domestic loans 8,116 8,172 8,160 8,316 8,285 197 363 48 146 169 22 Bankers acceptances. 55,,224411 55,,774466 55,,991100 6,209 6,270 86 2,504 924 551 1,029 23 Foreign commercial and industrial 4,880 4,843 4,809 4,852 4,846 -164 -266 159 -391 -34 MEMO ITEMS: 24 Commercial paper included in total classified loans* 113388 115588 --8855 --7755 --2222 --7733 2200 25 Total commercial and industrial loans of all large weekly 123,573 124,076 123,908 125,567 125,655 674 5,444 2,172 1,190 2,082 1977 1977 1977 Aug. 31 Sept. 28 Oct. 26 Nov. 30 Dec. 28* Q3 Q4 p Oct. Nov. Dec.* "Term" loans classified3 26 Total 46,076 46,274 46,631 46,660 46,626 -242 352 357 29 -34 Durable goods manufacturing: 1,394 1,426 1,420 1,405 1,546 38 120 -6 --1155 114411 28 Machinery 2,306 2,337 2,384 2,319 2,286 -183 -51 47 -65 -33 29 Transportation equipment 1,382 1,429 1,373 1,339 1,317 47 -112 -56 -34 -22 30 Other fabricated metal products... 785 775 831 838 834 -57 59 56 7 -4 31 Other durable goods 1,734 1,774 1,774 1,742 1,698 52 -76 -32 -44 Nondurable goods manufacturing: 32 Food, liquor, and tobacco 1,368 1,400 1,441 1,442 1,498 -35 98 41 1 56 33 Textiles, apparel, and leather 1,149 1,154 1,173 1,142 1,058 4 -96 19 -31 -84 34 Petroleum refining 1,988 1,997 2,129 2,167 2,268 59 271 132 38 101 1,705 1,745 1,746 1,770 1,727 99 -18 1 24 -43 36 Other nondurable goods 1 088 11,,009944 11,,009944 11,,111199 11,,114477 --3344 5533 2255 2288 37 Mining, including crude petroleum and natural gas 66,,229955 66,,228844 6,328 66,,441122 6,501 -91 217 44 84 89 Trade: 38 Commodity dealers 209 194 209 234 236 23 42 15 25 2 39 Other wholesale 1,485 1,540 1,588 1,592 1,665 57 125 48 4 73 40 Retail 2,379 2,400 2,495 2,583 2,448 75 48 95 88 -135 3,624 3,625 3,622 3,651 3,484 -24 -141 -3 29 -167 785 786 812 835 840 38 54 26 23 5 43 Other public utilities 3,358 3,302 3,413 3,294 3,266 -469 -36 111 -119 -28 44 Construction 1,904 2,011 1,956 2,007 1,990 178 -21 -55 51 -17 45 Services 5,288 5,281 5,185 5,250 5,366 -20 85 -96 65 116 46 All other domestic loans 22,,773333 22,,554422 22,,550022 22,,664411 22,,772266 110 184 -40 139 85 47 Foreign commercial and industrial loans 3,117 3,178 3,156 2,878 2,725 -109 -453 -22 -278 -153 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.. June Sept. Dec. Mar. June Sept. 1 All holders, IPC 208.0 220.1 225.0 236.9 234.2 236.1 250.1 242.3 253.8 252.7 2 Financial business 18.9 19.1 19.0 20.1 20.3 19.7 22.3 21.6 25.9 23.7 3 Nonfinancial business 109.9 116.2 118.8 125.1 121.2 122.6 130.2 125.1 129.2 128.5 65.4 70.1 73.3 78.0 78.8 80.0 82.6 81.6 84.1 86.2 5 Foreign 1.5 2.4 2.3 2.4 2.5 2.3 2.7 2.4 2.5 2.5 6 Other 12.3 12.4 11.7 11.3 11.4 11.5 12.4 11.6 12.2 11.8 At weekly reporting banks 1977 11997733 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June July Aug. Sept. Oct.2' Nov.2' 7 All holders, IPC 118.1 119.7 124.4 128.5 128.7 131.0 128.0 129.2 131.4 133.0 8 Financial business 14.9 14.8 15.6 17.5 17.8 18.9 18.0 17.4 18.0 17.9 9 Nonfinancial business 66.2 66.9 69.9 69.7 69.5 70.7 68.8 70.0 72.1 72.2 10 Consumer 28.0 29.0 29.9 31.7 32.3 32.6 32.4 32.8 32.4 33.4 11 Foreign 2.2 2.2 2.3 2.6 2.4 2.2 2.5 2.4 2.3 2.5 12 Other 6.8 6.8 6.6 7.1 6.7 6.7 6.4 6.6 6.7 7.0 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. May June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted) 1 All issuers 49,742 48,145 52,623 57,434 r61,327 60,323 60,320 61,391 62,591 61,995 Financial companies:1 Dealer-placed paper:2 2 Total 4,599 6,220 7,271 7,555 8,196 8,261 8,167 8,493 8,547 8,493 3 Bank-related 1,814 1,762 1,900 11,,880055 11,,889944 11,,774444 1,650 1,846 11,,996611 11,,998800 Directly-placed paper:3 4 Total 3311,,880011 3311,,223300 3322,,336655 34,949 37,593 36,773 36,699 37,670 38,979 38,845 5 Bank-related 6,518 6,892 5,959 5,999 6,636 6,344 6,394 7,069 7,008 6,567 6 Nonfinancial companies4 13,342 10,695 12,987 14,930 15,538 15,289 15,454 15,228 15,065 14,657 Dollar acceptances (not seasonally adjusted) 7 Total 18,484 18,727 22,523 23,201 23,440 23,499 23,091 23,317 23,908 Held by: 8 Accepting banks 4,226 7,333 10,442 7,326 7,630 7,601 7,647 7,473 8,673 9 Own bills 3,685 5,899 8,769 6,218 6,356 6,464 6,580 6,566 7,248 10 Bills bought 542 1,435 1,673 1,108 1,273 1,137 1,067 907 1,424 F.R. Banks: 11 Own account 999 1,126 991 108 621 393 131 482 12 Foreign correspondents... 1,109 293 375 385 360 296 304 287 422 13 Others 12,150 9,975 13,447 15,382 14,829 15,209 15,009 15,075 14,813 Based on: 14 Imports into United States.. 4,023 3,726 4,992 5,124 5,635 5,570 5,446 5,654 5,886 15 Exports from United States. 4,067 4,001 4,818 5,642 5,729 5,842 5,747 5,544 5,584 16 All other 10,394 11,000 12,713 12,436 12,076 12,088 11,899 12,119 12,438 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 • January 1978 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Month Average Month Average Effective date Rate Effective date Rate rate rate 1976—June 1 7 1977—May 13 61/2 1976—June 7.20 1977—Apr 6.25 7, IVA 31 6V4 July 7.25 6.41 Aug 7.01 6.75 Aug. 2, 1 Aug. 22 7 Sept 7.00 July 6.75 Oct 6.78 6.83 Oct. 4 6V4 Sept. 16 71/4 Nov 6.50 Sept... 7.13 Dec 6.35 7.52 Nov. 1, 61/2 Oct. 7 m 7.75 Oct. 24 m 1977—Jan 6.25 7.75 Dec. 13 6% Feb 6.25 Mar 6.25 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) 1,195,225 375,556 206,220 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 i 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 76 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 i 8.16-9.28 8.24-9.84 8.27-9.25 8.48-9.43 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 1 1.4 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 i .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 3 2 O Fe t e h d er e r l i l v iv es e t s o to ck c k 8 8 . . 4 6 0 0 8 8 . . 8 6 8 9 8 8 . . 7 6 6 1 8 8 . . 8 4 0 6 8 8 . . 7 4 5 8 8 8 . . 6 5 0 8 8. ( 023 ) 3 3 4 5 F O a th rm er m cu a r c r h e i n n t e o ry p e a r n a d t in e g q u e i x p p m e e n n 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. ( 012 ) 9 8 . . 1 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 1975 1976 1977 Sept. Oct. Nov. Dec. Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 Money market rates Prime commercial paper 1 1 90- to 119-day 6.26 5.24 5.54 6.09 6.51 6.54 6.61 6.53 6.56 6.62 6.65 6.66 2 6.33 5.35 5.60 6.17 6.55 6.59 6.64 6.57 6.60 6.64 6.68 6.68 3 Finance company paper, directly placed, 3- to 6-month 2 6.16 5.22 5.49 66..0044 66..4411 6.49 6.52 66..5500 6.50 6.51 66..5544 6.55 4 Prime bankers acceptances, 90-day 3 6.30 5.19 5.59 6.16 6.57 6.58 6.60 6.46 6.55 6.57 6.65 6.71 5.82 5.05 5.54 6.14 6.47 6.51 6.56 6.55 6.51 6.49 6.54 6.65 Large negotiable certificates of deposit 67 3-month, secondary market 5 6.43 5 5 . . 2 1 6 5 5.5 5 8 2 6 6 . . 1 0 8 4 6 6 . . 2 5 4 3 6 6 . . 6 5 8 6 66 6 .. . 77 6 22 4 66 6 .. . 66 5 22 5 6 6 . . 6 5 3 5 6 6 . . 7 7 2 0 6 6 . . 7 7 2 0 6 6 . . 7 7 8 0 8 Euro-dollar deposits, 3-month V 6.97 5.57 6.05 6.57 7.14 7.09 7.15 r6.98 6.99 7.11 7.13 7.33 U.S. Govt, securities Bills: 8 Market yields: 9 3-month 5.80 4.98 5.27 5.81 6.16 6.10 6.07 6.04 6.07 6.03 6.03 6.16 10 6-month 6.11 5.26 5.53 6.04 6.43 6.41 6.40 6.37 6.38 6.37 6.40 6.47 11 1-year 6.30 5.52 5.71 6.13 6.52 6.52 6.52 6.49 6.52 6.50 6.53 6.57 Rates on new issue: 12 5.838 4.989 5.265 5.770 6.188 6.160 6.063 6.057 6.049 6.073 5.985 6.152 13 6-month 6.122 5.266 5.510 5.991 6.410 6.433 6.377 6.371 6.347 6.371 6.338 6.460 Notes and bonds maturing in 14 9 to 12 months 9 6.70 5.84 6.07 6.53 6.96 6.92 6.93 6.85 6.89 6.93 6.93 7.01 Constant maturities:1 o 15 1-year 6.76 5.88 6.09 6.53 6.97 6.95 6.96 6.91 6.94 6.94 6.97 7.01 Capital market rates Goverment notes and bonds U.S Treasury: Constant maturities:1 o 16 2-year 6.31 6.45 6.71 7.11 7.14 7.18 7.12 7.15 7.15 7.19 7.25 17 3-year 7.49 6.77 6.69 6.84 7.19 7.22 7.30 7.22 7.27 7.27 7.33 7.39 18 5-year 7.77 7.18 6.99 7.04 7.32 7.34 7.48 7.35 7.44 7.46 7.51 7.57 19 7-year 7.90 7.42 7.23 7.21 7.44 7.46 7.59 7.45 7.54 7.56 7.63 7.70 20 10-year 7.99 7.61 7.42 7.34 7.52 7.58 7.69 7.56 7.63 7.66 7.73 7.79 21 8.19 7.86 7.67 7.57 7.71 7.76 7.87 7.75 7.81 7.84 7.92 7.99 2222 30-year 77..7755 77..6644 77..7777 77..8855 77..9944 77..8844 77..8888 77..9911 77..9988 88..0044 Notes and bonds maturing in9— 23 7.55 6.94 6.85 6.92 7.23 7.28 7.40 7.29 7.36 7.38 7.43 7.51 24 Over 10 years (long-term). 6.98 6.78 7.06 6.94 7.08 7.14 7.23 7.14 7.18 7.20 7.26 7.34 State and local: MMooooddyy''ss sseerriieess::1111 25 AAaaaa 6.42 5.66 5.20 5.27 5.31 5.15 5.07 5.05 5.05 5.00 5.10 5.15 26 Baa 7.62 7.49 6.12 5.83 5.94 5.94 5.79 5.90 5.80 5.75 5.75 5.75 27 Bond Buyer series 12 7.05 6.64 5.68 5.51 5.64 5.49 5.57 5.47 5.54 5.55 5.62 5.66 Corporate bonds Seasoned issues 13 28 All industries 9.57 9.01 8.43 8.31 8.42 8.48 8.54 8.47 8.50 8.53 8.57 8.61 By rating groups: 29 Aaa 8.83 8.43 8.02 7.92 8.04 8.08 8.19 8.08 8.13 8.18 8.23 8.28 30 Aa 9.17 8.75 8.24 8.15 8.26 8.34 8.40 8.31 8.35 8.38 8.43 8.48 31 A 9.65 9.09 8.49 8.37 8.48 8.56 8.57 8.54 8.55 8.56 8.58 8.62 32 Baa 10.61 9.75 8.97 8.80 8.89 8.95 8.99 8.94 8.95 8.97 9.02 9.06 Aaa utility bonds:14 33 New issue 9.40 8.48 8.19 8.07 8.23 8.27 8 34 8.26 8.35 8.36 34 Recently offered issues 9.41 8.49 8.19 8.07 8.22 8.24 8.38 8.23 8.34 8.38 8.41 8.48 Dividend/price ratio 35 Preferred stocks 8.38 7.97 7.60 7.58 7.60 7.67 7.85 7.79 7.84 7.87 7.86 7.84 36 Common stocks 4.31 3.77 4.56 4.82 4.97 5.02 5.11 5.01 5.13 5.07 5.17 5.08 i 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 ^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 i o 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 DomesticN onfinancial Statistics • January 1978 1.37 STOCK MARKET Selected Statistics 1977 IInnddiiccaattoorr 11997755 11997766 11997777 June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) CCCCoooommmmmmmmoooonnnn ssssttttoooocccckkkk pppprrrriiiicccceeeessss 1111 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((DDDDeeeecccc.... 33331111,,,,1111999966665555 ==== 55550000)))).... 45.73 54.45 53.67 54.31 54.94 53.51 52.66 51.37 51.87 51.83 2222 IIIInnnndddduuuussssttttrrrriiiiaaaallll 51.88 60.44 57.84 58.44 58.90 ' 57.30 56.41 54.99 55.62 55.55 3333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn 30.73 39.57 41.07 43.29 43.52 41.04 39.99 38.33 39.30 39.75 4444 UUUUttttiiiilllliiiittttyyyy 31.45 36.97 40.91 41.59 42.44 41.50 40.93 40.38 40.33 40.36 46.62 52.94 55.23 55.15 57.29 56.52 55.33 53.24 54.04 53.85 6666 SSSSttttaaaannnnddddaaaarrrrdddd &&&& PPPPoooooooorrrr''''ssss CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnn ((((1111999944441111----44443333 ====11110000)))) iiii........ 85.17 102.01 98.18 99.29 100.19 97.75 96.23 93.78 94.28 93.82 7777 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((AAAAuuuugggg.... 33331111,,,,1111999977773333 ==== 111100000000)))).... 83.15 101.63 116.18 116.28 122.03 119.33 118.08 115.41 117.80 124.88 VVVVoooolllluuuummmmeeee ooooffff ttttrrrraaaaddddiiiinnnngggg ((((tttthhhhoooouuuussssaaaannnnddddssss ooooffff sssshhhhaaaarrrreeeessss))))2222 8888 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 18,568 21,189 20,936 22,007 23,656 18,831 18,270 19,689 23,557 21,475 9999 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 2,150 2,565 2,514 2,720 2,880 2,140 2,080 2,080 2,061 3,008 Customer financing (end-of-period balances, in millions of dollars) 11110000 RRRReeeegggguuuullllaaaatttteeeedddd mmmmaaaarrrrggggiiiinnnn ccccrrrreeeeddddiiiitttt aaaatttt bbbbrrrrooookkkkeeeerrrrssss////ddddeeeeaaaalllleeeerrrrssss aaaannnndddd bbbbaaaannnnkkkkssss3333 6666666666666,,,,,,,,,,,,,555555555555500000000000000000000000000 9999999999999,,,,,,,,,,,,,000000000000011111111111111111111111111 11111111111110000000000000,,,,,,,,,,,,,222222222222255555555555555555555555555 11111111111110000000000000,,,,,,,,,,,,,444444444444499999999999990000000000000 11111111111110000000000000,,,,,,,,,,,,,555555555555599999999999992222222222222 11111111111110000000000000,,,,,,,,,,,,,666666666666611111111111117777777777777 11111111111110000000000000,,,,,,,,,,,,,555555555555588888888888883333333333333 11111111111110000000000000,,,,,,,,,,,,,666666666666688888888888880000000000000 11 Brokers, total 5555555555555,,,,,,,,,,,,,555555555555544444444444440000000000000 8888888888888,,,,,,,,,,,,,111111111111166666666666666666666666666 9999999999999,,,,,,,,,,,,,444444444444433333333333332222222222222 9999999999999,,,,,,,,,,,,,666666666666666666666666667777777777777 9999999999999,,,,,,,,,,,,,777777777777766666666666663333333333333 9999999999999,,,,,,,,,,,,,777777777777799999999999993333333333333 9999999999999,,,,,,,,,,,,,777777777777755555555555556666666666666 9999999999999,,,,,,,,,,,,,888888888888855555555555558888888888888 12 Margin stock4 5555555555555,,,,,,,,,,,,,333333333333399999999999990000000000000 7777777777777,,,,,,,,,,,,,999999999999966666666666660000000000000 9999999999999,,,,,,,,,,,,,222222222222233333333333330000000000000 9999999999999,,,,,,,,,,,,,444444444444466666666666660000000000000 9999999999999,,,,,,,,,,,,,555555555555566666666666660000000000000 9999999999999,,,,,,,,,,,,,555555555555599999999999990000000000000 9999999999999,,,,,,,,,,,,,555555555555566666666666660000000000000 9999999999999,,,,,,,,,,,,,666666666666611111111111110000000000000 13 Convertible bonds 111111111111144444444444447777777777777 222222222222200000000000004444444444444 111111111111199999999999998888888888888 222222222222200000000000004444444444444 111111111111199999999999996666666666666 111111111111199999999999996666666666666 111111111111199999999999992222222222222 222222222222244444444444445555555555555 14 Subscription issues 3333333333333 2222222222222 4444444444444 3333333333333 7777777777777 7777777777777 4444444444444 3333333333333 15 Banks, total 999999999999966666666666660000000000000 888888888888844444444444445555555555555 888888888888822222222222223333333333333 888888888888822222222222223333333333333 888888888888822222222222229999999999999 888888888888822222222222224444444444444 888888888888822222222222227777777777777 888888888888822222222222222222222222222 16 Margin stocks 999999999999900000000000009999999999999 888888888888800000000000000000000000000 777777777777777777777777779999999999999 777777777777788888888888880000000000000 777777777777788888888888887777777777777 777777777777788888888888883333333333333 777777777777788888888888883333333333333 777777777777777777777777778888888888888 17 Convertible bonds 33333333333336666666666666 33333333333330000000000000 22222222222225555555555555 22222222222224444444444444 22222222222223333333333333 22222222222224444444444444 22222222222227777777777777 22222222222228888888888888 18 Subscription issues 11111111111115555555555555 11111111111115555555555555 11111111111119999999999999 11111111111119999999999999 11111111111119999999999999 11111111111117777777777777 11111111111117777777777777 11111111111116666666666666 1199 UUnnrreegguullaatteedd nnoonnmmaarrggiinn ssttoocckk ccrreeddiitt aatt bbaannkkss55 ...... 2222222222222,,,,,,,,,,,,,222222222222288888888888881111111111111 2222222222222,,,,,,,,,,,,,888888888888811111111111117777777777777 2222222222222,,,,,,,,,,,,,444444444444400000000000003333333333333 2222222222222,,,,,,,,,,,,,444444444444411111111111119999999999999 2222222222222,,,,,,,,,,,,,444444444444433333333333338888888888888 2222222222222,,,,,,,,,,,,,444444444444433333333333334444444444444 2222222222222,,,,,,,,,,,,,444444444444433333333333331111111111111 2222222222222,,,,,,,,,,,,,444444444444455555555555556666666666666 MMEEMMOO:: FFrreeee ccrreeddiitt bbaallaanncceess aatt bbrrookkeerrss66 2200 MMaarrggiinn--aaccccoouunntt 444444444444477777777777775555555555555 555555555555588888888888885555555555555 555555555555599999999999995555555555555 666666666666600000000000000000000000000 666666666666600000000000005555555555555 666666666666600000000000000000000000000 666666666666611111111111115555555555555 666666666666633333333333330000000000000 21 Cash-account 1111111111111,,,,,,,,,,,,,555555555555522222222222225555555555555 1111111111111,,,,,,,,,,,,,888888888888855555555555555555555555555 1111111111111,,,,,,,,,,,,,888888888888800000000000005555555555555 1111111111111,,,,,,,,,,,,,888888888888866666666666660000000000000 1111111111111,,,,,,,,,,,,,777777777777744444444444445555555555555 1111111111111,,,,,,,,,,,,,777777777777744444444444445555555555555 1111111111111,,,,,,,,,,,,,888888888888855555555555550000000000000 1111111111111,,,,,,,,,,,,,888888888888844444444444445555555555555 Margin-account debt at brokers (percentage distribution, end of period) 222222 TTToootttaaalll 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 By equity class (in per cent):7 23 Under 40 2222222244444444........00000000 1111111122222222........00000000 1111111122222222........99999999 1111111166666666........22222222 1111111177777777........44444444 1111111188888888........00000000 2222222277777777........00000000 1111111177777777........00000000 24 40-49 2222222288888888........88888888 2222222233333333........00000000 2222222277777777........00000000 3333333322222222........99999999 3333333322222222........00000000 3333333366666666........00000000 3333333355555555........00000000 3333333333333333........00000000 25 50-59 2222222222222222........33333333 3333333355555555........00000000 3333333333333333........00000000 2222222266666666........44444444 2222222277777777........00000000 2222222233333333........00000000 1111111188888888........00000000 2222222266666666........00000000 26 60-69 1111111111111111........66666666 1111111155555555........00000000 1111111133333333........33333333 1111111122222222........00000000 1111111122222222........00000000 1111111111111111........00000000 99999999........88888888 1111111122222222........00000000 27 70-79 66666666........99999999 88888888........77777777 88888888........00000000 77777777........00000000 77777777........00000000 66666666........00000000 66666666........00000000 77777777........00000000 28 80 or more 55555555........33333333 66666666........00000000 55555555........88888888 55555555........55555555 55555555........00000000 55555555........00000000 55555555........00000000 55555555........00000000 Special miscellaneous-account balances at brokers (end of period) 222999 TTToootttaaalll bbbaaalllaaannnccceeesss (((mmmiiilllllliiiooonnnsss ooofff dddooollllllaaarrrsss))) 888 77777,,,,,222229999900000 88888,,,,,777777777766666 99999,,,,,444447777700000 99999,,,,,777773333300000 99999,,,,,666666666600000 99999,,,,,666664444400000 99999,,,,,666664444400000 99999,,,,,777771111100000 Distribution by equity status (per cent) 30 Net credit status 4444433333.....88888 4444411111.....33333 4444411111.....00000 4444400000.....99999 4444411111.....11111 4444411111.....77777 4444422222.....88888 4444411111.....88888 Debit status, equity of— 31 60 per cent or more 4444400000.....88888 4444477777.....88888 4444477777.....88888 4444477777.....11111 4444466666.....22222 4444455555.....99999 4444433333.....88888 4444455555.....55555 32 Less than 60 per cent 1111155555.....44444 1111100000.....99999 1111111111.....22222 1111122222.....00000 1111122222.....44444 1111122222.....44444 1111133333.....44444 1111122222.....77777 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 5l/i-hour day. 6 Free credit balances are in accounts with no unfulfilled commitments 3 Margin credit includes all credit extended to purchase or carry to the brokers and are subject to withdrawal by customers on demand. stocks or related equity instruments and secured at least in part by stock. 7 Each customer's equity in his collateral (market value of collateral Credit extended by brokers is end-of-month data for member firms of less net debit balance) is expressed as a percentage of current collateral the New York Stock Exchange; June data for banks are universe totals; values. all other data for banks are estimates for all commercial banks based on 8 Balances that may be used by customers as the margin deposit 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 11997744 11997755 11997766 AAccccoouunntt Mar. Apr. May June July Aug. Sept. Oct.r Nov. Savings and loan associations 295,545 338,233 391,999 409,357 414,436 421,865 All Ml 433,828 440,202 444,484 450,667 455,807 2 Mortgages 249,301 278,590 323,130 333,703 338,984 344,631 350,765 355,991 361,719 366,978 371,857 376,601 3 Cash and investment securities1 23,251 30,853 35,660 39,656 39,061 40,461 39,626 40,990 41,002 39,639 40,571 40,514 4 Other 22,993 28,790 33,209 35,998 36,391 36,773 36,650 36,847 37,481 37,867 38,239 38,692 5 Liabilities and net worth 295,545 338,233 391,999 409,357 414,436 421,865 427,041 433,828 440,202 444,484 450,667 455,807 6 Savings capital 242,974 285,743 336,030 352,194 354,318 357,965 364,349 368,513 371.376 377,338 379,735 381,487 7 Borrowed money 24,780 20,634 19,087 18,283 18,880 19,804 20,558 20,964 22,031 22,925 24,210 25,708 8 FHLBB 21,508 17,524 15,708 14,325 14,809 15,000 15,595 15,724 16,255 16,908 17,546 18,302 9 Other 3,272 3,110 3,379 3,958 4,071 4,804 4,963 5,240 5,776 6,017 6,664 7,406 10 Loans in process 3,244 5,128 6,836 7,351 7,899 8,505 9,123 9,332 9,657 9,735 9,849 9,918 11 Other 6,105 6,949 8,015 8,833 10,360 12,287 9,515 11,220 12,990 10,113 12,167 13,655 12 Net worth2 18,442 19,779 22,031 22,696 22,979 23,304 23,496 23,799 24,148 24,373 24,706 25,039 13 MEMO: Mortgage loan commitments outstanding 3.. 