Federal Reserve Bulletin, 1978-10

O C T O B ER 1978 FEDERAL RESERVE BULLETIN Summary Measures of the Dollar's Foreign Exchange Value Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the FEDERAL RESERVE BULLETIN is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The BULLETIN may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NUMBER 10 • VOLUME 64 • OCTOBER 1978 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman 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 Mendelle T. Berenson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 783 SUMMARY MEASURES OF THE 821 ANNOUNCEMENTS DOLLAR'S FOREIGN EXCHANGE VALUE Approval of an increase in the discount Assessment of changes in the dollar's rate from 8 to SV2 per cent, effective over-all international position through use October 16, 1978, following an increase of a summary index of the dollar's average from 73A to 8 per cent, effective September exchange value against a broad spectrum 22. of foreign currencies. Regulations implementing the Community Reinvestment Act announced by Federal 790 RECORD OF POLICY ACTIONS OF THE regulators of banks and thrift institutions. FEDERAL OPEN MARKET COMMITTEE Amendment of Regulation T to permit At its meeting on August 15, 1978, the brokers and dealers to extend and maintain Committee decided that ranges of tolercredit on certain convertible corporate ance for the annual rates of growth in M-1 bonds. (See Law Department.) and M-2 over the August-September period should be 4 to 8 per cent and 6 to Guidance to member banks concerning 10 per cent, respectively. With regard to advertising for automatic transfer of funds the Federal funds rate, the Manager was from savings to checking accounts. instructed to seek a rate of around 8 per Completion of a nationwide network for cent early in the period following the making payments electronically through meeting. Subsequently, if the 2-month use of Federal Reserve facilities. growth rates of M-l and M-2 appeared to be significantly above or below the mid- Adoption of a uniform interagency system points of the indicated ranges, the objec- for rating the trust departments of the tive for the funds rate was to be raised Nation's commercial banks. or lowered in an orderly fashion within Policy statement on tax transactions bea range of 13A to 8V£ per cent. It was also tween State member banks and their parent agreed that in assessing the behavior of holding companies. the aggregates, the Manager should give approximately equal weight to the behav- Proposed simplification of reports of conior of M-l and M-2. dition and income. Revised OTC stock list. 801 LAW DEPARTMENT Changes in Board staff. Amendment of Regulation T, various bank holding company and bank merger orders, Four State banks admitted to membership and pending cases. in the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

827 INDUSTRIAL PRODUCTION A70 BOARD OF GOVERNORS AND STAFF Output increased an estimated 0.5 per cent A72 OPEN MARKET COMMITTEE AND in September. STAFF; ADVISORY COUNCILS A1 FINANCIAL AND BUSINESS STATISTICS A73 FEDERAL RESERVE BANKS, A3 Domestic Financial Statistics BRANCHES, AND OFFICES A46 Domestic Nonfinancial Statistics A74 FEDERAL RESERVE BOARD PUBLICATIONS A54 International Statistics A76 INDEX TO STATISTICAL TABLES A69 GUIDE TO TABULAR PRESENTATION AND STATISTICAL RELEASES A78 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Measures of the Dollar's Foreign Exchange Value This article was prepared by Peter Hooper and 1. Exchange rates of U.S. dollar John Morton of the Division of International in terms of selected currencies Finance. March 1973=100 The changing value of the dollar on foreign exchange markets has received considerable attention during the past 2 years. Most of this attention has focused on the sharp decline in the dollar's value against the Swiss franc, the Japanese yen, and the German mark. Relatively little attention has been paid to the fact that the dollar has declined by much less against the British pound and the Italian lira and has increased in value against the Canadian dollar (Chart 1). Assessing the dollar's value on foreign exchange markets by looking at only one or a few exchange rates can be misleading, just as it can be misleading to judge the over-all price level by looking at the prices of only one or a few commodities. In order to assess changes in the dollar's over-all international position it is helpful to consider a summary index of the dollar's average exchange value against a broad spectrum of foreign currencies, mmm I1 mm much as the consumer and wholesale price in- 1976 dexes are used to measure the average prices Exchange rates in terms of units of foreign currency per U.S. dollar, quarterly averages of daily rates. of a large number of goods. This article describes in general terms the uses of average or "effective" exchange-rate changes in effective exchange rates that have indexes and the construction of such indexes for been adjusted for movements in relative prices. the dollar (including the index published in the The latter part of this article describes such FEDERAL RESERVE BULLETIN). The benefit of price-adjusted or "real" exchange-rate indexes. effective exchange-rate indexes has become especially evident since the emergence of a system of relatively flexible exchange rates and EFFECTIVE the substantial increase in the variability of EXCHANGE-RATE INDEXES individual exchange rates in recent years. Moreover, because increased exchange-rate As with any price index, individual foreign variation often has been closely associated with currency prices of the dollar can be combined increasing divergences in rates of inflation in a number of ways to construct an effective among countries, it is useful, when addressing exchange-rate index. The method employed to a number of economic issues, to consider construct the index should be determined by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 use of the index. Before describing the methods Third, changes in exchange rates have direct of construction, therefore, it is desirable to and indirect impacts on the level of domestic consider several major uses for effective ex- prices. After a depreciation of the dollar, the change-rate indexes. prices of imported goods, as well as the prices of domestically produced goods that compete with imports, tend to rise, and thereby put USES OF upward pressure on the U.S. price level. More- EFFECTIVE EXCHANGE-RATE INDEXES over, increased demand for U.S. exports, stim- First, effective exchange-rate indexes can be ulated by the decline in the foreign-currency used to measure shifts in the over-all supply and prices of those exports, also contributes to an demand for dollars on foreign exchange mar- increase in domestic U.S. prices. The effective kets, complementing other summary measures exchange-rate index provides a useful summary of changes in over-all U.S. international trans- statistic to help in assessing the over-all effect actions. The total supply of and demand for on the domestic price level of diverse bilateral dollars on foreign exchange markets derive from exchange-rate movements. U.S. demands for foreign goods and foreigncurrency-denominated financial assets and CONSTRUCTION OF EFFECTIVE foreign demands for U.S. goods and dollar- EXCHANGE-RATE INDEXES denominated financial assets. Shifts in these demands are measured in part by changes in Indexes of the dollar's effective exchange value the U.S. trade balance and in net capital flows. are constructed by averaging the dollar's bilat- When such shifts are not balanced they result eral exchange values in terms of a number of in excess demand for or supply of dollars at foreign currencies. The construction of such current exchange rates, and the market price of indexes may differ with regard to the selection dollars must adjust. An excess supply of dollars of foreign currencies included and the choice resulting from a decline in demand for U.S. of weights assigned to the individual foreign goods or dollar-denominated financial assets currencies. The following discussion describes would tend to cause a decline in the foreign the general aspects of the construction of excurrency price of the dollar. An effective ex- change-rate indexes. Additional technical dechange-rate index is more useful than any indi- tails were summarized in the August 1978 vidual (bilateral) exchange rate in summarizing BULLETIN (page 700). these overall exchange market pressures, just as The index of the effective exchange rate of the total trade balance is more useful than the the dollar published in the BULLETIN is an balance of U.S. trade with any single country average of the dollar's exchange rates against in summarizing net U.S. international transac- the currencies of 10 major foreign industrial tions in goods. countries (listed in Table 1). While no group Second, effective exchange-rate indexes of currencies can be ideal for all purposes, this measure one of the important determinants of particular group of foreign currencies was cho- U.S. international transactions (imports, ex- sen for several reasons. Each of the 10 foreign ports, and capital flows). For example, a decline countries has a well-developed foreign exchange in the average foreign-currency price of the market with rates determined primarily by pridollar tends to improve U.S. price competi- vate market transactions. As a group, these tiveness by lowering the average price of U.S. countries account for nearly two-thirds of total goods relative to the average price of foreign world trade and more than half of U.S. trade; goods. As a result, over time U.S. exports tend their importance in international financial flows to increase and U.S. imports tend to decrease. is even greater. Moreover, of the countries Thus, movements in the dollar's effective ex- whose currencies are not included in the index, change rate provide clues to future movements many either seek to link their currencies directly in the trade balance. to one or more of the currencies included or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Value of the Dollar 785 use these currencies for their international 2. Indexes of average exchange value of U.S. dollar, transactions. alternative weighting schemes Once the currencies to be included in the index have been selected, weights must be assigned to them prior to averaging. Ideally, the Bilateral weights assigned to each foreign currency in an index should reflect the importance of that cur- A. /^v / rency with respect to the particular economic V w v\ problem being analyzed. The appropriate weight Multilateral \ to be assigned to the German mark in an index used to measure the impact of changes in the dollar's foreign exchange value on the U.S. ! 1974 i 1 1976 i i 1978 trade balance is one that would reflect the mag- Geometric weighted averages against 10 foreign currencies, nitude of total U.S. trade with Germany, the with weights described in Table 1. extent to which German and U.S. producers compete in third markets, and the price sensi- most effective exchange-rate indexes employ tivity of producers and consumers in all of these broadly based weights such as a country's share markets. The weight assigned to the mark in in international trade. Trade shares are intuian index used to measure the impact of changes tively appealing in view of the importance of in exchange rates on the U.S. price level should trade-related questions in the use of effective reflect the magnitude of U.S. imports from exchange-rate indexes. Germany, the importance of alternative sources Several types of trade weights can be used of supply, and the price sensitivity of U.S. in constructing effective exchange-rate indexes. import demand. Such an "ideal" procedure for Two in particular have been widely employed: constructing exchange-rate indexes requires a bilateral and multilateral (Chart 2). In an exvariety of complex weighting schemes and the change-rate index for the dollar, bilateral construction of a different index for each prob- weights are determined by each country's share lem being analyzed. This method reintroduces of total U.S. exports plus imports. By contrast, the complexity that was to have been eliminated multilateral weights are the shares of each through the use of a summary statistic. country in the combined total trade of all the In order to simplify construction procedures, foreign countries whose currencies are included in the index. Each weighting scheme has its conceptual 1. Weights of foreign currencies in indexes of the advantages and disadvantages. Bilateral weights dollar's effective exchange rate emphasize trade between two countries but do not capture the effects of trade competition in Foreign Multilateral Bilateral third markets. In an exchange-rate index for the currency weights weights dollar, for example, a bilateral weight on the German mark .208 .101 Japanese yen — .136 .207 German mark allows for a decline in U.S. French franc ............., .131 .047 demand for German cars following a deprecia- United Kingdom pound ... .119 .080 Canadian dollar .091 .401 tion of the dollar against the mark, but it does Italian lira .090 .048 Netherlands guilder .083 .046 not allow for a shift in that demand toward Belgian franc .064 .034 Swedish krona .042 .016 Japanese cars. Multilateral trade weights allow Swiss franc .036 .020 for such third-market competition, but in some Sum 1.000 1.000 cases they may overstate its importance. NOTE.—Multilateral weights are each country's share of the In calculating an effective exchange-rate total trade (measured by the sum of imports plus exports) of all 10 countries in the period 1972 through 1976; these are index for the dollar, the most important practical the weights used in the index published in the FEDERAL difference between bilateral and multilateral RESERVE BULLETIN. Bilateral weights are each country's share of total U.S. trade with these 10 countries in the same period. weights concerns the weight given the Canadian Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 dollar. In a 10-currency index Canada's bilateral 3. Alternative measures trade weight is four times as great as its multi- of average value of U.S. dollar lateral trade weight, reflecting the close trading relations of Canada and the United States (Table 1). This difference in weights is reflected in the wide disparity between movements in the multilaterally and bilaterally weighted dollar indexes shown in Chart 2. Since 1976 the bilaterally weighted dollar index has declined by less than half as much as the multilaterally weighted index, largely because of the sharp rise in the U.S. dollar relative to the Canadian dollar F.R. index is multilaterally weighted average against 10 foreign during this period. Both indexes, however, have currencies. declined over the same period by much less than the individual values of the dollar in terms of mid-1976, remaining relatively stable for a year, the mark, the yen, or the Swiss franc. and then declining again from mid-1977 to Multilateral weights appear to be marginally mid-1978. Movements in the SDR index have preferable to bilateral weights in an exchange- been less pronounced (including a much smaller rate index for the dollar for at least two reasons. decline over the past year) largely because the First, Canada's weight in the bilaterally SDR index is based on a basket of currencies weighted index seems excessively large. Most that includes the dollar itself with a weight of of the trade between Canada and the United one-third. States consists of raw materials and intra-automotive industry transactions, and the prices of these goods may be little affected by changes PRICE-ADJUSTED OR REAL in U.S.-Canadian exchange rates. Second, ac- EXCHANGE-RATE INDEXES cording to empirical tests by the Federal Reserve staff, the multilaterally weighted index does Because of the way in which changes in exmarginally better than the bilaterally weighted change rates affect the prices and volumes of index in predicting changes in the volumes and trade flows, an effective exchange-rate index is prices of U.S. imports and exports. often viewed as an indicator of movements in a country's price competitiveness in international markets. Changes in an index of nominal ALTERNATIVE EFFECTIVE exchange rates, however, are only a partial EXCHANGE-RATE INDEXES indicator of changes in price competitiveness. A number of official and private institutions Other variables, such as domestic production publish indexes of the effective exchange rate costs and output prices, also have important of the dollar. These indexes differ with respect impacts. to currency coverage and choice of weights but If a depreciation of the dollar, which would still show broadly similar patterns of fluctua- tend to reduce the foreign-currency price of tions in the average foreign exchange value of U.S. goods, were accompanied by a proporthe dollar. As an example, the index published tional increase in U.S. domestic prices relative in the BULLETIN (based on 10 currencies, with to domestic prices of foreign competitors, the the multilateral trade weights listed in Table 1) international price competitiveness of the United is plotted in Chart 3, along with the value of States would show little net change. In fact, the dollar in special drawing rights (SDR's), as over extended periods of time, changes in many calculated by the International Monetary Fund. bilateral exchange rates have been associated Both indexes show the dollar declining in value with changes in relative domestic price levels. to mid-1975, then rising from mid-1975 to The sharp declines in the British pound and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Value of the Dollar 787 Italian lira against the U.S. dollar during 1975 petitiveness. It is evident from Chart 4 that, on and 1976 shown in Chart 1, for example, re- a consumer-price-adjusted basis, U.S. price flected the relatively high domestic inflation competitiveness has improved substantially rates in those countries. These currencies have since early 1974, although it worsened from since stabilized against the dollar as inflation early 1975 to mid-1976. This long-run imrates in Britain and Italy have converged toward provement reflects a combination of the net the U.S. inflation rate. Because of this type of effective depreciation of the dollar during this association between changes in domestic prices period and the increase in the average of foreign and changes in exchange rates, it is more ap- prices relative to U.S. prices. Viewed somewhat propriate to assess movements in international differently, over the past 4 years the dollar has price competitiveness in terms of changes in depreciated by a greater amount in real terms effective exchange-rate indexes that have been than it has in nominal terms because the average adjusted for movements in relative prices. U.S. inflation rate over this period has been lower than the average inflation rate in the major foreign industrial countries. CALCULATION OF PRICE-ADJUSTED The price-adjusted exchange-rate index is EXCHANGE-RATE INDEXES more comprehensive than the nominal ex- An index of the price-adjusted, or real, ex- change-rate index, but it is still only a partial change value of the dollar is calculated by and inexact measure of international competidividing the dollar's nominal effective ex- tiveness and should be interpreted with caution. change-rate index by an index of the ratio of Any such aggregate measure is subject to probaverage foreign prices to U.S. prices. This pro- lems due to incorrect measurement of prices, cedure is illustrated in Chart 4. The weights incorrect weighting systems, and an inability to used in computing average foreign prices are measure sectoral shifts in productivity. In addithe same as those used in constructing the ef- tion, real exchange-rate indexes are rough fective exchange-rate index. measures of price competitiveness only and do not measure important nonprice factors such as quality, dependability, and servicing, which 4. Construction of real exchange-rate index have an important influence on trade patterns using consumer prices but may change relatively slowly. March 1973=100 ALTERNATIVE PRICE-ADJUSTED EXCHANGE-RATE INDEXES In view of the deficiencies of individual aggregate measures of international price competitiveness, more than one real exchange-rate index should be considered. This section lists several alternative price and cost indexes used in computing real exchange-rate indexes. Each "Relative CP" is foreign divided by U.S. consumer prices. has its advantages and disadvantages. "CPI-adjusted dollar" is "Weighted-average dollar" divided First, consumer price indexes, which cover by "Relative CP." a broad range of domestic finished goods and services, provide a good indication of over-all INTERPRETATION OF PRICE-ADJUSTED domestic inflation. Moreover, the statistical EXCHANGE-RATE INDEXES bases and coverage of these indexes are rela- A decline in the price-adjusted exchange-rate tively consistent across countries. Consumer index for the dollar can be interpreted as an price indexes, however, are imperfect indicators improvement in U.S. international price com- of changes in the prices of tradable goods be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 cause they reflect changes in the prices of such 5. Real U.S. dollar exchange-rate indexes, nontraded items as housing and services. adjusted by selected measures Wholesale price indexes focus more narrowly March 1973=100 on the goods sector, but their coverage varies substantially across countries. In many countries these indexes assign heavy weights to basic commodities whose prices may not be closely linked to underlying domestic costs and manufacturing output prices. Export price indexes provide the most direct measure of the relative prices of goods that are actually traded. This fact alone would suggest their use for trade-related questions. However, these indexes have the undesirable property of Price-adjusted indexes, constructed as in Chart 4, using export price indexes (XPI); consumer price indexes (CPI); wholesale excluding prices of potentially tradable goods, price indexes (WPI); unit labor cost indexes (ULC). such as domestic import substitutes, which do not appear in current exports. Moreover, to the provide a useful qualitative indication of shifts extent that export prices are set in the short run in U.S. price competitiveness. Indexes based on to meet competition in foreign markets, meas- the four alternative price series discussed above ures of competitiveness based on them do not have exhibited roughly similar patterns of reflect the potential for adjustment over the change over the past 4 years. U.S. price comlonger term. Exporting firms can maintain their petitiveness in general improved from early price competitiveness in the short run by fixing 1974 to early 1975, worsened from early 1975 their foreign-market prices and absorbing ex- to early 1976, and then improved substantially change-rate changes in the form of changes in on all four bases (Chart 5). From mid-1976 their domestic currency prices and profit mar- through early 1978 the increase in U.S. price gins. These domestic price and profit-margin competitiveness improved between 8 and 12 per changes, however, may not be sustainable in cent as measured by the decline in the dollar's the longer run. real exchange rate when using these four in- Finally, unit labor cost indexes provide a dexes. broad indication of a major component of underlying domestic costs of production and avoid RELATIONSHIP BETWEEN REAL AND the problem of short-run fluctuations in profit NOMINAL EXCHANGE-RATE INDEXES margins associated with changes in exchange rates. Moreover, they are available on a fairly In addition to serving as indicators of changes consistent basis across countries. On the other in price competitiveness, price-adjusted exhand, these indexes have several important change-rate indexes are sometimes used to drawbacks as measures of competitiveness. measure the over- or undervaluation of a cur- First, they do not measure costs due to capital rency and its expected future movements. This or material inputs. Second, they ignore longer- interpretation of real exchange rates is based on run shifts in the relationship between costs and a "purchasing power parity" view of exprices. Third, they do not reflect differences in change-rate determination, which holds that exlabor costs between firms that produce exports change rates adjust over time exactly to offset and import substitutes and other sectors of the movements in relative prices. One implication economy. Fourth, they are published less often of this view is that if a currency's real effective and with a longer lag than most price indexes. exchange rate is below some base-period or No one of these price or cost indexes appears trend level, the currency is undervalued and will to have a clear superiority as a basis for meas- appreciate. Judgments of this type should be uring the real exchange value of the dollar. made with great caution for several reasons. Considered in combination, however, they can First, whereas historical experience suggests Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Value of the Dollar 789 a tendency for exchange rates to move in a quality of goods, among other factors, can cause direction that offsets changes in relative prices shifts in the "equilibrium'' level of real exover the long run, there is little evidence for change rates over time. Such shifts greatly such a tendency in the short run. If exchange- complicate interpretations of a deviation of real rate changes exactly offset price changes at each exchange rates from base-period levels as an moment, price-adjusted exchange rates would over- or undervaluation. Finally, there are a be constant over time. In reality, the short-term number of alternative plausible measures of real variability of real exchange rates is nearly as exchange rates, and these different measures great as that of nominal exchange rates. Second, may, at times, lead to differing and even consecular trends in productivity and changes in the flicting conclusions. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

791 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON AUGUST 15, 1978 Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services was growing moderately in the current quarter, although the rate of expansion appeared to be a little below the average pace in the first two quarters of the year. The rise in prices—as measured by the fixed-weighted price index for gross domestic business product—seemed to have slowed appreciably from the second-quarter rate but was still well above the rise in other recent quarters. Staff projections for the year ending in the second quarter of 1979 were little changed from a month earlier. They continued to suggest that output would grow at a moderate pace, with the unemployment rate projected to decline slightly from its July level. The rate of inflation was expected to remain rapid but to moderate considerably from its pace in the second quarter of 1978. In July the index of industrial production increased an estimated 0.5 per cent, equal to the gains now indicated for May and June but well below the rapid advances in March and April. Total nonfarm payroll employment rose in July at close to the May-June pace, after exceptional gains in March and April. In manufacturing, employment rose slightly in July while the average workweek was unchanged. The over-all unemployment rate jumped 0.5 of a percentage point, following a decline of 0.4 of a percentage point in June; the July level of 6.2 per cent was about the same as the average in the first 5 months of the year. In June, private housing starts exceeded an annual rate of 2 million units for the fourth consecutive month. Starts averaged 2.1 million units in the second quarter, about the same as in the second half of 1977 and well above the rate for the first quarter of 1978. Total retail sales changed little in July for the third consecutive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 Federal Reserve Bulletin • October 1978 month following exceptional gains earlier in the year. Unit sales of new automobiles fell somewhat in July from the very rapid pace in the second quarter, while dollar sales of other durable goods rose considerably further. The index of average hourly earnings for private nonfarm production workers increased at an annual rate of nearly 10 per cent in July; over the first 7 months of the year the index had risen at an annual rate of close to 9 per cent, considerably above its advance in 1977. The rise in average prices of producer goods moderated somewhat in July as prices of consumer goods declined after moving up rapidly in most earlier months of the year. In June the consumer price index for all urban consumers continued to rise at a rapid pace; over the first half of the year the index advanced at an annual rate of more than 10 per cent. In foreign exchange markets the trade-weighted value of the dollar had declined nearly 6 per cent further since mid-July to a level about 10 per cent below the 1978 peak in May. The downward pressure on the dollar appeared to reflect widespread concern about the outlook for inflation in the United States and the persistence of large imbalances in the international payments positions of the United States and some of its major trading partners. The U.S. trade deficit, however, had declined in the second quarter from an extraordinarily high rate in the first quarter. Following a substantial slowdown in June, the expansion in total credit at U.S. commercial banks accelerated in July to a pace close to the unusually rapid growth experienced in April and May. Expansion in bank loans was very strong in July and included growth in all major loan categories. Banks also made sizable additions to their holdings of U.S. Treasury and other securities. While growth in business loans was above the reduced pace in June, it remained well below the average rate in the first half of the year. Outstanding commercial paper of nonfinancial businesses continued to expand rapidly in July. Growth of the narrowly defined money supply (M-l) remained moderate in July. Growth in M-2 and M-3 also continued moderate, as substantial inflows of funds into large-denomination time deposits at banks and into the new money market certificates at nonbank thrift institutions were partly offset by weakness in savings and small-denomination time deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 793 At its meeting on July 18 the Committee had decided that the ranges of tolerance for the annual rates of growth in M-1 and M-2 during the July-August period should be 4 to 8 per cent and 6 to 10 per cent, respectively. The Committee had agreed that during the coming inter-meeting period operations should be directed toward maintaining the weekly-average Federal funds rate within a range of 13A to 8 per cent. It was also agreed that if, with approximately equal weight given to M-l and M-2, growth rates of the aggregates appeared to be close to or beyond the limits of the indicated ranges, the objective for the funds rate was to be raised or lowered in an orderly fashion within its specified range. Following the July 18 meeting the Manager of the System Open Market Account sought bank reserve conditions consistent with a weekly-average Federal funds rate somewhat above 73A per cent. Data that became available throughout the inter-meeting interval suggested that growth in the monetary aggregates over the July- August period would be well within the Committee's ranges and the Manager continued to seek conditions consistent with a Federal funds rate within a range of 13A to 8 per cent. The average rate during the inter-meeting period was about IVs per cent. Market interest rates on most short- and long-term securities had declined 10 to 30 basis points since mid-July. The fall in rates apparently reflected a shift in expectations that was influenced by the recent pattern of moderate growth in the monetary aggregates, a smaller rise in the Federal funds rate than many had anticipated, and signs of some slowing in economic expansion. Declines in Treasury bill rates were also encouraged by sizable investments by foreign central banks of dollars obtained in currency support operations. Conditions in mortgage markets, which had tightened significantly during the first half of the year, had stabilized in recent weeks. Interest rates on new commitments for conventional mortgage loans at savings and loan associations had changed little during the inter-meeting period, while yields in the secondary market for home mortgages had declined in line with reductions in most other market rates. In the Committee's discussion of the economic situation, there was general agreement that the outlook for economic activity had changed little since the July meeting, and that in the year ending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 with the second quarter of 1979 output of goods and services was most likely to grow at about the moderate pace projected by the staff. This judgment was qualified by the recognition that the weakness of the dollar in foreign exchange markets might have unfavorable repercussions on the domestic economy. Committee members who differed with the staff economic projection all expected average growth to be a little less than the staff figure. A few members, while anticipating somewhat greater growth than the staff was projecting for the last half of 1978, continued to believe that growth in 1979 would slow more abruptly. Several members noted that although economic growth had moderated recently, the pattern of expansion appeared to be well balanced. In their judgment none of the key economic sectors was exhibiting either serious sluggishness or unsustainably rapid growth; there was little evidence of developing capacity constraints and inventory surpluses were not a problem. One negative element in this pattern, which seriously concerned all members of the Committee, was the unexpectedly high recent rate of inflation in prices and wages and the related possibility that an appreciable slowing of inflation would prove more difficult to achieve than previously had been anticipated. It was observed in this connection that the declining value of the dollar in foreign exchange markets was contributing significantly to inflation in the United States. Nearly all the Committee members expected price increases for the year ahead to be more rapid than the staff was projecting. One member suggested that although the economy appeared to be fairly well balanced by the usual standards, there were potential problem areas: He identified the heavy reliance of consumers on credit to finance their spending; growing, if still limited, capacity constraints and materials shortages; and, of particular concern to him, the likely inflationary effects of impending wage settlements. Because of these generally strong inflationary pressures, he thought the risks of an early end to the expansion had become greater. Other members of the Committee suggested that an important change in the outlook since the July meeting was an apparent stiffening in the resolve of labor leaders to hold out in forthcoming contract negotiations for sizable wage settlements. One member also cited apparent efforts by some businessmen to accelerate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 795 increases in wages and prices because of their concern that controls might be imposed. Committee members differed little in their estimates of the likely unemployment rate in the second quarter of 1979. Those estimates were all relatively close to the average rate thus far in 1978. It was suggested that productivity would show little increase over the projection period. At its meeting in July the Committee had agreed that from the second quarter of 1978 to the second quarter of 1979 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M-l, 4 to 6V2 per cent; M-2, 6V2 to 9 per cent; and M-3, IV2 to 10 per cent. The associated range for the rate of growth in commercial bank credit was 8V2 to IIV2 per cent. It had also been 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, most members expressed a preference for some slight firming of money market conditions. Several members emphasized the need to restrain the expansion of the monetary aggregates, especially in light of current and prospective inflationary pressures. It was suggested that an indication at this time of the System's continued determination to resist inflation would have a favorable impact on confidence, both in the domestic economy and in foreign exchange markets. With regard to the latter, the members were seriously concerned about the weakness of the dollar. They recognized that interrelated governmental actions would be needed to make progress in this area. No sentiment was expressed at this meeting for an easing of money market conditions. On the other hand, it was suggested that a sharp move toward restraint under present circumstances might incur an undue risk of precipitating a recession. Two members preferred to retain current money market conditions for the time being. There were only small differences among most Committee members in their preferences for operating specifications for the period immediately ahead. They were nearly unanimous in favoring a return to basing decisions for open market operations between Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 meetings primarily on the behavior of the monetary aggregates. In its previous directive the Committee had called for giving greater weight than usual to money market conditions. For the annual rate of growth in M-1 over the August-September period, most members favored ranges of 4 to 8 per cent or 5 to 9 per cent, but two members also found acceptable a range of 3 to 8 per cent and one preferred a lower range* of 3 to 7 per cent. For M-2 most members advocated ranges of 6 to 10 per cent or 6V2 to 10V2 per cent and one proposed a range of 6 to 11 per cent. One member preferred narrower ranges for both M-l and M-2 that would be relatively close to the 12-month ranges adopted by the Committee; for M-l he suggested a range of 5l/i to IV2 per cent and for M-2 a range of 6V2 to %lh or 9 per cent. Other members, while preferring wider 2-month ranges, also felt that those ranges should more or less encompass the 12-month ranges in order to facilitate achievement of the Committee's objectives. Most of the members favored directing open market operations toward a Federal funds rate of about 8 per cent shortly after today's meeting, but two members urged some delay in order to assess further information on the monetary aggregates and developments in foreign exchange markets. One member preferred to continue aiming initially for a Federal funds rate of around 7% per cent in light of uncertainties about the economic outlook and the related performance of the monetary aggregates. With respect to the inter-meeting range for the Federal funds rate, all but two members favored 7% to 8lA per cent; one preferred 8 to 8V4 per cent and another 73A to 8V2 per cent. The latter member felt that more leeway should be provided for raising the rate in the event that the monetary aggregates appeared to be growing rapidly in relation to the Committee's preferences for the August- September period. However, a majority of the members indicated that they did not want to see the Federal funds rate exceed 8 V* per cent without further assessment of new developments and the opportunity for consultation among the members. At the conclusion of the discussion the Committee decided that ranges of tolerance for the annual rates of growth in M-l and M-2 over the August-September period should be 4 to 8 per cent and 6 to 10 per cent, respectively. With regard to the Federal funds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 797 rate, the Manager was instructed to seek a rate of around 8 per cent early in the period following today's meeting. Subsequently, if the 2-month growth rates of M-l and M-2 appeared to be significantly above or below the midpoints of the indicated ranges, the objective for the funds rate was to be raised or lowered in an orderly fashion within a range of 13A to 8V4 per cent. 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. The Committee decided to include in its directive a reference to developments in foreign exchange markets as well as the usual reference to conditions in domestic financial markets. The purpose of the added instruction was to provide the Manager with some flexibility to adjust the nature and timing of his operations in light of possible pressures on the dollar in foreign exchange markets. As is customary, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee's various objectives. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services is growing moderately in the current quarter, although the pace is a little less than the average for the first two quarters of the year. In July retail sales remained at about the advanced level reached in April. Industrial production and nonfarm payroll employment continued to expand at lower rates than in the early spring months. The unemployment rate, which had dropped 0.4 of a percentage point in June, jumped 0.5 of a percentage point in July to 6.2 per cent, about the average rate in the first 5 months of the year. Average prices of goods and services have continued to rise rapidly, although producer prices of foods and foodstuffs declined in July. The advance in the index of average hourly earnings has been somewhat faster so far in 1978 than it had been on the average during 1977. Since mid-July the trade-weighted value of the dollar against major foreign currencies has declined sharply further. The U.S. trade deficit was lower in the second quarter than the very high rate of the first quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 Growth in M-l remained moderate in July. Inflows of the interest-bearing deposits included in M-2 and M-3 picked up, owing to substantial flows into large-denomination time deposits at banks and into the new money market certificates at nonbank thrift institutions. Nevertheless, expansion in the broader aggregates also remained moderate in July. Most market interest rates have declined appreciably on balance in recent weeks. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster monetary and financial conditions that will resist inflationary pressures while encouraging continued moderate economic expansion and contributing to a sustainable pattern of international transactions. At its meeting on July 18, 1978, the Committee agreed that these objectives would be furthered by growth of M-l, M-2, and M-3 from the second quarter of 1978 to the second quarter of 1979 at rates within ranges of 4 to 6V2 per cent, 6V2 to 9 per cent, and IV2 to 10 per cent, respectively. The associated range for bank credit is W2 to IIV2 per cent. These ranges are subject to reconsideration at any time as conditions warrant. In the short run, the Committee seeks to achieve bank reserve and money market conditions that are broadly consistent with the longer-run ranges for monetary aggregates cited above, while giving due regard to developing conditions in domestic and international financial markets more generally. Early in the period until the next regular meeting, System open market operations shall be directed at attaining a weekly-average Federal funds rate slightly above the current level. Subsequently, operations shall be directed at maintaining the weekly-average Federal funds rate within the range of 73A to 8XA per cent. In deciding on the specific objective for the Federal funds rate the Manager shall be guided mainly by the relationship between the latest estimates of annual rates of growth in the August-September period of M-l and M-2 and the following ranges of tolerance: 4 to 8 per cent for M-l and 6 to 10 per cent for M-2. If, giving approximately equal weight to M-l and M-2, their rates of growth appear to be significantly above or below the midpoints of the indicated ranges, the objective for the funds rate shall be raised or lowered in an orderly fashion within its range. If the rates of growth in the aggregates appear to be above the upper limit or below the lower limit of the indicated ranges at a time when the objective for the funds rate has already been moved to the corresponding limit of its range, the Manager is promptly to notify the Chairman who will then decide whether the situation calls for supplementary instructions from the Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 799 Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Gardner, Jackson, Wallich, and Winn. Votes against this action: Messrs. Partee and Willes. Mr. Partee dissented from this action because he favored a 2-month range of tolerance for growth in M-l that was somewhat higher than the range advocated by the majority. He did not believe that a further move toward firmer money market conditions was warranted unless monetary expansion proved to be distinctly on the high side, especially in view of the marked slowing in real economic growth that now appeared to be in progress. Mr. Willes dissented because he favored a more vigorous effort to curb the expansion of the monetary aggregates in light of current and expected inflationary pressures in the domestic economy and the weakness of the dollar in foreign exchange markets. He preferred to specify a 2-month range of tolerance for M-l below the range agreed upon by the majority. Subsequent to the meeting, on September 8, the Committee held a telephone conference meeting pursuant to its decision on August 15 to consult further if the rates of growth in the monetary aggregates appeared to be above or below the limits of the Committee's ranges of tolerance for the August-September period and the Federal funds rate had already moved to the corresponding limit of its range. The latest staff projections suggested that M-l and M-2 would grow at annual rates of 9.0 and 11.3 per cent, respectively, over the August-September period; the ranges of tolerance established at the August 15 meeting were 4 to 8 per cent for M-l and 6 to 10 per cent for M-2. The Manager had been aiming for a funds rate of about 8XA per cent, the top of the range that the Committee had specified at its August meeting, and the average rate in each of the two latest statement weeks was at about that level. Against this background, the Committee decided to raise the upper limit of the range for the Federal funds rate to 8V2 per cent and to instruct the Manager to aim promptly for a weekly-average Federal funds rate of about 83/s per cent. It was understood that the funds rate might be raised to the upper limit of the range if new data suggested that the aggregates were strengthening further, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 or be reduced slightly if such data suggested significant weakening from current projections. On September 8, 1978, the Committee modified the domestic policy directive adopted at its meeting of August 15, 1978, by increasing the upper limit of the 7% to 8V^ per cent range specified for the Federal funds rate to 8V2 per cent and by calling for operations directed at raising the weekly-average Federal funds rate promptly to 8% per cent. Votes for this action: Messrs. Miller, Volcker, Coldwell, Eastburn, Gardner, Jackson, Partee, Willes, Winn, and Kimbrel. Votes against this action: None. Absent and not voting: Messrs. Baughman and Wallich. (Mr. Kimbrel voted as alternate for Mr. Baughman.) 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

801 Law Department Statutes, regulations, interpretations, and decisions CREDIT BY BROKERS AND DEALERS is an insurance company which meets all of the conditions specified in section 12 (g)(2)(G) of the The Board of Governors of the Federal Reserve Act. System has amended its provision of Regulation (3) At the time of the extension of credit, the T concerning credit by brokers and dealers on creditor has a reasonable basis for believing that non-convertible debt securities to permit brokers the issuer is not in default on interest or principal and dealers, for the first time, to extend and payments: maintain credit on non-convertible debt securities not listed on national securities exchanges which SECTION 220.4—SPECIAL ACCOUNTS satisfy certain criteria as to size of issue, availability of information and status of payments for principal and interest. (i) Special bond account. Effective October 30, 1978, Sections 220.2, In a special bond account a creditor may extend 220.4, and 220.8 are amended to read as follows: and maintain credit on any exempted security, registered non-equity security or OTC margin SECTION 220.2—DEFINITIONS bond. The maximum loan value of securities held in this account shall be as prescribed from time to time in § 220.8 (the Supplement to Regulation (f) The term "margin security" means any T). Call options may be issued, endorsed or registered security, OTC margin stock or OTC guaranteed in this account on any underlying eqmargin bond. uity security which is held in this account because it is an exempted security. * * * * (i) The term "OTC margin bond" means a debt security not traded on a national securities SECTION 220.8—SUPPLEMENT exchange which meets all of the following requirements: (1) At the time of the extension of credit, a (b) Maximum loan value for special bond principal amount of not less than $25,000,000 of account. the issue is outstanding. The maximum loan value of an exempted secu- (2) The issue was registered under section 5 of rity, a registered non-equity security or an OTC the Securities Act of 1933 and the issuer either margin bond held in a special bond account subject files periodic reports pursuant to section 13(a) or to § 220.4(i) shall be as determined by the creditor 15(d) of the Securities Exchange Act of 1934 or in good faith. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 market.2 Inasmuch as Applicants control no other OF BANK HOLDING COMPANY ACT banks, consummation of the proposed transaction would not have any adverse effects upon existing Bellevue Holding Corporation, or potential competition and would not increase Geneva, Switzerland the concentration of banking resources in any Colonial General, Inc., relevant area. Thus, competitive considerations are New York, New York consistent with approval of the applications. The financial and managerial resources and fu- Order Approving ture prospects of Applicants appear to be consist- Formation of Bank Holding Companies ent with approval of their applications. Consummation of the proposal will result in an immediate Bellevue Holding Corporation ("Bellevue"), injection of capital into Bank, and Applicants Geneva, Switzerland, and its wholly owned subintend to devote significant attention to the provisidiary, Colonial General, Inc. ("Colonial"), New sion of additional capital and managerial expertise York, New York, have applied for the Board's in the immediate future. These actions are exapproval under section 3(a)(1) of the Bank Holding pected to strengthen the financial and managerial Company Act (12 U.S.C. § 1842(a)(1)) to become resources and future prospects of Bank and First bank holding companies through the direct acqui- Coolidge. Accordingly, banking factors lend sition by Colonial of 62 per cent of the voting weight toward approval of the applications. shares of First Coolidge Corporation ("First Coo- Consummation of the transaction is expected to lidge"), Watertown, Massachusetts, a bank holdenable Bank to provide more effectively the serving company that controls Coolidge Bank and ices it currently offers. In addition, Applicants Trust Company ("Bank"), Watertown, Massaintend to expand and improve those services and chusetts. to establish new areas of service. Therefore, it is Notice of the applications, affording opportunity the Board's judgment that considerations relating for interested persons to submit comments and to the convenience and needs of the community views, has been given in accordance with section to be served lend some weight toward approval 3(b) of the Act. The time for filing comments and of the applications. The Board concludes that views has expired and the Board has considered consummation of the proposal to form bank holdthe applications and all comments received in light ing companies would be in the public interest and of the factors set forth in section 3(c) of the Act that the applications should be approved. (12 U.S.C. § 1842(c)). On the basis of the record, the applications are Applicants are non-operating corporations orapproved for the reasons summarized above. The ganized for the purpose of becoming bank holding transaction shall not be consummated before the companies by acquiring 62 per cent of First Coothirtieth day following the effective date of this lidge, thereby acquiring indirect control of Bank. Order, or later than three months after the effective Bellevue, a corporation organized under the laws date of this Order, unless such period is extended of the Republic of Panama and headquartered in for good cause by the Board of Governors or by Geneva, Switzerland, owns all outstanding shares the Federal Reserve Bank of Boston, pursuant to of Colonial, which is chartered under the laws of delegated authority. Delaware and which has its principal place of By order of the Board of Governors, effective business in New York, New York. Upon acquisi- September 8, 1978. tion of First Coolidge, Applicants would control the 13th largest commercial bank in Massachusetts Voting for this action: Chairman Miller and Goverwith 0.9 per cent of total commercial bank deposits nors Wallich, Coldwell, Jackson, and Partee. Absent in the State.1 and not voting: Governor Gardner. Bank holds deposits of $133.5 million, repre- (Signed) GRIFFITH L. GARWOOD, senting approximately one per cent of total depos- [SEAL] Deputy Secretary of the Board. its in commercial banks in the Boston banking 2 The Boston banking market is approximated by the Boston SMSA, which includes all of the Suffolk County and portions 1 All banking data are as of December 31, 1977. of Essex, Middlesex, Norfolk, and Plymouth Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 803 Commerce Bancshares, Inc., satisfactory. Bank has no financial or operating Kansas City, Missouri history; however, its future prospects as a subsidiary of Applicant appear favorable and consid- Order Approving Acquisition of Bank erations relating to banking factors are therefore regarded as consistent with approval of the appli- Commerce Bancshares, Inc., Kansas City, cation. As a new institution in Clay County and Missouri, a bank holding company within the the Kansas City market, Bank would serve as an meaning of the Bank Holding Company Act, has additional source of a full range of banking servapplied for the Board's approval under § 3(a)(3) ices in the market. Accordingly, considerations of the Act (12 U.S.C. § 1842(a)(3)) to acquire relating to the convenience and needs of the comall of the voting shares of Commerce Bank of Clay munity to be served appear consistent with ap- County, N.A., Kansas City, Missouri, a proposed proval of the application. de novo bank. In its review of the subject application, the Notice of the application, affording opportunity Board has given careful consideration to the comfor interested persons to submit comments and ments submitted on behalf of Protestant, a bank views, has been given in accordance with § 3(b) located near the proposed site of Bank. Protestant of the Act. The time for filing comments and views contends, among other things, that the banking has expired, and the Board has considered the needs of the community are being adequately met application and all comments received, including at the present time and there is no need for a new those submitted on behalf of Metro North State bank. In this regard, Protestant questions the va- Bank, Kansas City, Missouri ("Protestant"), in lidity of a study prepared for Applicant to establish light of the factors set forth in § 3(c) of the Act the feasibility of Bank and claims that the infor- (12 U.S.C. § 1842(c)). mation contained in the feasibility study either has Applicant, the third largest banking organization changed or is different from that presented in in Missouri, controls 32 banks with aggregate connection with the subject application. Protestant deposits of approximately $1.6 billion, reprefurther contends that Bank would act as a de facto senting 7.7 per cent of the total deposits in commercial banks in the State.1 Since Bank is a branch of Applicant's subsidiary banks in violation of Missouri law and that consummation of the proposed new bank, its acquisition by Applicant proposed acquisition would have anti-competitive would not in the near future increase the conceneffects.3 tration of banking resources in Missouri. Protestant gave evidence at a public hearing Bank is to be located in the Kansas City banking market,2 in which Applicant is the largest banking before the Regional Administrator of the Comptroller of the Currency, Kansas City, Missouri, on organization, with six subsidiary banks controlling February 23, 1977, related to the chartering of 12.1 per cent of total market deposits. Applicant's Bank. Many of the objections made by Protestant market share would not change initially as a result to the chartering of Bank are essentially the same of approval of this application. Since Bank would as it has made in protesting the instant application. be a de novo bank, there will be no elimination The Comptroller of the Currency, however, found of existing competition. Moreover, given the de novo nature of Bank, the size of the market, the number of banking organizations operating 3 Protestant also requested a hearing on the instant applicatherein, and the prospects for continuing growth tion. Under section 3(b) of the Act, the Board is required to hold a hearing when the primary supervisor of the Bank to in the area, it does not appear that consummation be acquired recommends disapproval of the application (12 of the proposal would have any adverse effects U.S.C. § 1842(b)). In this case, after a hearing on the charter on potential competition. On the basis of the above application, the Comptroller of the Currency issued preliminary charter approval to Bank on August 31, 1977, and he has not and other facts of record, competitive considsubsequently recommended that the subject application be erations appear consistent with approval of the denied. Thus, there is no statutory requirement that the Board application. hold a hearing. Further, the Board has examined the record of the hearing held in connection with the chartering of Bank, The financial and managerial resources of Apthe written submissions by Protestant and Applicant's replicant, its subsidiaries, and Bank are regarded as sponses, and is unable to conclude that a hearing would significantly supplement the record before the Board or resolve issues not already discussed at length in the written submissions 1 All banking data are as of December 31, 1977. of Protestant and Applicant and in the record of the hearing 2 The Kansas City banking market is approximated by the before the Office of the Comptroller of the Currency. In view northern half of Cass County, all of Clay, Jackson, and Platte of these facts, the Board concludes that the record in this case Counties in Missouri and Johnson and Wyandotte Counties is sufficiently complete to render a decision and hereby denies in Kansas. Protestant's request for a hearing. 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A2 Federal Reserve Bulletin • September 1978 that adequate demand for banking services existed additional banking facility and that, despite possito support an additional bank and approved Bank's ble errors or inconsistencies in the data utilized application for a national charter. By letter dated in Applicant's feasibility study, the ultimate con- June 30, 1978, to the Board, the Comptroller of clusion of that study appears warranted. the Currency, after reviewing all submissions Protestant also contends that Bank's proposed made by Protestant and Applicant in connection affiliation with Applicant would offend Missouri with the subject application, reaffirmed to the law prohibiting branch banking. It is clear from Board his original decision that acquisition of a long line of court cases that a State's restrictive Bank by Applicant is in the public interest and branch banking laws do not automatically bar bank will provide the community with an additional holding company operations. In a given case, the convenient source of banking services. Board must examine the facts to determine The Clay County section of the Kansas City whether a particular acquisition would constitute market in which Bank will be located has been an illegal branch under State law. (See Gravois one of the fastest-growing counties in the Kansas Bank v. Board of Governors 478 F.2d 546 City market.4 For example, from 1970 to 1974, (1973).) If the Board determines that a violation the population of Clay County increased at an of State law would occur as a result of consumannual average rate of 1.9 per cent as opposed mation of a proposal, it is required to disapprove to 0.6 per cent for the entire Kansas City market. the transaction. (Whitney National Bank v. Bank In addition, this population growth is expected to of New Orleans 323 F.2d 290 (D.C. Cir. 1963), continue at an estimated annual rate for Clay reversed on other grounds, 379 U.S. 411 (1965).) County of 2.9 per cent through 1980, as opposed The facts of record indicate: that Bank will be to 1.8 per cent for the market as a whole. Further- a separate corporation, with its own capital stock more, the average annual compound growth rate and a loan limit based upon such capital stock; for total personal income for Clay County was 9.7 that Bank will be managed by its own officers; per cent during the 1969-76 period, relative to a that Bank's board of directors will be generally 9.0 per cent for the entire market. separate and independent from the board of Ap- The average annual growth rate of total deposits plicant and of Applicant's subsidiaries; and that in commercial banks located in Clay County was Bank will maintain its own separate books of 29.7 per cent from 1970-77, as opposed to a 14.0 account, issue its own distinctive checks, and use per cent rate for all banks in the market.5 Further- its own stationery. Moreover, except as permitted more, banks located in Clay County are more by law, money deposited at Bank will not be profitable than the average firms within the market credited to the account of a depositor at any other as measured by return on assets and equity capital. banking subsidiary, nor will money deposited at For example, during 1977, the banks in Clay the other subsidiaries be credited to accounts at County averaged a return on assets and equity Bank; Bank's officers and employees will not capital of 0.89 and 11.3 per cent, respectively, directly perform any services for customers of as opposed to 0.75 and 10.5 per cent for all firms Applicant's other subsidiary banks other than those within the market.6 Thus, it appears from these services that would be provided for customers of and other facts of record that the market, including other area banks, and, conversely, officers and Clay County, would be capable of supporting an employees of Applicant's other subsidiary banks will not directly perform any services for custom- 4 Bank's prospects are even further enhanced by the location ers of Bank that would not be provided for cusof a regional shopping center containing 139 business estab- tomers of other area banks. Applicant further replishments near Bank's proposed site. resents that it will purchase Bank's shares through 5 The annual deposits growth rate of the two banks located in Bank's proposed primary service area is greater than that use of its own capital resources. of Clay County as a whole. For example, Protestant was The Board concludes, based upon the above and formed de novo in 1973 and has experienced an annual deposit growth rate of 147.7 per cent from year-end 1973 to 1977. other facts of record, that Applicant is a ''tradi- The remaining bank in the proposed PSA has experienced a tionally recognized bank holding company which, 53.0 per cent annual growth rate from June 1970 to December with its own capital, invests in or buys the stock 1977. 6 The profitability of the two banks in the proposed PSA of banks,"7 and that, upon consummation of the has been more favorable than for the average Clay County proposed acquisition, Bank would not be an illegal bank. For example, Protestant earned 1.2 and 15.6 per cent return on assets and equity capital, respectively, for 1977. The other bank located in the proposed PSA earned 1.1 and 20.0 per cent return on assets and equity capital, respectively, during 7 Whitney National Bank v. Bank of New Oorleans, 323 1977. F.2d 290, 303 (D.C. Cir. 1963). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 805 branch of any of Applicant's other banking sub- DETROITBANK Corporation sidiaries. Furthermore, it appears that any indicia Detroit, Michigan of unitary operations that may be present in Ap- Order Approving Acquisition of Bank plicant's future operations of Bank are those that are inherent in the structure of bank holding com- DETROITBANK Corporation, Detroit, Michipanies generally and permissible under Missouri gan, has applied for the Board's approval under law (Grandview Bank and Trust Company v. section 3(a)(3) of the Bank Holding Company Act Board of Governors 550 F.2d 415 (1977)). (12 U.S.C. § 1842(a)(3)), to acquire 100 per cent Finally, Protestant contends that consummation of the voting shares (less directors' qualifying of the proposal will result in adverse competitive shares) of The Detroit Bank-Novi, National Assoeffects and cause undue injury to it. Protestant ciation, Novi, Michigan, a proposed new bank characterizes Applicant as "dominant" within the ("Bank"). relevant banking market and argues that Appli- Notice of the application, affording opportunity cant's acquisition of the de novo Bank would not for interested persons to submit comments and be pro-competitive. Applicant controls 12.1 per views, has been given in accordance with section cent of total market deposits and the market itself 3(b) of the Act. The time for filing comments and is not highly concentrated. Protestant has not sub- views has expired, and the application and all mitted any information substantiating its claim that comments received have been considered in light Applicant's presence in the market will be injuri- of the factors set forth in section 3(c) of the Act ous to itself or general competition in the market. (12 U.S.C. § 1842(c)). On the contrary, the growth trends and other Applicant, the third largest banking organization factors discussed above and in the record, and the in Michigan, controls eight banks with aggregate fact that Bank is a de novo bank support the deposits of approximately $3.3 billion, repreconclusion that competitive considerations are senting 9.3 per cent of the total deposits in comconsistent with approval. mercial banks in the State.1 Since Bank is a In view of the foregoing discussion and having proposed new bank, its acquisition by Applicant considered the facts of record and all the comments would not increase the concentration of banking of Protestant in light of the statutory factors the resources in Michigan. Board must consider under § 3(c) of the Act, it Bank will be located in Novi and will be comis the Board's judgment that consummation of the peting in the Detroit banking market.2 Applicant subject proposal would be in the public interest is the second largest banking organization comand that the application to acquire Bank should peting in the relevant market, with six of its be approved. banking subsidiaries controlling 16.4 per cent of On the basis of the record, the application is market deposits. Since bank is a proposed new approved for the reasons summarized above. The bank, Applicant's acquisition of Bank would not transaction shall not be made: (a) before the thir- have any immediate effect on Applicant's share tieth calendar day following the effective date of of commercial bank deposits in the Detroit banking this Order; (b) later than three months after that market, nor would it eliminate any existing comdate, and (c) Commerce Bank of Clay County, petition. Moreover, Applicant's relative size in the N.A., Kansas City, Missouri, shall be opened for market and the number and concomitant growth business not later than six months after the effec- of other banking organizations within the relevant tive date of this Order. Each of the periods de- market would assure that consummation of this scribed in (b) and (c) may be extended for good proposal would not lead to a significant increase cause by the Board or by the Federal Reserve Bank in Applicant's market share nor create a tendency of Kansas City pursuant to delegated authority. toward monopoly by Applicant in the market. By order of the Board of Governors, effective Accordingly, considerations of competitive effects September 29, 1978. are consistent with approval. The financial and managerial considerations and prospects of Applicant and Bank are considered Voting for this action: Chairman Miller and Governors Gardner, Wallich, Coldwell, Jackson, Partee, and Teeters. 1 All deposit data are as of December 31, 1977. 2 The Detroit banking market is approximated by Macomb, Oakland, and Wayne counties, and portions of the five sur- (Signed) GRIFFITH L. GARWOOD, rounding counties of St. Clair, Lapeer, Livingston, Washter- [SEAL] Deputy Secretary of the Board. naw, and Monroe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 generally satisfactory. Accordingly, banking fac- Applicant is a bank holding company by virtue tors are consistent with approval of the application. of its ownership since 1960 of 49.3 per cent of Establishment of Bank in Novi will provide the the outstanding voting shares of Bank. Between convenience of an added banking alternative to April 1973 and May 1976, Applicant acquired by that community. Bank will offer directly or pro- purchase an additional 1,107.5 shares or 31.64 per vide access to all services normally considered to cent of Bank's outstanding voting shares. These be "full-service banking." Considerations of con- acquisitions were made without the Board's prior venience and needs lend weight toward approval approval.1 Applicant now seeks Board approval of the application. Accordingly, it is the Board's to retain these shares. judgment that the proposed acquisition would be Bank ($25.2 million in deposits) is the 156th in the public interest and that the application largest banking organization in Iowa, controlling should be approved. 0.18 per cent of the total deposits in commercial On the basis of the record, the application is banks in the State.2 Bank is the fourth largest of approved for the reasons summarized above pro- five commercial banks in Marion County, Iowa vided the transaction shall not be made (a) before (the relevant banking market), controlling 19.1 per the thirtieth calendar day following the effective cent of market deposits. In view of the fact that date of this Order or (b) later than three months Applicant already controlled Bank before acquirafter the effective date of this Order, and (c) The ing the additional shares, it does not appear that Detroit Bank-Novi, National Association, Novi, retention of Bank's shares by Applicant would Michigan, shall be opened for business not later have any adverse effect on competition, or increase than six months after the effective date of this the concentration of banking resources. Thus, Order. Each of the periods described in (b) and competitive considerations are consistent with ap- (c) may be extended for good cause by the Board proval of the application. or by the Federal Reserve bank of Chicago, pur- The financial resources and future prospects of suant to delegated authority. Applicant and Bank are satisfactory. In making By order of the Secretary of the Board, acting its analysis of the managerial resources of these pursuant to delegated authority for the Board of organizations, the Board notes that this application Governors of the Federal Reserve System, effec- represents an after-the-fact request for the Board's tive September 27, 1978. approval to retain Bank shares acquired in violation of the Act. Upon consideration of the facts (Signed) GRIFFITH L. GARWOOD, and circumstances surrounding Applicant's viola- [SEAL] Deputy Secretary of the Board. tion and other information in the record evidencing Applicant's intent and efforts to comply with the requirements of the Act, the Board has determined that the circumstances of the violation do not Duclarkee, Inc., reflect so adversely on the managerial resources Knoxville, Iowa of Applicant as to warrant denial of the application. In other respects, the managerial resources Order Approving Retention of Bank Shares of Applicant and Bank are regarded as satisfactory. Duclarkee, Inc., Knoxville, Iowa, a bank hold- Accordingly, considerations relating to banking ing company within the meaning of the Bank factors are consistent with approval. Holding Company Act, has applied for the Board's Although there are no changes contemplated in the services or facilities of Bank as a result of approval under § 3(a)(3) of the Act (12 U.S.C. the retention of the voting shares, considerations § 1842(a)(3)) to retain 31.64 per cent of the voting shares of Iowa State Savings Bank, Knoxville, Iowa ("Bank"). 1 As of April 1973, Applicant's sole shareholder owned an Notice of the application, affording opportunity additional 1.0 per cent of the voting shares of Bank. Applicant, relying upon the advice of counsel, believed that for the for interested persons to submit comments and purpose of qualifying for the exception from required Board views, has been given in accordance with § 3(b) approval pursuant to section 3(a)(B) of the Act, which permits of the Act. The time for filing comments and views a company to acquire additional bank shares without prior Board approval if the company already owns or controls a has expired, and the Board has considered the majority of the bank's shares, it could aggregate its sole application and all comments received in light of shareholder's shares with those owned directly by Applicant. When informed of the inapplicability of section 3(a)(B), Apthe factors set forth in § 3(c) of the Act (12 U.S.C. plicant promptly filed the subject application. § 1842(c)). 2 All banking data are as of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 807 relating to the convenience and needs of the com- quisition of Bank with deposits of $13.9 million, munity to be served are consistent with approval would increase Applicant's share of commercial of the application. Therefore, it is the Board's bank deposits in Ohio by a nominal amount, and judgment that the proposed transaction is consist- would not have an appreciable effect upon the ent with the public interest and that the application concentration of banking resources in Ohio. should be approved. Bank is the seventeenth largest of twenty-seven On the basis of the record, the application is banking organizations in the Columbus banking approved for the reasons summarized above. market3 with 0.4 per cent of total deposits in By order of the Board of Governors, effective commercial banks in the market. The City Na- September 18, 1978. tional Bank and Trust Company ("CNB"), Applicant's lead bank, also operates in the Columbus Voting for this action: Vice Chairman Gardner and banking market, and is the third largest banking Governors Wallich, Coldwell, and Partee. Absent and organization in the market with deposits of $627 not voting: Chairman Miller and Governor Jackson. million, representing 18 per cent of total market (Signed) GRIFFITH L. GARWOOD, deposits.4 CNB has 28 branches located in the [SEAL] Deputy Secretary of the Board. Franklin County portion of the Columbus banking market, while Bank has its only office in Madison County. Furthermore, the Board notes that current First Banc Group of Ohio, Inc., Ohio law prohibits Applicant from branching into Columbus, Ohio Madison County.5 While consummation of the proposal would appear to eliminate some existing Order Approving Acquisition of Bank competition between Bank and Applicant, in view of the facts of record in this application, the Board First Banc Group of Ohio, Inc., Columbus, does not regard an increase of 0.4 per cent as so Ohio, a bank holding company within the meaning significant as to require a denial of the application. of the Bank Holding Company Act, has applied Moreover, while the Columbus banking market is for the Board's approval under § 3(a)(3) of the somewhat concentrated with the three largest Act (12 U.S.C. § 1842(a)(3)) to acquire all of the banking organizations holding 80.9 per cent of the voting shares (less directors' qualifying shares) of total deposits in the market, Applicant is the the successor by merger to The Sterling State Bank, Mount Sterling, Ohio ("Bank").1 The bank smallest of such organizations, and in view of the facts presented in the record of this application, into which Bank is to be merged has no signifithe Board concludes that the proposed acquisition cance except as a means to facilitate the acquisition of Bank by Applicant would have only slightly of the voting shares of Bank. Accordingly, the adverse effects on competition. proposed acquisition of shares of the successor organization is treated herein as the proposed ac- The financial and managerial resources of Apquisition of the shares of Bank. plicant, its subsidiaries and Bank are regarded as Notice of the application, affording opportunity satisfactory, and their future prospects appear fafor interested persons to submit comments and vorable. Thus, considerations relating to banking views, has been given in accordance with § 3(b) factors are consistent with approval of the appliof the Act. The time for filing comments and views cation. Upon consummation of the proposed achas expired, and the Board has considered the quisition, Applicant will take steps to cause Bank application and all comments received in light of to improve its services in order to better meet the the factors set forth in § 3(c) of the Act (12 U.S.C. banking needs of its customers. More specifically, § 1842(c)). Applicant will assist Bank in revising its lending Applicant, the sixth largest banking organization in Ohio, controls seventeen banking sub- 3 The Columbus banking market is approximated by all of Franklin, Fairfield, and Licking Counties, all of Pickaway sidiaries with aggregate deposits of approximately County except Perry and Salt Creek Townships, the southern $1.5 billion, representing 4.5 per cent of total two-thirds of Madison County, all of Delaware County except deposits in commercial banks in the State.2 Ac- the northernmost townships, and Thorn Township in northwestern Perry County. 4 Applicant has another banking subsidiary located in Columbus, but its activities are limited to providing fiduciary 1 By separate action of this date, the Board denied Appli- services. cant's proposal to acquire The Fairfield National Bank of 5 Ohio law has been amended, effective January 1, 1979, Lancaster, Lancaster, Ohio. to permit a bank to branch into any county that is contiguous 2 All banking data are as of June 30, 1977. to the county in which it is headquartered. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 policies, in particular providing for extended Act (12 U.S.C. § 1842(a)(3)) to acquire all of maximum maturities on mortgage loans, and for the voting shares (less directors' qualifying shares) more competitive interest rates on instalment and of the successor by merger to The Fairfield Nacommercial loans. Applicant also intends to cause tional Bank of Lancaster, Lancaster, Ohio Bank to reduce the minimum deposit required for ("Bank"). The bank into which Bank is to be certificates of deposit of less than four years matu- merged has no significance except as a means to rity, and to increase the yield of all certificates facilitate the acquisition of the voting shares of of deposit offered by computing the interest on Bank. Accordingly, the proposed acquisition of such certificates on a daily compounded basis. shares of the successor organization is treated Following the acquisition of Bank, Applicant will herein as the proposed acquisition of the shares improve Bank's premises by installing drive-in of Bank. window facilities and equipping Bank with auto- Notice of the application, affording opportunity mated banking equipment. Finally, Bank's affilia- for interested persons to submit comments and tion with Applicant will provide Bank's customers views, has been given in accordance with § 3(b) with more convenient access to certain specialized of the Act. The time for filing comments and views services, such as equipment leasing and trust has expired, and the Board has considered the services offered by Applicant's subsidiaries. application and all comments received in light of Therefore, considerations relating to convenience the factors set forth in § 3(c) of the Act (12 U.S.C. and needs of the community to be served lend § 1842(c)). weight toward approval of the application and, in Applicant, the sixth largest commercial banking the Board's view, outweigh any slightly adverse organization in Ohio, controls 17 banks1 with effects on competition that might result from con- aggregate deposits of $1.5 billion, representing summation of this proposal. Accordingly, it is the approximately 4.5 per cent of the total deposits Board's judgment that the proposed acquisition held by commercial banks in that State.2 Acquisiwould be in the public interest and that the appli- tion of Bank ($44.9 million in deposits) would cation should be approved. increase Applicant's share of Statewide deposits On the basis of the record, the application is by approximately 0.1 per cent and would not alter approved for the reasons summarized above. The Applicant's ranking among the other banking ortransactions shall not be made (a) before the thir- ganizations in the State. Accordingly, consummatieth calendar day following the effective date of tion of this proposal would not result in a signifithis Order or (b) later than three months after the cant increase in the concentration of commercial effective date of this Order, unless such period banking resources in Ohio. is extended for good cause by the Board, or by Bank, the eighth largest of 27 banking organithe Federal Reserve Bank of Cleveland pursuant zations in the Columbus market (the relevant to delegated authority. banking market),3 controls approximately 1.3 per By order of the Board of Governors, effective cent of market deposits. Applicant is the third September 1, 1978. largest banking organization in the market, controlling 18.0 per cent of market deposits. Con- Voting for this action: Chairman Miller and Gover- summation of the proposed transaction would innors Wallich, Coldwell, Jackson, and Partee. Absent crease Applicant's already significant share of deand not voting: Governor Gardner. posits in the market to 19.3 per cent and increase the percentage of deposits held by the three largest (Signed) GRIFFITH L. GARWOOD, banking organizations in the market to 82.2 per [SEAL] Deputy Secretary of the Board. cent. First Banc Group of Ohio, Inc., 1 By a separate action of this date, the Board has approved Columbus, Ohio the § 3(a)(3) application by Applicant to acquire the successor by merger to The Sterling State Bank, Mount Sterling, Ohio ("Sterling Bank"). Order Denying Acquisition of Bank 2 All banking data are as of June 30, 1977. 3 The Columbus banking market is approximated by all of First Banc Group of Ohio, Inc., Columbus, Franklin, Fairfield, and Licking Counties; all of Pickaway Ohio, a bank holding company within the meaning County except Perry and Salt Creek Townships; the southern of the Bank Holding Company Act, has applied two-thirds of Madison County; all of Delaware County except the northernmost townships; and Thorn Township in northfor the Board's approval under § 3(a)(3) of the western Perry County, Ohio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 809 In addition to the adverse effects upon the con- Voting for this action: Chairman Miller and Govercentration of banking resources in the Columbus nors Wallich, Coldwell, and Partee. Voting against this action: Governor Jackson. Absent and not voting: Govmarket, the proposal also would have substantially ernor Gardner. adverse effects upon competition within that market. As noted above, Applicant is already repre- (Signed) GRIFFITH L. GARWOOD, sented in the relevant market. The record indicates [SEAL] Deputy Secretary of the Board. that existing competition would be eliminated upon consummation of this proposal. Furthermore, Dissenting Statement of Governor Jackson the proposal would foreclose the development of competition by removing Bank, the third largest I would approve the application of First Banc (with three banking offices)4 of seven banks in the Group of Ohio to acquire The Fairfield National Fairfield County portion of the market as an entry Bank. I do not believe that the proposed acquisivehicle into the relevant market by Ohio bank tion would have "substantially adverse" effects holding companies not currently represented in the on competition in the market. Rather, I believe market. In addition, Applicant clearly is capable that the effect on competition would be only under Ohio law to expand in Fairfield County slightly anticompetitive, and that the effect on through the establishment of a branch or a subsid- competition would be outweighed by the favorable iary bank. In light of the above and other facts effects that the acquisition would have on Bank's of record, the Board concludes that consummation ability to serve the convenience and needs of its of the proposal would have significant adverse community. competitive effects within the Columbus banking The record shows that seven of the ten largest market. banking organizations in Ohio already operate in The financial and managerial resources and fu- the Columbus banking market, and two of these ture prospects of Applicant, its subsidiaries, and operate in Fairfield County. Acquisition of The Bank are regarded as satisfactory and consistent Fairfield National Bank—a bank with total deposwith approval of the application. Accordingly, its of approximately $45 million, representing only banking factors are consistent with approval of the 1.3 per cent of the market's commercial bank subject application. deposits—would, therefore, strengthen Bank and Although there is no evidence in the record that enable it to be a more effective competitor of the the banking needs of the Columbus banking mar- larger banking organizations in the market. Appliket are not adequately being met, Applicant pro- cant plans, for example, to cause Bank to adopt poses to expand the range of services presently more aggressive lending policies and improve its offered by Bank. While certain benefits to the physical facilities. Thus, in my opinion, considconvenience and needs of the communities to be erations related to the convenience and needs of served might result from Applicant's acquisition the community to be served clearly outweigh the of Bank, such benefits would also result from entry slightly adverse competitive effects that would by less anticompetitive means. Accordingly, al- result from Applicant's acquisition of Bank. though considerations relating to the convenience and needs of the communities to be served lend some weight toward approval, they do not clearly outweigh the adverse competitive considerations First Steuben Bancorp, Inc., inherent in the subject proposal. Toronto, Ohio On the basis of all relevant facts of record, it is the Board's judgment that consummation of the Order Approving Acquisition of Bank proposed acquisition would not be in the public interest, and the application should be and hereby First Steuben Bancorp, Inc., Toronto, Ohio, a is denied. bank holding company within the meaning of the By order of the Board of Governors, effective Bank Holding Company Act, has applied for the September 1, 1978. Board's approval under Section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire all of the voting shares (less directors' qualifying shares) of 4 Bank is headquartered in the city of Lancaster and has the successor by merger to The Eastern Ohio three offices in the Fairfield County portion of the Columbus Bank, Morristown, Ohio ("Bank"). The bank into banking market, two in Lancaster, and one in the Village of which Bank is to be merged has no significance Baltimore. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • October 1978 except as a means to facilitate the acquisition of market deposits associated with this proposal as the voting shares of Bank. Accordingly, the pro- being significant. Accordingly, the Board conposed acquisition of shares of the successor orga- cludes that the proposed acquisition of Bank by nization is treated herein as the proposed acquisi- Applicant would not have significant adverse eftion of the shares of Bank. fects on competition. Moreover, when viewed in Notice of the application, affording opportunity light of the other considerations reflected in the for interested persons to submit comments, has record discussed below, the Board does not view been given in accordance with Section 3(b) of the the effects on competition as being so serious as Act. The time for filing comments has expired and to require denial of this proposal. the Board has considered the application and all The financial and managerial resources and fucomments received in light of the factors set forth ture prospects of Applicant and its subsidiaries are in Section 3(c) of the Act (12 U.S.C. § 1842(c)). satisfactory, and those of Bank are also satis- Applicant, the 29th largest banking organization factory. Considerations relating to banking factors in Ohio, controls four banks with aggregate de- are consistent with approval of the application. posits of approximately $203 million, representing Affiliation with Applicant would provide Bank about 0.6 per cent of the total deposits in com- with access to Applicant's financial resources and mercial banks in the State.1 Acquisition of Bank enable Bank to offer new and improved services ($3.9 million in deposits) would increase Appli- in order to better meet the banking needs of its cant's share of Statewide commercial bank depos- customers. In particular, Applicant has indicated its by less than 0.1 per cent and would have no that it intends to cause Bank to reduce auto loan appreciable eff ect upon the concentration of bank- interest rates and to offer additional maturities and ing resources in the State. reduced minimum amounts on certificates of de- Bank is the smallest of four banking organi- posit. In addition, the trust services of Applicant's zations in the Barnesville banking market,2 and lead bank will be more conveniently available to controls approximately 5.3 per cent of the total customers of Bank. Finally, upon affiliation with deposits in commercial banks in the market.3 Ap- Applicant, Bank's ability to make larger loans will plicant, with one subsidiary bank in the market, be substantially enhanced. Thus, considerations is the second largest banking organization in that relating to the convenience and needs of the commarket, and holds deposits of approximately $14.2 munity to be served lend weight toward approval million, representing 20.6 per cent of market de- of the application and outweigh any adverse effects posits. In addition to its principal banking office, on competition that might result from consumma- Applicant's subsidiary bank has one branch office tion of the proposal. Accordingly, it is the Board's located in the Barnesville banking market. While judgment that the proposed acquisition would be consummation of this proposal would eliminate in the public interest and that the application some existing competition inasmuch as Applicant should be approved. and Bank operate in the Barnesville banking mar- On the basis of the record, the application is ket, in view of the nature of the market and Bank's approved for the reasons summarized above. The small size, the Board regards the effects of the transaction shall not be made before the thirtieth proposal on competition as being only slightly calendar day following the effective date of this adverse. Moreover, while the Barnesville banking Order or later than three months after the effective market is concentrated, in view of the facts pre- date of this Order, unless the latter period is sented in the record of this application, the Board extended for good cause by the Board or by the does not regard the increase in concentration of Federal Reserve Bank of Cleveland pursuant to delegated authority. By order of the Board of Governors, effective 1 All banking data are as of December 31, 1977, except as September 5, 1978. otherwise indicated. On April 26, 1978, Applicant received the Board's prior approval for the acquisition of Community National Bank, Flushing, Ohio ("Community Bank"), which Voting for this action: Chairman Miller and Goveris located in Bank's market area. Community Bank is treated as a subsidiary of Applicant for the purposes of the Board's nors Gardner, Wallich, Jackson, and Partee. Absent and competitive analysis. not voting: Governor Cold well. 2 The Barnesville banking market, a primarily rural area on the periphery of the Wheeling, West Virginia, banking market, is approximated by the Western two-thirds of Belmont County, Ohio. (Signed) GRIFFITH L. GARWOOD, 3 Market deposit data are as of June 30, 1977. [SEAL] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 811 State Bancshares, Inc., area as Applicant's subsidiary bank, does not Olton, Texas compete to any significant extent with Bank. Moreover, the relevant market does not appear to Order Approving Acquisition of Bank be attractivs for de novo entry in view of the State Bancshares, Inc., Olton, Texas, a bank declining population in the market and the fact holding company within the meaning of the Bank that the ratio of population to banking offices is Holding Company Act, has applied for the Board's well below the comparable Statewide average approval under § 3(a)(3) of the Act (12 U.S.C. ratio. Accordingly, consummation of the proposal § 1842(a)(3)) to acquire 56.8 per cent of the voting will have no significant adverse effect on either existing or potential competition or on concentrashares of Security State Bank, Littlefield, Texas tion of banking resources in the relevant banking ("Bank"). market. Therefore, the Board concludes that com- Notice of the application, affording opportunity petitive considerations are consistent with approval for interested persons to submit comments and of the application. views, has been given in accordance with § 3(b) The financial and managerial resources of Apof the Act. The time for filing comments and views plicant and its subsidiaries, as well as those of has expired, and the Board has considered the Bank, are regarded as satisfactory, and their future application and all comments received in light of prospects appear favorable. Thus, banking factors the factors set forth in § 3(c) of the Act (12 U.S.C. are consistent with approval of the application. If § 1842(c)). the application is approved, Applicant proposes to Applicant, the 410th largest banking organimake expanded services available to customers of zation in Texas, controls one bank with deposits Bank, including mortgage loans, accounts receivof $22.1 million, representing 0.04 per cent of able financing, and direct deposit of payroll the total deposits in commercial banks in the State.1 Acquisition of Bank, with deposits of $30.9 checks. Applicant also intends to extend banking million, would make Applicant2 the 127th largest hours and to increase Bank's loan portfolio, especially its agricultural loans. These considerations banking organization in the State and would inrelating to convenience and needs of the commucrease Applicant's share of deposits in commercial nity to be served are consistent with, and lend banks in Texas by less than 0.1 per cent. Consesome weight toward, approval of the application. quently, the acquisition would not have an appre- Therefore, it is the Board's judgment that the ciable effect upon the concentration of banking proposed acquisition is in the public interest and resources in the State. that the application should be approved. Bank is the largest of four banks competing in the relevant market,3 holding 53.6 per cent of the On the basis of the record, the application is total deposits in commercial banks in that market. approved for the reasons summarized above. The Applicant's only subsidiary bank does not compete transaction shall not be made (a) before the thirin the relevant market and is located approximately tieth calendar day following the effective date of 30 miles from Bank's sole office. From the record, this Order or (b) later than three months after the it appears that no significant competition currently effective date of this Order, unless such period exists between Applicant's subsidiary bank and is extended for good cause by the Board or by Bank, and it appears unlikely that any significant the Federal Reserve Bank of Dallas pursuant to competition would develop between them in the delegated authority. future. In addition, Applicant's nonbank subsidi- By order of the Board of Governors, effective ary, which makes agricultural loans in the same September 29, 1978. 1 All banking data are as of December 31, 1977. Voting for this action: Chairman Miller and Gover- 2 Applicant, a "company covered in 1970" as that term nors Gardner, Wallich, Coldwell, Jackson, Partee, and is defined in the Act, has continuously since June 30, 1968, Teeters. leased a service station that it owns. This activity is permanently "grandfathered" pursuant to § 4(a)(2) of the Act, and the Board sees no reason to require Applicant to terminate this activity at this time. 3 An analysis of topographical population, highway access, and advertising media data indicates that the relevant banking (Signed) GRIFFITH L. GARWOOD, market is approximated by the southern two-thirds of Lamb County, Texas. [SEAL] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 Texas Commerce Bancshares, Inc., including the southwestern sector, appears to be Houston, Texas capable of supporting additional entrants. As part of its analysis of the subject application, Order Approving Acquisition of Bank the Board has considered the comments of the Texas Banking Commissioner and the comments Texas Commerce Bancshares, Inc., Houston, and request for a hearing submitted by Protestants. Texas, a bank holding company within the mean- In summary, Protestants contend that consummaing of the Bank Holding Company Act, has aption of the subject proposal would further increase plied for the Board's approval under section Applicant's dominant position in the State of 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to Texas and, more particularly, in the Houston acquire 100 per cent of the voting shares (less banking market; Applicant's de novo expansion directors' qualifying shares) of Richmond Comin the southwestern part of the market, where merce Bank, Houston, Texas ("Bank"), a pro- Applicant is already well-represented, has inposed de novo bank. creased the concentration of banking resources in Notice of the application, affording opportunity that section of Houston; the acquisition of Bank for interested persons to submit comments and by Applicant would preempt an attractive site for views, has been given in accordance with section future de novo entry; because of the high number 3(b) of the Act. The time for filing comments and of bank charters being granted in the Houston views has expired, and the Board has considered market, further entry has become highly restricted, the application and all comments received includparticularly in Houston's southwestern portion; ing those of Western Bank and Post Oak Bank Bank's proposed service area cannot support an ("Protestants"), both located in Houston, Texas, additional bank and the growth of smaller banks and the Texas Banking Commissioner, in light of in the area will be adversely affected by the estabthe factors set forth in section 3(c) of the Act (12 lishment of Bank; finally, Protestants maintain U.S.C. § 1842(c)). there is no need for additional banking services Applicant is the largest banking organization in in Bank's proposed service area. Protestants have Texas and controls 38 banking subsidiaries, with requested a hearing on the subject application. The aggregate deposits of approximately $4.9 billion, Texas Banking Commissioner has suggested that representing 8.2 per cent of total deposits in commercial banks in the State.1 Since Bank is a the Board, in acting upon the subject application, give special attention to the proximity of Appliproposed new bank, Applicant's acquisition of cant's subsidiary banks to Bank's proposed site. Bank would not cause any immediate increase in Applicant's share of deposits in commercial banks With regard to Protestants' request for a hearin Texas. ing, the Board has examined the record of the Bank has received charter approval from the hearing held in connection with the chartering of Department of Banking of the State of Texas and Bank and in which the Protestants participated, is to be located in the southwest part of the city as well as the voluminous written submissions of of Houston. Applicant ranks as the second largest the Protestants and Applicant, and is unable to of 123 banking organizations in the Houston conclude that a hearing would significantly supbanking market,2 with 14 subsidiary banks con- plement the record before the Board or serve to trolling 19.2 per cent of total market deposits. resolve issues already thoroughly discussed in the Since Bank is a proposed new bank, Applicant's above-noted submissions and in the record of the acquisition of Bank would not eliminate any ex- hearing before the State Banking Board of Texas. isting competition, nor would it have any immedi- In view of the foregoing, Protestants' request for ate effect upon Applicant's share of commercial a hearing is hereby denied.3 bank deposits in the market. In addition, the facts The Board notes that Applicant is but one of of record indicate that even after consummation four banking organizations of comparable size in of this proposal the Houston banking market, Texas, as measured by total deposits. Within the Houston banking market, Applicant is the second 1 All deposit data are as of December 31, 1977, and reflect bank holding company formations and acquisitions approved 3 Under section 3(b) of the Act, the Board is required to as of June 30, 1978. hold a hearing only if the primary supervisor of the bank to 2 The Houston banking market is approximated by the be acquired recommends disapproval of the application (12 Houston Ranally Metropolitan Area ("RMA"), which includes U.S.C. § 1842(b)). Where, as in this instance, the primary Harris County and portions of Montgomery, Libery, Brazoria, supervisor has not recommended disapproval there is no statu- Fort Bend, and Galveston Counties in Texas. tory requirement that the Board hold a hearing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 813 largest banking organization, competing with 122 holding companies that are among the ten largest other banking organizations in the market. More- in the State. Furthermore, as noted above, Bank's over, the Houston banking market has the lowest service area is experiencing rapid growth, and four-firm concentration ratio of Texas' four pri- appears attractive for de novo entry. Based upon mary banking markets, with the top four banking these and other facts of record, it appears that organizations controlling 55.6 per cent of market Applicant's proposal to acquire Bank, will not give deposits. To characterize Applicant as "domi- Applicant an undue competitive advantage in nant" in the Houston market is not an accurate Bank's service area, the southwestern section of description of Applicant's standing in that market. Houston, or in the Houston banking market as a In addition, the Board is unable to conclude that whole. consummation of the subject proposal would have Accordingly, based upon all the facts of record, the effects on Statewide concentration ascribed by including the record of the chartering hearing, the Protestants. submissions of Protestants, and the submissions While under some circumstances de novo ex- of Applicant, and given the growth of the Houston pansion in a market by a leading organization market, the large number of competing organiwithin that market could reduce prospects for zations, and the number of opportunities for marmarket deconcentration by preempting viable sites ket deconcentration, the Board concludes that apfor de novo entry or expansion by other firms, proval of this application would not result in any Applicant's de novo expansion in the rapidly adverse effects upon competition in any relevant growing southwest sector of Houston would have area. only a minimal impact upon market entry condi- The financial and managerial resources and futions.4 Further, it appears that the southwestern ture prospects of Applicant and its subsidiary part of the Houston market is clearly capable of banks are regarded as generally satisfactory, parsupporting an additional bank without having a ticularly in light of Applicant's commitment to significant adverse effect upon Protestants' banks inject additional capital into Texas Commerce or the other banks in the area. From the facts of Bank upon consummation of the proposal. Bank, record, it appears that even after consummation as a proposed de novo bank, has no financial or of the proposal the market would remain attractive operating history; however, its prospects as a for de novo entry and that ample opportunities for subsidiary of Applicant appear favorable. Accordmarket deconcentration remain through foothold ingly, considerations relating to banking factors or de novo entry into the market. are consistent with approval of this application. In the Board's view, the concern expressed by The establishment of Bank would provide a new the Texas Banking Commissioner and Protestants and convenient banking alternative for the area's over the proximity of two of Applicant's subsidi- residents. Moreover, as a subsidiary of Applicant, ary banks to Bank is not warranted in light of the Bank would have access to Applicant's financial facts of record. The record indicates that Appli- and managerial resources and would be able to cant's two closest subsidiary banks to Bank pres- institute and develop a full line of banking servently do not derive a significant amount of their ices. Thus, considerations relating to the convenloans or deposits from Bank's proposed service ience and needs of the community to be served area. Moreover, located within Bank's proposed lend some weight toward approval of the applicaservice area are five other competing commercial tion. Accordingly, it is the Board's judgment that banks three of which are subsidiaries of multi-bank consummation of the transaction would be in the public interest and that the application should be approved. 