7,454 10,673 14,828 19,304 21,242 22,274 22,037 21,911 21,905 21,635 21,559 21,229 Mutual savings banks 14 Assets 109,550 121,056 134,812 138,901 139,496 140,593 141,778 143,036 143,815 144,666 145,651 Loans : 15 Mortgage 74,891 77,221 81,630 82,273 82,687 83,075 84,051 84,700 85,419 86,079 86,769 16 Other 3,812 4,023 5,183 6,389 6,050 6,650 6,887 7,176 7,119 6,878 7,115 Securities: 17 U.S. Govt 2,555 4,740 5,840 6,360 6,323 6,248 6,604 6,101 6,019 6,192 6,101 18 State and local government. 930 1,545 2.417 2,431 2,504 2,539 2,544 2,594 2,762 2,777 2,808 19 Corporate and other4 22,550 27,992 33,793 35,928 36,322 36,455 36,349 36,674 36,878 36,927 37,073 20 Cash 2,167 2,330 2,355 1,823 1,900 1,922 2,071 2,001 6,857 1,992 2,011 21 Other assets 2,645 3,205 3,593 3,668 3,709 3,703 3,771 3,789 3,760 3,821 3,773 22 Liabilities 109,550 121,056 134,812 138,901 139,496 140,593 141,778 143,036 143,815 144,666 145,651 23 Deposits 98,701 109,873 122,877 126,687 126,938 127,791 129,332 130,111 130,381 131,688 132,250 24 Regular:5 98,221 109,291 121,961 125,624 125,731 126,587 128,071 128,748 129,030 130,230 130,913 25 Ordinary savings 64,286 69,653 74,535 76,260 76,336 76,384 77,033 77,069 77,163 77,640 77,503 26 Time and other 33,935 39,639 47,426 49,364 49,395 50,203 51,038 51,679 51,867 52,590 53,410 27 Other 480 582 916 1,063 1,207 1,204 1,261 1,363 1,351 1,458 1,337 28 Other liabilities 2,888 2,755 2,884 2,939 3,230 3,381 2,939 3,379 3,779 3,254 3,632 29 General reserve accounts 7,961 8,428 9,052 9,275 9,329 9,422 9,506 9,546 9,654 9,723 9,769 30 MEMO : Mortgage loan commitments outstanding6.. 2,040 1,803 2,439 3,161 3,287 3,521 4,079 4,049 4,198 4,254 4,423 Life insurance companies 31 Assets 263,349 289,304 321,552 326,753 328,786 331,028 334,386 336,651 338,964 341,382 343,738 Securities: 32 Government 10,900 13,758 17,942 18,470 18,500 18,475 18,579 18,916 19,174 19,515 19,519 33 United States7 3,372 4,136 5,368 5,546 5,544 5,396 5,400 5,628 5,831 5,883 5,810 34 State and local 3,667 4,508 5,594 5,732 5,758 5,797 5,813 5,847 5,881 5,994 5,979 35 Foreign8 3,861 4,514 6,980 7,192 7,198 7,282 7,366 7,441 7,462 7,638 7,730 36 Business 119,637 135,317 157,246 161,214 162,816 164,126 166,859 168,498 169,747 170,606 172,005 37 Bonds 97,717 107,256 122,984 128,596 130,057 131,568 133,497 135,262 136,752 138,046 139,909 38 Stocks 21,920 28,061 34,262 32,618 32,759 32,558 33,362 33,236 32,995 32,560 32,096 39 Mortgages 86,234 89,167 91,552 91,786 92,200 92,358 92,854 93,106 93,326 94,070 94,684 40 Real estate 8,331 9,621 10,476 10,738 10,802 10,822 10,897 10,901 10,926 10,930 11,024 41 Policy loans 22,862 24,467 25,834 26,207 26,364 26,500 26,657 26,780 26,946 27,087 27,220 42 Other assets 15,385 16,971 18,502 18,338 18,104 18,747 18,540 18,450 18,845 19,174 19,286 Credit unions 43 Total assets/liabilities and capital 31,948 38,037 45,225 47,621 47,974 48,999 50,186 50,218 50,904 52,136 52,412 53,141 44 Federal 16,715 20,209 24,396 25,813 25,980 26,594 27,364 27.290 27,632 28,384 28,463 28,954 45 State 15,233 17,828 20,829 21,808 21,994 22,405 22,822 22j928 23,272 23,752 23,949 24,187 46 Loans outstanding. 24,432 28,169 34,384 35,471 36,102 36,987 38,201 38,657 39,711 40,573 40,865 41,427 47 Federal 12,730 14,869 18,311 18,869 19,151 19,680 20,420 20,591 21,194 21,692 21,814 22,224 48 State 11,702 13,300 16,073 16,602 16,951 17,307 17,781 18,066 18,517 18,881 19,051 19,203 49 Savings 27,518 33,013 39,173 41,483 41,760 42,504 43,552 43,658 43,982 45,103 45,441 45,977 50 Federal (shares) 14,370 17,530 21,130 22,534 22,730 23,169 23,825 23,873 24,080 24,775 24,945 25,303 51 State (shares and deposits). 13,148 15,483 18,043 18,949 19,030 19,335 19,727 19,785 19,902 20,328 20,496 20,674 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • January 1978 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 Sept. Oct. Nov. U.S. Budget 1 Receipts 1 299,197 81,686 356,861 159,742 157,868 189,410 36,642 24,127 27,596 2 Outlays *,2,3 365,658 94,659 401,896 180,559 -193,629 199,482 35,097 38,790 36,864 3 Surplus, or deficit (—) -66,461 -12,973 -45,035 -20,816 -35,761 -10,072 1,545 -14,663 -9,269 4 Trust funds 2,409 -1,952 7,833 5,503 -4,621 7,332 3,900 198 457 5 Federal funds 4 -68,870 -11,021 -52,868 -26,320 -31,140 -17,405 -2,355 -14,861 -9,726 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays. . -5,915 -2,575 -8,415 -3,222 -5,176 -2,075 -892 -1,211 -250 7 Other 2,5 -1,355 793 -269 -1,119 3,809 -2,086 -786 1,750 -183 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 -133 -14,124 -9,702 Financed by: 9 Borrowing from the public 3. . . 82,922 18,027 53,516 33,561 35,457 16,480 10,024 1,851 8,854 10 Cash and monetary assets (decrease, or increase ( —)).... -7,796 -2,899 -2,238 -7,909 2,153 -4,666 -12,093 9,952 2,278 11 Other 6 -1,396 -373 2,440 -495 -485 2,420 2,202 2,321 -1,429 MEMO ITEMS : 12 Treasury operating balance (level, end of period) 14,836 17,418 19,104 14,836 11,670 77,311 19,104 7,687 5,471 13 F.R.Banks 11,975 13,299 15,740 11,975 10,393 65,372 15,740 6,398 2,562 14 Tax and loan accounts 2,854 4,119 3,364 2,854 1,277 11,940 3,364 1,289 2,909 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 until October 1978. 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 and the Housing for the Elderly and Handicapped Fund effective October accounts; seignorage; increment on gold; net gain/loss for U.S. currency 1978, from off-budget status to unified budget status. valuation adjustment; net gain/loss for IMF valuation adjustment. 3 Export-Import Bank certificates of beneficial interest (effective July 7 Excludes the gold balance but includes deposits in certain commercial 1, 1975) and loans to the Private Export Funding Corp. (PEFCO), a wholly depositories that have been converted from a time deposit to a demand owned subsidiary of the Export-Import Bank are treated as debt rather deposit basis to permit greater flexibility in Treasury cash management. than asset sales. 4 Half years calculated as a residual of total surplus/deficit and trust SOURCE.—"Monthly Treasury Statement of Receipts and Outlays of fund surplus/deficit. the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year 5 Includes Pension Benefit Guaranty Corp.; Postal Service Fund, Rural 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 Sept. Oct. Nov. Receipts 1 All sources 1 299,197 81,686 356,861 159,742 157,868 189,410 36,642 24,127 27,596 2 Individual income taxes, net 130,794 39,611 156,725 64,959 75,899 77,948 17,327 13,275 13,171 3 Withheld 123,408 32,949 144,820 63,859 68,023 73,303 11,776 12,770 12,916 4 Presi F de u n n t d i al Election Campaign 34 1 37 33 j 37 5 Nonwithheld 35,528 6,809 42,062 27,879 8,426 32,959 5,903 711 430 6 Refunds i 28,175 1,139 30,194 26,813 1,541 28,350 352 206 174 7 Corporation income taxes: 8 Gross receipts 46,783 9,808 60,057 27,973 20,706 37,133 8,770 2,159 1,386 9 Refunds 5,374 1,348 5,164 2,639 2,886 2,324 394 714 466 10 Social insurance taxes and contributions,, net 92,714 25,760 108,683 51,828 47,596 58,099 7,828 6,550 10,404 11 Payroll employment taxes and contributions 2 76,391 21,534 88,196 40,947 40,427 45,242 6,990 5,542 8,750 12 Self-employment taxes and contributions 3 33,,551188 269 44,,001144 3,250 286 33,,668877 309 13 Unemployment insurance 88,,005544 2,698 1111,,331122 5,193 4,379 66,,557755 94 541 1,216 14 Other net receipts 4 44,,775522 1,259 55,,116622 2,438 2,504 22,,559955 434 466 438 15 Excise taxes 16,963 4,473 17,548 8,204 8,910 8,432 1,589 1,529 1,615 16 Customs 4,074 1,212 5,150 2,147 2,361 2,519 494 406 459 17 Estate and gift 5,216 1,455 7,327 2,643 2,943 4,332 454 410 439 18 Miscellaneous receipts 5 8,026 1,612 6,536 4,630 3,236 3,269 575 512 587 Outlays 19 All types 1,6 365,658 94,659 401,896 180,559 193,629 199,482 35,097 38,790 36,864 20 National defense 89,996 22,518 96,721 44,052 45,002 48,721 8,979 8,087 8,974 21 International affairs 6 5,067 1,997 5,593 2,668 3,028 2,522 868 446 251 22 General science, space, and technology 4,370 1,161 4,677 1,708 2,377 2,108 393 378 389 23 Natural resources, environment, and energy 11,282 3,324 14,335 6,900 7,206 6,855 1,511 1,259 1,527 24 Agriculture 2,502 584 5,330 417 2,019 2,628 50 1,103 1,553 25 Commerce and transportation 17,248 4,700 14,731 5,766 9,643 5,945 1,863 3,586 1,777 26 Community and regional development 5,300 1,530 7,394 2,411 3,192 3,149 941 628 1,058 27 Education, training, employment, and social services 18,167 5,013 19,718 9,116 9,083 9,775 1,801 1,761 1,834 28 Health 33,448 8,720 38,838 17,008 19,329 18,654 3,316 3,355 2,613 29 Income security 1 126,598 32,710 137,151 64,526 65,367 69,917 11,643 11,476 12,635 30 Veterans benefits and services.... 18,432 3,962 18,040 9,450 8,542 9,382 1,325 1,587 1,571 31 Law enforcement and justice 3,320 859 3,589 1,784 1,839 1,783 267 282 321 32 General government 2,927 878 3,338 870 1,734 1,587 326 182 376 33 Revenue sharing and general purpose fiscal assistance 7,119 2,024 9,404 3,664 4,729 4,333 65 2,274 249 34 Interest 7 34,589 7,246 38,092 18,560 18,409 18,927 2,722 2,908 2,758 35 Undistributed offsetting receipts 7 -14,704 -2,567 -15,053 -8,340 -7,869 -6,803 -973 -524 -1,021 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- * 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 DomesticN onfinancial Statistics • January 1978 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1974 1975 1976 1977 IItteemm Dec. 31 June 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 504.0 544.1 587.6 631.9 2646.4 665.5 680.1 685.2 709.1 2 Public debt securities 492.7 533.7 576.6 620.4 634.7 653.5 669.2 674.4 698.8 3 Held by public 351.5 387.9 437.3 470.8 488.6 506.4 524.3 523.2 543.4 4 Held by agencies 141.2 145.3 139.3 149.6 146.1 147.1 144.9 151.2 155.5 5 Agency securities 11.3 10.9 10.9 11.5 11.6 12.0 10.9 10.8 10.3 6 Held by public 9.3 9.0 8.9 9.5 29.7 10.0 9.1 9.0 8.5 7 Held by agencies 2.0 1.9 2.0 2.0 1.9 1.9 1.8 1.8 1.8 8 Debt subject to statutory limit 493.0 534.2 577.8 621.6 635.8 654.7 670.3 675.6 698.5 9 Public debt securities 490.5 532.6 576.0 619.8 634.1 652.9 668.6 673.8 696.8 10 Other debt1 2.4 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 11 MEMO: Statutory debt limit 495.0 577.0 595.0 636.0 636.0 682.0 682.0 700.0 752.0 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 11997733 11997744 11997755 11997766 Aug. Sept. Oct. Nov. Dec. 1 Total gross public debt1 469.9 492.7 576.6 653.5 685.2 698.8 697.4 708.0 718.9 By type: 2 Interest-bearing debt 467.8 491.6 575.7 652.5 684.1 697.6 696.3 707.0 715.2 3 Marketable 270.2 282.9 363.2 421.3 438.1 443.5 447.4 454.9 459.9 4 Bills 107.8 119.7 157.5 164.0 154.3 156.1 156.2 156.7 161.1 5 Notes 124.6 129.8 167.1 216.7 238.1 241.7 245.6 251.1 251.8 6 Bonds 37.8 33.4 38.6 40.6 45.8 45.7 45.7 47.1 47.0 7 Nonmarketable2 197.6 208.7 212.5 231.2 245.9 254.1 248.9 252.1 255.3 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 21.4 21.8 21.1 21.7 22.2 10 Savings bonds and notes 60.8 63.8 67.9 72.3 75.5 75.8 76.2 76.6 77.0 11 Govt, account series5 108.0 119.1 119.4 129.7 136.3 140.1 136.9 138.6 139.8 By holder:6 12 U.S. Govt, agencies and trust funds, 129.6 141.2 139.3 147.1 151.9 155.5 152.2 13 F.R.Banks 78.5 80.5 87.9 97.0 98.4 9104.7 94.6 14 Private investors 261.7 271.0 349.4 409.5 434.9 438.6 450.6 15 Commercial banks 60.3 55.6 85.1 103.8 100.0 101.0 100.5 16 Mutual savings banks 2.9 2.5 4.5 5.7 6.0 6.1 6.0 17 Insurance companies 6.4 6.1 9.3 12.5 r14.1 14.5 14.7 18 Other corporations 10.9 11.0 20.2 26.5 24.5 23.9 23.8 19 State and local governments 29.2 29.2 33.8 41.6 52.7 53.5 54.5 Individuals: 20 Savings bonds 60.3 63.4 67.3 72.0 75.2 75.6 76.0 21 Other securities 16.9 21.5 24.0 28.8 28.5 28.3 24.4 22 Foreign and international7 55.5 58.4 66.5 78.1 91.9 95.1 100.0 23 Other miscellaneous investors8. . 19.3 23.2 38.6 40.5 42.1 40.7 46.7 1 Includes $3.7 billion of non-interest-bearing debt (of which $611 7 Consists of the investments of foreign balances and international million on Dec. 31, 1977, was not subject to statutory debt limitations). accounts in the United States. Beginning with July 1974, the figures exclude 2 Includes (not shown separately): Securities issued to the Rural non-interest-bearing notes issued to the International Monetary Fund. Electrification Administration and to State and local governments, de- 8 Includes savings and loan associations, nonprofit institutions, corpositary bonds, retirement plan bonds, and individual retirement bonds. porate pension trust funds, dealers and brokers, certain Govt, deposit 3 These nonmarketable bonds, also known as Investment Series B accounts, and Govt.-sponsored agencies. Bonds, may be exchanged (or converted) at the owner's option for 1 Vi 9 Includes a nonmarketable Federal Reserve special certificate for $2.5 per cent, 5-year marketable Treasury notes. Convertible bonds that have billion. 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 6 Data for F.R. Banks and U.S. Govt, agencies and trust funds are Bulletin. actual holdings; data for other groups are Treasury estimates. 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 11997755 11997766 1975 1976 Oct. Nov. Oct. Nov. All maturities 1 to 5 years 1 All holders 363,191 421,276 447,435 454,862 112,270 141,132 149,820 153,696 19,397 16,485 14,548 14,514 7,058 6,141 5,921 4,793 3 F. R. Banks 87,934 96,971 94,597 96,477 30,518 31,249 28,155 27,558 255,860 307,820 338,290 343,870 74,694 103,742 115,744 121,346 64,398 78,262 73,127 73,839 29,629 40,005 38,493 39,706 3,300 4,072 4,393 4,353 1,524 2,010 2,109 2,146 7,565 10,284 11,576 12,091 2,359 3,885 4,285 4,679 9,365 14,193 10,305 10,091 1,967 2,618 2,821 3,330 2,793 4,576 5,138 5,002 1,558 2,360 2,725 2,599 9,285 12,252 16,524 16,582 1,761 2,543 3,930 4,022 159,154 184,182 217,227 221,912 35,894 50,321 61,381 64,862 Total, within 1 year 5 to 10 years 12 All holders 199,692 211,035 217,765 223,139 26,436 43,045 48,599 45,337 13 U.S. Govt, agencies and trust funds 2,769 2,012 890 1,995 3,283 2,879 2,139 2,129 14 F. R. Banks 46,845 51,569 49,176 51,592 6,463 9,148 10,547 10,349 150,078 157,454 167,699 169,552 16,690 31,018 35,913 32,858 29,875 31,213 26,572 26,973 4,071 6,278 7,164 6,148 983 1,214 1,335 1,342 448 567 655 615 2,024 2,191 2,103 2,218 1,592 2,546 3,135 3,162 7,105 11,009 6,867 6,011 175 370 367 427 914 1,984 2,177 2,182 216 155 161 148 5,288 6,622 8,493 8,680 782 1,465 1,325 1,367 103,889 103,220 120,153 122,147 9,405 19,637 23,104 21,022 Bills, within 1 year 10 to 20 years 23 All holders 157,483 163,992 156,174 156,656 14,264 11,865 12,975 12,939 24 U.S. Govt, agencies and trust funds 207 449 112 112 4,233 3,102 3,102 3,102 25 F. R. Banks 38,018 41,279 36,240 37,192 1,507 1,363 1,467 1,473 26 Private investors 119,258 122,264 119,822 119,353 8,524 7,400 8,406 8,364 17,481 17,303 9,549 10,176 552 339 490 471 554 454 444 465 232 139 152 138 1,513 1,463 1,171 1,115 1,154 1,114 1,253 1,254 30 Nonfinancial corporations 5,829 9,939 5,239 4,640 61 142 136 134 518 1,266 976 860 82 64 57 56 32 State and local governments 4,566 5,556 6,876 6,851 896 718 918 867 33 All others 88,797 86,282 95,566 95,245 5,546 4,884 5,400 5,444 Other, within 1 year Over 20 years 34 All holders 42,209 47,043 61,592 66,483 10,530 14,200 18,276 19,751 35 U.S. Govt, agencies and trust funds 2,562 1,563 779 1,883 2,053 2,350 2,495 2,495 36 F. R. Banks 8,827 10,290 12,936 14,400 2,601 3,642 5,252 5,505 37 Private investors 30,820 35,190 47,877 50,199 5,876 8,208 10,529 11,751 12,394 13,910 17,023 16,797 271 427 409 541 429 760 890 877 112 143 142 142 511 728 931 1,103 436 548 800 778 1,276 1,070 1,628 1,371 57 55 114 189 396 718 1,201 1,322 22 13 18 18 43 State and local governments 722 1,066 1,617 1,829 558 904 1,858 1,645 44 All others 15,092 16,938 24,587 26,902 4,420 6,120 7,189 8,437 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 pi»portion reporting as of Nov. 30, 1977; (1) 5,490 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 DomesticN onfinancial Statistics • January 1978 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1977 1977, week ending Wednesday— IItteemm 11997744 11997755 11997766 Sept. Oct. Nov. Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 1 U.S. Govt, securities 3,579 6,027 10,449 9,987 11,231 11,086 10,889 13,207 9,990 9,277 9,618 8,840 By maturity: 2 Bills 2,550 3,889 6,676 66,,339911 6,916 66,,668899 55,,664422 8,205 6,189 6,590 5,773 5,699 3 Other within 1 year 250 223 210 211 291 257 246 236 187 382 259 223 4 1-5 years 465 1,414 2,317 2,267 2,355 2,136 2,095 2,423 2,014 1,508 2,304 1,689 5 5-10 years 256 363 1,019 785 1,320 1,372 1,802 1,588 1,139 541 818 814 6 Over 10 years 58 138 229 334 348 631 1,104 755 461 255 465 415 By type of customer: 7 U.S. Govt, securities dealers 652 885 1,360 1,190 1,195 1,157 1,002 1,175 1,131 1,422 1,167 1,186 8 U.S. Govt, securities brokers 965 1,750 3,407 33,,551166 4,204 3,912 3,947 4,877 3,623 2,520 3,282 2,823 9 Commercial banks 998 1,451 2,426 2,017 2,126 2,048 1,992 2,588 1,664 1,846 1,619 1,604 10 All others * 964 1,941 3,257 3,265 3,705 3,968 3,948 4,567 3,571 3,490 3,550 3,226 11 Federal agency securities.... 965 1,043 1,548 rl ,601 1,733 1,697 1,300 2,390 1,792 1,400 1,515 1,302 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— IItteemm 11997744 11997755 11997766 Sept. Oct. Nov. Oct. 19 Oct. 26 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Positions2 1111 UUUU....SSSS.... GGGGoooovvvvtttt,,,, sssseeeeccccuuuurrrriiiittttiiiieeeessss 2,580 5,884 7,592 5,011 3,913 4,351 3,536 4,701 4,155 4,378 5,005 4,075 2222 BBBBiiiillllllllssss 1,932 4,297 6,290 5,323 4,283 3,784 4,032 4,847 4,344 3,832 4,579 3,500 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr — 6 265 188 13 11 120 10 -37 43 166 105 103 4444 1111----5555 yyyyeeeeaaaarrrrssss 265 886 515 -378 -233 -135 -261 226 -104 -425 -437 -221 5555 5555----11110000 yyyyeeeeaaaarrrrssss 302 300 402 -41 -84 383 -182 -238 385 501 321 6666 OOOOvvvveeeerrrr 11110000 yyyyeeeeaaaarrrrssss 88 136 198 93 -64 199 -63 -97 -127 420 258 372 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss................ 1,212 943 729 r648 637 914 723 699 576 610 1,040 1,086 Sources of financing3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 3,977 6,666 8,715 10,424 8,362 9,209 8,341 8,463 8,363 8,185 9,101 10,207 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss:::: 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,032 1,621 1,896 922 876 914 469 859 457 624 917 1,540 11110000 OOOOuuuuttttssssiiiiddddeeee NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 1,064 1,466 1,660 2,365 1,954 1,802 2,243 1,682 1,899 1,985 1,752 1,642 11111111 CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnnssss1111 459 842 1,479 2,663 2,469 2,893 2,560 2,877 2,791 2,899 2,686 3,112 11112222 AAAAllllllll ooootttthhhheeeerrrrssss 1,423 2,738 3,681 4,473 3,063 3,599 3,069 3,046 3,216 2,677 3,747 3,914 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 1974 1975 1976 May June July Aug. Sept. Oct. 1 Federal and Federally sponsored agencies. 89,381 97,680 103,325 105,823 107,152 108,243 107,868 108,379 109,046 2 Federal agencies 12,719 19,046 21,896 22,316 22,220 22,232 22,322 23,055 23,143 3 Defense Department1 1,312 1,220 1,113 1,059 1,044 1,035 1,024 1,016 1,006 4 Export-Import Bank 2,3 2,893 7,188 7,801 8,596 8,742 8,742 8,742 9,246 9,246 5 Federal Housing Administration4 440 564 575 594 588 583 579 579 583 6 Government National Mortgage Association participation certificates 5 4,280 4,200 4,120 3,803 3,803 3,768 3,768 3,768 3,768 7 Postal Service 6 721 1,750 2,998 2,856 2,431 2,431 2,431 2,431 2,431 8 Tennessee Valley Authority 3,070 3,915 5,185 5,175 5,370 5,410 5,490 5,705 5,785 9 United States Railway Association6.... 3 209 104 233 242 263 288 310 324 10 Federally sponsored agencies 76,662 78,634 81,429 84,248 84,932 86,011 85,546 85,324 85,903 11 Federal home loan banks 21,890 18,900 16,811 16,851 16,921 17,328 17,196 17,162 17,325 12 Federal Home Loan Mortgage Corporation. 1,551 1,550 1,690 rl ,698 1,698 1,698 1,686 1,686 1,686 13 Federal National Mortgage Association .... 28,167 29,963 30,565 30,843 31,378 31,566 31,301 31,491 31,572 14 Federal land banks 12,653 15,000 17,127 18,137 18,137 18,719 18,719 18,719 19,118 15 Federal intermediate credit banks 8,589 9,254 10,494 11,174 11,418 11,654 11,786 11,693 11,623 16 Banks for cooperatives 3,589 3,655 4,330 5,113 4,948 4,604 4,356 4,061 4,052 17 Student Loan Marketing Association7 220 310 410 430 430 440 500 510 525 18 Other 3 2 2 2 2 2 2 2 2 MEMO ITEMS : 19 Federal Financing Bank debt6,8 4,474 17,154 28,711 31,007 30,820 32,443 33,800 35,418 36,722 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank3 4,595 5,208 5,273 5,420 5,420 5,420 5,924 5,924 21 Postal Service6 500 1,500 2,748 2,606 2,181 2,181 2,181 2,181 2,181 22 Student Loan Marketing Association7 220 310 410 430 430 440 500 510 525 23 Tennessee Valley Authority 895 1,840 3,110 3,350 3,545 3,585 3,665 3,880 3,960 24 United States Railway Association6 3 209 104 233 242 263 288 310 324 Other lending:9 25 Farmers Home Administration 2,500 7,000 10,750 12,250 12,900 13,650 14,465 14,615 15,295 26 Rural Electrification Administration. 