4 The Houston banking market experienced a population On the basis of the record, the application is increase of 25.4 per cent during the 1970-1978 period. The approved for the reasons summarized above. The population of the city of Houston increased by 18.4 per cent, transaction shall not be made (a) before the thircompared with a population increase of 14.6 per cent for the tieth calendar day following the effective date of State of Texas during the same period. It is also noted that the ratio of population-to-banking offices in the Houston bank- this Order or (b) later than three months after that ing market is 13,555, or 1.45 times the Statewide average. date, and (c) Richmond Commerce Bank, Hous- Also, per capita deposits in the market are 1.32 times the Statewide average. The southwestern sector of Houston has ton, Texas, shall be opened for business not later participated in the rapid expansion experienced throughout the than six months after the effective date of this Houston market over the last few years; moreover, numerous Order. Each of the periods described in (b) and shopping areas, office buildings, and apartment buildings are located within Bank's service area. (c) may be extended for good cause by the Board, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 or by the Federal Reserve Bank of Dallas, pursuant Act.1 In 1973, Savings formed 667 Corporation to delegated authority. to invest in and lease certain real estate located By order of the Board of Governors, effective in Virginia. It was subsequently determined that September 5, 1978. this was not a permissible investment for Savings under section 2(a)(5)(F) of the Act and that Savings would have to divest its direct ownership of Voting for this action: Vice Chairman Gardner and 667 Corporation. Accordingly, the sole purpose Governors Wallich, Jackson, and Partee. Absent and of the proposed transaction is to enable Savings not voting: Chairman Miller and Governor Coldwell. to divest itself of its direct ownership of 667 (Signed) GRIFFITH L. GARWOOD, Corporation in order to conform its investments [SEAL] Deputy Secretary of the Board. with statutory requirements of the exemption provided in section 2(a)(5)(F) of the Act. Applicant, the seventh largest commercial banking organization in Rhode Island, controls deposits of approximately $19.6 million, representing 0.57 per cent of total deposits in commer- ORDER UNDER SECTION 4 cial banks in that State.2 Applicant does not cur- OF BANK HOLDING COMPANY ACT rently engage in any nonbanking activities, either People's Corporation, directly or through subsidiaries. Since the pro- Providence, Rhode Island posed transaction is merely a corporate reorganization, it does not appear that consummation of Order Approving the proposal would have any adverse effects on Acquisition of 667 Corporation competition in any relevant area. On the other hand, approval of the proposed transaction will People's Corporation, Providence, Rhode Isensure the continuation of the services provided land, a bank holding company within the meaning by 667 Corporation to its customer on the same of the Bank Holding Company Act, has applied terms. Furthermore, there is no evidence in the for the Board's approval, under § 4(c)(8) of the record to indicate that consummation of the pro- Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) posed transaction would result in any undue conof the Board's Regulation Y (12 CFR centration of resources, unfair competition, con- § 225.4(b)(2)), to acquire 100 per cent of the flicts of interests, unsound banking practices, or voting shares of 667 Corporation, Providence, other effects that would be adverse to the public Rhode Island, a company that engages in the interests. activity of real property leasing. Such activity has Based upon the foregoing and other considbeen determined by the Board to be closely related erations reflected in the record, the Board has to banking (12 CFR § 225.4(a)(6)(b)). determined, in accordance with the provisions of Notice of the application, affording opportunity § 4(c)(8), that consummation of this proposal can for interested persons to submit comments and reasonably be expected to produce benefits to the views on the public interest factors, has been duly public that outweigh possible adverse effects and published (43 Fed. Reg. 27894). The time for that the application to engage in real property filing comments and views has expired, and the leasing activities should be approved. Accord- Board has considered the application and all comingly, the application is hereby approved. The ments received in the light of the public interest transaction shall be accomplished not later than factors set forth in § 4(c)(8) of the Act (12 U.S.C. three months after the effective date of this Order, § 1843(c)(8)). unless such period is extended for good cause by Applicant is a bank holding company by virtue the Board or by the Federal Reserve Bank of of its control of People's Trust Company, Provi- Boston. The approval of this application is subject dence, Rhode Island ("Bank"). Applicant, in to the conditions set forth in § 225.4(c) of Reguturn, is a wholly-owned subsidiary of People's Savings Bank, Providence, Rhode Island ("Sav- 1 Section 2(a)(5)(F) provides that no insured mutual savings ings"), a Rhode Island chartered, insured mutual bank is a bank holding company by virtue of its control of savings bank. While Savings controls Bank indi- a bank located in the same State, if the mutual savings bank rectly, Savings is not deemed to be a bank holding does not acquire directly more than 5 per cent of the voting shares of any company. company by reason of section 2(a)(5)(F) of the 2 All banking data are as of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 815 lation Y and to the Board's authority to require under the laws of the State of Missouri on June such modification or termination of the activities 1, 1953. Ward Parkway was a corporation organof a holding company or any of its subsidiaries ized under the laws of the State of Missouri. as the Board finds necessary to assure compliance Merchants acquired 750 shares, representing 100 with the provisions and purposes of the Act and per cent of the outstanding shares, of Ward Parkthe Board's regulations and orders issued way on January 28, 1955. thereunder, or to prevent evasion thereof. 2. On December 3, 1956, Merchants ac- By order of the Board of Governors, effective quired 14,500 shares, representing 24.2 per cent September 1, 1978. of the outstanding shares, of University Bank, Kansas City, Missouri. On May 1, 1969, the Voting for this action: Vice Chairman Gardner and shares of University Bank held by Merchants were Governors Wallich, Jackson, and Partee. Absent and exchanged for 24.2 per cent of the shares of not voting: Chairman Miller and Governor Coldwell. University Bancorp, Kansas City, Missouri, a (Signed) GRIFFITH L. GARWOOD, holding company that had been formed to hold [SEAL] Deputy Secretary of the Board. 99 per cent of the shares of University Bank. 3. On July 7, 1970, Merchants was a subsidiary of, i.e. approximately 38.75 percent of its voting shares were held by, Mawn Investment CERTIFICATION UNDER THE Company ("Mawn"), a company that would have BANK HOLDING COMPANY TAX ACT OF 1976 been a bank holding company had the 1970 Amendments to the BHC Act been in effect on University Bancorp, Inc., that date. Mawn held, directly and indirectly, an Kansas City, Missouri additional 21 per cent of the voting shares of Prior Certification Pursuant to the University Bancorp. The remaining 61.25 per cent Bank Holding Company Tax Act of 1976 of Merchants' voting shares, as well as all of the shares of Mawn, were owned by members of the University Bancorp, Inc., Kansas City, Mis- Schultz family.3 The President and two of the three souri ("University") (formerly Orwig and Com- directors of Merchants were members of the pany, Inc. ("Orwig")), has requested a prior Schultz family. Those members of the Schultz certification pursuant to section 6158(a) of the family who were officers and directors of Mer- Internal Revenue Code ("Code"), as amended by chants, and their immediate relatives, directly and section 3(a) of the Bank Holding Company Tax indirectly owned an additional 45.1 per cent of Act of 1976 (the "Tax Act"), that the sale on the voting shares of University Bancorp. June 12, 1975, by Ward Parkway Building Com- 4. During July 1970 the corporate holdings pany ("Ward Parkway"), a wholly-owned sub- of the Schultz family were reorganized so that sidiary of Merchants Investors, Inc., Kansas City, Mawn ceased to exist and Merchants became a Missouri ("Merchants"), of substantially all the subsidiary of Orwig, with Orwig owning 38.75 assets of Ward Parkway, was necessary or appro- per cent of Merchant's stock and 24.2 per cent priate to effectuate section 4 of the Bank Holding of Bancorp's stock. All of Orwig's shares were Company Act (12 U.S.C. § 1843) ("BHC Act").1 held by members of the Schultz family. Between University is the successor under Missouri law to July 24 and December 31, 1970, Merchants reall of the rights, privileges and interests of Mer- deemed all of its own voting shares held by Orwig. chants. As a result of these transactions, by December 31, In connection with this request, the following 1970, Orwig and Merchants both stood as indeinformation is deemed relevant for purposes of pendent corporations, each controlled by the issuing the requested certification:2 Schultz family and each owning 24.87 per cent 1. Merchants was a corporation organized of the voting shares of Bancorp. 1 Pursuant to section 3(e)(2) of the Tax Act, in the case 2 This information derives from University's correof any sale that takes place on or before December 31, 1976 spondence with the Board concerning its request for certifi- (the 90th day after the date of the enactment of the Tax Act), cation, Orwig's and Merchant's Registration Statements filed the certification described in § 6158(a) shall be treated as made with the Board pursuant to the BHC Act, and other records before the sale, if application for such certification was made of the Board. before the close of December 31, 1976. University's applica- 3 The family members referred to are Sonia and Sam tion for such certification was received by the Board on Schultz, their sons William, Norman and Michael, and their December 29, 1976. daughter, Aletha Simon, and her husband. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 5. Merchants registered as a bank holding 11. No director, officer, or employee with company on September 20, 1971. policy-making functions of University or any of its 6. In accordance with section 1103(b)(2) of subsidiaries (including honorary and advisory the Tax Act, Merchants is deemed, solely for the directors) holds any such position with Graham purpose of issuing the requested certification, to Investment Company. have controlled University as of July 7, 1970, by 12. No interest in Graham Investment Comvirtue of exercising a controlling influence over pany is held by trustees for the benefit of Univer- University Bancorp as of that date pursuant to sity, its shareholders or employees. section 2(a)(2)(c) of the BHC Act. 13. University has no means, directly or in- 7. During 1972 and 1973, as the result of directly, by which it is able to exercise or has treasury stock acquisition by University Bancorp, the power to exercise a controlling influence over Merchants' percentage ownership in University the management or policies of Graham Investment Bancorp increased to 38.57 per cent. This situation Company. remained the same at the time of the Ward Park- 14. Under Missouri law, Section 351.450 way sale (June 17, 1975) and until Merchants and Mo. Rev. Stat. (1969), University succeeded to Orwig merged on December 31, 1975. all the rights that Merchants held prior to the 8. On June 12, 1975, Merchants held prop- merger of Merchants and Orwig on December 31, erty acquired by it on or before July 7, 1970, the 1975. disposition of which would be necessary or appro- On the basis of the foregoing information, it priate to effectuate section 4 of the BHC Act if is hereby certified that: Merchants were to continue to be a bank holding (A) At the time of the sale by Ward Parkway company beyond December 31, 1980, which of its warehouse property to Graham Investment property is "prohibited property" within the Company, Merchants was a qualified bank holding meaning of sections 6158(f)(2) and 1103(c) of the corporation within the meaning of section Code. 6158(f)(1) and subsection (b) of section 1103 of 9. In 1962 Ward Parkway purchased prop- the Code, and satisfied the requirements of that erty located at 7215 Topeka Boulevard, Topeka, subsection; Kansas, known as the "Heart of America ware- (B) the assets sold by Ward Parkway were house property." On June 12, 1975, Ward Park- "prohibited property" within the meaning of secway sold this warehouse property to a third party, tions 6158(f)(2) and 1103(c) of the Code; and Graham Investment Company, Wichita, Kansas, (C) the sale of the Ward Parkway properties for $1,450,000 in cash. No debtor-creditor rela- was necessary or appropriate to effectuate section tionship existed or exists between Graham Invest- 4 of the BHC Act. ment Company and Merchants or any corporation This certification is based upon the represucceeding to the rights and liabilities of Mer- sentations made to the Board by University and chants. Ward Parkway was liquidated into Mer- upon the facts set forth above. In the event the chants on December 31, 1975. Board should hereafter determine that facts mate- 10. On December 1, 1975, the Board of rial to this certification are otherwise than as rep- Governors of the Federal Reserve System issued resented by University, or that University has an Order approving the application of Orwig and failed to disclose to the Board other material facts, Company, Kansas City, Missouri ("Orwig", a it may revoke this certification. bank holding company controlled by the Schultz By order of the Board of Governors acting family) to merge with Merchants pursuant to sec- through its General Counsel pursuant to delegated tion 3(a)(5) of the BHC Act. On December 31, authority (12 CFR § 265.2(b)(3)), effective Sep- 1975, Merchants merged with Orwig under the tember 14, 1978. charter and title of Orwig. On June 9, 1976, Orwig amended its articles of corporation to change its (Signed) JOHN M. WALLACE, name to University Bancorp, Inc. ("University"). [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 817 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT During September 1978, the Board of Governors approved the applications listed below. Copies are available on request to Publications 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) Bates County Bancshares, Inc., Security Bank of Rich Hill, September 27, 1978 Rich Hill, Missouri Rich Hill, Missouri BYRON BANCSHARES, INC., First National Bank of Byron, September 5, 1978 Byron, Illinois Byron, Illinois Exchange Bancorporation, Inc., The Vanderbilt Bank, September 22, 1978 Tampa, Florida Naples, Florida First Bancorp of N.H., Inc., Wolfeboro National Bank, September 15, 1978 Manchester, New Hampshire Wolfeboro, New Hampshire Guaranty Corporation, Guaranty Bank and Trust September 28, 1978 Denver, Colorado Company, Denver, Colorado Herget Financial Corp., The Herget National Bank of September 22, 1978 Pekin, Illinois Pekin, Pekin, Illinois Pecatonica Bancshares, Inc., Bank of Pecatonica, September 15, 1978 Pecatonica, Illinois Pecatonica, Illinois St. Joseph Bancshares, Inc., Farmers State Bank, September 20, 1978 St. Joseph, Missouri St. Joseph, Missouri ORDERS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant Bank(s) Bank date First Virginia Bank-Eastern, Bank of Warrenton, Richmond September 6, 1978 Warrenton, Fauquier Warrenton, Virginia County, Virginia Southern Bank and Trust Company, Williamsburg National Richmond September 6, 1978 Richmond, Virginia Bank, Williamsburg, Virginia The F.B.G. Bank of Mount The Sterling State Bank, Cleveland September 20, 1978 Sterling, Mount Sterling, Mount Sterling, Ohio Ohio Bank of Utah, Bank of Brigham City, San Francisco September 20, 1978 Ogden, Utah Brigham City, Utah Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 BY FEDERAL RESERVE BANKS Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date First American Bank Corporation, Van Buren State Bank, Chicago September 20, 1978 Kalamazoo, Michigan Hartford, Michigan First Virginia Banks, Inc., Bank of Warrenton, Richmond September 6, 1978 Falls Church, Virginia Warrenton, Virginia Section 4 Nonbanking company Reserve Effective Applicant (or activity) Bank date Southwest Bancshares Underwriting credit Dallas September 12, 1978 Inc., Houston, life and credit Texas accident and health insurance directly related to banking PENDING CASES INVOLVING THE BOARD OF GOVERNORS Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Cradel v. The United States and the Reserve NCNB Corporation v. Board of Governors, Bank of Philadelphia, filed July 1978, filed June 1978, U.S.C.A. for the Fourth U.S.D.C. for the Eastern District of Penn- Circuit. sylvania. NCNB Corporation v. Board of Governors, Beckley v. Board of Governors, filed July filed June 1978, U.S.C.A. for the Fourth 1978, U.S.D.C. for the Northern District of Circuit. Illinois. Citicorp v. Board of Governors, filed March Independent Bankers Association of Texas v. 1978, U.S.C.A. for the Second Circuit. First National Bank in Dallas, et al., filed Ellis Banking Corporation v. Board of Gov- July 1978, U.S.C.A. for the Northern Dis- ernors, filed May 1978, U.S.C.A. for the trict of Texas. Fifth Circuit. Mid-Nebraska Bancshares, Inc. v. Board of United States League of Savings Associations Governors, filed July 1978, U.S.C.A. for the v. Board of Governors, filed May 1978, District of Columbia. U.S.D.C. for the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 819 Hawkeye Bancorporation v. Board of Gov- BankAmerica Corporation v. Board of Governors, filed April 1978, U.S.C.A. for the ernors, filed May 1977, U.S.C.A. for the Eighth Circuit. Ninth Circuit. Dakota Bankshares, Inc. v. Board of Gov- National Automobile Dealers Association, Inc. ernors, filed April 1978, U.S.C.A. for the v. Board of Governors, filed November Eighth Circuit. 1976, U.S.C.A. for the District of Columbia. Security Bancorp and Security National Bank Central Wisconsin Bankshares, Inc. v. Board v. Board of Governors, filed March 1978, of Governors, filed June 1976, U.S.C. A. for U.S.C.A. for the Ninth Circuit. the Seventh Circuit. Michigan National Corporation v. Board of Memphis Trust Company v. Board of Gov- Governors, filed January 1978, U.S.C.A. for ernors, filed February 1976, U.S.D.C. for the Sixth Circuit. the Western District of Tennessee. Wisconsin Bankers Association v. Board of First Lincolnwood Corporation v. Board of Governors, filed January 1978, U.S.C.A. for Governors, filed February 1976, U.S.C.A. the District of Columbia. for the Seventh Circuit. Vickars-Henry Corp. v. Board of Governors, Roberts Farms, Inc. v. Comptroller of the filed December 1977, U.S.C.A. for the Ninth Currency, et. al., filed November 1975, Circuit. U.S.D.C. for the Southern District of Cali- Emch v. The United States of America, et al., fornia. filed November 1977, U.S.D.C. for the Florida Association of Insurance Agents, Inc. Eastern District of Wisconsin. v. Board of Governors, and National Asso- Corbin v. Federal Reserve Bank of New York, ciation of Insurance Agents, Inc. v. Board Board of Governors, et. al., filed October of Governors, filed August 1975, actions 1977, U.S.D.C. for the Southern District of consolidated in U.S.C.A. for the Fifth Cir- New York. cuit. Central Bank v. Board of Governors, filed David R. Merrill, et. al. v. Federal Open October 1977, U.S.C.A. for the District of Market Committee of the Federal Reserve Columbia. System, filed May 1975, U.S.D.C. for the Investment Company Institute v. Board of District of Columbia. Governors, filed September 1977, U.S.C.A. Bankers Trust New York Corporation v. Board for the District of Columbia. of Governors, filed May 1973, U.S.C.A. for BankAmerica Corporation v. Board of Gov- the Second Circuit. ernors, filed May 1977, U.S.C.A. for the Northern District of California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

821 Announcements CHANGES IN DISCOUNT RATE institutions they regulate to help meet the credit needs of their communities, including low- and The Board of Governors of the Federal Reserve moderate-income neighborhoods, consistent with System announced approval of an increase in the safe and sound operations. discount rate from 8 to 8V2 per cent, effective Before issuing these final rules, the agencies October 16, 1978. considered more than 500 letters of comment from The action was taken to bring the discount rate the public. In response to numerous suggestions, into closer alignment with increased short-term the requirements were clarified and simplified. market interest rates, and in recognition of contin- The Board of Governors, the Comptroller of the ued high inflation, the recent rapid rate of mone- Currency, the Federal Deposit Insurance Corporatary expansion, and current international financial tion, and the Federal Home Loan Bank Board will conditions. be assessing institutions' records of providing local In making the change, the Board acted on recredit services. quests from the directors of the Reserve Banks Key factors are listed in the regulations for of Boston, New York, Philadelphia, Cleveland, examiners to use in assessing a lender's record. Richmond, Atlanta, Chicago, St. Louis, Min- An institution's performance will be taken into neapolis, Kansas City, Dallas, and San Francisco. account when it applies for branches, mergers, Earlier, the Board had announced an increase charters, insurance, and certain other approvals. in the discount rate from 7% to 8 per cent, effec- Past performance may be grounds for denial of tive September 22, 1978. an application. Action was taken in recognition of recent in- The regulation applies to all such applications creases in other short-term interest rates, to bring pending on November 6, 1978, as well as to those the discount rate into closer alignment with shortfiled on or after that date. term rates generally, and as a further step to The agencies will also consider the views of strengthen the dollar. State supervisory authorities when State-chartered In making the change, the Board acted on reinstitutions apply for Federal deposit insurance or quests from the directors of the Federal Reserve other approvals. Banks of Boston, New York, Philadelphia, The CRA regulation approved by the agencies Cleveland, Richmond, Atlanta, Chicago, St. includes the following principal provisions de- Louis, Minneapolis, Kansas City, Dallas, and San signed to assist lenders in complying with the act, Francisco. The discount rate is the interest rate to inform the public, and to help regulators disthat member banks are charged when they borrow charge their responsibilities: from their district Federal Reserve Banks. DELINEATION OF COMMUNITY COMMUNITY REINVESTMENT ACT: Lenders subject to the act are required to prepare and at least annually to review a map delineating Regulations the local community or communities comprising Federal regulators of banks and savings and loan the lender's entire community, without excluding associations have announced final regulations im- low- and moderate-income neighborhoods. A local plementing the Community Reinvestment Act community consists of the contiguous areas around (CRA), to take effect November 6, 1978. each office or group of offices of the institution The act requires the agencies to have in force but need not take account of off-premises elecregulations by that date and to encourage the tronic facilities that receive deposits for more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 Federal Reserve Bulletin • October 1978 one lender. The regulation specifies three bases performance in helping to meet the credit for delineation of a community: needs of this community, and to take this evaluation into account when the regulator • Boundaries such as those of a standard decides on certain applications submitted by metropolitan statistical area (SMSA), or us. Your involvement is encouraged. counties, where an institution's office or offices are located. Where appropriate, adja- You should know that: cent areas may be included, and adjustments • You may obtain our current CRA Statemay be made for boundaries such as State ment for this community in this office. lines. Small institutions may delineate those (Current CRA Statements for other commuareas of an SMSA or county it may reasonnities served by us are available at our head ably be expected to serve. office, located at (address).) • A lender may use its effective lending • You may send signed written comments territory by delineating its local community, about our CRA Statement(s) or our perdefined as areas where it makes a substantial formance in helping to meet community portion of its loans, and other equidistant credit needs to (title and address of State areas around each of its offices. member bank official) and to Community • A lender may use any other reasonably Reinvestment Officer (appropriate Reserve delineated area that meets the purposes of Bank) (address). Your letter, together with the act and does not exclude low- and mod- any responses by us, may be made public. erate-income areas. • You may look at a file of all signed, written comments received by us within the COMMUNITY REINVESTMENT ACT past two years, any responses we have made to the comments, and all CRA Statements STATEMENT in effect during the past two years at our office located at (address). (You also may Within 90 days after November 6, 1978, the board look at the file about this community at of directors of each institution subject to the act (name and address of designated office).) shall adopt a Community Reinvestment Act State- • You may ask to look at any comments ment (CRA Statement) for each delineated local received by the (appropriate Federal Reserve community including the following main features: Bank). 1. The delineation of the local community; • You also may request from (the appro- 2. A list of the principal types of credit the priate Federal Reserve Bank) an announcement of applications covered by the lender is prepared to extend in the local CRA filed with the Federal Reserve. community; 3. A copy of the Community Reinvestment Act • We are a subsidiary of (name of bank holding company), a bank holding company. notice cited below. Applications filed by bank holding compa- Lenders are encouraged to include also in their nies that are covered by the CRA are included in (the Federal Reserve's) an- CRA Statement a statement of how they are helpnouncement of applications referred to in a ing to meet community credit needs, a periodic previous paragraph. report on their record of helping to meet commu- Consumers should note that they may request nity credit needs, and how they attempt to ascerto be placed on a roster to receive announcements tain the credit needs of their local community. of CRA-covered applications that have been filed The lender's board of directors shall review and with the supervisory agency. update the lender's CRA Statement at least annually. FILES OF PUBLIC COMMENTS COMMUNITY REINVESTMENT ACT NOTICE Each lender shall maintain in files, readily available upon request for inspection by any member Within 90 days after November 6, 1978, each of the public, all signed written comments received lender shall provide in the lobby of each of its from the public within the past 2 years that refer premises the following public notice (statements specifically to any CRA Statement or to the that are in parentheses apply only to lenders that lender's performance in helping to meet the credit serve more than one local community): needs of its community or communities. The The Federal Community Reinvestment Act lender may include its responses in this file. Any (CRA) requires the regulator to evaluate our comments that reflect adversely upon the good Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 823 name or reputation of any persons (natural or legal) would customarily extend on such collateral, in or violate specific provisions of a law shall be his best judgment, if the creditor had no other deleted. Also, files pertaining to all offices of a collateral that could be used to protect the loan. lender shall be maintained at its head office. Ma- The amendment as proposed would have reterials relating to a local community shall be quired a 30 per cent margin (downpayment). The maintained at an office in that community. 50 per cent margin requirement for convertible All letters in these files are open to public corporate bonds listed on a national exchange, or inspection. appearing on the Board's OTC list, remains in effect. REGULATION T: Amendment ADVERTISING OF The Board of Governors on September 20, 1978, AUTOMATIC FUNDS TRANSFER amended its Regulation T (Credit by Brokers and The Board of Governors has provided guidance Dealers) to permit brokers and dealers to extend to member banks concerning advertising of plans and maintain credit on certain nonconvertible corfor the automatic transfer of funds from savings porate bonds. to checking accounts. The amendment affects corporate bonds with In a letter sent to all member banks, the Board characteristics specified by the Board that are sold advised banks that advertisements and promotional only on the over-the-counter (OTC) market. Bematerials should indicate clearly that the automatic fore adoption of the amendment, credit could be transfer service involves two separate accounts—a extended by brokers and dealers only for bonds checking account and a savings account. Banks listed on a national securities exchange. are also advised that advertisements for the auto- The Board maintains a list of some 1,100 equity matic transfer service should not convey the imsecurities sold over the counter on which brokers pression that interest is being paid on a checking and dealers may extend credit. This list includes account or that checks may be written against an seven convertible corporate bonds (debt issues that interest-bearing savings account. may be converted to equity issues). The Board has approved the automatic transfer The amendment adopted provides that credit of funds from savings to checking accounts, bemay be extended and maintained by brokers and ginning November 1. The service that has been dealers also on unlisted nonconvertible corporate approved by the Board requires that member banks bonds that are sold on the OTC market and have offering the service specifically disclose in written the following characteristics: agreements with customers desiring the service • At the time the credit is extended, the that the bank reserves the right to require at least outstanding principal amount of the issue is 30 days' notice of withdrawal from savings acnot less than $25 million. counts. • All payments of principal and interest are The Federal Deposit Insurance Corporation will current. issue similar guidance to insured nonmember • The issue was registered with the Securi- banks in the near future. ties and Exchange Commission (SEC) and the issuer is providing current reports under SEC regulations. NATIONWIDE EFT NETWORK The amendment provided that these securities will be designated "OTC margin bonds." The Board of Governors has announced the com- After reviewing the various characteristics of pletion of a nationwide network for making payunlisted and exchange-traded corporate bonds— ments electronically through the use of Federal including investment quality, price behavior, and Reserve facilities. The Board in April had authormarketability—the Board decided to permit exten- ized Federal Reserve Banks to provide services sions of credit on a "good faith" basis for listed for automated clearinghouse (ACH) associations securities and for those unlisted bonds meeting its necessary to tie together ACH facilities in a nacriteria as well as for listed nonconvertible bonds. tional network. The amount of credit that may be extended on The Board said it expected the availability of a good faith basis is the amount a broker or dealer the new payments system network to enhance and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 improve financial services to individuals and to Reserve's wire network, to other ACH's. This financial institutions, as well as to encourage the procedure provides for the sorting and forwarding use of the electronic payments mechanism as a of payment instructions on checks electronically more efficient and less costly alternative to making rather than by mail or courier. payments by check. The ACH serving the area where the electroni- The Federal Reserve approved a pilot program cally recorded and forwarded payment instructions for a national electronic payments network in are to be carried out again sorts the instructions 1975. In conjunction with the National Automated by computer and forwards them to the indicated Clearing House Association (NACHA) pilot work commercial banks or thrift institutions. These started in early 1976. The last links in the national depositories will debit the accounts of customers system were completed on September 11, 1978. who are making the payments and credit the ac- NACHA was responsible for training local ACH counts of customers receiving payments, completassociations1 in the techniques of interregional ing the electronic transfer of funds. electronic payments transfer. The local associa- Increased efforts will be made to educate the tions gave technical assistance to member financial public in the uses of electronic payments. Finaninstitutions. cial institutions are committing additional funds The new network ties together, over the Federal to marketing and educational efforts. The U.S. Reserve's communications system, 32 ACH asso- Treasury is conducting quarterly conferences to ciations. These associations use computers in 34 promote the use of direct deposits in making its Federal Reserve offices where payments instruc- payments. Available ACH facilities are adequate tions recorded on magnetic tapes are cleared and to accommodate very large increases in volume. sorted and in 1 privately operated ACH. The The Federal Reserve ACH facilities linked by system makes intensified use of existing Federal the new system are located at: Reserve computers and wires and requires no new facilities. Birmingham, Ala. Kansas City, Mo. Little Rock, Ark. St. Louis, Mo. The system that has now been completed hooks Los Angeles, Calif. Charlotte, N.C. San Francisco, Calif. Cincinnati, Ohio up for the interchange of electronic payments some Denver, Colo. Cleveland, Ohio 9,400 banks, 1,500 thrift institutions that are cur- Jacksonville, Fla. Columbus, Ohio Miami, Fla. Portland, Oreg. rently members of ACH associations, and some Atlanta, Ga. Philadelphia, Pa. 6,000 customer corporations. Any financial insti- Chicago, 111. Pittsburgh, Pa. Indianapolis, Ind. Columbia, S.C. tution that is a member of an ACH association Des Moines, Iowa Memphis, Tenn. can now present payment instructions recorded on Louisville, Ky. Nashville, Tenn. New Orleans, La. Dallas, Tex. magnetic tape to the nearest ACH for transmission Baltimore, Md. Salt Lake City, Utah Boston, Mass. Richmond, Va. nationwide. Detroit, Mich. Seattle, Wash. Linkage of ACH associations in all parts of the Minneapolis, Minn. Milwaukee, Wise. Nation makes possible the electronic transfer of The system also includes a privately operated payments to and from virtually any place in the ACH at New York, N.Y. that is operated by the United States. Payments that can be made by New York Automated Clearing House on its check can also be made electronically. At present, premises. most electronically transmitted payments are payroll deposits and payments of recurring bills (such as mortgages) or other recurring amounts UNIFORM INTERAGENCY (such as U.S. Treasury deposits for social security TRUST RATING SYSTEM beneficiaries and the like). A magnetic tape bearing instructions for payroll The three Federal bank regulatory agencies have deposits might contain instructions to make salary announced adoption of a uniform interagency syspayments to a company's employees located in tem for rating the trust departments of the Nation's many parts of the country. The ACH that receives commercial banks. such a tape sends the instructions, over the Federal In adopting the new system, the three agencies said: 1 ACH associations are local organizations of financial in- The Uniform Interagency Trust Rating Sysstitutions agreeing to initiate and receive among themselves electronic transfers of funds authorized by their customers. tem recognizes the consumer oriented nature Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 825 of trust department activities and emphasizes and to the public. Such a common yardstick is the trust department's proper role in carrying new. out its fiduciary responsibilities in the public The three agencies began to use a similar uniinterest. Examiners are encouraged by the form interagency bank rating system in May. new system to focus on any conditions that could adversely impact the interests of account beneficiaries and to recommend corrective action before any such conditions POLICY STATEMENT ON might give rise to loss either to account beneficiaries or to the bank. TAX TRANSACTIONS The new trust rating system is currently being The Board of Governors has approved a policy implemented by the Office of the Comptroller of statement on tax transactions between State memthe Currency (for national banks), by the Federal ber banks and their parent holding companies. The Deposit Insurance Corporation (for insured State statement is available on request from Publications chartered banks that are not members of the Fed- Services, Division of Administrative Services, eral Reserve System), and by the Board of Gover- Board of Governors of the Federal Reserve Sysnors (for State-chartered member banks). tem, Washington, D.C. 20551. The uniform system for rating trust departments of commercial banks has two main elements: 1. An assessment by Federal bank examiners PROPOSED REPORT of six critical areas of a trust department's admin- SIMPLIFICATION istration and operations. These areas encompass the capability of the department's managment, the The Federal bank regulatory agencies on October soundness of the policies and procedures to carry 11, 1978, proposed for comment a simplified verout the department's fiduciary obligations, the sion of the reports of condition and income that quality of service rendered to the public, and the could be used by more than 90 per cent of the effect of the department's activities on the Nation's commercial banks to reduce their reportsoundness of the bank. ing burden. The agencies (Comptroller of the The critical areas are as follows: supervision and Currency, Board of Governors, and Federal Deorganization of the trust department; the depart- posit Insurance Corporation) asked for comment ment's operations, controls, and audits; asset ad- by November 15, 1978. ministration; account administration; conflicts of interest; and earnings, volume trends, and prospects. REVISED OTC STOCK LIST Examiners will rate each of these critical areas of the trust department on a scale of 1 to 5, with The Board of Governors has published a revised 1 representing the top and 5 the bottom of the list of over-the-counter (OTC) stocks that are subscale. ject to its margin regulations, effective October 2. A combination of these ratings into a com- 2, 1978. posite—over-all—rating of the trust department. The list supersedes the revised list of OTC This composite rating is arrived at by totaling the margin stocks that was issued on April 3, 1978. ratings assigned to the separate areas. Changes that have been made in the list, which The agencies agreed upon qualitative guidelines now includes 1,157 OTC stocks, are as follows: that examiners will use in rating the six critical 81 stocks have been included for the first time; areas and in combining these ratings into a com- 8 stocks previously on the list have been removed posite rating. for substantially failing to meet the requirements Agreement on the factors that constitute the for continued listing; and 44 stocks have been main characteristics of a trust department's opera- removed for reasons such as being listed on a tions and soundness, and on how those factors national securities exchange or the companies should be combined into an over-all rating, is being acquired by another firm. expected to provide a basis for comparable judg- The list is available on request from Publications ments about bank trust departments by all three Services, Division of Administrative Services, Federal agencies and to enhance interagency eval- Board of Governors of the Federal Reserve Sysuations and reports by the agencies to the Congress tem, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 CHANGES IN BOARD STAFF SYSTEM MEMBERSHIP: Admission of State Banks The Board of Governors has announced that the Division of Administrative Services will be redes- The following banks were admitted to membership ignated the Division of Support Services, effective in the Federal Reserve System during the period January 1, 1979. September 16, 1978, through October 15, 1978: Donald E. Anderson, Assistant Director for Construction Management in the Office of Staff Alabama Director for Management, will be Director of the Oxford Bank of Oxford Division. Ohio Walter W. Kreimann, Director, Division of Cleveland Midwest Bank and Trust Administrative Services, has been named Asso- Company ciate Division Director for Staff Support. Kansas John L. Grizzard, Assistant Director, Division Topeka Columbian Trust Company of Administrative Services, will be Associate Di- Virginia vision Director for Building Services. Norfolk Fidelity American Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

827 Industrial Production Released for publication October 17 goods materials increased sharply. The increase in output of nondurable goods materials largely Industrial production increased an estimated 0.5 reflects the resumption of production in the paper per cent in September, the same as in August. industry that had been affected by strikes. Output The September increase reflected further advances of energy materials increased 0.3 per cent, with in the production of equipment, business and con- coal production again limited by the strike in the struction supplies, and materials. Output of con- railroad industry. sumer goods was constrained by a decline in auto production, due in part to the end-of-month strike by railroad clerks. At 147.5 per cent of the 1967 average, total industrial production in September was 6.5 per cent higher than a year earlier. In the third quarter, output rose at an annual rate of 7.7 per cent from the second quarter. Production of consumer durable goods declined 0.7 per cent in September, as a decrease in auto production more than offset a small rise in output of home goods; auto assemblies declined to an annual rate of 8.9 million units in September from a 9.4-million rate in August. Output of consumer nondurable goods in September increased 0.3 per cent; revised data for August and July indicate somewhat more growth in production of these goods over recent months than shown earlier. Production of business equipment increased 0.6 per cent further in September, following 3 months of very large increases, and was 9.3 per cent higher than a year earlier. Output of materials increased 0.8 per cent in F.R. indexes, seasonally adjusted. Latest figures: September. Auto sales September, as both durable goods and nondurable and stocks include imports. 1967 = = 100 Percentage change from preceding month to— PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1978 1978 999///777777 tttooo Aug.p Sept.'' Apr. May June July Aug. Sept. 999///777888 Total 146.7 147.5 1.6 .5 .7 .7 .5 .5 6.5 Products, total 145.9 146.4 1.0 .1 .6 .5 .8 .3 5.5 Final products 143.0 143.4 1.2 .0 .4 .6 .8 .3 4.8 Consumer goods 148.2 148.3 1.1 -.3 .0 .3 .5 .1 2.3 Durable 161.2 160.0 2.7 -1.0 .2 .0 .4 -.7 2.8 Nondurable 143.0 143.5 .4 -.1 -.1 .5 .5 .3 2.0 Business equipment.. 165.2 166.2 1.2 .6 1.0 1.1 1.0 .6 9.3 Intermediate products .. 156.4 157.3 .5 .3 1.4 .5 .6 .6 7.4 Construction supplies 155.3 155.9 .4 1.3 1.1 1.0 1.1 .4 8.9 Materials 148.0 149.2 2.7 1.0 .9 1.0 .1 .8 8.2 p Preliminary. * Estimated. NOTE.—Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS DOMESTIC FINANCIAL STATISTICS WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and Liabilities of— A4 Factors affecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans POLICY INSTRUMENTS A25 Gross demand deposits of individuals, partnerships, and corporations A8 Federal Reserve Bank interest rates A9 Member bank reserve requirements FINANCIAL MARKETS A10 Maximum interest rates payable on A25 Commercial paper and bankers time and savings deposits at Federally insured institutions acceptances outstanding A10 Margin requirements A26 Prime rate charged by banks on A11 Federal Reserve open market short-term business loans transactions A26 Terms of lending at commercial banks A27 Interest rates in money and capital markets FEDERAL RESERVE BANKS A28 Stock market—Selected statistics A12 Condition and F.R. note statements A13 Maturity distribution of loan and A29 Savings institutions—Selected assets security holdings and liabilities FEDERAL FINANCE MONETARY AND CREDIT AGGREGATES A30 Federal fiscal and financing operations A13 Bank debits and deposit turnover A31 U.S. Budget receipts and outlays A14 Money stock measures and components A32 Federal debt subject to statutory A15 Aggregate reserves and deposits of 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, Mar. 31, 1978 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • September 1978 SECURITIES MARKETS AND INTERNATIONAL STATISTICS CORPORATE FINANCE A54 U.S. international transactions— A36 New security issues—State and local Summary governments and corporations A55 U.S. foreign trade A37 Open-end investment companies—Net A55 U.S. reserve assets sales and asset position A56 Foreign branches of U.S. banks— A37 Corporate profits and their distribution Balance sheet data A3 8 Nonfinancial corporations—Assets and A58 Selected U.S. liabilities to foreign liabilities official institutions A38 Business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES: A39 Domestic finance companies—Assets and liabilities; business credit A59 Liabilities to foreigners A61 Banks' own claims on foreigners A62 Banks' own and domestic customers' REAL ESTATE claims on foreigners A40 Mortgage markets A63 Banks' own claims on unaffiliated A41 Mortgage debt outstanding foreigners A63 Liabilities to and claims on foreigners CONSUMER INSTALMENT CREDIT SECURITIES HOLDINGS AND TRANSACTIONS A42 Total outstanding and net change A43 Extensions and liquidations A64 Marketable U.S. Treasury bonds and notes—Foreign holdings and transactions FLOW OF FUNDS A64 Foreign official assets held at F.R. A44 Funds raised in U.S. credit markets banks A45 Direct and indirect sources of funds to A65 Foreign transactions in securities credit markets REPORTED BY NONBANKING CONCERNS IN DOMESTIC NONFINANCIAL STATISTICS THE UNITED STATES: A46 Nonfinancial business activity— A66 Short-term liabilities to and claims on Selected measures foreigners A46 Output, capacity, and capacity A67 Long-term liabilities to and claims on utilization foreigners A47 Labor force, employment, and unemployment INTEREST AND EXCHANGE RATES A48 Industrial production—Indexes and gross value A68 Discount rates of foreign central banks A50 Housing and construction A68 Foreign short-term interest rates A51 Consumer and wholesale prices A52 Gross national product and income A53 Personal income and saving A69 GUIDE TO TABULAR PRESENTATION AND STATISTICAL RELEASES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1977 1978 1978 Item Q3r Q4r Ql' Q2r Apr.r May r Juner July Aug. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 Member bank reserves 1 Total 7.3 6.1 8.5 6.3 9.3 10.0 15.0 14.9 -9.0 2 Required 6.9 6.3 5.7 11.8 11.0 7.8 16.4 14.3 -8.1 3 Nonborrowed 1.7 3.4 14.5 0.3 1.8 -11.4 19.4 8.0 -3.5 Concepts of money 1 4 M-l 8.0 7.5 6.2 9.9 19.6 7.2 7.5 4.8 8.5 5 M-2 9.9 8.1 6.9 7.9 11.2 7.1 7.8 8.0 10.4 6 M-3 11.9 10.6 7.7 7.8 9.5 7.2 8.4 9.3 11.8 Time and savings deposits Commercial banks: 7 Total 10.3 13.0 12.8 10.1 7.5 13.6 6.1 10.2 7.5 8 Other than large CD's 11.2 8.5 7.3 6.4 5.3 6.7 8.2 10.3 11.5 9 Thrift institutions 2 15.0 14.4 8.9 7.6 7.3 7.2 9.2 11.2 13.9 10 Total loans and investments at commercial banks 3 11.1 9.9 9.6 13.0 18.5 15.6 6.0 16.7 5.2 1977 1978 1978 Q4 Q1 Q2 Q3 May June July Aug. Sept. Interest rates (levels, per cent per annum) Short-term rates 11 Federal funds 4 6.51 6.76 7.28 8.09 7.36 7.60 7.81 8.04 8.45 12 Federal Reserve discount 5 5.93 6.46 6.78 7.50 6.84 7.00 7.23 7.43 7.83 13 Treasury bills (3-month market yield) 6 6.11 6.39 6.48 7.31 6.41 6.73 7.01 7.08 7.85 14 Commercial paper (90- to 119-day) 7 6.56 6.76 7.16 8.03 7.06 7.59 7.85 7.83 8.39 Long-term rates Bonds: 15 U.S. Governments 7.78 8.19 8.43 8.53 8.44 8.53 8.69 8.45 8.47 16 State and local government 9 5.57 5.65 6.02 6.16 6.03 6.22 6.28 6.12 6.09 17 Aaa utility (new issue) 1 o 8.27 8.70 8.98 8.94 8.95 9.09 9.14 8.82 8.86 18 Conventional mortgages 11 9.05 9.23 9.58 9.80 9.60 9.75 9.80 9.80 9.80 1 M-l equals currency plus private demand deposits adjusted. 7 Beginning Nov. 1977, unweighted average of offering rates quoted by M-2 equals M-l plus bank time and savings deposits other than large five dealers. Previously, most representative rate quoted by these dealers. negotiable certificates of deposit (CD's). 8 Market yields adjusted to a 20-year maturity by the U.S. Treasury. M-3 equals M-2 plus deposits at mutual savings banks, savings and 9 Bond Buyer series for 20 issues of mixed quality. loan associations, and credit union shares. I o Weighted averages of new publicly offered bonds rated Aaa, Aa, 2 Savings and loan associations, mutual savings banks, and credit and A by Moody's Investors Service and adjusted to an Aaa basis. unions. Federal Reserve compilations. 3 Quarterly changes calculated from figures shown in Table 1.23. II Average rates on new commitments for conventional first mortgages 4 Seven-day averages of daily effective rates (average of the rates on on new homes in primary markets, unweighted and rounded to nearest a given date weighted by the volume of transactions at those rates). 5 basis points, from Dept. of Housing and Urban Development. 5 Rate for the Federal Reserve Bank of New York. 12 Unless otherwise noted, rates of change are calculated from average 6 Quoted on a bank-discount basis. amounts outstanding in preceding month or quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • October 1978 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily Weekly averages of daily figures for weeks ending— figures Factors 1978 1978 July Aug. Sept.f Aug. 16 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20* Sept. 27p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding... 126,958 125,955 127,906 124,323 127,101 127,849 126,118 123,902 126,894 132,435 2 U.S. Govt, securities1 108,626 109,243 110,604 107,720 110,373 111,595 110,231 106,744 109,832 113,750 3 Bought outright 107,350 108,380 109,862 107,720 109,093 109,912 109,299 106,614 109,832 112,330 4 Held under repurchase agreement 1,276 863 742 1,280 1,683 932 130 1,420 5 Federal agency securities 8,584 8,220 8,323 7,983 8,204 8,485 8,218 7,969 7,950 8,920 6 Bought outright 8,166 8,016 7,958 7,983 7,981 7,981 7,976 7,963 7,950 7,950 7 Held under repurchase agreement 418 204 365 223 504 242 970 8 Acceptances 337 145 257 152 329 258 3 570 9 Loans 1,286 1,147 1,067 963 1,606 1,023 1,165 510 923 1,559 10 Float 5,399 4,826 5,316 5,066 4,821 4,446 4,029 6,382 5,803 5,337 11 Other Federal Reserve assets... 2,726 2,374 2,339 2,590 1,945 1,971 2,218 2,294 2,385 2.299 12 Gold stock 11,698 11,683 11,670 11,680 11,680 11,680 11,679 11,668 11,668 11,668 13 Special Drawing Rights certificate account 1,250 1,279 1,300 1,271 1,300 1,300 1,300 1,300 1,300 1.300 14 Treasury currency outstanding.... 11,612 11,644 11,682 11,640 11,651 11,658 11,666 11,674 11,683 11,692 ABSORBING RESERVE FUNDS 15 Currency in circulation 107,057 107,241 108,022 107,516 107,260 107,066 107,841 108,512 108,127 107,663 16 Treasury cash holdings 343 315 302 319 314 306 300 306 315 300 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury 10,512 10,065 11,080 8,419 10,810 11,675 9,468 7,803 9,497 15,429 18 Foreign 281 281 279 262 270 264 267 278 299 271 19 Other2 709 609 692 588 563 601 830 673 724 579 20 Other F.R. liabilities and capital... 4,047 3,971 4,077 3,805 4,061 4,319 4,109 3,783 4,046 4,285 21 Member bank reserves with F.R. Banks 28,570 28,079 28,105 28,007 28,455 28,256 27,947 27,189 28,537 28,568 End-of-month figures Wednesday figures 1978 1978 July Aug. Sept.P Aug. 16 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20* Sept. 27* SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding 126,509 128,374 131,940 126,999 130,192 130,702 121,931 126,356 128,948 135,076 23 U.S. Govt, securities1 108,885 111,739 115,279 109,512 112,744 112,303 106,175 108,975 109,824 116,363 24 Bought outright 108,149 109,858 113,027 109,512 109,687 109,800 106,175 108,067 109,824 113,259 25 Held under repurchase agreement 736 1,881 2,252 3,057 2,503 908 3,104 26 Federal agency securities 8,235 8,097 8,597 7,981 8,645 8,874 7,972 7,996 7,950 9,138 27 Bought outright 8,164 7,978 7,950 7,981 7,981 7,978 7,972 7,950 7,950 7,950 28 Held under repurchase agreement 71 119 647 664 896 46 1,188 29 Acceptances 268 296 715 401 449 23 753 30 Loans 1,127 954 1,363 1,089 1,803 1,310 785 566 2,032 1,157 31 Float 5,092 5,225 3,547 6,510 4,645 5,752 3,052 6,380 6,781 5,335 32 Other Federal Reserve assets 2,902 2,063 2,439 1,907 1,954 2,014 3,947 2,416 2,361 2,330 33 Gold stock 11,693 11,679 11,668 11,680 11,680 11,680 11,679 11,668 11,668 11,668 34 Special Drawing Rights certificate account 1,250 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 35 Treasury currency outstanding. 11,592 11,641 11,695 11,651 11,654 11,669 11,672 11,683 11,683 11,695 ABSORBING RESERVE FUNDS 36 Currency in circulation 106,577 107,588 107,672 107,690 107,359 107,640 108,591 108,684 108,150 107,985 37 Treasury cash holdings 313 299 302 321 308 304 305 306 297 297 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury 10,331 12,068 16,647 10,435 11,460 12,162 7,414 7,880 12,997 13,543 39 Foreign 347 309 325 272 243 235 301 285 337 253 40 Other2 771 691 628 622 627 631 1,566 592 660 559 41 Other F.R. liabilities and capital.. , 4,247 4,329 4,372 3,855 4,201 4,421 3,644 3,819 4,671 4,312 42 Member bank reserves with F.R. Banks 28,461 27,705 26,656 28,435 30,628 29,957 24,762 29,441 26,487 32,789 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 1977 1978 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.* All member banks Reserves: 1 At F.R. Banks 27,057 28,129 27,337 27,155 27,776 27,890 27,840 28,570 28,079 28,105 2 Currency and coin 9,351 9,980 9,320 8,992 9,028 9,151 9,345 9,542 9,512 9,600 3 Total held1 36,471 38,185 36,738 36,231 36,880 37,119 37,262 38,189 37,666 37,776 4 Required 36,297 37,880 36,605 35,925 36,816 36,867 37,125 38,049 37,404 37,612 5 Excess1 174 305 133 306 64 252 137 140 262 164 Borrowings at F.R. Banks:2 6 Total 558 481 405 344 539 1,227 1,111 1,286 1,147 1,067 7 Seasonal 54 32 52 47 43 93 120 143 188 197 Large banks in New York City 8 Reserves held 6,244 66,,880044 6,563 6,276 6,247 6,315 6,341 6,606 6,334 6,152 9 6,279 6,775 6,584 6,193 6,320 6,236 6,376 6,581 6,290 6,252 10 Excess -35 29 -21 83 -73 79 -35 25 44 -100 11 48 77 12 21 61 113 54 129 58 78 Large banks in Chicago 12 Reserves held 1,593 11,,773333 1,623 1,629 1,670 1,697 1,668 1,708 1,648 1,642 13 Required 1,613 1,684 1,633 1,620 1,686 1,669 1,670 1,707 1,646 1,650 14 Excess -20 49 -10 9 -16 28 -2 1 2 -8 1155 Borrowings 2 2266 1144 1111 1111 1199 2200 2200 3 3355 Other large banks 16 Reserves held 13,993 14,487 13,867 13,729 14,135 14,106 14,250 14,553 14,502 14,444 17 Required 13,931 14,504 13,861 13,662 14,077 14,079 14,225 14,569 14,423 14,536 18 Excess 62 -17 6 67 58 27 25 -16 79 -92 19 Borrowings2 243 164 150 92 249 500 536 499 417 362 All other banks 20 Reserves held 14,641 15,161 14,685 14,597 14,828 15,001 15,003 15,322 15,182 15,190 21 Required 14,474 14,917 14,527 14,450 14,733 14,883 14,854 15,192 15,045 15,174 22 Excess 167 244 158 147 95 118 149 130 137 16 23 241 226 243 220 218 595 501 638 669 592 Weekly averages of daily figures for weeks ending— 1978 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20* All member banks Reserves: 24 At F.R. Banks 28,362 28,101 27,194 28,007 28,455 28,256 27,947 27,189 28,537 25 Currency and coin 9,565 9,881 9,890 9,790 8,777 9,474 9,578 9,973 8,895 26 Total held i 38,004 38,058 37,159 37,872 37,307 37,804 37,600 37,236 37,501 27 Required 38,041 37,705 37,144 37,549 37,316 37,535 37,295 37,123 37,278 28 Excess1 -37 353 15 323 -9 269 305 113 223 Borrowings at F.R. Banks:2 29 Total 1,462 1,438 878 963 1,606 1,023 1,165 510 923 30 Seasonal 151 162 179 182 196 204 187 175 189 Large banks in New York City 31 Reserves held 6,352 6,432 6,267 6,419 6,287 6,158 6,378 6,106 6,266 32 Required 6,428 6,370 6,255 6,480 6,207 6,198 6,281 6,172 6,119 33 Excess -76 62 12 -61 80 -40 97 -66 147 34 Borrowings2 9 327 41 25 66 143 6 Large banks in Chicago 35 Reserves held 1,688 1,654 1,646 1,658 1,610 1,662 1,669 1,699 1,580 36 Required 1,679 1,663 1,637 1,668 1,609 1,662 1,669 1,684 1,621 37 Excess 9 -9 9 -10 1 15 -41 38 Borrowings2 7 4 134 Other large banks 39 Reserves held... 14,496 14,630 14,206 14,635 14,246 14,689 14,372 14,376 14,197 40 Required 14,555 14,496 14,318 14,446 14,395 14,526 14,336 14,356 14,401 41 Excess -59 134 -112 189 -149 163 36 20 -204 42 Borrowings2.... 696 409 305 338 846 158 379 123 210 All other banks 43 Reserves held. 15,468 15,342 15,040 15,160 15,164 15,295 15,181 15,055 15,157 44 Required... 15,379 15,176 14,934 14,955 15,105 15,149 15,009 14,911 15,137 45 Excess 89 166 106 205 59 146 172 144 20 46 Borrowings2.. 757 695 573 584 731 799 634 387 573 1 Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with Board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available, nonmember bank merges into an existing member bank, or when a 2 Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • October 1978 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1978, week ending— TTyyppee Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Total, 46 banks Basic reserve position 1 Excess reserves1 109 39 71 43 131 144 41 93 136 LESS: 2 Borrowings at F.R. Banks 448811 111188 221122 229999 112299 229977 222277 220022 3 Net interbank Federal funds transactions 1122,,996655 1166,,449999 1166,,880044 1166,,007799 1144,,333344 16,176 1188,,990055 15,867 1144,,991177 EQUALS : Net surplus, or deficit (-): 4 Amount -13,337 --1166,,557788 --1166,,994455 --1166,,333355 --1144,,333333 -16,328 -18,864 --1166,,000011 --1144,,998833 5 Per cent of average required reserves 83.9 105.9 106.2 105.0 91.4 104.2 120.8 103.3 93.9 Interbank Federal funds transactions Gross transactions: 6 Purchases 21,816 23,680 24,010 23,037 22,130 23,697 25,096 23,696 23,266 7 Sales 8,851 7,181 7,206 6,957 7,796 7,522 6,191 7,828 8,350 8 Two-way transactions2 66,,881144 55,,669933 55,,669900 55,,665555 55,,668800 5,428 5,380 55,,443344 5,133 Net transactions: 9 Purchases of net buying banks... 15,002 17,987 18,321 17,382 16,450 18,270 19,717 18,262 18,134 10 Sales of net selling banks 2,038 1,489 1,571 1,303 2,116 2,094 811 2,394 3,218 Related transactions with U.S. Government securities dealers 11 Loans to dealers 3 2,584 4,071 3,396 2,649 2,524 2,985 5,342 3,128 3,005 12 Borrowing from dealers* 1,879 1,682 1,399 1,701 2,028 1,297 1,421 951 2,574 13 Net loans 705 2,390 1,997 948 496 1,688 3,921 2,178 431 8 banks in New York City Basic reserve position 14 Excess reserves1 3322 5500 --3333 5533 3 110011 2 91 27 LESS: 15 Borrowings at F R Banks . ... 332277 3366 2255 6666 114433 9999 16 Net interbank Federal funds transactions 22,,994477 5,195 5,877 4,595 3,906 4,664 5,504 5,062 5,050 EQUALS : Net surplus, or deficit (-): 17 Amount --33,,224422 -5,145 -5,946 -4,567 -3,969 -4,707 -5,502 -4,971 -5,122 18 Per cent of average required 56.3 91.0 110011..33 8811..55 7700..99 8833..00 98.8 89.7 89.9 Interbank Federal funds transactions Gross transactions: 19 Purchases 4,750 5,977 6,703 5,570 5,453 5,686 6,067 5,932 5,858 20 Sales 1,803 781 826 975 1,547 1,022 564 871 808 21 Two-way transactions2 1,778 781 825 975 1,547 1,022 564 871 808 Net transactions: 22 Purchases of net buying banks... 2,972 5,195 55,,887777 44,,559955 33,,990066 4,664 5,504 5,062 55,,005500 2233 Sales of net selling banks 2255 Related transactions with U.S. Government securities dealers 24 Loans to dealers 3 1,593 2,567 2,444 1,815 1,657 2,129 3,300 2,180 1,848 25 Borrowing from dealers4 872 961 746 731 598 546 848 536 539 26 Net loans 721 1,606 1,697 1,084 1,060 1,583 2,453 1,643 1,309 38 banks outside New York City Basic reserve position 27 77 -11 110044 --1100 112288 43 40 2 109 LESS: 28 Borrowings at F R Banks .. 115544 111188 117766 227744 6644 115544 222277 110044 29 Net interbank Federal funds transactions 1100,,001188 11,304 10,927 11,484 10,429 11,511 13,402 10,806 9,867 EQUALS: Net surplus, or deficit (-): 30 Amount --1100,,009955 -11,433 -10,999 -11,768 -10,364 -11,622 -13,362 -11,031 -9,861 31 Per cent of average required reserves 99.6 114.3 109.1 118.3 102.8 116.2 133.0 110.9 96.1 Interbank Federal funds transactions Gross transactions: 32 17,066 17,704 17,308 17,466 16,677 18,012 19,029 17,763 17,409 33 Sales 7,049 6,400 6,381 5,982 6,249 6,500 5,627 6,958 7,542 34 Two-way transactions2 5,036 4,912 4,864 4,679 4,133 4,406 4,816 4,563 4,325 Net transactions: 35 Purchases of net buying banks... 12,030 12,792 12,443 12,787 12,545 13,606 14,213 1133,,220000 1133,,008844 36 Sales of net selling banks 2,012 1,489 1,517 1,303 2,116 2,094 811 2,394 3,218 Related transactions with U.S. Government securities dealers 37 Loans to dealers 3 991 1,504 953 834 866 856 22,,004422 994499 11,,115577 38 Borrowing from dealers4 1,007 720 653 970 1,431 750 574 414 2,036 39 -16 784 300 -136 -564 105 1,468 535 -878 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds A7 1.13 Continued 1978, week ending— Type Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 3 14 2 3 8 1 22 7 74 LESS: 41 Borrowings at F.R. Banks 7 113322 42 Net interbank Federal funds transactions 4,666 5,031 4,618 4,845 4,356 4,922 5,593 5,206 4,998 EQUALS: Net surplus, or deficit (-): 43 Amount --44,,667700 --55,,001177 --44,,661166 -4,842 --44,,334499 -4,921 -5,571 --55,,333311 --44,,992244 44 Per cent of average required reserves 300.4 327.9 296.4 322.6 280.0 315.5 353.5 352.4 325.8 Interbank Federal funds transactions Gross transactions: 45 Purchases 6,283 6,499 6,150 6,338 5,749 6,240 6,918 6,436 6,175 46 Sales...... 1,617 1,468 1,532 1,494 1,393 1,319 1,325 1,230 1,178 47 Two-way transactions2 1,617 1,468 1,533 1,494 1,392 1,318 1,325 1,229 1,178 Net transactions: 48 Purchases of net buying banks... 44,,666666 55,,003311 44,,661188 44,,884455 44,,335566 44,,992222 5,593 55,,220077 44,,999977 4499 Sales of net selling banks Related transactions with U.S. Government securities dealers 50 Loans to dealers3 188 335 223 188 173 253 247 103 166 51 Borrowing from dealers4 133 77 106 167 336 341 196 58 727 52 Net loans 55 258 117 22 -163 -88 51 45 -561 33 other banks Basic reserve position 53 Excess reserves1 74 -25 102 --1133 112200 4422 1188 -6 3355 LESS: 54 Borrowings at F R Banks 114477 111188 117766 222777444 6644 111555444 9944 110044 55 Net interbank Federal funds transactions 5,352 6,273 6,309 6,639 6,072 6,589 7,809 55,,660000 44,,887700 EQUALS: Net surplus, or deficit (-): 56 Amount -5,425 -6,416 -6,383 -6,926 -6,016 -6,701 -7,791 --55,,770000 --44,,993388 57 Per cent of average required reserves 63.2 75.7 74.9 82.0 70.6 7799..44 92.0 6677..66 5566..44 Interbank Federal funds transactions Gross transactions: 58 Purchases 10,783 11,205 11,157 11,128 10,929 11,771 12,111 1111,,332288 1111,,223344 59 Sales 5,431 4,932 4,848 4,488 4,856 5,182 4,302 5,728 6,364 60 Two-way transactions2 3,419 3,444 3,332 3,186 2,740 3,088 3,491 3,334 3,147 Net transactions: 61 Purchases of net buying banks... 7,364 7,761 7,825 7,942 8,188 8,684 8,620 77,,999944 88,,008877 62 Sales of net selling banks 2,012 1,489 1,517 1,303 2,116 2,094 811 2,394 3,218 Related transactions with U.S. Government securities dealers 63 Loans to dealers3 804 1,169 730 645 694 660033 11,,779955 884466 999911 64 874 643 547 803 1,094 409 378 356 1,308 65 -71 526 183 -158 -401 193 1,417 490 -317 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 Financial Statistics • October 1978 1.14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and previous levels Loans to member banks— LLLoooaaannnsss tttooo aaallllll ooottthhheeerrrsss Under Sec. 10(b)2 uuunnndddeeerrr SSSeeeccc... 111333,,, lllaaasssttt pppaaarrr...444 FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee UUnnddeerr SSeeeess.. 1133 aanndd 1133aa** BBBBaaaannnnkkkk Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 9/30/78 date rate 9/30/78 date rate 9/30/78 date rate 9/30/78 date rate Boston m 8/21/78 IVA 8 VA 8/21/78 IVA 83^ 8/21/78 814 1034 8/21/78 1014 New York m 8/21/78 IVA 8 VA 8/21/78 m 83/4 8/21/78 814 1034 8/21/78 IOI/4 Philadelphia m 8/21/78 7 VA 8 VA 8/21/78 IVA 834 8/21/78 814 1034 8/21/78 1014 Cleveland m 8/21/78 IVA 8 VA 8/21/78 7 VA 834 8/21/78 814 1034 8/21/78 1014 Richmond m 8/21/78 IVA 8 VA 8/21/78 IVA 834 8/21/78 814 1034 8/21/78 I01/4 Atlanta m 8/21/78 IVA 81/4 8/21/78 7VA 834 8/21/78 81/4 103/4 8/21/78 1014 Chicago m 8/21/78 IVA 8 VA 8/21/78 7VA 834 8/21/78 814 1034 8/21/78 1014 St. Louis m 8/21/78 IVA 8 VA 8/21/78 IVA 834 8/21/78 81/4 1034 8/21/78 1014 Minneapolis m 8/21/78 IVA 8 VA 8/21/78 IVA 834 8/21/78 814 1034 8/21/78 1014 Kansas City m 8/21/78 IVA 8 VA 8/21/78 IVA 834 8/21/78 814 1034 8/21/78 1014 Dallas m 8/21/78 IVA 8 VA 8/21/78 IVA 834 8/21/78 814 1034 8/21/78 1014 San Francisco.... m 8/21/78 IVA 8 VA 8/21/78 IVA 834 8/21/78 814 1034 8/21/78 1014 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. ss** In effect Dec. 31, 1970 55\\fftt 55ii//44 11997733——MMaayy 1 4 1 555333 555 444 VVV ---666 AAA 1976—Jan. 2 1 3 9 55555%%%%% 55555VVVVV -----66666 44444 55555 55555 %%%%% %%%%% 1971 _jan. 8 55555*****44444-----55555%%%%% 5555iiii4444 18 666 6 Nov. 22 555551111144444-----55555%%%%% 555551111144444 15 555551111144444 5555iiii4444 JJuunnee 11 666---666%%% 666%%% 26 555551111144444 555551111144444 2 2 1 9 2 9 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 ----- ----- 55555 55555 11111 11111 ///// 44444 44444 5 55555555 11114444 JJJ AAA uuu uuu lllyyy ggg ... 1 1 2 5 4 777 777 666 %%% ---777%%% 7 777 77 666 %%% %%% 1977—Aug. 3 3 1 0 5 5 5 5 5 5 5 5 1 1 1 1 1 1 1 1 4 4 4 4 4 4 4 4 - - - - - - - - 5 5 5 5 5 5 5 5 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 5555 55551111 3333 //// 4444 4444 Feb. 13 444433334444----5555 5 23 777%%% 777%%% Sept. 2 555533334444 555533334444 July 2 1 1 3 9 6 44443333//// 4444 55554444 3333 ---- 4444 5555 44 55 5 33 44 11997744——AApprr.. 2 3 5 0 77%% 88 --88 8 8 1978— O Ja c n t. . 26 9 6666 6666 ----6666%%%% 6666 666 %%% Nov 11 444444333333444444------555555 5 DDeecc.. 9 777333444---888 20 6666%%%% 666%%% 19 444444333333444444 434 16 777333444 May 11 6666%%%%----7777 777 Dec. 13 4 VA 12 7777 7 17 444444111111//////444444------444444333333444444 4% 11997755——JJaann.. 6 777777777111111111444444444---------777777777333333333444444444 July 3 77777-----777771111144444 777771111144444 24 444444 %%%%%% 4i/4 10 777777777111111111444444444---------777777777333333333444444444 10 7777711111/////44444 777771111144444 24 IIIIIIIIIVVVVVVVVVAAAAAAAAA 777777111111444444 Aug. 21 777773333344444 777773333344444 1973—Jan. 15 5 5 FFeebb.. 5 666666666333333333444444444---------777777777VVVVVVVVV444444444 666666333333444444 Sept. 22 88888 88888 Feb. 26 5555----5555%%%% 5555%%%% 7 666666666333333333444444444 666666333333444444 M Ap a r r . . 23 2 5555%%%% 5555VVVV ----5555 4444 3333 4444 5 5 5 5 5 5 5 5 VVVV 1111////4444 4444 MMaarr.. 1 1 4 0 666666666^^^^^^^^^ 666666666 --------- 111111111 666666666 444444444 333333333 444444444 666666 666666 111111 111111 444444 444444 IInn eeffffeecctt SSeepptt.. 3300,, 11997788...... 88 88 MMaayy 2 1 3 6 666666666---------666666666111111111444444444 666666 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, Annual Statistical Digest, 1971-75, and Annual Statistical Digest, 1972-76. 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 September 30, 1978 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 m 2/13/75 2 10 m 12/30/76 10 2/13/75 10-100 HV4 12/30/76 12 2/13/75 100-400 12*/4 12/30/76 13 2/13/75 Over 400 I6V4 12/30/76 2/13/75 Time:2-3 3 3/16/67 3/2/67 Other time: 0-5, maturing in— 30 179 days 3 3/16/67 m 3/2/67 42Vi 1/8/76 3 3/16/67 4 1 10/30/75 3 3/16/67 Over 5, maturing in— 30-179 days 6 12/12/74 5 10/1/70 4 2Vi 1/8/76 3 12/12/74 4 years or more 41 10/30/75 3 12/12/74 Legal limits, September 30, 1978 Minimum Maximum Net demand: Reserve city banks 10 22 Other banks 7 14 Time 3 10 1 For changes in reserve requirements beginning 1963, see Board's reserve cities and are permitted to maintain reserves at ratios set for banks Annual Statistical Digest, 1971-1975 and for prior changes, see Board's not in reserve cities. For details, see the Board's Regulation D. Annual Report for 1976, Table 13. (c) Effective August 24, 1978, the Regulation M reserve requirements 2 (a) Requirement schedules are graduated, and each deposit interval on net balances due from domestic banks to their foreign branches and applies to that part of the deposits of each bank. Demand deposits on deposits that foreign branches lend to U.S. residents were reduced to subject to reserve requirements are gross demand deposits minus cash zero from 4 per cent and 1 per cent, respectively. The Regulation D items in process of collection and demand balances due from domestic reserve requirement on borrowings from unrelated banks abroad was banks. also reduced to zero from 4 per cent. (b) The Federal Reserve Act specifies different ranges of requirements 3 Negotiable orders of withdrawal (NOW) accounts and time deposits for reserve city banks and for other banks. Reserve cities are designated such as Christmas and vacation club accounts are subject to the same under a criterion adopted effective Nov. 9, 1972, by which a bank having requirements as savings deposits. net demand deposits of more than $400 million is considered to have the 4 The average of reserves on savings and other time deposits must be character of business of a reserve city bank. The presence of the head at least 3 per cent, the minimum specified by law. office of such a bank constitutes designation of that place as a reserve city. Cities in which there are F.R. Banks or branches are also reserve NOTE.—Required reserves must be held in the form of deposits with cities. Any banks having net demand deposits of $400 million or less F.R. Banks or vault cash. are considered to have the character of business of banks outside of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • October 1978 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Per cent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect August 31, 1978 Previous maximum In effect August 31, 1978 Previous maximum Per cent Effective Per cent Effective Per cent Effective Per cent Effective date date date date 1 Savings 5 7/1/73 1/21/70 SV4 (7) 5 (8) 2 Negotiable orders of withdrawal accounts1 5 11//11//7744 ((1100)) 5 11//11//7744 ((1100)) 3 Money market time deposit of less than $100,0002 (9) ((99)) ((99)) (9) (9) ((99)) ((99)) (9) Other time (multiple- and singlematurity unless otherwise indicated) - 30-89 days: 4 5 M Sin u g lt l i e p - l m e- a m tu a r t i u ty r ity } 5 77//11//7733 / I 4 5 1 /4 99 11 // // 22 22 66 11 // // 66 77 66 00 }} ((1100)) ((1100)) 90 days to 1 year: 7 6 S M in u g lt l i e p -m le- a m tu a r t i u ty r ity } 5% 7/1/73 ' ( 7 9 / / 2 2 0 6/ / 6 6 6 6 } 45V4 (7) 5V4 1/21/70 1 8 0 9 i 2 1 y 2 t t o o to i 2 y 4 2 y e y y a e e r a a s r 4 r s s 4 4 } 6 7 7 / / 1 1 / / 7 7 3 3 J 1 5 5 5 V % V 4 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 } 61/4 ( ( 7 7 ) ) / 1 s ! y 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 11 4 to 6 years 5 mmm 111111///111///777333 OOO111))) mm 111111///111///777333 12 6 to 8 years5 mmm 111222///222333///777444 777111///444 11/1/73 7733//44 111222///222333///777444 mmm 11/1/73 13 8 years or more5 mmm 666///111///777888 (((111000))) 88 666///111///777888 (((111000))) 14 Governmental units (all maturities).. 888 666///111///777888 12/23/74 8 666///111///777888 mmm 12/23/74 15 Individual retirement accounts and Keogh (H.R. 10) plans* 8 6/1/78 m 7/6/77 8 6/1/78 m 7/6/77 1 For authorized States only. Federally insured commercial banks, savings and loan associations and mutual savings banks is V4 per cent savings and loan associations, cooperative banks, and mutual savings higher than the rate for commercial banks. The rates and effective dates banks were first permitted to offer negotiable orders of withdrawal for Sept. were: (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar institutions throughout New England on Feb. 27, 1976. Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 2 Must have a maturity of exactly 26 weeks and a minimum denomination of $10,000, and must be nonnegotiable. 3 For exceptions with respect to certain foreign time deposits see the 7.550 7.742 7.793 7.979 8.276 Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p. Thrifts 7.800 7.992 8.043 8.229 8.526 1094), and February 1968 (p. 167). 4 A minimum of $1,000 is required for savings and loan associations, except in areas where mutual savings banks permit lower minimum de- 10 No separate account category. nominations. This restriction was removed for deposits maturing in less n Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for than 1 year, effective Nov. 1, 1973. certificates maturing in 4 years or more with minimum denominations 5 $1,000 minimum except for deposits representing funds contributed of $1,000; however, the amount of such certificates that an institution to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es- could issue was limited to 5 per cent of its total time and savings deposits. tablished pursuant to the Internal Revenue Code. The $1,000 minimum Sales in excess of that amount, as well as certificates of less than $1,000, requirement was removed for such accounts in December 1975 and No- were limited to the 6Vi per cent ceiling on time deposits maturing in 2lA vember 1976, respectively. years or more. 6 3-year minimum maturity. Effective Nov. 1, 1973, the present ceilings were imposed on certificates i July 1, 1973, for mutual savings banks; July 6, 1973, for savings and maturing in 4 years or more with minimum denominations of $1,000. loan associations. There is no limitation on the amount of these certificates that banks can 8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and issue. loan associations. 9 Commercial banks, savings and loan associations, and mutual savings NOTE—Maximum rates that can be paid by Federally insured commerbanks were authorized to offer money market time deposits effective cial banks, mutual savings banks, and savings and loan associations are June 1, 1978. The ceiling rate for commercial banks is the discount rate established by the Board of Governors of the Federal Reserve System, on most recently issued 6-month U.S. Treasury bills. The ceiling rate for the Board of Directors of the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526, respectively. The maximum rates on time deposits in denominations of $100,000 or more were suspended in mid- 1973. For information regarding previous interest rate ceilings on all types of accounts, see earlier issues of the Federal Reserve BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report 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 1978 TTyyppee ooff ttrraannssaaccttiioonn 11997755 11997766 11997777 Feb. Mar. Apr. May June July Aug. U.S. GOVT. SECURITIES Outright transactions (excl. matched salepurchase transactions) Treasury bills: 1 Gross purchases 11111111,,,,555566662222 11114444,,,,333344443333 11113333,,,,777733338888 333777999 777744448888 1,670 444411116666 4,395 770011 997722 5555,,,,555599999999 8888,,,,444466662222 7777,,,,222244441111 111,,,999777444 55550000 777733337777 446666 668899 2222 6666,,,,444433331111 22225555,,,,000011117777 2222,,,,111133336666 111,,,111000000 33331111 333300000000 Others within 1 year:1 3333,,,,888888886666 444477772222 3333,,,,000011117777 222288888888 110000 55553333 113355 117711 ---444 792 444...444999999 -653 261 me r—2,343 -380 -241 — i,544 333,,,555444999 222...555000000 1 to 5 years: 222333,,,222888444 22223333,,,,222200002222 222,,,888333333 881133 223355 229900 663311 442244 111177777777 10 Exchange, or maturity shift 33,,885544 ----2222,,,,555588888888 --66,,664499 1,109 --226611 rr——113366 rr__ 7799 446677 241 --449900 5 to 10 years: 11 Gross purchases 11,,551100 1111,,,,000044448888 775588 337700 119911 110011 117766 223388 12 Gross sales 13 Exchange or maturity shift ---444,,,666999777 111,,,555777222 555888444 --990066 iii ,,,555222666 ---888777 111,,,444333444 Over 10 years: 14 Gross purchases 111,,,000777000 666444222 555555333 114477 114455 777444 111111555 111111333 15 Gross sales 16 Exchange or maturity shift 888884444488888 222222222255555 11111,,,,,555556666655555 444455550000 888899995555 666000000 All maturities:1 222222222211111,,,,,333331111133333 222221111199999,,,,,777770000077777 2222200000,,,,,888889999988888 333377779999 222,,,333666777 2,341 999933335555 5,451 770011 111,,,999111999 18 Gross sales 55555,,,,,555559999999999 88888,,,,,666663333399999 77777,,,,,222224444411111 1111,,,,999977774444 555000 777733337777 446666 666888999 19 Redemptions 2222299999,,,,,999998888800000 22222 55555,,,,,000001111177777 44444,,,,,666663333366666 1111,,,,111100000000 333111 333300000000 Matched sale-purchase transactions 111115555511111,,,,,222220000055555 111119999966666,,,,,000007777788888 444442222255555,,,,,222221111144444 44440000,,,,111122228888 444444,,,999777666 42,262 44440000,,,,666633334444 5522,,554444 44,657 29,162 21 Gross purchases 111115555522222,,,,,111113333322222 111119999966666,,,,,555557777799999 444442222233333,,,,,888884444411111 44444444,,,,222277770000 444444,,,111222999 42,799 44440000,,,,333366662222 5522,,555577 44,712 29,641 Repurchase agreements 111114444400000,,,,,333331111111111 222223333322222.....888889999911111 111117777788888.....666668888833333 11116666,,,,000055557777 111333,,,111555555 8,044 11111111,,,,555511117777 1144,,995566 15,822 16,286 111113333399999,,,,,555553333388888 222223333300000,,,,,333335555555555 111118888800000,,,,,555553333355555 11116666,,,,000055557777 111111,,,444666888 8,999 11111111,,,,888811119999 1133,,110000 17,374 15,140 24 Net change in U.S. Government securities... 1111,,,,444444447777 333,,,111222777 1,923 ----666677774444 -1,261 2,854 FEDERAL AGENCY OBLIGATIONS 77777,,,,,444443333344444 99999,,,,,000008888877777 55555,,,,,777779999988888 77,,332200 Outright transactions: 25 Gross purchases 26 Gross sales 111777333 27 Redemptions 11111,,,,,666662222111114444666666666 888881111999996666111119999 11111,,,,,444442222333332222333333333 2222 5533 3344 3322008811 44 111333 Repurchase agreements: 11115555,,,,111177779999 11110000,,,,555522220000 11113333,,,,888811111111 11,,996666 22,,663388 1,282 33,,992277 33,,442211 55,,117700 333,,,000888000 11115555,,,,555566666666 11110000,,,,333366660000 11113333,,,,666633338888 11,,996666 22,,337744 1,410 44,,003377 33,,008888 55,,445577 333,,,000333222 BANKERS ACCEPTANCES 30 Outright transactions, net 111166663333 ----555544445555 ----111199996666 31 Repurchase agreements, net ----33335555 444411110000 111155559999 777700 --448800 --1177 774477 --775533 2288 32 Net change in total System Account 8888,,,,555533339999 9999,,,,888833333333 7777,,,,111144443333 1,425 44,,110077 11,,331155 --883344 88,,667733 --22,,330055 22,,774444 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): 1975, 3,549; 1976, none; Sept. 1977, 2,500. NOTE.—Sales, redemptions, and negative figures reduce holdings of 2 In 1975, the System obtained $421 million of 2-year Treasury notes the System Open Market Account; all other figures increase such holdings. in exchange for maturing bills. In 1976 there was a similar transaction Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics • October 1978 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month Account 1978 1978 Aug. 30 Sept. 6 Sept. 13 Sept. 20*> Sept. 21 p July Aug. Sept.*3 Consolidated condition statement ASSETS 1 Gold certificate account 11,680 11,679 11,668 11,668 11,668 11,693 11,679 11,668 2 Special Drawing Rights certificate account 1,300 1,300 1,300 1,300 1,300 1,250 1,300 1,300 3 277 267 267 276 279 276 283 292 Loans: 4 Member bank borrowings 1,310 785 566 2,032 11,,115577 11,,112277 954 1,363 S Other Acceptances: 6 7 444499 2233 775533 226688 229966 771155 Federal agency obligations: 8 7,978 7,972 7,950 7,950 7,950 8,164 7,978 7,950 9 889966 4466 11,,118888 7711 111199 664477 U.S. Government securities Bought outright: 10 Bills 45,075 41,450 43,342 45,099 4477,,778833 44,370 4455,,113333 4477,,555511 11 1? Other 13 Notes 53,229 53,229 53,229 53,229 53,859 52,997 53,229 53,859 14 11,496 11,496 11,496 11,496 11,617 10,782 11,496 11,617 15 Total 1 109,800 106,175 108,067 109,824 113,259 108,149 109,858 113,027 16 2,503 908 3,104 736 1,881 2,252 17 112,303 106,175 108,975 109,824 116,363 108,885 111,739 115,279 18 122,936 114,932 117,560 119,806 127,411 118,515 121,086 125,954 19 11,990 11,061 13,116 13,905 11,997 9,466 10,728 9,320 20 392 394 393 394 396 389 392 394 Other assets: 21 18 18 17 43 20 67 18 20 22 All other 1,604 3,535 2,006 1,924 1,914 2,446 1,653 2,025 23 150,197 143,186 146,327 149,316 154,985 144,102 147,139 150,973 LIABILITIES 24 96,553 97,490 97,574 9977,,004400 9966,,886677 95,571 9966,,553344 96,572 Deposits: 25 29,957 24,762 29,441 26,487 32,789 28,461 27,705 26,656 26 U.S. Treasury—General account 12,162 7,414 7,880 12,997 13,543 10,331 12,068 16,647 27 235 301 285 337 253 347 309 325 28 Other2 631 1,566 592 660 559 771 691 628 29 42,985 34,043 38,198 40,481 47,144 39,910 40,773 44,256 30 Deferred availability cash items. 6,238 8,009 6,736 7,124 6,662 4,374 5,503 5,773 31 1,639 1,396 1,430 2,126 1,689 1,469 1,541 1,700 32 Total liabilities 147,415 140,938 143,938 146,771 152,362 141,324 144,351 148,301 CAPITAL ACCOUNTS 33 1,059 1,059 1,060 1,059 1,062 1,057 1,058 1,061 34 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 35 Other capital accounts 694 160 300 457 532 692 701 582 36 150,197 143,186 146,327 149,316 154,985 144,102 147,139 150,973 37 MEMO: Marketable U.S. Govt, securities held in custody for foreign and intl. account 85,717 85,463 85,265 85,468 85,412 86,620 85,731 86,450 Federal Reserve note statement 38 F.R. notes outstanding (issued to Bank) 108,520 108,782 108,995 109,223 109,572 107,558 108,625 110099,,559900 Collateral held against notes outstanding: 39 Gold certificate account 11,680 11,679 11,668 11,668 11,668 11,693 11,679 11,668 40 Special Drawing Rights certificate account.... 1,300 1,300 1,300 1,300 1,300 1,250 1,300 1,300 41 1,117 732 525 1,627 1,067 1,056 886 1,137 42 94,423 95,071 95,502 94,628 95,537 93,559 94,760 95,485 43 Total collateral 108,520 108,782 108,995 109,223 109,572 107,558 108,625 109,590 l Includes securities loaned—fully guaranteed by U.S. Govt, securities 2 includes certain deposits of domestic nonmember banks and foreignpledged with F.R. Banks—and excludes (if any) securities sold and owned banking institutions voluntarily held with member banks and scheduled to be bought back under matched sale-purchase transactions. redeposited in full with F.R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks A13 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy 1978 1978 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 July 31 Aug. 31 Sept. 30 1,310 785 555566665555 2,032 1,157 1,132 953 1,363 2 Within 15 days 1,272 660 444411113333 1,994 1,115 1,055 892 1,288 3 16 days to 90 days 38 125 111111113333 38 42 77 61 75 4 91 days to 1 year 33339999 5 Acceptances 444444999 22223333 777555333 222666888 222999666 777111555 6 Within 15 days 444444999 22223333 777555333 222666888 222999666 777111555 7 16 days to 90 days 8 91 days to 1 year 9 U.S. Government securities 112,303 106,175 108,975 109,824 116,363 108,885 111,739 115,279 10 Within 15 days i 6,404 4,728 5,484 3,730 8,008 6,094 4,086 5,150 11 16 days to 90 days 22,059 17,722 21,079 22,833 23,444 19,449 22,058 25,203 12 91 days to 1 year 29,458 29,538 28,225 29,074 30,142 31,475 31,408 30,157 13 Over 1 year to 5 years 31,154 30,959 30,959 30,959 31,309 31,025 30,959 31,309 14 Over 5 years to 10 years 13,521 13,521 13,521 13,521 13,632 11,849 13,521 13,632 9,707 9,707 9,707 9,707 9,828 8,993 9,707 9,828 16 Federal agency obligations 8,874 7,972 7,996 7,950 9,138 8,235 8,097 8,597 17 Within 15 days i 1,041 97 46 54 1,242 114 264 701 18 16 days to 90 days 258 320 394 340 340 299 258 340 19 91 days to 1 year 1,479 1,459 1,467 1,467 1,467 1,495 1,479 1,467 20 Over 1 year to 5 years 3,594 3,594 3,619 3,619 3,619 3,825 3,594 3,619 21 Over 5 years to 10 years 1,641 1,641 1,609 1,609 1,609 1,631 1,641 1,609 22 Over 10 years 861 861 861 861 861 871 861 861 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, turnover as ratio of debits to deposit. Monthly data are at annual rates. 1978 BBaannkk ggrroouupp,, oorr ttyyppee 11997755 11997766 11997777 ooff ccuussttoommeerr Apr.r Mayr Juner July Aug. Debits to demand deposits 2 (seasonally adjusted) 1111 AAAAllllllll ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 25,028.5 29,180.4 34,322.8 39,113.7 39,590.0 41,538.5 40,575.1 42.722.1 2222 MMMMaaaajjjjoooorrrr NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy bbbbaaaannnnkkkkssss........ 9,670.7 11,467.2 13,860.6 15,128.0 14,774.6 15,976.0 15,355.3 16,432.9 3333 OOOOtttthhhheeeerrrr bbbbaaaannnnkkkkssss 15,357.8 17,713.2 20,462.2 23,985.7 24,815.4 25,562.5 25,219.7 26.289.2 Debits to savings deposits 3 (not seasonally adjusted) 4444 AAAAllllllll ccccuuuussssttttoooommmmeeeerrrrssss 117744..00 442255..55 339988..11 444444..00 443322..11 443333..00 5555 BBBBuuuussssiiiinnnneeeessssssss 1111 2211..77 4499..55 5511..99 6611..55 5555..66 5577..66 6666 OOOOtttthhhheeeerrrrssss 115522..33 337766..00 334466..11 338822..66 337766..55 337755..44 Demand deposit turnover 2 (seasonally adjusted) 77777 AAAAAllllllllll cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 105.3 116.8 129.2 137.6 139.4 144.4 139.0 146.2 88888 MMMMMaaaaajjjjjooooorrrrr NNNNNeeeeewwwww YYYYYooooorrrrrkkkkk CCCCCiiiiitttttyyyyy bbbbbaaaaannnnnkkkkksssss.......... 356.9 411.6 503.0 547.9 555.3 596.0 553.0 577.5 99999 OOOOOttttthhhhheeeeerrrrr bbbbbaaaaannnnnkkkkksssss 72.9 79.8 85.9 93.5 96.4 98.0 95.5 99.7 Savings deposit turnover 3 (not seasonally adjusted) 1111100000 AAAAAllllllllll cccccuuuuussssstttttooooommmmmeeeeerrrrrsssss 11..66 11..99 11..88 22..00 22..00 22..00 1111111111 BBBBBuuuuusssssiiiiinnnnneeeeessssssssss 11111 44..11 44..66 44..77 55..55 55..11 55..22 1111122222 OOOOOttttthhhhheeeeerrrrrsssss 11..55 11..88 11..66 11..88 11..88 11..88 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 Financial Statistics • October 1978 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1978 11997744 11997755 11997766 11997777 DDeecc.. DDeecc..rr DDeecc..rr DDeecc..rr IIIttteeemmm Mar.r Apr.r May r Juner July Aug. Seasonally adjusted MEASURES i 1 M-l 282.9 295.2 313.5 338.5 342.9 348.5 350.6 352.8 354.2 356.7 2 M-2 612.2 664.7 740.5 809.5 822.6 830.3 835.2 840.6 846.2 853.5 3 M-3 981.2 1,092.5 1,236.5 1,376.1 1,400.3 1,411.4 1,419.9 1,429.8 1,440.9 1,455.1 4 M-4 701.2 746.1 803.2 883.5 904.7 913.7 922.2 927.3 933.6 939.8 5 M-5 1,070.3 1,173.8 1,299.2 1,450.1 1,482.3 1,494.9 1,506.9 1,516.5 1,528.3 1,541.4 COMPONENTS 6 Currency 67.8 73.7 80.7 88.6 90.7 91.2 92.1 92.8 93.3 94.0 Commercial bank deposits: 7 Demand 215.1 221.5 232.8 249.9 252.3 257.3 258.5 259.9 260.9 262.8 8 Time and savings 418.3 450.9 489.7 545.0 561.7 565.2 571.6 574.5 579.4 583.0 9 Negotiable CD's2 89.0 81.3 62.7 74.0 82.0 83.4 87.1 86.7 87.4 86.3 10 Other 329.3 369.6 427.0 471.0 479.7 481.8 484.5 487.8 492.0 496.7 11 Nonbank thrift institutions 3 369.1 427.8 496.0 566.6 577.7 581.2 584.7 589.2 594.7 601.6 Not seasonally adjusted MEASURES i 12 M-l 291.3 303.9 322.6 348.2 338.2 350.9 345.3 351.7 356.0 354.2 13 M-2 617.5 670.0 745.8 814.9 821.1 836.6 833.6 842.0 848.7 850.8 14 M-3 983.8 1,095.0 1,238.4 1,377.5 1,400.2 1,421.2 1,420.3 1,435.2 1,447.9 1,453.1 15 M-4 708.0 753.5 810.0 890.9 901.4 917.9 918.2 928.3 936.0 938.8 16 M-5 1,074.3 1,178.4 1,320.7 1,453.4 1,480.5 1,502.6 1,505.0 1,521.5 1,535.2 1,541.1 COMPONENTS 17 Currency 69.0 75.1 82.1 90.1 89.9 91.0 91.9 92.9 94.1 94.3 Commercial bank deposits: 18 Demand 222.2 228.8 240.5 258.1 248.2 259.9 253.3 258.8 262.0 259.9 19 Member 159.7 162.8 169.4 177.5 170.0 177.3 172.6 175.7 177.7 176.1 20 Domestic nonmember 58.5 62.6 67.5 76.2 74.3 78.5 76.9 79.1 80.3 79.9 21 Time and savings 416.7 449.6 487.4 542.6 563.6 567.1 572.9 576.6 579.9 584.6 22 Negotiable CD's 2 90.5 83.5 64.3 75.9 80.2 81.4 84.6 86.3 87.3 88.0 23 Other 326.3 366.2 423.1 466.7 483.0 485.7 488.3 490.3 492.6 496.6 24 Nonbank thrift institutions 3 366.3 424.9 492.7 562.5 579.1 584.6 586.7 593.2 599.2 602.2 25 U.S. Government deposits (all commercial banks) 4.9 4.1 4.4 5.1 4.8 5.0 4.0 6.2 4.5 3.6 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 Latest monthly and weekly figures are available from the Board's 508 banks other than domestic interbank and U.S. Govt., less cash items in (H.6) release. Back data are available from the Banking Section, Division process of collection and F.R. float; (2) foreign demand balances at F.R. of Research and Statistics. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults 2 Negotiable time CD's issued in denominations of $100,000 or more of commercial banks. by large weekly reporting commercial banks. M-2: M-l plus savings deposits, time deposits open account, and time 3 Average of the beginning- and end-of-month figures for deposits of certificates of deposit (CD's) other than negotiable CD's of $100,000 or mutual savings banks, for savings capital at savings and loan associations, more at large weekly reporting banks. and for credit union shares. M-3: M-2 plus the average of the beginning- and end-of-month deposits of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). NOTES TO TABLE 1.23: 1 Adjusted to exclude domestic commercial interbank loans. of one large bank. Reductions in other items were: "Total loans," $1.0 2 Loans sold are those sold outright to a bank's own foreign branches, billion (of which $0.6 billion was in "Commercial and industrial loans"), nonconsolidated nonbank affiliates of the bank, the bank's holding and "Other securities," $0.5 billion. In late November "Commercial and company (if not a bank), and nonconsolidated nonbank subsidiaries of industrial loans" were increased by $0.1 billion as a result of loan rethe holding company. Prior to Aug. 28, 1974, the institutions included classifications at another large bank. had been defined somewhat differently, and the reporting panel of banks 4 Reclassification of loans reduced these loans by about $1.2 billion was also different. On the new basis, both "Total loans" and "Com- as of Mar. 31, 1976. mercial and industrial loans" were reduced by about $100 million. 5 Reclassification of loans at one large bank reduced these loans by 3 Data beginning June 30, 1974, include one large mutual savings about $200 million as of Dec. 31, 1977. bank that merged with a nonmember commercial bank. As of that date there were increases of about $500 million in loans, $100 million in NOTE.—Data are for last Wednesday of month except for June 30 "Other" securities, and $600 million in "Total loans and investments." and Dec. 31; data are partly or wholly estimated except when June 30 As of Oct. 31, 1974, "Total loans and investments" of all commercial and Dec. 31 are call dates. banks were reduced by $1.5 billion in connection with the liquidation 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 1977 1978 Item 1974 1975 1976 Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted 1 Reserves1 36.57 34.68 34.93 36.14 36.61 36.93 36.67 36.95 37.26 37.73 38.19 37.91 2 Nonborrowed 35.84 34.55 34.89 35.57 36.12 36.52 36.34 36.39 36.05 36.63 36.88 36.77 3 Required 36.31 34.42 34.29 35.95 36.34 36.69 36.47 36.80 37.04 37.55 38.00 37.74 4 Deposits subject to reserve requirements2. . 486.1 504.6 528.9 569.1 575.8 577.9 582.1 586.0 592.0 595.6 600.3 600.9 5 Time and savings 322.1 337.1 354.3 387.0 390.5 395.4 399.2 400.7 406.0 407.1 410.5 411.4 Demand : 6 Private 160.6 164.5 171.4 178.5 182.1 179.5 179.6 182.0 183.5 184.6 186.1 186.3 7 U.S. Government 3.3 2.9 3.2 3.6 3.1 3.0 3.4 3.3 2.6 3.9 3.7 3.3 Not seasonally adjusted 8 Deposits subject to reserve requirements2.. 491.8 510.9 534.8 575.3 581.3 572.5 579.4 588.6 588.3 596.8 600.6 599.0 9 Time and savings 321.7 337.2 353.6 386.4 390.3 393.2 399.3 401.2 406.1 408.6 411.1 412.8 Demand: 10 Private 166.6 170.7 177.9 185.1 187.9 176.1 176.6 183.8 179.3 183.7 186.4 183.7 11 U.S. Government 3.4 3.1 3.3 3.8 3.1 3.1 3.5 3.6 2.9 4.5 3.2 2.5 1 Series reflects actual reserve requirement percentages with no adjust- 2 Includes total time and savings deposits and net demand deposits as ment to eliminate the effect of changes in Regulations D and M. There defined by Regulation D. Private demand deposits include all demand are breaks in series because of changes in reserve requirements effective deposits except those due to the U.S. Govt., less cash items in process of Dec. 12, 1974; Feb. 13, May 22, and Oct. 30,1975; Jan. 8, and Dec. 30,1976. collection and demand balances due from domestic commercial banks. In addition, effective Jan. 1, 1976, statewide branching in New York was instituted. The subsequent merger of a number of banks raised NOTE.—Back data and estimates of the impact on required reserves required reserves because of higher reserve requirements on aggregate and changes in reserve requirements are shown in Table 14 of the Board's deposits at these banks. Annual Statistical Digest, 1971-1975. 1.23 LOANS AND INVESTMENTS All Commercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 1978 11997744 11997755 11997766 11997777 DDeecc.. 3311 DDeecc.. 3311 DDeecc.. 3311 DDeecc.. 3311 CCCaaattteeegggooorrryyy 33 Apr. 26 May 31 June 30 July 26 Aug. 30 Sept. 27 V V V V V V Seasonally adjusted 1 Loans and investments1 690.4 721.1 784.4 870.6 906.0 917.9 922.4 935.2 939.2 947.1 2 Including loans sold outright2 695.2 725.5 788.2 875.5 910.5 922.3 926.9 939.8 943.9 951.7 Loans: 3 Total 500.2 496.9 538.9 617.0 646.3 657.9 661.2 672.0 677.2 684.4 4 Including loans sold outright2 505.0 501.3 542.7 621.9 650.8 662.3 665.7 676.6 681.9 689.0 5 Commercial and industrial 183.3 176.0 4179.5 5201.4 213.3 219.2 220.4 222.3 224.4 226.3 6 Including loans sold outright2 186.0 178.5 4181.9 5204.2 215.6 221.5 222.6 224.6 226.9 228.7 Investments: 7 U.S. Treasury 50.4 79.4 97.3 95.6 97.6 97.1 98.4 99.7 97.0 96.3 8 Other 139.8 144.8 148.2 158.0 162.1 162.9 162.8 163.5 165.0 166.4 Not seasonally adjusted 9 Loans and investments1 705.6 737.0 801.6 888.9 904.9 917.0 928.9 931.1 936.6 946.1 10 Including loans sold outright2... 710.4 741.4 805.4 893.8 909.4 921.4 933.3 935.7 941.3 950.8 Loans: 11 Total1 510.7 507.4 550.2 629.9 642.3 657.1 669.2 672.6 678.0 685.8 12 Including loans sold outright2. 515.5 511.8 554.0 634.8 646.8 661.5 673.7 677.1 682.7 690.5 13 Commercial and industrial 186.8 179.3 4182.9 5205.0 213.8 219.2 223.0 222.4 223.3 225.6 14 Including loans sold outright2, 189.5 181.8 4185.3 5207.8 216.1 221.5 225.2 224.7 225.8 228.0 Investments: 15 U.S. Treasury 54.5 84.1 102.5 100.2 99.6 96.6 96.1 95.2 93.9 94.1 16 Other 140.5 145.5 148.9 158.8 163.1 163.4 163.6 163.4 164.7 166.2 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • October 1978 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1976 1977 19783 Account Dec. Dec. Jan." Feb." Mar." Apr." May." June? July" Aug." Sept." All commercial 1 Loans and investments 846.4 939.1 921.6 926.0 936.0 947.7 967.4 966.8 972.1 977.0 987.7 2 Loans, gross 594.9 680.1 664.9 668.0 677.8 685.0 707.4 707.8 713.5 718.4 727.4 Investments: 3 U.S. Treasury securities 102.5 100.2 97.9 99.6 98.6 99.6 96.6 95.9 95.2 93.9 94.1 4 Other 148.9 158.8 158.8 158.5 159.6 163.1 163.4 163.2 163.4 164.7 166.2 5 136.1 168.7 126.9 145.2 131.5 134.1 162.7 142.6 131.8 139.9 143.6 6 Currency and coin 12.1 13.9 14.0 13.8 14.3 14.1 14.3 14.6 14.6 15.0 15.0 7 Reserves with F.R. Banks 26.1 29.3 26.6 31.0 30.2 27.6 30.3 30.8 23.6 29.7 32.6 8 Balances with banks 49.6 59.0 42.4 46.9 44.1 44.7 53.3 45.5 46.3 44.9 46.4 9 Cash items in process of collection.. 48.4 66.4 43.9 53.5 43.0 47.6 64.7 51.6 47.3 50.3 49.6 10 Total assets/total liabilities and capital i 1,030.7 1,166.0 1,113.7 1,136.4 1,136.7 1,151.2 1,199.5 1,177.3 1,170.4 1,184.5 1,200.6 11 Deposits 838.2 939.4 883.6 899.7 896.2 910.3 946.1 926.2 924.0 929.8 941.1 Demand: 12 Interbank 45.4 51.7 37.1 42.6 37.4 38.8 50.7 40.5 40.2 40.1 41.6 13 U.S. Government 3.0 7.3 4.5 5.8 4.8 6.1 3.2 7.1 4.2 2.7 10.7 14 Other 288.4 323.9 284.2 288.6 280.2 292.0 310.6 294.9 293.2 295.8 294.2 Time: 15 Interbank 9.2 9.8 9.1 8.7 9.0 9.0 9.4 9.8 10.2 10.6 11.5 16 Other 492.2 546.6 548.8 554.0 564.8 564.4 572.2 573.9 576.2 580.6 583.1 17 Borrowings 80.2 96.2 99.9 103.7 105.7 104.5 111.4 109.0 102.3 108.2 111.9 18 Total capital accounts2 78.1 85.8 82.4 82.8 83.3 83.7 84.6 84.7 85.4 85.9 87.1 19 MEMO: Number of banks 14,671 14,707 14,703 14,682 14,689 14,697 14,702 14,701 14,713 14,721 14,721 Member 20 620.5 675.5 659.5 661.8 668.6 676.8 693.8 691.5 695.8 698.9 706.9 21 Loans, gross 442.9 494.9 481.8 483.1 490.5 495.3 514.3 512.8 517.7 520.3 527.0 Investments: 22 U.S. Treasury securities 74.6 70.4 67.7 69.2 68.2 68.8 66.9 66.2 65.7 65.3 65.4 23 Other 103.1 110.1 110.0 109.5 109.9 112.7 112.7 112.5 112.5 113.3 114.5 24 Cash assets, total 108.9 134.4 102.2 117.2 104.8 106.5 130.7 114.6 104.2 111.6 115.4 25 Currency and coin 9.1 10.4 10.4 10.2 10.6 10.5 10.6 10.8 10.8 11.1 11.1 26 Reserves with F.R. Banks 26.0 29.3 26.6 31.0 30.2 27.6 30.3 30.8 23.6 29.7 32.6 27 Balances with banks 27.4 30.8 23.0 24.6 22.9 22.7 28.1 23.6 24.3 22.9 24.0 28 Cash items in process of collection.. 46.5 63.9 42.2 51.4 41.2 45.7 61.7 49.4 45.4 48.0 47.7 29 Total assets/total liabilities and capital i 772.9 861.8 818.0 835.3 833.2 843.3 884.7 864.5 857.3 868.9 882.2 30 618.7 683.5 636.8 649.2 645.1 655.1 686.7 668.4 666.1 670.5 679.6 Demand: 31 42.4 48.0 34.4 39.5 34.7 36.0 47.5 37.7 37.3 37.2 38.6 32 U.S. Government 2.1 5.4 3.4 4.4 3.7 4.5 2.2 5.1 3.1 1.9 8.1 33 Other 215.5 239.4 208.4 211.8 205.1 213.4 229.1 216.2 214.6 217.0 215.6 Time: 34 Interbank 7.2 7.8 7.1 6.7 7.0 6.9 7.3 7.7 8.2 8.6 9.4 35 Other 351.5 382.9 383.5 386.9 394.7 394.3 400.5 401.7 402.9 405.9 407.8 36 Borrowings 71.7 84.9 88.0 90.8 91.8 91.1 96.9 94.2 88.0 93.9 97.2 37 Total capital accounts2 58.6 63.7 61.8 62.1 62.4 62.7 63.3 63.4 64.0 64.3 65.1 38 5,759 5,669 5,659 5,659 5,654 5,645 5,638 5,611 5,613 5,610 5,610 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 1976 1977 1976 1977 Account June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 Total insured National (all insured) 1 Loans and investments, gross 773,701 827,696 885544,,773344 914,783 443,959 476,610 488,240 552233,,000000 Loans: 2 Gross 539,021 578,734 601,122 657,513 315,628 340,691 351,311 384,722 3 Net 520,976 560,076 558811,,114433 636,323 305,280 329,971 333399,,995555 337722,,770022 Investments: 4 U.S. Treasury securities 90,947 101,461 100,568 99,333 49,688 55,727 53,345 52,244 5 Other 143,731 147,500 153,053 157.937 78,642 80,191 83,583 86,033 6 Cash assets 124,072 129,562 130,726 159,264 75,488 76,072 74,641 92,050 7 Total assets/total liabilities1 942,519 1,003,969 1,040,945 1,129,711 548,702 583,304 599,743 651,360 8 776,957 825,003 884477,,337722 992222,,666644 444,251 469,377 476,381 520,167 Demand: 9 4,622 3,022 2,817 7,310 2,858 1,676 1,632 4,172 10 37,502 44,064 44,965 49,849 20,329 23,149 22,876 25,646 11 Other 265,671 285,200 284,544 319,873 152,383 163,346 161,358 181,821 Time: 12 Interbank 9,406 8,248 7,721 8,731 5,532 4,907 4,599 5,730 13 Other 459,753 484,467 507,324 536,899 263,147 276,296 285,915 302,795 14 63,828 75,291 81,137 89,332 45,187 54,421 57,283 63,218 15 Total capital accounts 68,988 72,061 75,503 79,084 39,501 41,319 43,142 44,994 16 MEMO: Number of banks 14,373 14,397 14,425 14,397 4,747 4,735 4,701 4,654 State member (all insured) Insured nonmember 17 136,915 144,000 144,597 152,518 192,825 207,085 221,896 239,265 Loans: 18 98,889 102,277 102,117 110,247 124,503 135,766 147,694 162,543 19 Net 96,037 99,474 99,173 107,210 119,658 130,630 142,015 156,411 Investments: 20 U.S. Treasury securities 16,323 18,849 19,296 18,179 24,934 26,884 27,926 28,909 21 Other 21,702 22,874 23,183 24,091 43,387 44,434 46,275 47,812 22 30,422 32,859 35,918 42,305 18,161 20,631 20,166 24,908 23 179,649 189,578 195,452 210,441 214,167 231,086 245,749 267,910 24 142,061 149,491 152,472 163 443 190,644 206,134 218,519 239,053 Demand: 25 869 429 371 1,241 894 917 813 1,896 26 15,833 19,295 20,568 22,353 1,339 1,619 1,520 1,849 27 49,659 52,204 52,570 57,605 63,629 69,648 70,615 80,445 Time: 28 3,074 2,384 2,134 2,026 799 956 988 973 29 72,624 75,178 76,827 80,216 123,980 132,993 144,581 153,887 30 15,300 17,310 19,697 21,729 3,339 3,559 4,155 4,384 31 12,791 13,199 13,441 14,184 16,696 17,542 18,919 19,905 32 1,029 1,023 1,019 1,014 8,597 8,639 8,705 8,729 Noninsured nonmember Total nonmember 33 15,905 18,819 22,940 24,415 208,730 225,904 244,837 263,681 Loans: 34 13,209 16,336 20,865 22,686 137,712 152,103 168,559 185,230 35 13,092 16,209 20,679 22,484 132,751 146,840 162,694 178,896 Investments: 36 U.S. Treasury securities 472 1,054 993 879 25,407 27,938 28,919 29,788 37 2,223 1,428 1,081 849 45,610 45,863 47,357 48,662 38 4,362 6,496 8,330 9,458 22,524 27,127 28,496 34,367 39 21,271 26,790 33,390 36,433 235,439 257,877 279,139 304,343 40 11,735 13,325 14,658 16,844 202,380 219,460 233,177 255,898 Demand: 41 4 4 8 10 899 921 822 1,907 42 1,006 1,277 1,504 1,868 2,346 2,896 3,025 3,718 4433 2,555 3,236 3,588 4,073 66,184 72,884 74,203 84,518 Time: 44 1,292 1,041 1,164 1,089 2,092 1,997 2,152 2,063 45 6,876 7,766 8,392 9,802 130,857 140,760 152,974 163,690 46 3,372 4,842 7,056 6,908 6,711 8,401 11,212 11,293 47 Total capital accounts 663 818 893 917 17,359 18,360 19,812 20,823 48 270 275 293 310 8,867 8,914 8,998 9,039 i Includes items not shown separately. For Note see Table 1.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • October 1978 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, March 31, 1978 Millions of dollars, except for number of banks. Member banks1 Insured Asset account commercial Large banks banks Total All other New York City of Other City Chicago large 1 Cash bank balances, items in process 148,275 126,359 40,297 4,853 44,741 36,468 2 Currency and coin 11,654 8,556 922 183 2,734 4,718 3 Reserves with F.R. Banks 29,373 29,373 5,021 1,338 11,935 11,079 4 Demand balances with banks in United States. 