566 1,415 1,864 2,042 2,105 2,184 2,382 2,467 27 Other 356 1,134 4,966 5,001 4,060 4,799 5,097 5,616 6,046 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. » 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 NonfinancialS tatistics • January 1978 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 Apr. May June July Aug. Sept. State and local government 1 AH issues, new and refunding 1 24,315 30,607 35,313 3,566 4,308 5,347 By type of issue: 2 General obligation 13,563 16,020 18,040 1,701 2,032 2,265 3 Revenue 10,212 14,511 17,140 1,862 2,272 3,079 4 Housing Assistance Administration 2 461 5 U.S. Govt, loans 79 76 133 By type of issuer: 6 State 4,784 7,438 7,054 769 875 1,476 7 Special district and statutory authority 8,638 12,441 15,304 1,388 1,836 1,873 8 Municipalities, counties, townships, school districts.... 10,817 10,660 12,845 1,407 1,593 1,994 9 Issues for new capital, total 23,508 29,495 32,108 2,939 3,781 4,456 By use of proceeds: 10 Education 4,730 4,689 4,900 249 497 807 11 Transportation 1,712 2,208 2,586 119 508 218 12 Utilities and conservation 5,634 7,209 9,594 703 1,235 1,202 13 Social welfare 3,820 4,392 6,566 658 438 816 14 Industrial aid 494 445 483 42 130 23 15 Other purposes 7,118 10,552 7,979 1,168 973 1,390 Corporate 16 All issues 3 38,313 53,619 53,356 3,639 3,735 5,321 4,074 3,322 3,905 17 Bonds 32,066 42,756 42,262 3,048 2,487 4,286 -3,379 2,765 3,279 By type of offering: 18 Public 25,903 32,583 26,453 1,961 1,600 2,045 2,360 1,947 2,059 19 Private placement. 6,160 10,172 15,808 1,087 887 2,241 1,019 818 1,220 By industry group: 20 Manufacturing 9,867 16,980 13,243 ,128 644 1,006 ,165 932 513 21 Commercial and miscellaneous. 1,845 2,750 4,361 180 112 363 526 380 623 22 Transportation 1,550 3,439 4,357 129 169 25 143 241 131 23 Public utility 8,873 9,658 8,297 602 581 1,237 480 347 ,014 24 Communication 3,710 3,464 2,787 324 294 371 258 45 319 25 Real estate and financial 6,218 6,469 9,222 684 688 1,284 807 819 679 26 Stocks. 6,247 10,863 11,094 591 1,248 1,035 695 557 626 By type: 27 Preferred. 2,253 3,458 2,789 163 212 332 327 178 347 28 Common. 3,994 7,405 8,305 428 1,036 703 368 379 279 By industry group: 29 Manufacturing 544 1,670 2,237 220 8 176 144 34 38 30 Commercial and miscellaneous. 940 1,470 1,183 114 126 437 66 94 86 31 Transportation 22 1 24 103 100 40 32 Public utility 3,964 6,235 6,101 172 1,031 229 363 150 403 33 Communication 217 1,002 776 10 45 19 45 3 34 Real estate and financial 562 488 771 75 ""84 45 3 279 55 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 Q1 Q2 Q3 Q4 All issues1 1 New issues 39,344 53,255 53,123 15,602 9,079 13,363 13,671 14,229 11,385 13,838 2 Retirements 9,935 10,991 12,184 3,211 2,576 3,116 2,315 3,668 2,478 3,723 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 4 New issues 6,255 8,583 9,109 2,336 2,111 2,549 1,403 3,159 1,826 2,721 25,098 31,886 29,884 9,124 4,543 7,047 8,001 7,084 6,875 7,924 6 Net change: Total By industry: 7,404 13,219 8,978 4,574 1,442 2,069 2,966 1,529 1,551 2,932 7 Manufacturing 1,116 1,605 2,259 483 221 528 203 726 610 720 8 Commercial and other2 341 2,165 3,078 429 147 1,588 985 488 1,092 513 9 Transportation, including railroad. 7,308 7,236 6,829 1,977 1,395 1,211 1,820 1,260 2,109 1,640 10 Public utility 3,499 2,980 1,687 810 472 429 498 953 335 -99 12 Real estate and financial 5,428 4,682 7,054 852 866 1,222 1,530 2,128 1,178 2,218 Common and preferred stock 13 New issues 7,980 12,787 14,129 4,142 2,425 3,768 4,267 3,985 2,684 3,193 14 Retirements 3,678 2,408 3,075 875 465 567 912 509 652 1,002 15 Net change: Total 4,302 10,377 11,055 3,266 1,960 3,200 3,355 3,477 2,032 2,191 By industry: 17 1,607 2,634 500 412 433 838 1,120 744 -68 17 Commercial and other2 -135 1,137 762 490 108 462 88 318 117 239 18 Transportation, including railroad -20 65 96 7 53 4 5 25 17 49 19 Public utility - 3,834 6,015 6,171 1,866 1,043 1,537 2,174 1,300 932 1,765 398 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 May June July Aug. Sept. Oct. Nov. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1 3,302 4,226 421 639 573 501 558 542 511 2 Redemptions of own shares2 3,686 6,802 531 510 515 493 469 519 430 3 Net sales -384 2,496 -110 129 58 8 89 23 81 4 Assets3 42,179 47,537 44,403 46,255 45,651 45,038 45,046 43,435 45,050 5 Cash position4 3,748 2,747 2,859 2,901 3,068 3,135 3,403 3,481 3,487 6 Other 38,431 44,790 41,544 43,354 42,583 41,903 41,643 39,954 41,563 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 • January 1978 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 AAccccoouunntt 11997744 11997755 11997766 Ql Q2 Q3 Q4 Ql Q2 Q3 126.9 123.5 156.9 153.5 159.2 159.9 154.8 161.7 174.0 172.8 2 Profits tax liability 52.4 50.2 64.7 63.1 66.1 65.9 63.9 64.4 69.7 69.3 3 Profits after tax 74.5 73.3 92.2 90.4 93.1 94.0 90.9 97.3 104.3 103.5 31.0 32.4 35.8 33.6 35.0 36.0 38.4 38.5 40.3 42.3 43.5 40.9 56.4 56.8 58.1 58.0 52.5 58.8 64.0 61.2 81.6 89.5 97.2 94.1 95.9 98.2 100.4 102.0 103.5 105.8 7 Net cash flow 125.1 130.4 153.6 150.9 154.0 156.2 152.9 160.8 167.5 167.0 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 Q2 Q3 Q4 Ql Q2 Q3 1 574.4 643.2 712.2 731.6 775.4 791.8 816.8 845.3 874.7 909.8 2 Cash 57.5 61.6 62.7 68.1 70.8 71.1 77.0 75.0 77.9 79.1 3 U.S. Govt, securities 10.2 11.0 11.7 19.4 23.3 23.9 26.4 27.3 24.1 24.1 4 Notes and accounts receivable 243.4 269.6 293.2 298.2 321.8 328.5 328.2 346.6 361.4 379.1 5 U.S. Govt.1 3.4 3.5 3.5 3.6 3.7 4.3 4.3 4.7 4.8 5.3 6 Other 240.0 266.1 289.7 294.6 318.1 324.2 323.9 342.0 356.6 373.8 7 Inventories 215.2 246.7 288.0 285.8 295.6 302.1 315.4 322.1 332.5 343.1 8 Other 48.1 54.4 56.6 60.0 63.9 66.3 69.8 74.3 78.8 84.5 9 Current liabilities 352.2 401.0 450.6 457.5 475.9 484.1 499.9 516.6 532.0 556.3 10 234.4 265.9 292.7 288.0 293.8 291.7 302.9 309.0 318.9 329.7 11 U.S. Govt.1 4.0 4.3 5.2 6.4 6.8 7.0 7.0 6.8 5.7 6.2 12 Other 230.4 261.6 287.5 281.6 287.0 284.7 295.9 302.2 313.2 323.5 13 Accrued Federal income taxes 15.1 18.1 23.2 20.7 22.0 24.9 26.8 28.6 24.5 26.9 14 Other 102.6 117.0 134.8 148.8 160.1 167.5 170.2 179.0 188.6 199.7 222.2 242.3 261.5 274.1 299.5 307.7 316.9 328.7 342.8 353.5 I Receivables from, and payables to, the U.S. Govt, exclude amounts SOURCE.—Securities and Exchange Commission, offset against each other on corporations' books. 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 Q4 1 All industries 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 Co o m 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 1? 3in9 .0n8o J lO O. 7 /U ft 1 Includes trade, service, construction, finance, and insurance. agriculture; real estate operators; medical, legal, educational, and cultural 2 Anticipated by business. service; and nonprofit organizations. NOTE.—Estimates for corporate and noncorporate business, excluding SOURCE.—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 QL 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 80.1 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 All other 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 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 21.6 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 Nov. 30, 1977 1977 1977 19771 Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. 1 Total 53,943 -240 1,522 499 11,702 12,461 12,655 11,942 10,939 12,156 2 Retail automotive (commercial vehicles) 11,630 239 152 146 1,004 942 961 765 790 815 3 Wholesale automotive 11,280 -960 741 --9966 4,233 5,488 5,104 5,193 4,747 5,200 4 Retail paper on business, industrial, and farm equipment 14,406 369 415 357 1,097 1,096 1,176 728 681 819 5 Loans on commercial accounts receivable... 3,913 19 -128 16 2,499 2,032 2,428 2,480 2,160 2,412 6 Factored commercial accounts receivable.... 2,294 -58 248 15 1,477 1,506 1,466 1,535 1,258 1,451 7 All other business credit 10,420 151 94 61 1,392 1,397 1,520 1,241 1,303 1,459 1 Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • January 1978 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1977 Item 1974 1975 1976 June July Aug. Sept. Oct. Nov. 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 53.1 53.7 54.9 56.0 r54.0 55.9 2 Amount of loan (thous. dollars) 29.8 33.3 35.9 39.5 40.0 40.8 41.7 r40.2 41.8 3 Loan/price ratio (per cent) 74.3 74.7 74.2 76.0 76.2 76.5 76.3 r76.1 76.6 4 Maturity (years) 26.3 26.8 27.2 27.2 27.9 28.2 28.2 '27.6 28.1 5 Fees and charges (per cent of loan amount)2. 1.30 1.54 1.44 1.25 1.31 1.30 1.34 rl. 35 1.36 6 Contract rate (per cent per annum) 8.71 8.75 8.76 8.78 8.79 8.81 8.82 r8.84 8.85 Yield (per cent per annum): 7 FHLBB series 3 8.92 9.01 8.99 8.98 99..0000 99..0022 9.04 9.07 9.07 8 HUD series4 9.22 9.10 8.99 9.00 9.00 9.00 9.00 9.00 9.05 SECONDARY MARKETS Yields (per cent per annum) on— 9 FHA mortgages (HUD series)5 9.55 9.19 8.82 8.74 8.74 8.74 8.72 8.78 8.78 10 GNMA securities6 8.72 8.52 8.17 7.95 7.95 8.03 8.03 8.16 8.19 FNMA auctions:7 11 9.31 9.26 8.99 8.75 8.72 8.76 8.74 8.74 8.85 12 Conventional loans 9.43 9.37 9.11 9.12 9.07 9.06 9.05 9.05 9.16 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 29,578 31,824 32,904 33,918 33,954 34,029 34,149 34,123 3344,,119922 14 FHA-insured 19,189 19,732 18,916 18,974 18,887 18,785 18,704 18,602 18,535 15 VA-guaranteed 8,310 9,573 9,212 9,509 9,449 9,388 9,344 9,287 9,267 16 Conventional 2,080 2,519 4,776 5,435 5,618 5,866 6,100 6,234 6,389 Mortgage transactions (during period) 17 Purchases 6,953 4,263 3,606 656 322 405 385 251 352 1188 Sales 4 2 8866 Mortgage commitments:8 19 Contracted (during period) 10,765 6,106 6,247 999 357 531 364 897 975 20 Outstanding (end of period) 7,960 4,126 3,398 5,854 5,062 4,717 3,522 3,702 4,192 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9 5,462.6 7,042.6 4,929.8 278.9 206.4 314.9 112.9 613.2 105.2 22 22,,337711..44 3,848.3 2,787.2 127.8 131.4 221.4 75.4 400.5 76.4 Conventional loans: 23 Offered 9 1,195.4 1,401.3 2,595.7 371.1 286.8 370.2 246.4 758.1 268.8 24 Accepted 656.5 765.0 1,879.2 263.0 184.4 236.7 184.4 529.0 193.2 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)1 o 25 Total 4,586 4,987 44,,226699 3,389 33,,448833 3,424 3,376 33,,440022 3,266 26 FHA/VA 1,904 1,824 1,618 1,502 1,481 1,463 1,443 1,424 1,406 27 Conventional 2,682 3,163 2,651 1,887 2,001 1,961 1,933 1,978 1,860 Mortgage transactions (during period) 28 Purchases 2,191 1,716 11,,117755 379 236 455 479 428 576 29 Sales 52 1,020 1,396 336 79 479 386 354 677 Mortgage commitments:11 30 Contracted (during period) 4,553 982 1,477 511 511 567 547 465 574 31 Outstanding (end of period) 2,390 111 333 1,293 1,350 1,352 1,353 1,329 1,233 1 Weighted averages based on sample surveys of mortgages originated securities, assuming prepayment in 12 years on pools of 30-year FHA/VA by major institutional lender groups. Compiled by the Federal Home Loan mortgages carrying the prevailing ceiling rate. Monthly figures are Bank Board in cooperation with the Federal Deposit Insurance Cor- unweighted averages of Monday quotations for the month. poration. 7 Average gross yields (before deduction of 38 basis points for mortgage 2 Includes all fees, commissions, discounts, and "points" paid (by servicing) on accepted bids in Federal National Mortgage Association's the borrower or the seller) in order to obtain a loan. auctions of 4-month commitments to purchase home mortgages, assuming 3 Average effective interest rates on loans closed, assuming prepayment prepayment in 12 years for 30-year mortgages. No adjustments are made at the end of 10 years. for FNMA commitment fees or stock related requirements. Monthly 4 Average contract rates on new commitments for conventional first figures are unweighted averages for auctions conducted within the month. mortgages, rounded to the nearest 5 basis points; from Dept. of Housing 8 Includes some multifamily and nonprofit hospital loan commitments and Urban Development. in addition to 1- to 4-family loan commitments accepted in FNMA's 5 Average gross yields on 30-year, minimum-downpayment, Federal free market auction system, and through the FNMA-GNMA Tandem Housing Administration-insured first mortgages for immediate delivery plans. in the private secondary market. Any gaps in data are due to periods of 9 Mortgage amounts offered by bidders are total bids received. adjustment to changes in maximum permissible contract rates. 10 Includes participations as well as whole loans. 6 Average net yields to investors on Government National Mortgage 11 Includes conventional and Government-underwritten loans. Association-guaranteed, mortgage-backed, fully-modified pass-through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1976 1977 Type of holder, and type of property 1972 1973 1974 1975 Q4 Ql Q2 Q3 1 All holders 603,417 682,321 742,512 801,537 r889,062 '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 r171,399 '174,937 180,260 185,526 5 Farm 35,758 41,253 46,288 50,877 r57,050 '59,296 61,815 63,856 6 Major financial institutions 450,000 505,400 542,560 581,193 '647,650 '662,390 688,798 715,168 7 Commercial banks1 99.314 119,068 132,105 136,186 '151,326 '754,628 161,128 168,528 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 4,015 4,970 5,150 r5,223 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*40 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 • January 1978 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1977 Holder, and type of credit 1974 1975 1976 May June July Aug. Sept. Oct. Nov. Amounts outstanding (end of period) 1 Total 157,454 164,955 185,489 192,828 196,998 199,971 204,358 207,294 209,141 212,074 By holder: 2 Commercial banks 75,846 78,667 89,511 93,875 96,149 97,794 100,059 101,564 102,504 103,469 3 Finance companies 36,087 35,994 38,639 40,127 40,712 41,398 41,987 42,333 42,704 43,322 4 Credit unions 21,895 25,666 30,546 32,704 33,750 34,122 35,077 35,779 35,993 36,488 5 Retailers1 17,933 18,002 19,052 17,911 18,032 18,137 18,475 18,725 18,961 19,629 6 Others2 5,693 6,626 7,741 8,211 8,355 8,520 8,760 8,894 8,978 9,166 By type of credit: 7 Automobile 52,871 55,879 66,116 70,857 72,829 74,304 76,027 77,207 77,845 78,757 8 Commercial banks 30,994 31,553 37,984 41,060 42,307 43,211 44,262 44,933 45,399 45,845 9 Indirect 18,687 18,353 21,176 22,606 23,258 23,735 24,277 24,717 24,972 25,228 10 Direct 12,306 13,200 16,808 18,453 19,050 19,476 19,985 20,216 20,427 20,616 11 Finance companies 10,623 11,155 12,489 13,023 13,219 13,597 13,783 13,930 13,998 14,205 12 Credit unions 10,869 12,741 15,163 16,234 16,754 16,938 17,412 17,761 17,867 18,113 13 Others 386 430 480 540 549 558 570 584 581 594 14 Mobile homes 14,618 14,423 14,572 14,540 14,627 14,713 14,812 14,880 14,929 14,999 15 Commercial banks 8,972 8,649 8,734 8,680 8,722 8,761 8,794 8,828 8,839 8,856 16 Finance companies 3,525 3,451 3,273 3,149 3,136 3,126 3,114 3,119 3,116 3,123 17 Home improvement 8,522 9,405 10,990 11,507 11,794 12,025 12,329 12,532 12,703 12,879 18 Commercial banks 4,694 4,965 5,554 5,744 5,889 6,022 6,158 6,265 6,377 6,447 Revolving credit: 19 Bank credit cards 8,281 9,501 11,351 11,287 11,563 11,754 12,227 12,651 12,829 13,096 20 Bank check credit 2,797 2,810 3,041 3,148 3,230 3,295 3,409 3,504 3,551 3,601 21 Allother 70,364 72,937 79,418 81,488 82,955 83,880 85,554 86,519 87,283 88,743 22 Commercial banks, total 20,108 21,188 22 Ml 23,955 24,437 24,752 25,209 25,383 25,510 25,626 23 Personal loans 13,771 14,629 15,669 16,464 16,749 16,922 17,238 17,373 17,452 17,555 24 Finance companies, total 21,590 21,238 22,749 23,827 24,223 24,538 24,951 25,143 25,448 25,850 25 Personal loans 16,985 17,263 18,554 19,214 19,540 19,808 20,118 20,256 20,498 20,852 26 Credit unions 9,174 10,754 12,799 13,703 14,141 14,297 14,697 14,991 15,081 15,289 27 Retailers 17,933 18,002 19,052 17,911 18,032 18,137 18,475 18,725 18,961 19,629 28 Others 1,559 1,755 1,971 2,092 2,121 2,157 2,221 2,277 2,283 2,350 Net change (during period) 3 29 Total 9,280 7,504 20,533 2,655 2,422 2,464 2,651 2,351 2,626 2,853 By holder: 30 Commercial banks 3,975 2,821 10,845 1,235 1,422 1,150 1,448 1,228 1,315 1,384 31 Finance companies 731 -90 2,644 460 182 524 321 378 487 543 32 Credit unions 2,262 3,771 4,880 665 519 368 472 458 469 566 33 Retailers 1 1,538 69 1,050 210 144 286 170 144 280 184 34 Others 2 774 933 1,115 84 154 136 240 143 75 177 By type of credit: 35 Automobile 500 3,007 10,238 1,247 963 1,069 1,054 1,105 850 1,241 36 Commercial banks -508 559 6,431 620 745 584 125 714 587 125 37 Indirect -310 -334 2,823 273 365 290 357 466 295 444 38 Direct -198 894 3,608 347 380 294 368 248 292 281 39 Finance companies -116 532 1,334 258 -28 275 65 128 52 242 40 Credit unions 1,123 1,872 2,422 352 244 208 237 228 222 263 41 Other 2 44 50 17 2 2 27 34 -11 10 42 Mobile homes 1,068 -195 150 -6 34 57 55 32 44 74 43 Commercial banks 632 -323 85 12 3 19 3 10 15 23 44 Finance companies 166 -73 -177 -24 -21 -12 -18 -3 -11 4 45 Home improvement 1,094 881 1,585 133 181 165 183 143 201 211 46 Commercial banks 611 271 588 66 75 76 62 11 115 99 Revolving credit: 47 Bank credit cards 1,443 1,220 1,850 192 238 184 315 279 287 243 48 Bank check credit 543 14 231 103 90 39 60 49 57 27 49 Allother 4,631 2,577 6,479 985 916 951 984 743 1,188 1,057 50 Commercial banks, total 1,255 1,080 1,659 242 271 248 283 99 254 261 51 Personal loans 898 858 1,040 170 180 143 161 56 142 183 52 Finance companies, total 746 -348 1,509 227 226 260 273 251 448 293 53 Personal loans 486 279 1,290 184 185 228 186 223 353 235 54 Credit unions 948 1,580 2,045 258 239 129 200 197 204 252 55 Retailers 1,538 69 1,050 210 144 286 170 144 280 184 56 Others 145 196 217 48 36 28 59 52 2 61 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 February 1978 BULLETIN. 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 May June July Aug. Sept. Oct. Nov. Extensions 3 1 Total 157,200 164,169 193,328 18,503 18,810 18,631 19,204 19,164 19,787 19,680 By holder: 2 Commercial banks 72,605 77,312 94,220 9,070 9,232 9,143 9,426 9,442 9,802 9,688 3 Finance companies 34,061 31,173 36,028 3,359 3,444 3,335 3,459 3,514 3,653 3,602 4 Credit unions 19,596 24,096 28,587 2,860 2,769 2,663 2,806 2,773 2,858 2,920 5 Retailers1 27,034 27,049 29,188 2,728 2,806 2,951 2,840 2,860 2,961 2,857 6 Others2 3,904 4,539 5,305 485 559 540 673 575 512 612 By type of credit: 7 Automobile 45,429 51,413 62,988 6,048 6,063 5,966 6,158 6,109 6,083 6,330 8 Commercial banks 26,406 28,573 36,585 3,416 3,527 3,553 3,616 3,640 3,642 3,717 9 Indirect 15,576 15,766 19,882 1,791 1,865 1,905 1,925 2,028 1,976 2,076 10 Direct 10,830 12,807 16,704 1,625 1,661 1,649 1,692 1,612 1,666 1,641 11 Finance companies 8,604 9,674 11,209 1,114 1,099 963 1,036 1,013 989 1,097 12 Credit unions 10,015 12,683 14,675 1,457 1,390 1,402 1,434 1,376 1,414 1,458 13 Others 404 483 518 60 47 48 72 80 38 58 14 Mobile homes 5,782 4,323 4,841 415 420 455 479 424 457 464 15 Commercial banks 3,486 2,622 3,071 275 244 267 267 261 270 280 16 Finance companies 1,376 764 690 50 48 55 55 51 61 54 17 Home improvement 5,211 5,556 6,736 636 686 671 733 679 718 761 18 Commercial banks 2,789 2,722 3,245 317 328 330 332 340 373 370 Revolving credit: 19 Bank credit cards 17,098 20,428 25,862 2,621 2,640 2,566 2,711 2,847 2,973 2,828 20 Bank check credit 4,227 4,024 4,783 506 521 499 510 485 487 492 21 All other 79,453 78,425 88,117 8,277 8,480 8,476 8,612 8,620 9,067 8,804 22 Commercial banks, total. 18,599 18,944 20,673 1,935 1,973 1,928 1,990 1,870 2,056 2,001 23 Personal loans 13,176 13,386 14,480 1,396 1,413 1,350 1,404 1,346 1,463 1,434 24 Finance companies, total. 23,796 20,657 24,087 2,188 2,289 2,309 2,361 2,440 2,596 2,441 25 Personal loans 17,162 16,944 19,579 1,744 1,850 1,836 1,870 1,938 2,044 1,914 26 Credit unions 8,560 10,134 12,340 1,233 1,225 1,113 1,207 1,240 1,282 1,285 27 Retailers..; 27,034 27,049 29,188 2,728 2,806 2,951 2,840 2,860 2,961 2,857 Others 1,463 1,642 1,830 193 187 175 214 211 172 221 Liquidations3 29 Total 147,920 156,665 172,795 15,849 16,388 16,167 16,553 16,814 17,160 16,826 By holder: 30 Commercial banks 68,630 74,491 83,376 7,835 7,810 7,992 7,978 8,214 8,487 8,305 31 Finance companies 33,330 31,263 33,384 2,899 3,261 2,811 3,138 3,135 3,166 3,059 32 Credit unions 17,334 20,325 23,707 2,195 2,250 2,295 2,333 2,316 2,389 2,354 33 Retailers i 25,496 26,980 28,138 2,518 2,662 2,665 2,670 2,716 2,681 2,673 34 Others2 3,130 3,606 4,191 401 405 404 433 432 437 435 By type of credit: 35 Automobile 44,929 48,406 52,750 4,801 5,100 4,897 5,104 5,005 5,234 5,089 36 Commercial banks 26,915 28,014 30,154 2,796 2,781 2,969 2,891 2,926 3,055 2,991 37 Indirect 15,886 16,101 17,059 1,518 1,500 1,615 1,568 1,562 1,681 1,632 38 Direct 11,029 11,913 13,095 1,278 1,281 1,354 1,324 1,364 1,374 1,360 39 Finance companies 8,720 9,142 9,875 856 1,127 688 970 885 937 855 40 Credit unions 8,892 10,811 12,253 1,106 1,146 1,194 1,197 1,148 1,193 1,195 41 Others 402 439 468 43 45 46 45 46 49 48 42 Mobile homes 4,715 4,517 4,691 421 386 397 424 392 413 390 43 Commercial banks 2,854 2,944 2,986 263 241 248 264 251 255 257 44 Finance companies 1,210 837 867 74 68 68 73 54 72 50 45 Home improvement 4,117 4,675 5,151 502 505 506 551 536 517 550 46 Commercial banks 2,178 2,451 2,657 251 253 254 270 263 257 272 Revolving credit: 47 Bank credit cards 15,655 19,208 24,012 2,430 2,403 2,382 2,396 2,567 2,687 2,585 48 Bank check credit 3,684 4,010 4,552 402 431 459 450 436 430 466 49 Allother 74,821 75,849 81,638 7,292 7,564 7,525 7,628 7,877 7,880 7,747 50 Commercial banks, total. 17,345 17,864 19,014 1,692 1,702 1,680 1,707 1,771 1,802 1,734 51 Personal loans 12,278 12,528 13,439 1,226 1,233 1,207 1,243 1,291 1,321 1,250 52 Finance companies, total, 23,050 21,005 22,578 1,961 2,063 2,049 2,089 2,189 2,148 2,148 53 Personal loans 16,676 16,665 18,289 1,560 1,666 1,609 1,684 1,714 1,692 1,678 54 Credit unions 7,613 8,554 10,295 975 986 984 1,008 1,043 1,078 1,033 55 Retailers 25,496 26,980 28,138 2,518 2,662 2,665 2,670 2,716 2,681 2,673 56 Others 1,318 1,446 1,613 146 151 146 155 158 170 159 i Excludes 30-day charge credit held by retailers, oil and gas companies, 2 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 • January 1978 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-year data are at seasonally adjusted annual rates. 1975 1976 1977 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1972 1973 1974 1975 1976 HI H2 HI H2 HI Nonfinancial sectors 1 Total funds raised 177.8 202.0 189.6 205.6 268.3 180.8 230.4 254.5 282.1 309.6 1 2 Excluding equities 167.2 194.3 185.8 195.5 257.8 170.3 220.8 241.1 274.4 300.8 2 By sector and instrument: 3 U.S. Govt 15.1 8.3 11.8 85.4 69.0 79.6 91.2 73.1 64.9 40.3 3 4 Public debt securities 14.3 7.9 12.0 85.8 69.1 80.4 91.3 73.0 65.3 40.9 4 5 Agency issues and mortgages .8 .4 -.2 -.4 —. 1 -.8 -.1 .1 -.3 -.6 5 6 All other nonfinancial sectors 162.7 193.8 177.8 120.2 199.2 101.1 139.2 181.4 217.1 269.3 6 7 Corporate equities 10.5 7.7 3.8 10.0 10.5 10.5 9.6 13.3 7.6 8.8 7 8 Debt instruments 152.2 186.1 174.0 110.1 188.8 90.7 129.6 168.0 209.5 260.5 8 9 Private domestic nonfinancial sectors 158.7 187.5 162.4 107.0 179.0 93.1 120.9 166.2 191.7 264.9 9 10 Corporate equities 10.9 7.9 4.1 9.9 10.5 10.3 9.5 13.3 7.7 8.2 10 11 Debt instruments 147.8 179.7 158.3 97.1 168.4 82.8 111.4 152.9 184.0 256.6 11 12 Debt capital instruments 102.3 105.0 98.7 95.8 122.7 93.8 97.8 111.7 133.7 163.5 12 13 State and local obligations 14.7 14.7 17.1 13.6 15.1 12.3 14.9 14.7 15.5 27.2 13 14 Corporate bonds 12.2 9.2 19.7 27.2 22.8 33.4 21.1 20.4 25.3 19.6 14 Mortgages: 15 Home 42.6 46.4 34.8 39.5 6633..66 33.4 4455..66 5577..11 70.2 85.6 15 16 Multifamily residential 12.7 10.4 6.9 * 1.6 .4 -.4 .6 2.6 4.6 16 17 Commercial 16.5 18.9 15.1 11.0 13.4 9.4 12.6 13.9 12.9 17.3 17 18 3.6 5.5 5.0 4.6 6.1 5.1 4.0 5.0 7.3 9.2 18 19 Other debt instruments 45.5 74.6 59.6 1.3 45.7 -11.0 13.6 41.2 50.3 93.2 19 20 Consumer credit 18.9 22.0 10.2 9.4 23.6 2.2 16.6 22.9 24.2 35.2 20 ?1 Bank loans n.e.c 18.9 39.8 29.1 -14.5 3.7 -20.9 -8.2 -.3 7.8 37.2 21 22 Open market paper .8 2.5 6.6 -2.6 4.0 -1.4 -3.8 6.4 1.6 5.0 22 23 Other 6.9 10.3 13.7 9.0 14.4 9.0 9.0 12.2 16.7 15.9 23 24 158.7 187.5 162.4 107.0 179.0 93.1 120.9 166.2 191.7 264.9 24 25 State and local governments 14.5 13.2 16.2 11.2 14.6 10.0 12.3 13.0 16.3 20.6 25 76 Households 66.6 79.1 49.2 48.6 89.8 37.3 59.9 83.9 95.6 129.6 26 27 Farm 5.8 9.7 7.9 8.7 11.0 8.7 8.8 10.6 11.6 16.9 27 28 Nonfarm noncorporate 14.1 12.8 7.4 2.0 5.2 -1.1 5.1 2.7 7.6 10.6 28 29 Corporate 57.7 72.7 81.8 36.6 58.3 38.3 34.8 56.1 60.5 87.2 29 30 Foreign 4.0 6.2 15.4 13.2 20.3 8.0 18.3 15.2 25.4 4.4 30 31 Corporate equities -.4 -.2 -.2 .1 * . 1 .1 * —. 1 .6 31 32 4.4 6.4 15.7 13.0 20.3 7.9 18.2 15.1 25.5 3.9 32 33 Bonds 1.0 1.0 2.1 6.2 8.4 5.7 6.8 7.3 9.5 4.3 33 34 2.9 2.8 4.7 3.7 6.7 -.4 7.8 3.4 10.0 -5.8 34 35 Open market paper -1.0 .9 7.3 .3 1.9 -.8 1.4 1.5 2.4 2.2 35 36 U.S. Govt, loans 1.5 1.7 1.6 2.8 3.3 3.4 2.2 2.9 3.6 3.1 36 Financial sectors 37 Total funds raised 28.3 51.6 39.4 14.0 28.6 15.1 12.8 27.8 29.4 64.0 37 By instrument: 38 U.S. Govt, related 8.4 19.9 23.1 13.5 18.6 14.5 12.6 18.6 18.6 25.7 38 39 Sponsored credit agency securities 3.5 16.3 16.6 2.3 3.3 1.9 2.8 4.5 2.1 10.1 39 40 Mortgage pool securities 4.9 3.6 5.8 10.3 15.7 11.5 9.2 14.2 17.2 17.9 40 41 .7 .9 -.4 1.1 .6 * -.7 -2.3 41 42 19.9 31.7 16.3 .4 10.0 ..6 .2 9.1 10.8 38.3 42 43 Corporate equities 2.8 1.5 .3 * .7 1 -.1 -.7 2.2 .9 43 44 Debt instruments 17.1 30.2 16.0 .4 9.2 .6 .3 9.8 8.6 37.4 44 45 5.1 3.5 2.1 2.9 5.8 2.3 3.5 7.0 4.5 8.2 45 46 Mortgages 1.7 -1.2 -1.3 2.3 2.1 1.4 3.2 1.4 2.8 3.0 46 47 Bank loans n.e.c 5.9 8.9 4.6 -3.6 -3.7 -4.7 -2.5 -3.0 -4.4 -2.7 47 48 Open market paper and Rp's 4.4 11.8 3.9 2.8 7.1 8.2 -2.6 6.1 8.1 25.4 48 49 * 7.2 6.7 -4.0 -2.0 -6.6 -1.3 -1.6 -2.4 3.5 49 By sector: 50 Sponsored credit agencies 3.5 16.3 17.3 3.2 22..99 3.0 3.4 4.5 1.4 7.8 50 51 Mortgage pools 4.9 3.6 5.8 10.3 15.7 11.5 9.2 14.2 17.2 17.9 51 52 19.9 31.7 16.3 .4 10.0 .6 .2 9.1 10.8 ^ 38.3 52 53 4.8 8.1 -1.1 1.7 7.4 5.7 -2.3 9.0 5.9 15.1 53 54 Bank affiliates .7 2.2 3.5 .3 -.8 .9 -.3 -1.3 -.3 1.3 54 55 Savings and loan associations 2.0 6.0 6.3 -2.2 * -6.8 2.3 .5 -.5 10.6 55 56 Other insurance companies .5 .5 .9 1.0 1.0 .9 1.0 1.0 1.0 1.0 56 57 Finance companies 6.2 9.4 4.5 .5 6.4 -1.4 2.4 5.7 7.1 14.9 57 58 REIT's 6.3 6.5 .6 -2.0 , -2.8 -2.0 -1.9 -2.5 -3.0 -2.9 58 59 Open-end investment companies -.5 -1.2 -.7 -.1 -1.0 .7 -.9 -2.5 .5 -1.1 59 6600 22..44 11..33 --..33 22..66 * --..77 ..22 --..55 6600 All sectors 61 Total funds raised, by instrument 206.1 253.7 229.0 219.5 296.8 195.9 243.2 282.2 311.4 373.6 61 62 Investment company shares -.5 -1.2 -.7 -.1 -1.0 .7 -.9 -2.5 .5 -1.1 62 63 13.8 10.4 4.8 10.2 12.2 9.8 10.5 15.1 9.3 10.8 63 64 Debt instruments 192.8 244.5 224.9 209.5 285.6 185.4 233.6 269.6 301.6 363.9 64 65 U.S. Govt, securities 23.6 28.3 34.3 98.2 88.1 93.1 103.2 91.9 84.3 68.4 65 66 State and local obligations 14.7 14.7 17.1 13.6 15.1 12.3 14.9 14.7 15.5 27.2 66 67 Corporate and foreign bonds 18.4 13.6 23.9 36.3 37.0 41.3 31.3 34.7 39.3 32.2 67 68 77.0 79.9 60.5 57.2 86.8 49.5 65.0 77.9 95.7 119.6 68 69 18.9 22.0 10.2 9.4 23.6 2.2 16.6 22.9 24.2 35.2 69 70 27.8 51.6 38.4 -14.4 6.7 -25.9 -2.9 . 1 13.4 28.7 70 71 Open market paper and Rp's 4.1 15.2 17.8 .5 13.0 6.1 -5.0 14.0 12.0 32.5 71 72 Other loans 8.4 19.1 22.7 8.7 15.3 6.9 10.5 13.4 17.2 20.1 72 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 1977 Transaction category, or sector 1972 1973 1974 1975 1976 HI H2 HI H2 HI 1 Total funds advanced in credit markets to 167.2 194.3 185.8 195.5 257.8 170.3 220.8 241.1 274.4 300.8 1 By public agencies and foreign: 19.8 34.1 52.7 44.3 54.6 55.0 33.6 53.2 56.0 74.0 2 7.6 9.5 11.9 22.5 26.8 33.4 11.6 27.1 26.5 31.7 3 7.0 8.2 14.7 16.2 12.8 16.9 15.5 12.1 13.5 20.0 4 5 FHLB advances to S&L's * 7.2 6.7 -4.0 -2.0 -6.6 -1.3 -1.6 -2.4 3.5 5 5.1 9.2 19.5 9.5 16.9 11.3 7.8 15.6 18.3 18.8 6 Totals advanced, by sector 7 US Govt 1.8 2.8 9.8 15.1 8.9 15.9 14.3 6.4 11.4 5.9 7 9.2 21.4 25.6 14.5 20.6 16.5 12.6 20.7 20.6 27.5 8 .3 9.2 6.2 8.5 9.8 7.6 9.5 14.5 5.2 11.6 9 8.4 .6 11.2 6.1 15.2 15.0 -2.7 11.6 18.8 28.9 10 11 Agency borrowing not included in line 1 8.4 19.9 23.1 13.5 18.6 14.5 12.6 18.6 18.6 25.7 11 Private domestic funds advanced 155.9 180.2 156.1 164.8 221.8 129.8 199.7 206.6 237.0 252.5 12 16.0 18.8 22.4 75.7 61.3 59.7 91.6 64.8 57.8 36.7 13 14.7 14.7 17.1 13.6 15.1 12.3 14.9 14.7 15.5 27.2 14 13.1 10.0 20.9 32.8 30.3 38.8 26.8 26.8 33.9 20.9 15 48.2 48.4 26.9 23.2 52.4 16.7 29.6 45.5 59.2 70.1 16 63.9 95.4 75.4 15.6 60.8 -4.3 35.5 53.2 68.3 101.1 17 * 7.2 6.7 -4.0 -2.0 -6.6 -1.3 -1.6 -2.4 3.5 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions 149.7 164.9 126.3 119.9 187.2 99.8 140.0 167.6 206.8 233.9 19 20 Commercial banking 70.5 86.5 64.6 27.6 58.0 14.4 40.7 44.5 71.5 80.1 20 21 Savings institutions 48.2 36.9 26.9 52.0 71.7 48.5 55.4 71.8 71.7 84.6 21 22 Insurance and pension funds 17.2 23.9 30.0 41.5 47.6 38.3 44.7 47.8 47.3 55.3 22 23 Other finance 13.9 17.5 4.7 -1.1 9.9 -1.4 -.7 3.4 16.3 13.9 23 24 Sources of funds 149.7 164.9 126.3 119.9 187.2 99.8 140.0 167.6 206.8 233.9 24 25 Private domestic deposits 100.8 86.5 69.4 90.9 122.8 90.3 91.5 106.1 139.5 122.8 25 26 Credit market borrowing 17.1 30.2 16.0 .4 9.2 .6 .3 9.8 8.6 37.4 26 27 Other sources 31.8 48.2 40.9 28.6 55.1 9.0 48.2 51.7 58.7 73.7 27 28 Foreign funds 5.3 6.9 14.5 -.4 3.1 -5.6 4.8 -2.6 8.8 -4.1 28 29 Treasury balances .7 -1.0 -5.1 -1.7 _ l -3.5 .1 2.9 -3.1 -1.1 29 30 Insurance and pension reserves 11.6 18.4 26.0 29.0 35 !8 26.4 31.5 35.1 36.5 46.2 30 31 Other net 14.1 23.9 5.4 1.7 16.4 -8.3 11.7 16.2 16.6 32.7 31 32 D Pr ir i e v c a t t e le d n o d m in e g s ti i c n n c o re n d f i i t n a m n a c r i k a e l ts i nvestors 23.3 45.5 45.9 45.3 43.8 30.6 60.0 48.8 38.8 56.0 32 3 3 3 3 3 6 3 4 7 5 C C U O St o S o t a h m r te e p m G r o a r e o n a r v d t c t e i l a o a s l c e n p a c d l a u p f r o i o e b t r r i l e e i s i g g a n t i b on o s n ds 2 4 9 3 3 . . . . . 9 1 4 9 0 1 1 5 6 9 2 1 . . . . . 8 4 5 5 3 1 1 4 4 8 8 0 . . . . . 8 7 2 2 0 2 5 6 8 3 2 . . . . . 5 1 2 3 2 1 1 4 4 4 9 1 . . . . . 0 0 7 4 8 1 6 7 5 1 0 . . . . . 1 0 2 5 8 3 5 5 4 6 8 . . . . . 5 6 7 0 4 2 1 4 6 2 3 0 . . . . . 7 9 6 9 8 1 1 5 3 6 1 2 . . . . . 5 1 1 3 8 1 1 1 9 6 8 1 . . . . . 5 7 4 4 0 3 3 3 3 3 5 7 3 4 6 38 Deposits and currency 105.2 90.4 75.7 97.1 130.3 96.0 98.2 111.0 149.5 127.1 38 39 Time and savings accounts 83.8 76.1 66.7 84.8 113.0 73.0 96.5 98.3 127.6 106.6 39 40 Large negotiable CD's 7.7 18.1 18.8 -14.0 -14.2 -27.8 -.2 -18.0 -10.4 -2.6 40 4 4 1 2 A O t t h s e a r v i a n t g c s o i m ns m ti e t r u c t i i a o l n s b anks 4 3 5 0 . . 4 6 2 2 8 9 . . 5 6 2 2 6 1 . . 1 8 5 3 9 9 . . 4 4 5 69 8 . . 1 1 6 3 1 9 . . 5 3 5 3 7 9 . . 4 4 6 5 6 0 . . 1 2 6 72 6 . . 1 0 6 4 7 1. . 9 4 4 4 2 1 43 Money 21.4 14.3 8.9 12.3 17.2 23.0 1.7 12.7 21.6 20.5 43 44 Demand deposits 17.0 10.3 2.6 6.1 9.9 17.3 -5.0 7.8 11.9 16.2 44 45 Currency 4.4 3.9 6.3 6.2 7.3 5.7 6.7 4.9 9.8 4.3 45 46 Total of credit market instruments, deposits 128.5 136.0 121.5 142.4 174.0 126.6 158.2 159.8 188.1 183.1 46 47 Public support rate (in per cent) 11.8 17.5 28.4 22.7 21.2 32.3 15.2 22.1 20.4 24.6 47 48 Private financial intermediation (in per cent) 96.1 91.5 80.9 72.8 84.4 76.9 70.1 81.1 87.3 92.6 48 49 Total foreign funds 13.7 7.5 25.7 5.8 18.3 9.4 2.1 9.0 27.6 24.9 49 MEMO : Corporate equities not included above 13.3 9.2 4.1 10.0 11.2 10.5 9.5 12.6 9.8 9.7 50 51 Mutual fund shares -.5 -1.2 -.7 -.1 -1.0 .7 -.9 -2.5 .5 -1.1 51 13.8 10.4 4.8 10.2 12.2 9.8 10.5 15.1 9.3 10.8 52 53 Acquisitions by financial institutions 15.3 13.3 5.8 9.4 12.3 10.7 8.1 12.6 12.0 6.5 53 --22..11 -4.1 -1.6 .6 -1.1 -.2 1.4 * -2.2 3.3 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 • January 1978 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1977 MMeeaassuurree 11997744 1975 1976 May June July Aug. Sept. Oct. Nov. Dec. 129.3 117.8 129.8 137.0 137.8 138.7 138.1 138.5 138.8 139.3 139.6 Market groupings: 129.3 119.3 129.3 136.5 137.3 138.7 138.4 138.8 138.9 139.3 140.0 3 Final, total 125.1 118.2 127.2 134.7 135.4 136.8 136.3 136.8 136.6 137.0 137.6 4 Consumer goods 128.9 124.0 136.2 143.1 143.8 145.4 144.7 144.9 145.2 145.7 146.2 120.0 110.2 114.6 123.2 124.1 124.8 124.9 125.6 124.9 125.3 126.0 135.3 123.1 137.2 143.5 144.7 146.3 146.1 146.5 147.0 147.9 149.2 7 Materials.... 132.4 115.5 130.6 137.8 138.7 138.9 137.6 137.9 138.8 139.2 139.1 Industry groupings: 8 Manufacturing 129.4 116.3 129.5 137.1 137.8 138.5 138.6 139.0 139.2 139.6 140.4 Capacity utilization (per cent)1 in— 9 Manufacturing 84.2 73.6 80.2 82.8 83.0 83.1 82.9 82.9 82.8 82.8 83.0 10 Industrial materials industries 87.7 73.6 80.4 82.7 83.0 82.9 82.0 82.0 82.3 82.4 82.1 11 Construction contracts2 173.9 162.3 190.2 317.0 284.0 218.0 267.0 279.0 244.0 258.0 12 Nonagricultural employment, total3 119.1 '117.0 120.6 124.4 124.7 125.1 125.2 125.7 125.9 126.4 126.7 13 Goods-producing, total 106.2 '97.1 100.3 104.5 104.7 104.9 104.5 104.7 105.0 105.4 105.5 14 Manufacturing, total 103.1 94.3 97.5 100.8 100.9 101.1 100.8 100.8 101.1 101.4 102.2 15 Manufacturing, production-worker 102.1 91.3 95.2 98.9 98.9 '98.9 98.4 98.5 98.8 99.2 100.1 16 Service-producing 126.1 127.8 131.7 135.3 135.6 136.2 136.6 137.1 137.3 137.8 113388..33 17 Personal income, total4 184.3 200.0 220.7 242.1 243.3 245.6 '247.2 '249.2 '252.6 254.9 18 Wages and salary disbursements 178.9 188.5 208.6 229.7 230.8 232.3 '233.4 '235.2 '238.7 240.0 19 Manufacturing . . 157.6 157.3 177.7 198.5 220000..44 220011..22 200.7 220022..22 ''220055..11 220066..88 20 Disposable personal income . 180.8 199.2 217.8 239.4 '241,3 21 Retail sales 5 170.1 184.6 203.5 221.6 221.0 223.7 225.5 225.4 '232.2 '234.9 233.3 Prices: 6 22 Consumer 147.7 161.2 170.5 '180.6 '181.8 '182.6 '183.3 '184.0 '184.5 185.4 23 Wholesale 116600..11 117744..11 118822..99 ''119955..22 ''119944..44 '194.9 ''119944..66 ''119955..88 ''119966..33 119977..00 119988..22 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'fbr 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 1977 1977 1977 Series Ql Q2 Q3 r Q4 Ql Q2 Q3 | Q4 Ql Q2 Q3 ' Q4 Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing 133.1 136.9 138.7 139.7 164.0 165.6 167.1 168.7 81.2 82.7 83.0 82.8 2 Primary processing 140.1 146.3 147.4 148.4 170.2 171.8 173.5 175.1 82.3 85.1 85.0 84.8 129.3 132.0 134.2 135.2 160.7 162.2 163.8 165.3 80.5 81.4 81.9 81.8 3 Advanced processing 133.1 137.7 138.2 139.0 165.5 166.6 167.8 168.9 80.4 82.6 82.4 82.3 4 Materials 129.2 135.1 136.0 137.5 169.0 170.3 171.6 172.8 76.5 79.4 79.2 79.6 5 Durable goods 108.6 116.4 109.3 144.8 145.1 145.3 75.0 80.2 75.2 6 Basic metal 149.5 154.6 154.6 155.7 175.6 177.2 178.8 i80.4 85.1 87.2 86.4 ' '86.3' 7 Nondurable goods 153.9 159.9 159.4 160.3 183.6 185.4 187.1 188.9 83.8 86.3 85.2 •84.8 8 Textile, paper, and chemical 111.3 110.9 112.4 141.4 141.9 142.5 78.7 78.1 78.9 9 Textile 111133331111....7777 111133334444....3333 111133335555....1111 111144448888....9999 111155550000....1111 111155551111....3333 88888888....4444 88889999....5555 88889999....3333 10 Paper 111188881111....6666 111199991111....8888 111188889999....8888 222211116666....2222 222211118888....7777 222222221111....2222 88884444....0000 88887777....7777 88885555....8888 11 Chemical 111122222222....0000 111122222222....6666 111122223333....4444 111144444444....3333 111144444444....7777 111144445555....2222 88884444....5555 88884444....8888 88885555....0000 12 Energy 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 June July Aug. Sept. Oct.r Nov.r Dec. Household survey data 1111 NNNNoooonnnniiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnaaaallll ppppooooppppuuuullllaaaattttiiiioooonnnn1111 150,827 153,449 156,048 158,456 158,682 158,899 159,114 159,334 159,522 159,736 2222 LLLLaaaabbbboooorrrr ffffoooorrrrcccceeee ((((iiiinnnncccclllluuuuddddiiiinnnngggg AAAArrrrmmmmeeeedddd FFFFoooorrrrcccceeeessss))))1111 93,240 94,793 96,917 99,770 99,440 99,834 99,999 100,236 101,130 101,055 3333 CCCCiiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 91,011 92,613 94,773 97,641 97,305 97,697 97,868 98,102 98,998 98,926 EEEEmmmmppppllllooooyyyymmmmeeeennnntttt:::: 4444 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll iiiinnnndddduuuussssttttrrrriiiieeeessss2222 82,443 81,403 84.188 87,341 87,348 87,519 87,880 87,958 88,818 89,258 5555 AAAAggggrrrriiiiccccuuuullllttttuuuurrrreeee 3,492 3,380 3; 297 3,338 3,213 3,252 3,215 3,272 3,362 3,331 UUUUnnnneeeemmmmppppllllooooyyyymmmmeeeennnntttt:::: 6666 NNNNuuuummmmbbbbeeeerrrr 5,076 7,830 7,288 6,962 6,744 6,926 6,773 6,872 6,818 6,337 7777 RRRRaaaatttteeee ((((ppppeeeerrrr cccceeeennnntttt ooooffff cccciiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee)))) 5.6 8.5 7.7 7.1 6.9 7.1 6.9 7.0 6.9 6.4 8888 NNNNooootttt iiiinnnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 57,587 58,655 59,130 58,686 59,242 59,064 59,114 59,099 58,391 58,682 Establishment survey data 9999 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll ppppaaaayyyyrrrroooollllllll eeeemmmmppppllllooooyyyymmmmeeeennnntttt3333 78,419 77,052 79,436 82,157 82,407 82,474 82,763 82,902 83,222 83,439 11110000 MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 20,048 18,347 18,955 19,611 19,666 19,594 19.612 19,666 19,717 19,876 11111111 MMMMiiiinnnniiiinnnngggg 694 745 783 856 833 818 856 859 863 713 11112222 CCCCoooonnnnttttrrrraaaacccctttt ccccoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn 3,963 3,515 3,594 3.888 3,913 3,893 3,892 3,911 3,946 3,964 11113333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn aaaannnndddd ppppuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttiiiieeeessss.... 4,696 4,499 4,510 4,588 A, 512 4,581 4,616 4.610 4,630 4,660 11114444 TTTTrrrraaaaddddeeee 17,016 16,999 17,690 18,264 18,322 18,377 18,431 18,414 18,486 18,511 11115555 FFFFiiiinnnnaaaannnncccceeee 4,209 4,223 4,315 4,494 4,506 4,524 4,545 4,572 4,600 4,618 11116666 SSSSeeeerrrrvvvviiiicccceeee 13,617 14,007 14,642 15,260 15,372 15,448 15,482 15,533 15,601 15,676 11117777 GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 14,176 14,719 14,948 15,196 15,223 15,239 15,329 15,337 15,379 15,421 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 • January 1978 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 11996677 1976 1977 GGrroouuppiinngg pprroo-- 11997766 ppoorr-- aavveerr-ttiioonn aaggee Oct. Nov. Dec. May June July Aug. Sept.r Oct. Nov.f Dec/ Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 129.8 130.2 131.5 133.0 137.0 137.8 138.7 138.1 138.5 138.8 139.3 139.6 2 Products 60.71 129.3 129.2 131.3 133.4 136.5 137.3 138.7 138.4 138.8 138.9 139.3 140.0 3 Final products 47.82 127.2 126.7 129.3 131.5 134.7 135.4 136.8 136.3 136.8 136.6 137.0 137.6 4 Consumer goods 27.68 136.2 135.9 138.4 141.3 143.1 143.8 145.4 144.7 144.9 145.2 145.7 146.2 5 Equipment... 20.14 114.6 114.2 116.8 118.0 123.2 124.1 124.8 124.9 125.6 124.9 125.3 126.0 6 Intermediate products 12.89 137.2 138.8 139.0 140.5 143.5 144.7 146.3 146.1 146.5 147.0 147.9 149.2 7 Materials 39.29 130.6 131.8 131.9 132.0 137.8 138.7 138.9 137.6 137.9 138.8 139.2 139.1 Consumer goods 8 Durable consumer goods 7.89 141.4 138.9 143.7 150.5 152.2 155.8 158.0 154.7 155.6 157.2 155.6 155.9 9 Automotive products 2.83 154.8 147.8 161.6 178.8 172.8 179.8 184.8 Ml.2 177.0 180.1 173.7 173.5 10 Autos and utility vehicles 2.03 149.8 136.3 154.0 176.9 167.4 177.4 184.1 173.1 172.6 176.7 167.7 166.7 11 Autos 1.90 132.0 120.2 138.4 156.3 148.5 156.8 161.4 150.9 151.6 154.3 147.5 143.6 12 Auto parts and allied goods .80 167.6 176.6 180.5 183.4 186.6 185.8 186.6 187.3 188.1 189.0 189.2 191.0 13 Home goods 5.06 133.9 133.9 133.7 134.5 140.6 142.3 142.9 142.1 143.6 144.4 145.3 146.2 14 Appliances, A/C, and TV 1.40 114.6 115.7 114.9 110.3 131.0 133.1 130.1 129.6 129.4 129.8 133.1 113333..00 15 Appliances and TV 1.33 117.2 118.5 117.3 112.3 134.8 136.8 134.4 133.0 134.1 132.9 133.7 16 Carpeting and furniture 1.07 144.1 146.2 143.6 144.7 147.3 151.2 154.1 154.8 159.0 160.0 158.9 17 Misc. home goods 2.59 140.1 138.6 139.9 143.6 143.1 143.6 145.1 143.6 144.9 145.8 146.2 148.0 18 Nondurable consumer goods 19.79 134.1 134.7 136.2 137.6 139.5 139.1 140.3 140.6 140.7 140.5 141.6 114422..22 19 Clothing 4.29 124.0 123.3 123.1 124.1 125.5 125.7 124.1 126.4 128.3 128.9 20 Consumer staples 15.50 136.9 138.0 139.8 141.3 143.4 142.9 144.8 144.6 144.1 143.8 145:6 MM55 .. 55 21 Consumer foods and tobacco 8.33 130.7 133.1 132.4 131.8 135.0 135.4 137.1 137.9 137.1 136.2 137.0 22 Nonfood staples 7.17 144.1 143.7 148.2 152.3 153.2 151.7 153.8 152.4 152.4 152.7 154.4 115544..77 23 Consumer chemical products.... 2.63 166.4 168.3 173.7 177.5 180.8 179.3 179.4 181.8 182.5 182.3 185.4 24 Consumer paper products 1.92 113.3 110.9 114.2 116.6 118.4 116.3 117.4 117.0 116.4 117.7 118.0 25 Consumer energy products 2.62 144.4 142.9 147.6 153.1 150.8 149.8 115544..99 114488..99 148.6 114488..99 115500..00 26 Residential utilities 1.45 151.1 148.7 153.9 162.1 Equipment 27 Business equipment 12.63 136.3 135.7 140.1 142.3 148.9 150.1 151.2 151.1 152.1 152.3 152.7 153.3 28 Industrial equipment 6.77 128.0 129.6 131.1 132.3 138.4 140.0 140.7 140.4 141.4 141.6 142.2 143.1 29 Building and mining equipment. . . 1.44 177.7 181.2 181.5 183.7 205.3 208.1 210.6 203.9 204.5 204.9 203.5 204.8 30 Manufacturing equipment 3.85 106.5 108.1 109.9 110.8 112.8 115.0 114.3 115.3 117.6 118.8 119.3 120.1 31 Power equipment 1.47 135.3 136.0 137.0 137.9 139.9 139.0 141.2 143.7 141.4 139.2 141.7 142.5 32 Commercial transit, farm equipment. 