35,658 22,002 10,601 95 2,928 8,377 5 Other balances with banks in United States. . . 5,250 2,914 584 5 726 1,598 6 Balances with banks in foreign countries 4,235 3,713 582 327 1,819 985 7 Cash items in process of collection 62,105 59,801 22,588 2,904 24,599 9,710 8 Total securities held—Book value 256,200 177,684 20,044 8,012 57,309 92,319 9 U.S. Treasury 98,358 68,855 9,874 3,223 22,426 33,333 10 Other U.S. Government agencies 37,712 24,043 1,767 976 6,868 14,432 11 States and political subdivisions 113,825 80,789 8,027 3,616 26,803 42,344 12 All other securities 6,202 3,923 376 197 1,192 2,157 13 Unclassified total 103 74 20 54 14 Trading-account securities 5,922 745 2,143 867 2,487 248 15 U.S. Treasury 3,358 338 1,361 659 1,245 72 16 Other U.S. Government agencies 981 974 365 65 496 48 17 States and political subdivisions 998 983 285 96 529 73 18 All other trading account securities 482 377 132 47 197 1 19 Unclassified 103 74 20 54 20 Bank investment portfolios 250,278 171,939 17,901 7,145 54,822 92,071 21 U.S. Treasury 94,999 65,518 8,513 2,564 21,180 33,261 22 Other U.S. Government agencies 36,731 23,069 1,402 911 6,372 14,384 23 States and political subdivisions 112,827 79,807 7,742 3,520 26,274 42,270 24 All other portfolio securities 5,720 3,546 244 150 996 2,156 25 F.R. stock and corporate stock 1,624 1,373 307 107 488 471 26 Federal funds sold and securities resale agreement 45,780 35,129 3,622 1,931 17,552 12,024 27 Commercial banks 38,829 28,401 2,139 1,587 13,391 11,284 28 Brokers and dealers 4,315 4,168 1,151 269 2,166 581 29 Others 2,636 2,560 332 75 1,995 158 30 Other loans, gross 616,444 459,958 72,630 24,555 173,551 189,222 31 LESS: Unearned income on loans 14,864 9,980 586 96 3,243 6,054 32 Reserves for loan loss 6,904 5,471 1,233 321 2,070 1,846 33 Other loans, net 594,676 444,507 70,811 24,137 168,237 181,322 Other loans, gross, by category 34 Real estate loans 182,790 125,708 9,472 2,463 46,667 67,105 35 Construction and land development 21,562 16,178 2,253 505 7,951 5,470 36 Secured by farmland 7,919 3,453 21 8 381 3,042 37 Secured by residential properties 104,315 73,123 4,769 1,344 27,459 39,552 38 1- to 4-family residences 99,365 69,561 4,203 1,244 26,163 37,951 39 FHA-insured or VA-guaranteed 7,612 6,613 547 45 3,581 2,440 40 Conventional 91,754 62,948 3,655 1,199 22,582 35,511 41 Multifamily residences 4,950 3,562 566 100 1,296 1,600 42 FHA-insured 387 325 129 25 84 86 43 Conventional 4,562 3,237 437 74 1,212 1,514 44 Secured by other properties 48,994 32,953 2,430 607 10,875 19,041 45 Loans to financial institutions 34,258 32,199 11,202 4,135 13,951 2,910 46 REIT's and mortgage companies 8,476 8,092 2,267 869 4,298 658 47 Domestic commercial banks 2,806 2,136 743 138 1,008 247 48 Banks in foreign countries 6,597 6,427 2,786 264 2,681 696 49 Other depository institutions 1,424 1,302 211 40 840 212 50 Other financial institutions 14,955 14,242 5,196 2,824 5,124 1,097 51 Loans to security brokers and dealers 10,108 9,805 5,597 1,420 2,497 291 52 Other loans to purchase or carry securities 4,216 3,494 376 302 1,833 983 53 Loans to farmers—except real estate 25,440 13,955 165 157 3,321 10,312 54 Commercial and industrial loans 201,203 163,093 37,199 12,602 64,071 49,221 55 Loans to individuals 142,918 98,541 6,336 2,195 35,289 54,721 56 Instalment loans 115,070 79,424 4,732 1,406 29,071 44,215 57 Passenger automobiles 51,361 32,804 889 157 9,796 21,962 58 Residential repair and modernization 7,325 4,834 286 69 1,771 2,708 59 Credit cards and related plans 18,708 16,487 2,085 1,003 8,846 4,554 60 Charge-account credit cards 14,819 13,256 1,351 964 7,288 3,653 61 Check and revolving credit plans 3,888 3,231 734 39 1,558 900 62 Other retail consumer goods 17,696 12,036 368 53 4,480 7,136 63 Mobile homes 9,097 6,376 169 20 2,359 3,828 64 Other 8,599 5,659 199 33 2,121 3,307 65 Other instalment loans 19,980 13,262 1,104 124 4,178 7,856 66 Single-payment loans to individuals 27,848 19,117 1,604 789 6,218 10,505 67 All other loans 15,510 13,163 2,284 1,279 5,921 3,679 68 Total loans and securities, net 898,279 658,693 94,784 34,187 243,587 286,136 69 Direct lease financing 5,990 5,626 1,041 140 3,458 988 70 Fixed assets—Buildings, furniture, real estate 21,948 16,359 2,380 760 6,227 6,992 71 Investment in unconsolidated subsidiaries 3,079 3,038 1,498 242 1,201 98 72 Customer acceptances outstanding 13,803 13,376 6,540 939 5,492 405 73 Other assets 37,661 33,818 14,263 1,283 13,472 4,800 74 Total assets 1,129,035 857,269 160,802 42,404 318,177 335,885 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 Insured Non- LLiiaabbiilliittyy oorr ccaappiittaall aaccccoouunntt commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits 343,578 264,614 61,165 10,354 94,367 98,728 78,977 76 Mutual savings banks 1,242 1,068 511 2 252 304 176 77 Other individuals, partnerships, and corporations 264,540 196,602 31,756 7,025 75,203 82,618 67,937 78 U.S. Government 3,550 2,370 146 31 681 1,512 1,180 79 States and political subdivisions 16,671 11,298 663 277 3,340 7,019 5,372 80 Foreign governments, central banks, etc 1,439 1,346 1,083 15 203 44 92 81 Commercial banks in United States 36,160 34,900 17,748 2,499 10,586 4,067 1,271 82 Banks in foreign countries 7,023 6,856 5,306 213 1,130 207 167 83 Certified and officers' checks, etc 12,955 10,173 3,951 293 2,971 2,957 2,783 84 Time deposits 340,980 247,508 36,646 1144,,889944 88,682 107,286 93,472 97 77 1 76 21 86 Mutual savings banks 367 350 171 45 113 21 17 87 Other individuals, partnerships, and corporations 267,045 192,741 27,651 10,975 67,811 86,305 74,304 88 U.S. Government 858 669 45 22 354 249 189 89 States and political subdivisions 56,281 38,502 1,820 1,340 15,789 19,553 17,779 90 Foreign governments, central banks, etc 8,469 8,224 4,872 1,442 1,794 116 245 91 Commercial banks in United States 6.473 5,719 1,380 982 2,599 758 754 92 Banks in foreign countries 1,389 1,226 708 88 221 209 163 93 Savings deposits 224,267 155,670 11,086 2,909 56,219 85,456 68,597 94 Individuals and nonprofit organizations 208,729 145,150 10,324 2,758 52,523 79,545 63,579 95 Corporations and other profit organizations 10,674 7,433 509 142 3,103 3,678 3,241 96 U.S. Government 60 47 4 18 26 13 97 States and political subdivisions 4,766 3,006 231 io 559 2,205 1,760 98 All other 38 35 18 * 15 2 4 99 Total deposits 908,825 667,792 108,896 28,157 239,268 291,470 241,046 100 Federal funds purchased and securities sold under agreements to repurchase 89,613 84,592 21,755 9,112 40,981 12,744 5,026 101 Commercial banks 45,167 43,009 8,459 6,188 22,824 5,537 2,158 102 Brokers and dealers 10,272 9,595 2,115 1,115 5,029 1,336 682 103 Others 34,175 31,988 11,181 1,808 13,128 5,871 2,186 104 Other liabilities for borrowed money 6,413 6,073 2,583 123 2,608 759 340 105 Mortgage indebtedness 1,686 1,380 229 29 681 442 310 106 Bank acceptances outstanding 14,394 13,966 7,119 942 5,499 407 428 107 Other liabilities 21,389 18,620 6,655 1,158 7,006 3,802 2,897 108 Total liabilities 1,042,320 792,424 147,237 39,521 296,042 309,623 250,047 109 Subordinated notes and debentures 5,734 4,459 1,109 80 1,995 1,275 1,275 110 Equity capital 80,981 60,387 12,456 2,802 20,141 24,987 20,606 Ill Preferred stock 80 32 2 29 49 112 Common stock 17,439 12,623 2,645 570 3,926 5,482 4,822 113 Surplus 31,468 22,763 4,542 1,404 7,997 8,821 8,708 114 Undivided profits 30,246 23,763 5,137 776 7,855 9,994 6,485 115 Other capital reserves 1,748 1,206 132 52 361 660 543 116 Total liabilities and equity capital 1,129,035 857,269 160,802 42,404 318,177 335,885 271,928 MEMO ITEMS: 117 Demand deposits adjusted2 241,764 167,543 20,683 44,,992200 5588,,550000 8833,,443399 7744,,222233 Average for last 15 or 30 days: 118 Cash and due from bank 133,088 113,373 32,111 55,,008866 4422,,003399 3344,,113366 1199,,772222 119 Federal funds sold and securities purchased under agreements to resell 46,678 35,671 4,328 1,997 16,675 12,671 11,090 120 Total loans 596,705 446,117 71,996 24,061 168,519 181,541 150,589 121 Time deposits of $ 100,000 or more 165,180 135,150 30,866 11,960 56,901 35,422 30,030 122 Total deposits 887,163 649,600 101,607 2266,,556688 223333,,330000 228888,,112255 223377,,557733 123 Federal funds purchased and securities sold under agreements to repurchase 91,131 86,470 23,676 9,751 40,486 12,557 4,661 124 Other liabilities for borrowed money 6,488 6,176 2,702 117 2,538 820 312 125 Standby letters of credit outstanding 16,408 15,465 8,772 1,169 4,378 1,146 944 126 Time deposits of $100,000 or more 168,974 138,295 31,243 12,496 58,552 36,004 30,679 127 Certificates of deposit 144,741 117,812 27,027 10,698 49,085 31,002 26,930 128 Other time deposits 24,233 20,483 4,216 1,798 9,467 5,002 3,750 129 Number of banks 14,372 5,652 12 9 153 5,478 8,733 1 Member banks exclude and nonmember banks include 13 noninsured NOTE.—Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System. bank-premises subsidiaries and other significant majority-owned do- 2 Demand deposits adjusted are demand deposits other than domestic mestic subsidiaries. Securities are reported on a gross basis before deduccommercial interbank and U.S. Govt., less cash items reported as in tions of valuation reserves. Holdings by type of security will be reported process of collection. as soon as they become available. Back data in lesser detail were shown in previous BULLETINS. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • October 1978 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30" Sept. 6" Sept. 13" Sept. 20" Sept. 27" 1 Total loans and investments 467,710 470,167 473,202 467,324 469,516 479,086 474,578 477,078 475,523 Loans: 2 Federal funds sold1 25,649 27,084 26,805 22,900 23,813 28,575 24,741 24,591 23,119 3 To commercial banks 19,981 19,762 20,720 17,600 18,346 21,101 19,287 18,858 17,947 To brokers and dealers involving— 4 U.S. Treasury securities 2,874 4,446 3,390 2,721 2,768 4,601 2,991 3,020 2,360 5 Other securities 577 551 511 554 519 558 513 567 592 6 To others 2,217 2,325 2,184 2,025 2,180 2,315 1,950 2,146 2,220 7 Other, gross 342,412 343,201 345,689 344,078 345,497 348,286 348,142 350,215 351,173 8 Commercial and industrial 135,352 134,541 135,106 134,958 134,968 135,402 135,546 136,543 136,710 9 Agricultural 5,217 5,249 5,249 5,245 5,259 5,282 5,314 5,314 5,334 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 1,022 1,712 1,505 927 933 1,600 1,493 1,321 921 11 Other securities 8,424 8,308 8,898 8,150 8,857 8,915 8,602 8,942 9,253 To others: 12 U.S. Treasury securities 106 106 106 105 107 106 109 106 105 13 Other securities 2,620 2,623 2,619 2,626 2,625 2,637 2,620 2,599 2,586 To nonbank financial institutions: 14 Personal and sales finance cos., etc 8,097 8,044 7,969 8,274 7,874 8,242 8,309 8,074 8,118 15 Other 15,423 15,557 15,700 15,577 15,702 15,638 15,786 15,875 15,904 16 Real estate 82,752 83,177 83,713 84,061 84,423 84,671 85,158 85,555 85,882 To commercial banks: 17 Domestic 2,483 2,317 2,312 2,231 2,313 2,392 2,162 2,329 2,561 18 Foreign 5,776 6,209 5,991 5,985 5,929 6,024 5,968 5,962 6,063 19 Consumer instalment 51,911 52,105 52,477 52,693 53,043 53,242 53,372 53,637 53,941 20 Foreign govts., official institutions, etc 1,644 1,671 1,591 1,564 1,634 1,714 1,706 1,645 1,666 21 All other loans 21,585 21,582 22,453 21,682 21,830 22,421 21,997 22,313 22,129 22 LESS: Loan loss reserve and unearned income on loans 10,448 10,543 10,621 10,677 10,682 10,732 10,793 10,840 10,789 23 Other loans, net 331,964 332,658 335,068 333,401 334,815 337,554 337,349 339,375 340,384 Investments: 24 U.S. Treasury securities 42,847 42,613 43,577 43,331 42,777 43,803 43,518 43,918 42,917 25 Bills 4,497 4,418 4,278 4,737 4,590 4,610 4,506 4,838 4,338 Notes and bonds, by maturity: 26 Within 1 year 7,255 7,227 6,912 6,623 6,741 6,915 6,920 6,937 6,979 27 1 to 5 years 26,242 26,085 26,564 26,242 25,850 26,694 26,487 26,500 26,014 28 After 5 years 4,853 4,883 5,823 5,729 5,596 5,584 5,605 5,643 5,586 29 Other securities 67,250 67,812 67,752 67,692 68,111 69,154 68,970 69,194 69,103 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 6,131 6,540 6,110 6,079 6,156 6,784 6,069 6,080 6,141 31 All other 44,764 44,947 45,352 45,382 45,750 45,931 46,226 46,028 45,953 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,870 2,847 2,796 2,836 , 2,835 2,840 2,855 2,936 2,855 33 All other, including corporate stocks 13,485 13,478 13,494 13,395 13,370 13,599 13,820 14,150 14,154 34 Cash items in process of collection 45,413 40,752 47,325 41,698 43,132 52,742 46,007 47,020 43,352 35 Reserves with F.R. Banks 24,721 20,679 21,711 23,163 22,408 18,229 22,708 19,210 25,261 36 Currency and coin 6,256 6,191 6,354 6,506 6,782 6,155 6,863 6,755 6,936 37 Balances with domestic banks 14,621 13,727 15,736 13,737 14,295 15,275 13,104 14,362 14,783 38 Investments in subsidiaries not consolidated..., 3,369 3,378 3,267 3,274 3,256 3,325 3,306 3,315 3,328 39 Other assets 63,121 63,473 61,397 63,955 63,298 63,412 64,970 65,876 65,367 40 Total assets/total liabilities 625,211 618,367 628,992 619,657 622,687 638,224 631,536 633,616 634,550 Deposits: 41 Demand deposits 192,013 183,778 194,654 183,366 186,538 200,217 192,868 195,335 191,858 42 Individuals, partnerships, and corps 138,220 134,261 140,184 133,405 135,136 141,823 142,160 139,295 135,128 43 States and political subdivisions 6,632 5,643 6,007 5,484 5,592 5,736 5,364 5,832 5,802 44 U.S. Govt 1,444 1,065 1,342 1,155 1,030 2,985 1,482 5,700 5,970 Domestic interbank: 45 Commercial 28,213 26,295 29,093 26,872 27,563 31,272 27,263 27,784 28,666 46 Mutual savings 913 816 871 753 784 945 804 801 754 Foreign: 47 Governments, official institutions, etc.... 1,273 1,060 1,031 1,264 1,261 1,656 1,074 1,238 1,346 48 Commerial banks 7,275 6,726 6,937 7,035 6,497 6,758 6,534 6,658 6,634 49 Certified and officers' checks 8,043 7,912 9,189 7,398 8,675 9,042 8,187 8,027 7,558 50 Time and savings deposits 3 267,169 268,002 267,895 269,280 270,102 270,573 272,167 271,820 272,480 51 Savings4 91,862 91,879 91,858 91,898 91,592 91,805 91,540 91,459 91,633 52 Time: 175,307 176,123 176,037 177,382 178,510 178,768 180,627 180,361 180,847 53 Individuals, partnerships, and corps 135,914 136,351 136,466 136,923 137,420 137,482 139,084 138,877 139,486 54 States and political subdivisions 25,351 25,679 25,652 26,153 26,298 26,278 26,335 26,200 26,153 55 Domestic interbank 6,071 6,187 6,054 6,371 6,453 6,487 6,730 6,950 7,041 56 Foreign govts., official institutions, etc... 6,355 6,279 6,209 6,278 6,655 6,775 6,745 6,604 6,409 57 Federal funds purchased, etc.5 78,014 80,263 80,066 80,213 79,304 80,175 79,797 78,034 82,370 Borrowings from: 58 F.R. Banks 1,696 392 611 1,192 608 350 176 1,487 509 59 Others 6,544 6,300 6,185 6,106 6,688 6,882 6,746 6,616 6,661 60 Other liabilities, etc. 6 33,133 32,958 32,978 32,827 32,694 33,043 32,738 33,407 33,658 61 Total equity capital and subordinated notes/debentures7 46,642 46,674 46,603 46,673 46,753 46,984 47,044 46,917 47,014 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 1978 AAccccoouunntt Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30p Sept. 6p Sept. 13 p Sept. 20p Sept. 21p 1 Total loans and investments 95,187 95,211 97,832 93,929 94,099 96,907 94,792 96,634 94,795 Loans: 2 Federal funds sold1 5,799 5,038 5,614 4,464 4,534 4,586 3,442 4,294 3,884 3 To commercial banks 33,,776699 22,,777733 33,,551177 22,,994433 22,,990000 22,,779955 22,,000088 22,,660044 22,,334444 To brokers and dealers involving— 4 U.S. Treasury securities 1,261 1,622 1,435 947 929 1,322 963 1,114 900 5 Other securities 19 11 3 6 10 4 4 4 4 6 To others 750 632 659 568 695 465 467 572 636 7 Other gross 70,871 71,513 72,973 70,728 71,156 72,979 72,917 73,728 73,148 8 Commercial and industrial 35,721 35,361 35,816 35,586 35,745 36,205 36,318 36,667 36,771 9 Agricultural 151 152 153 154 163 163 167 161 157 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 919 1,532 1,394 807 786 1,477 1,371 1,204 809 11 Other securities 44,,440066 44,,330099 AA,,111111 44,,114477 44,,660055 AA,,111122 44,,665522 5,075 44,,880011 To others: 12 U.S. Treasury securities 24 25 25 26 28 28 29 28 26 13 Other securities 358 367 367 368 364 368 359 354 358 To nonbank financial institutions: 14 Personal and sales finance cos., etc...... 2,786 2,754 2,675 2,926 2,626 2,802 2,879 2,790 2,759 15 Other 4,804 4,808 4,813 4,824 4,746 4,710 4,723 4,827 4,820 16 Real estate 99,,331199 99,,336688 9,394 99,,440077 99,,442288 99,,444477 99,,660033 99,,665577 99,,771188 To commercial banks: 17 Domestic 823 797 787 681 672 730 612 736 767 18 Foreign 2,551 2,968 2,756 2,643 2,737 2,744 2,697 2,706 2,737 19 Consumer instalment 4,735 4,756 4,804 4,822 4,841 4,854 4,886 4,907 4,935 20 Foreign govts, official institutions, etc 320 357 330 345 375 409 395 361 389 21 All other loans 33,,995544 33,,995599 44,,888822 33,,999922 44,,004400 44,,227700 44,,222266 44,,225555 4,101 22 LESS: Loan loss reserve and unearned income on loans 1,806 1,824 1,838 1,839 1,847 1,867 1,889 1,889 1,849 23 Other loans, net 69,065 69,689 71,135 68,889 69,309 71,112 71,028 71,839 71,299 Investments: 24 U.S. Treasury securities 9,761 9,783 10,275 9,866 9,477 10,002 9,274 9,415 8,723 25 Bills 1,771 1,777 1,714 1,935 1,893 1,982 1,385 11,,663300 11,,117788 Notes and bonds, by maturity: 26 Within 1 year 926 988 910 619 672 597 561 539 566 27 1 to 5 years 6,123 6,099 6,065 5,887 5,629 6,282 6,121 6,010 5,762 28 After 5 years 941 919 1,586 1,425 1,283 1,141 1,207 1,236 1,217 29 Other securities 10,562 10,701 10,808 10,710 10,779 1111,,220077 11,048 11,086 1100,,888899 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills. 1,551 1,834 1,694 1,690 1,732 2,150 1,772 1,868 1,850 31 All other 6,900 66,,990066 7,072 7,016 77,,002233 77,,003344 77,,117744 66,,994499 66,,991100 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 516 502 500 521 517 517 501 540 521 33 All other, including corporate stocks.... 1,595 1,459 1,542 1,483 1,507 1,506 1,601 1,729 1,608 34 Cash items in process of collection 14,127 13,865 15,739 13,950 15,534 15,451 14,706 15,327 14,243 35 Reserves with F.R. Banks 6,300 5,869 5,509 4,884 4,683 6,650 6,442 3,657 5,658 36 Currency and coin 906 899 920 933 973 955 1,025 1,034 1,039 37 Balances with domestic banks 7,337 6,749 8,406 7,413 7,786 6,840 6,427 7,409 7,145 38 Investments in subsidiaries not consolidated.... 1,715 1,707 1,701 1,716 1,722 1,713 1,729 1,729 1,732 39 Other assets 24,889 25,295 23,171 26,344 25,361 24,723 26,510 27,330 26,912 40 Total assets/total liabilities 150,461 149,595 153,278 149,169 150,158 153,239 151,631 153^120 151,524 Deposits: 41 53,215 50,584 54,828 51,388 53,163 54,312 51,990 54,469 53,142 42 Individuals, partnerships, and corps 28,715 27,517 29,118 27,115 28,215 27,707 28,152 28,753 27,281 43 States and political subdivisions 549 412 416 509 388 411 397 511 509 44 U.S. Govt 115 132 120 141 114 563 133 1,174 1,155 Domestic interbank: 45 Commercial 13,392 12,528 14,158 13,475 13,648 13,977 13,005 13,769 14,447 46 Mutual savings 472 401 439 373 377 482 407 402 371 Foreign: 47 Governments, official institutions, etc.... 1,018 808 111 11,,000055 994 1,354 849 1,007 11,,008844 48 Commercial banks 5,505 5,154 5,194 5,329 4,924 5,157 4,844 5,052 4,849 49 Certified and officers' checks 3,449 3,632 4,606 3,441 4,503 4,661 4,203 3,801 3,446 50 45,614 45,572 45,589 45,374 45,634 45,908 46,105 45,800 45,770 51 Savings4 9,598 9,591 9,573 9,560 9,526 9,551 9,540 9,525 9,571 52 Time 36,016 35,981 36,016 35,814 36,108 36,357 36,565 36,275 36,199 53 Individuals, partnerships and corps 27,843 27,798 27,963 27,640 27,681 27,900 28,142 27,821 27,835 54 States and political subdivisions 1,741 1,759 1,806 1,831 1,790 1,766 1,797 1,829 1,845 55 Domestic interbank 2,003 2,027 1,945 1,965 1,919 1,870 1,890 1,967 2,015 56 Foreign govts., official institutions, etc... 3,695 3,670 3,592 3,646 3,956 4,028 3,949 3,847 3,666 57 Federal funds purchased, etc.5 19,654 22,739 21,850 21,286 20,150 22,244 22,937 22,330 21,822 Borrowings from: 58 F.R. Banks 878 0 228855 117755 446600 0 00 00 00 59 Others 3,029 2,996 3,112 3,180 3,379 3,315 3,398 3,257 3,289 60 Other liabilities, etc. 6 14,890 14,490 14,387 14,542 14,143 14,176 13,914 13,979 14,217 61 Total eauitv capital and subordinated notes/ 13,181 13,214 1133,,222277 1133,,222244 13,229 13,284 13,287 13,285 13,284 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 Nonfinancial Statistics • October 1978 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30p Sept. 6p Sept. 13p Sept. 20p Sept. 27p 1 Total loans and investments 372,523 374,956 375,370 373,395 375,417 382,179 379,786 380,444 380,728 Loans: 2 Federal funds sold1 19,850 22,046 21,191 18,436 19,279 23,989 21,299 20,297 19,235 3 To commercial banks 16,212 16,989 17,203 14,657 15,446 18,306 17,279 16,254 15,603 To brokers and dealers involving— 4 U.S. Treasury securities 1,613 2,824 1,955 1,774 1,839 3,279 2,028 1,906 1,460 5 Other securities 558 540 508 548 509 554 509 563 588 6 To others 1,467 1,693 1,525 1,457 1,485 1,850 1,483 1,574 1,584 7 Other, gross 271,541 271,688 272,716 273,350 274,341 275,307 275,225 276,487 278,025 8 Commercial and industrial 99,631 99,180 99,290 99,372 99,223 99,197 99,228 99,876 99,939 9 Agricultural 5,066 5,097 5,096 5,091 5,096 5,119 5,147 5,153 5,177 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 103 180 111 120 147 123 122 117 112 11 Other securities 4,018 3,999 4,121 4,003 4,252 4,143 3,950 3,867 4,452 To others: 12 U.S. Treasury securities 82 81 81 79 79 78 80 78 79 13 Other securities 2,262 2,256 2,252 2,258 2,261 2,269 2,261 2,245 2,228 To nonbank financial institutions: 14 Personal and sales finance cos., etc 5,311 5,290 5,294 5,348 5,248 5,440 5,430 5,284 5,359 15 Other 10,619 10,749 10,887 10,753 10,956 10,928 11,063 11,048 11,084 16 Real estate 73,433 73,809 74,319 74,654 74,995 75,224 75,555 75,898 76,164 To commercial banks: 17 Domestic 1,660 1,520 1,525 1,550 1,641 1,662 1,550 1,593 1,794 18 Foreign 3,225 3,241 3,235 3,342 3,192 3,280 3,271 3,256 3,326 19 Consumer instalment 47,176 47,349 47,673 47,871 48,202 48,388 48,486 48,730 49,006 20 Foreign govts., official institutions, etc. 1,324 1,314 1,261 1,219 1,259 1,305 1,311 1,284 1,277 21 All other loans 17,631 17,623 17,571 17,690 17,790 18,151 17,771 18,058 18,028 22 LESS: Loan reserve and unearned income on loans 8,642 8,719 8,783 8,838 8,835 8,865 8,904 8,951 8,940 23 Other loans, net 262,899 262,969 263,933 264,512 265,506 266,442 266,321 267,536 269,085 Investments: 24 U.S. Treasury securities 33,086 32,830 33,302 33,465 33,300 33,801 34,244 34,503 34,194 25 Bills 2,726 2,641 2,564 2,802 2,697 2,628 3,121 3,208 3,160 Notes and bonds, by maturity: 26 Within 1 year 6,329 6,239 6,002 6,004 6,069 6,318 6,359 6,398 6,413 27 1 to 5 years 20,119 19,986 20,499 20,355 20,221 20,412 20,366 20,490 20,252 28 After 5 years 3,912 3,964 4,237 4,304 4,313 4,443 4,398 4,407 4,369 29 Other securities 56,688 57,111 56,944 56,982 57,332 57,947 57,922 58,108 58,214 Obligations of States and political subdivisions : 30 Tax warrants, short-term notes, and bills 4,580 4,706 4,416 4,389 4,424 4,634 A,291 4,212 4,291 31 Allother 37,864 38,041 38,280 38,366 38,727 38,897 39,052 39,079 39,043 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,354 2,345 2,296 2,315 2,318 2,323 2,354 2,396 2,334 33 All other, including corporate stocks... 11,890 12,019 11,952 11,912 11,863 12,093 12,219 12,421 12,546 34 Cash items in process of collection 31,286 26,887 31,586 27,748 27,598 37,291 31,301 31,693 29,109 35 Reserves with F.R. Banks 18,421 14,810 16,202 18,279 17,725 11,579 16,266 15,553 19,603 36 Currency and coin 5,350 5,292 5,434 5,573 5,809 5,200 5,838 5,721 5,897 37 Balances with domestic banks 7,284 6,978 7,330 6,324 6,509 8,435 6,677 6,953 7,638 38 Investments in subsidiaries not consolidated... 1,654 1,671 1,566 1,558 1,534 1,612 1,577 1,586 1,596 39 Other assets 38,232 38,178 38,226 37,611 37,937 38,689 38,460 38,546 38,455 40 Total assets/total liabilities 474,750 468,772 475,714 470,488 472,529 484,985 479,905 480,496 483,026 Deposits: 41 Demand deposits 138,798 133,194 139,826 131,978 133,375 145,905 140,878 140,866 138,716 42 Individuals, partnerships, and corps 109,505 106,744 111,066 106,290 106,921 114,116 114,008 110,542 107,847 43 States and political subdivisions 6,083 5,231 5,591 4,975 5,204 5,325 4,967 5,321 5,293 44 U.S. Govt 1,329 933 1,222 1,014 916 2,422 1,349 4,526 4,815 Domestic interbank: 45 Commercial 14,821 13,767 14,935 13,397 13,915 17,295 14,258 14,015 14,219 46 Mutual savings 441 415 432 380 407 463 397 399 383 Foreign: 47 Governments, official institutions, etc 255 252 254 259 267 302 225 231 262 48 Commercial banks 1,770 1,572 1,743 1,706 1,573 1,601 1,690 1,606 1,785 49 Certified and officers' checks 4,594 4,280 4,583 3,957 4,172 4,381 3,984 4,226 4,112 50 Time and savings deposits 3 221,555 222,430 222,306 223,906 224,468 224,665 226,062 226,020 226,710 51 Savings4 82,264 82,288 82,285 82,338 82,066 82,254 82,000 81,934 82,062 52 Time 139,291 140,142 140,021 141,568 142,402 142,411 144,062 144,086 144,648 53 Individuals, partnerships, and corps. 108,071 108,553 108,503 109,283 109,739 109,582 110,942 111,056 111,651 54 States and political subdivisions 23,610 23,920 23,846 24,322 24,508 24,512 24,538 24,371 24,308 55 Domestic interbank 4,068 4,160 4,109 4,406 4,534 4,617 4,840 4,983 5,026 56 Foreign govts., official institutions, etc.. 2,660 2,609 2,617 2,632 2,699 2,747 2,796 2,757 2,743 57 Federal funds purchased, etc. 5 58,360 57,524 58,216 58,927 59,154 57,931 56,860 55,704 60,548 Borrowings from: 58 F.R. Banks 818 392 326 1,017 148 350 176 1,487 509 59 Others 3,515 3,304 3,073 2,926 3,309 3,567 3,348 3,359 3,372 60 Other liabilities, etc. 6 18,243 18,468 18,591 18,285 18,551 18,867 18,824 19,428 19,441 61 Total equity capital and subordinated notes/debentures 7 33,461 33,460 33,376 33,449 33,524 33,700 33,757 33,632 33,730 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 1978 Account Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30*> Sept. 6p Sept. 13? Sept. 20? Sept. 21p Total loans (gross) and investments adjusted1 1 Large Banks 455,694 458,631 460,791 458,170 459,539 466,325 463,922 466,731 465,804 2 New York City banks 92,401 93,465 95,366 92,144 92,374 95,249 94,061 95,183 93,533 3 Banks outside New York City 363,293 365,166 365,425 366,026 367,165 371,076 369,861 371,548 372,271 Total loans (gross), adjusted 4 Large banks 345,597 348,206 349,462 347,147 348,651 353,368 351,434 353,619 353,784 5 New York City banks 12,on 72,981 74,283 71,568 72,118 74,040 73,739 74,682 73,921 6 Banks outside New York City 273,519 275,225 275,179 275,579 276,533 279,328 277,695 278,937 279,863 Demand deposits, adjusted2 7 Large Banks 116,943 115,666 116,894 113,641 114,813 113,218 118,116 114,831 113,870 8 New York City banks 25,581 24,059 24,811 23,822 23,867 24,321 24,146 24,199 23,297 9 Banks outside New York City 91,362 91,607 92,083 89,819 90,946 88,897 93,970 90,632 90,573 Large negotiable time CD's included in time and savings deposits3 Total: 10 Large banks 87,243 87,869 87,608 88,426 89,248 89,385 90,893 90,569 90,977 11 New York City 24,780 24,807 24,748 24,539 24,817 24,958 25,088 24,723 24,595 12 Banks outside New York City 62,463 63,062 62,860 63,887 64,431 64,427 65,805 65,846 66,382 Issued to IPC's: 13 Large banks 62,227 62.562 62,448 62,823 63,164 63,111 64,363 63,912 64,380 14 New York City Banks 17,945 17,999 18,073 17,761 17,794 17,976 18,129 17,725 17,721 15 Banks outside New York City 44,282 44.563 44,375 45,062 45,370 45,135 46,234 46,187 46,659 Issued to others: 16 Large banks 25,016 25,307 25,160 25,603 26,084 26,274 26,530 26,657 26,597 17 New York City banks 6,835' 6,808 6,675 6,778 7,023 6,982 6,959 6,998 6,874 18 Banks outside New York City 18,181 18,499 18,485 18,825 19,061 19,292 19,571 19,659 19,723 All other large time deposits4 Total: 19 Large banks 33,808 33,999 34,018 34,496 34,628 34,719 34,820 34,707 34,654 20 New York City banks 6,301 6,288 6,304 6,307 6,328 6,455 6,481 6,512 6,540 21 Banks outside New York City 27,507 27,711 27,714 28,189 28,300 28,264 28,339 28,195 28,114 Issued to IPC's: 22 Large banks 20,200 20,326 20,395 20,443 20,419 20,504 20,626 20,705 20,724 23 New York City banks 5,100 5,068 5,095 5,085 5,096 5,143 5,186 5,227 5,223 24 Banks outside New York City 15,100 15,258 15,300 15,358 15,323 15,361 15,440 15,478 15,501 Issued to others: 25 Large banks 13,608 13,673 13,623 14,053 14,209 14,215 14,194 14,002 13,930 26 New York City banks 1,201 1,220 1,209 1,222 1,232 1,312 1,295 1,285 1,317 27 Banks outside New York City 12,407 12,453 12,414 12,831 12,977 12,903 12,899 12,717 12,613 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks 85,751 85,717 85,683 85,641 85,306 85,465 85,220 85,197 85,342 29 New York City banks 8,951 8,950 8,929 8,914 8,891 8,903 8,881 8,863 8,902 30 Banks outside New York City 76,800 76,767 76,754 76,727 76,415 76,562 76,339 76,334 76,440 Partnerships and corporations for profit:5 31 Large banks 4,948 5,020 5,003 5,094 5,134 5,163 5,137 5,077 5,113 32 New York City banks 454 460 461 467 470 474 473 470 473 33 Banks outside New York City 4,494 4,560 4,542 4,627 4,664 4,689 4,664 4,607 4,640 Domestic governmental units: 34 Large banks 1,143 1,123 1,147 1,140 1,138 1,154 1,152 1,153 1,145 35 New York City banks 183 169 165 163 158 160 169 172 176 36 Banks outside New York City 960 954 982 977 980 994 983 981 969 All other:6 37 Large banks 20 19 25 23 14 23 31 32 33 38 New York City banks 10 12 18 16 7 14 17 20 20 39 Banks outside New Yotk City 10 7 7 7 7 9 14 12 13 Gross liabilities oi banks to their foreign branches 40 Large banks 5,970 5,453 5,352 5,305 5,040 5,545 4,623 5,668 5,311 41 New York City banks 3,138 2,450 3,151 2,766 2,631 3,245 2,016 2,632 2,175 42 Banks outside New York City 2,832 3,003 2,201 2,539 2,409 2,300 2,607 3,036 3,136 Loans sold outright to selected institutions by all large banks 7 43 Commercial and industrial8 2,381 2,472 2,424 2,481 2,479 2,412 2,424 2,366 2,376 44 Real estate 8 249 245 249 251 247 256 253 252 252 45 All other 8 2,027 2,014 2,016 2,027 1,958 2,033 2,061 2,020 2,022 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 8 Data revised beginning July 7, 1977, due to reclassifications at one not included in large negotiable (CD's). large bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • October 1978 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1978 1978 1978 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27" Q2r Q3" July Aug. Sept." Total loans classified2 1 Total 109,709 110,182 110,408 111,283 111,500 5,384 1,346 -655 210 1,791 Durable goods manufacturing: 2 Primary metals 2,721 2,751 2,699 2,706 2,732 43 -66 -95 18 11 3 Machinery 5,324 5,268 5,317 5,375 5,388 177 -16 2 -82 64 4 Transportation equipment 2,696 2,655 2,705 2,760 2,747 66 -52 -69 -34 51 5 Other fabricated metal products... 2,393 2,422 2,474 2,502 2,522 181 69 -45 -15 129 6 Other durable goods 3,943 3,987 4,020 4,048 4,045 382 136 -14 48 102 Nondurable goods manufacturing: 7 Food, liquor, and tobacco 4,152 4,190 4,232 4,114 4,154 409 -101 -186 83 2 8 Textiles, apparel, and leather 4,439 4,483 4,495 4,420 4,383 565 240 129 167 -56 9 Petroleum refining 2,566 2,502 2,480 2,544 2,521 159 -116 -75 4 -45 10 Chemicals and rubber 3,399 3,474 3,467 3,494 3,468 154 -101 -55 -115 69 11 Other nondurable goods 2,399 2,439 2,439 2,471 2,480 61 213 56 76 81 12 Mining, including crude petroleum and natural gas 10,453 10,427 10,509 10,627 10,577 883 172 -33 81 124 Trade: 13 Commodity dealers 1,766 1,825 1,745 1,771 1,744 -187 -323 -86 -215 -22 14 Other wholesale 8,973 8,998 8,905 8,999 9,172 458 232 81 -48 199 15 Retail 8,062 8,023 8,001 8,034 8,194 639 -80 -14 -198 132 16 Transportation 5,337 5,366 5,407 5,452 5,494 -147 53 -177 73 157 17 Communication 1,678 1,708 1,699 1,784 1,733 249 68 17 -4 55 18 Other public utilities 5,114 5,191 5,120 5,138 5,099 38 89 166 -62 -15 19 Construction 5,204 5,209 5,200 5,209 5,221 483 110 86 7 17 20 Services 13,546 13,635 13,749 13,956 13,959 1,134 520 98 9 413 21 All other domestic loans 8,030 7,992 7,932 8,013 8,036 296 282 161 115 6 22 Bankers acceptances 2,879 3,039 3,188 3,177 3,112 -429 -149 -627 245 233 23 Foreign commercial and industrial loans 4,635 4,598 4,625 4,689 4,719 -230 166 25 57 84 MEMO ITEMS: 24 Commercial paper included in total classified loans1 45 63 — 60 — 8 — 7 — 19 1188 25 Total commercial and industrial loans of all large weekly reporting banks 134,968 135,402 135,546 136,543 136,710 6,601 1,333 -738 329 11,,774422 1978 1978 1978 May 31 June 28 July 26 Aug. 30 Sept. 27" Q2 Q3 July Aug. Sept. "Term" loans classified3 26 Total.. 51,205 51,293 51,905 52,618 53,012 1,926 1,719 612 713 394 Durable goods manufacturing: 27 Primary metals 1,736 1,706 1,695 1,710 1,672 128 -34 -11 15 -38 28 Machinery 2,622 2,576 2,712 2,669 2,650 45 74 136 -43 -19 29 Transportation equipment 1,460 1,420 1,439 1,586 1,565 -69 145 19 147 -21 30 Other fabricated metal products.. 973 994 1,000 990 1,007 87 13 6 -10 17 31 Other durable goods 1,625 1,678 1,718 1,699 1,713 106 35 40 -19 14 Nondurable goods manufacturing: 32 Food, liquor, and tobacco 1,671 11,,667711 11,,669911 11,,774400 11,,772277 150 56 20 49 -13 33 Textiles, apparel, and leather.... 1,097 11,,112222 11,,113388 11,,113333 11,,112266 84 4 16 -5 -7 34 Petroleum refining 1,962 11,,994477 11,,888822 11,,888822 11,,884466 74 -101 -65 -36 3 3 5 6 C O h th e e m r ic n a o l n s d a u n r d a b r l u e b g b o er o ds 2 1 , , 2 0 2 9 9 3 22 11 ,, ,, 44 00 11 99 22 11 vv 22 11 ,, ,, 44 11 11 00 88 33 22 11 ,, ,, 33 11 22 55 22 66 22 11 ,, ,, 33 11 00 77 11 77 - 2 7 9 8 6 86 1 6 2 -9 5 6 3 -2 2 1 1 37 Mining, including crude petroleum and natural gas 7,604 7,760 7,660 7,757 7,862 676 102 -100 97 105 Trade: 38 Commodity dealers 254 228 233 248 250 -24 22 5 15 2 39 Other wholesale 2,141 2,175 2,233 2,276 2,360 187 185 58 43 84 40 Retail 2,855 2,834 2,782 2,827 2,791 275 -43 -52 45 -36 41 Transportation 3,702 3,738 3,678 3,732 3,753 -133 15 -60 54 21 42 Communication 980 1,009 1,061 1,057 1,076 85 67 52 -4 19 4 4 4 4 5 6 3 4 S A O C e o l t r l h n v e o s i r c t t h r e p u s e u c r b t d i l o i o c n m u e t s il t i i t c i e l s o ans 2 2 6 3 , , , , 1 5 3 7 0 2 0 7 1 5 1 0 2 2 6 3 , , , , 3 1 5 4 2 2 1 9 9 0 7 0 2 2 6 3 , , , , 1 4 5 7 7 9 3 1 7 2 6 4 2 2 3 6 , , , , 2 6 8 6 4 1 6 0 5 6 0 6 2 2 3 6 , , , , 2 7 8 7 2 4 1 9 4 7 2 7 - - 2 1 6 9 4 0 5 3 5 9 1 3 3 3 1 1 9 0 0 8 2 7 7 1 1 1 6 8 0 1 0 5 2 6 1 1 6 4 8 1 8 6 0 4 - - 1 1 2 9 9 3 1 6 1 47 Foreign commercial and industrial loans 2,504 2,476 2,543 2,507 2,556 -185 80 67 -36 49 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 TTTyyypppeee ooofff hhhooollldddeeerrr 1976 1977 1978 11997733 11997744 11997755 DDeecc.. DDeecc.. DDeecc.. Dec. Mar. June Sept. Dec. Mar. June 11111 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss,,,,, iiiiinnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd 220.1 225.0 236.9 250.1 242.3 253.8 252.7 274.4 262.5 271.2 22222 FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 19.1 19.0 20.1 22.3 21.6 25.9 23.7 25.0 24.5 25.7 116.2 118.8 125.1 130.2 125.1 129.2 128.5 142.9 131.5 137.7 70.1 73.3 78.0 82.6 81.6 84.1 86.2 91.0 91.8 92.9 2.4 2.3 2.4 2.7 2.4 2.5 2.5 2.5 2.4 2.4 12.4 11.7 11.3 12.4 11.6 12.2 11.8 12.9 12.3 12.4 At weekly reporting banks 1978 11997755 11997766 11997777 DDeecc.. DDeecc.. DDeecc.. Feb. Mar. Apr. May June July Aug. 77777 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss,,,,, iiiiinnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd 124.4 128.5 139.1 132.5 131.9 135.6 134.3 136.9 139.9 137.7 88888 FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 15.6 17.5 18.5 18.1 18.2 17.9 18.1 19.0 19.4 19.4 99999 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 69.9 69.7 76.3 70.7 68.9 70.9 70.7 71.9 73.7 72.0 29.9 31.7 34.6 34.4 35.4 37.6 36.0 36.6 37.1 36.8 2.3 2.6 2.4 2.4 2.3 2.2 2.4 2.3 2.3 2.4 1111122222 OOOOOttttthhhhheeeeerrrrr 6.6 7.1 7.4 6.9 7.0 7.0 7.1 7.1 7.3 7.1 NOTE.—Figures include cash items in process of collection. Estimates of banks. Types of depositors in each category are described in the June 1971 gross deposits are based on reports supplied by a sample of commercial BULLETIN, p. 466. 1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1978 11997755 11997766 11997777 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc,, Feb. Mar. Apr. May June July Aug. Commercial paper (seasonally adjusted) 48,459 53,025 65,209 65,578 67,476 70,289 71,213 74,536 74,900 73,960 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooommmmppppaaaannnniiiieeeessss::::1111 DDDDeeeeaaaalllleeeerrrr----ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr::::2222 2222 TTTToooottttaaaallll 6,202 7,250 8,871 8,918 8,889 9,670 10,314 10,327 10,617 10,868 3333 BBBBaaaannnnkkkk----rrrreeeellllaaaatttteeeedddd 1,762 1,900 2,132 1,997 1,993 2,078 2,217 2,442 2,633 2,935 DDDDiiiirrrreeeeccccttttllllyyyy----ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr::::3333 4444 TTTToooottttaaaallll 31,374 32,500 40,496 42,238 42,903 44,326 44,664 47,315 46,594 45,510 5555 BBBBaaaannnnkkkk----rrrreeeellllaaaatttteeeedddd 6,892 5,959 7,102 7,718 8,153 7,995 9,258 9,585 10,030 9,634 10,883 13,275 15,842 14,422 15,684 16,293 16,235 16,894 17,689 17,582 Dollar acceptances (not seasonally adjusted) 7777 TTTToooottttaaaallll 1188,,772277 2222,,552233 2255,,665544 25,411 2266,,118811 26,256 26,714 2288,,228899 27,579 28,319 HHHHeeeelllldddd bbbbyyyy:::: 77,,555555 1100,,444422 1100,,443344 7,513 77,,337755 7,091 7,286 77,,550022 7,244 7,048 9999 OOOOwwwwnnnn bbbbiiiillllllllssss 55,,889999 88,,776699 88,,991155 6,583 66,,337755 6,117 6,365 66,,552200 6,345 6,131 11110000 BBBBiiiillllllllssss bbbboooouuuugggghhhhtttt 11,,443355 11,,667733 11,,551199 931 11,,000000 974 921 998833 899 917 FFFF....RRRR.... BBBBaaaannnnkkkkssss:::: 11111111 OOOOwwwwnnnn aaaaccccccccoooouuuunnnntttt 11,,112266 999911 995544 12 Foreign correspondents... 229933 337755 336622 456 552222 550 679 662255 568 633 13 Others 99,,997755 1100,,771155 1133,,990044 17,442 1188,,228833 18,614 18,749 2200,,116600 19,766 20,638 Based on: 14 Imports into United States 33,,772266 44,,999922 66,,553322 6,842 66,,997799 7,108 7,027 77,,557788 7,415 7,885 44,,000011 44,,881188 55,,889955 5,739 66,,003344 6,216 6,494 66,,990066 6,565 6,558 16 All other 1111,,000000 1122,,771133 1133,,222277 13,026 1133,,116688 12,932 13,193 1133,,880055 13,599 13,876 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 iirms 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 • October 1978 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Month Average Month Rate Effective date Rate rate 61/2 1978—Jan. 10. 1977—Jan.. 6.25 1978—Jan.. Feb. 6.25 Feb. 63/4 May 5, 81/4 Mar, 6.25 Mar. 26 8% Apr. 6.25 Apr. 7 May, 6.41 May June 16 8% June, 6.75 June 71/4 30 9 July. 6.75 July. 71/2 Aug. 6.83 Aug. 7y 4 Aug. 31 9Ya Sept. 7.13 Sept. Oct.. 7.52 Sept. 15 9Vi Nov. 7.75 28 9V* Dec. 7.75 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 7-12, 1978 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) 7,198,593 1,049,321 559,214 638,138 1,899,754 532,767 2,519,400 2 Number of loans 187,673 147,855 16,858 10,683 10,445 863 970 3 Weighted-average maturity (months) 3.0 2.8 3.4 2.4 3.0 3.3 3.1 4 Weighted-average interest rate (per cent per annum).. 9.97 10.45 10.19 10.30 10.19 9.93 9.47 5 Interquartile range 1 9.31-10.47 9.25-11.65 9.34-10.50 9.73-10.75 9.38-10.64 9.31-10.43 9.00-9.88 Percentage of amount of loans: 6 With floating rate 48.3 32.0 36.6 46.5 43.2 57.4 60.1 7 Made under commitment 38.1 15.2 21.0 27.5 31.2 58.5 54.9 Long-term commercial and industrial loans 8 Amount of loans (thousands of dollars) 1,417,990 293,717 355,547 99,274 669,452 9 Number of loans 22,251 19,735 2,218 150 148 10 Weighted-average maturity (months) 45.2 33.7 47.2 57.7 47.4 11 Weighted-average interest rate (per cent per annum).. 10.20 10.66 10.35 9.83 9.96 12 Interquartile range 1 9.38-11.00 9.89-11.57 9.38-11.02 9.25-10.50 9.00-10.48 Percentage of amount of loans: 13 With floating rate 65.5 30.1 62.3 55.1 84.3 14 Made under commitment 51.3 25.0 35.7 50.6 71.2 Construction and land development loans 15 Amount of loans (thousands of dollars) 1,177,413 228,314 144,262 155,635 381,591 267,611 16 Number of loans 30,901 22,364 4,546 2,278 1,490 223 17 Weighted-average maturity (months) 8.4 10.7 9.6 3.8 7.2 9.6 18 Weighted-average interest rate (per cent per annum).. 10.43 10.27 10.66 11.05 10.33 10.23 19 Interquartile range 1 9.95-11.02 9.27-10.87 10.00-11.00 10.00-12.73 10.03-10.70 9.27-11.30 Percentage of amount of loans: 20 With floating rate 49.3 12.3 13.0 18.3 80.2 74.3 21 Secured by real estate 92.9 85.4 97.1 94.5 97.1 90.3 22 Made under commitment 55.2 49.7 32.7 68.2 43.5 81.3 23 Type of construction: 1-to 4-family 42.1 77.2 71.3 64.9 20.2 14.5 24 Multifamily 8.5 1.2 10.0 1.7 7.8 18.8 25 Nonresidential 49.4 21.6 18.8 33.4 71.9 66.8 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) 824,790 159,057 150,908 157,111 82,007 92,298 183,409 27 Number of loans 63,389 45,994 10,109 4,942 1,338 689 317 28 Weighted-average maturity (months) 6.6 7.5 6.6 10.2 6.1 5.8 3.9 29 Weighted-average interest rate (per cent per annum).. 9.62 9.33 9.33 9.46 9.51 9.92 10.15 30 Interquartile range 1 9.13-10.21 8.77-9.73 8.77-9.73 9.00-10.00 9.20-9.84 9.25-10.38 9.54-10.97 By purpose of loan: 31 Feeder livestock 9.49 9.13 9.11 9.37 9.48 9.60 9.91 32 Other livestock 9.47 9.36 9.44 10.03 8.86 10.19 9.76 33 Other current operating expenses 9.66 9.27 9.44 9.26 9.81 9.96 10.41 34 Farm machinery and equipment 9.63 9.52 9.53 9.86 9.41 (2) (2) 35 Other 9.87 9.61 9.22 9.67 9.77 10.39 10.28 1 Interest rate range that covers the middle 50 per cent of the total NOTE.—For more detail, see the Board's 416 (G.14) statistical release, dollar amount of loans made. 2 Fewer than three 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 1978 1978, week ending— IInnssttrruummeenntt 11997755 1976 11997777 1 I June July Aug. Sept. Sept. 2 Sept. 9 Sept. 16jSept. 23^Sept. 30 Money market rates 1 Federal funds 1 5.82 5.05 5.54 7.60 7.81 8.04 8.45 8.28 8.30 8.33 8.36 8.62 Prime commercial paper 2 2 90- to 119-day 6.26 5.24 5.54 7.59 7.85 7.83 8.39 7.97 8.18 8.39 8.48 8.56 3 4- to 6-month 6.33 5.35 5.60 7.63 7.91 7.90 8.44 8.03 8.24 8.43 8.51 8.60 4 Finance company paper, directly placed, 3- to 6-month 3 66..1166 5.22 5.49 7.41 7.66 7.65 8.18 7.74 7.98 8.14 8.27 8.37 5 Prime bankers acceptances, 90-day 4 6.30 5.19 5.59 7.75 8.02 7.98 8.54 8.19 8.31 8.44 8.62 8.82 Large negotiable certificates of deposit 6 3-montli, secondary market 5 6.43 5.26 5.58 7.82 9.00 8.05 8.61 8.19 8.35 8.44 8.63 8.83 7 5.15 5.52 7.68 8.00 7.86 8.42 7.90 8.14 8.38 8.50 8.65 8 Euro-dollar deposits, 3-month 7 6.97 5.57 6.05 8.33 8.52 8.48 9.12 8.61 8.88 8.85 9.09 9.41 U.S. Government securities Bills:« Market yields: 9 3-month 5.80 4.98 5.27 6.73 7.01 7.08 7.85 7.50 7.60 7.77 8.02 7.96 10 6-month 6.11 5.26 5.53 7.23 7.44 7.37 7.99 7.65 7.69 7.87 8.10 8.28 11 1-year 6.30 5.52 5.71 7.53 7.79 7.73 8.01 7.86 7.86 7.95 8.08 8.16 Rates on new issued 12 5.838 4.989 5.265 6.707 7.074 7.036 7.836 7.323 7.659 7.695 7.884 8.106 13 6.122 5.266 5.510 7.200 7.471 7.363 7.948 7.550 7.742 7.793 7.979 8.276 Capital market rates Government notes and bonds U.S. Treasury Constant maturities:10 14 1-vear 6.76 5.88 6.09 8.09 8.39 8.31 8.64 8.47 8.46 8.56 8.72 8.81 15 2-year 6.45 8.24 8.49 8.37 8.57 8.46 8.45 8.45 8.62 8.73 16 3-year 7.49 6.77 6.69 8.30 8.54 8.33 8.41 8.37 8.35 8.34 8.45 8.49 17 5-year 7.77 7.18 6.99 8.36 8.54 8.33 8.43 8.39 8.37 8.35 8.46 8.52 18 7-year 7.90 7.42 7.23 8.40 8.55 8.38 8.42 8.39 8.35 8.33 8.46 8.54 19 10-year 7.99 7.61 7.42 8.46 8.64 8.41 8.42 8.38 8.34 8.31 8.46 8.55 20 20-year 8.19 7.86 7.67 8.53 8.69 8.45 8.47 8.43 8.39 8.36 8.49 8.61 2211 30-year 88..5500 88..6655 88..4477 88..4477 88..4455 88..4411 88..3388 88..5500 88..5599 Notes and bonds maturing in —11 22 3 to 5 years 7.55 6.94 6.85 8.31 8.54 8.31 8.38 8.36 8.33 8.32 8.40 8.48 23 Over 10 years (long-term) 6.98 6.78 7.06 7.94 8.09 7.87 7.82 7.82 7.77 7.73 7.83 7.94 State and local: Moody's series:12 24 Aaa 6.42 5.66 5.20 5.73 5.80 5.56 5.53 5.50 5.50 5.40 5.60 5.60 25 Baa 7.62 7.49 6.12 6.44 6.45 6.54 6.63 7.00 7.00 6.80 6.40 6.30 26 Bond Buyer series 13 7.05 6.64 5.68 6.22 6.28 6.12 6.09 6.16 6.13 6.02 6.12 6.09 Corporate bonds Seasoned issues *4 27 All industries 9.57 9.01 8.43 9.13 9.22 9.08 9.08 9.05 9.04 9.01 9.03 9.08 By rating groups: 28 Aaa 8.83 8.43 8.02 8.76 8.88 8.69 8.78 8.67 8.67 8.63 8.70 8.77 29 Aa 9.17 8.75 8.24 8.95 9.07 8.96 8.96 8.91 8.91 8.89 8.92 8.97 30 A 9.65 9.09 8.49 9.18 9.33 9.18 9.11 9.15 9.14 9.10 9.10 9.11 31 Baa 10.61 9.75 8.97 9.60 9.60 9.48 9.47 9.46 9.43 9.40 9.39 9.46 Aaa utility bonds:15 32 New issue 9.40 8.48 8.19 9.09 9.14 8.82 8.86 8.80 8.77 8.74 8.90 9.06 33 Recently offered issues 9.41 8.49 8.19 9.07 9.18 8.91 8.86 8.85 8.79 8.73 8.92 9.00 Dividend/price ratio 34 Preferred stocks 8.38 7.97 7.60 8.31 8.42 8.26 8.24 r8.28 8.25 8.27 8.20 8.22 35 Common stocks 4.31 3.77 4.56 5.19 5.25 4.93 4.97 ••4.97 4.88 4.85 5.07 5.08 1 Weekly figures are 7-day averages of daily effective rates for the week 8 Except for new bill issues, yields are computed from daily closing ending Wednesday; the daily effective rate is an average of the rates on bid prices. Yields for all bills are quoted on a bank-discount basis. a given day weighted by the volume of transactions at these rates. 9 Rates are recorded in the week in which bills are issued. 2 Beginning Nov. 1977, unweighted average of offering rates quoted I o Yields on the more actively traded issues adjusted to constant by five dealers. Previously, most representative rate quoted by those maturities by the U.S. Treasury, based on daily closing bid prices. dealers. II Unweighted averages for all outstanding notes and bonds in maturity 3 Averages of the most representative daily offering rates published by ranges shown, based on daily closing bid prices. "Long-term" includes finance companies for varying maturities iq this range. all bonds neither due nor callable in less than 10 years, including a num- 4 Average of the midpoint of the range of daily dealer closing rates ber of very low yielding "flower" bonds. offered for domestic issues; prior data are averages of the most repre- 12 General obligations only, based on figures for Thursday, from sentative daily offering rate quoted by dealers. Moody's Investors Service. s Weekly figures (week ending Wednesday) are 7-day averages of the 13 Twenty issues of mixed quality. daily midpoints as determined from the range of offering rates; monthly 14 Averages of daily figures from Moody's Investors Service. figures are averages of total days in the month. Beginning Apr. 5, 1978, 15 Compilation of the Board of Governors of the Federal Reserve weekly figures are simple averages of offering rates. 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 by large New York City banks. Rates prior to 1976 not available. (included only for first 4 weeks after termination of underwriter price Weekly figures are for Wednesday dates. restrictions), on Friday close-of-business quotations. 7 Averages of daily quotations for the week ending Wednesday. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • October 1978 1.37 STOCK MARKET Selected Statistics 1978 Indicator 1975 1976 1977 Mar. Apr. May June July Aug. Sept. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 45.73 54.45 53.67 49.50 51.75 54.49 54.83 54.61 58.53 58.58 51.88 60.44 57.84 52.77 55.48 59.14 59.63 59.35 64.07 64.23 30.73 39.57 41.07 38.95 41.19 44.21 44.19 44.74 49.45 50.19 4 Utility 31.45 36.97 40.91 39.26 39.69 39.47 39.41 39.28 40.20 39.82 46.62 52.94 55.23 51.44 55.04 57.95 58.31 57.97 63.28 63.22 6 Standard & Poor's Corporation (1941-43 = 10) i.. 85.17 102.01 98.18 88.82 92.71 97.41 97.66 97.19 103.92 103.86 7 American Stock Exchange (Aug. 31,1973 = 100). 83.15 101.63 116.18 126.11 133.67 142.26 147.64 149.87 162.52 170.95 Volume of trading (thousands of shares)2 8 New York Stock Exchange 18,568 21,189 20,936 22,617 34,780 35,261 30,514 27,074 37,603 33,612 9 American Stock Exchange 2,150 2,565 2,514 2,940 4,151 4,869 4,220 3,496 5,526 5,740 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers and banks3 6,500 9,011 10,866 11,027 11,424 11 Brokers, total 5,540 8 J 66 9,995 10,172 10,510 1111100000,,,,,999991111100000 11111111,,,,333333332222 12 Margin stock4 5,390 7,960 9,740 9,920 10,260 1111100000,,,,,666666666600000 11111111,,,,000099990000 1111,,119900 1111,,774400 13 Convertible bonds 147 204 250 250 248 222224444455555 222244442222 14 Subscription issues 3 2 3 2 2 11111 15 Banks, total 960 845 873 855 914 16 Margin stocks 909 800 827 824 882 17 Convertible bonds 36 30 30 24 25 18 Subscription issues 15 15 16 7 7 19 Unregulated nonmargin stock credit at banks* 2,281 R2,283 2,568 2,544 2,560 MEMO: Free credit balances at brokers6 20 Margin-account 475 585 640 630 715 777555555 777000000 777111000 777999555 21 Cash-account 1,525 1,855 2,060 1,795 2,170 222,,,333999555 222,,,333000000 222,,,222999555 222,,,555555555 Margin-account debt at brokers (percentage distribution, end of period) 22 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in per cent):7 23 Under 40 24.0 12.0 18.0 21.0 15.0 15.0 16.0 13.0 12.0 24 40-49 28.8 23.0 36.0 33.0 32.0 33.0 34.0 34.0 34.0 25 50-59 22.3 35.0 23.0 24.0 27.0 26.0 26.0 25.0 23.0 26 60-69 11.6 15.0 11.0 11.0 13.0 13.0 12.0 14.0 16.0 27 70-79 6.9 8.7 6.0 6.0 7.0 7.0 7.0 8.0 9.0 28 80 or more 5.3 6.0 5.0 5.0 6.0 6.0 5.0 6.0 6.0 Special miscellaneous-account balances at brokers (end of period) 29 Total balances (millions of dollars) »... 7,290 8,776 9,910 10,190 10,212 10,516 Distribution by equity status (per cent) 30 Net credit status 43.8 41.3 43.4 42.6 41.9 42.6 Debit status, equity of— 31 60 per cent or more 40.8 47.8 44.9 43.7 46.2 46.0 32 Less than 60 per cent 15.4 10.9 11.7 13.5 11.9 11.4 1 Effective July 1976, includes a new financial group, banks and in- 5 Nonmargin stocks are those not listed on a national securities exsurance companies. With this change the index includes 400 industrial change and not included on the Federal Reserve System's list of over-thestocks (formerly 425), 20 transportation (formerly 15 rail), 40 public counter margin stocks. At banks, loans to purchase or carry nonmargin utility (formerly 60), and 40 financial. stocks are unregulated; at brokers, such stocks have no loan value. 2 Based on trading for a 5^-hour day. 6 Free credit balances are in accounts with no unfulfilled commitments 3 Margin credit includes all credit extended to purchase or carry to the brokers and are subject to withdrawal by customers on demand. stocks or related equity instruments and secured at least in part by stock. 7 Each customer's equity in his collateral (market value of collateral Credit extended by brokers is end-of-month data for member firms of less net debit balance) is expressed as a percentage of current collateral the New York Stock Exchange; June data 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 on lines 23-28. 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 1978 11997744 11997755 11997766 AAccccoouunntt Nov. Dec. Feb. Mar. Apr. May June July Augf Savings and loan associations 1 Assets 295,545 338,233 391,907 455,644 459,282 469,726 475,320 480,986 487,091 491,616 498,341 504,348 2 Mortgages 249,301 278,590 323,005 376,468 381,216 387,644 392,479 397,335 402,356 408,019 412,008 416,801 3 Cash and investment securities1 23,251 30,853 35,724 40,522 39,197 41,646 41,870 41,901 42,493 41,553 43,676 44,173 4 Other 22,993 28,790 33,178 38,654 38,869 40,436 40,971 41,750 42,242 42,044 42,657 43,374 5 Liabilities and net worth 295,545 338,233 391,907 455,644 459,282 469,726 475,320 480,986 487,091 491,616 498,341 504,348 6 Savings capital 242,974 285,743 335,912 381,333 386,875 391,917 399,070 399,628 402,008 408,665 411,740 414,091 7 Borrowed money 24 J 80 20,634 19,083 25,540 27,796 28,666 29,274 31,838 32,689 34,183 35,633 37,140 8 FHLBB 21,508 17,524 15,708 18,275 19,945 20,602 21,030 22,692 23,323 24,875 26,151 27,375 9 Other 3,272 3,110 3,375 7,265 7,851 8,064 8,244 9,146 9,366 9,308 9,482 9,765 10 Loans in process 3,244 5,128 6.840 9,024 9,932 9,924 10,435 10,959 11,408 11,650 11,558 11,430 11 Other 6,105 6,949 8,074 13,846 9,498 13,456 10,511 12,194 14,252 10,081 12,016 13,901 12 Net worth2 18,442 19,779 21,998 25,001 25,181 25,763 26,030 26,367 26,734 27,037 27,394 27,786 13 MEMO: Mortgage loan commitments outstanding 3.. 7,454 10,673 14,826 21,270 19,886 20,625 22,320 23,409 23,951 22,936 22,401 22,032 Mutual savings banks 14 Assets 109,550 121,056 134,812 146,346 147,287 149,528 150,962 151,383 152,202 153,158 154,290 Loans: 15 Mortgage 74,891 77,221 81,630 87,333 88,195 89,247 89,800 90,346 90,915 91,535 92,217 16 Other 3,812 4,023 5,183 7,241 6,210 7,398 7,782 7,422 7,907 7,793 8,240 Securities: 17 U.S. Government 2,555 4,740 5,840 6,071 5,895 5,737 5,677 5,670 5,491 5,268 5,225 18 State and local government. 