5.86 145.8 142.6 150.6 154.1 161.2 161.9 163.3 163.4 164.4 164.6 164.7 165.2 33 Commerical equipment 3.26 173.5 177.5 179.6 184.3 191.1 191.4 191.7 193.0 193.7 194.9 196.1 197.2 34 Transit equipment 1.93 104.1 97.6 107.8 108.0 116.5 118.5 121.5 121.9 125.1 121.4 119.2 111199..00 35 Farm equipment .67 131.4 102.0 132.4 140.3 144.4 143.2 144.6 139.2 134.9 141.5 143.0 36 Defense and space equipment 7.51 78.4 78.0 77.6 77.2 80.0 80.3 80.4 80.8 80.9 78.9 79.2 79.9 Intermediate products 37 Construction supplies 6.42 132.6 134.8 135.8 135.5 138.7 139.9 141.2 141.7 143.2 144.4 146.0 147.1 38 Business supplies 6.47 141.8 142.8 141.9 145.3 148.4 149.6 151.3 150.6 149.7 149.7 149.8 39 Commercial energy products 1.14 157.1 155.4 156.2 162.7 165.8 164.2 168.2 165.0 162.7 162.5 162.1 Materials 40 Durable goods materials 20.35 126.8 128.3 128.2 128.7 135.2 136.4 136.8 135.4 135.7 137.0 137.3 138.3 41 Durable consumer parts 4.58 121.6 118.4 126.2 126.3 132.0 134.5 137.2 135.2 135.8 136.0 136.7 137.7 42 Equipment parts 5.44 133.9 138.0 137.2 138.8 141.7 143.0 145.0 145.6 146.8 147.2 147.9 149.0 43 Durable materials n.e.c 10.34 125.5 127.5 124.4 124.3 133.2 133.8 132.4 130.1 129.8 132.2 131.9 133.0 44 Basic metal materials 5.57 110.9 172.0 105.5 104.8 117.8 116.3 112.6 108.7 106.8 110.1 108.5 45 Nondurable goods materials 10.47 146.3 147.5 147.3 145.8 155.4 154.7 154.1 155.1 153.9 154.7 155.7 156.7 46 Textile, paper, and chem. mat 7.62 151.1 152.5 151.4 150.3 160.7 160.1 158.9 159.6 159.0 159.9 160.0 160.9 47 Textile materials 1.85 115.1 112.6 110.0 113.7 111.8 109.0 110.1 112.2 114.5 119.0 118.7 48 Paper materials 1.62 130.8 132.1 131.0 127.6 136.2 134.4 134.3 135.7 135.2 134.4 133.2 49 Chemical materials 4.15 175.1 178.3 178.1 175.5 192.2 192.7 190.3 190.1 188.2 188.1 189.0 50 Containers, nondurable 1.70 142.7 141.7 145.9 143.8 152.3 152.4 152.4 156.2 151.2 150.7 155.9 51 Nondurable materials n.e.c 1.14 119.9 122.4 121.3 119.8 123.1 122.9 124.9 122.4 124.1 125.5 127.1 52 Energy materials 8.48 120.2 120.8 121.9 123.4 122.3 124.3 125.2 121.4 123.5 123.9 123.3 53 Primary energy 4.65 107.1 108.6 106.7 107.0 106.6 109.7 108.9 106.8 110.0 111.7 110.5 54 Converted fuel materials 3.82 136.2 135.5 140.3 143.4 141.4 142.0 145.1 139.1 140.0 138.7 138.9 Supplementary groups 55 Home goods and clothing 9.35 129.4 129.0 128.8 129.7 133.6 134.7 134.3 134.9 136.5 137.3 138.1 139.0 56 Energy, total. 12.23 128.8 128.8 130.6 133.3 132.5 133.5 135.6 131.4 132.5 132.8 132.6 130.1 57 Products. 3.76 148.2 146.8 150.2 156.0 155.3 154.1 158.9 153.7 153.0 153.0 153.6 58 Materials. 8.48 120.2 120.8 121.9 123.4 112222..33 112244..33 112255..22 112211..44 112233..55 112233..99 112233..33 For NOTE see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1976 1977 Grouping SIC pro- 1976 code por- avertion age Oct. Nov. Dec. May June July Aug. Sept.r Oct. Nov.p Dec.® Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 131.6 132.5 133.8 135.4 137.1 138.8 139.4 134.4 135.1 135.3 136.0 134.3 2 Mining 6.36 114.2 116.1 115.3 115.4 119.5 122.8 119.8 115.4 118.0 119.1 118.3 113.4 3 Utilities 5.69 151.0 150.8 154.6 157.9 156.7 156.8 161.4 155.7 154.1 153.5 155.7 157.4 4 Electric 3.88 167.6 167.0 171.8 176.1 5 Manufacturing., 87.95 129.5 129.8 131.4 132.5 137.1 137.8 138.5 138.6 139.0 139.2 139.6 140.4 6 Nondurable.. 35.97 140.9 141.9 143.0 143.3 148.5 148.4 148.6 149.4 149.5 149.4 150.3 151.1 7 Durable 51.98 121.7 121.4 123.4 125.0 129.3 130.5 131.6 131.3 131.7 132.3 132.2 133.0 Mining 8 Metal mining 10 .51 122.8 126.1 124.5 126.8 120.5 121.3 101.9 70.0 71.4 79.8 84.6 9 Coal 11,12 .69 117.2 126.4 122.1 120.6 122.4 133.4 120.7 113.6 133.0 141.4 140.6 74.6 10 Oil and gas extraction.... 13 4.40 112.0 112.5 112.3 112.8 118.3 121.3 120.6 119.3 119.6 118.9 117.2 111177..88 11 Stone and earth minerals. 14 .75 118.3 120.0 120.8 118.0 123.0 122.5 126.7 125.0 126.7 126.7 128.3 Nondurable manufactures 12 Foods 8.75 132.3 134.8 134.3 132.9 138.3 136.9 138.3 139.3 138.3 137.6 138.4 13 Tobacco products .67 117.9 118.3 119.6 119.2 105.2 119.2 114.5 117.0 113.5 113.5 14 Textile mill products ... 2.68 136.4 134.2 133.3 133.7 136.0 135.4 137.2 136.6 140.7 143.2 143.6 15 Apparel products 3.31 122.2 122.9 122.7 124.9 123.5 122.1 121.1 124.1 127.7 129.2 16 Paper and products 3.21 133.0 132.3 132.5 131.4 139.5 139.3 139.2 140.3 139.1 137.7 138.0 139.4 17 Printing and publishing 4.72 120.6 119.3 119.7 123.0 124.4 124.1 124.9 125.0 124.2 124.8 124.7 126.5 18 Chemicals and products 7.74 169.3 170.7 173.7 173.1 182.8 183.5 182.6 182.6 181.3 180.8 183.0 19 Petroleum products 1.79 133.1 130.3 135.8 138.9 142.4 140.0 140.4 139.9 141.9 141.2 141.5 i42.0 20 Rubber & plastic products . 2.24 200.2 211.1 215.5 216.9 232.4 235.2 235.2 237.4 239.5 237.2 240.0 21 Leather and products .86 80.9 77.2 75.8 74.2 76.2 74.1 74.1 74.5 74.0 76.8 76.8 Durable manufactures 22 Ordnance, pvt. & govt.... 19,91 3.64 72.7 72.3 71.6 71.3 74.4 74.1 75.0 75.5 75.1 74.0 73.7 74.7 23 Lumber and products 24 1.64 125.1 129.6 129.5 128.1 133.0 132.4 132.9 131.8 137.1 136.2 137.4 24 Furniture and fixtures 25 1.37 132.7 134.5 133.7 135.7 137.5 139.9 143.0 142.9 145.6 146.5 146.6 25 Clay, glass, stone products. 32 2.74 137.1 139.9 143.2 142.8 145.0 147.7 148.0 148.8 145.5 147.3 150.9 26 Primary metals 33 6.57 108.9 109.9 104.6 101.5 117.1 114.7 114.4 112.5 109.0 113.7 111.9 111.2 27 Iron and steel 331,2 4.21 104.9 105.1 100.3 93.4 111.0 109.2 110.9 110.6 104.6 108.1 105.6 28 Fabricated metal products. 34 5.93 123.3 123.5 126.7 128.1 128.2 130.8 132.0 134.0 133.6 134.4 135.2 136.0 29 Nonelectrical machinery... 35 9.15 135.0 134.3 137.5 141.5 142.6 144.0 145.7 145.2 147.4 148.2 148.9 150.4 30 Electrical machinery 36 8.05 131.6 135.0 135.7 135.1 141.8 142.6 143.6 143.9 144.6 144.2 145.1 146.6 31 Transportation equipment. . 37 9.27 110.6 104.3 112.7 117.4 120.3 123.7 125.6 124.3 125.5 124.1 121.9 122.2 32 Motor vehicles & parts... 371 4.50 140.7 128.4 145.5 155.0 157.7 163.2 166.2 164.4 165.6 167.9 163.0 161.9 33 Aerospace & misc. tr. eq. 372-9 4.77 82.2 81.6 81.7 81.9 85.2 86.5 87.3 86.5 87.7 82.8 83.1 84.7 34 Instruments 38 2.11 148.2 150.2 150.3 155.8 157.4 158.2 159.0 158.3 160.3 161.8 161.3 162.0 35 Miscellaneous mfrs 39 1.51 143.5 142.4 143.7 146.8 148.0 148.4 150.4 147.5 150.7 149.9 151.2 152.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total. . 1507.4 550.4 548.1 558.7 571.2 582.2 585.9 590.5 590.2 590.1 591.5 593.4 595.6 37 F- inal ' products , i390.9 425.7 421.6 432.6 443.8 451.0 453.7 457.8 456.9 456.8 458.4 459.1 460.9 38 Consumer goods. 1277.5 301.6 300.4 306.4 315.1 316.3 318.9 321.5 320.0 319.1 320.4 321.8 322.3 39 Equipment . U13.4 124.0 121.3 126.4 128.4 134.6 134.9 136.2 137.0 137.6 137.9 137.3 138.6 40 Intermediate products. . U16.6 124.8 126.2 126.4 127.1 131.4 131.8 132.8 133.1 133.5 133.4 134.3 134.9 i 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 June 1976 which may be obtained from the Publications Services, Board of Governors BULLETIN, 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 • January 1978 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates. Exceptions noted. 1977 Item 1974 1975 1976 May June July Aug.' Sept.' Oct. Nov.f Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,074 927 1,296 1,615 1,678 1,639 1,772 1,695 1,850 1,891 2 1-family 644 669 894 1,077 1,105 1,089 1,156 1,135 1,216 1,260 3 2-or-more-family 431 278 402 538 573 550 616 560 634 631 4 Started 1,338 1,160 1,540 1,937 1,897 2,083 2,029 2,065 2,224 2,105 5 1-family 888 892 1,163 1,455 1,389 1,437 1,453 1,523 1,581 1,535 6 2-or-more-family 450 268 377 482 508 646 576 542 643 570 7 Under construction, end of period 1,189 1,003 1,147 1,302 1,323 1,344 1,359 1,368 1,425 8 1-family 516 531 655 111 787 793 799 798 830 9 2-or-more-family 673 All 492 531 536 551 559 570 594 10 Completed 1,692 1,297 1,362 1,536 1,647 1,671 1,699 1,907 1,612 11 1-family 931 866 1,026 1,177 1,209 1,267 1,282 1,493 1,193 12 2-or-more-family 760 430 336 359 438 404 417 414 419 13 Mobile homes shipped 329 213 250 251 264 251 270 300 319 313 Merchant builder activity in 1-family units: 14 Number sold 501 544 639 774 806 694 825 882 868 843 15 Number for sale, end of period i. 407 383 433 441 444 453 467 468 477 481 Price (thous. of dollars)2 Median: 16 Units sold 35.9 39.3 44.2 49.3 49.0 48.6 49.0 48.6 51.1 51.4 17 Units for sale 36.2 38.9 41.6 43.9 44.3 44.8 45.2 45.9 46.6 Average: 18 Units sold 38.9 42.5 48.1 54.4 53.9 53.6 54.3 53.9 51.2 51.6 EXISTING UNITS (1-family) 19 Number sold 2,272 2,452 3,002 3,450 3,420 3,510 3,720 3,880 3,930 4,160 Price of units sold (thous. of dollars):2 20 Median 32.0 35.3 38.1 42.2 43.4 43.7 43.9 43.8 44.0 44.5 21 Average 35.8 39.0 42.2 46.8 47.7 48.0 48.1 47.9 48.2 Value of new construction 3 (millions of dollars) CONSTRUCTION 22 Total put in place 138,499 134,293 147,481 172,134 '174,584 '173,035 '172,001 '175,929 177,911 178,011 23 Private 100,165 93,624 109,499 '133,711 r135,232 '133, 795 '133,774 '136,676 140,213 142,078 24 Residential 50,377 46,472 60,519 r82,377 '82,487 '80,825 '80,718 '82,365 85,806 87,884 25 Nonresidential, total 49,788 47,152 48,980 ••51,334 '52,745 '52,970 '53,056 '54,311 54,407 54,194 Buildings : 26 Industrial 7,902 8,017 7,182 r7,184 '7,066 '7,210 '7,646 '7,484 7,579 7,327 27 Commercial 15,945 12,804 12,757 13,760 '15,235 '15,533 '15,257 '16,054 15,846 15,526 28 Other 5,797 5,585 6,155 '6,077 '6,206 '6,474 '6,294 '6,370 6,337 6,584 29 Public utilities and other. 20,144 20,746 22,886 '24,313 '24,238 '23,753 '23,859 '24,404 24,645 24,757 30 Public 38,333 40,669 37,982 '38,423 '39,352 '39,240 '38,228 '39,253 37,699 35,933 31 Military.. 1,188 1,392 1,508 1,642 '1,566 '1,538 '1,460 '1,493 1,381 1,307 32 Highway 12,066 10,861 9,756 '9,835 10,792 '9,539 '9,449 '9,051 33 Conservation and development. 2,740 3,256 3,722 '3,562 '3,196 '4,252 '4,120 '4,878 34 Other 4 22,339 25,160 22,996 '23,384 '23,798 '23,911 '23,199 '23,831 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 Nov. 1976 1977 1977 Nov. Nov. (1967 Dec. Mar. June Sept. July Aug. Sept. Oct. Nov. = 100)1 Consumer prices 1 AH items 5.0 6.7 4.2 10.0 8.1 4.2 .4 .3 .3 .3 .5 185.4 2 Commodities 3.4 6.1 3.4 10.4 7.4 2.3 .1 .3 .2 .2 .5 177.9 3 Food .1 8.0 .0 14.6 12.7 1.7 .1 .3 1 1 .6 195.6 4 Commodities less food 5.0 4.9 5.7 7.4 4.2 2.7 .1 .3 .*3 .5 168.1 '.2 5 Durable 5.9 4.7 6.0 10.5 2.5 1.0 0.0 . 1 .2 .0 .6 165.5 6 Nondurable 4.4 5.1 5.4 5.5 5.2 4.2 •3 A .3 .5 .4 170.1 7 Services 7.6 7.8 5.1 9.8 9.4 7.4 .8 .5 .5 .4 .4 199.5 8 Rent 5.4 6.4 5.3 6.3 6.3 7.0 .6 .5 .6 .4 .7 157.0 9 Services less rent 7.9 8.0 5.4 9.9 10.1 7.5 .8 .4 .5 .4 .3 207.2 Other groupings: 10 All items less food1 6.3 6.4 5.3 6.9 7.8 5.7 .4 .4 .6 .4 .5 182.5 11 All items less shelter1 5.0 6.4 4.3 9.4 8.2 3.6 .3 .3 .2 .3 .4 182.5 12 Homeo wnership1 4.3 8.6 1.2 9.1 9.6 10.6 1.1 .6 .8 .4 .7 211.5 Wholesale prices 13 All commodities 4.2 6.1 7.1 10.6 3.2 1.9 -.1 .1 .5 .8 .7 197.0 14 Farm products, and processed foods and feeds -4.2 4.8 6.6 19.1 -2.5 -17.0 -2.1 -2.1 -.4 1.3 2.3 186.8 15 Farm products -4.2 1.0 5.8 26.5 -21.9 -22.3 -1.8 -4.3 -.2 22..44 3.0 189.5 16 Processed foods and feeds -4.3 6.8 6.5 15.4 11.0 -14.1 -2.4 -.8 -.6 ..88 1.7 186.7 17 Industrial commodities 6.7 6.5 7.6 8.1 55..11 7.6 ..55 .5 .8 ..66 .4 119999..22 Materials, supplies, and components of which * 18 Crude materials2 19.0 5.6 21.8 21.7 2.0 8.9 0.0 1.9 .3 -.2 1.3 284.6 19 Intermediate materials 3 6.4 66..44 7.5 88..00 44..33 7.8 ..66 .5 .7 .5 .2 220066..00 Finished goods, excluding foods: 20 Consumer 5.1 6.2 5.2 8.7 6.3 5.2 .2 .3 .7 .6 .3 175.8 21 Durable 4.0 6.0 3.3 7.0 6.0 5.4 .3 1.0 .1 1.1 .1 156.3 22 Nondurable 5.7 6.3 6.5 10.0 6.5 4.8 .2 0.0 1.0 .3 .4 188.7 23 Producer 6.1 7.4 9.2 5.5 6.3 5.6 .4 .4 .5 1.5 .7 190.8 MEMO: 24 Consumer foods -5.1 8.2 8.4 12.7 13.8 -7.5 -.7 -.9 -.3 .3 .4 190.4 Not seasonally adjusted. 3 Excludes intermediate materials for food manufacturing and manu- 2 Excludes crude foodstuffs and feedstuff's, plant and animal fibers, factured animal feeds, oilseeds, and leaf tobacco. SOURCE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • January 1978 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 Q3 r Gross national product 1 1,412.9 1,528.8 1,706.5 1,691.9 1,727.3 1,755.4 1,810.8 1,869.9 1,915.9 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 1,218.9 3 Durable goods 122.0 132.9 158.9 156.7 159.3 166.3 177.0 178.6 177.6 4 Nondurable goods 376.3 409.3 442.7 437.1 444.7 458.8 466.6 474.4 481.8 5 Services 391.3 438.2 492.3 484.6 498.2 513.9 528.8 541.1 559.5 6 Gross private domestic investment 214.6 189.1 243.3 244.4 254.3 243.4 271.8 294.9 303.6 7 Fixed investment 205.7 200.6 230.0 226.1 232.8 244.3 258.0 273.2 280.0 8 Nonresidential 150.6 149.1 161.9 159.8 164.9 167.6 177.0 182.4 187.5 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 96.3 106.1 104.0 109.0 110.6 119.2 121.4 124.9 11 Residential structures 55.1 51.5 68.0 66.3 67.8 76.7 81.0 90.8 92.5 12 Nonfarm 52.7 49.5 65.7 64.1 65.7 74.3 78.5 88.2 89.9 13 Change in business inventories 8.9 -11.5 13.3 18.3 21.5 -.9 13.8 21.7 23.6 14 Nonfarm 10.8 -15.1 14.9 20.4 22.0 1.4 14.1 22.4 23.1 15 Net exports of goods and services 6.0 2.0 7.8 10.2 7.9 3.0 -8.2 -9.7 -7.5 16 Exports 137.9 147.3 162.9 160.6 168.4 168.5 170.4 178.1 179.9 17 Imports 131.9 126.9 155.1 150.4 160.6 165.6 178.6 187.7 187.4 18 Govt, purchases of goods and services 302.7 338.9 361.4 358.9 363.0 370.0 374.9 390.6 400.9 19 Federal 111.1 123.3 130.1 128.5 130.2 134.2 136.3 143.6 148.1 20 State and local 191.5 215.6 231.2 230.4 232.7 235.8 238.5 247.0 252.9 By major type of product: 21 Final sales, total 1,404.0 1,540.3 1,693.1 1,673.7 1,705.8 1,756.3 1,797.0 1,848.2 1,892.2 22 Goods 638.6 686.2 764.2 761.7 746.0 774.7 805.9 827.1 843.5 23 Durable goods 247.8 258.2 303.4 301.9 313.4 312.6 334.4 341.0 342.3 24 Nondurable 390.8 428.0 460.9 459.7 464.1 460.6 471.5 486.1 501.2 25 Services 626.8 699.2 782.0 770.8 791.8 813.8 833.7 855.3 881.6 26 Structures 147.4 143.5 160.2 159.4 159.6 166.9 171.2 187.5 190.7 27 Change in business inventories 8.9 -11.5 13.3 18.3 21.5 -.9 13.8 21.7 23.6 28 Durable goods 7.1 -9.2 4.1 7.0 10.7 .6 7.8 11.5 10.3 29 Nondurable goods 1.8 -2.2 9.3 11.2 12.4 -3.1 6.0 10.2 13.4 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 1,347.4 National income 31 1,136.0 1,217.0 1,364.1 1,353.9 1,379.6 1,402.1 1,450.2 1,505.7 1,540.5 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 1,167.4 33 Wages and salaries 764.1 805.7 891.8 882.4 900.2 923.2 951.3 980.9 998.9 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 604.1 630.3 704.6 697.0 712.0 730.7 756.4 783.6 798.3 36 Supplement to wages and salaries 111.7 124.6 144.5 142.5 146.3 150.9 158.6 163.8 116688..55 37 Employer contributions for social insurance 56.1 59.8 68.6 68.0 69.1 70.9 75.4 77.1 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 43 Corporate profits * 83.6 99.3 128.1 129.2 133.5 123.1 125.4 140.2 149.0 44 Profits before tax 3 126.9 123.5 156.9 159.2 159.9 154.8 161.7 174.0 172.8 45 Inventory valuation adjustment -40.4 -12.0 -14.1 -15.5 -11.7 -16.9 -20.6 -17.8 -5.9 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 98.9 103.1 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 11997766 Account Q2 Q3 Q4 Q1 QQ22 QQ33rr 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 1,549.8 2 Wage and salary disbursements 764.6 805.7 891.8 882.4 900.2 923.2 951.3 980.9 998.9 3 Commodity-producing industries 274.6 275.0 308.4 306.7 310.8 317.7 328.9 345.4 351.0 4 Manufacturing 211.4 211.0 238.2 236.7 240.2 245.1 255.4 265.9 270.0 5 Distributive industries 184.3 195.4 217.1 213.7 220.2 226.4 234.5 240.5 244.4 6 Service industries 145.1 159.9 179.0 176.6 180.9 186.7 193.0 197.7 202.8 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 103.0 115.6 130.3 127.5 132.2 136.4 140.3 145.4 150.3 15 Transfer payments 140.8 176.8 192.8 188.7 194.3 198.0 203.5 203.0 208.7 16 Old-age survivors, disability, and health insurance benefits 70.1 81.4 92.9 89.3 95.8 98.4 99.9 110011..88 108.5 17 LESS: Personal contributions for social insurance 47.7 50.4 55.2 54.8 55.6 56.6 59.6 60.8 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 1,549.8 19 LESS: Personal tax and nontax payments.... 170.3 169.0 196.9 192.6 200.6 209.5 224.4 224.8 226.1 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 1,323.8 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 1,250.5 71.7 80.2 65.9 70.3 64.8 56.3 51.4 68.5 73.3 MEMO ITEMS : Per capita (1972 dollars): 5,746 5,629 5,924 5,916 5,961 5,966 6,064 66,,114433 66,,220066 24 Personal consumption expenditures 3,589 3,629 3,817 3,794 3,820 3,892 3,934 3,943 3,963 3,973 4,014 4,137 4,130 4,135 4,177 4,202 4,268 4,305 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 209.5 259.4 272.5 275.4 277.2 261.6 262.9 292.1 310.5 71.7 80.2 65.9 70.3 64.8 56.3 51.4 68.5 73.3 29 Undistributed corporate profits1 .2 16.7 27.6 28.0 31.6 20.8 22.5 30.3 37.4 30 Corporate inventory valuation adjustment.... -40.4 -12.0 -14.1 -15.5 -11.7 -16.9 -20.6 -17.8 -5.9 Capital consumption allowances: 31 Corporate 84.6 101.7 111.8 110.4 112.9 115.2 117.6 119.4 112233..77 32 Noncorporate 53.1 60.8 67.2 66.6 68.0 69.2 71.4 73.8 76.2 33 Wage accruals less disbursements 34 Government surplus, or deficit (—), national income and product accounts -3.2 -64.3 -35.6 -33.3 -32.4 -29.4 -11.5 --1144..99 --2266..00 35 Federal -10.7 -70.2 -54.0 -46.2 -53.5 -55.9 -38.8 -40.3 —58^9 36 State and local 7.6 5.9 18.4 12.9 21.1 26.5 27.3 25.4 32.9 37 Capital grants received by the United States, 210.1 201.0 242.5 246.5 252.8 237.5 254.7 276.1 285.4 39 Gross private domestic 214.6 189.1 243.3 244.4 254.1 243.3 271.8 294.9 303.6 -4.5 11.8 -.9 2.2 -1.5 -5.9 -17.1 -18.8 -18.2 41 Statistical discrepancy 5.8 5.9 5.5 4.5 8.0 5.3 3.3 -1.2 .9 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 • January 1978 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 Q3 Q4 QL Q2r Q3 1 Merchandise exports 98,306 107,088 114,694 27,000 29,603 29,711 29,458 30,590 30,869 2 Merchandise imports 103,673 98,043 124,014 28,343 32,411 33,305 36,561 38,347 38,378 3 Merchandise trade balance 2 -5,367 9,045 -9,320 -1,343 -2,808 -3,594 -7,103 -7,757 -7,509 4 Military transactions, net -2,083 -876 366 -65 235 235 516 311 577 5 Investment income, net 8,744 5,954 9,808 2,437 2,667 2,424 3,252 3,504 3,215 6 Other service transactions, net 865 2,042 2,743 523 781 598 340 553 767 7 Balance on goods and services 3 2,160 16,164 3,596 1,552 875 -337 -2,995 -3,389 -2,950 8 Remittances, pensions, and other transfers -1,714 -1,719 -1,878 -485 -461 -473 -526 -492 -567 9 U.S. Govt, grants (excluding military). -5,475 -2,893 -3,146 -544 -1,475 -572 -637 -723 -785 10 Balance on current account --55,,002288 11,552 -1,427 523 -1,061 -1,382 -4,158 -4,604 -4,302 11,,445588 --33,,880099 330033 --33,,440099 --44,,882211 --66,,994400 12 Change in U.S. Govt, assets, other than official reserve 365 -3,463 -4,213 -723 -1,405 -1,142 -909 -825 -1,175 13 Change in U.S. official reserve assets (increase, —) -1,434 -607 r-2,530 -773 -407 '228 -388 6 151 14 Gold --5588 15 Special Drawing Rights (SDR's) — 172 — 66 — 78 -45 -18 -29 — 83 _9 16 Reserve position in International Monetary Fund (IMF). -1,265 -466 -2,212 -237 -716 -461 -389 -80 133 3 -15 -240 -491 327 718 59 169 27 18 Change in U.S. private assets abroad (increase, —) -25,960 -27,478 -36,216 -9,254 -6,597 -13,108 1,627 -9,464 -2,372 -19,516 -13,532 -20,904 -3,630 -3,372 -9,148 3,446 -4,553 244 -1,183 -2,357 -2,124 -289 -978 -480 -306 23 -441 21 Short-term -18,333 -11,175 -18,780 -3,341 -2,394 -8,668 3,752 4,576 685 22 Nonbank-reported claims -3,221 -1,447 -1,986 -738 723 -967 -722 -1,129 674 23 Long-term -474 -432 10 -191 66 -10 45 68 41 -2,747 -1,015 -1,996 -547 651 -957 -767 -1,197 621 25 U.S. purchase of foreign securities, net -1,854 r —6,235 -8,730 -2,460 -2,743 -2,171 -692 -1,784 -2,190 26 U.S. direct investments abroad, net -1,368 -6,264 -4,596 -2,427 -1,205 -822 -404 -1,998 -1,100 27 Change in foreign official assets in the United States (in- 10,981 6,960 17,945 3,847 3,070 6,977 5,719 7,908 8,243 3,282 4,408 9,333 1,998 1,260 3,909 5,149 5,124 6,943 29 Other U.S. Govt, obligations 902 905 566 68 66 116 100 609 627 30 Other U.S. Govt, liabilities 4 724 1,701 4,938 1,524 1,819 852 712 456 319 31 Other U.S. liabilities reported by U.S. banks 5,818 -2,158 893 -412 -599 1,769 -420 752 -152 32 Other foreign official assets 5 254 2,104 2,215 669 524 331 178 967 506 33 Change in foreign private assets in the United States (in- 22,631 7,376 16,575 3,009 '5,131 5,102 -3,209 5,873 4,680 16,017 628 10,982 672 1,774 5,008 -5,298 6,344 2,498 9 -280 175 -105 15 221 47 105 192 16,008 908 10,807 111 1,699 4,787 -5,345 6,239 2,306 1,844 240 -616 161 -297 -242 -374 -405 -90 -90 334 -947 -233 -241 -311 -229 -183 -48 11,,993344 -94 331 394 -56 69 -145 -222 -42 40 Foreign private purchases of U.S. Treasury securities, net 697 2,590 2,783 437 3,026 -88 1,047 -1,370 1,247 41 Foreign purchases of other U.S. securities, net 378 2,503 1,250 1,030 68 21 879 736 514 42 Foreign direct investments in the United States, net 3,695 1,414 2,176 709 561 403 537 568 511 43 Allocation of SDR's -1,555 55,,666600 9,866 3,372 1,268 3,325 1,317 1,106 -5,225 45 Owing to seasonal adjustments 111111 --22,,662222 11,,778800 552244 --221155 --22,,550066 46 Statistical discrepancy in recorded data before seasonal -1,555 5,660 9,866 2,655 3,890 1,545 793 1,321 -2,719 MEMO ITEMS' Changes in official assets: 47 U.S. official reserve assets (increase, —) -1,434 -607 -2,530 -773 --440077 228 -388 6 115511 48 Foreign official assets in the United States (increase, +). 10,257 5,259 13,007 2,323 1,251 6,125 5,007 7,452 7,924 49 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the United States (part of line 27 above) 10,841 7,092 9,324 3,482 1,774 805 3,249 1,073 1,441 50 Transfers under military grant programs (excluded from lines 1, 4, and 9 above) 1,817 22,,221177 386 50 115566 9944 4466 2277 3322 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 May June July Aug. Sept. Oct. Nov. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 97,908 107,130 114,802 10,395 10,112 10,150 9,563 10,916 9,190 9,304 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 100,252 96,115 120,678 11,616 12,932 12,476 12,232 12,631 12,288 11,386 3 Trade balance -2,344 +11,014 -5,876 -1,221 -2,820 -2,326 -2,669 -1,715 -3,098 -2,082 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 June July Aug. Sept. Oct. Nov. Dec.p 1 Total 15,883 16,226 18,747 19,156 18,927 19,055 18,988 19,048 19,155 3 19,317 2 Gold stock, including Exchange Stabilization Fund * 11,652 11,599 11,598 11,658 11,658 11,658 11,658 11,658 11,658 11,719 3 Special Drawing Rights2 2,374 2,335 2,395 2,486 2,498 2,483 2,489 2,530 2,548 3 2,629 4 Reserve position in International Monetary Fund 1,852 2,212 4,434 4,920 4,716 4,859 4,776 4,842 4,933 34,951 5 Convertible foreign currencies 5 80 320 92 55 55 65 18 16 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 (IMF) of used prior to July 1974 (SDR1 = $1.20635) total U.S. reserve assets SDR's as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, at end of Dec. amounted to $19,177; SDR holdings, $2,610, and reserve 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's. position in IMF, $4,790. 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 • January 1978 3.13 SELECTED U.S. LIABILITIES TO FOREIGNERS Millions of dollars, end of period 1977 HHoollddeerr,, aanndd ttyyppee ooff lliiaabbiilliittyy 11997744 11997755 11997766 May June July Aug. Sept. Oct.* Nov.? 1 Total 119,164 126,552 151,356 160,950 163,545 168,799 166,319 174,657 178,942 184,519 2 Foreign countries 115,842 120,929 142,873 152,259 155,362 162,379 159,163 167,243 171,546 176,886 3 Official institutions1 7766,,882233 80,712 9911,,997755 102,112 103,656 107,601 108,134 111,183 117,064 122,886 4 Short-term, reported by banks in the United States.2 53,079 49,530 53,619 58,260 57,413 60,059 56,810 5566,,778833 5599,,884455 6622,,002255 U.S. Treasury bonds and notes: 5 Marketable3 5,059 6,671 11,788 16,382 18,345 19,393 23,089 25,582 28,634 31,514 6 Nonmarketable4 1166,,333399 1199,,997766 2200,,664488 20,950 20,917 2200,,883377 2200,,665555 21,128 2200,,335511 2200,,446622 7 Other readily marketable liabilities 5 2,346 4,535 5,920 6,520 6,981 7,312 7,580 7,690 8,234 8,885 Commercial banks abroad: 8 Short-term, reported by banks in the United States2,6 30,106 29,516 37,329 35,521 36,687 39,946 35,789 4400,,339922 3388,,775555 3388,,007788 9 Other foreigners 8,913 10,701 13,569 14,626 15,019 14,832 1155,,224400 15,668 15,727 15,922 10 Short-term, reported by banks in the United States2 88,,441155 1100,,000000 1122,,559922 1133,,339988 13,623 13,377 1133,,668844 14,041 1144,,003366 1144,,116699 11 Marketable U.S. Treasury bonds and notes3,7 498 701 977 1,228 1,396 1,455 1,556 1,627 1,691 1,753 12 Nonmonetary international and regional organization8 3,322 5,623 8,483 8,691 8,183 66,,442200 77,,115566 7,414 7,396 77,,663333 13 Short-term, reported by banks in the United States2 33,,117711 55,,229922 5,450 6,556 55,,772277 33,,883344 44,,221166 33,,555555 33,,339966 3,258 14 Marketable U.S. Treasury bonds and notes3 151 331 3,033 2,135 2,456 2,586 2,940 3,859 4,000 4,375 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 Area 1974 1975 1976 May June July Aug. Sept. Oct.2' Nov.? 1 Total 76,823 80,712 91,975 102,112 103,656 107,601 108,134 111,183 117,064 2 Western Europe 1 44,328 45,701 45,882 50,605 53,342 55,669 57,741 60,701 65,048 3 Canada 3,662 3,132 3,406 2,798 2,699 2,653 2,553 2,508 1,863 4 Latin American republics 4,419 4,450 4,906 4.672 4,240 4,340 4,246 4,466 4,269 5 Asia 18,627 22,551 34,108 40,341 39,839 41,162 40,438 40,330 42,697 6 Africa 3,160 2,983 1,893 1,821 1,938 2,458 2,265 2,144 2,027 7 Other countries 2 2,627 1,895 1,780 1,875 1,598 1,319 891 1,034 1,160 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

Bank-reported Data A57 3.15 SHORT-TERM LIABILITIES TO FOREIGNERS Reported by Banks in the United States By Holder and by Type of Liability Millions of dollars, end of period 1977 HHoollddeerr,, aanndd ttyyppee ooff lliiaabbiilliittyy 1974 1975 1976 May r Juner July Aug.r Sept. Oct.p Nov.f 1 All foreigners, excluding the International Monetary Fund 94,771 94,338 108,990 113,735 113,448 111177,,221166 110,499 114,773 111166,,003322 111177,,553300 2 Payable in dollars 94,004 93,781 108,266 113,083 112,773 116,256 109,610 114,027 115,256 116,698 Deposits: 3 14,051 13,564 16,803 16,742 16,287 17,496 15,942 16,893 16,904 16,464 4 Time * 9,907 10,250 11,316 11,554 12.079 11,833 11,749 11,604 11,534 11,368 5 U.S. Treasury bills and certificates2 35,662 37,414 40,744 45,463 44,110 44,413 42,254 43,181 44,667 47,047 6 Other short-term liabilities 3 34,384 32,552 39,403 39,325 40,296 42,515 39,664 42,349 42,152 41,819 7 Payable in foreign currencies 766 558 724 653 675 960 889 745 776 832 8 Nonmonetary international and regional 3,171 5,293 5,450 6,557 5,728 3,834 4,216 3,555 3,396 3,258 9 Payable in dollars 3,171 5,284 5,445 6,551 5,715 3,819 4,178 3,523 3,376 3,237 Deposits: 1100 Demand 139 139 290 172 228 122 142 214 173 173 1111 Time1 111 148 205 167 156 154 147 134 140 142 12 U.S. Treasury bills and certificates 497 2,554 2,701 2,977 2,521 2,191 1,990 1,875 802 767 13 Other short-term liabilities5 2,424 2,443 2,250 3,234 2,811 1,352 1,900 1,300 2,261 2,155 14 Payable in foreign currencies 8 5 6 13 15 38 32 20 20 15 Official institutions, banks, and other foreigners.. 91,600 89,046 103,540 107,179 107,720 113,382 106,283 111,218 112,636 114,272 16 Payable in dollars 90,834 88,496 102,821 106,532 107,058 7/2,457 105,431 110,504 111,881 113,461 Deposits: 17 Demand 13,912 13,426 1166,,551133 16,569 16,060 17,374 15,801 16,679 16,731 16,290 18 Time1 9,796 10,102 11.112 11,387 11,924 11,679 11,603 11,471 11,394 11,226 19 U.S. Treasury bills and certificates2 35,165 34,860 38,042 42,485 41,589 42,221 40,264 41,306 43,865 46,281 20 Other short-term liabilities3 31,961 30,109 37,153 36,091 37,486 41,163 37,764 41,048 39,890 39,664 21 Payable in foreign currencies 766 549 719 647 662 945 851 713 756 812 22 Official institutions6 53,079 49,530 53,619 58,260 57,413 60,059 56,810 56,783 59,845 62,025 23 Payable in dollars 52,952 49,530 53,619 5588,,226600 57,413 60,059 56,810 56,783 59,845 62,025 Deposits: 24 Demand 2,951 2,644 33,,339944 2,676 2,705 3,642 3,122 3,133 2,990 2,557 25 Time1 4,167 3,423 2,321 2,441 2,506 2,401 2,248 1,987 1,903 1,823 26 U.S. Treasury bills and certificates2 34,656 34,199 37,725 42,197 41,322 41,926 39,825 40,780 43,392 45,806 27 Other short-term liabilities5 11,178 9,264 10,179 10,947 10,880 12,090 11,615 10,882 11,560 11,839 98 P/iv/jA/tf in fnroion rurrenrife _ _ _ 127 29 Banks and other foreigners 38,520 39,515 49,921 48,918 50,307 53,323 49,473 54,435 52,791 52,247 30 Payable in dollars 37,881 38,966 49,202 48,272 49,645 52,378 48,622 53,721 52,035 51,435 31 Banks7 29,467 28,966 36,610 3344,,887755 3366,,002255 3399,,000011 3344,,993377 3399,,667799 37,999 37,267 Deposits: 32 Demand 8,231 7,534 99,,110044 9,782 9,565 10,136 8,928 9.676 9,685 9,668 33 Time1 1,885 1,856 2,267 1,748 2,124 1,826 1,865 1,849 1,879 1,814 34 U.S. Treasury bills and certificates 232 335 119 108 100 144 112 121 127 141 35 Other short-term liabilities3 19,119 19,241 25,120 23,236 24,236 26,895 24,033 28,033 26,308 25,643 36 Other foreigners 8,414 10,000 12,592 1133,,339977 1133,,662200 1133,,337766 1133,,668844 1144,,004422 14,036 14,169 Deposits: 37 Demand 2,729 3,248 44,,001155 4,111 3,790 3,595 3,751 3,870 4,056 4,065 38 Time1 3,744 4,823 6,524 7,198 7,294 7,453 7,490 7,634 7,611 7,588 39 U.S. Treasury bills and certificates 277 325 198 180 167 151 328 404 346 333 40 Other short-term liabilities5 1,664 1,604 1,854 1,908 2,370 2,177 2,116 2,133 2,022 2,182 41 Payable in foreign currencies 639 549 719 647 662 945 851 713 756 812 1 Excludes negotiable time certificates of deposit, which are included 4 Principally the International Bank for Reconstruction and Developin "Other short-term liabilities." ment, and the Inter-American and Asian Development Banks. 2 Includes nonmarketable certificates of indebtedness and Treasury 5 Principally bankers acceptances, commercial paper, and negotiable bills issued to official institutions of foreign countries. time certificates of deposit. 3 Includes liabilities of U.S. banks to their foreign branches, liabilities 6 Foreign central banks and foreign central governments and their of U.S. agencies and branches of foreign banks to their head offices and agencies, and Bank for International Settlements. foreign branches of their head offices, bankers acceptances, commercial 7 Excludes central banks, which are included in "Official institutions." paper, and negotiable time certificates of deposit. NOTE.—"Short-term obligations" are those payable on demand, or having an original maturity of 1 year or less. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • January 1978 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 May June July Aug. Sept. Oct.f Nov.? 1 Total 94,811 94,338 108,990 113,735 113,448 117,216 110,499 114,773 116,032 2 Foreign countries 91,640 89,046 103,540 107,179 107,720 113,382 106,283 111,218 112,636 3 Europe 48,853 43,988 46,938 47,505 49,627 50,604 48,953 51,431 52,899 4 Austria 607 754 348 409 465 455 498 448 410 5 Belgium-Luxembourg 2,506 2,898 2,275 2,641 2,1 OA 2,822 2,691 2,667 2,714 6 Denmark 369 332 363 974 1,178 1,154 1,032 1,172 1,272 7 Finland 266 391 422 242 258 209 217 248 232 8 France 4,287 7,733 4,875 4,921 5,089 4,745 4,894 4,799 5,006 9 Germany 9,429 4,357 5,965 4,825 4,271 4,937 4,413 4,289 5,280 10 Greece 248 284 403 409 556 573 709 629 648 11 Italy 2,617 1,072 3,206 3,509 4,636 5,422 5,538 5,770 6,320 12 Netherlands 3,234 3,411 3,007 3,111 3,545 3.397 3,328 3,216 3,088 13 Norway 1,040 996 785 999 1.195 1,203 1,140 1,190 1,023 14 Portugal 310 195 239 238 163 222 169 173 191 15 Spain 382 426 561 586 667 642 543 723 724 16 Sweden 1,138 2,;86 1,693 2,431 2,390 1,963 1,782 2,483 2,734 17 Switzerland 10,139 8,514 9,458 8,436 9,323 9,162 9,386 9,920 9,752 18 Turkey 152 118 166 68 127 101 203 93 111 19 United Kingdom 7,584 6,886 10,C04 11,230 10,701 11,250 10,226 11,427 11,096 20 Yugoslavia 183 126 188 102 115 125 110 119 130 21 Other Western Europe i 4,073 2,970 2,672 2,136 2,009 1,973 1,855 1,839 1,938 22 U.S.S.R 82 40 51 66 73 88 70 53 68 23 Other Eastern Europe 206 200 255 172 162 160 151 173 162 24 Canada 3,520 3,076 4,784 4,869 4,253 4,456 4,631 4,492 4,936 25 Latin America 11,754 14,942 19,026 19,958 20,786 23,038 21,412 24,470 22,346 26 Argentina 886 1,147 1,538 1,971 1,699 1,754 2,022 2,187 2,421 27 Bahamas 1,054 1,827 2,750 2.744 3,777 5,518 4,283 5,940 3,773 28 Brazil 1,034 1,227 1,432 1,175 1,357 1.398 1,233 1,101 1,055 29 Chile 276 317 335 432 393 373 353 342 340 30 Colombia 305 417 1,017 1,172 1.196 1,220 1,164 1,156 1,182 31 Cuba 7 6 6 8 7 6 6 6 6 32 Mexico 1,770 2,066 2,848 2,764 2,832 2,869 2,790 2,823 2,741 33 Panama 510 1,099 1,140 984 941 1,015 954 947 946 34 Peru 272 244 257 219 224 241 273 288 259 35 Uruguay 165 172 245 251 234 242 230 245 226 36 Venezuela 3,413 3,289 3,095 3,006 2,478 2,532 2,887 3,037 3.212 37 Other Latin American republics 1,316 1,494 2,081 2,270 2,376 2,238 2,154 2,320 2.213 38 Netherlands Antilles2 158 129 140 215 207 158 180 169 156 39 Other Latin America 589 1,507 2,142 2.745 3,066 3,476 2,886 3,908 3,814 40 Asia 21,130 21,539 28,472 29,933 28,456 30,296 26,931 26,457 28,169 41 China, People's Republic of (Mainland) 50 123 47 53 44 49 46 44 48 42 China, Republic of (Taiwan) 818 1,025 989 1,210 1, 196 1,259 925 924 899 43 Hong Kong 530 623 892 950 931 1,028 1,066 1,153 993 44 India 261 126 648 721 814 746 743 850 886 45 Indonesia 1,221 369 340 531 282 782 589 453 905 46 Israel 389 386 391 503 547 484 467 416 465 47 Japan 10,931 10,218 14,380 12,481 12,387 12,837 11,691 11,440 13,277 48 Korea 384 390 437 472 534 633 527 600 599 49 Philippines 747 698 627 634 614 653 561 559 630 50 Thailand 333 252 275 275 257 281 293 264 271 51 Middle East oil-exporting countries3 4,623 6,461 8,073 10,447 9,283 9,976 8,828 8,525 7,930 52 Other 845 867 1,372 1,655 1,568 1,568 1,195 1,230 1,266 53 Africa 3,551 3,373 2,300 2,753 2,671 3,284 3,177 3,023 2,786 54 Egypt 103 343 333 360 314 401 603 484 393 55 Morocco 38 68 88 93 81 73 61 68 61 56 South Africa 130 169 143 184 237 264 185 208 232 57 Zaire 84 63 35 30 30 40 38 36 33 58 Oil-exporting countries4 2,814 2,239 1,116 1,205 1,145 1,541 1,430 1,564 1,403 59 Other 383 491 585 881 866 966 860 664 #4 60 Other countries 2,831 2,128 2,019 2,162 1,926 1,704 1,179 1,345 1,500 61 Australia 2,742 2,014 1,911 2,026 1,800 1,553 1,007 1,198 1,348 62 All other 89 114 108 135 126 151 172 146 152 63 Nonmonetary international and regional organizations 3,171 5,293 5,450 6,557 5,728 3,834 4,216 3,555 3,396 64 International 2,900 5,064 5,091 6,230 5,365 3,484 3,816 3,186 3,079 65 Latin American regional 202 187 136 118 144 165 187 157 134 66 Other regional 5 69 42 223 209 218 186 213 212 183 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 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Other Western Europe Other Asia 1 Cyprus 17 68 58 25 Afghanistan 19 41 57 2 Iceland 20 40 32 26 Bangladesh 50 54 44 3 Ireland, Republic of. 29 236 131 27 Burma 49 31 34 28 Cambodia 4 4 3 Other Eastern Europe 29 Jordan 30 39 23 4 Bulgaria 13 19 14 34 30 Laos 5 2 2 5 Czechoslovakia 11 32 11 19 31 Lebanon 180 117 132 6 German Democratic Republic. 18 17 3 11 32 Malaysia 92 77 130 7 Hungary 11 13 18 16 33 Nepal 22 28 34 8 Poland 42 66 74 75 64 34 Pakistan 118 74 92 9 Rumania 14 44 29 19 23 35 Singapore 215 256 344 36 Sri Lanka (Ceylon) 13 13 10 Other Latin American republics 37 Vietnam 70 62 66 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 13 Ecuador 157 120 150 319 311 39 Ghana 13 23 45 14 El Salvador 144 171 212 176 214 40 Ivory Coast 11 18 17 15 Guatemala 255 260 368 340 392 41 Kenya 32 19 39 Haiti 34 38 48 46 68 42 Liberia 33 53 63 Honduras 92 99 137 134 210 43 Southern Rhodesia 3 1 Jamaica 62 41 59 34 43 44 Sudan 14 12 17 Nicaragua 126 133 158 113 133 45 Tanzania 21 30 20 Paraguay 38 43 50 47 60 46 Tunisia 23 29 34 Surinam 2 13 29 17 47 Uganda 38 22 50 Trinidad and Tobago 31 131 44 167 85 48 Zambia 18 78 14 Other Latin America: All Other 23 Bermuda 100 170 197 177 199 49 New Zealand 36 42 48 24 British West Indies. 627 ,311 2,284 ,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 Holder, and area or country 1974 1975 1976 May June July Aug. Sept. Oct.* Nov.f 1 Total 1,285 1,812 2,432 2,230 2,376 2,322 2,336 2,526 2,586 2,696 2 Nonmonetary international and regional 822 415 269 266 279 269 313 330 352 352 3 Foreign countries 464 1,397 2,163 1,964 2,097 2,053 2,023 2,196 2,234 2,344 4 Official institutions, including central banks. .. 124 931 1,337 1,080 1,135 1,081 1,006 1,074 1,089 1,255 5 Banks, excluding central banks 261 366 621 615 650 644 680 713 722 713 79 100 204 270 312 329 337 409 422 376 Area or country: 7 Europe 226 330 570 579 628 634 664 708 719 704 8 Germany 146 214 346 297 312 307 308 307 308 309 9 United Kingdom 59 66 124 133 147 162 169 200 205 200 10 Canada 19 23 29 34 35 33 27 27 27 26 11 Latin America 115 140 230 254 280 287 304 341 346 330 12 Middle East oil-exporting countries1 94 894 1,286 1,076 1,130 1,075 987 1,056 1,064 1,232 13 Other Asia 7 8 46 19 18 18 34 38 53 44 14 African oil-exporting countries 2 *1 * * * * * * * 1 1 15 Other Africa 1 * 2 6 6 6 23 22 6 16 All other countries * * 1 1 1 1 1 1 2 1 1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, NOTE.—Long-term obligations are those having an original maturity and United Arab Emirates (Trucial States). of more than 1 year. 2 Comprises Algeria, Gabon, Libya, and Nigeria. NOTES TO TABLE 3.16: 1 Includes Bank for International Settlements. 4 Comprises Algeria, Gabon, Libya, and Nigeria. 2 Surinam included with Netherlands Antilles until January 1976. 5 Asian, African, and European regional organizations, except BIS, 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, which is included in "Other Western Europe." and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • January 1978 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 May June July Aug. Sept. 1 Total 39,056 50,231 69,139 68,060 69,732 69,608 68,592 69,107 72,160 2 Foreign countries 39,055 50,229 69,134 68,057 69,720 69,599 68,581 69,096 72,151 3 Europe 6,255 8,987 12,122 12,185 12,923 12,763 12,277 13,352 13,770 4 Austria 21 15 44 43 53 63 53 117 15 5 Belgium-Luxembourg 384 352 662 589 759 505 476 558 782 6 Denmark 46 49 85 84 85 86 100 140 126 7 Finland 122 128 139 130 113 101 103 95 111 8 France 673 1,471 1,445 1,546 1,455 1,503 1,471 1,356 1,344 9 Germany 589 416 517 503 575 647 648 615 766 10 Greece 64 49 79 65 51 66 68 103 98 11 Italy 345 370 929 979 875 972 1,014 1,060 1,104 12 Netherlands 348 300 304 362 480 471 371 447 304 13 Norway 119 71 98 148 124 121 135 109 120 14 Portugal 20 16 65 100 97 110 138 148 138 15 Spain 196 249 373 302 284 323 344 346 471 16 Sweden 180 167 180 79 101 153 151 139 172 17 Switzerland 335 237 485 473 484 488 533 700 681 18 Turkey 15 86 176 322 333 333 329 337 329 19 United Kingdom 2,580 4,718 6,179 6,074 6,638 6,473 6,011 6,771 6,623 20 Yugoslavia 22 38 41 55 58 49 35 34 28 21 Other Western Europe 22 27 52 40 51 42 47 43 267 22 U.S.S.R 46 103 99 82 90 88 81 89 82 23 Other Eastern Europe 131 mi 171 209 216 169 169 146 149 24 Canada 2,776 2,817 3,049 3,554 3,607 3,728 3,978 3,400 3,626 25 Latin America 12,377 20,532 34,270 33,190 33,413 33,415 32,826 33,076 35,105 26 Argentina 720 1,203 964 886 904 839 856 939 1,076 27 Bahamas 3,405 7,570 15,336 15,127 16,058 15,061 13,647 13,522 15,984 28 Brazil 1,418 2,221 3,322 3,061 3,030 3,026 3,077 3,011 3,121 29 Chile 290 360 387 362 349 373 382 431 435 30 Colombia 713 689 586 505 495 514 542 528 570 31 Cuba 14 13 13 13 13 13 13 13 10 32 Mexico 1,972 2,802 3,432 3,249 3,204 3,469 3,455 3,488 3,261 33 Panama 505 1,052 1,257 1,469 905 1,278 1,463 1,063 1,431 34 Peru 518 583 704 741 797 796 783 785 737 35 Uruguay 63 51 38 36 32 38 39 42 47 36 Venezuela 704 1, 086 1,564 1,359 1,348 1,421 1,435 1,656 1,654 37 Other Latin American republics 852 967 1,125 1,176 1,144 1,181 1,233 1,224 1,290 3 8 Netherlands Antilles i 62 49 40 36 69 64 57 75 61 39 Other Latin America 1,142 1,885 5,503 5,170 5,066 5,342 5,844 6,298 5,426 40 Asia 16,226 16,057 17,672 16,606 16,979 17,025 16,838 16,614 16,856 41 China, People's Republic of (Mainland) 4 22 3 15 30 13 9 27 20 42 China, Republic of (Taiwan) 500 736 991 1,221 1,259 1,275 1,236 1,303 1,321 43 Hong Kong 223 258 271 298 337 359 272 360 357 44 India 14 21 41 34 39 25 65 59 48 45 Indonesia 157 102 76 39 72 65 56 67 97 46 Israel 255 491 551 280 334 311 323 304 348 47 Japan 12,518 10,776 10,997 9,591 9,935 9,698 9,623 9,351 9,341 48 Korea 955 1,561 1,714 1,912 1,861 1,981 2,069 2,001 1,998 49 Philippines 372 384 559 498 418 372 478 All 489 50 Thailand 458 499 422 519 558 584 580 617 612 51 Middle East oil-exporting countries2.... 330 524 1,312 1,469 1,275 1,476 1,369 1,340 1,531 52 Other 441 684 735 730 860 867 758 708 695 53 Africa 855 1,228 1,481 1,559 1,789 1,658 1,720 1,656 1,828 54 Egypt 111 101 127 152 157 158 149 134 155 55 Morocco 18 9 13 34 36 46 43 48 44 56 South Africa 329 545 763 778 810 821 799 802 881 57 Zaire 98 34 29 7 9 8 6 15 7 5 8 Oil-exporting countries 3 115 231 253 243 422 290 357 306 378 59 Other 185 308 296 344 355 333 365 350 362 60 Other countries 565 609 540 963 1,009 1,010 943 998 966 61 Australia 466 535 441 846 878 861 795 863 839 62 All other 99 73 99 117 132 150 148 135 127 63 Nonmonetary international and regional organizations 13 10 11 10 1 Includes Surinam until January 1976. 3 Comprises Algeria, Gabon, Libya, and Nigeria. 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 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 May June July Aug. Sept. Oct.f Nov.f 1 Total 39,056 50,231 69,139 68,060 69,732 69,608 68,592 69,107 72,160 72,275 2 Payable in dollars 37,859 48,888 67,494 66,297 67,954 67,942 66,661 67,379 70,161 70,404 3 Loans, total 11,287 13,200 18.141 16,647 16,090 17,602 16,687 18,383 18,045 17,560 4 Official institutions, including central banks 381 613 1,448 967 983 851 1,018 1,007 1,085 1,064 5 Banks, excluding central banks 7,332 7,665 11.142 10,638 10,001 11,523 10,609 11,992 11,301 11,146 6 All other, including nonmonetary international and regional organizations 3,574 4,921 5,552 5,041 5,105 5,228 5,060 5,385 5,658 5,350 7 Collections outstanding 5,637 5,467 5,756 6,317 6,417 6,352 6,200 6,025 6,005 6,029 8 Acceptances made for accounts of foreigners.. 