930 1,545 2,417 2,809 2,828 2,808 2,850 2,915 2,994 3,007 3,024 19 Corporate and otheH 22,550 27,992 33,793 37,221 37,918 38,605 38,964 39,146 39,225 39,447 39,673 20 Cash 2,167 2,330 2,355 1,887 2,401 1,838 1,990 1,940 1,798 2,188 2,033 21 Other assets 2,645 3,205 3,593 3,783 3,839 3,895 3,899 3,945 3,873 3,921 3,879 22 Liabilities 109,550 121,056 134,812 146,346 147,287 149,528 150,962 151,383 152,202 153,158 154,290 23 Deposits 98,701 109,873 122,877 132,537 134,017 135,200 136,997 136,931 137,307 138,674 139,093 24 Regular:5 98,221 109,291 121,961 131,319 132,744 133,846 135,558 135,349 135,785 137,062 137,403 25 Ordinary savings 64,286 69,653 74,535 77,460 78,005 77,837 78,783 78,170 78,273 77,269 76,053 26 Time and other 33,935 39,639 47,426 53,859 54,739 56,009 56,775 57,179 57,512 59,793 61,350 27 Other 480 582 916 1,208 1,272 1,354 1,439 1,582 1,521 1,612 1,690 28 Other liabilities 2,888 2,755 2,884 3.938 3,292 4,155 3,735 4,152 4,481 3,996 4,658 29 General reserve accounts.... 7,961 8,428 9,052 9,882 9,978 10,174 10,230 10,301 10,414 10,487 10,538 30 MEMO: Mortgage loan commitments outstanding 6.. 2,040 1,803 2,439 4,458 4,066 4,027 4,185 4,342 4,606 4,958 4,872 Life insurance companies 9 31 Assets 263,349 289,304 321,552 348,770 351,722 356,266 359,110 363,269 366,938 369,879 374,415 Securities: 32 Government 10,900 13,758 17,942 19,738 19,553 19,692 19,573 19,330 19,489 19,401 19,447 33 United States7. 3,372 4,736 5,368 5,704 5,315 5,373 5,229 5,087 5,206 4,984 5,006 34 State and local, 3,667 4,508 5,594 5,962 6,051 6,071 6,041 5,923 5,915 5,943 5,925 35 Foreign 8 3,861 4,514 6,980 8,072 8,187 8,248 8,303 8,320 8,368 8,474 8,516 36 Business 119,637 135,317 157,246 174,998 175,654 179,547 181,441 184,917 187,126 188,500 192,112 37 Bonds 97,717 107,256 122,984 141,349 141,891 147,509 148,849 150,419 152,267 153,812 156,207 38 Stocks 21,920 28,061 34,262 33,649 33,763 32,038 32,592 34,498 34,859 34,688 35,905 39 Mortgages 86,234 89,167 91,552 95,200 96,848 97,475 98,022 98,585 99,190 100,040 100,596 40 Real estate 8,331 9,621 10,476 11,010 11,060 11,218 11,213 11,269 11,537 11,540 11,562 41 Policy loans 22,862 24,467 25,834 27,413 27,556 27,839 28,024 28,246 28,431 28,649 28,843 42 Other assets 15,385 16,971 18,502 20,411 21,051 20,495 20,837 20,922 21,165 21,749 21,855 Credit unions 43 Total assets/liabilities and capital 31,948 38,037 45,225 53,141 54,084 54,989 56,703 56,827 58,018 59,381 59,152 44 Federal 16,715 20,209 24,396 28,954 29,574 30,236 31,274 31,255 31,925 32,793 32,679 45 State 15,233 17,828 20,829 24,187 24,510 24,753 25,429 25,572 26,093 26,588 26,473 46 Loans outstanding 24,432 28,169 34,384 41,427 42,055 42,331 43,379 44,133 45,506 47,118 47,620 47 Federal 12,730 14,869 18,311 22,224 22,717 22,865 23,555 23,919 24,732 25,762 25,970 48 State 11,702 13,300 16,073 19,203 19,338 19,466 19,824 20,214 20,774 21,356 21,650 49 Savings 27,518 33,013 39,173 45,977 46,832 48,093 49,706 49,931 50,789 52,076 51,551 50 Federal (shares) 14,370 17,530 21,130 25,303 25,849 26,569 27,514 27,592 28,128 28,903 28,627 51 State (shares and deposits) 13,148 15,483 18,043 20,674 20,983 21,524 22,192 22,339 22,661 23,173 22,924 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 DomesticN onfinancial Statistics • October 1978 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year TTTrrraaannnsssiiitttiiiooonnn FFFiiissscccaaalll qqquuuaaarrrttteeerrr FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr (((JJJuuulllyyy--- yyyeeeaaarrr 1977 1978 1978 111999777666 SSSeeepppttt... 111999777777 111999777666))) HI H2 HI June July Aug. U.S. Budget 1 Receipts1 300,005 81,772 357,762 190,278 175,820 210,650 47,657 29,194 35,040 2 Outlays1,2,3 366,451 94,742 402,803 200,350 216,781 222,518 38,602 36,426 39,572 3 Surplus, or deficit ( —) -66,446 -12,970 -45,041 -10,072 -40,961 -11,870 9,055 -7,232 -4,532 4 Trust funds 2,409 -1,952 7,833 7,332 4,293 4,334 1,597 -2,810 3,890 5 Federal funds 4 -68,855 -11,018 -52,874 -17,405 -45,254 -16,204 7,458 -4,421 -8,422 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays... -5,915 -2,575 -8,415 -2,075 -6,663 -5,105 -499 -824 -1,056 7 Other 2,5 -1,355 793 -269 -2,086 428 -790 -155 72 -525 U.S. Budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) -73,716 -14,752 -53,725 -14,233 -47,196 -17,765 8,401 --77,,998844 --66,,111133 Financed by: 9 Borrowing from the public 3. . .. 8822,,992222 18,027 53,516 16,480 40,284 23,374 5,401 33,,119955 99,,003399 10 Cash and monetary assets (decrease, or increase (—)) -7,796 -2,899 -2,238 -4,666 4,317 -5,098 -14,091 5,824 -956 11 Other 6 -1,396 -373 2,440 2,420 2,597 -511 289 -7,035 -1,970 MEMO ITEMS : 12 Treasury operating balance (level, end of period) 14,836 17,418 19,104 16,255 12,274 17,526 17,526 13,078 13,078 13 F.R. Banks 11,975 13,299 15,740 15,183 7,114 11,614 11,614 12,068 12,068 14 Tax and loan accounts 2,854 44,,111199 3,364 1,072 5,160 55,,991122 5,912 1,010 11,,001100 1155 Other demand accounts 7. 7 1 Effective June 1978, earned income credit payments in excess of Electrification; Telephone Revolving Fund, Rural Telephone Bank; and an individual's tax liability, formerly treated as income tax refunds, are Housing for the Elderly or Handicapped Fund until October 1977. classified as outlays 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 1977, 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. 9 Data for 1977 and 1978 have been revised by the American Council of Life Insurance. 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 1977 1978 1978 1976 Sept. 1977 1976) HI H2 HI June July Aug. Receipts 1 All sources1 300,005 81,772 357,762 190,278 175,820 210,650 47,657 29,194 35,040 2 Individual income taxes, net 131,602 38,800 157,626 78,816 82,911 90,336 20,301 14,590 14,784 3 Withheld 123,408 32,949 144,820 73,303 75,480 82,784 14,490 14,182 14,370 4 Presidential Election Campaign Fund 34 1 37 37 1 36 5 2 5 Nonwithheld 35,528 6,809 42,062 32,959 9,397 37,584 6,627 1,088 868 6 Refunds1 27,367 958 29,293 27,482 1,967 30,068 820 682 454 7 Corporation income taxes: 8 Gross receipts 46,783 9,808 60,057 37,133 25,121 38,496 15,054 2,127 1,509 9 Refunds 5,374 1,348 5,164 2,324 2,819 2,782 399 342 388 10 Social insurance taxes and contributions, net 92,714 25,760 108,683 58,099 52,347 66,191 9,287 9,518 15,587 11 Payroll employment taxes and contributions 2 76,391 21,534 88,196 45,242 44,384 51,668 8,383 7,960 12,191 12 Self-employment taxes and contributions 3 3,518 269 44,,001144 33,,668877 316 33,,889922 265 13 Unemployment insurance 8,054 2,698 1111,,331122 66,,557755 4,936 77,,880000 169 1,094 2,912 14 Other net receipts 4 A,152 1,259 55,,116622 22,,559955 2,711 22,,883311 470 464 484 15 Excise taxes 16,963 4,473 17,548 8,432 9,284 8,835 1,651 1,707 1,591 16 Customs deposits 4,074 1,212 5,150 2,519 2,848 3,320 653 596 681 17 Estate and gift taxes 5,216 1,455 7,327 4,332 2,837 2,587 436 407 515 18 Miscellaneous receipts 5 8,026 1,612 6,536 3,269 3,292 3,667 674 590 760 Outlays 9 19 AH types1,6 366,451 94,742 402,803 200,350 216,781 222,518 38,602 36,426 39,572 20 National defense 89,430 22,307 97,501 48,721 50,873 52,979 9,120 8,495 9,742 21 International affairs 6 5,567 2,180 4,831 2,522 2,896 2,904 1,099 231 987 22 General science, space, and technology 4,370 1,161 4,677 2,108 2,318 2,395 393 368 405 23 Energy 3,127 794 4,172 2,487 627 548 620 24 Natural resources and environment. 8,124 2,532 10,000 4,959 990 854 982 25 Agriculture 2,502 584 5,526 2,628 5,477 2,353 -165 183 386 26 Commerce and housing credit 3,795 1,391 -31 -946 -121 460 -110 27 Transportation 13,438 3,306 14,636 7,723 1,585 1,415 1,288 28 Community and regional development 4,709 1,340 6,283 3,149 4,924 5,928 983 859 1,218 29 Education, training, employment, and social services 18,737 5,162 20,985 9,775 10,800 12,792 2,222 2,099 2,716 30 Health 33,448 8,720 38,785 18,654 19,422 21,391 3,876 3,597 4,039 31 Income security1 127,406 32,795 137,905 70,785 71,081 75,201 12,512 11,641 12,266 32 Veterans benefits and services 18,432 3,962 18,038 9,382 9,864 9,603 2,433 610 1,529 33 Administration of justice 3,320 859 3,600 1,783 1,723 1,946 312 303 317 34 General government 2,927 878 3,357 1,587 1,749 1,803 293 186 340 35 General-purpose fiscal assistance.... 7,235 2,092 9,499 4,333 4,926 4,665 50 1,964 36 36 Interest ^ 34,589 7,246 38,092 18,927 19,962 22,280 6,617 3,013 3,539 37 Undistributed offsetting receipts -14,704 -2,567 -15,053 -6,803 -8,506 -7,945 -4,225 -402 -729 1 Effective June 1978, earned income credit payments in excess of an 8 Consists of interest received by trust funds, rents and royalties on individual's tax liability, formerly treated as income tax refunds, are the Outer Continental Shelf, and U.S. Govt, contributions for emclassified as outlays retroactive to January 1976. ployee retirement. 2 Old-age, disability and hospital insurance, and Railroad Retirement 9 For some types of outlays the categories are new or represent reaccounts. groupings; data for these categories are from the Budget of the United 3 Old-age, disability, and hospital insurance. States Government, Fiscal Year 1979; data are not available for half years 4 Supplementary medical insurance premiums, Federal employee re- or for months prior to February 1978. tirement contributions, and Civil Service retirement and disability fund. Two categories have been renamed: "Law enforcement and justice" 5 Deposits of earnings by F.R. Banks and other miscellaneous receipts. has become "Administration of justice" and "Revenue sharing and « Outlay totals reflect the reclassification of the Export-Import Bank general purpose fiscal assistance" has become "General purpose fiscal from off-budget status to unified budget status on Oct. 1, 1976. assistance.w 7 Effective September 1976, "Interest" and "Undistributed Offsetting In addition, for some categories the table includes revisions in figures Receipts" reflect the accounting conversion for the interest on special published earlier. issues for U.S. Govt, accounts from an accrual basis to a cash basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • October 1978 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1975 1976 1977 1978 IItteemm Dec. 31 June 30 Sept. 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 587.6 631.9 2646.4 665.5 685.2 709.1 729.2 747.8 758.8 2 Public debt securities 576.6 620.4 634.7 653.5 674.4 698.8 718.9 738.0 749.0 3 Held by public 437.3 470.8 488.6 506.4 523.2 543.4 564.1 585.2 587.9 139.3 149.6 146.1 147.1 151.2 155.5 154.8 152.7 161.1 5 Agency securities 10.9 11.5 11.6 12.0 10.8 10.3 10.2 9.9 9.8 6 Held by public 8.9 9.5 29.7 10.0 9.0 8.5 8.4 8.1 8.0 7 Held by agencies 2.0 2.0 1.9 1.9 1.8 1.8 1.8 1.8 1.8 8 Debt subject to statutory limit 577.8 621.6 635.8 654.7 675.6 700.0 720.1 739.1 750.2 9 Public debt securities 576.0 619.8 634.1 652.9 673.8 698.2 718.3 737.3 748.4 10 Other debt* 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 11 MEMO: Statutory debt limit 595.0 636.0 636.0 682.0 700.0 700.0 752.0 752.0 752.0 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 1978 Type and holder 1974 1975 1976 1977 May June July Aug. Sept. 1 Total gross public debt 492.7 576.6 653.5 718.9 741.6 749.0 750.5 764.4 771.5 By type: 2 Interest-bearing debt 491.6 575.7 652.5 715.2 740.6 748.0 749.5 763.4 767.0 3 Marketable 282.9 363.2 421.3 459.9 473.7 477.7 481.0 485.6 485.2 4 Bills 119.7 157.5 164.0 161.1 159.4 159.8 160.1 160.6 160.9 5 Notes 129.8 167.1 216.7 251.8 261.6 265.3 266.6 268.5 267.9 6 Bonds 33.4 38.6 40.6 47.0 52.7 52.6 54.4 56.4 56.4 7 Nonmarketable^ 208.7 212.5 231.2 255.3 266.9 270.3 268.4 227.8 281.8 8 Convertible bonds2 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 9 State and local government series .6 1.2 4.5 13.9 18.6 20.6 20.8 24.2 24.2 10 Foreign issues3 22.8 21.6 22.3 22.2 22.4 21.5 20.8 22.2 21.7 11 Savings bonds and notes 63.8 67.9 72.3 77.0 79.0 79.4 79.7 79.9 80.2 12 Government account series4 119.1 119.4 129.7 139.8 144.4 146.4 144.7 149.0 153.3 13 Non-interest-bearing debt 1.1 1.0 1.1 3.7 1.0 1.0 1.0 4.6 By holder:5 14 U.S. Government agencies and trust funds 138.2 145.3 149.6 154.8 159.1 161.1 159.3 15 F.R.Banks 80.5 84.7 94.4 102.5 102.8 110.1 108.9 16 Private investors 271.0 349.4 409.5 461.3 479.7 477.8 482.3 17 Commercial banks 55.6 85.1 103.8 101.4 98.4 98.5 97.7 18 Mutual savings banks 2.5 4.5 5.9 5.9 5.6 5.5 5.6 19 Insurance companies 6.2 9.5 12.7 15.1 14.9 14.7 15.0 20 Other corporations 11.0 20.2 26.5 22.7 19.7 19.0 20.0 21 State and local governments 29.2 34.2 41.6 55.2 60.2 62.7 61.7 Individuals: 22 Savings bonds 63.4 67.3 72.0 76.7 78.8 79.1 79.4 23 Other securities 21.5 24.0 28.8 28.6 28.9 29.0 29.0 24 Foreign and international6 58.8 66.5 78.1 109.6 119.7 119.3 120.5 25 Other miscellaneous investors7 22.8 38.0 38.9 46.1 53.5 50.3 53.4 1 Includes (not shown separately): Securities issued to the Rural 6 Consists of the investments of foreign balances and international Electrification Administration and to State and local governments, de- accounts in the United States. Beginning with July 1974, the figures exclude positary bonds, retirement plan bonds, and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 2 These nonmarketable bonds, also known as Investment Series B 7 Includes savings and loan associations, nonprofit institutions, cor- Bonds, may be exchanged (or converted) at the owner's option for porate pension trust funds, dealers and brokers, certain Govt, deposit per cent, 5-year marketable Treasury notes. Convertible bonds that have accounts, and Govt.-sponsored agencies. been so exchanged are removed from this category and recorded in the notes category above. NOTE.—Gross public debt excludes guaranteed agency securities and, 3 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 4 Held almost entirely by U.S. Govt, agencies and trust funds. the United States (U.S. Treasury Dept.); data by holder from Treasury 5 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 1978 1978 TTyyppee ooff hhoollddeerr 1976 1977 1976 1977 June July June July All maturities 1 to 5 years 1 All holders 421,276 459,927 477,699 481,041 141,132 151,264 174,302 175,250 2 U.S. Govt, agencies and trust funds 16,485 14,420 13,904 13,902 6,141 4,788 4,856 4,856 3 F. R. Banks 96,971 101,191 110,134 108,885 31,249 27,012 31,903 31,377 4 Private investors 307,820 344,315 353,660 358,255 103,742 119,464 137,543 139,017 5 Commercial banks 78,262 75,363 71,675 70,901 40,005 38,691 42,198 42,050 6 Mutual savings banks 4,072 4,379 3,736 3,869 2,010 2,112 2,077 2,179 7 Insurance companies 10,284 12,378 11,531 11,780 3,885 4,729 5,316 5,327 8 Nonfinancial corporations 14,193 9,474 6,390 6,839 2,618 3,183 3,280 3,707 9 Savings and loan associations 4,576 4,817 4,342 4,359 2,360 2,368 2,503 2,421 10 State and local governments 12,252 15,495 15,446 14,543 2,543 3,875 4,792 4,549 11 All others 184,182 222,409 240,540 245,964 50,321 64,505 77,377 78,784 Total, within 1 year 5 to 10 years 12 All holders 211,035 230,691 220,683 221,343 43,045 45,328 44,443 44,441 13 U.S. Govt, agencies and trust funds 2,012 1,906 1,145 1,145 2,879 2,129 1,989 1,987 14 F. R. Banks 51,569 56,702 57,005 56,580 9,148 10,404 11,995 11,880 15 Private investors 157,454 172,084 162,533 163,619 31,018 32,795 30,458 30,573 16 Commercial banks 31,213 29,477 20,988 19,993 6,278 6,162 6,538 6,714 17 Mutual savings banks 1,214 1,400 903 896 567 584 527 526 18 Insurance companies 2,191 2,398 1,455 1,557 2,546 3,204 2,616 2,707 19 Nonfinancial corporations 11,009 5,770 2,597 2,637 370 307 293 222 20 Savings and loan associations 1,984 2,236 1,656 1,744 155 143 112 122 21 State and local governments 6,622 7,917 6,235 5,662 1,465 1,283 1,257 1,230 22 All others 103,220 122,885 128,700 131,129 19,637 21,112 19,114 19,052 Bills, within 1 year 10 to 20 years 23 AH holders 163,992 161,081 159,757 160,092 11,865 12,906 14,894 16,638 24 U.S. Govt, agencies and trust funds 449 32 1 2 3,102 3,102 3,273 3,273 25 F. R. Banks 41,279 42,004 44,597 44,644 1,363 1,510 1,855 1,852 26 Private investors 122,264 119,035 115,158 115,446 7,400 8,295 9,766 11,513 27 Commercial banks 17,303 11,996 7,010 6,172 339 456 798 1,012 28 Mutual savings banks 454 484 233 193 139 137 123 139 29 Insurance companies 1,463 1,187 565 650 1,114 1,245 1,232 1,300 30 Nonfinancial corporations 9,939 4,329 1,309 1,218 142 133 130 138 31 Savings and loan associations 1,266 806 401 450 64 54 56 55 32 State and local governments 5,556 6,092 4,123 3,600 718 890 1,040 1,078 33 All others 86,282 94,152 101,516 103,173 4,884 5,380 6,387 7,790 Other, within 1 year Over 20 years 34 All holders 47,043 69,610 60,926 61,251 14,200 19,738 23,377 23,370 35 U.S. Govt, agencies and trust funds 1,563 1,874 1,144 1,143 2,350 2,495 2,641 2,640 36 F. R. Banks 10,290 14,698 12,408 11,936 3,642 5,564 7,376 7,197 37 Private investors 35,190 53,039 47,375 48,173 8,208 11,679 13,360 13,533 38 Commercial banks 13,910 15,482 13,978 13,821 427 578 1,153 1,132 39 Mutual savings banks 760 916 670 703 143 146 106 128 40 Insurance companies 728 1,211 890 907 548 802 911 889 41 Nonfinancial corporations 1,070 1,441 1,288 1,419 55 81 89 134 42 Savings and loan associations 718 1,430 1,255 1,294 13 16 16 16 43 State and local governments 1,066 3,875 2,112 2,062 904 1,530 2,123 2,024 44 All others 16,938 28,733 27,184 27,956 6,120 8,526 8,962 9,209 NOTE.—Direct public issues only. Based on Treasury Survey of Owner- banks, 464 mutual savings banks, and 728 insurance companies, each ship from Treasury Bulletin (U.S. Treasury Dept.). about 90 per cent; (2) 435 nonfinancial corporations and 485 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) 493 State and local but data for other groups include only holdings of those institutions govts., about 40 per cent. that report. The following figures show, for each category, the number "All others," a residual, includes holdings of all those not reporting and proportion reporting as of July 31, 1978; (1) 5,470 commercial in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • October 1978 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1978 1978, week ending Wednesday— IItteemm 11997755 11997766 11997777 June July Aug. July 19 July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 1 U.S. Government securities. . 6,027 10,449 10,838 9,704 8,829 11,526 7,522 9,986 12,540 13,817 11,638 10,663 By maturity: 2 Bills 3,889 6,676 6,746 5,982 5,367 6,074 5,040 5,989 6,782 6,033 6,235 6,309 3 Other within 1 year 223 210 237 386 428 386 259 561 749 467 499 258 4 1-5 years 1,414 2,317 2,318 1,931 1,524 2,251 921 1,985 2,516 2,729 2,046 1,768 5 5-10 years 363 1,019 1,148 675 668 1,619 605 677 1,167 2,783 1,807 1,270 6 Over 10 years 138 229 388 730 842 1,196 695 774 1,326 1,805 1,051 1,057 By type of customer: 7 U.S. Government securities dealers 885 1,360 1,267 1,210 1,053 942 1,052 11,,113344 11,,001111 11,,114422 983 859 8 U.S. Government securities brokers 1,750 3,407 3,709 3,393 3,299 4,988 2,791 3,654 5,322 6,088 5,026 4,653 9 Commercial banks 1,451 2,426 2,295 1,687 1,419 1,908 1,155 1,587 2,132 2,262 2,042 1,737 10 All others i 1,941 3,257 3,567 3,414 3,058 3,688 2,524 3,612 4,076 4,324 3,586 3,413 11 Federal agency securities.... 1,043 1,548 693 1,828 1,918 2,077 2,276 1,704 2,742 2,302 1,896 2,051 1 Includes, among others, all other dealers and brokers in commodities Transactions are market purchases and sales of U.S. Govt, securities 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 1978 1978, week ending Wednesday— IItteemm 11997755 11997766 11997777 June July Aug. June 28 July 5 July 12 July 19 July 26 Aug. 2 Positions2 1111 UUUU....SSSS.... GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss........ 5,884 7,592 5,172 2,942 633 2,753 1,506 634 381 -435 1,689 1,656 2222 BBBBiiiillllllllssss 4,297 6,290 4,772 2,862 1,260 2,330 1,550 730 1,043 640 2,120 1,960 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr 265 188 99 477 330 348 451 231 274 335 384 407 4444 1111----5555 yyyyeeeeaaaarrrrssss 886 515 60 38 -474 -64 206 -218 -595 -965 -229 143 5555 5555----11110000 yyyyeeeeaaaarrrrssss 300 402 92 -85 -321 218 -158 -156 -272 -293 -366 -448 136 198 149 -350 -162 -78 -544 46 -67 -151 -221 -405 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss................ 943 729 693 894 214 656 634 424 75 218 154 423 Sources of financing3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 6,666 8,715 9,877 11,120 r8,239 11,041 8,843 8,576 8,312 7,701 7,861 9,111 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss:::: 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,621 1,896 1,313 995 r38 608 -105 59 430 -169 -208 -39 11110000 OOOOuuuuttttssssiiiiddddeeee NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 1,466 1,660 1,987 2,728 1,759 2,370 2,234 2,066 1,968 1,495 1,509 1,953 11111111 CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnnssss1111 842 1,479 2,358 2,276 1,981 2,501 1,896 1,779 1,886 2,021 1,864 2,353 11112222 AAAAllllllll ooootttthhhheeeerrrrssss 2,738 3,681 4,170 5,121 4,460 5,563 4,817 4,672 4,029 4,353 4,696 4,843 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 1978 Agency 1975 1976 1977 Feb. Mar. Apr. May June July 1 Federal and Federally sponsored agencies 97,680 103,325 110,409 112,945 114,371 115,903 119,728 121,239 123,497 2 Federal agencies 19,046 21,896 23,245 23,284 23,695 23,766 23,864 23,983 24,145 3 Defense Department1 1,220 1,113 983 963 954 949 935 926 916 4 Export-Import Bank2-3 7,188 7,801 9,156 9,156 9,416 9,416 9,416 9,455 9,455 5 Federal Housing Administration4 564 575 581 602 607 607 608 606 603 6 Government National Mortgage Association participation certificates 5 4,200 4,120 3,743 3,743 3,743 3,701 3,701 3,701 3,666 7 Postal Service® 1,750 2,998 2,431 2,431 2,431 2,431 2,364 2,364 2,364 8 Tennessee Valley Authority 3,915 5,185 6,015 6,045 6,195 6,310 6,485 6,575 6,785 9 United States Railway Association6 209 104 336 344 349 352 355 356 356 10 Federally sponsored agencies 78,634 81,429 87,164 89,661 90,676 92,137 95,864 97,256 99,352 11 Federal home loan banks 18,900 16,811 18,345 19,893 20,007 20,163 22,217 22,306 23,430 12 Federal Home Loan Mortgage Corporation.. 1,550 1,690 1,686 1,768 1,768 1,639 1,637 1,937 1,937 13 Federal National Mortgage Association 29.963 30,565 31,890 32,553 33,350 34,024 35,297 36,404 36,900 14 Federal land banks 15,000 17,127 19,118 19,350 19,350 19,686 19,686 19,686 20,198 15 Federal intermediate credit banks 9,254 10,494 11,174 10,958 10,881 10,977 11,081 11,257 11,392 16 Banks for cooperatives 3,655 4,330 4,434 4,622 4,728 5,046 5,264 4,974 4,788 17 Student Loan Marketing Association7 310 410 515 515 590 600 680 690 705 18 Other 2 2 2 2 2 2 2 2 2 MEMO ITEMS : 19 Federal Financing Bank debt6'8 17,154 28,711 38,580 4400,,660055 4422,,116699 4422,,996644 43,871 44,504 45,550 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank3 4,595 5,208 55,,883344 5,834 6,094 6,094 6,094 6,132 6,132 21 Postal Service6 1,500 2,748 2,181 2,181 2,181 2,181 2,114 2,114 2,114 22 Student Loan Marketing Association7 310 410 515 515 590 600 680 690 705 23 Tennessee Valley Authority 1,840 3,110 4,190 4,220 4,370 4,485 4,660 4,750 4,960 24 United States Railway Association6 209 104 336 344 349 352 355 356 356 Other lending: 9 25 Farmers Home Administration 7,000 10.750 1166,,009955 17,545 18,050 19,120 20,090 20,910 21,580 26 Rural Electrification Administration 566 1,415 2 Ml 2,947 3,124 3,323 3,498 3,602 3,684 27 Other 1,134 4,966 6,782 7,019 7,411 6,809 6,380 5,950 6,019 1 Consists of mortgages assumed by the Defense Department between 7 Unlike other Federally sponsored agencies, the Student Loan 1957 and 1963 under family housing and homeowners assistance programs. Marketing Association may borrow from the Federal Financing Bank 2 Includes participation certificates reclassified as debt beginning (FFB) since its obligations are guaranteed by the Department of Health, Oct. 1, 1976. Education, and Welfare. 3 Off-budget Aug. 17,1974, through Sept. 30,1976; on-budget thereafter. 8 The FFB, which began operations in 1974, is authorized to purchase 4 Consists of debentures issued in payment of Federal Housing Ad- or sell obligations issued, sold, or guaranteed by other Federal agencies. ministration insurance claims. Once issued, these securities may be sold Since FFB incurs debt solely for the purpose of lending to other agencies, privately on the securities market. its debt is not included in the main portion of the table in order to avoid 5 Certificates of participation issued prior to fiscal 1969 by the Govern- double counting. ment National Mortgage Association acting as trustee for the Farmers 9 Includes FFB purchases of agency assets and guaranteed loans; Home Administration; Department of Health, Education, and Welfare; the latter contain loans guaranteed by numerous agencies with the Department of Housing and Urban Development; Small Business Ad- guarantees of any particular agency being generally small. The Farmers ministration ; and the Veterans Administration. Home Administration item consists exclusively of agency assets, while the 6 Off-budget. Rural Electrification Administration entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • October 1978 1.47 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1978 Type of issue or issuer, 1975 1976 1977 or use Mar. Apr. May June July Aug. 30,607 35,313 46,769 4,754 3,811 5,440 4,244 3,719 6,152 By type of issue: 16,020 18,040 18,042 1,426 1,363 2,216 1,972 1,031 2,142 1144,,551111 17,140 28,655 33,,332255 2,437 33,,220044 22,,226666 22,,668855 44,,000011 4 Housing Assistance Administration 2 76 133 72 3 11 20 6 3 9 By type of issuer: 7,438 7,054 6,354 409 237 873 912 650 919 7 Special district and statutory authority 12,441 15,304 21,717 2,606 1,861 2,186 1,383 2,023 2,885 8 Municipalities, counties, townships, school districts.... 10,660 12,845 18,623 1,735 1,702 2,360 1,944 1,043 2,339 9 Issues for new capital, total 29,495 32,108 36,189 3,068 2,595 3,134 3,816 3,389 3,331 By use of proceeds: 4,689 4,900 5,076 348 332 673 401 498 275 2.208 2,586 2,951 273 158 130 359 315 631 7,209 9,594 8,119 959 720 557 616 955 681 4,392 6,566 8,274 684 845 955 667 1,125 975 445 483 4,676 328 273 357 412 219 291 10,552 7,979 7,093 476 267 462 1,361 277 478 t Par amounts of long-term issues based on date of sale. SOURCE.—Public Securities Association. 2 Only bonds sold pursuant to the 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 1.48 NEW SECURITY ISSUES of Corporations Millions of dollars 1978 Type of issue or issuer, 1975 1976 1977 or use Jan. Feb. Mar. April May June 1 All issues 1 53,619 53,488 54,205 3,013 2,657 4,442 3,285 4,035 5,215 2 Bonds 42,756 42,380 42,193 2,380 2,131 3,620 2,811 2,996 3,810 By type of offering: 3 Public 32,583 26,453 24,186 1,382 1,464 1,902 ,958 1,719 1,744 4 Private placement 10,172 15,927 18,007 998 667 1,718 853 1,277 2,066 By industry group: 5 Manufacturing 16,980 13,264 12,510 268 716 1,155 534 837 1,105 6 Commercial and miscellaneous 2,750 4,372 5,887 280 87 428 421 314 562 7 Transportation 3,439 4,387 2,033 123 101 217 291 244 225 8 Public utility 9,658 8,297 8,261 284 205 631 505 885 815 9 Communication 3,464 2,787 3,059 519 9 291 35 344 10 Real estate and financial 6,469 9,274 10,438 907 898 ,027 714 761 1,012 11 Stocks 10,863 11,108 12,013 633 822 474 1,039 1,405 526 By type: 12 Preferred 3,458 2,803 3,878 171 138 148 235 390 586 13 Common 7,405 8,305 8,135 462 388 674 239 649 819 By industry group: 14 M anufacturing 1,670 2,237 1,265 5 74 15 41 366 15 Commercial and miscellaneous 1,470 1,183 1,838 138 91 94 183 90 245 16 Transportation 24 418 28 20 38 17 Public utility 6,235 6,121 6,058 360 260 627 238 800 429 18 Communication 1,002 776 1,379 25 5 19 Real estate and financial 488 771 1,054 136 150 28 10 88 320 i Figures, which represent gross proceeds of issues maturing in more companies other than closed-end, intracorporate transactions, and sales to than 1 year, sold for cash in the United States, are principal amount or foreigners. number of units multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as SOURCE.—Securities and Exchange Commission. defined in the Securities Act of 1933, employee stock plans, investment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.49 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1978 IItteemm 11997766 11997777 Feb. Mar. Apr. May June July Aug. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1 4,226 6,401 451 613 625 558 487 474 585 2 Redemptions of own shares2 6,802 6,027 348 459 580 831 757 645 882 3 -2,496 357 103 154 45 -273 -270 -181 -297 4 47,537 45,049 42,747 44,052 46,594 46,969 46,106 47,975 49,249 5 2,747 3,274 4.258 4,331 4,592 4,642 4,493 4,285 3,948 6 Other 44,790 41,775 38,489 39,721 42,002 42,327 41,613 43,690 43,301 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. 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 Account 1975 1976 1977 Q4 Q1 Q2 Q3 Q4 Ql Q2 1 Profits before tax 120.4 155.9 173.9 154.6 164.8 175.1 177.5 178.3 172.1 205.5 2 Profits tax liability 49.8 64.3 71.8 62.4 68.3 72.3 72.8 73.9 70.0 85.0 3 Profits after tax 70.6 91.6 102.1 92.2 96.5 102.8 104.7 104.4 102.1 120.5 4 Dividends 31.9 37.9 43.7 41.4 41.5 42.7 44.1 46.3 47.0 48.1 38.7 53.7 58.4 50.8 55.0 60.1 60.6 58.1 55.1 72.4 89.2 97.1 106.0 100.5 102.0 105.0 107.6 109.3 111.3 113.3 7 Net cash flow 127.9 150.8 164.4 151.3 157.0 165.1 168.2 167.4 166.4 185.7 SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • October 1978 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1976 1977 1978 AAccccoouunntt 11997744 11997755 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Current assets 734.6 756.3 801.7 817.4 823.1 842.0 856.4 880.3 900.1 921.8 2 Cash 73.0 80.0 80.7 79.5 86.8 80.8 83.1 83.4 94.2 88.3 3 U.S. Government securities 11.3 19.6 23.4 24.1 26.0 26.8 22.1 21.5 20.9 20.8 4 Notes and accounts receivable 265.5 272.1 290.2 297.9 292.4 304.1 312.8 326.9 325.7 336.8 5 Inventories 318.9 314.7 333.7 342.2 341.4 352.1 358.8 367.5 375.0 389.5 6 Other 65.9 69.9 73.6 73.6 76.4 78.3 79.6 81.0 84.3 86.4 7 Current liabilities 451.8 446.9 470.3 484.0 487.5 502.6 509.5 528.9 543.2 564.6 8 Notes and accounts payable 272.3 261.2 269.5 271.2 273.2 280.2 286.8 297.8 306.8 316.3 9 Other 179.5 185.7 200.8 212.8 214.2 222.4 222.7 231.1 236.3 248.3 10 Net working capital 282.8 309.5 331.4 333.4 335.6 339.5 346.9 351.4 357.0 357.2 11 MEMO : Current ratio1 1.626 1.693 1.705 1.689 1.688 1.675 1.681 1.664 1.657 1.633 I (Total current assets)/(Total current liabilities). SOURCE.—Federal Trade Commission. NOTE.—For a description of this series see "Working Capital of Nonfinancial Corporations" in the July 1978 BULLETIN, pp. 533-37. 1.52 BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1977 1978 IInndduussttrryy 11997777 1199778822 Ql Q2 Q3 Q4 Ql Q2 Q32 Q42 1 All industries 135.72 152.28 130.16 134.24 140.38 138.11 144.25 150.76 155.13 158.98 Manufacturing 2 Durable goods industries 27.75 31.53 26.30 2277..2266 29.23 28.19 28.72 31.40 32.11 33.89 3 Nondurable goods industries 32.33 36.23 30.13 32.19 33.79 33.22 32.86 35.80 36.54 39.72 Nonmanufacturing 4 Mining 4.49 4.78 44..2244 4.49 4.74 4.50 4.45 4.81 4.80 5.07 Transportation : 5 Railroad 2.82 3.28 2.71 2.57 3.20 2.80 3.35 3.09 3.64 3.05 6 Air 1.63 2.45 1.62 1.43 1.69 1.76 2.67 2.08 2.97 2.08 7 Other 2.55 2.27 2.96 2.96 1.96 2.32 2.44 2.23 2.37 2.05 Public utilities: 8 Electric 21.57 24.49 21.19 21.14 21.90 22.05 23.15 23.83 25.04 25.94 9 Gas and other 4.21 4.48 4.16 4.16 4.32 4.18 4.78 4.62 4.22 4.28 1 11 0 11 C C o o m mm m e u r n c i i c a a l ti a o n n d other * 22 1 22 5 .. . 99 4 55 3 22 1 22 4 .. . 66 1 77 9 22 1 22 5 .. . 77 3 33 2 22 1 33 6 .. . 11 4 44 0 22 1 33 5 .. . 22 8 77 2 22 1 44 7 .. . 77 0 66 7 22 1 44 8 .. . 77 1 11 8 }}} 444333...444444 444222...999000 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 1977 1978 AAccccoouunntt 11997722 11997733 11997744 11997755 11997766 Q2 Q3 Q4 Q1 Q2 ASSETS Accounts receivable, gross 1 Consumer 31.9 35.4 36.1 36.0 38.6 40.7 42.3 44.0 44.5 47.1 2 Business 27.4 32.3 37.2 39.3 44.7 50.4 50.6 55.2 57.6 59.5 3 Total 59.3 67.7 73.3 75.3 83.4 91.2 92.9 99.2 102.1 106.6 4 LESS: Reserves for unearned income and losses 7.4 8.4 9.0 9.4 10.5 11.1 11.7 12.7 12.8 14.1 5 Accounts receivable, net 51.9 59.3 64.2 65.9 72.9 80.1 81.2 86.5 89.3 92.6 6 Cash and bank deposits 2.8 2.6 3.0 2.9 2.6 2.5 2.5 2.6 2.2 2.9 7 Securities .9 .8 .4 1.0 1.1 1.2 1.8 .9 1.2 1.3 8 All other 10.0 10.6 12.0 11.8 12.6 13.7 14.2 14.3 15.0 16.2 9 Total assets 65.6 73.2 79.6 81.6 89.2 97.5 99.6 104.3 107.7 112.9 LIABILITIES 10 Bank loans 5.6 7.2 9.7 8.0 6.3 5.7 5.4 5.9 5.8 5.4 11 Commercial paper 17.3 19.7 20.7 22.2 23.7 27.5 25.7 29.6 29.9 31.3 Debt: 12 Short-term, n.e.c 4.3 4.6 4.9 4.5 5.4 5.5 5.4 6.2 5.3 6.6 13 Long-term, n.e.c 22.7 24.6 26.5 27.6 32.3 35.0 34.8 36.0 38.0 40.1 14 Other 4.8 5.6 5.5 6.8 8.1 9.4 13.7 11.5 12.9 13.6 15 Capital, surplus, and undivided profits 10.9 11.5 12.4 12.5 13.4 14.4 14.6 15.1 15.7 16.0 65.6 73.2 79.6 81.6 89.2 97.5 99.6 104.3 107.7 112.9 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 AAAccccccooouuunnntttsss receivable during— rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannnddd--iiinnnggg JJJuuulllyyy 333111,,, 1978 1978 1978 111999777888111 May June July May June July May June July 1 Total 58,859 545 560 284 14,786 14,994 14,688 14,241 14,434 14,404 2 Retail automotive (commercial vehicles) 13,600 223 400 111 1,155 1,314 1,073 932 914 962 3 Wholesale automotive 1111,,440011 1 -472 103 6,195 55,,770055 66,,114488 6,194 6,177 66,,004455 4 Retail paper on business, industrial, and farm equipment 15,472 182 283 210 1,153 1,194 1,324 971 911 1,114 5 Loans on commercial accounts receivable... 4,128 59 182 -140 2,943 3,314 2,748 2,884 3,132 2,888 6 Factored commercial accounts receivable.... 2,455 51 104 -11 1,663 1,743 1,716 1,612 1,639 1,727 7 All other business credit 11,803 29 63 11 1,677 1,724 1,679 1,648 1,661 1,668 i Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • October 1978 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1978 Item 1975 1976 1977 Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms:1 1 Purchase price (thous. dollars) 44.6 48.4 54.3 58.8 61.6 59.8 62.6 r61.9 63.6 2 Amount of loan (thous. dollars) 33.3 35.9 40.5 43.5 45.7 44.2 45.9 r45.3 46.4 3 74.7 74.2 76.3 75.5 76.1 75.5 75.6 r75.3 75.3 4 Maturity (years) 26.8 27.2 27.9 27.4 28.4 27.7 28.3 28.2 28.0 5 Fees and charges (per cent of loan amount)2. 1.54 1.44 1.33 1.37 1.44 1.34 1.40 1.40 1.43 6 Contract rate (per cent per annum) 8.75 8.76 8.80 9.03 9.07 9.14 9.23 9.34 9.45 Yield (per cent per annum): 7 FHLBB series3 9.01 8.99 99..0011 9.26 9.30 9.37 9.46 9.57 9.70 8 HUD series4 9.10 8.99 8.95 9.30 9.40 9.60 9.75 9.80 9.80 SECONDARY MARKETS Yields (per cent per annum): t) 9.19 8.82 7.96 9.29 9.37 9.67 9.92 9.78 10 8.52 8.17 8.04 8.60 8.71 8.71 9.05 9.16 8.96 FNMA auctions:7 11 9.26 8.99 8.73 9.35 9.44 9.66 9.91 10.01 9.81 12 Conventional loans 9.37 9.11 8.98 9.61 9.72 9.90 10.10 10.19 10.11 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 3311,,882244 32,904 34,370 36,030 36,702 37,937 38,753 39,409 40,325 14 19,732 18,916 18,457 18,759 18,950 19,382 19,608 19,763 20,034 15 VA-guaranteed 9,573 9,212 9,315 9,727 9,905 10,255 10,398 10,457 10,535 16 2,519 4,776 6,597 7,543 7,847 8,300 8,747 9,189 9,752 Mortgage transactions (during period) 17 Purchases 4,263 3,606 497 891 937 11,,555511 11,,114488 945 11,,223300 1188 Sales 2 8866 4 Mortgage commitments:8 19 Contracted (during period) 6,106 6,247 1,333 1,563 2,119 3,439 1,517 927 527 20 4,126 3,398 4,698 7,445 8,486 10,271 10,395 10,171 9,419 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9 7,042.6 4,929.8 1,184.5 523.7 909.3 2,117.7 1,095.0 756.7 499.1 22 33,,884488..33 22,,778877..22 794.0 334.9 529.2 1,093.7 636.6 471.5 277.2 Conventional loans: 23 Offered 9 1,401.3 2,595.7 591.6 823.5 974.2 1,935.8 574.5 316.0 224.7 24 765.0 1,879.2 359.4 512.5 578.1 968.3 342.0 178.9 128.5 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total 4,987 44,,226699 3,276 3,372 3,092 2,878 2,255 2,024 2,448 26 FHA/VA 1,824 1,618 1,395 1,387 1,373 1,356 1,338 1,321 1,304 27 Conventional 3,163 2,651 1,881 1,985 1,719 1,522 917 702 1,144 Mortgage transactions (during period) 28 1,716 11,,117755 448899 344 356 479 500 520 742 29 Sales 1,020 1,396 477 120 466 651 1,093 725 299 Mortgage commitments:11 30 Contracted (during period) 982 1,477 361 593 512 811 762 737 838 31 111 333 1,063 1,233 1,346 1,640 rl,870 2,055 2,142 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 1977 1978 Type of holder, and type of property 1973 1974 1975 1976 Q3 Q4 Q1 Q2 P 1 All holders 682,321 742,512 801,537 889,327 986,395 1,023,470 1,052,358 1,089,740 2 1- to 4-family 416,211 449,371 490,761 556,557 630,498 656,159 675,556 701,238 3 Multifamily 93,132 99,976 100,601 104,516 109,389 111,809 114,206 116,940 4 Commercial 131,725 146,877 159,298 171,223 182,510 189,834 194,550 200,668 5 Farm 41,253 46,288 50,877 57,031 63,998 65,668 68,046 70,894 6 Major financial institutions 505,400 542,560 581,193 647,650 718,153 745,064 764,665 792,152 7 Commercial banks1 119,068 132,105 136,186 151,326 171,166 178,979 184,423 193,223 8 1- to 4-family 67,998 74,758 77,018 86,234 100,474 105,115 108,699 113,886 9 Multifamily 6,932 7,619 5,915 8,082 8,815 9,215 9,387 9,816 10 Commercial 38,696 43,679 46,882 50,289 54,260 56,898 58,407 61,194 11 Farm 5,442 6,049 6,371 6,721 7,617 7,751 7,930 8,327 12 Mutual savings banks 73,230 74,920 77,249 81,639 86,079 88,104 89,800 91,382 13 1-to 4-family 48,811 49,213 50,025 53,089 56,313 57,637 58,747 59,782 14 Multifamily 12,343 12,923 13,792 14,177 14,952 15,304 15,398 15,873 15 Commercial 12,012 12,722 13,373 14,313 14,762 15,110 15,401 15,672 16 Farm 64 62 59 60 52 53 54 55 17 Savings and loan associations 231,733 249,301 278,590 323,130 366,838 381,216 392,479 407,943 18 1-to 4-family 187,078 200,987 223,903 260,895 298,459 310,728 319,910 332,514 19 Multifamily 22,779 23,808 25,547 28,436 31,585 32,518 33,478 34,798 20 Commercial 21,876 24,506 29,140 33,799 36,794 37,969 39,091 40,631 21 Life insurance companies 81,369 86,234 89,168 91,555 94,070 96,765 97,963 99,604 22 1-to 4-family 20,426 19,026 17,590 16,088 15,022 14,727 14,476 14,226 23 Multifamily 18,451 19,625 19,629 19,178 18,831 18,807 18,851 19,165 24 Commercial 36,496 41,256 45,196 48,864 51,742 54,388 55,426 56,631 25 Farm 5,996 6,327 6,753 7,425 8,475 8,843 9,210 9,582 26 Federal and related agencies 46,721 58,320 66,891 66,753 69,068 70,006 72,014 74,783 27 Government National Mortgage Assn. 4,029 4,846 7,438 4,241 3,599 3,660 3,291 3,200 28 1- to 4-family 1,455 2,248 4,728 1,970 1,522 1,548 948 922 29 Multifamily 2,574 2,598 2,710 2,271 2,077 2,112 2,343 2,278 30 Farmers Home Admin 1,366 1,432 1,109 1,064 1,292 1,353 1,179 1,429 31 1- to 4-family 743 759 208 454 548 626 202 245 32 Multifamily 29 167 215 218 192 275 408 495 33 Commercial 218 156 190 72 142 149 218 264 34 Farm 376 350 496 320 410 303 351 425 35 Federal Housing and Veterans Admin. 3,476 4,015 4,970 5,150 5,130 5,212 5,219 5,289 36 1- to 4-family 2,013 2,009 1,990 1,676 1,566 1,627 1,585 1,607 37 Multifamily 1,463 2,006 2,980 3,474 3,564 3,585 3,634 3,682 38 Federal National Mortgage Assn... . 24,175 29,578 31,824 32,904 34,148 34,369 36,029 38,753 39 1- to 4-family 20,370 23,778 25,813 26,934 28,178 28,504 30,208 32,974 40 Multifamily 3,805 5,800 6,011 5,970 5,970 5,865 5,821 5,779 41 Federal land banks 11,071 13,863 16,563 19,125 21,523 22,136 22,925 23,857 42 1-to 4-family 123 406 549 601 649 670 691 727 43 Farm 10,948 13,457 16,014 18,524 20,874 21,466 22,234 23,130 44 Federal Home Loan Mortgage Corp., 2,604 4,586 4,987 4,269 3,376 3,276 3,371 2,255 45 1- to 4-family 2,446 4,217 4,588 3,889 2,818 2,738 2,785 1,856 46 Multifamily 158 369 399 380 558 538 586 399 47 Mortgage pools or trusts2 18,040 23,799 34,138 49,801 64,667 70,289 74,080 77,917 48 Government National Mortgage Assn. 7,890 11,769 18,257 30,572 41,089 44,896 46,357 48,032 49 1- to 4-family 7,561 11,249 17,538 29,583 39,865 43,555 44,906 46,515 50 Multifamily 329 520 719 989 1,224 1,341 1,451 1,517 51 Federal Home Loan Mortgage Corp. 766 757 1,598 2,671 5,332 6,610 7,471 9,134 52 1- to 4-family 617 608 1,349 2,282 4,642 5,621 6,286 7,685 53 Multifamily 149 149 249 389 690 989 1,185 1,449 54 Farmers Home Admin 9,384 11,273 14,283 16,558 18,426 18,783 20,252 20,751 55 1- to 4-family 5,458 6,782 9,194 10,219 11,127 11,379 12,235 12,536 56 Multifamily 138 116 295 532 768 759 732 750 57 Commercial 1,124 1,473 1,948 2,440 2,824 2,945 3,528 3,615 58 Farm 2,664 2,902 2,846 3,367 3,527 3,682 3,757 3,850 59 Individuals and others3 112,160 117,833 119,315 125,123 134,507 138,111 141,599 144,888 60 1- to 4-family 51 ,112 53,331 56,268 62,643 69,315 71,665 73,878 75,763 61 Multifamily 23,982 24,276 22,140 20,420 20,163 20,501 20,732 20,939 62 Commercial 21,303 23,085 22,569 21,446 21,986 22,375 22,479 22,661 63 Farm 15,763 17,141 18,338 20,614 23,043 23,570 24,510 25,525 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 DomesticN onfinancial Statistics • October 1978 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1978 Holder, and type of credit 1975 1976 1977 Feb. Mar. Apr. May June July Aug. Amounts outstanding (end of period) 1 Total 164,955 185,489 216,572 216,297 219,203 222,mi 227,561 233,416 237,197 242,538 By holder: 2 Commercial banks 78,667 89,511 105,291 105,663 107,166 109,336 111,673 114,756 117,110 119,889 3 Finance companies 35,994 38,639 44,015 44,107 44,486 45,182 46,136 47,147 47,967 48,982 4 Credit unions 25,666 30,546 37,036 37,217 38,185 38,750 39,951 41,388 41,802 42,931 5 Retailers1 18,002 19,052 21,082 20,060 19,920 19,941 20,141 20,310 20,432 20,655 6 Others2 6,626 7,741 9,149 9,250 9,446 9,528 9,660 9,815 9,886 10,081 By type of credit: 7 Automobile 55,879 66,116 79,352 79,984 81,666 83,490 85,954 88,767 90,671 92,956 8 Commercial banks 31,553 37,984 46,119 46,547 47,534 48,731 50,119 51,714 52,938 54,224 9 Indirect 18,353 21,176 25,370 25,696 26,327 27,049 27,854 28,773 29,496 30,202 10 Direct 13,200 16,808 20,749 20,851 21,207 21,682 22,265 22,941 23,442 24,022 11 Finance companies 11,155 12,489 14,263 14,374 14,577 14,921 15,382 15,863 16,327 16,753 12 Credit unions 12,741 15,163 18,385 18,475 18,955 19,239 19,835 20,549 20,754 21,314 13 Others 430 480 585 588 600 599 618 641 652 665 14 Mobile homes 14,423 14,572 15,014 14,973 15,062 15,156 15,220 15,309 15,438 15,577 15 Commercial banks 8,649 8,734 8,862 8,807 8,845 8,876 8,912 8,967 9,061 9,117 16 Finance companies 3,451 3,273 3,109 3,098 3,085 3,095 3,098 3,103 3,123 3,139 17 Home improvement 9,405 10,990 12,952 12,968 13,162 13,375 13,691 14,037 14,260 14,633 18 Commercial banks 4,965 5,554 6,473 6,436 6,479 6,598 6,782 6,971 7,129 7,331 Revolving credit: 19 Bank credit cards 9,501 11,351 14,262 14,174 14,142 14,345 14,456 14,929 15,288 15,857 20 Bank check credit 2,810 3,041 3,724 3,822 3,844 3,856 3,919 3,996 4,043 4,178 21 Allother 72,937 79,418 91,269 90,376 91,327 92,515 94,321 96,378 97,497 99,337 22 Commercial banks, total 21,188 22,847 25,850 25,877 26,322 26,930 27,485 28,179 28,651 29,182 23 Personal loans 14,629 15,669 17,740 17,769 18,002 18,383 18,640 19,049 19,301 19,655 24 Finance companies, total. 21,238 22,749 26,498 26,489 26,675 27,012 27,496 28,012 28,336 28,898 25 Personal loans 17,263 18,554 21,302 21,283 21,416 21,700 22,110 22.547 22,906 23,344 26 Credit unions 10,754 12,799 15,518 15,594 15,999 16,232 16,735 17,337 17,511 17,984 27 Retailers 18,002 19,052 21,082 20,060 19,920 19,941 20,141 20,310 20,432 20,655 28 Others 1,755 1,971 2,321 2,356 2,411 2,400 2,464 2,540 2,567 2,618 Net change (during period)3 29 Total 7,504 20,533 31,090 2,661 4,068 3,719 3,857 3,792 3,301 2,986 By holder: 30 Commercial banks 2,821 10,845 15,779 1,280 2,021 2,001 1,881 1,960 1,915 1,645 31 Finance companies -90 2,644 5,376 418 662 781 763 553 605 607 32 3,771 4,880 6,490 603 836 699 911 836 369 508 33 Retailers * 69 1,050 2,032 202 367 129 170 282 364 45 34 Others 2 933 1,115 1,413 158 182 109 132 161 48 181 By type of credit: 35 3,007 10,238 13,235 1,104 1,522 1,728 1,789 1,543 1,520 1,446 36 Commercial banks 559 6,431 8,135 599 882 989 944 946 937 894 37 Indirect -334 2,823 4,194 389 564 603 575 554 553 464 38 Direct 894 3,608 3,941 210 318 386 369 392 384 430 39 Finance companies 532 1,334 1,774 201 238 375 367 199 371 260 40 Credit unions 1,872 2,422 3,222 300 406 343 465 383 206 261 41 Other 44 50 105 4 -4 21 13 15 6 31 42 Mobile homes -195 150 441 23 108 95 58 15 104 87 43 Commercial banks -323 85 128 2 46 28 33 — 1 79 26 44 Finance companies -73 -177 -164 -9 2 11 -3 -7 14 7 45 Home improvement 881 1,585 1,967 171 217 212 222 209 156 229 46 Commercial banks 211 588 920 69 74 111 109 95 101 123 Revolving credit: 47 Bank credit cards 1,220 1,850 22,,991111 285 448 311 263 362 398 280 48 14 231 683 87 120 56 129 90 27 44 49 Allother 2,577 6,479 11,853 991 1,653 1,317 1,396 1,573 1,096 900 50 Commercial banks, total 1,080 1,659 3,003 238 451 506 403 468 373 278 51 Personal loans 858 1,040 2,070 167 263 333 207 303 220 154 52 Finance companies, total -348 1,509 3,749 223 419 387 395 358 210 329 53 Personal loans 279 1,290 2,748 183 309 307 327 301 238 236 54 Credit unions 1,580 2,045 2,719 252 358 301 371 383 133 212 55 Retailers 69 1,050 2,032 202 367 129 170 282 364 45 56 Others 196 217 350 76 58 -6 57 82 16 36 1 Excludes 30-day charge credit held by retailers, oil and gas companies, NOTE.—Total consumer noninstalment credit outstanding—credit and travel and entertainment companies. scheduled to be repaid in a lump sum, including single-payment loans, 2 Mutual savings banks, savings and loan associations, and auto dealers. charge accounts, and service credit—amounted to $44.2 billion at the end 3 Net change equals extensions minus liquidations (repayments, charge- of 1977, $38.7 billion at the end of 1976, $35.7 billion at the end of 1975, offs, and other credits); figures for all months are seasonally adjusted. and $33.8 billion at the end of 1974. Comparable data for Dec. 31, 1978 will be published in the February 1979 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 1978 Holder, and type of credit 1975 1976 1977 Feb. Mar. Apr. May June July Aug. Extensions3 1 Total 164,169 193,328 225,645 20,179 21,595 22.117 22,336 22,680 22,332 22,632 By holder: 2 Commercial banks 77,312 94,220 110,777 9,905 10,608 11,120 11,004 11,329 11,315 11,474 3 Finance companies 31,173 36,028 41,770 3,691 3,914 4,226 4,241 4,113 4,078 4,214 4 Credit unions 24,096 28,587 33,592 3,028 3,309 3,267 3,508 3,433 3,128 3,271 5 Retailers1 27,049 29,188 33,202 2,976 3,148 2,955 2,995 3,185 3,300 2,995 6 Others2 4,539 5,305 6,303 579 616 549 588 620 511 678 By type of credit: 7 Automobile 51,413 62,988 72,888 6,400 6,822 7,248 7,387 7,241 7,156 7,399 8 Commercial banks 28,573 36,585 42,570 3,700 3,924 4,212 4,189 4,178 4,267 4,349 9 Indirect 15,766 19,882 22,904 2,065 2,173 2,347 2,327 2,305 2,329 2,370 10 Direct 12,807 16,704 19,666 1,635 1,751 1,865 1,862 1,873 1,938 1,979 11 Finance companies 9,674 11,209 12,635 1,080 1,173 1,314 1,337 1,278 1,208 1,324 12 Credit unions 12,683 14,675 17,041 1,565 1,679 1,654 1,798 1,721 1,624 1,644 13 Others 483 518 642 55 46 68 63 64 57 82 14 Mobile homes 4,323 4,841 5,244 406 502 508 490 460 517 546 15 Commercial banks 2,622 3,071 3,153 236 284 279 294 271 334 310 16 Finance companies 764 690 651 62 74 85 74 69 81 78 17 Home improvement 5,556 6,736 8,066 710 770 753 798 801 736 850 18 Commercial banks 2,722 3,245 3,968 338 352 382 395 390 390 429 Revolving credit: 19 Bank credit cards 20,428 25,862 31,761 3,143 3,231 3,255 3,245 3,482 3,466 3,499 20 Bank check credit 4,024 4,783 5,886 535 608 646 677 694 599 625 21 All other 78,425 88,117 101,801 8,985 9,662 9,707 9,739 10,002 9,858 9,713 22 Commercial banks, total. 18,944 20,673 23,439 1,953 2,209 2,346 2,204 2,314 2,259 2,262 23 Personal loans 13,386 14,480 16,828 1,405 1,537 1,669 1,511 1,614 1,574 1,587 24 Finance companies, total, 20,657 24,087 28,396 2,541 2,659 2,814 2,819 2,755 2,773 2,793 25 Personal loans 16,944 19,579 22,348 1,989 2,105 2,226 2,273 2,231 2,211 2,194 26 Credit unions 10,134 12,340 14,604 1,288 1,429 1,431 1,500 1,501 1,335 1,444 27 Retailers 27,049 29,188 33,202 2,976 3,148 2,955 2,995 3,185 3,300 2,995 28 Others 1,642 1,830 2,160 227 217 161 221 247 191 219 Liquidations3 29 Total 156,665 172,795 194,555 17,518 17,527 18,398 18,479 18,888 19,031 19,646 By holder: 30 Commercial banks 74,491 83,376 94,998 8,625 8,587 9,119 9,123 9,369 9,400 9,829 31 Finance companies 31,263 33,384 36,394 3,273 3,252 3,445 3,478 3,560 3,473 3,607 32 Credit unions 20,325 23,707 27,103 2,425 2,473 2,568 2,597 2,597 2,759 2,763 33 Retailers1 26,980 28,138 31,170 2,774 2,781 2,826 2,825 2,903 2,936 2,950 34 Others2 3,606 4,191 4,890 421 434 440 456 459 463 497 By type of credit: 35 Automobile 48,406 52,750 59,652 5,296 5,300 5,520 5,598 5,698 5,636 5,953 36 Commercial banks 28,014 30,154 34,435 3,101 3,042 3,223 3,245 3,232 3,330 3,455 37 Indirect 16,101 17,059 18,710 1,676 1,609 1,744 1,752 1,751 1,776 1,906 38 Direct 11,913 13,095 15,726 1,425 1,433 1,479 1,493 1,481 1,554 1,549 39 Finance companies 9,142 9,875 10,819 879 935 939 970 1,079 837 1,064 40 Credit unions 10,811 12,253 13,819 1,265 1,273 1,311 1,333 1,338 1,418 1,383 41 Others 439 468 536 51 50 47 50 49 51 51 42 Mobile homes 4,517 4,691 4,802 383 394 413 432 445 413 459 43 Commercial banks 2,944 2,986 3,025 234 238 251 261 272 255 284 44 Finance companies 837 867 806 71 72 74 77 76 67 71 45 Home improvement 4,675 5,151 6,098 539 553 541 576 592 580 621 46 Commercial banks 2,451 2,657 3,048 269 278 271 286 295 289 306 Revolving credit: 47 Bank credit cards 19,208 24,012 28,851 2,858 '2,783 2,944 2,982 3,120 3,068 3,219 48 Bank check credit 4,010 4,552 5,202 448 488 590 548 604 572 581 49 All other 75,849 81,638 89,948 7,994 8,009 8,390 8,343 8,429 8,762 8,813 50 Commercial banks, total 17,864 19,014 20,436 1,715 1,758 1,840 1,801 1,846 1,886 1,984 51 Personal loans 12,528 13,439 14,757 1,238 1,274 1,336 1,304 1,311 1,354 1,433 52 Finance companies, total 21,005 22,578 24,647 2,318 2,240 2,427 2,424 2,397 2,563 2,464 53 Personal loans 16,665 18,289 19,600 1,806 1,796 1,919 1,946 1,930 1,973 1,958 54 Credit unions 8,554 10,295 11,884 1,036 1,071 1,130 1,129 1,118 1,202 1,232 55 Retailers 26,980 28,138 31,170 2,774 2,781 2,826 2,825 2,903 2,936 2,950 56 Others 1,446 1,613 1,811 151 159 167 164 165 175 183 1 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 • October 1978 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1977 1978 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1972 1973 1974 1975 1976 1977 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors ! Total funds raised 176.0 203.5 188.0 208.5 272.1 340.5 303.8 300.6 390.6 367.1 380.6 370.5 2 Excluding equities 165.5 196.1 184.9 198.0 261.7 337.4 303.6 298.4 385.0 362.5 380.9 370.0 By sector and instrument: 3 U.S. Government 15.1 8.3 11.8 85.4 69.0 56.8 47.3 37.8 80.1 61.9 66.1 48.5 4 Public debt securities 14.3 7.9 12.0 85.8 69.1 57.6 48.0 38.2 82.2 62.2 61A 49.0 5 Agency issues and mortgages .8 .4 -.2 -.4 —. 1 -.9 -.7 -.4 -2.1 -.3 -1.4 -.5 6 All other nonfinancial sectors 160.9 195.2 176.2 123.1 203.0 283.8 256.5 262.8 310.5 305.2 314.6 322.0 7 Corporate equities 10.5 7.4 3.1 10.5 10.4 3.1 .1 2.2 5.6 4.6 -.3 .5 8 Debt instruments 150.4 187.9 173.1 112.6 192.6 280.6 256.3 260.6 304.9 300.6 314.9 321.6 9 Private domestic nonfinancial sectors. . 156.9 189.3 161.6 109.5 182.8 271.4 250.4 253.8 288.5 292.9 301.4 300.0 10 Corporate equities 10.9 7.9 4.1 9.9 10.5 2.7 -.6 1.7 4.4 5.4 1.0 .7 11 Debt instruments 146.0 181.4 157.5 99.6 172.3 268.7 251.0 252.1 284.1 287.5 300.4 299.3 12 Debt capital instruments 102.3 105.0 98.0 97.8 126.8 181.1 144.8 181.9 198.4 199.3 171.7 188.5 13 State and local obligations.... 14.7 14.7 16.5 15.6 19.0 29.2 20.5 38.2 33.0 25.0 22.3 35.8 14 Corporate bonds 12.2 9.2 19.7 27.2 22.8 21.0 18.3 13.6 27.3 24.7 15.0 18.7 Mortgages : 15 Home 42.6 46.4 34.8 39.5 63.7 96.4 79.1 97.9 103.9 104.6 92.4 89.7 16 Multifamily residential 12.7 10.4 6.9 * 1.8 7.4 4.4 8.5 7.0 9.7 10.6 10.2 17 Commercial 16.5 18.9 15.1 11.0 13.4 18.4 13.9 14.4 18.6 26.6 21.9 24.4 18 Farm 3.6 5.5 5.0 4.6 6.1 8.8 8.6 9.2 8.6 8.8 9.5 9.7 19 Other debt instruments 43.7 76.4 59.6 1.8 45.5 87.6 106.2 70.2 85.7 88.2 128.7 110.8 20 Consumer credit 17.1 23.8 10.2 9.4 23.6 35.0 33.2 38.3 32.6 36.2 38.0 51.6 21 Bank loans n.e.c 18.9 39.8 29.0 -14.0 3.5 30.6 48.9 19.0 33.8 20.7 61.3 45.9 22 Open market paper .8 2.5 6.6 -2.6 4.0 2.9 1.7 5.3 .5 4.2 5.3 5.1 23 Other 6.9 10.3 13.7 9.0 14.4 19.0 22.5 7.6 18.8 21A 24.1 8.2 24 By borrowing sector 156.9 189.3 161.6 109.5 182.8 271.4 250.4 253.8 288.5 292.9 301.4 300.0 25 State and local governments 14.5 13.2 15.5 13.2 18.5 25.9 19.6 25.9 34.8 23.2 20.9 24.4 26 Households 64.3 80.9 49.2 48.6 89.9 139.6 127.7 134.7 150.0 145.9 143.0 141.1 27 Farm 5.8 9.7 7.9 8.7 11.0 14.7 15.5 15.5 14.5 13.2 13.1 13.7 28 Nonfarm noncorporate 14.1 12.8 7.4 2.0 5.2 12.6 11.7 14.0 9.2 15.5 17.5 19.5 29 Corporate 58.3 72.7 81.8 37.0 58.2 78.7 75.9 63.7 80.1 95.2 107.0 101.3 30 Foreign 4.0 5.9 14.6 13.6 20.2 12.3 6.1 9.0 22.0 12.3 13.2 22.0 31 Corporate equities -.4 -.5 -1.0 .6 -.1 .4 .8 .5 1.2 -.8 -1.3 -.3 32 Debt instruments 4.4 6.4 15.6 13.0 20.4 11.9 5.3 8.5 20.8 13.1 14.5 22.2 33 Bonds 1.0 1.0 2.1 6.2 8.5 5.0 2.2 6.6 7.5 3.7 5.1 4.0 34 Bank loans n.e.c 2.9 2.8 4.7 3.7 6.6 1.6 -3.9 -2.6 7.2 5.6 7.4 8.0 35 Open market paper -1.0 .9 7.3 .3 1.9 2.4 3.0 2.3 2.5 1.8 -.9 8.1 36 U.S. Government loans 1.5 1.7 1.5 2.8 3.3 3.0 4.0 2.2 3.7 2.0 2.9 2.1 Financial sectors 37 Total funds raised 28.3 57.6 36.4 11.7 29.2 58.8 57.6 65.4 41.3 71.1 111.1 94.3 By instrument : 38 U.S. Government related 8.4 19.9 23.1 13.5 18.6 26.3 27.4 22.6 25.4 29.7 38.8 39.8 39 Sponsored credit agency securities.... 