11,237 11,147 12,358 13,045 13,166 13,431 13,556 13,645 13,674 13,368 9 Other claims1 9,698 19,075 31,238 30,288 32,280 30,556 30,218 29,325 32,436 33,447 10 Payable in foreign currencies 1,196 1,342 1,645 1,764 1,779 1,667 1,931 1,728 2,000 1,871 11 Deposits with foreigners 669 656 1,063 864 845 817 1,032 844 922 837 12 Foreign government securities, commercial and finance paper 289 314 89 377 302 277 233 239 356 392 13 Other claims 238 372 493 522 631 572 667 645 722 642 i 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 May June July Aug. Sept. Oct.2' Nov.f 1 7,179 9,536 11,898 12,294 12,182 12,251 12,468 12,648 12,734 12,368 By type: 2 Payable in dollars 7,099 9,419 11,750 12,091 11,982 12,049 12,250 12,432 12,504 12,134 3 Loans, total 6,490 8,316 10,093 10,395 10,286 10,323 10,504 10,609 10,761 10,452 4 Official institutions, including central banks 1,324 1,351 1,407 1,674 1,653 1,676 1,712 1,756 1,774 1,794 5 Banks, excluding central banks 929 1,567 22,,223322 22,,226622 2,263 22,,223388 22,,227799 2,316 22,,442266 22,,330033 6 All other, including nonmonetary international and regional organizations 4,237 5,399 6,454 6,460 6,371 6,408 6,513 6,538 6,561 6,355 7 Other long-term claims 609 1,103 1,656 1,696 1,695 1,726 1,746 1,823 1,743 1,681 8 Payable in foreign currencies 80 116 148 202 200 202 218 216 229 235 By area or country: 9 Europe 1,908 2,704 3,314 3,650 3,677 3,648 3,706 3,677 3,682 3,419 10 Canada 501 555 637 501 483 485 455 456 461 424 11 Latin America 2,614 3,468 4,870 5,042 5,016 5,045 5,219 5,428 5,547 5,583 12 Asia 1,619 1,795 1,904 1,884 1,832 1,862 1,846 1,872 1,763 1,742 13 Japan 258 296 382 391 381 391 371 359 334 320 14 Middle East oil-exporting countries l 384 220 146 149 151 155 170 161 172 153 15 Other Asia 977 1,279 1,376 1,345 1,301 1,317 1,305 1,353 1,257 1,270 16 366 747 890 898 860 857 898 873 858 852 17 Oil-exporting countries2 62 151 271 213 213 191 219 221 201 176 18 Other 305 596 619 685 647 666 679 651 657 676 19 All other countries3 171 267 282 319 313 353 344 343 423 348 l Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 2 Comprises Algeria, Gabon, Libya, and Nigeria, and United Arab Emirates (Trucial States). 3 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • January 1978 3.22 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1976 1977 AAsssseett aaccccoouunntt 1974 1975 Dec. Apr. May June July Aug.r Sept. Oct.P All foreign countries 1 Total, all currencies 151,905 176,493 219,420 223,222 229,542 236,480 235,637 234,592 244,955 247,049 2 Claims on United States 6,900 6,743 7,889 8,676 7,361 7,398 10,683 8,192 11,914 8,301 3 Parent bank 4,464 3,665 4,323 5,276 3,928 3,610 7,134 4,630 8,231 4,604 4 Other 2,435 3,078 3,566 3,400 3,432 3,788 3,549 3,562 3,683 3,697 5 Claims on foreigners 138,712 163,391 204,486 207,573 214,784 221,667 217,456 218,869 225,123 230,295 6 Other branches of parent bank. 27,559 34,508 45,955 48,164 49,464 52,406 48,387 48,317 52,071 51,901 7 Other banks 60,283 69,206 83,765 79,782 83,937 86,887 84,363 85,532 87,741 91,866 8 Official institutions 4,077 5,792 10,609 12,517 13,045 13,194 13,572 13,820 14,182 14,444 9 Nonbank foreigners 46,793 53,886 64,157 67,110 68,337 69,180 71,134 71,200 71,128 72,084 10 Other assets 6,294 6,359 7,045 6,973 7,397 7,414 7,497 7,530 7,919 8,453 11 Total payable in U.S. dollars 105,969 132,901 167,695 172,134 176,603 182,396 179,647 179,050 188,176 187,580 12 Claims on United States 6,603 6,408 7,595 8,302 6,951 6,984 10,266 7,748 11,434 7,759 13 Parent bank 4,428 3,628 4,264 5,232 3,903 3,590 7,095 4,560 8,177 4,517 14 Other 2,175 2,780 3,332 3,070 3,049 3,393 3,170 3,188 3,257 3,242 15 Claims on f oreigners 96,209 123,496 156,896 160,529 166,160 172,011 166,057 167,716 173,191 175,842 16 Other branches of parent bank 19,688 28,478 37,909 40,300 41,350 43,952 39,647 39,995 42,983 42,693 17 Other banks 45,067 55,319 66,331 63,061 66,319 68,815 65,875 66,826 68,789 71,591 18 Official institutions 3,289 4,864 9,018 11,174 11,682 11,758 12,110 12,223 12,693 12,766 19 Nonbank foreigners 28,164 34,835 43,638 45,994 46,808 47,486 48,425 48,672 48,726 48,791 20 Other assets 3,157 2,997 3,204 3,303 3,492 3,401 3,325 3,586 3,552 3,979 United Kingdom 21 Total, all currencies 69,804 74,883 81,466 80,150 83,178 84,734 83,484 83,270 88,033 90,154 22 Claims on United States. 3,248 2,392 3,354 2,541 2,714 2,450 3,129 2,307 3,422 2,729 23 Parent bank 2, All 1,449 2,376 1,698 1,850 1,553 2,249 1,397 2,556 1,789 24 Other 116 943 978 843 863 897 881 910 866 940 25 Claims of foreigners 64,111 70,331 75,859 75,559 78,333 80,087 78,083 78,607 82,154 84,766 26 Other branches of parent bank. 12,724 17,557 19,753 21,707 21,097 22,121 20,909 20,015 22,363 22,178 27 Other banks 32,701 35,904 38,089 35,585 38,660 39,157 37,772 38,784 39,576 41,923 28 Official institutions 788 881 1,274 1,728 1,948 1,764 1,863 1,983 1,955 2,052 29 Nonbank foreigners 17,898 15,990 16,743 16,539 16,627 17,045 17,538 17,826 18,259 18,613 30 Other assets 2,445 2,159 2,253 2,050 2,131 2,197 2,272 2,355 2,458 2,659 31 Total payable in U.S. dollars. 49,211 57,361 61,587 61,179 63,481 64,841 62,815 62,686 66,895 67,243 32 Claims on United States. 3,146 2,273 3,275 2,430 2,590 2,338 3,011 2,130 3,259 2,545 33 Parent bank 2,468 1,445 2,374 1,690 1,842 1,547 2,237 1,348 2,527 1,748 34 Other 678 828 902 740 748 791 774 781 732 797 35 Claims on foreigners 44,694 54,121 57,488 57,894 60,030 61,582 58,875 59,419 62,584 63,596 36 Other branches of parent bank. 10,265 15,645 17,249 19,232 18,619 19,538 18,135 17,550 19,865 19,497 37 Other banks 23,716 28,224 28,983 26,941 29,521 29,930 28,497 29,199 29,808 31,134 38 Official institutions 610 648 846 1,415 1,624 1,437 1,473 1,574 1,555 1,595 39 Nonbank foreigners 10,102 9,604 10,410 10,306 10,267 10,676 10,769 11,095 11,355 11,370 40 Other assets. 1,372 967 824 855 861 922 930 1,138 1,052 1,103 Bahamas and Caymans 41 Total, all currencies 31,733 45,203 66,774 70,950 71,540 74,853 74,727 73,284 78,430 76,031 42 Claims on United States 2,464 3,229 3,508 4,998 3,543 3,970 6,447 4,875 7,455 4,756 43 Parent bank 1,081 1,477 1,141 2,703 1,251 1,394 4,062 2,465 4,861 2,173 44 Other 1,383 1,752 2,367 2,295 2,292 2,576 2,385 2,410 2,595 2,583 45 Claims on foreigners 28,453 41,040 62,048 64,652 66,579 69,528 66,970 67,124 69,680 69,685 46 Other branches of parent bank, 3,478 5,411 8,144 8,095 8,703 9,638 7,586 8,259 9,828 9,266 47 Other banks 11,354 16,298 25,354 25,234 25,588 27,372 25,967 25,481 26,367 27,130 48 Official institutions 2,022 3,576 7,101 7,784 8,062 8,344 8,628 8,591 9,192 9,195 49 Nonbank foreigners 11,599 15,756 21,449 23,538 24,226 24,174 24,788 24,793 24,293 24,095 50 Other assets 815 933 1,217 1,300 1,419 1,356 1,309 1,285 1,294 1,589 51 Total payable in U.S. dollars 28,726 41,887 62,705 66,366 66,550 69,930 69,548 68,209 72,948 70,501 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. Apr. May June July Aug.r Sept. Oct.f All foreign countries 52 Total, all currencies 151,905 176,493 219,420 223,222 229,542 236,480 235,637 234,591 244,955 247,049 53 To United States 11,982 20,221 32,721 33,054 34,792 '37,583 37,713 36,360 38,618 38,814 54 Parent bank 5,809 12,165 19,775 18,256 20,497 '23,167 19,670 19,438 18,363 21,599 55 Other 6,173 8,057 12,946 14,798 14,295 14,416 18,043 16,922 20,255 17,215 56 To foreigners 132,990 149,815 179,953 183,203 187,619 191,822 189,347 189,739 198,817 199,929 57 Other branches of parent bank. 26,941 34,111 44,370 46,386 48,137 50,291 47,015 47,221 51,201 50,641 58 Other banks 65,675 72,259 83,878 '82,034 '83,981 '84,142 '86,784 86,453 91,561 89,974 59 Official institutions 20,185 22,773 25,829 '26,297 '27,461 '28,368 '27,218 27,776 28,014 29,885 60 Nonbank foreigners 20,189 20,672 25,877 28,486 28,040 29,021 28,329 28,288 28,040 29,429 61 Other liabilities 6,933 6,456 6,747 6,965 7,130 '7,075 8,577 8,491 7,521 8,306 62 Total payable in U.S. dollars 107,890 135,907 173,071 177,270 181,813 187,643 184,722 183,298 192,958 192,812 63 To United States 11,437 19,503 31,934 32,068 33,882 '36,472 36,751 35,482 37,693 37,778 64 Parent bank 5,641 11,939 19,561 18,011 20,241 '22,724 19,396 19,168 18,049 21,291 65 Other 5,795 7,564 12,373 14,057 13,640 13,748 17,355 16,314 19,644 16,487 66 To foreigners 92,503 112,879 137,610 141,479 144,220 147,346 142,957 142,680 151,147 150,597 67 Other branches of parent bank. 19,330 28,217 37,098 39,307 40,677 42,739 38,939 39,483 43,043 42,293 68 Other banks 43,656 51,583 60,617 '59,945 '60,861 '60,185 '61,689 61,113 65,984 63,326 69 Official institutions 17,444 19,982 22,878 '23,320 '24,439 '25,377 '24,240 24,481 24,695 26,363 70 Nonbank foreigners 12,072 13,097 17,017 18,906 18,242 19,045 18,088 17,603 17,425 18,614 71 Other liabilities 3,951 3,526 3,527 3,724 3,712 '3,825 5,013 5,136 4,118 4,437 United Kingdom 72 Total, all currencies 69,804 74,883 81,466 80,150 83,178 84,734 83,484 83,270 88,033 90,154 73 To United States 3,978 5,646 5,997 6,272 5,845 6,894 8,537 7,933 7,922 7,310 74 Parent bank 510 2,122 1,198 1,515 1,460 2,150 2,217 1,611 1,425 1,364 75 Other 3,468 3,523 4,798 4,756 4,386 4,743 6,320 6,322 6,496 5,946 76 To foreigners 63,409 67,240 73,228 71,787 75,145 75,683 72,585 72,848 77,580 79,837 77 Other branches of parent bank. 4,762 6,494 7,092 7,762 8,569 8,936 7,987 8,395 8,934 9,187 78 Other banks 32,040 32,964 36,259 33,749 35,933 34,960 34,623 34,163 37,024 36,676 79 Official institutions 15,258 16,553 17,273 17,260 17,538 18,086 17,148 17,366 18,553 20,366 80 Nonbank foreigners 11,349 11,229 12,605 13,016 13,106 13,701 12,827 12,923 13,070 13,608 81 Other liabilities 2,418 1,997 2,241 2,091 2,187 2,157 2,362 2,488 2,532 3,007 82 Total payable in U.S. dollars 49,666 57,820 63,174 62,373 64,343 65,735 63,848 63,334 67,689 68,594 83 To United States 3,744 5,415 5,849 6,108 5,688 6,679 8,348 7,676 7,622 7,004 84 Parent bank 484 2,083 1,182 1,498 1,438 2,083 2,184 1,563 1,363 1,288 85 Other 3,261 3,332 4,666 4,610 4,250 4,596 6,164 6,113 6,259 5,716 86 To foreigners 44,594 51,447 56,372 55,390 57,720 58,136 54,550 54,539 58,962 60,304 87 Other branches of parent bank. 3,256 5,442 5,874 6,561 7,333 7,660 6,583 7,131 7,535 7,724 88 Other banks 20,526 23,330 25,527 23,818 25,172 24,135 23,681 23,254 25,984 25,306 89 Official institutions 13,225 14,498 15,423 15,394 15,674 16,301 15,295 15,252 16,430 18,053 90 Nonbank foreigners 7,587 8,176 9,547 9,617 9,541 10,040 8,990 8,902 9,013 9,221 91 Other liabilities 1,328 959 953 875 936 920 951 1,119 1,105 1,286 Bahamas and Caymans 92 Total, all currencies 31,733 45,203 66,11A 70,950 71,540 74,853 74,727 73,284 78,430 76,031 93 To United States 4,815 11,147 22,723 23,082 25,162 '26,966 25,080 24,487 27,031 27,291 94 Parent bank 2,636 7,628 16,163 14,514 16,426 '18,708 14,835 15,288 14,814 17,390 95 Other 2,180 3,520 6,560 8,568 8,735 8,258 10,245 9,198 12,218 9,902 96 To foreigners 26,140 32,949 42,897 46,618 45,136 46,477 47,161 46,464 50,035 47,244 97 Other branches of parent bank. 7,702 10,569 13,801 14,123 14,001 14,662 13,736 13,206 15,026 14,623 98 Other banks 14,050 16,825 21,758 23,245 22,296 22,693 24,166 23,878 27,370 24,112 99 Official institutions 2,377 3,308 3,573 3,917 4,130 4,216 4,322 4,592 3,184 3,354 100 Nonbank foreigners 2,011 2,248 3,765 5,334 4,709 4,906 4,936 4,789 4,454 5,155 101 Other liabilities 778 1,106 1,154 1,249 1,243 '1,410 2,487 2,334 1,363 1,495 102 Total payable in U.S. dollars 28,840 42,197 63,417 67,168 67,518 70,816 70,399 68,663 73,769 71,292 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • January 1978 3.23 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1977 1977 CCoouunnttrryy oorr aarreeaa 1975 1976 Jan.— Nov.® May June July Aug. Sept. Oct.? Nov.® Holdings (end of period) 4 1 Estimated total 7,703 15,798 19,745 22,196 23,433 27,584 31,068 34,325 37,642 2 Foreign countries . 7,372 12,765 17,609 19,740 20,848 24,644 27,209 30,324 33,266 3 Europe 1,085 2,330 4,034 5,272 6,225 8,480 10,163 12,603 14,003 4 Belgium-Luxembourg.. 13 14 17 18 19 19 19 20 20 5 Germany 215 764 1,112 1,261 1,266 1,847 1,957 2,165 2,742 6 Netherlands 16 288 418 492 503 633 719 821 911 7 Sweden 276 191 148 149 149 155 125 125 100 8 Switzerland 55 261 429 439 485 478 488 474 476 9 United Kingdom 363 485 1,591 2,600 3,478 5,017 6,506 8,640 9,419 10 Other Western Europe. 143 323 314 307 321 326 343 353 331 11 Eastern Europe 4 4 4 4 4 4 4 4 4 12 Canada 395 256 271 279 283 288 292 294 293 13 Latin America 200 312 471 480 481 513 517 519 518 14 Venezuela 4 149 193 193 193 193 183 183 184 15 Other Latin America republics. 29 35 21 18 18 18 18 21 16 Netherlands Antilles 1 161 118 113 113 113 145 159 158 167 17 Asia 5,370 9,323 12.528 13,407 13,567 15,071 15,942 16,612 18,100 3,271 2,687 3,773 4,290 4,314 5,025 5,635 5,958 6,547 18 Japan 321 543 279 279 279 279 279 279 348 19 Africa * * 26 23 13 12 16 18 5 20 All other 21 Nonmonetary international and regional organizations 331 3,033 2,136 2,456 2,585 2,940 3,859 4,001 4,376 22 International 322 2,905 2,032 2,353 2,440 2,830 3,759 3,900 4,276 23 Latin American regional. 9 128 103 103 146 110 100 100 100 Transactions (net purchases, or sales (—), during period) 24 Total 1,994 8,095 21,845 886 2,451 1,238 4,151 3,483 3,257 3,317 25 Foreign countries 1,814 5,393 20,502 1,177 2,131 1,108 3,796 2,564 3,116 2,942 26 Official institutions 1,612 5,116 19,726 1,152 1,962 1,048 3,696 2,493 3,051 2,881 27 Other foreign 202 276 776 24 167 59 101 71 65 61 28 Nonmonetary international and regional organizations 180 2,702 1,343 -292 321 130 354 919 141 376 MEMO: Oil-exporting countries 29 Middle East 2 1,797 3,887 4,123 392 397 -14 533 161 284 864 30 Africa 3 117700 222211 --119944 --2266 6699 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). on a benchmark survey of holdings as of Jan. 31, 1971, and monthly 3 Comprises Algeria, Gabon, Libya, and Nigeria. transactions reports. Excludes nonmarketable U.S. Treasury bonds and 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 June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 418 353 352 379 468 534 382 425 416 424 Assets held in custody: 2 U.S. Treasury securities1 55,600 60,019 66,532 74,098 75,443 75,976 79,285 83,832 89,497 83,832 3 Earmarked gold2 16,838 16,745 16,414 16,184 16,179 16,117 16,073 15,988 15,872 15,988 1 Marketable U.S. Treasury bills, certificates of indebtedness, notes, NOTE.—Excludes deposits and U.S. Treasury securities held for interand bonds; and nonmarketable U.S. Treasury securities payable in dollars national and regional organizations. Earmarked gold is gold held for and in foreign currencies. foreign and international accounts and is not included in the gold stock 2 The value of earmarked gold increased because of the changes in of the United States. par value of the U.S. dollar in May 1972 and in October 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment transactions A65 3.25 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1977 1977 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 1975R 1976 Jan.- May June July Aug. Sept. Oct.? Nov.F NOV.P U.S. corporate securities Stocks 1 Foreign purchases 15,355 18,227 12,910 1,207 1,196 1,373 1,023 1,012 973 1,281 2 Foreign sales 10,678 15,475 10,532 978 948 1,162 900 846 752 899 3 Net purchases, or sales ( —) 4,678 2,753 2,378 229 248 211 123 166 222 382 4 Foreign countries 4,660 2,740 2,368 209 254 210 124 170 223 385 5 Europe 2,491 336 850 96 33 29 37 57 109 200 6 France 262 256 43 -3 21 -24 -13 5 27 1 7 Germany 251 68 233 37 12 20 — 1 14 37 64 8 359 -199 13 27 -10 -2 -18 5 10 9 Switzerland 899 -100 155 4 -20 5 -7 6 2 34 10 United Kingdom 594 340 504 35 35 57 67 80 52 106 11 Canada 361 324 51 -33 -3 12 -5 -3 20 21 12 Latin America -7 155 113 17 17 4 1 -3 -4 27 13 Middle East1 1,649 1,803 1,282 124 195 171 94 108 93 128 14 Other Asia 142 119 58 4 10 -7 -3 8 2 8 is 10 7 5 1 2 2 16 1155 -4 9 j 2 -2 1 2 2 17 Nonmonetary international and regional organizations 18 13 1111 20 -7 2 -1 — 5 — 1 —3 Bonds2 18 Foreign purchases 5,408 5,529 7,404 609 976 752 714 550044 994422 774433 19 Foreign sales 4,642 4,322 3,165 332 394 286 252 383 292 226 20 Net purchases, or sales (—) 766 1,207 4,239 277 582 467 463 121 650 517 21 Foreign countries 1,795 1,248 4,193 308 569 499 438 123 650 507 22 Europe 113 91 1,986 99 314 232 130 33 376 320 23 France 82 39 -29 — 7 -3 1 1 1 -5 24 Germany -6 -49 49 13 12 12 1 3 5 4 25 Netherlands -9 -29 72 -28 57 11 21 2 20 26 Switzerland 117 158 164 19 17 34 21 12 -7 -7 27 United Kingdom -52 23 1,674 102 223 197 96 6 324 324 28 Canada 128 96 142 j 7 30 13 15 4 1 29 Latin America 31 94 62 2 12 18 13 j j -1 30 Middle East1 1,553 1,179 1,687 192 235 153 192 79 124 159 31 Other Asia -35 -165 321 17 10 72 84 -14 135 27 32 Africa 5 -25 -5 — 3 33 Other countries 11 --2211 34 Nonmonetary international and regional organizations --11,,002299 --4411 4466 --3311 1133 --3322 2255 -2 1100 Foreign securities 35 Stocks, net purchases, or sales (—) -188 -323 -463 -12 -60 -265 -63 31 106 34 36 Foreign purchases 1,542 1,937 1,974 200 169 159 169 169 247 214 37 Foreign sales 1,730 2,259 2,438 211 229 423 232 138 141 180 38 Bonds, net purchases, or sales (—) -6,326 -8,730 -4,652 -866 -765 -205 -1,003 -669 -278 -356 39 Foreign purchases 2,383 4,932 7,612 607 636 786 852 710 797 588 40 Foreign sales 8,708 13,662 12,264 1,473 1,401 991 1,854 1,379 1,075 944 41 Net purchases, or sales ( — ) of stocks and bonds.. -6,514 -9,053 -5,115 -878 -824 -469 -1,066 -639 -172 -321 42 Foreign countries -4,323 -7,155 -3,536 -204 -696 -393 -227 -632 -21 -344 43 Europe -53 -843 -1,169 -124 -272 -267 -22 -24 -30 -260 44 Canada -3,202 -5,245 -2,249 -128 -292 -241 -255 -573 45 -21 45 Latin America -306 18 -17 -42 52 -7 43 -170 -8 46 Asia -622 -699 -82 62 -93 57 55 2 136 -57 47 Africa 15 48 4 3 1 j — 2 48 Other countries -155 -416 -57 2 2 5 1 -81 2 49 Nonmonetary international and regional organizations -2,192 -1,898 -1,579 -673 -129 -76 -839 -6 -151 23 i Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, 2 Includes State and local government securities, and securities of U.S. Kuwait,"Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial Govt, agencies and corporations. Also includes issues of new debt securities States). sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • January 1978 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 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy June Sept. Dec. Mar. June® June Sept. Dec. Mar. June® Liabilities to foreigners Claims on foreigners 1 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 1,060 987 11,,000000 11,,112222 4 Deposits with banks abroad in reporter's 558 592 442 431 448 5 Other 443399 446688 554455 556699 667744 By area or country: 6 Foreign countries 66,,002200 66,,222222 66,,337744 6,359 66,,221166 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 21 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 75 72 35 Cuba 1 1 1 \ 1 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 102 104 141 148 140 188 182 276 237 236 42 Netherlands Antilles 1 55 68 10 11 17 10 9 9 14 8 43 Other Latin America 127 129 100 160 151 436 444 441 914 1,146 44 Asia 1,705 11,,997788 2,052 2,057 1,891 2,703 2,401 2,282 2,314 22,,331188 45 China, People's Republic of (Mainland) 1 11 1 3 2 16 5 3 1 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 32 42 43 21 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 12 100 112 105 111 106 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 1 Includes Surinam until 1976. mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks and intercompany accounts NOTE.—Reported by exporters, importers, and industrial and com- between U.S. companies and their affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A67 3.27 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Large Nonbanking Concerns in the United States Millions of dollars, end of period 1977 TTyyppee aanndd ccoouunnttrryy 1973 1974 1975 1976 MMaayy June July Aug. SSeepptt.. Oct.*5 1 3,185 3,357 3,799 5,468 7,481 7,685 7,357 7,739 6,846 7,591 By type: 2 Payable in dollars 2,641 2 MO 3,042 4,788 6,787 6,895 6,619 6,976 6,117 6,815 3 2,604 2,591 2,710 4,415 6,264 6,424 6,195 6,475 5,709 6,362 4 Short-term investments 1 37 69 332 373 523 471 424 501 408 453 5 Payable in foreign currencies 544 697 757 680 695 790 739 764 729 776 6 Deposits 431 429 511 373 361 389 352 394 356 374 7 Short-term investments 1 113 268 246 302 334 401 387 370 373 402 By country: 8 United Kingdom 1,128 11,,335500 11,,330066 11,,883377 11,,992200 2,318 2,123 2,194 1,781 1,823 9 Canada 775 967 1,156 1,539 1,645 1,652 1,725 1,930 1,607 1,936 10 Bahamas 597 391 546 1,264 2,414 2,114 2,113 2,225 1,753 2,361 11 Japan 336 398 343 113 158 184 149 139 147 153 12 All other 349 252 446 715 1,344 1,417 1,247 1,251 1,558 1,318 i Negotiable and other readily transferable foreign obligations payable NOTE.—Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 3.26. 3.28 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1976 1977 1976 1977 Area and country 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 3 Germany 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 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 489 498 423 432 406 712 739 775 817 831 388 402 397 413 384 85 80 77 96 108 15 Africa 2 2 2 2 3 163 165 187 199 158 16 All other i 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 • January 1978 3.29 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on Dec. 31, 1977 Rate on Dec. 31, 1977 Rate on Dec. 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. 3.0 Dec. 1977 Sweden 8.0 Oct. 1976 Belgium.. 9.0 Dec. 1977 Italy 11.5 Aug. 1977 Switzerland 1.5 July 1977 Brazil 28.0 May 1976 Japan 4.25 Sept. 1977 United Kingdom 7.0 Nov. 1977 Canada.. 7.5 May 1977 Mexico 4.5 June 1942 Venezuela 5.0 Oct. 1970 Denmark. 9.0 Mar. 1977 Netherlands 4.5 Nov. 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 CCoouunnttrryy,, oorr ttyyppee 11997744 11997755 11997766 July Aug. Sept. Oct. Nov. Dec. 1 Euro-dollars 11.01 7.02 5.58 5.80 6.30 6.56 7.14 7.09 7.12 2 United Kingdom 13.34 10.63 11.35 7.77 6.91 6.03 5.05 5.32 6.76 3 Canada 10.47 8.00 9.39 7.27 7.44 7.31 7.23 7.34 7.20 4 Germany 99..8800 4.87 4.19 4.20 4.04 4.07 4.06 4.09 3.94 3.01 1.45 3.01 2.41 2.37 2.23 2.32 2.20 5.17 7.02 3.05 3.48 4.39 4.55 5.94 6.65 7.91 8.65 8.67 8.51 8.38 8.41 9.28 9.88 8 Italy 10.37 16.32 14.09 13.94 12.42 12.05 11.74 11.38 6.63 10.25 6.85 6.20 6.20 6.25 6.38 7.75 1111..6644 77..7700 6.25 6.24 5.32 5.25 5.37 5.75 NOTE.—Rates are for 3-month interbank loans except for—Canada, over; and Japan, loans and discounts that can be called after being held finance company paper; Belgium, time deposits of 20 million francs and over a minimum of two month-ends. 3.31 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1977 Country/currency 1974 1975 July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar 143.89 130.77 122.15 112.20 110.47 110,37 111.90 112.70 113.36 2 Austria/shilling 5.3564 5.7467 5.5744 6.1691 6.0792 6.0377 6.1567 6.2551 6.4734 3 Belgium/franc 2.5713 2.7253 2.5921 2.8208 2.8107 2.7910 2.8229 2.8396 2.9608 4 Canada/dollar 102.26 98.30 101.41 94.230 93.028 93.168 91.010 90.145 91.132 5 Denmark/krone 16.442 17.437 16.546 16.769 16.590 16.188 16.359 16.327 16.833 6 Finland/markka 26.565 27.285 25.938 24.902 24.801 23.977 24.139 23.986 24.299 7 France/franc 20.805 23.354 20.942 20.607 20.415 20.314 20.574 20.614 20.844 8 Germany/deutsche mark... 38.723 40.729 39.737 43.827 43.168 43.034 43.904 44.633 46.499 9 India/rupee 12.460 11.926 11.148 11.342 11.465 11.450 11.605 11.576 11.712 10 Ireland/pound 234.03 222.16 180.48 172.26 173.97 174.31 177.11 181.78 185.46 11 Italy/lira .15372 .15328 .12044 .11330 .11332 .11318 .11353 .11388 .11416 12 Japan/yen .34302 .33705 .33741 .37756 .37499 .37486 .39263 .40872 .41491 13 Malaysia/ringgit 41.682 41.753 39.340 40.443 40.606 40.600 41.088 41,910 42.201 14 Mexico/peso 8.0000 8.0000 6.9161 4.3528 4.3629 4.3776 4.4069 4.4096 4.4059 15 Netherlands/guilder 37.267 39.632 37.846 40.983 40.831 40.604 41.048 41.366 42.955 16 New Zealand/dollar 140.02 121.16 99.115 97.160 96.826 96.812 98.152 99.392 100.59 17 Norway/krone 18.119 19.180 18.327 19.023 18.863 18.226 18.232 18.328 19.056 18 Portugal/escudo 3.9506 3.9286 3.3159 2.5953 2.5678 2.4606 2.4601 2.4575 2.4755 19 South Africa/rand 146.98 136.47 114.85 114.98 115.00 115.00 115.04 115.04 115.04 20 Spain/peseta 1.7337 1.7424 1.4958 1.2382 1.1804 1.1824 1.1902 1.2060 1.2237 21 Sri Lanka/rupee 14.978 14.385 11.908 13.700 13.721 12.301 11.618 8.7721 6.2000 22 Sweden/krona 22.563 24.141 22.957 22.991 22.472 20.602 20.846 20.848 21.044 23 Switzerland/franc 33.688 38.743 40.013 41.487 41.523 42.115 43.909 45.507 48.168 24 United Kingdom/pound... 234.03 222.16 180.48 172.26 173.97 174.31 177.11 181.78 185.46 MEMO: 25 United States/dollar i 84.11 82.20 89.68 88.67 89.10 89.52 88.38 87.29 85.52 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

A69 Guide to Tabular Presentation and Statistical Releases GUIDE TO TABULAR PRESENTATION SYMBOLS AND ABBREVIATIONS p Preliminary SMSA's Standard metropolitan statistical areas r Revised REIT's Real estate investment trusts rp Revised preliminary * Amounts insignificant in terms of the 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 December 1977 A-78 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board of Governors ARTHUR F. BURNS, Chairman HENRY C. WALLICH STEPHEN S. GARDNER, Vice Chairman PHILIP E. COLD WELL OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY POLICY THOMAS J. O'CONNELL, Counsel to the Chairman MILTON W. HUDSON, Assistant to the Chairman STEPHEN H. AXILROD, Staff Director JOSEPH R. COYNE, Assistant to the Board ARTHUR L. BROIDA, Deputy Staff Director KENNETH A. GUENTHER, Assistant to the Board MURRAY ALTMANN, Assistant to the Board JAY PAUL BRENNEMAN, Special Assistant to the PETER M. KEIR, Assistant to the Board Board STANLEY J. SIGEL, Assistant to the Board FRANK O'BRIEN, JR., Special Assistant to the Board NORMAND R. V. BERNARD, Special Assistant to the JOSEPH S. SIMS, Special Assistant to the Board Board DONALD J. WINN, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director JOSEPH S. ZEISEL, Deputy Director JOHN D. HAWKE, JR., General Counsel EDWARD C. ETTIN, Associate Director ROBERT E. MANNION, Associate General Counsel JOHN H. KALCHBRENNER, Associate Director ALLEN L. RAIKEN, Associate General Counsel JOHN J. MINGO, Senior Research Division Officer CHARLES R. MCNEILL, Assistant to the General ELEANOR J. STOCK WELL, Senior Research Division Counsel Officer JAMES R. WETZEL, Senior Research Division Officer ROBERT A. EISENBEIS, Associate Research Division OFFICE OF THE SECRETARY Officer JARED J. ENZLER, Associate Research Division THEODORE E. ALLISON, Secretary Officer GRIFFITH L. GARWOOD, Deputy Secretary JOHN D. PAULUS, Associate Research Division *ROBERT E. MATTHEWS, Assistant Secretary Officer J. CORTLAND G. PERET, Associate Research Division Officer DIVISION OF CONSUMER AFFAIRS RICHARD H. PUCKETT, Associate Research Division Officer JANET O. HART, Director F HELMUT F. WEN DEL, Associate Research Division NATHANIEL E. BUTLER, Associate Director Officer JERAULD C. KLUCKMAN, Associate Director JAMES M. BRUNDY, Assistant Research Division Officer ROBERT M. FISHER, Assistant Research Division DIVISION OF BANKING Officer SUPERVISION AND REGULATION STEPHEN P. TAYLOR, Assistant Research Division Officer JOHN E. RYAN, Director JFREDERICK C. SCHADRACK, Deputy Director LEVON H. GARABEDIAN, Assistant Director FREDERICK R. DAHL, Associate Director WILLIAM W. WILES, Associate Director DIVISION OF INTERNATIONAL FINANCE JACK M. EGERTSON, Assistant Director DON E. KLINE, Assistant Director EDWIN M. TRUMAN, Director THOMAS E. MEAD, Assistant Director JOHN E. REYNOLDS, Counselor ROBERT S. PLOTKIN, Assistant Director ROBERT F. GEMMILL, Associate Director THOMAS A. SIDMAN, Assistant Director GEORGE B. HENRY, Associate Director SAMUEL H. TALLEY, Assistant Director CHARLES J. SIEGMAN, Associate Director WILLIAM TAYLOR, Assistant Director SAMUEL PIZER, Senior International Division Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All and Official Staff PHILIP C. JACKSON, JR. DAVID M. LILLY J. CHARLES PARTEE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES JOHN M. DENKLER, Staff Director WILLIAM H. WALLACE, Staff Director ROBERT J. LAWRENCE, Deputy Staff Director DONALD E. ANDERSON, Assistant Director for DIVISION OF FEDERAL RESERVE Construction Management BANK EXAMINATIONS AND BUDGETS GORDON B. GRIM WOOD, Assistant Director and Program Director for Contingency Planning ALBERT R. HAMILTON, Associate Director CLYDE H. FARNSWORTH, JR., Assistant Director DIVISION OF DATA PROCESSING JOHN F. HOOVER, Assistant Director P. D. RING, Assistant Director CHARLES L. HAMPTON, Director BRUCE M. BEARDSLEY, Associate Director DIVISION OF ULYESS D. BLACK, Assistant Director FEDERAL RESERVE BANK OPERATIONS GLENN L. CUMMINS, Assistant Director ROBERT J. ZEMEL, Assistant Director JAMES R. KUDLINSKI, Director WALTER ALTHAUSEN, Assistant Director DIVISION OF PERSONNEL BRIAN M. CAREY, Assistant Director HARRY A. GUINTER, Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER JOHN KAKALEC, Controller EDWARD T. MULRENIN, Assistant Controller DIVISION OF ADMINISTRATIVE SERVICES WALTER W. KREIMANN, Director JOHN L. GRIZZARD, Assistant Director JOHN D. SMITH, Assistant Director *On loan from the Federal Reserve Bank of Philadelphia. tOn leave of absence. £On loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE ARTHUR F. BURNS, Chairman PAUL A. VOLCKER, Vice Chairman PHILIP E. COLD WELL 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 THOMAS DAVIS, Associate Economist MURRAY ALTMANN, Deputy Secretary ROBERT EISENMENGER, Associate Economist NORMAND R. V. BERNARD, Assistant EDWARD C. ETTIN, Associate Economist Secretary JAMES L. KICHLINE, Associate Economist THOMAS J. O'CONNELL, General Counsel JOHN E. REYNOLDS, Associate Economist EDWARD G. GUY, Deputy General Counsel KARL SCHELD, Associate Economist STEPHEN H. AXILROD, Economist EDWIN M. TRUMAN, Associate Economist JOSEPH S. ZEISEL, Associate Economist ANATOL BALBACH, Associate Economist RICHARD G. DAVIS, 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 HENRY S. WOODBRIDGE, FIRST FEDERAL EDWARD BYRON SMITH, SEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT WALTER B. WRISTON, SECOND FEDERAL CLARENCE C. BARKSDALE, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT SAMUEL H. BALLAM, JR., THIRD FEDERAL RICHARD H. VAUGHAN, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT M. BROCK WEIR, FOURTH FEDERAL J. W. MCLEAN, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOHN H. LUMPKIN, FIFTH FEDERAL JAMES D. BERRY, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT FRANK A. PLUMMER, SIXTH FEDERAL GILBERT F. BRADLEY, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary CONSUMER ADVISORY COUNCIL LEONOR K. SULLIVAN, St. Louis, Missouri, Chairman WILLIAM D. WARREN, LOS Angeles, California, Vice Chairman ROLAND E. BRANDEL, San Francisco, California EDNA DECOURSEY JOHNSON, Baltimore, Maryland AGNES H. BRYANT, Detroit, Michigan ROBERT J. KLEIN, New York, New York JOHN G. BULL, Fort Lauderdale, Florida PERCY W. LOY, Portland, Oregon ROBERT V. BULLOCK, Frankfort, Kentucky R. C. MORGAN, EL Paso, Texas LINDA M. COHEN, Washington, D.C. REECE A. OVERCASH, JR., Dallas, Texas ROBERT R. DOCKSON, LOS Angeles, California RAYMOND J. SAULNIER, New York, New York ANNE G. DRAPER, Washington, D.C. E. G. SCHUHART, Dalhart, Texas CARL FELSENFELD, New York, New York JAMES E. SUTTON, Dallas, Texas MARCIA A. HAKALA, Omaha, Nebraska ANNE GARY TAYLOR, Alexandria, Virginia JOSEPH F. HOLT III, Oxnard, California RICHARD D. WAGNER, Simsbury, Connecticut RICHARD L. WHEATLEY, JR., Stillwater, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Louis W. Cabot Frank E. Morris Robert M. Solow James A. Mcintosh NEW YORK* 10045 Robert H. Knight Paul A. Volcker Boris Yavitz Thomas M. Timlen Buffalo 14240 Donald R. Nesbitt John T. Keane PHILADELPHIA 19105 John W. Eckman David P. Eastburn Werner C. Brown Richard L. Smoot CLEVELAND* 44101 Robert E. Kirby Willis J. Winn Otis A. Singletary Walter H. MacDonald Cincinnati 45201 Lawrence H. Rogers, II Robert E. Showaiter Pittsburgh 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND* 23261 E. Angus Powell Robert P. Black Maceo A. Sloan 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 Clifford M. Kirtland, Jr. Monroe Kimbrel Vacancy Kyle K. Fossum Birmingham 35202 Harold B. Blach, Jr. Hiram J. Honea Jacksonville 32203 James E. Lyons Edward C. Rainey Miami 33152 Alvaro L. Carta W. M. Davis Nashville 37203 John C. Bolinger Jeffrey J. Wells New Orleans 70161 Edwin J. Caplan George C. Guynn CHICAGO* 60690 Robert H. Strotz Robert P. Mayo Vacancy Daniel M. Doyle Detroit 48231 Jordan B. Tatter William C. Conrad ST. LOUIS 63166 Armand C. Stalnaker Lawrence K. Roos William B. Walton Donald W. Moriarty Little Rock 72203 Ronald W. Bailey John F. Breen Louisville 40201 Vacancy 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 Vacancy 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 Vacancy Fredric W. Reed Houston 77001 Alvin I. Thomas J. Z. Rowe San Antonio 78295 Vacancy Carl H. Moore SAN FRANCISCO ... .94120 Joseph F. Alibrandi John J. Balles Cornell C. Maier John B. Williams Los Angeles 90051 Caroline L. Ahmanson 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 INDUSTRIAL PRODUCTION—1976 EDITION. 1977. 304 pp. FUNCTIONS. 1974. 125 pp. $4.50 each; 10 or more to one address, $4.00 each. ANNUAL REPORT BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per 102 pp. $1.00 each; 10 or more to one address, year or $2.00 each in the United States, its posses- $.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, 1971-75. 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 ReserBulletin. All others, $5.00 each. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more ANNUAL STATISTICAL DIGEST, 1972-76. 1977. 388 pp. to one address, $.40 each. PART 2. 1971. 153 pp. $10.00 per copy. and PART 3. 1973. 131 pp. Each volume $1.00; FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- 10 or more to one address, $.85 each. tion includes one issue of Historical Chart Book. OPEN MARKET POLICIES AND OPERATING PROCE- $12.00 per year or $1.25 each in the United States, DURES—STAFF STUDIES. 1971. 218 pp. $2.00 its possessions, Canada, and Mexico; 10 or more each; 10 or more to one address, $1.75 each. of same issue to one address, $1.00 each. Else- REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT where, $15.00 per year or $1.50 each. MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. HISTORICAL CHART BOOK. Issued annually in Sept. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Subscription to Monthly Chart Book includes one 10 or more to one address, $2.50 each. issue. $1.25 each in the United States, its posses- THE ECONOMETRICS OF PRICE DETERMINATION CONsions, Canada, and Mexico; 10 or more to one FERENCE, October 30-31, 1970, Washington, D.C. address, $1.00 each. Elsewhere, $1.50 each. 1972. 397 pp. Cloth ed. $5.00 each; 10 or more CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per to one address, $4.50 each. Paper ed. $4.00 each; year or $.40 each in the United States, its posses- 10 or more to one address, $3.60 each. sions, Canada, and Mexico; 10 or more of same FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE issue to one address, $13.50 per year or $.35 each. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. Elsewhere, $20.00 per year or $.50 each. 487 pp. $4.00 each; 10 or more to one address, SELECTED INTEREST AND EXCHANGE RATES—WEEKLY $3.60 each. SERIES OF CHARTS. Weekly. $15.00 per year or $.40 each in the United States, its possessions, LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1973. 271 pp. $3.50 each; 10 or more Canada, and Mexico; 10 or more of same issue to one address, $3.00 each. to one address, $13.50 per year or $.35 each. Elsewhere, $20.00 per year or $.50 each. IMPROVING THE MONETARY AGGREGATES (Report of the THE FEDERAL RESERVE ACT, as amended through De- Advisory Committee on Monetary Statistics). cember 1976, with an appendix containing provi- 1976. 43 pp. $1.00 each; 10 or more to one sions of certain other statutes affecting the Federal address, $.85 each. Reserve System. 307 pp. $2.50. ANNUAL PERCENTAGE RATE TABLES (Truth in Lend- REGULATIONS OF THE BOARD OF GOVERNORS OF THE ing—Regulation Z) Vol. I (Regular Transactions). FEDERAL RESERVE SYSTEM 1969. 100 pp. Vol. II (Irregular Transactions). PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- 1969. 116 pp. Each volume $1.00, 10 or more ERNORS, as of June 30, 1977. $7.50. 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 BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— REVISED SERIES. 7/72. (Short pamphlets suitable for classroom use. Multiple YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. copies available without charge.) RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 10/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . AGE REVISION OF CONSUMER CREDIT STATISTICS. 10/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . ONE-BANK HOLDING COMPANIES BEFORE THE 1970 DOCTORS, LAWYERS, SMALL RETAILERS, AND AMENDMENTS. 12/72. OTHERS WHO MAY PROVIDE INCIDENTAL CREDIT YIELDS ON RECENTLY OFFERED CORPORATE BONDS. THE EQUAL CREDIT OPPORTUNITY ACT AND . 5/73. WOMEN CREDIT-CARD AND CHECK-CREDIT PLANS AT COMMER- FAIR CREDIT BILLING CIAL BANKS. 9/73. IF YOU BORROW TO BUY STOCK RATES ON CONSUMER INSTALMENT LOANS. 9/73. U.S. CURRENCY NEW SERIES FOR LARGE MANUFACTURING CORPORA- WHAT TRUTH IN LENDING MEANS TO YOU TIONS. 10/73. U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. STAFF ECONOMIC STUDIES INFLATION AND STAGNATION IN MAJOR FOREIGN IN- DUSTRIAL COUNTRIES. 10/74. Studies and papers on economic and financial subjects THE STRUCTURE OF MARGIN CREDIT. 4/75. that are of general interest in the field of economic NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT research. SELECTED LARGE COMMERCIAL BANKS. 4/75. RECENT TRENDS IN FEDERAL BUDGET POLICY. 7/75. SUMMARIES ONLY PRINTED IN THE BULLETIN RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL (Limited supply of mimeographed copies of full text MARKETS. 10/75. available upon request for single copies.) MINNIE: A SMALL VERSION OF THE MIT-PENN-SSRC ECONOMETRIC MODEL, Staff Economic Study by Douglas Battenberg, Jared J. RECENT TRENDS IN LOCAL BANKING MARKET STRUC- Enzler, and Arthur M. Havenner. 11/75. TURE, by Samuel H. Talley. May 1977. 26 pp. AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff THE PERFORMANCE OF BANK HOLDING COMPANY- Economic Study by Robert J. Lawrence and AFFILIATED FINANCE COMPANIES, by Stephen A. Samuel H. Talley. 1/76. Rhoades and Gregory E. Boczar. Aug. 1977. 19 pp. GREELEY IN PERSPECTIVE, by Paul Schweitzer and Joshua INDUSTRIAL ELECTRIC POWER USE. 1/76. Greene. Sept. 1977. 17 pp. REVISION OF MONEY STOCK MEASURES. 2/76. SURVEY OF FINANCE COMPANIES, 1975. 3/76. STRUCTURE AND PERFORMANCE STUDIES IN BANKING: A REVISED SERIES FOR MEMBER BANK DEPOSITS AND SUMMARY AND EVALUATION, by Stephen A. Rhoades. Dec. 1977. 45 pp. AGGREGATE RESERVES. 4/76. INDUSTRIAL PRODUCTION—1976 Revision. 6/76. FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- PRINTED IN FULL IN THE BULLETIN NISMS: A SUMMARY. 6/76. Staff Economic Studies shown in list below. RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF BANKS. 10/76. REPRINTS NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- (Except for Staff Papers, Staff Economic Studies, and FACTURING AND MATERIALS. 11/76. some leading articles, most of the articles reprinted do U.S. INTERNATIONAL TRANSACTIONS IN A RECOVERING not exceed 12 pages.) ECONOMY. 4/77. BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS A REVISED INDEX OF MANUFACTURING CAPACITY, IN 1976. 4/77. Staff Economic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. 11/66. CHANGES IN BANK LENDING PRACTICES, 1976. 4/77. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN SURVEY OF TERMS OF BANK LENDING—NEW SERIES. 1960-67. 4/68. 5/77. MEASURES OF SECURITY CREDIT. 12/70. THE COMMERCIAL PAPER MARKET. 6/77. REVISED MEASURES OF MANUFACTURING CAPACITY CONSUMPTION AND FIXED INVESTMENT IN THE ECO- UTILIZATION. 10/71. NOMIC RECOVERY ABROAD. 10/77. REVISION OF BANK CREDIT SERIES. 12/71. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF CHANGES IN TIME AND SAVINGS DEPOSITS AT COM- U.S. BANKS. 2/72. MERCIAL BANKS, April-July 1977. 11/77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (S^e 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 Turnover, 13 BANKERS balances, 16, 18, 20, 21, 22 Discount rates at F.R. Banks (See Interest rates) (See also Foreigners) Discounts and advances by F.R. Banks (See Loans) Banks for cooperatives, 35 Dividends, corporate, 38 Bonds (See also U.S. Govt, securities): New issues, 36, 37 EMPLOYMENT, 46, 47 Yields, 3 Euro-dollars, 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 loans) Treasury operating balance, 30 Federal Financing Bank, 35 CAPACITY utilization, 46, 47 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 Capital accounts: Federal home loan banks, 35 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

Federal Reserve Bulletin • January 1978 A77 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 organizations, 56-61, 65-67 Savings deposits 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 New security issues, 36 companies) Ownership of securities of, 18, 20, 21, 22, 29 Loans (See also specific types of loans): Yields of securities, 3 Banks, by classes, 16, 17, 18, 20-23, 29 State member banks, 17 Commercial banks, 3, 15-18, 20-23, 24, 26 Stock market, 28 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Stocks (See also Securities); Insurance companies, 29, 41 New issues, 36, 37 Insured or guaranteed by U.S., 40, 41 Prices, 28 Savings and loan assns., 29 TAX receipts, Federal, 31 MANUFACTURERS: Time deposits, 3, 10, 13. 15, 16, 17, 19, 20, 21, Capacity utilization, 46, 47 22. 23 Production, 46, 49 Trade, foreign, 55 Margin requirements, 28 Treasury currency. Treasury cash, 4 Member banks: Treasury deposits, 4, 12, 30 Assets and liabilities, by classes, 16, 17, 18 Treasury operating balance, 30 Borrowings at Federal Reserve Banks, 5, 12 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 U.S. Govt, securities: rates) Bank holdings, 16, 17, 18, 20, 21, 22, 29, Money stock measures and components, 3, 14 32, 33 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 34 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4, 12, 13, 32, 33 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Foreign and international holdings and transactions, 12, 32, 64 NATIONAL banks, 17, 19 Open market transactions, 11 National defense outlays, 31 Outstanding, by type of security, 32, 33 National income, 52 Ownership, 32, 33 Nonmember banks, 17, 18, 19 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

A78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis^1, Chicago | OmaU* Kcu IP<% Kansas Cityl Oklakoma. City mc>if<&J ft^^tfantX / Dallas Jiouston Hi* • ' SanAntmioi January 1977 LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories _ „ , ^ Fedf eratl 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