3.5 16.3 16.6 2.3 3.3 7.0 9.4 9.5 1.7 7.2 23.7 24.4 40 Mortgage pool securities 4.9 3.6 5.8 10.3 15.7 20.5 22.6 13.1 23.7 22.5 15.2 15.3 41 Loans from U.S. Government .7 .9 -.4 -1.2 -4.7 42 Private financial sectors 19.9 37.7 13.3 -1.9 10.6 32.6 30.2 42.8 15.9 41.4 72.2 54.5 43 Corporate equities 2.8 1.5 .3 .6 1.0 .6 -1.4 2.5 -1.4 2.8 1.2 1.7 44 Debt instruments 17.1 36.2 13.0 -2.5 9.6 32.0 31.6 40.3 17.3 38.7 71.1 52.8 45 Corporate bonds 5.1 3.5 2.1 2.9 5.8 10.1 7.3 13.0 8.5 11.7 10.3 9.6 46 Mortgages 1.7 -1.2 -1.3 2.3 2.1 3.1 2.7 3.8 3.1 2.8 2.6 1.6 47 Bank loans n.e.c 5.9 8.9 4.6 -3.6 -3.7 * 1.9 -6.5 -.1 4.7 -1.1 2.9 48 Open market paper and Rp's 4.4 17.8 .9 —. 1 7.3 14.4 17.1 25.7 5.8 9.0 46.4 23.4 49 Loans from FHLB's * 7.2 6.7 -4.0 -2.0 4.3 2.6 4.3 -.1 10.4 12.8 15.3 By sector: 50 Sponsored credit agencies 3.5 16.3 17.3 3.2 2.9 5.8 4.7 9.5 1.7 7.2 23.7 24.4 51 Mortgage pools 4.9 3.6 5.8 10.3 15.7 20.5 22.6 13.1 23.7 22.5 15.2 15.3 52 Private financial sectors 19.9 37.7 13.3 -1.9 10.6 32.6 30.2 42.8 15.9 41.4 72.2 54.5 53 Commercial banks 4.5 14.1 -5.6 -1.4 7.5 4.8 10.0 10.0 2.5 -3.4 31.1 3.6 54 Bank affiliates .7 2.2 3.5 .3 -.8 1.3 .4 2.3 1.5 .9 3.6 8.0 55 Savings and loan associations 2.0 6.0 6.3 -2.2 * 11.9 8.7 12.5 5.6 20.7 18.1 20.7 56 Other insurance companies .5 .5 .9 1.0 .9 .9 .9 .9 .9 1.0 1.0 1.0 57 Finance companies 6.5 9.4 6.0 .6 6.4 16.9 15.1 19.8 11.1 21.6 14.0 16.9 58 REIT's 6.3 6.5 .6 -1.4 -2.4 -2.4 -2.7 -2.4 -2.6 -1.9 -1.9 -1.4 59 Open-end investment companies -.5 -1.2 -.7 -.1 -1.0 -1.0 -2.6 1.0 -3.3 .9 * .4 6600 Money market funds 22..44 11..33 * ..22 ..33 -1.3 ..11 11..77 66..44 55..33 All sectors 60 Total funds raised, by instrument 204.3 261.1 224.4 220.2 301.3 399.4 361.3 366.0 431.8 438.2 491.7 464.8 62 Investment company shares -.5 -1.2 -.7 -.1 -1.0 -1.0 -2.6 1.0 -3.3 .9 * .4 63 Other corporate equities 13.8 10.1 4.1 11.2 12.4 4.8 1.3 3.7 7.5 6.5 .9 1.8 64 Debt instruments 191.0 252.3 221.0 209.1 289.8 395.6 362.6 361.3 427.6 430.9 490.9 462.6 65 U.S. Government securities 23.6 28.3 34.3 98.2 88.1 84.3 79.5 60.6 105.5 91.7 105.0 88.4 66 State and local obligations 14.7 14.7 16.5 15.6 19.0 29.2 20.5 38.2 33.0 25.0 22.3 35.8 67 Corporate and foreign bonds 18.4 13.6 23.9 36.4 37.2 36.1 27.7 33.2 43.3 40.1 30.3 32.3 68 Mortgages 77.0 79.9 60.5 57.2 87.1 134.0 108.6 133.8 141.0 152.4 137.0 135.5 69 Consumer credit 17.1 23.8 10.2 9.4 23.6 35.0 33.2 38.3 32.6 36.2 38.0 51.6 70 Bank loans n.e.c 27.8 51.6 38.3 -13.9 6.4 32.2 46.9 9.9 40.9 30.9 67.6 56.8 71 Open market paper and Rp's 4.1 21.2 14.8 -2.4 13.3 19.8 21.9 33.3 8.8 15.0 50.8 36.6 72 Other loans 8.4 19.1 22.6 8.7 15.3 25.1 24.4 14.0 22.4 39.6 39.9 25.6 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; quarterly data are at seasonally adjusted annual rates. 1977 1978 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997722 11997733 11997744 11997755 11997766 11997777 Ql Q2 Q3 Q4 Ql Q2 1 Total funds advanced in credit markets to nonfinancial sectors 165.5 196.1 184.9 198.0 261.7 337.4 303.6 298.4 385.0 362.5 380.9 370.0 By public agencies and foreign: 2 Total net advances 19.8 34.1 52.6 44.3 54.5 85.4 59.2 79.3 81.4 121.8 116.3 83.0 3 U.S. Government securities 7.6 9.5 11.9 22.5 26.8 40.2 14.8 39.7 40.8 65.6 48.7 33.9 4 Residential mortgages 7.0 8.2 14.7 16.2 12.8 20.4 23.6 16.3 18.8 23.0 27.2 20.0 5 FHLB advances to S&L's * 7.2 6.7 -4.0 -2.0 4.3 2.6 4.3 —. 1 10.4 12.8 15.3 6 Other loans and securities 5.1 9.2 19.4 9.5 16.9 20.5 18.2 19.1 21.9 22.8 27.5 13.8 Totals advanced, by sector 7 U.S. Government 1.8 2.8 9.7 15.1 8.9 11.8 10.3 1.8 17.4 17.8 28.7 8.5 8 Sponsored credit agencies 9.2 21.4 25.6 14.5 20.6 26.9 28.4 24.9 25.7 28.7 39.9 43.6 9 Monetary authorities .3 9.2 6.2 8.5 9.8 7.1 -5.8 26.1 2.1 6.2 -4.1 30.7 10 Foreign 8.4 .6 11.2 6.1 15.2 39.5 26.2 26.5 36.2 69.2 51.8 .3 11 Agency borrowing not included in line 1.. 8.4 19.9 23.1 13.5 18.6 26.3 21A 22.6 25.4 29.7 38.8 39.8 Private domestic funds advanced 12 Total net advances 154.1 182.0 155.3 167.3 225.7 278.2 271.8 241.7 328.9 270.4 303.5 326.8 13 U.S. Government securities 16.0 18.8 22.4 75.7 61.3 44.1 64.7 20.9 64.8 26.1 56.3 54.5 14 State and local obligations 14.7 14.7 16.5 15.6 19.0 29.2 20.5 38.2 33.0 25.0 22.3 35.8 15 Corporate and foreign bonds 13.1 10.0 20.9 32.8 30.5 22.3 19.6 14.9 31.1 23.6 19.3 21.5 16 Residential mortgages 48.2 48.4 26.9 23.2 52.7 83.2 59.7 90.0 92.0 91.2 75.6 79.8 17 Other mortgages and loans 62.1 97.2 75.4 16.1 60.4 103.7 109.9 82.0 107.9 115.0 142.8 150.6 18 LESS : FHLB advances * 7.2 6.7 -4.0 -2.0 4.3 2.6 4.3 -.1 10.4 12.8 15.3 Private financial intermediation 19 Credit market funds advanced by private financial institutions 149.7 165.4 126.2 119.9 191.2 249.6 239.3 242.9 280.6 235.4 266.6 307.9 20 Commercial banking 70.5 86.5 64.5 27.6 58.0 85.8 85.0 11.1 103.1 77.9 114.2 136.8 21 Savings institutions 48.2 36.9 26.9 52.0 71.4 84.8 85.5 85.1 89.1 79.6 79.1 81.6 22 Insurance and pension funds 17.2 23.9 30.0 41.5 51.7 62.0 58.6 62.0 66.4 61.1 62.7 66.2 23 Other finance 13.9 18.0 4.7 -1.1 10.1 16.9 10.2 18.7 22.0 16.8 10.6 23.3 24 Sources of funds 149.7 165.4 126.2 119.9 191.2 249.6 239.3 242.9 280.6 235.4 266.6 307.9 25 Private domestic deposits 100.6 86.6 69.4 90.6 121.5 136.0 140.3 113.7 165.4 124.5 112.3 124.0 26 Credit market borrowing 17.1 36.2 13.0 -2.5 9.6 32.0 31.6 40.3 17.3 38.7 71.1 52.8 27 Other sources 32.0 42.5 43.8 31.9 60.1 81.6 67.3 89.0 97.9 72.3 83.2 131.1 28 Foreign funds 4.6 5.8 16.8 .9 5.1 11.6 -7.6 9.1 20.4 24.4 -2.4 16.4 29 Treasury balances .7 -1.0 -5.1 -1.7 —. 1 4.3 4.3 -7.9 5.5 15.2 -14.1 12.3 30 Insurance and pension reserves 11.6 18.4 26.0 29.6 34.8 48.0 40.6 50.4 51.9 48.9 47.7 50.1 31 Other, net . 15.0 19.4 6.0 3.1 20.3 17.8 30.0 37.4 20.0 -16.2 52.0 52.3 Private domestic nonfinancial investors 32 Direct lending in credit markets 21.5 52.8 42.2 44.9 • 44.1 60.6 64.1 39.1 65.6 73.6 108.0 71.8 33 U.S. Government securities 3.9 19.2 17.5 23.0 19.6 24.6 34.3 -6.0 37.8 32.5 51.7 20.7 34 State and local obligations 3.0 5.4 9.3 8.3 6.8 9.1 2.1 14.2 7.3 12.9 4.4 9.6 35 Corporate and foreign bonds 4.4 1.3 4.7 8.0 2.1 1.1 .9 * 3.5 .2 -3.5 -2.1 36 Commercial paper 2.9 18.3 2.4 -.8 4.1 9.5 12.7 13.3 .5 11.5 37.2 22.6 37 Other 7.3 8.6 8.2 6.4 11.5 16.2 14.3 17.6 16.5 16.5 18.3 21.0 38 Deposits and currency 105.0 90.6 75.7 96.8 128.8 144.3 146.9 118.3 182.2 129.7 123.2 133.9 39 Time and savings accounts 83.8 76.1 66.7 84.8 112.2 120.1 119.6 101.5 151.4 108.0 110.5 110.5 40 Large negotiable CD's 7.7 18.1 18.8 -14.1 -14.4 9.3 -13.5 4.8 13.1 32.7 5.4 19.8 41 Other at commercial banks 30.6 29.6 26.1 39.4 58.1 41.7 62.9 27.7 60.0 16.3 52.8 33.6 42 At savings institutions 45.4 28.5 21.8 59.4 68.5 69.1 70.2 69.0 78.3 59.0 52.3 57.0 43 Money 21.2 14.4 8.9 12.0 16.6 24.2 27.3 16.8 30.8 21.7 12.7 23.5 44 Demand deposits 16.8 10.5 2.6 5.8 9.3 15.9 20.8 12.2 14.0 16.5 1.8 13.5 45 Currency 4.4 3.9 6.3 6.2 7.3 8.3 6.6 4.6 16.8 5.2 11.0 9.9 46 Total of credit market instruments, deposits and currency 126.5 143.4 117.8 141.6 172.9 204.9 211.1 157.3 247.8 203.3 231.3 205.7 47 Public support rate (in per cent) 12.0 17.4 28.5 22.4 20.8 25.3 19.5 26.6 21.1 33.6 30.5 22.4 48 Private financial intermediation (in per cent) 97.2 90.9 81.3 71.7 84.7 89.7 88.0 100.5 85.3 87.1 87.8 94.2 49 Total foreign funds 13.0 6.4 28.0 7.1 20.3 51.1 18.6 35.6 56.6 93.5 49.4 16.6 MEMO: Corporate equities not included above 50 Total net issues 13.3 8.9 3.4 11.1 11.4 3.8 -1.3 4.7 4.2 7.4 .9 2.1 51 Mutual fund shares -.5 -1.2 -.7 —. 1 -1.0 -1.0 -2.6 1.0 -3.3 .9 * .4 52 Other equities 13.8 10.1 4.1 11.2 12.4 4.8 1.3 3.7 7.5 6.5 .9 1.8 53 Acquisitions by financial institutions 16.5 13.3 5.8 9.7 12.5 6.2 6.0 6.2 8.0 4.6 -1.5 .4 54 Other net purchases -3.3 -4.4 -2.4 1.4 -1.1 -2.4 -7.3 -1.5 -3.8 2.8 2.3 1.8 NOTES BY LINE NUMBER. 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. Sum of lines 39 and 44. 49. Sum of lines 10 and 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 • October 1978 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1978 Measure 1975 1976 1977 Feb. Mar. Apr. May Juner July 1 Industrial production 117.8 129.8 137.0 139.2 140.9 143.2 143.9 144.9 145.9 Market groupings: 2 Products, total 119.3 129.3 137.1 139.6 141.6 143.0 143.1 144.0 144.7 3 Final, total 118.2 127.2 134.9 136.4 138.9 140.5 140.5 141.1 141.9 4 Consumer goods 124.0 136.2 143.4 143.8 145.9 147.5 147.0 147.0 147.5 5 Equipment 110.2 114.6 123.2 126.2 129.1 130.8 131.6 133.0 134.4 6 Intermediate 123.1 137.2 145. 1 151.4 151.4 152.1 152.6 154.7 155.5 7 Materials 115.5 130.6 136.9 138.6 139.9 143.7 145.1 146.4 147.8 Industry groupings: 8 Manufacturing 116.3 129.5 137.1 139.4 141.4 143.5 144.3 145.5 146.6 Capacity utilization (per cent)1 9 Manufacturing 73.6 80.2 82.4 81.9 82.7 83.7 83.9 84.3 84.7 10 Industrial materials industries 73.6 80.4 81.9 81.3 81.9 84.0 84.5 85.1 85.7 11 Construction contracts2 162.3 190.2 253.0 266.0 254.0 279.0 332.0 249.0 286.0 12 Nonagricultural employment, total3 117.0 120.7 125.0 128.0 128.8 129.8 130.1 130.7 130.8 13 Goods-producing, total 97.0 100.4 104.2 106.1 106.9 108.6 108.7 109.3 109.4 14 Manufacturing, total 94.2 97.7 101.0 103.6 104.0 104.3 104.4 104.5 104.4 15 Manufacturing, production-worker 91.2 95.3 98.6 101.3 101.8 102.0 102.1 102.0 101.8 16 Service-producing 127.9 131.9 136.4 140.0 140.8 141.5 141.9 142.5 142.5 17 Personal income, total4 200.4 220.4 244.0 259.3 262.7 266.4 268.4 270.6 274.5 18 Wages and salary disbursements 188.5 208.2 230.1 245.0 249.5 253.5 254.6 256.9 259.5 19 Manufacturing 157.3 177.1 198.6 213.6 218.0 219.5 222.3 224.9 220.7 20 Disposable personal income 199.6 217.5 239.3 261.6 265.5 21 Retail sales 5 184.6 203.5 224.4 235.6 239.5 244.8 246.7 245.9 245.4 Prices:6 22 Consumer7 161.2 170.5 181.6 188.4 189.8 191.5 193.3 196.7 23 Producer finished goods 174.9 183.0 194.2 202.1 203.7 206.5 207.9 209.4 210.6 1 Ratios of indexes of production to indexes of capacity. Based on data 5 Based on Bureau of Census data published in Survey of Current from Federal Reserve, McGraw-Hill Economics Department, and De- Business (U.S. Dept. of Commerce). partment of Commerce. 6 Data without seasonal adjustment, as published in Monthly Labor 2 Index of dollar value of total construction contracts, including Review (U.S. Dept. of Labor). Seasonally adjusted data for changes in residential, nonresidential, and heavy engineering, from McGraw-Hill the price indexes may be obtained from the Bureau of Labor Statistics, Informations Systems Company, F. W. Dodge Division. U.S. Dept. of Labor. 3 The establishment survey data in this table have been revised to con- 7 Beginning Jan. 1978, based on new index for all urban consumers. form to the industry definitions of the 1972 Standard Industrial Classification (SIC) Manual and to reflect employment benchmark levels for NOTE.—Basic data (not index numbers) for series mentioned in notes March 1977. In addition, seasonal factors for these data have been 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be revised, based on experience through May 1978. Based on data in Em- found in the Survey of Current Business (U.S. Dept. of Commerce). ployment and Earnings (U.S. Dept. of Labor). Series covers employees Figures for industrial production for the last 2 months are preliminary only, excluding personnel in the Armed Forces. and estimated, respectively. 4 Based on data in Survey of Current Business U.S. Dept. of Commerce). Series for disposable income is quarterly. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1977 1978 1977 1978 1977 1978 Series Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing 139.9 139.8 144.4 147.4 168.7 170.3 172.0 173.7 82.9 82.1 r84.0 84.9 2 Primary processing 148.2 148.2 M54.1 157.6 175.1 176.8 178.5 180.2 84.6 83.8 86.3 87.5 3 Advanced processing 135.6 135.4 r139.3 141.9 165.3 166.9 168.5 170.2 82.0 81.1 82.7 83.4 4 Materials 138.9 139.2 145.1 148.3 168.9 170.4 171.7 173.0 82.2 81.7 84.5 85.7 5 Durable goods 137.7 137.9 r144.0 149.5 172.8 174.0 175.2 176.3 79.6 79.3 82.2 84.8 6 Basic metal 109.4 110.5 117.5 145.5 145.8 146.1 75.2 75.8 80.4 7 Nondurable goods 155.0 158.0 r163.2 162.6 180.4 182.3 184.4 186.5 85.9 86.7 88.5 87.2 8 Textile, paper, and chemical 159.5 163.1 r167.7 167.4 188.9 190.8 193.1 195.4 84.5 85.5 r86.8 85.7 9 Textile 117.9 115.3 117.1 143.0 143.5 144.1 82.4 80.3 81.2 10 Paper 132.3 136.5 139.7 152.5 153.6 154.8 86.7 88.9 90.3 11 Chemical 188.9 194.9 201.4 223.6 226.6 230.1 84.5 86.0 87.5 12 Energy 121.9 119.1 125.5 127.8 145.7 147.2 147.8 148.4 83.7 80.9 84.9 86.1 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. 1978 CCaatteeggoorryy 11997755 11997766 11997777 Mar. Apr. May June July Aug. Sept. Household survey data 1111 NNNNoooonnnniiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnaaaallll ppppooooppppuuuullllaaaattttiiiioooonnnn1111 153,449 156,048 158,559 160,313 160,504 160,713 160,928 161,148 161,348 161,570 2222 LLLLaaaabbbboooorrrr ffffoooorrrrcccceeee ((((iiiinnnncccclllluuuuddddiiiinnnngggg AAAArrrrmmmmeeeedddd FFFFoooorrrrcccceeeessss))))1111 94,793 96,917 99,534 101,536 101,902 102,374 102,671 102,734 102,671 102,993 3333 CCCCiiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 92,613 94,773 97,401 99,414 99,784 100,261 100,573 100,618 100,549 100,870 EEEEmmmmppppllllooooyyyymmmmeeeennnntttt:::: 4444 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll iiiinnnndddduuuussssttttrrrriiiieeeessss2222 81,403 84,188 87,302 89,956 90,526 90,877 91,346 91,038 91,221 91,457 5555 AAAAggggrrrriiiiccccuuuullllttttuuuurrrreeee 3,380 3,297 3,244 3,310 3,275 3,235 3,473 3,387 3,360 3,411 UUUUnnnneeeemmmmppppllllooooyyyymmmmeeeennnntttt:::: 6666 NNNNuuuummmmbbbbeeeerrrr 7,830 7,288 6,855 6,148 5,983 6,149 5,754 6,193 5,968 6,002 7777 RRRRaaaatttteeee ((((ppppeeeerrrr cccceeeennnntttt ooooffff cccciiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee)))) 8.5 7.7 7.0 6.2 6.0 6.1 5.7 6.2 5.9 6.0 8888 NNNNooootttt iiiinnnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 58,655 59,130 59,025 58,776 58,602 58,340 58,257 58,414 58,677 58,577 Establishment survey data4 9999 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll ppppaaaayyyyrrrroooollllllll eeeemmmmppppllllooooyyyymmmmeeeennnntttt3333 76,945 79,382 82,256 84,726 85,418 85,618 85,996 86,033 86,164 86,106 11110000 MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 18,323 18,997 19,647 20,230 20,282 20,297 20,316 20,302 20,272 20,282 11111111 MMMMiiiinnnniiiinnnngggg 751 779 809 698 867 869 879 882 886 885 11112222 CCCCoooonnnnttttrrrraaaacccctttt ccccoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn 3,529 3,576 3,827 3,999 4,164 4,175 4,278 4,317 4,295 4.275 11113333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn aaaannnndddd ppppuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttiiiieeeessss.... 4,542 4,582 4,695 4,817 4,847 4,847 4,881 4,827 4,844 4,852 11114444 TTTTrrrraaaaddddeeee 17,053 17,754 18,487 19,169 19,252 19,335 19,412 19,469 19,525 19,509 11115555 FFFFiiiinnnnaaaannnncccceeee 4,165 4,271 4,452 4,605 4,623 4,637 4,670 4,690 4,711 4,723 13,892 14,552 15,247 15,773 15,866 15,896 15,963 15,989 16,072 16,104 11117777 GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 14,683 14,869 15,078 15,435 15,517 15,562 15,597 15,557 15,559 15,476 1 Persons 16 years of age and over. Monthly figures, which are based unpaid family workers, and members of the Armed Forces. Data are on sample data, relate to the calendar week that contains the 12th day; adjusted to the February 1977 benchmark. Based on data from Employannual data are averages of monthly figures. By definition, seasonality ment and Earnings (U.S. Dept. of Labor). does not exist in population figures. Based on data from Employment 4 The establishment survey data in this table have been revised to and Earnings (U.S. Dept. of Labor). conform to the industry definitions of the 1972 Standard Industrial 2 Includes self-employed, unpaid family, and domestic service workers. Classification (SIC) Manual and to reflect employment benchmark 3 Data include all full- and part-time employees who worked during, levels for March 1977. In addition, seasonal factors for these data have or received pay for, the pay period that includes the 12th day of the been revised, based on experience through May 1978. month, and exclude proprietors, self-employed persons, domestic servants, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • October 1978 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 11996677 1977 1978 GGrroouuppiinngg pprroo-- 11997777 ppoorr-- aavveerr-ttiioonn aaggee July Aug. Sept. Feb. Mar. Apr. May Juner July Aug.f Sept.® Index (1967 = 100) MAJOR MARKET 1 Total index. 100.00 137.1 138.7 138.1 138.5 139.2 140.9 143.2 143.9 144.9 145.9 146.7 147.5 2 Products 60.71 137.1 138.7 138.4 138.8 139.6 141.6 143.0 143.1 144.0 144.7 3 Final products 47.82 134.9 136.8 136.3 136.8 136.4 138.9 140.5 140.5 141.1 141.9 4 Consumer goods 27.68 143.4 145.4 144.7 144.9 143.8 145.9 147.5 147.0 147.0 147.5 5 Equipment 20.14 123.2 124.8 124.9 125.6 126.2 129.1 130.8 131.6 133.0 134.4 6 Intermediate products. 12.89 145.1 146.3 146.1 146.5 151.4 151.4 152.1 152.6 154.7 155.5 7 Materials 39.29 136.9 138.9 137.6 137.9 138.6 139.9 143.7 145.1 146.4 147.8 Consumer goods 8 Durable consumer goods 7.89 153.1 158.0 154.7 155.6 151.2 157.5 161.8 160.2 160.6 160.6 9 Automotive products 2.83 174.2 184.8 177.2 177.0 162.8 175.8 184.3 180.0 179.9 182.3 10 Autos and utility vehicles 2.03 169.2 184.1 173.1 172.6 153.9 171.0 182.7 175.6 174.3 176.7 11 Autos 1.90 148.4 161.4 150.9 151.6 131.5 149.7 159.1 151.6 149.8 152.7 12 Auto parts and allied goods. .80 186.8 186.6 187.3 188. 185.3 188.5 188.2 191.5 193.9 196.4 13 Home goods 5.06 141.3 142.9 142.1 143.6 144.6 147.2 149.2 148.9 149.7 148.4 14 Appliances, A/C; and TV... 1.40 127.3 130. 129.6 129.4 133.3 135.4 142.2 138.3 139.0 133.8 15 Appliances and TV 1.33 130.5 134.4 133.0 134. 135.7 137.9 144.7 140.7 141.0 136.8 16 Carpeting and furniture.... 1.07 152.2 154. 154.8 159.0 160.2 159.3 158.9 163.4 166.0 168. 17 Miscellaneous home goods. 2.59 144.3 145. 143.6 144.9 144.3 148.7 149.0 148.8 148.8 148.3 18 Nondurable consumer goods 19.79 139.6 140.3 140.6 140.7 140.8 141.3 141.8 141.7 141.6 142.3 19 Clothing 4.29 125.2 124.1 126.4 128.3 121.1 122.4 124.9 125.4 124.8 125.1 20 Consumer staples 15.50 143.6 144.8 144.6 144.1 146.3 146.4 146.6 146.2 146.3 147.2 21 Consumer foods and tobacco. 8.33 135.5 137.1 137.9 137.1 138.3 138.7 140.8 139.9 139.0 140. 22 Nonfood staples 7.17 152.9 153.8 152.4 152.4 155.8 155.3 153.3 153.4 154.8 155.4 23 Consumer chemical products. 2.63 180.5 179.4 181.8 182.5 184.3 182. 182.5 182.0 185.5 186.5 24 Consumer paper products 1.92 117. 117.4 117.0 116.4 118.8 118.9 117.7 117.9 118.0 117.6 25 Consumer energy products 2.62 151.4 154.9 148.9 148.6 154.5 155.0 149.9 150.7 150.8 151.9 26 Residential utilities 1.45 159.0 167.5 156.1 153.8 167.6 166.9 159.0 157.2 159.0 Equipment 27 Business equipment 12.63 149.2 151.2 151.1 152.1 154.2 157.4 159.3 160.2 161.8 163.5 28 Industrial equipment 6.77 138.5 140.7 140.4 141.4 144.6 146.9 147.8 149.7 150.9 151.7 29 Building and mining equipment. 1.44 202.5 210.6 203.9 204.5 214.9 221.7 225. 226.0 227.3 229.0 30 Manufacturing equipment 3.85 113.9 114.3 115.3 117.6 117.7 118.3 119.0 121.3 122.8 122.5 31 Power equipment 1.47 140.2 141.2 143.7 141.4 145.8 148.8 147.3 149.2 149.2 152 32 Commercial transit, farm equipment. 5.86 161.6 163.3 163.4 164.4 165.5 169.4 172.6 172.3 174.4 177.1 33 Commerical equipment 3.26 191.6 191.7 193.0 193.7 200.9 202.0 203.8 204.2 206.9 210. 34 Transit equipment 1.93 117.8 121.5 121.9 125. 115.9 126. 133.7 132.2 132.3 135.0 35 Farm equipment .67 142.3 144.6 139.2 134.9 134.8 137.0 132.9 131.9 137.3 138.8 36 Defense and space equipment... 7.51 79.6 80.4 80.8 80.9 79.2 81.9 82.9 83.6 84.6 85.4 Intermediate products 37 Construction supplies 6.42 140.8 141.2 141.7 143.2 148.6 147.9 148.5 150.4 152. 153.6 38 Business supplies 6.47 149.5 151.3 150.6 149.7 154.2 155.0 155.6 155.0 157.0 157.5 39 Commercial energy products. 1.14 164.6 168.2 165.0 162.7 165.6 164.3 163.5 162.7 163.0 163.7 Materials 40 Durable goods materials. .. 20.35 134.5 136 135.4 135.7 137.0 138.6 142.7 143.9 145.4 148.5 41 Durable consumer parts. 4.58 132.0 137.2 135.2 135.8 131. 133.1 136.8 137.9 138.7 142.1 42 Equipment parts 5.44 143. 145.0 145.6 146.8 146.6 151.3 154.8 155.8 157.4 161.1 4 4 3 4 Du B r a a s b i l c e m m e a t t a e l ri m al a s te n r . i e a . l c s . . . 1 5 0 . . 5 3 7 4 1 13 1 1 0 . . 9 1 11 3 2 2 . .4 6 1 1 3 0 0 8 . . 7 1 10 2 6 9 . . 8 8 1 1 3 1 4 1 . . 6 0 1 1 3 1 4 0 . . 5 4 1 11 3 6 8 . . 7 9 1 11 4 7 0 . . 5 3 1 1 4 1 1 8 . . 8 2 1 1 4 2 4 1. . 7 6 45 Nondurable goods materials 10.47 153.5 154.1 155.1 153.9 158.5 160.5 162.0 163.5 164.1 162.3 46 Textile, paper, and chemical materials. 7.62 158.3 158.9 159.6 159.0 162.8 165.7 166.4 167.9 168.8 168.0 47 Textile materials 1.85 113.0 110. 112.2 114.5 115.8 115.1 116.5 116.7 118.0 117. 48 Paper materials 1.62 133.5 134.3 135.7 135.2 136.8 137.8 139.2 140 139.9 135. 49 Chemical materials 4.15 188.2 190.3 190. 188.2 194.2 199.2 199.5 201.7 202.9 203.7 50 Containers, nondurable 1.70 150.9 152.4 156.2 151.2 158.7 158.1 160.5 161.9 162.8 154.8 51 Nondurable materials n.e.c. 1.14 125.3 124.9 122.4 124.1 128.9 129.3 134.6 135.8 135.0 135.5 52 Energy materials 8.48 122.4 125.2 121.4 123.5 117.7 117.5 123.9 125.2 127.5 127.9 53 Primary energy 4.65 107.3 108.9 106. 110.0 101.0 104.5 115.5 114.4 116. 116.6 54 Converted fuel materials.... 3.82 140.7 145.1 139.1 140.0 138.0 133.3 134. 138.6 141.4 141.5 Supplementary groups 55 Home goods and clothing. 9.35 133.9 134 134.9 136.5 133.8 135.9 138.0 138 138 137.6 56 Energy, total 12.23 132.5 135.6 131.4 132.5 130.0 129.8 133. 134.2 135.9 136.3 57 Products 3.76 155.4 158.9 153.7 153.0 157.9 157.9 154.1 154.3 154.6 155.5 58 Materials 8.48 122.4 125.2 121.4 123.5 117.7 117.5 123.9 125 127.5 127.9 For NOTE see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1977 1978 Grouping SIC pro- 1977 code por- avertion age July Aug. Sept. Feb. Mar. Apr. May Juner July Aug.f Sept.e Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 136.2 139.4 134.4 135.1 137.7 138.2 140.9 140.9 142.5 142.7 142.5 142.5 2 Mining 6.36 117.8 119.8 115.4 118.0 114.4 119.3 127.2 126.7 128.0 127.3 126.2 125.4 3 Utilities 5.69 156.5 161.4 155.7 154.1 163.5 159.5 156.0 157.0 158.6 159.9 160.6 161.4 4 Electric 3.88 175.5 183.9 175.4 173.7 184.3 178.8 175.0 177.1 180.1 5 Manufacturing. 87.95 137.1 138.5 138.6 139.0 139.4 141.4 143.5 144.3 145.5 146.6 147.4 148.2 6 Nondurable., 35.97 148.1 148.6 149.4 149.5 150.6 151.4 153.2 154.0 154.9 155.0 155.3 156.0 7 Durable 51.98 129.5 131.6 131.3 131.7 131.5 134.4 136.9 137.6 139.0 140.8 142.0 142.7 Mining 8 Metal mining 10 .51 105.4 101.9 70.0 71.4 119.9 127.6 122.3 120.0 121.1 118.2 117.3 9 Coal 11,12 .69 118.0 120.7 113.6 133.0 56.5 78.4 129.5 131.7 136.4 132.3 126.1 115.0 10 Oil and gas extraction 13 4.40 118.0 120.6 119.3 119.6 120.4 123.3 127.3 126.3 127.1 126.8 126.4 126.9 11 Stone and earth minerals. 14 .75 124.9 126.7 125.0 126.7 129.1 128.2 128.9 130.1 130.7 131.3 130.9 Nondurable manufactures 12 Foods 8.75 137.9 138.3 139.3 138.3 140.8 141.1 143.1 142.8 141.8 142.8 143.9 13 Tobacco products .67 114.3 114.5 117 0 113.5 117 7 115.6 121.0 120 2 122.7 121.8 14 Textile mill products .. . 2.68 137.1 137.2 136i6 140.7 136.4 135.1 138.1 138.5 140.4 141.1 139.8 15 Apparel products 3.31 124.2 121.1 124 1 127.7 121.1 122.8 126.1 125.8 126.8 124.6 16 Paper and products 3.21 137.4 139.2 140.3 139.1 143.9 144.9 145.7 146.6 148.0 140.5 140.6 145.2 17 Printing and publishing 4.72 124.9 124.9 125.0 124.2 128.3 129.1 128.6 128.2 128.7 130.4 129.8 129.7 18 Chemicals and products 7.74 180.7 182.6 182.6 181.3 183.7 185.2 185.5 188.1 191.1 192.0 191.9 19 Petroleum products 1.79 141.0 140.4 139.9 141.9 139.0 140.1 141.7 143.4 142.8 143.9 144.6 "i45l7 20 Rubber & plastic products . 2.24 232.2 235.2 237.4 239.5 240.0 243.1 249.1 252.7 255.5 258.9 261.1 21 Leather and products .86 75.3 74.1 74.5 74.0 73.0 72.1 76.0 75.7 75.1 74.5 75.0 Durable manufactures 22 Ordnance, private & government . 19,91 3.64 73.9 75.0 75.5 75.1 71.2 72.7 73.0 74.3 74.7 75.2 76.3 76.8 23 Lumber and products 24 1.64 133.4 132.9 131.8 137.1 135.5 136.5 136.9 136.5 138.7 138.4 138.6 24 Furniture and fixtures 25 1.37 140.9 143.0 142.9 145.6 150.1 149.5 148.9 152.8 156.2 158.1 160.2 25 Clay, glass, stone products 32 2.74 146.1 148.0 148.8 145.5 152.6 154.2 156.7 157.9 159.8 159.4 159.7 26 Primary metals 33 6.57 110.2 114.4 112.5 109.0 106.2 106.1 114.3 115.5 117.5 123.0 124.4 125.1 27 Iron and steel 331,2 4.21 103.4 110.9 110.6 104.6 96.3 96.4 109.0 110.5 114.5 119.0 120.7 28 Fabricated metal products. 34 5.93 130.9 132.0 134.0 133.6 136.9 138.1 139.5 140.4 142.3 144.0 145.4 146 29 Nonelectrical machinery... 35 9.15 144.8 145.7 145.2 147.4 150.1 151.5 152.2 152.9 154.6 156.1 157.2 158.5 30 Electrical machinery 36 8.05 141.9 143.6 143.9 144.6 146.4 149.5 152.3 152.9 154.1 156.4 157.1 157.8 31 Transportation equipment 37 9.27 121.1 125.6 124.3 125.5 118.4 126.5 130.5 130.1 130.4 132.1 133.7 133.2 32 Motor vehicles & parts 371 4.50 159.7 166.2 164.4 165.6 153.1 165.1 171.7 168.3 167.7 169.7 171.0 168.0 33 Aerospace & misc. trans, eq. 372-9 4.77 84.7 87.3 86.5 87.7 85.8 90.1 91.8 93.9 95.0 96.5 98.6 100.5 34 Instruments 38 2.11 159.1 159.0 158.3 160.3 163.5 168.7 170.5 169.8 170.9 172.0 173.1 174.1 35 Miscellaneous mfrs 39 1.51 149.1 150.4 147.5 150.7 151.8 153.7 152.9 152.7 153.5 153.2 152.9 154.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total . 1507.4 583.9 590.5 590.2 590.1 591.2 601.1 608.8 606.8 608.9 608.8 613.2 615.5 37 Final products . i390.9 452.1 457.8 456.9 456.8 454.4 463.5 470.7 468.2 468.9 468.4 472.0 473.5 38 Consumer goods. . 1277.5 317.5 321.5 320.0 319.1 318.6 321.6 326.3 324.0 323.0 323.5 324.6 324.2 39 Equipment . 1113.4 134.6 136.2 137.0 137.6 135.8 142.0 144.4 144.2 146.0 145.0 147.5 149.2 40 Intermediate products. . U16.6 131.9 132.8 133.1 133.5 137.0 137.5 138.3 138.6 140.3 140.5 141.3 141.8 i 1972 dollars. separately. For description and historical data, see Industrial Production— 1976 Revision (Board of Governors of the Federal Reserve System: NOTE.—Published groupings include some series and subtotals not shown Washington, D.C.), Dec. 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • October 1978 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1978 Item 1975 1976 1977 Feb. Mar. Apr. May' June' July r Aug. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 927 1,296 18,133 1,534 1,647 1,740 1,597 1,821 1,632 1,571 2 1-family 669 894 12,265 957 1,037 1,157 1,058 1,123 1,035 1,023 3 2-or-more-family 278 402 5,861 577 610 583 539 698 597 548 A Started 1,160 1,538 1,986 1,569 2,047 2,165 2,054 2,124 2,128 2,029 5 1-family 892 1,163 1,451 1,103 1,429 1,492 1,478 1,441 1,453 1,442 6 2-or-more-family 268 377 535 466 618 673 576 683 675 587 7 Under construction, end of period 1 1,003 1,147 1,442 1,260 1,260 1,274 1,282 1,300 1,307 8 1-family 531 655 829 787 778 774 770 778 787 9 2-or-more-family All 492 613 474 483 500 513 522 520 10 Completed 1,297 1,362 1,652 1,696 1,821 1,943 1,854 1,898 1,924 11 1-family 866 1,026 1,254 1,233 1,363 1,515 1,426 1,342 1,253 12 2-or-more-family 430 336 398 463 458 428 428 556 671 13 Mobile homes shipped 213 246 111 265 '285 252 258 263 232 276 Merchant builder activity in 1-family units: 14 Number sold 544 639 819 774 793 827 846 824 791 757 15 Number for sale, end of period1.. 383 433 407 404 404 410 412 418 420 423 Price (thous. of dollars)2 Median: 16 Units sold 39.3 44.2 48.9 53.2 r53.2 53.3 55.7 56.8 55.0 56.6 17 Units for sale 38.9 41.6 48.2 Average: 18 Units sold 42.5 48.1 54.4 59.1 60.0 59.3 62.3 63.3 63.1 63.7 EXISTING UNITS (1-family) 19 Number sold 2,452 3,002 3,572 3,460 3,770 3,880 3,770 3,780 3,890 4,080 Price of units sold (thous. of dollars):2 20 Median 35.3 38.1 42.9 46.3 46.5 48.2 47.8 48.4 49.4 50.3 21 Average 39.0 42.2 47.9 51.3 51.1 53.6 54.8 55.1 56.5 57.5 Value of new construction 4 (millions of dollars) CONSTRUCTION 22 Total put in place 134,293 147,481 170,685 '177,631 '185,381 '195,261 201,555 205,843 208,334 205,438 23 Private 93,624 109,499 133,652 '141,902 '147,709 '153,728 156,456 160,594 159,907 157,667 24 Residential 46,472 60,519 81,067 '85,273 '88,141 '92,433 94,533 94,902 93,994 92,724 25 Nonresidential, total 47,152 48,980 52,585 '56,629 '59,568 '61,295 61,923 65,692 65,913 64,943 Buildings: 26 Industrial 8,017 7,182 7,182 7,674 9,199 9,244 8,735 11,335 11,170 11,560 27 Commercial 12,804 12,757 14,604 15,154 16,227 17,177 18,546 19,246 19,463 18,677 28 Other 5,585 6,155 6,226 5,867 6,358 6,806 6,935 6,761 7,036 6,773 29 Public utilities and other 20,746 22,886 24,573 '27,934 '27,784 '28,068 27,707 28,350 28,244 27,933 30 Public 40,669 37,982 37,033 35,729 37,672 41,532 45,099 45,249 48,427 46,771 31 Military 1,392 1,508 1,478 1,478 1,405 1,500 1,446 1,358 1,493 1,480 32 Highway 10,861 9,756 9,170 '7,364 '8,125 '8,491 10,556 10,338 10,015 33 Conservation and development. .. 3,256 3,722 3,765 3,891 4,237 4,586 4,172 3,508 4,947 34 Other3 25,160 22,996 22,620 '22,996 '23,905 '26,955 28,925 30,045 31,972 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 Beginning Jan. 1977 Highway imputations are included in Other. factured Housing Institute and seasonally adjusted by the Census Bureau, 4 Value of new construction data in recent periods may not be strictly and (b) sales and prices of existing units, which are published by the comparable with data in prior periods due to changes by the Bureau of National Association of Realtors. All back and current figures are availthe Census in its estimating techniques. For a description of these changes able from originating agency. Permit authorizations are for 14,000 see Construction Reports (C-30-76-5), issued by the Bureau in July 1976. 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 PRODUCER 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 1977 1978 1978 Aug. 1977 1978 1978 Aug. Aug. (1967 Sept. Dec. Mar. June Apr. May June July Aug. = 100)2 Consumer prices 3 1 All items 6.6 7.9 4.5 4.9 9.3 11.4 .9 .9 .9 .5 .6 197.8 2 Commodities 5.8 7.4 2.5 4.9 9.3 11.2 .9 .9 .9 .4 .4 189.3 3 Food 7.0 10.3 1.9 4.2 16.4 20.4 1.9 1.5 1.3 .0 .3 215.4 4 Commodities less food 5.1 6.2 2.7 5.4 6.1 7.2 .5 .6 .6 .6 .5 176.3 5 5.1 7.1 1.5 5.2 8.7 9.0 .5 .8 .8 .7 .5 175.9 6 Nondurable 5.2 4.8 3.4 5.1 3.1 5.5 .5 .4 .4 .5 .5 175.4 7 Services 8.0 8.7 7.6 4.9 9.1 11.8 .9 1.0 .9 .8 .8 213.4 8 Rent 6.0 6.9 6.7 6.3 6.2 8.5 .7 .7 .6 .5 .5 165.1 9 Services less rent 8.2 9.0 8.0 4.8 9.6 12.2 .9 1.0 .9 .9 .9 222.2 Other groupings: 10 All items less food 6.5 7.5 5.3 5.0 8.1 9.3 .7 .8 .7 .7 .7 193.3 11 All items less food and energy 6.2 7.6 5.1 5.3 8.0 9.9 .7 .8 .9 .7 .6 190.5 12 Homeownership 7.2 11.2 8.5 7.1 12.2 14.5 1.1 1.1 1.2 1.2 1.0 230.6 Producer prices, formerly Wholesale prices 6.6 7.7 2.9 7.2 9.6 11.2 '1.3 .7 .7 .5 -.1 195.3 6.6 7.6 1.8 5.4 10.9 12.0 1.5 .6 .7 .5 -.3 193.4 15 Foods 6.8 8.4 -2.3 7.4 21.2 14.6 1.8 '.4 '1.2 -.3 -1.5 205.8 16 Excluding foods 6.5 7.1 4.0 4.7 r5.3 r10.5 1.3 .8 '.3 1.0 .4 185.3 17 Capital Equiptment 6.8 8.1 6.0 10.9 7.1 9.1 '.6 '.8 .8 .5 .4 199.8 5.4 8.3 .4 8.3 '13.9 8.4 '1.0 .5 .6 .3 1 221.2 7.1 6.5 7.1 4.2 r9.2 '6.0 .5 .5 '.4 .4 '.7 218.3 Crude: 20 Nonfood 7.5 13.3 -5.3 20.1 r16.2 '11.9 '.8 .4 '1.6 2.3 -.5 291.7 21 Food -3.9 17.6 -19.6 27.6 r40.3 r28.1 '4.3 .0 1.9 -2.5 -1.8 213.2 1 Excludes intermediate materials for food manufacturing and manu- 3 Beginning Jan. 1978 figures for consumer prices are those for all urban factured animal feeds. consumers. 2 Not seasonally adjusted. SOURCE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • October 1978 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1977 1978 1975 1976 1977 Account Ql Q2 Q3 Q4 Ql Q2r Gross national product 1 1,528.8 1,700.1 1,887.2 1,806.8 1,867.0 1,916.8 1,958.1 1,992.0 2,087.5 By source: 2 Personal consumption expenditures 979.1 1,090.2 1,206.5 1,167.7 1,188.6 1,214.5 1,255.2 1,276.7 1,322.9 3 Durable goods 132.6 156.6 178.4 173.2 175.6 111.4 187.2 183.5 197.8 4 Nondurable goods 408.9 442.6 479.0 465.9 473.6 479.7 496.9 501.4 519.3 5 Services 437.5 491.0 549.2 528.6 539.4 557.5 571.1 591.8 605.8 6 190.9 243.0 297.8 272.5 295.6 309.7 313.5 322.7 345.4 7 Fixed investment 201.6 232.8 282.3 262.2 278.6 287.8 300.5 306.0 325.3 8 Nonresidential 150.2 164.6 190.4 180.6 187.2 193.5 200.3 205.6 220.1 9 53.8 57.3 63.9 59.3 63.4 65.4 67.4 68.5 16.6 10 Producers' durable equipment 96.4 107.3 126.5 121.4 123.8 128.1 132.8 137.1 143.5 11 Residential structures 51.5 68.2 91.9 81.6 91.4 94.3 100.2 100.3 105.3 12 Nonfarm 49.5 65.8 88.9 78.6 88.4 91.2 97.5 97.3 102.1 13 -10.7 10.2 15.6 10.3 17.0 21.9 13.1 16.7 20.1 14 Nonfarm -14.3 12.2 15.0 11.1 16.5 22.0 10.4 16.9 22.1 15 20.4 7.4 -11.1 -8.5 -5.9 -7.0 -23.2 -24.1 -5.5 16 Exports 147.3 163.2 175.5 170.9 178.1 180.8 172.1 181.7 205.4 17 126.9 155.7 186.6 179.4 184.0 187.8 195.2 205.8 210.9 18 Government purchases of goods and services.. 338.4 359.5 394.0 375.0 388.8 399.5 412.5 416.7 424.7 19 Federal 123.1 129.9 145.1 138.3 142.9 146.8 152.2 151.5 147.2 20 State and local 215.4 229.6 248.9 236.7 245.9 252.7 260.3 265.2 277.6 By major type of product: 21 1,539.6 1,689.9 1,871.6 1,796.5 1,850.0 1,894.9 1,945.0 1,975.3 2,067.4 22 686.6 760.3 832.6 800.2 825.8 844.7 859.6 861.8 912.2 23 Durable 259.0 304.6 341.3 332.2 339.1 346.5 347.4 351.2 375.8 24 Nondurable 427.5 455.7 491.3 468.0 486.7 498.2 512.2 510.6 536.4 25 697.6 778.0 862.8 832.3 850.0 875.3 893.6 926.4 952.0 26 144.7 161.9 191.8 174.3 191.3 196.8 204.9 203.8 223.4 27 Change in business inventories -10.7 10.2 15.6 10.3 17.0 21.9 13.1 16.7 20.1 28 Durable goods -8.9 5.3 8.4 6.1 9.1 11.9 6.3 14.8 10.8 29 Nondurable goods -1.8 4.9 7.2 4.2 7.9 10.0 6.8 1.9 9.3 30 MEMO: Total GNP in 1972 dollars 1,202.3 1,271.0 1,332.7 1,306.7 1,325.5 1,343.9 1,354.5 1,354.2 1,382.6 National income 31 1,215.0 1,359,2 1,515.3 1,447.5 1,499.3 1,537.6 1,576.9 1,603.1 1,688.1 32 Compensation of employees 931.1 1,036.8 1,153.4 1,107.9 1,140.5 1,165.8 1,199.7 1,241.0 1,287.8 33 Wages and salaries 805.9 890.1 983.6 946.4 973.4 993.6 1,021.2 1,050.8 1,090.2 34 Government and Government enterprises.. 175.4 187.6 200.8 195.2 198.1 201.7 208.1 211.4 213.9 35 Other 630.4 702.5 782.9 751.2 775.3 791.9 813.1 839.3 876.3 36 Supplement to wages and salaries 125.2 146.7 169.8 161.5 167.1 172.2 178.4 190.2 197.6 37 Employer contributions for social insurance 60.1 69.7 19 A 76.6 78.6 19.9 82.4 90.2 93.6 38 Other labor income 65.1 77.0 90.4 84.9 88.5 92.2 96.1 100.0 104.0 87.0 88.6 99.8 95.6 98.9 97.2 107.3 105.0 110.1 40 Business and professional1 63.5 70.2 79.5 76.1 78.9 80.8 82.3 83.1 86.1 41 23.5 18.4 20.3 19.4 20.0 16.5 25.1 21.9 24.0 42 Rental income of persons2 22.4 22.5 22.5 22.5 22.4 22.4 22.7 22.8 22.2 43 Corporate profits1 95.9 127.0 144.2 129.9 143.7 154.8 148.2 132.6 163.4 44 Profits before tax3 120.4 155.9 173.9 164.8 175.1 177.5 178.3 172.1 205.5 45 Inventory valuation adjustment -12.4 -14.5 -14.8 -20.3 -16.6 -7.7 -14.8 -23.5 -24.9 46 Capital consumption adjustment -12.0 -14.4 -14.9 -14.6 -14.8 -15.0 -15.3 -16.1 -17.2 47 Net interest 78.6 84.3 95.4 91.7 93.7 97.3 99.0 101.7 104.6 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. 1977 1978 1975 1976 1977 Account Ql Q2 Q3 Q4 Ql Q2r Personal income and saving 1 Total personal income.. 1,255.5 1,380.9 1,529.0 1,470.7 1,508.6 1,543.7 1,593.0 1,628.9 1,682.4 2 Wage and salary disbursements 805.9 890.1 983.6 946.4 973.4 993.6 1,021.2 1,050.8 1,090.2 3 Commodity-producing industries 275.0 307.5 343.7 327.3 342.0 348.3 357.1 365.9 387.0 211.0 237.5 266.3 254.6 264.1 269.3 277.3 286.9 296.1 5 Distributive industries 195.3 216.4 239.1 231.2 236.5 241.2 247.5 257.0 266,4 6 Service industries 160.1 178.6 200.1 192.7 196.8 202.3 208.5 216.5 222.8 7 Government and government enterprises 175.4 187.6 200.8 195.2 198.1 201.7 208.1 211.4 213.9 8 Other labor income 65.1 77.0 90.4 84.9 88.5 92.2 96.1 100.0 104.0 87.0 88.6 99.8 95.6 98.9 97.2 107.3 105.0 110.1 10 Business and professional1 63.5 70.2 79.5 76.1 78.9 80.8 82.3 83.1 86.1 11 Farm1 23.5 18.4 20.3 19.4 20.0 16.5 25.1 21.9 24.0 12 Rental income of persons2 22.4 22.5 22.5 22.5 22.4 22.4 22.7 22.8 22.2 31.9 37.9 43.7 41.5 42.7 44.1 46.3 47.0 48.1 115.5 126.3 141.2 135.9 139.1 143.6 146.0 151.4 156.3 178.2 193.9 208.8 203.4 204.0 211.9 215.9 219.2 220.6 16 Old-age survivors, disability, and health 81.4 92.9 105.0 99.7 101.8 108.5 110.1 112.1 113.7 17 LESS: Personal contributions for social insurance 50.5 55.5 61.0 59.4 60.5 61.4 62.6 67.2 69.2 18 EQUALS: Personal income 1,255.5 1,380.9 1,529.0 1,470.7 1,508.6 1,543.7 1,593.0 1,628.9 1,682.4 19 LESS: Personal tax and nontax payments.... 168.8 196.5 226.0 222.7 223.3 224.6 233.3 237.3 249.1 20 EQUALS: Disposable personal income 1,086.7 1,184.4 1,303.0 1,248.0 1,285.3 1,319.1 1,359.6 1,391.6 1,433.3 21 LESS: Personal outlays 1,003.0 1,116.3 1,236.1 1,195.8 1,217.8 1,244.8 1,285.9 1,309.2 1,357.0 22 EQUALS: Personal saving 83.6 68.0 66.9 52.2 67.5 74.3 73.7 82.4 76.3 MEMO ITEMS : Per capita (1972 dollars): 23 Gross national product 5,629 5,906 6,144 6,044 6,120 6,191 6,226 6,215 66,,333333 24 Personal consumption expenditures 3,626 3,808 3,954 3,916 3,922 3,953 4,030 4,009 4,060 25 Disposable personal income 4,025 4,136 4,271 4,185 4,241 4,293 4,365 4,370 4,399 7.7 5.7 5.1 4.2 5.3 5.6 5.4 5.9 5.3 Gross saving 27 Gross private saving 259.8 270.7 290.8 259.6 288.6 310.7 304.3 305.4 319.9 28 Personal saving 83.6 68.0 66.9 52.2 67.5 74.3 73.7 82.4 76.3 29 Undistributed corporate profits1 14.2 24.8 28.7 20.1 28.7 38.0 28.0 15.6 30.3 30 Corporate inventory valuation adjustment.... -12.4 -14.5 -14.8 -20.3 -16.6 -7.7 -14.8 -23.5 -24.9 Capital consumption allowances: 101.3 111.5 120.9 116.6 119.8 122.6 124.6 127.4 130.5 60.7 66.3 74.3 70.7 72.6 75.9 77.9 79.9 82.8 33 Wage accruals less disbursements 34 Government surplus, or deficit (—), national income and product accounts -64.4 -33.2 -18.6 -7.8 -11.8 -25.2 -29.6 -21.1 6.2 35 Federal -70.6 -53.8 -48.1 -37.3 -40.3 -56.4 -58.6 -52.6 -23.6 36 State and local 6.2 20.7 9.6 29.5 28.5 31.2 29.0 31.5 29.8 37 Capital grants received by the United States, net 202.8 241.7 276.9 255.2 280.4 292.6 279.5 286.4 326.6 39 Gross private domestic 190.9 243.0 297.8 272.5 295.6 309.7 313.5 322.7 345.4 11.9 -1.2 -20.9 -17.3 -15.2 -17.1 -34.1 -36.3 -18.9 41 Statistical discrepancy 7.4 4.2 4.7 3.4 3.7 7.1 4.8 2.2 .5 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 • October 1978 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1977 1978 IItteemm ccrreeddiittss oorr ddeebbiittss 11997755 11997766 11997777 QL Q2 Q3 Q4 QL 1 Merchandise exports 107,088 114,694 120,585 29,477 30,638 31,013 29,457 30,664 2 Merchandise imports 98,041 124,047 151,644 36.495 37,259 38,263 39,627 41,865 3 Merchandise trade balance 2 9,047 -9,353 -31,059 -7,018 -6,621 -7,250 -10,170 -11,201 4 Military transactions, net -876 312 1,334 568 295 467 5 307 5 Investment income, net3 12,795 15,933 17,507 4,599 4,487 4,610 3,812 4,161 6 Other service transactions, net 2,095 2,469 1,705 229 412 583 482 428 7 Balance on goods and services3,4 23,060 9,361 -10,514 -1,623 -1,427 -1,591 -5,870 -5,700 8 Remittances, pensions, and other transfers -1,721 -1,878 -1,932 -490 -480 -490 -473 -502 9 U.S. Government grants (excluding military) -2,894 -3,145 -2,776 -636 -763 -787 -591 -752 10 Balance on current account3 1188,,444455 44,,333399 --1155,,222211 -2,749 -2,670 -2,868 -6,934 -6,954 --22,,333399 --22,,449922 --55,,117799 --55,,221122 --66,,446666 12 Change in U.S. Government assets, other than official reserve assets, net (increase, —) -3,470 -4,213 -3,679 -949 -795 -1,098 -838 -900 13 Change in U.S. official reserve assets (increase, —) --660077 --22,,553300 -231 -388 6 115511 224466 14 Gold -118 --5588 -60 15 Special Drawing Rights (SDR's) -66 -78 -121 -83 —9 -29 — 16 16 Reserve position in International Monetary Fund (IMF). -466 -2,212 -294 -389 -80 133 42 324 17 Foreign currencies -75 -240 302 59 169 27 47 -62 18 Change in U.S. private assets abroad (increase, —)3 -35,368 -43,865 -30,740 3 -11,214 -5,668 -13,862 -13,632 -13,532 -21,368 -11,427 3,684 -4,582 -1,779 -8,750 -6,270 20 Long-term -2,357 -2,362 -751 -306 18 -447 -16 -311 21 Short-term -11,175 -19,006 -10,676 3,990 -4,600 -1,332 -8,734 -5,959 22 Nonbank-reported claims -1,357 -2,030 -1,700 -768 -1,137 1,389 -1,184 -2,015 23 Long-term -366 5 25 33 66 205 -279 -60 24 Short-term -991 -2,035 -1,725 -801 -1,203 1,184 -905 -1,955 25 U.S. purchase of foreign securities, net -6,235 -8,852 -5,398 -736 -1,766 -2,165 -731 -934 26 U.S. direct investments abroad, net3 -14,244 -11,614 -12,215 -2,177 -3,729 -3,113 -3,197 -4,413 27 Change in foreign official assets in the United States (increase, -f) 6,907 18,073 37,124 5,451 7,884 8,246 15,543 15,691 28 U.S. Treasury securities 4,408 9,333 30,294 5,323 5,123 6,948 12,900 12,965 29 Other U.S. Government obligations 905 573 2,308 98 610 627 973 117 30 Other U.S. Government liabilities 5 1,647 4,993 1,644 505 417 332 390 785 31 Other U.S. liabilities reported by U.S. banks -2,158 969 773 -725 752 -163 909 1,456 32 Other foreign official assets 6 2,104 2,205 2,105 250 982 502 371 368 33 Change in foreign private assets in the United States (increase, +)3 8,643 18,897 13,746 -2,962 6,180 6,005 4,522 2,125 34 U.S. bank-reported liabilities 628 10,990 6,719 -5,304 6,240 2,640 3,143 -314 35 Long-term -280 231 373 42 104 194 33 250 36 Short-term 908 10,759 6,346 -5,346 6,136 2,446 3,110 -564 37 U.S. nonbank-reported liabilities 319 -507 257 -346 -412 590 425 418 38 Long-term 406 -958 -620 -220 -176 18 -242 45 39 Short-term -87 451 877 -126 -236 572 667 373 40 Foreign private purchases of U.S. Treasury securities, net 2,590 2,783 563 981 -1,370 1,251 -299 881 41 Foreign purchases of other U.S. securities, net 2,503 1,284 2,869 828 725 513 803 462 42 Foreign direct investments in the United States, net3. .. 2,603 4,347 3,338 880 996 1,012 450 679 43 Allocation of SDR's 44 Discrepancy 55,,444499 99,,330000 -998 1,593 609 -4,769 1,569 3,423 45 Owing to seasonal adjustments 113300 --111111 --22,,223300 22,,227766 117766 46 Statistical discrepancy in recorded data before seasonal adjustment 5,449 9,300 -998 1,463 786 -2,539 -707 3,247 MEMO ITEMS: Changes in official assets: 47 U.S. official reserve assets (increase, —) -607 -2,530 -231 —388 6 151 246 48 Foreign official assets in the United States (increase, +). 55,,225599 1133,,008800 3355,,448800 44,,994466 77,,446677 7,914 15,153 1144,,990066 49 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the United States (part of line 27 above) 77,,009922 99,,558811 66,,773333 22,,992277 1,344 1,438 1,024 1,810 50 Transfers under military grant programs (excluded from lines 1, 4, and 9 above) 2,207 373 194 39 53 31 71 77 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 5 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. 6 Consists of investments in U.S. corporate stocks and in debt securi- 3 Includes reinvested earnings of incorporated affiliates. ties of private corporations and state and local governments. 4 Differs from the definition of "net exports of goods and services" in 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. 1978 IItteemm 11997755 '' 11997766 rr 11997777 Feb. Mar. Apr. May June July Aug. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 107,589 115,156 121,151 9,922 10,912 11,635 11,754 12,126 11,793 12,469 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 96,573 121,009 147,685 14,440 13,699 14,496 13,992 13,723 14,779 14,090 3 Trade balance 11,016 -5,853 -26,534 -4,518 -2,787 -2,861 -2,238 -1,597 -2,987 -1,621 NOTE.—Bureau of Census data reported on a free-alongside-ship and are reported separately in the "service account"). On the import (f.a.s.) value basis. Effective January 1978, major changes were made in side, the largest single adjustment is the addition of imports into the coverage, reporting, and compiling procedures. The international- Virgin Islands (largely oil for a refinery on St. Croix), which are not accounts-basis data adjust the Census basis data for reasons of coverage included in Census statistics. and timing. On the export side, the largest adjustments are: (a) the addition of exports to Canada not covered in Census statistics, and (b) the exclusion SOURCE.—FT 900 "Summary of U.S. Export and Import Merchandise of military exports (which are combined with other military transactions Trade" (U.S. Dept. of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1978 TTyyppee 11997755 11997766 11997777 Mar. Apr. May June July Aug. Sept. 1 Total 16,226 18,747 19,312 19,192 18,842 18,966 18,864 18,832 18,783 3 18,850 2 Gold stock, including Exchange Stabilization Fund1 11,599 11,598 11,719 11,718 11,718 11,718 11,706 11,693 rl1,679 11,668 3 Special Drawing Rights2 2,335 2,395 2,629 2,693 2,669 2,760 2,804 2,860 2,885 3 2,942 4 Reserve position in International Monetary Fund 2,212 4,434 4,946 4,701 4,388 4,347 4,270 4,177 4,196 34,214 5 Convertible foreign currencies 80 320 18 80 67 141 84 102 23 26 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 Sept. amounted to $18,298; SDR holdings, $2,770; and reserve 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's. position in IMF $3,834. 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 • October 1978 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1978 Asset account 1975 1976 1977 Jan. Feb. Mar. Apr. May2 June Julyf All foreign countries 1 Total, all currencies 176,493 219,420 258,897 258,502 256,779 263,468 260,558 259,452 271,706 269,556 2 Claims on United States 6,743 7,889 11,623 9,874 9,361 11,013 13,754 8,727 10,841 9,264 3 Parent bank 3,665 4,323 7,806 5,932 5,410 6,708 9,348 4.863 6,744 5,089 4 Other 3,078 3,566 3,817 3,942 3,951 4,305 4,406 3.864 4,097 4,175 5 Claims on foreigners 163,391 204,486 238,848 239,622 238,658 243,316 237,447 241,784 251,847 250,704 6 Other branches of parent bank. 34,508 45,955 55,772 55,052 54,201 55,554 51,817 52,719 55,358 55,226 7 Banks 69,206 83,765 91,883 92,229 92,341 95,348 92,370 r91,912 96,675 94,655 8 Public borrowers1 5,792 10,613 14,634 15,274 15,093 15,284 15,207 '21,139 22,495 22,889 9 Nonbank foreigners 53,886 64,153 76,560 77,067 77,023 77,130 78,053 '76,014 77,319 77,934 10 Other assets 6,359 7,045 8,425 9,007 8,761 9,139 9,357 8,941 9,018 9,588 11 Total payable in U.S. dollars.. . 132,901 167,695 193,764 192,795 189,372 194,855 194,168 '192,466 202,792 198,209 12 Claims on United States 6,408 7,595 11,049 9,252 8,629 10,320 12,952 8,035 10,025 8,466 13 Parent bank 3,628 4,264 7,692 5,781 5,162 6,611 9,158 4,712 6,574 4,899 14 Other 2,780 3,332 3,357 3,470 3,467 3,709 3,795 3,323 3,451 3,567 15 Claims on f oreigners 123,496 156,896 178,896 179,237 176,737 180,341 176,877 '180,331 188,676 185,436 16 Other branches of parent bank 28,478 37,909 44,256 43,618 42,664 43,502 40,628 41,209 43,549 43,447 17 Banks 55,319 66,331 70,786 70,535 69,721 71,934 70,504 '70,124 74,901 71,588 18 Public borrowers1 , 4,864 9,022 12,632 13,097 13,087 13,276 13,232 '18,275 19,515 20,223 19 Nonbank foreigners 34,835 43,634 51,222 51,987 51,267 51,628 52,513 '50,723 50,711 50,178 20 Other assets 2,997 , 3,204 3,820 4,307 4,005 4,195 4,339 4,100 4,091 4,307 United Kingdom 21 Total, all currencies 74,883 81,466 90,933 90,789 89,626 90,162 87,100 89,645 93,538 92,989 22 Claims on United States 2,392 3,354 4,341 3,701 2,547 3,075 2,506 2,333 3,134 2,615 23 Parent bank 1,449 2,376 3,518 2,928 1,775 2,274 1,548 1,476 2,279 1,515 24 Other 943 978 823 773 771 802 958 857 855 1,100 25 Claims on foreigners 70,331 75,859 84.016 84,346 84,423 84,648 81,871 84,700 87,816 87,479 26 Other branches of parent bank. 17,557 19,753 22.017 21,427 21,114 21,092 19,514 19,550 19,944 20,438 27 Banks 35,904 38,089 39,899 40,605 40,996 41,612 40,436 40,807 43,044 42,465 28 Public borrowers1 881 1,274 2,206 2,303 2,100 2,192 2,020 4,150 4,400 A,251 29 Nonbank foreigners 15,990 16,743 19,895 20,010 20,213 19,753 19,901 20,193 20,428 20,319 30 Other assets 2,159 2,253 2,576 2,742 2,656 2,439 2,724 2,612 2,588 2,895 31 Total payable in U.S. dollars 57,361 61,587 66,635 65,744 63,870 64,565 62,330 63,565 67,016 65,452 32 Claims on United States 2,273 3,275 4,100 3,443 2,186 2,850 2,312 2,163 2,862 2,321 33 Parent bank 1,445 2,374 3,431 2,815 1,558 2,236 1,520 1,452 2,178 1,386 34 Other 828 902 669 628 628 614 793 711 684 935 35 Claims on foreigners 54,121 57,488 61,408 61,094 60,521 60,610 58,845 60,277 63,051 61,938 36 Other branches of parent bank, 15,645 17,249 18,947 18,102 17,782 17,603 16,531 16,406 17,025 17,438 37 Banks 28,224 28,983 28,530 28,661 28,641 28,947 28,177 28,324 30,686 29,458 38 Public borrowers1 648 846 1,669 1,770 1,640 1,710 1,631 3,254 3,366 3,611 39 Nonbank foreigners 9,604 10,410 12,263 12,560 12,457 12,349 12,507 12,293 11,974 11,431 40 Other assets 967 824 1,126 1,208 1,163 1,104 1,173 1,125 1,103 1,193 Bahamas and Caymans 41 Total, all currencies. 45,203 66,774 79,052 80,081 79,711 82,947 84,409 82,083 84,692 82,149 42 Claims on United States. 3,229 3,508 5,782 4,994 5,837 6,761 9,908 5,237 6,399 5,142 43 Parent bank 1,477 1,141 3,051 2,097 2.918 3,585 6,710 2,502 3,443 2,374 Other 1,752 2,367 2,731 2,897 2.919 3,176 3,198 2,735 2,956 2,768 45 Claims on foreigners 41,040 62,048 71,671 73,470 72,272 74,397 72,720 74,846 76,322 74,982 46 Other branches of parent bank. 5,411 8,144 11,120 11,272 11,025 11,367 9,565 10,580 10,792 10,275 47 Banks 16,298 25,354 27,939 28,810 28,179 29,602 28,712 '29,045 30,344 29,295 48 Public borrowers1 3,576 7,105 9,109 9,322 9,486 9,438 9,362 '11,424 12,394 12,580 49 Nonbank foreigners 15,756 21,445 23,503 24,067 23,583 23,990 25,082 '23,797 22,792 22,832 50 Other assets 933 1,217 1,599 1,617 1,602 1,789 1,781 2,000 1,971 2,025 51 Total payable in U.S. dollars. . 41,887 62,705 73,987 74,831 74,283 77,521 79,324 '76,660 79,277 76,498 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.13 Continued 1978 Liability account 1975 1976 1977 Jan. Feb. Mar. Apr. May2 June July27 All foreign countries 52 Total, all currencies . 176,493 219,420 258,897 258,502 256,779 263,468 260,558 259,452 271,706 269,556 53 To United States 20,221 32,719 44,154 45,810 45.810 50,860 49,088 49,907 50,254 51,890 54 Parent bank 12,165 19,773 24,542 28,311 26,999 27,650 26,643 28,500 24,987 28,153 5 5 6 5 N O o th n e b r a b n a k n s ks in United States.. " } 8,057 12,946 19,613 17,499 18.811 23,209 22,445 \ f 1 9 2 , ,2 1 8 2 7 0 1 1 0 4 , , 4 7 8 8 5 2 1 8 5 , , 5 1 6 7 3 4 57 To foreigners 149,815 179,954 206,579 204,471 203,041 204,629 202,946 202,241 213,724 209,313 58 Other branches of parent bank. . 34,111 44,370 53,244 51,901 50,896 52,090 48,850 r50,368 53,547 53,171 59 Banks 72,259 83,880 94,140 90,744 90,904 90,557 91,699 r87,567 93,501 88,455 60 Official institutions 22,773 25,829 28,110 28,677 28,850 28,018 28,568 29,776 31,320 31,714 61 Nonbank foreigners . 20,672 25,877 31,085 33,149 32,390 33,963 33,830 r34,530 35,356 35,973 62 Other liabilities 6,456 6,747 8,163 8,220 7,929 7,980 8,524 7,304 7,728 8,353 63 Total payable in U.S. dollars . 135,907 173,071 198,572 197,760 194,537 199,879 197,575 196,746 206,900 202,411 64 To United States 19,503 31,932 42,881 44,601 44,472 49,248 47,811 48,278 48,548 49,964 65 Parent bank 11,939 19,559 24,213 28,017 26,688 27,321 26,348 27,865 24,273 27,383 6 6 6 7 N O o th n e b r a b n a k n s ks in United States.. • } 7,564 12,373 18,669 16,584 17,784 21,927 21,463 \ ( 1 8 1 , ,6 8 0 1 3 0 1 1 4 0 , ,1 0 9 8 2 3 1 8 4 , , 2 35 3 1 0 68 To foreigners 112,879 137,612 151,363 148,878 145,958 146,406 145,350 144,758 154,341 148,135 69 Other branches of parent bank. . 28,217 37,098 43,268 41,812 40,720 41,636 39,214 40,099 42,464 42,235 70 Banks 51,583 60,619 64,872 61,571 60,815 60,353 61,665 r57,871 62,523 56,375 71 Official institutions 19,982 22,878 23,972 24,546 24,453 23,593 23,865 25,124 26,493 26,726 72 Nonbank foreigners . 13,097 17,017 19,251 20,949 19,970 20,824 20,606 r21,664 22,861 22,799 73 Other liabilities 3,526 3,527 4,328 4,282 4,107 4,224 4,414 3,710 4,011 4,312 United Kingdom 74 Total, all currencies 74,883 81,466 90,933 90,789 89,626 90,162 87,100 89,645 93,538 92,989 75 To United States 5,646 5,997 7,753 6,008 6,785 7,609 7,266 6,758 8,174 7,999 76 Parent bank 2,122 1,198 1,451 1,253 1,550 1,646 1,983 1,636 1,822 1,949 7 7 7 8 N O o th n e b r a b n a k n s ks in United States. • } 3,523 4,798 6,302 4,755 5,236 5,962 5,283 \ f 2 2 , , 7 3 7 4 6 6 3 3, , 0 2 7 7 9 3 2 3 , , 9 1 1 3 1 9 79 To foreigners . 67,240 73,228 80,736 82,160 80,331 80,036 77,169 80,108 82,703 81,859 80 Other branches of parent bank 6,494 7,092 9,376 9,999 9,037 8,674 8,014 9,009 9,700 10,106 81 Banks 32,964 36,259 37,893 36,915 36,764 36,250 34,940 35,980 36,950 34,779 82 Official institutions 16,553 17,273 18,318 19,309 19,580 19,262 18,817 19,087 19,980 20,746 83 Nonbank foreigners 11,229 12,605 15,149 15,937 14,950 15,850 15,399 16,032 16,073 16,228 84 Other liabilities 1,997 2,241 2,445 2,621 2,509 2,518 2,665 2,779 2,661 3,131 85 Total payable in U.S. dollars 57,820 63,174 67,573 66,619 65,021 65,477 62,662 64,025 67,718 65,671 86 To United States 5,415 5,849 7,480 5,737 6,479 7,250 6,938 6,446 7,852 7,640 87 Parent bank 2,083 1,182 1,416 1,222 1,524 1,598 1,953 1,609 1,794 1,917 8 8 8 9 O N t o h n e b r a b n a k n s ks in United States. • | 3,332 4,667 6,064 4,515 4,955 5,652 4,985 ( ( 2 2 , , 2 5 8 5 1 6 2 3 , , 8 1 8 7 2 6 2 2, , 8 8 9 2 5 8 90 To foreigners 51,447 56,372 58,977 59,671 57,386 57,045 54,498 56,274 58,638 56,648 91 Other branches of parent bank 5,442 5,874 7,505 8,164 7,211 6,747 6,202 6,696 7,041 7,704 92 Banks 23,330 25,527 25,608 24,015 23,352 23,075 22,115 22,554 23,566 20,644 93 Official institutions 14,498 15,423 15,482 16,459 16,541 16,213 15,672 15,908 16,772 17,280 94 Nonbank foreigners 8,176 9,547 10,382 11,033 10,282 11,009 10,509 11,116 11,259 11,020 95 Other liabilities 959 953 1,116 1,210 1,156 1,182 1,227 1,305 1,228 1,383 Bahamas and Caymans 96 Total, all currencies 45,203 66,774 79,052 80,081 79,711 82,947 84,409 82,083 84,692 82,149 97 To United States 11,147 22,721 32,176 35, 795 35,082 38,380 37,256 37,350 35,140 37,552 98 Parent bank 7,628 16,161 20,956 24,713 23,374 23,854 22,289 23,333 19,101 22,399 1 9 0 9 0 N Ot o h n e b r a b n a k n s ks in United States. ' J 3,520 6,560 11,220 11,082 11,708 14,526 14,967 ( f 8 5 , , 2 7 7 4 5 2 1 5 0 , , 6 4 2 1 8 1 1 4 0 , , 6 5 0 4 7 6 101 To foreigners 32,949 42,899 45,292 42,929 43,272 43,153 45,610 43,394 48,133 43,142 102 Other branches of parent bank.. 10,569 13,801 12,816 11,642 11,598 10,839 10,288 11,250 11,657 10,540 103 Banks 16,825 21,760 24,717 22,264 22,840 23,374 25,847 r21,452 25,746 21,936 104 Official institutions 3,308 3,573 3,000 3,183 3,207 3,060 3,489 4,419 4,583 4,221 105 Nonbank foreigners 2,248 3,765 4,759 5,840 5,628 5,880 5,986 r6,273 6,147 6,445 106 Other liabilities 1,106 1,154 1,584 1,357 1,358 1,414 1,543 1,339 1,419 1,455 107 Total payable in U.S. dollars 42,197 63,417 74,463 75,479 75,253 78,467 80,243 78,254 80,651 78,135 1 In May 1978 a broader category of claims on foreign public borrowers, 2 In May 1978 the exemption level for branches required to report including corporations that are majority owned by foreign governments, was increased, which reduced the number of reporting branches. replaced the previous, more narrowly defined claims on foreign official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • October 1978 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1978 IItteemm 11997755 11997766 11997777 Apr. Feb. Mar. May June July* Aug.f A A. By type 1111 TTTToooottttaaaallll iiii 82,572 95,634 131,049 137,909 145,998 '142,625 '140,918 140,625 144,147 146,065 2222 LLLLiiiiaaaabbbbiiiilllliiiittttiiiieeeessss rrrreeeeppppoooorrrrtttteeeedddd bbbbyyyy bbbbaaaannnnkkkkssss iiiinnnn tttthhhheeee UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss2222 16,262 17,231 18,003 19,020 19,459 '19,450 '19,057 18,821 19,445 20,022 3333 UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy bbbbiiiillllllllssss aaaannnndddd cccceeeerrrrttttiiiiffffiiiiccccaaaatttteeeessss3333 34,199 37,725 47,820 52,689 59,302 57,613 56,449 55,606 56,842 56,299 UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy bbbboooonnnnddddssss aaaannnndddd nnnnooootttteeeessss:::: 4444 MMMMaaaarrrrkkkkeeeettttaaaabbbblllleeee 6,671 11,788 32,116 33,554 34,528 32,838 32,272 32,865 34,158 34,868 5555 NNNNoooonnnnmmmmaaaarrrrkkkkeeeettttaaaabbbblllleeee4444 19,976 20,648 20,443 19,602 19,513 19,444 19,355 19,284 19,214 20,375 6666 UUUU....SSSS.... sssseeeeccccuuuurrrriiiittttiiiieeeessss ooootttthhhheeeerrrr tttthhhhaaaannnn UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss 5555 5,464 8,242 12,667 13,044 13,196 13,280 13,785 14,049 14,448 14,501 B. By area 7777 TTTToooottttaaaallll 82,572 95,634 131,049 137,909 145,998 '142,625 '140,918 140,625 144,147 146,065 8888 WWWWeeeesssstttteeeerrrrnnnn EEEEuuuurrrrooooppppeeee1111 45,701 45,882 70,707 74,401 76,238 73,666 72,735 74,493 75,748 79,717 9999 CCCCaaaannnnaaaaddddaaaa 3,132 3,406 2,334 1,389 1,633 2,493 2,702 2,609 2,490 2,071 11110000 LLLLaaaattttiiiinnnn AAAAmmmmeeeerrrriiiiccccaaaa aaaannnndddd CCCCaaaarrrriiiibbbbbbbbeeeeaaaannnn 4,461 4,926 4,649 5,179 5,773 5,554 5,426 4,665 4,630 4,611 11111111 AAAAssssiiiiaaaa 24,411 37,767 50,693 54,385 59,587 '57,945 '57,203 56,199 58,081 56,847 11112222 AAAAffffrrrriiiiccccaaaa 2,983 1,893 1,742 1,899 1,756 1,872 1,945 1,689 2,219 2,035 11113333 OOOOtttthhhheeeerrrr ccccoooouuuunnnnttttrrrriiiieeeessss6666 1,884 1,760 924 656 1,011 1,095 907 970 979 784 1 Includes the Bank for International Settlements. 5 Debt securities of U.S. Govt, corporations and Federally sponsored 2 Principally demand deposits, time deposits, bankers acceptances, agencies, and U.S. corporate stocks and bonds. commercial paper, negotiable time certificates of deposit, and borrowings 6 Includes countries in Oceania and Eastern Europe. under repurchase agreements. 3 Includes nonmarketable certificates of indebtedness (including those NOTE.—Based on Treasury Dept. data and on data reported to the payable in foreign currencies through 1974) and Treasury bills issued to Treasury Dept. by banks (including Federal Reserve Banks) and securities official institutions of foreign countries. dealers in the United States. 4 Excludes notes issued to foreign official nonreserve agencies. Includes • For a description of the changes in the International. Statistics bonds and notes payable in foreign currencies. tables, see July 1978 BULLETIN, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A59 3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1978 1975 1976 1977 Feb. Mar. Apr. A May June July*7 Aug.*7 A. By holder and type of liability All foreigners. 95,590 110,657 126,168 130,105 139,414 141,652 '137,307 135,743 137,180 141,115 2 Banks' own liabilities. 65,364 61,604 60,547 61,411 64,017 3 Demand deposits... 13,564 16,803 18,996 17,675 17,163 17,863 17,828 17,189 17,953 16,101 4 Time deposits1 10,267 11,347 11,521 12,038 11,274 11,665 11,810 11,638 11,921 12,623 5 Other2 7,343 7,239 6,495 6,876 7,243 6 Own foreign offices 3 28,493 24,727 25,225 24,661 28,050 7 Banks' custody liabilities4 '76,288 '75,704 75,196 75,769 77,098 8 U.S. Treasury bills and certificates5 37,414 40,744 48,906 54,233 61,071 59,104 58,262 57,138 57,629 57,262 9 Other negotiable and readily transferable instruments6 '14,176 '14,796 15,358 15,419 17,192 10 Other 3,008 2,646 2,700 2,722 2,644 11 Nonmonetary international and regional organizations7 5,699 5,714 3,274 3,102 3,618 2,998 3,120 2,942 2,678 2,823 12 Banks' own liabilities. 831 499 480 1,017 808 13 Demand deposits... 139 290 231 180 245 272 286 265 257 142 14 Time deposits1 148 205 139 120 109 143 59 119 116 97 15 Other2 416 154 97 644 569 16 Banks' custody liabilities4 2,166 2,621 2,462 1,662 2,014 17 U.S. Treasury bills and certificates 2,554 2,701 706 1,11 1,317 892 1,153 922 228 368 18 Other negotiable and readily transferable instruments6 1,274 1,467 1,537 1,432 1,645 19 Other 1 1 3 1 20 Official institutions 8 . 50,461 54,956 65,822 71,709 78,761 '77,063 '75,506 74,427 76,286 76,320 21 Banks' own liabilities. 9,586 9,017 8,453 9,422 9,057 22 Demand deposits... 2,644 3,394 3,528 2,782 2,804 3,703 3,092 2,611 3,473 2,639 23 Time deposits1 3,423 2,321 1,797 2,570 1,777 1,884 1,982 1,981 2,277 2,583 24 Other2 3,999 3,943 3,862 3,673 3,835 25 Banks' custody liabilities4 '67,477 '66,489 65,974 66,864 67,263 26 U.S. Treasury bills and certificates5 34,199 37,725 47,820 52,689 59,302 57,613 56,449 55,606 56,842 56,299 27 Other negotiable and readily transferable instruments6 '9,375 '9,457 9,870 9,498 10,326 28 Other 489 583 498 524 638 29 Banks 9 29,330 37,174 42,335 40,549 42,115 47,283 43,531 43,132 42,904 46,155 30 Banks' own liabilities 42,841 39,251 38,697 38,341 41,141 31 Unaffiliated foreign banks. 14,348 14,524 13,472 13,680 13.091 32 Demand deposits 7,534 9,104 10,933 10,570 10,113 10,195 10,343 10,164 10,240 9,229 33 Time deposits1 1,873 2,297 2,040 1,823 1,734 1,643 1,595 1,255 1,321 1,395 34 Other2 2,511 2,585 2,053 2,119 2,468 35 Own foreign offices3 28,493 24,727 25,225 24,661 28,050 36 Banks' custody liabilities4 4,442 4,280 4,435 4,564 5,014 37 U.S. Treasury bills and certificates 335 119 141 165 161 314 363 300 269 296 38 Other negotiable and readily transferable instruments6 1,991 2,174 2,260 2,417 2,892 39 Other 2,137 1,744 1,875 1,877 1,826 40 Other foreigners. 10,100 12,814 14,736 14,745 14,919 14,309 15,150 15,242 15,312 15,818 41 Banks' own liabilities. 12,106 12,836 12,917 12,631 13,010 42 Demand deposits... 3,248 4,015 4,304 4,143 4,000 3,693 4,106 4,149 3,983 4,091 43 Time deposits1 4,823 6,524 7,546 7,526 7,654 7,995 8,173 8,284 8,208 8,548 44 Other2 418 557 484 441 371 45 Banks' custody liabilities4 2,203 2,314 2,325 2,680 2,808 46 U.S. Treasury bills and certificates 198 240 268 286 297 310 290 300 47 Other negotiable and readily transferable instruments6 1,536 1,699 1,691 2,071 2,329 48 Other 381 319 323 320 179 49 MEMO: Negotiable time certificates of deposit held in custody for foreigners '8,666 '9,135 9,260 9,290 9,990 1 Excludes negotiable time certificates of deposit, which are included 6 Principally bankers acceptances, commercial paper, and negotiable in "Other negotiable and readily transferable instruments." time certificates of deposit. 2 Includes borrowings under repurchase agreements. 7 Principally the International Bank for Reconstruction and Develop- 3 U.S. banks: includes amounts due to own foreign branches and ment, and the Inter-American and Asian Development Banks. foreign subsidiaries consolidated in "Consolidated Report of Condition" 8 Foreign central banks and foreign central governments and the filed with bank regulatory agencies. Agencies, branches, and majority- Bank for International Settlements. owned subsidiaries of foreign banks: principally amounts due to head 9 Excludes central banks, which are included in "Official institutions." office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank. NOTE.—Data for time deposits prior to April 1978 represent short- 4 Financial claims on residents of the United States, other than long- term only. term securities, held by or through reporting banks. A For a description of the changes in the International Statistics 5 Includes nonmarketable certificates of indebtedness (including those Tables, see July 1978 BULLETIN, p. 612. payable in foreign currencies through 1974) and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • October 1978 3.15 Continued 1978 Item 1975 1976 1977 Feb. Mar. Apr. May June July*> Aug.f B. By area and country 1 Total 95,590j 110,657 126,168 130,105 139,414 141,652 137,307 135,743 137,180 141,115 2 Foreign countries. 89,891 104,943 122,893 127,002 135,795 138,654 134,187 132,801 134,502 3 Europe 44,072 47,076 60,295 60,970 63,994 63,067 62,972 64,302 64,623 4 Austria 759 346 318 302 419 322 350 349 372 5 Belgium-Luxembourg... 2,893 2,187 2,531 2,765 2,992 3,109 2,893 2,756 2,276 6 Denmark 329 356 770 1,050 1,044 1,063 1,110 1.335 1,542 7 Finland 391 416 323 307 357 430 393 352 407 8 France 7,726 4.876 5,269 4,668 5,033 5,499 6,278 6,562 7,353 9 Germany 4,543 6,241 7,239 10,585 11,530 11,013 9,537 10,029 9,727 10 Greece 284 403 603 548 571 588 563 597 646 11 Italy 1,059 3,182 6,857 5,943 5,626 5,987 6,365 6,870 7,037 12 Netherlands 3,407 3,003 2,869 3,029 3,132 3,011 2,993 3,118 3,078 13 Norway 994 782 944 888 1,211 1,465 1.643 1,869 1,737 14 Portugal 193 239 273 188 174 164 288 191 227 15 Spain 423 559 619 648 717 659 717 688 709 16 Sweden 2,277 1,692 2,712 2,826 2,816 3,177 3,302 3,385 3,340 17 Switzerland 8,476 9,460 12,343 12,689 13,549 13,090 12,534 12,415 11,888 18 Turkey 118 166 130 171 115 249 200 110 147 19 United Kingdom 6,867 10,018 14,125 11,929 12,274 11,021 11,609 11,471 11,770 20 Yugoslavia 126 189 232 196 138 192 168 229 192 21 Other Western Europe *. 2,970 2,673 1,804 1,966 2,030 1,757 1,721 1,655 1,895 22 U.S.S.R 40 51 98 98 72 62 96 66 55 23 Other Eastern Europe2.. 197 236 236 175 193 206 211 255 222 24 Canada. 2,919 4,659 4,607 4,758 4,564 5,923 6,600 5,816 5,623 25 Latin America and Caribbean 15,028 19,132 23,670 24,286 25,338 28,764 24,995 25,367 24,759 26 Argentina 1,146 1,534 1,416 1,928 1,801 1,861 2,260 1,692 1,550 27 Bahamas 1,874 2,770 3,596 3,755 4,199 7,259 3,327 3,981 3,612 28 Bermuda 184 218 321 286 322 364 340 399 383 29 Brazil 1,219 1,438 1,396 977 1,327 1,414 1,298 1,220 1,295 30 British West Indies 1,311 1.877 3,998 3,993 4,097 4,814 3,949 4,742 4,009 31 Chile 319 337 360 412 415 394 361 376 380 32 Colombia 417 1,021 1,221 1,207 1,290 1,350 1,300 1,424 1,429 33 Cuba 6 6 6 7 8 6 l\ 7 9 34 Ecuador 120 320 330 376 438 360 318 325 378 35 Guatemala3 447 552 448 414 36 Jamaica3 41 46 66 75 37 Mexico 2,070 2,870 2,876 3,084 2,793 2,677 2,965 2,774 2,920 38 Netherlands Antilles4 129 158 196 203 212 212 289 320 435 39 Panama 1,115 1,167 2,331 2,121 2,132 2,176 2,559 2.336 2,586 40 Peru 243 257 287 267 262 309 274 282 309 41 Uruguay 172 245 243 280 226 221 208 220 218 42 Venezuela 3,309 3,118 2,929 3,246 3,438 3,225 3,298 3,147 3,229 43 Other Latin America and Caribbean., 1,393 1,797 2,167 2,147 2,380 1,636 1.644 1,608 1,531 44 Asia 22,384 29,766 30,488 33,330 37,995 r36,625 r35,712 33,665 35,170 45 China, People's Republic of (Mainland). 123 48 53 48 56 50 47 53 47 China, Republic of (Taiwan) 1,025 990 1,013 995 1,014 1,208 1,043 1,053 1,195 Hong Kong 605 894 1,094 1,121 1,174 1,118 1,489 1,085 1,191 India 115 638 961 1,001 947 937 962 899 798 Indonesia 369 340 410 506 492 649 451 330 597 Israel 387 392 559 454 485 486 568 476 518 Japan 10,207 14,363 14,616 17,024 21,725 20,392 19,998 19,020 20,374 Korea 390 438 602 737 682 753 817 748 714 Philippines 700 628 687 615 647 601 688 595 640 Thailand 252 277 264 309 317 258 304 297 320 Middle East oil-exporting countries 5.... 7,355 9,360 8,979 9,329 9,165 r8,866 r8,058 7,894 7,267 Other Asia 856 1,398 1,250 1,190 1,291 1,307 1,289 1,215 1,509 57 Africa 3,369 2,298 2,535 2,645 2,469 2,699 2,641 2,360 3,013 58 Egypt 342 333 404 357 341 455 461 402 594 59 Morocco 68 87 66 79 51 31 29 28 28 60 South Africa 166 141 174 251 183 167 185 226 175 61 Zaire 62 36 39 50 45 46 49 44 73 62 Oil-exporting countries6. 2,250 1,133 1,155 1,263 1,226 1,393 1,244 981 1,365 63 Other Africa 481 568 698 645 623 607 673 679 778 64 Other countries., 2,119 2,012 1,297 1,014 1,434 1,575 1,267 1,288 1,315 65 Australia 2,006 1,905 1,140 870 1,229 1,275 1,129 1,085 1,158 66 All other 113 107 158 144 205 300 138 203 157 67 Nonmonetary international and regional organizations 5,699 5,714 3,274 3,102 3,618 2,998 3,120 2,942 2,678 68 International 5,415 5,157 2,752 2,558 3,094 2,591 2,430 2,311 2,020 69 Latin American regional. 188 267 278 266 261 117 430 395 417 70 Other regional7 96 290 245 279 262 290 260 236 241 1 Includes the Bank for International Settlements. Beginning April 6 Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 7 Asian, African, Middle Eastern, and European regional organizations, 2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German except the Bank for International Settlements, which is included in Democratic Republic, Hungary, Poland, and Romania. "Other Western Europe." 3 Included in "Other Latin America and Caribbean" through March 1978. A For a description of the changes in the International Statistics 4 Includes Surinam through December 1975. tables, see July 1978 BULLETIN, p. 612. 5 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 3.16 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 Area and country 1975 1976 1977 Mar. Apr. May June July* 1 Total 58,308 79,301 90,206 91,040 96,449 88,387 87,876 87,349 87,347 2 Foreign countries. 58,275 79,261 90,163 91,005 96,406 88,339 87,842 87,317 87,308 3 Europe 11,109 14,776 18,114 17,197 18,690 15,318 15,825 16,366 15,761 4 Austria 35 63 65 112 83 76 94 105 116 5 Belgium-Luxembourg.... 286 482 561 552 596 586 793 731 634 6 Denmark 104 133 173 171 166 146 186 145 129 7 Finland 180 199 172 184 189 180 184 182 190 8 France 1,565 1,549 2,082 1,988 2,265 1,646 1,679 1,891 1,813 9 Germany 380 509 644 615 783 698 752 787 689 10 Greece 290 279 206 209 211 200 279 204 190 11 Italy 443 993 1,334 1,147 1,155 907 1,194 965 1,078 12 Netherlands 305 315 338 382 470 419 468 383 436 13 Norway 131 136 162 191 184 192 209 217 210 14 Portugal 30 88 175 155 155 131 132 126 140 15 Spain 424 745 722 735 741 597 700 706 669 16 Sweden 198 206 218 200 171 206 185 219 244 17 Switzerland 199 379 564 704 696 699 391 685 631 18 Turkey 164 249 360 311 315 308 306 309 313 19 United Kingdom 5,170 7,033 8,964 8,200 9,204 6,823 6,951 7,387 6,961 20 Yugoslavia i 210 234 311 308 307 280 285 320 300 21 Other Western Europe1.. 76 85 86 74 49 268 137 153 165 22 U.S.S.R 406 485 413 383 370 337 362 319 305 23 Other Eastern Europe2. . 513 613 566 576 580 621 536 534 548 24 Canada 2,834 3,319 3,355 4,009 4,084 2,779 2,434 2,516 3,116 25 Latin America and Caribbean 23,863 38,879 45,850 47,249 49,866 48,991 46,947 45,991 46,972 26 Argentina 1,377 1,192 1,478 1,574 1,642 1,533 1,595 1,554 1,572 27 Bahamas 7,583 15,464 19,858 21,517 22,801 22,015 21,043 18,725 19,643 28 Bermuda 104 150 232 233 195 176 345 145 145 29 Brazil 3,385 4,901 4,629 4,559 4,832 4,412 4,443 4,661 4,599 30 British West Indies 1,464 5,082 6,481 5,589 6,851 7,823 6,271 7,412 6,872 31 Chile 494 597 675 700 710 722 717 745 745 32 Colombia 751 675 671 640 592 551 578 615 648 33 Cuba 14 13 10 4 3 1 34 Ecuador 252 375 517 530 544 525 530 562 546 35 Guatemala3 55 79 90 83 36 Jamaica3 19 42 53 49 37 Mexico 3,745 4,822 4,909 4,719 4,836 4,379 4,506 4,864 5,065 38 Netherlands Antilles4 72 140 224 208 215 202 206 212 206 39 Panama 1,138 1,372 1,410 1,880 1,699 2,196 2,147 1,902 2,278 40 Peru 805 933 962 931 920 885 920 930 918 41 Uruguay 57 42 80 65 65 51 58 53 52 42 Venezuela 1,319 1,828 2,318 2,421 2,367 2,146 2,233 2,242 2,337 43 Other Latin America and Caribbean., 1,302 1,293 1,394 1,678 1,593 1,302 '1,233 1,225 1,213 44 Asia 17,706 19,204 19,236 18,985 20,039 18,064 19,453 19,313 18,323 45 China, People's Republic of (Mainland). 22 3 10 13 11 15 22 13 5 China, Republic of^Taiwan) 1,053 1,344 1,719 1,663 1,656 1,422 1,456 1,343 1,193 Hong Kong 289 316 543 495 609 826 755 769 698 India 57 69 53 72 97 53 70 80 46 Indonesia 246 218 232 222 202 165 137 146 139 Israel 721 755 584 498 491 434 494 468 444 Japan 10,944 11,040 9,839 9,767 10,266 9,532 9,745 10,023 9,779 Korea 1,791 1,978 2,336 2,315 2,090 1,850 1,800 2,327 1,936 Philippines 534 719 594 642 660 615 751 679 640 Thailand 520 442 633 647 656 686 730 711 725 Middle East oil-exporting countries5.... 744 1,459 1,746 1,753 2,219 1,488 2,522 1,572 1,551 Other Asia 785 862 947 898 1,082 978 '971 1,182 1,167 57 Africa 1,933 2,311 2,518 2,548 2,632 2,235 2,219 2,137 2,133 58 Egypt 123 126 119 121 107 79 72 70 79 59 Morocco 8 27 43 44 39 35 37 38 36 60 South Africa 657 957 1,066 1,106 1,169 1,052 1,055 1,054 1,036 61 Zaire 181 112 98 98 101 77 80 79 79 62 Oil-exporting countries6. 382 524 510 531 493 416 441 383 340 63 Other 581 565 682 648 723 575 '534 513 563 64 Other countries., 830 772 1,090 1,017 1,095 953 964 995 1,002 65 Australia 700 597 905 813 879 785 798 828 836 66 All other 130 175 186 204 216 168 166 167 167 67 Nonmonetary International and Regional Organizations7 33 40 43 35 43 48 34 31 40 1 Includes the Bank for International Settlements. Beginning April 6 Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 7 Excludes the Bank for International Settlements, which is included 2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German in "Other Western Europe." Democratic Republic, Hungary, Poland, and Romania. 3 Included in "Other Latin America and Caribbean" through March • Data for period prior to April 1978 include claims of banks' domestic 1978. customers on foreigners. For a description of the changes in the Inter- 4 Includes Surinam through December 1975. national Statistics tables, see July 1978 BULLETIN, p. 612. 5 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

A62 International Statistics • October 1978 3.17 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 TTyyppee ooff ccllaaiimm 11997755 11997766 11997777 Feb. Mar. Apr. A May June July*3 Aug.f 1 Total 5588,,330088 7799,,330011 9900,,220066 9911,,004400 9966,,444499 2 Banks' own claims on foreigners 8888888888888888,,,,,,,,333333338888888877777777 8888888877777777,,,,,,,,888888887777777766666666 8888888877777777,,,,,,,,333333334444444499999999 8888888877777777,,,,,,,,333333334444444477777777 9999999900000000,,,,,,,,555555553333333333333333 3 Foreign public borrowers 44444444,,,,,,,,555555558888888844444444 55555555,,,,,,,,222222228888888833333333 55555555,,,,,,,,888888885555555511111111 66666666,,,,,,,,666666665555555533333333 77777777,,,,,,,,111111111111111199999999 4 Own foreign offices1 3333333355555555,,,,,,,,555555551111111133333333 3333333355555555,,,,,,,,777777771111111144444444 3333333311111111,,,,,,,,777777770000000077777777 3333333333333333,,,,,,,,888888881111111133333333 3333333366666666,,,,,,,,000000003333333399999999 5 Unaffiliated foreign banks 2222222288888888,,,,,,,,666666666666666600000000 2222222277777777,,,,,,,,888888880000000055555555 3333333300000000,,,,,,,,111111115555555544444444 2222222277777777,,,,,,,,444444449999999922222222 2222222277777777,,,,,,,,333333336666666622222222 6 Deposits 44444444,,,,,,,,888888886666666699999999 44444444,,,,,,,,666666665555555588888888 55555555,,,,,,,,111111111111111166666666 44444444,,,,,,,,666666662222222233333333 44444444,,,,,,,,333333335555555522222222 7 Other 2222222233333333,,,,,,,,777777779999999911111111 2222222233333333,,,,,,,,111111114444444477777777 2222222255555555,,,,,,,,000000003333333399999999 2222222222222222,,,,,,,,888888886666666699999999 2222222233333333,,,,,,,,000000001111111100000000 8 All other foreigners 1111111199999999,,,,,,,,666666662222222299999999 1111111199999999,,,,,,,,000000007777777744444444 1111111199999999,,,,,,,,666666663333333377777777 1111111199999999,,,,,,,,333333338888888899999999 2222222200000000,,,,,,,,000000001111111122222222 9 Claims of banks' domestic customers2 10 Deposits 11 Negotiable and readily transferable instruments 3 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss44 55,,446677 55,,775566 66,,117766 66,,444466 66,,776655 1133 MMEEMMOO:: CCuussttoommeerr lliiaabbiilliittyy oonn aacccceeppttaanncceess .. •• 1 1 U.S. banks: includes amounts due from own foreign branches and 3 Principally negotiable time certificates of deposit and bankers acforeign subsidiaries consolidated in "Consolidated Report of Condition" ceptances. filed with bank regulatory agencies. Agencies, branches, and majority- 4 Data for March 1978 and for period prior to that are outstanding owned subsidiaries of foreign banks: principally amounts due from head collections only. office or parent foreign bank, and foreign branches, agencies, or whollyowned subsidiaries of head office or parent foreign bank. NOTE.—Beginning April 1978, data for banks' own claims are given 2 Assets owned by customers of the reporting bank located in the on a monthly basis, but the data for claims of banks' domestic customers United States that represent claims on foreigners held by reporting banks are available on a quarterly basis only. for the account of their domestic customers. • For a description of the changes in the International Statistics tables, see July 1978 BULLETIN, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A63 3.18 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period Maturity; by borrower and area 1 Total By borrower: 2 Maturity of 1 year or less1 3 Foreign public borrowers 4 All other foreigners 5 Maturity of over 1 year i 6 Foreign public borrowers 7 All other foreigners NO FIGURES UNTIL JUNE 1978 DATA ARE AVAILABLE A By area: Maturity of 1 year or less1 8 Europe 9 Canada 10 Latin America and Caribbean 11 Asia 12 Africa 13 All other 2 Maturity of over 1 year1 14 Europe 15 Canada 16 Latin America and Caribbean 17 Asia 18 Africa 19 All other2 1 Remaining time to maturity. A For a description of the changes in the International Statistics 2 Includes nonmonetary international and regional organizations. tables, see July 1978 BULLETIN, p. 612. 3.19 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign CurrenciesA Millions of dollars, end of period 1977 1978 IItteemm 11997744 11997755 11997766 Nov. Dec. Jan. Feb. Mar. 1 Banks' own liabilities 766 560 781 944 925 831 885 986 2 Banks' own claims1 1,276 1,459 1,834 2,086 2,356 2,371 2,317 2,383 3 Deposits 669 656 1,103 841 941 940 895 948 4 Other claims 607 802 731 1,245 1,415 1,432 1,422 1,435 5 Claims of banks' domestic customers 2 1 Includes claims of banks' domestic customers through March 1978. NOTE.—Data on claims exclude foreign currencies held by U.S. mone- 2 Assets owned by customers of the reporting bank located in the tary authorities. United States that represent claims on foreigners held by reporting banks A For a description of the changes in the International Statistics for the accounts of their domestic customers. Tables, see July 1978 BULLETIN, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • October 1978 3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1978 1978 Country or area 1976 1977 A Ja u n g . . - f Feb. Mar. Apr. May June July*5 Aug.* Holdings (end of period) • 1 Estimated total... 15,799 38,620 40,380 41,230 '39,662 39,367 40,707 41,178 41,603 2 Foreign countries. 12,765 33,874 35,479 36,475 '34,813 34,345 35,014 36,336 37,149 3 Europe 2,330 13,916 14,895 15,206 13,607 12,946 13,156 14,256 14,184 4 Belgium-Luxembourg.. 14 19 19 19 19 19 19 19 19 5 Germany 764 3,168 3,494 3,816 3,820 4,031 4,361 5,531 5,761 6 Netherlands 288 911 954 1,029 1,079 1,070 1,113 1,113 1,278 7 Sweden 191 100 125 155 175 175 185 180 190 8 Switzerland 261 All 401 400 443 447 509 569 615 9 United Kingdom 485 8,888 9,513 9,418 7,737 6,856 6,597 6,473 5,932 10 Other Western Europe. 323 349 384 363 '332 346 370 368 385 11 Eastern Europe 4 4 4 4 4 4 4 4 4 12 Canada. 256 288 250 251 253 261 264 275 276 13 Latin America and Caribbean 313 551 587 551 535 503 494 485 545 14 Venezuela 149 199 241 200 189 174 174 174 244 15 Other Latin American and Caribbean. 47 183 184 189 184 167 158 149 139 16 Netherlands Antilles 118 170 162 162 162 162 162 162 162 17 Asia 9,323 18,745 19,378 20,120 20,070 20,137 20,605 20,831 21,647 18 2,687 6,860 7,617 8,313 8,332 8,964 9,616 9,927 10,791 Japan 19 543 362 362 341 341 491 491 491 491 Africa 20 * 11 7 6 6 8 4 -3 7 All other. 21 Nonmonetary international and regional organizations 3,034 4,746 4,901 4,755 4,849 5,022 5,693 4,842 4,454 22 International 2,906 4,646 4,781 4,640 4,740 4,931 5,633 4,809 4,421 23 Latin American regional. 128 100 120 115 110 90 61 33 33 Transactions (net purchases, or sales {—), during period) 24 Total 8,096 22,823 2,982 278 851 -1,569 -295 1,341 470 425 25 Foreign countries 5,393 21,110 3,274 -169 996 -1,664 -467 669 1,322 813 26 Official institutions 4,958 20,328 2,744 -277 975 -1,690 '-574 592 1,293 710 27 Other foreign 435 782 530 108 22 26 '106 77 29 103 28 Nonmonetary international and regional 2,704 1,713 -292 447 -145 '95 171 671 -852 -387 MEMO: Oil-exporting countries 29 Middle East i 3,887 4,451 -990 -184 72 -72 -563 -185 -85 -31 30 Africa 2 222211 --118811 113300 --2200 115500 1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 3 Estimated official and private holdings of marketable U.S. Treasury and United Arab Emirates (Trucial States). securities with an original maturity of more than 1 year. Data are based 2 Comprises Algeria, Gabon, Libya, and Nigeria. on a benchmark survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign countries. 3.21 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1978 AAsssseettss 11997755 11997766 11997777 Mar. Apr. May June July Aug. Sept. 1 Deposits 353 352 424 352 481 453 288 347 309 325 Assets held in custody: 2 U.S. Treasury securities1 60,019 66,532 91,962 105,362 102,044 100,146 99,465 101,696 102,902 102,699 3 Earmarked gold2 16,745 16,414 15,988 15,727 15,686 15,667 15,620 15,594 15,572 15,553 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 3.22 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1978 1978 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 1976 1977 J A a u n g .- . Feb. Mar. Apr. May June July*5 Aug.f U.S. corporate securities Stocks 1 Foreign purchases 18,227 14,155 13,301 825 1,413 1,864 2,391 2,035 1,305 2,444 2 Foreign sales 15,475 11,479 11,606 762 921 1,151 1,963 1,925 1,296 2,678 3 Net purchases, or sales ( —) 2,753 2,676 1,695 63 492 713 427 110 9 -235 4 Foreign countries 2,740 2,661 1,740 63 510 720 427 131 9 -235 5 Europe 336 1,006 1,096 41 319 508 323 31 -6 -152 6 France 256 40 87 -2 68 79 -2 -39 -15 9 7 Germany 68 291 352 33 52 125 52 80 17 -52 8 Netherlands -199 22 -34 -13 -9 16 9 -18 9 -22 9 Switzerland -100 152 -244 -16 7 103 31 -78 -52 -184 10 United Kingdom 340 613 964 57 187 173 229 98 50 110 11 Canada 324 65 -108 -26 -3 44 -58 -12 -16 -18 12 Latin America and Caribbean 155 127 122 -4 17 37 36 33 -35 48 13 Middle East1 1,803 1,390 506 48 170 97 90 59 69 -134 14 Other Asia 119 59 139 1 5 35 39 23 -5 35 1 1 5 6 O A t f h ri e c r a countries -4 7 8 5 -16 1 2 1 * 1 * — 1 * -4 * -3 * 1 - ~ 1 2 1 17 Nonmonetary international and regional organizations 13 15 -45 1 -19 -7 1 -21 * * Bonds2 18 Foreign purchases 5,529 7,739 5,305 574 600 312 780 678 1,029 872 19 Foreign sales 4,322 3,404 3,377 348 621 343 333 301 595 460 20 Net purchases, or sales (—) 1,207 4,335 1,928 226 -21 -31 447 377 434 412 21 Foreign countries 1,248 4,239 1,778 181 * -29 449 306 412 360 22 Europe 91 2,006 664 32 -163 -93 41 159 388 167 23 France 39 -34 23 1 5 -4 8 -3 13 6 24 -49 59 128 7 19 10 21 14 18 38 25 Netherlands -29 72 11 1 -20 3 -3 -7 11 18 26 Switzerland 158 157 -170 3 -37 -33 -36 5 -74 10 27 United Kingdom 23 1,705 704 22 -122 -54 75 154 416 89 28 Canada 96 141 84 7 5 13 9 6 14 24 29 Latin America and Caribbean 94 64 51 6 11 1 12 2 -8 17 30 Middle East1 1,179 1,695 931 125 137 33 370 91 135 99 3 3 3 3 2 1 O O t t h h e e r r c A o s u ia n tries - - 1 - 2 2 6 1 5 5 * 3 -6 3 8 -1 4 5 3 * — 11 1 * * 9 * 16 1 * 15 1 * * 48 -1 * • 16 * 52 1 34 Nonmonetary international and regional organizations -41 96 150 45 -20 -2 -1 72 22 53 Foreign securities 35 Stocks, net purchases, or sales (—) -323 -410 462 113 114 143 -13 -59 10 50 1,937 2,255 2,505 280 337 404 271 244 333 381 2,259 2,665 2,044 167 223 261 284 303 323 331 38 Bonds, net purchases, or sales (—) -8,774 -5,115 -2,954 -181 -526 -501 -39 -648 -291 -196 39 Foreign purchases 4,932 8,052 7,110 522 797 1,169 1,017 1,012 921 982 40 Foreign sales 13,706 13,167 10,064 703 1,322 1,670 1,056 1,659 1,212 1,178 41 Net purchases, or sales ( —) of stocks and bonds.. -9,097 -5,524 -2,492 -69 -412 -358 -51 -707 -281 -146 42 Foreign countries -7,199 -3,967 -2,409 12 -263 -428 -67 -752 -283 -150 43 Europe -850 -1,145 -93 95 116 106 -194 -236 -171 94 44 Canada -5,245 -2,404 -2,241 -4 -177 -807 -80 -420 -146 -161 45 Latin America and Caribbean -3 -80 213 37 69 120 72 -70 8 -17 46 Asia -733 -73 38 -118 -277 143 131 178 44 54 47 Africa 48 2 -164 * * 7 * -22 -25 -123 48 Other countries -416 -267 -162 2 6 2 4 -182 7 3 49 Nonmonetary international and regional organizations -1,898 -1,557 -83 -80 -148 70 16 45 2 5 1 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 • October 1978 3.23 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1977 1978 1977 1978 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy Mar. June Sept. Dec. Mar.*> Mar. June Sept. Dec. Mar.P Liabilities to foreigners Claims on foreigners 1 6,595 6,480 7,190 7,873 8,311 14,941 16,125 14,971 16,050 18,215 By type: 2 Payable in dollars 5,828 5,763 6,340 7,070 7,426 13,925 15,012 13,925 14,704 16,587 3 Payable in foreign currencies 767 717 850 803 885 1,016 1,113 1,047 1,346 1,628 4 Deposits with banks abroad in reporter's 431 448 414 620 670 Other 558855 666655 663322 772266 995588 By area or country: 6 Foreign countries 6,403 6,310 7,036 7,658 8,164 14,938 16,124 14,970 16,049 18,214 7 2,135 2,183 2,283 2,495 2,754 5,170 5,751 4,991 5,660 5,457 8 Austria 9 10 12 21 23 23 26 24 24 21 9 111 138 119 106 161 170 221 226 211 187 10 15 14 16 14 23 48 40 44 56 47 11 2 10 11 9 12 40 90 59 13 13 12 163 157 111 239 274 436 413 430 513 545 13 175 163 226 284 335 367 377 393 453 410 14 80 73 78 85 108 90 86 52 41 42 15 Italy 135 138 107 128 104 473 440 352 387 384 16 Netherlands 168 205 176 230 252 172 182 161 166 184 17 Norway 37 33 35 7 9 42 42 38 42 42 18 Portugal 23 20 12 11 7 35 30 34 69 27 19 52 68 74 77 94 325 322 307 387 407 20 Sweden 36 36 41 28 37 93 92 91 117 115 21 214 236 257 263 229 154 179 146 220 238 22 12 21 97 108 99 32 37 32 39 48 23 United Kingdom 689 721 725 750 861 2,413 2,963 2,409 2,687 2,526 24 Yugoslavia 113 110 92 90 82 30 28 20 20 24 25 Other Western Europe 6 6 9 10 8 18 15 15 25 33 26 U.S.S.R 15 16 11 24 15 105 76 62 55 44 27 Other Eastern Europe 13 10 14 12 23 103 102 96 135 121 28 Canada 427 448 451 504 530 2,426 2,574 2,509 2,600 3,347 29 Latin America 1,121 1,020 1,027 1,178 1,359 4,448 4,965 4,567 4,476 5,885 30 Argentina 42 50 50 40 53 46 51 53 53 53 31 Bahamas 256 216 222 300 306 1,920 2,271 1,906 2,007 3,088 32 Brazil 49 37 76 49 62 535 457 414 517 496 33 Chile 16 24 13 17 14 35 28 40 45 40 34 18 22 24 42 26 75 72 85 84 83 35 Cuba * * * * * 1 1 * * * 36 121 120 103 114 111 317 301 302 314 312 37 12 11 12 22 12 105 121 222 91 178 38 24 21 13 15 22 32 28 30 32 30 39 Uruguay 4 3 4 3 5 6 5 5 5 7 40 260 208 225 222 283 210 240 256 277 317 41 Other Latin American republics 148 141 122 118 107 237 237 257 281 270 42 Netherlands Antilles 11 17 9 25 41 14 8 8 12 24 43 Other Latin America 160 151 154 209 250 914 1,146 989 757 987 44 Asia 2,057 1,971 2,594 22,,882255 2,809 2,316 2,315 2,403 2,774 2,966 45 China, People's Republic of (Mainland) 3 2 1 88 4 1 1 12 9 22 46 China, Republic of (Taiwan) 113 138 152 156 164 130 131 139 157 145 47 Hong Kong 42 27 25 40 32 107 93 73 98 84 48 39 41 44 37 26 35 51 42 38 85 49 Indonesia 94 80 60 56 57 206 184 185 375 189 50 Israel 37 45 58 63 68 51 70 46 38 47 51 Japan 172 183 604 695 767 969 927 1,026 1,068 1,372 52 96 95 81 108 104 130 158 153 174 135 53 Philippines 59 73 78 74 99 86 90 111 99 94 54 Thailand 19 11 17 17 11 27 22 24 23 31 55 Other Asia 1,383 1,277 1,474 1,572 1,477 569 582 590 697 761 56 Africa 591 589 568 563 609 429 370 346 393 408 57 Egypt 29 33 45 13 19 70 24 22 38 33 58 30 72 105 112 130 12 11 10 21 20 59 South Africa 33 27 29 20 30 80 69 75 75 71 60 Zaire 39 39 48 46 55 19 17 19 15 11 61 Other Africa 460 418 341 372 375 248 248 221 245 272 62 Other countries 72 98 111 93 104 150 149 153 146 150 63 Australia 53 78 93 75 89 114 110 113 111 116 64 All other 19 20 18 18 14 36 40 41 35 34 65 Nonmonetary international and regional organizations 192 170 154 215 147 2 1 1 1 1 NOTE.—Reported by exporters, importers, and industrial and com- Data exclude claims held through U.S. banks and intercompany accounts mercial concerns and other nonbanking institutions in the United States. between U.S. companies and their affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A67 3.24 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Large Nonbanking Concerns in the United States Millions of dollars, end of period 1978 Type and country 1974 1975 1976 1977 Feb. Mar. Apr. May June Julyf 1 Total 3,357 3,799 5,506 6,936 8,312 8,929 9,049 9,439 8,912 8,924 By type: 2 Payable in dollars 2,660 3,042 4,823 5,999 7,321 7,791 7,953 8,420 7,771 7,639 3 Deposits 2,591 2,710 4,450 5,597 6,836 7,213 7,310 7,814 7,218 7,156 4 Short-term investments 1. 69 332 373 402 485 578 643 606 553 483 5 Payable in foreign currencies 697 757 683 955 991 1,137 1,096 1,018 1,142 1,285 6 Deposits 429 511 397 553 533 607 597 492 599 669 7 Short-term investments 1. 268 246 286 402 458 530 499 526 543 616 By country: 8 United Kingdom 1,350 1,306 1,817 2,006 1,908 1,810 1,746 1,595 1,683 1,861 9 Canada 967 1,156 1,541 1,696 2,284 2,463 2,702 2,771 2,547 2,513 10 Bahamas 391 546 1,322 1,883 2,656 2,951 2,988 3,569 2,975 3,222 11 Japan 398 343 113 153 267 405 290 258 273 286 12 All other 252 446 713 1,198 1,197 1,300 1,323 1,246 1,435 1,042 1 Negotiable and other readily transferable foreign obligations payable NOTE.—Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 3.26. 3.25 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1977 1978 1977 1978 AArreeaa aanndd ccoouunnttrryy Mar. June Sept. Dec. Mar.25 Mar. June Sept. Dec. Mar.f Liabilities to foreigners Claims on foreigners 1 Total 3,523 3,364 3,355 3,222 3,205 4,946 4,898 4,697 5,054 5,114 2 Europe 2,657 2,507 2,565 2,458 2,540 899 898 826 857 930 3 Germany 391 370 407 255 295 84 76 76 70 73 4 Netherlands 272 262 272 288 293 154 147 81 82 81 5 Switzerland 178 177 224 241 241 53 43 42 49 48 6 United Kingdom 1,389 1,277 1,255 1,232 1,247 259 283 282 310 332 7 Canada 80 79 76 71 67 1,475 1,486 1,462 1,776 1,792 8 Latin America 292 301 294 289 253 1,489 1,457 1,371 1,406 1,387 9 Bahamas 163 167 159 156 146 34 34 36 40 42 10 Brazil 5 7 7 7 6 125 125 134 144 154 11 Chile 1 1 1 1 1 210 208 201 203 194 12 Mexico 23 26 30 30 30 180 178 187 177 183 13 Asia 432 408 358 342 284 817 833 809 797 789 14 Japan 413 386 319 305 250 96 111 94 66 83 15 Africa 2 3 3 2 2 199 158 165 161 156 16 All other i 59 67 59 60 60 67 67 63 59 60 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • October 1978 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on Sept. 30, 1978 Rate on Sept. 30, 1978 Rate on Sept. 30, 1978 Country Country Country Per Month Per Month Per Month cent effective cent effective cent effective Argentina 11111118888888.......0000000 FFFFFFFeeeeeeebbbbbbb....... 1111111999999977777772222222 FFFrrraaannnccceee 9999999.......5555555 AAAAAAAuuuuuuuggggggg....... 1111111999999977777777777777 7777777.......0000000 FFFFFFFeeeeeeebbbbbbb....... 1111111999999977777778888888 Austria 4444444.......5555555 JJJJJJJuuuuuuunnnnnnneeeeeee 1111111999999977777778888888 GGGeeerrrmmmaaannnyyy,,, FFFeeeddd... RRReeeppp... ooofff... 3333333.......0000000 DDDDDDDeeeeeeeccccccc....... 1111111999999977777777777777 Sweden 6666666.......5555555 JJJJJJJuuuuuuulllllllyyyyyyy 1111111999999977777778888888 Belgium 6666666.......0000000 JJJJJJJuuuuuuulllllllyyyyyyy 1111111999999977777778888888 IIItttaaalllyyy 11111110000000.......5555555 SSSSSSSeeeeeeepppppppttttttt....... 1111111999999977777778888888 Switzerland 1111111.......0000000 FFFFFFFeeeeeeebbbbbbb....... 1111111999999977777778888888 Brazil 33333330000000.......0000000 SSSSSSSeeeeeeepppppppttttttt....... 1111111999999977777777777777 Japan 3333333.......5555555 MMMMMMMaaaaaaarrrrrrr....... 1111111999999977777778888888 United Kingdom 11111110000000.......0000000 JJJJJJJuuuuuuunnnnnnneeeeeee 1111111999999977777778888888 Canada 9999999.......5555555 SSSSSSSeeeeeeepppppppttttttt....... 1111111999999977777778888888 4444444.......5555555 JJJJJJJuuuuuuunnnnnnneeeeeee 1111111999999944444442222222 Venezuela 5555555.......0000000 OOOOOOOcccccccttttttt....... 1111111999999977777770000000 Denmark 8888888.......0000000 JJJJJJJuuuuuuulllllllyyyyyyy 1111111999999977777777777777 Netherlands 5555555.......5555555 SSSSSSSeeeeeeepppppppttttttt....... 1111111999999977777778888888 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. 3.27 FOREIGN SHORT-TERM INTEREST RATES Per cent per annum, averages of daily figures 1978 CCoouunnttrryy,, oorr ttyyppee 11997755 11997766 11997777 Apr. May June July Aug. Sept. 1 Euro-dollars 7.02 5.58 6.03 7.38 7.82 8.33 8.52 8.48 9.12 2 United Kingdom 10.63 11.35 8.07 7.47 9.17 10.02 10.13 9.42 9.29 3 Canada 8.00 9.39 7.47 8.14 8.01 8.12 8.23 8.77 9.08 4 Germany 4.87 4.19 4.30 3.54 3.60 3.61 3.71 3.64 3.67 5 Switzerland 3.01 1.45 2.56 .40 1.18 1.38 1.74 0.67 4.58 6 Netherlands 5.17 7.02 4.73 4.62 4.48 4.60 5.61 6.27 6.91 7 France 7.91 8.65 9.20 8.35 8.21 7.94 7.61 7.39 7.40 8 Italy 10.37 16.32 14.26 11.75 11.80 11.75 11.75 11.75 10.94 9 Belgium 6.63 10.25 6.95 5.55 5.71 5.61 5.84 7.09 7.24 10 Japan 11.64 7.70 6.22 4.50 4.50 4.75 4.75 4.64 4.51 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. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1978 CCoouunnttrryy//ccuurrrreennccyy 11997755 11997766 11997777 Apr. May June July Aug. Sept. 1 Australia/dollar 130.77 122.15 110.82 113.97 112.76 113.83 114.94 115.41 115.29 2 Austria/shilling 5.7467 5.5744 6.0494 6.8081 6.6031 6.6718 6.7547 6.9490 7.0102 3 Belgium/franc 2.7253 2.5921 2.7911 3.1419 3.0463 3.0590 3.0864 3.1834 3.2207 4 Canada/dollar 98.30 101.41 94.112 87.592 89.397 89.143 88.921 87.690 85.739 5 Denmark/krone 17.437 16.546 16.658 17.807 17.535 17.723 17.846 18.171 18.411 6 Finland/markka 27.285 25.938 24.913 23.900 23.430 23.390 23.809 24.381 24.586 7 France/franc 23.354 20.942 20.344 21.803 21.513 21.841 22.531 22.998 22.909 8 Germany/deutsche mark... 40.729 39.737 43.079 48.964 47.497 47.984 48.647 50.084 50.778 9 India/rupee 11.926 11.148 11.406 11.815 11.653 11.900 12.245 12.483 12.445 10 Ireland/pound 222.16 180.48 174.49 184.97 181.81 183.72 189.49 194.06 195.95 11 Italy/lira .15328 .12044 .11328 .11644 .11488 .11634 .11804 .11952 .12050 12 Japan/yen .33705 .33741 .37342 .45084 .44215 .46744 .50101 .53002 .52656 13 Malaysia/ringgit 41.753 39.340 40.620 42.057 41.462 41.964 42.447 43.433 43.603 14 Mexico/peso 8.0000 6.9161 4.4239 4.3945 4.3973 4.3840 4.3756 4.3758 4.3907 15 Netherlands/guilder 39.632 37.846 40.752 45.865 44.407 44.716 45.076 46.203 46.733 16 New Zealand/dollar 121.16 99.115 96.893 101.92 100.69 101.90 103.85 105.42 105.58 17 Norway/krone 19.180 18.327 18.789 18.621 18.360 18.450 18.524 19.018 19.189 18 Portugal/escudo 3.9286 3.3159 2.6234 2.4075 2.2208 2.1857 2.1939 2.2042 2.1948 19 South Africa/rand 136.47 114.85 114.99 115.05 115.01 114.93 115.00 115.00 115.00 20 Spain/peseta 1.7424 1.4958 1.3287 1.2475 1.2317 1.2587 1.2885 1.3344 1.3605 21 Sri Lanka/rupee 14.385 11.908 11.964 6.4950 6.2945 6.2859 6.3245 6.3926 6.3855 22 Sweden/krona 24.141 22.957 22.383 21.731 21.491 21.690 22.012 22.523 22.592 23 Switzerland/franc 38.743 40.013 41.714 52.511 50.892 53.046 55.443 60.013 63.765 24 United Kingdom/pound... 222.16 180.48 174.49 184.97 181.81 183.72 189.49 194.06 195.95 MEMO: 25 United States/dollar i r98.34 r105.57 r103.31 •-94.56 r96.31 '94.74 92.44 89.99 89.51 1 Index of weighted average exchange value of U.S. dollar against cur- NOTE.—Averages of certified noon buying rates in New York for cable rencies of other G-10 countries plus Switzerland. March 1973 = 100. transfers. Weights are 1972-76 global trade of each of the 10 countries. Series revised as of August 1978. For description and back data, see "Index of the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page 700 of the August 1978 BULLETIN. 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 Preliminary SMSA's Standard metropolitan statistical areas Revised (Notation appears on column heading REIT's Real estate investment trusts when more than half of figures in that * Amounts insignificant in terms of the particcolumn are changed.) ular unit (e.g., less than 500,000 when e Estimated the unit is millions) c Corrected (1) Zero, (2) no figure to be expected, or n.e.c. Not elsewhere classified (3) figure delayed or, (4) no change (when Rp's Repurchase agreements figures are expected in percentages). IPC's Individuals, partnerships, and corporations GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) obligations of the Treasury. "State and local govt." a negative figure, or (3) an outflow. also includes municipalities, special districts, and other "U.S. Govt, securities" may include guaranteed political subdivisions. issues of U.S. Govt, agencies (the flow of funds figures In some of the tables details do not add to totals also include not fully guaranteed issues) as well as direct because of rounding. STATISTICAL RELEASES LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1978 A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board of Governors G. WILLIAM MILLER, Chairman HENRY C, WALLICH STEPHEN S. GARDNER, Vice Chairman PHILIP E. COLDWELL OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY POLICY THOMAS J. O'CONNELL, Counsel to the Chairman JOSEPH R. COYNE, Assistant to the Board STEPHEN H. AXILROD, Staff Director KENNETH A. GUENTHER, Assistant to the Board MURRAY ALTMANN, Assistant to the Board SIDNEY L. JONES, Assistant to the Board PETER M. KEIR, Assistant to the Board JAY PAUL BRENNEMAN, Special Assistant to the STANLEY J. SIGEL, Assistant to the Board Board NORMAND R. V. BERNARD, Special Assistant to the FRANK O'BRIEN, JR., Special Assistant to the Board Board JOSEPH S. SIMS, Special Assistant to the Board DONALD J. WINN, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS JAMES L. KICHLINE, Director LEGAL DIVISION JOSEPH S. ZEISEL, Deputy Director EDWARD C. ETTIN, Associate Director NEAL L. PETERSEN, General Counsel JOHN H. KALCHBRENNER, Associate Director ROBERT E. MANNION, Associate General Counsel JOHN J. MINGO, Senior Research Division Officer ALLEN L. RAIKEN, Associate General Counsel ELEANOR J. STOCKWELL, Senior Research Division CHARLES R. MCNEILL, Assistant to the General Officer Counsel JAMES R. WETZEL, Senior Research Division Officer JAMES M. BRUNDY, Associate Research Division Officer OFFICE OF THE SECRETARY ROBERT A. EISENBEIS, Associate Research Division Officer THEODORE E. ALLISON, Secretary JARED J. ENZLER, Associate Research Division GRIFFITH L. GARWOOD, Deputy Secretary Officer *JOHN M. WALLACE, Assistant Secretary J. CORTLAND G. PERET, Associate Research RICHARD H. PUCKETT, Manager, Regulatory Division Officer Improvement Project "MICHAEL J. PRELL, Associate Research Division Officer HELMUT F. WENDEL, Associate Research Division DIVISION OF CONSUMER AFFAIRS Officer ROBERT M. FISHER, Assistant Research Division Officer JANET O. HART, Director NATHANIEL E. BUTLER, Associate Director FREDERICK M. STRUBLE, Assistant Research Division JERAULD C. KLUCKMAN, Associate Director Officer STEPHEN P. TAYLOR, Assistant Research Division Officer LEVON H. GARABEDIAN, Assistant Director DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF INTERNATIONAL FINANCE JOHN E. RYAN, Director t FREDERICK C. SCHADRACK, Deputy Director EDWIN M. TRUMAN, Director FREDERICK R. DAHL, Associate Director JOHN E. REYNOLDS, Counselor WILLIAM W. WILES, Associate Director ROBERT F. GEMMJLL, Associate Director JACK M. EGERTSON, Assistant Director GEORGE B. HENRY, Associate Director DON E. KLINE, Assistant Director CHARLES J. SIEGMAN, Associate Director ROBERT S. PLOTKIN, Assistant Director SAMUEL PIZER, Senior International Division THOMAS A. SIDMAN, Assistant Director Officer SAMUEL H. TALLEY, Assistant Director JEFFREY R. SHAFER, Associate International Division WILLIAM TAYLOR, Assistant Director Officer DALE W. HENDERSON, Assistant International Division Officer LARRY J. PROMISEL, Assistant International Division Officer RALPH W. SMITH, JR., Assistant International Division Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All and Official Staff PHILIP C. JACKSON, JR. NANCY H. TEETERS 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 Construction Management DIVISION OF FEDERAL RESERVE JOSEPH W. DANIELS, SR., Assistant Director and BANK EXAMINATIONS AND BUDGETS Director of Equal Employment Opportunity ALBERT R. HAMILTON, Director CLYDE H. FARNSWORTH, JR., Associate Director DIVISION OF DATA PROCESSING CHARLES W. BENNETT, Assistant Director JOHN F. HOOVER, Assistant Director CHARLES L. HAMPTON, Director P. D. RING, Assistant Director BRUCE M. BEARDSLEY, Associate Director RAYMOND L. TEED, Assistant Director UYLESS D. BLACK, Assistant Director GLENN L. CUMMINS, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF PERSONNEL JAMES R. KUDLINSKI, Director WALTER ALTHAUSEN, Assistant Director DAVID L. SHANNON, Director BRIAN M. CAREY, Assistant Director JOHN R. WEIS, Assistant Director HARRY A. GUINTER, Assistant Director CHARLES W. WOOD, Assistant Director LORIN S. MEEDER, 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 Atlanta. tOn loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 Federal Reserve Bulletin • October 1978 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE G. WILLIAM MILLER, Chairman PAUL A. VOLCKER Vice Chairman ERNEST T. BAUGHMAN STEPHEN S. GARDNER HENRY C. WALLICH PHILIP E. COLDWELL PHILIP C. JACKSON, JR. MARK H. WILLES DAVID P. EASTBURN , J. CHARLES PARTEE WILLIS J. WINN NANCY H. TEETERS MURRAY ALTMANN, Secretary RICHARD G. DAVIS, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary EDWARD C. ETTIN, Associate Economist THOMAS J. O'CONNELL, General Counsel IRA KAMINOW, Associate Economist EDWARD G. GUY, Deputy General Counsel PETER M. KEIR, Associate Economist ROBERT E. MANNION, Assistant General Counsel JAMES L. KICHLINE, Associate Economist STEPHEN H. AXILROD, Economist JOHN E. REYNOLDS, Associate Economist JOSEPH BURNS, Associate Economist EDWIN M. TRUMAN, Associate Economist JOHN M. DAVIS, Associate Economist JOSEPH S. ZEISEL, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager for Domestic Operations SCOTT E. PARDEE, Deputy Manager for Foreign Operations FEDERAL ADVISORY COUNCIL GILBERT F. BRADLEY, TWELFTH FEDERAL RESERVE DISTRICT, President J. W. MCLEAN, TENTH FEDERAL RESERVE DISTRICT, Vice President HENRY S. WOODBRIDGE, FIRST DISTRICT FRANK A. PLUMMER, SIXTH DISTRICT WALTER B. WRISTON, SECOND DISTRICT EDWARD BYRON SMITH, SEVENTH DISTRICT WILLIAM B. EAGLESON, JR., THIRD DISTRICT CLARENCE C. BARKSDALE, EIGHTH DISTRICT M. BROCK WEIR, FOURTH DISTRICT RICHARD H. VAUGHAN, NINTH DISTRICT JOHN H. LUMPKIN, FIFTH DISTRICT JAMES D. BERRY, ELEVENTH 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 RICHARD F. KERR, Cincinnati, Ohio 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 BLAIR C. SHICK, Cambridge, Massachusetts JEAN A. Fox, Pittsburgh, Pennsylvania JAMES E. SUTTON, Dallas, Texas MARCIA A. HAKALA, Omaha, Nebraska THOMAS R. SWAN, Portland, Maine JOSEPH F. HOLT III, Oxnard, California ANNE GARY TAYLOR, Alexandria, Virginia RICHARD H. HOLTON, Berkeley, California RICHARD D. WAGNER, Simsbury, Connecticut EDNA DECOURSEY JOHNSON, Baltimore, Maryland RICHARD L. WHEATLEY, JR., Stillwater, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Louis W. Cabot Frank E. Morris Robert M. Solow James A. Mcintosh NEW YORK* 10045 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. Showalter 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 Albeit D. Tinkelenberg ATLANTA 30303 Clifford M. Kirtland, Jr. Monroe Kimbrel William A. Fickling, Jr. Kyle K. Fossum Birmingham 35202 Harold B. Blach, Jr. Hiram J. Honea Jacksonville 32203 James E. Lyons Charles B. East Miami 33152 Alvaro L. Carta F. J. Craven, Jr. 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 John Sagan 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 G. Larry Kelley John F. Breen Louisville 40201 James H. Davis Donald L. Henry Memphis 38101 Jeanne L. Holley 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 Christine H. Anthony 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 Josefina Salas-Porras Fredric W. Reed Houston 77001 Alvin I. Thomas J. Z. Rowe San Antonio 78295 Pete Morales, Jr. 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 Gerald R. Kelly •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 Federal Reserve Board Publications Available from Publications Services, Division of Ad- request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed- of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. FUNCTIONS. 1974. 125 pp. 102 pp. $1.00 each; 10 or more to one address, ANNUAL REPORT $.85 each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 year or $2.00 each in the United States, its posses- pp. $1.00 each; 10 or more to one address, $.85 sions, Canada, and Mexico; 10 or more of same each. issue to one address, $18.00 per year or $1.75 REPORT OF THE JOINT TREASURY-FEDERAL RESERVE each. Elsewhere, $24.00 per year or $2.50 each. STUDY OF THE U.S. GOVERNMENT SECURITIES BANKING AND MONETARY STATISTICS, 1914-1941. MARKET. 1969. 48 pp. $.25 each; 10 or more to (Reprint of Part 1 only) 1976. 682 pp. $5.00. one address, $.20 each. BANKING AND MONETARY STATISTICS, 1941-1970. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE 1976. 1,168 pp. $15.00. GOVERNMENT SECURITIES MARKET: STAFF STUD- ANNUAL STATISTICAL DIGEST, 1971-75. 1976. 339 pp. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more $4.00 per copy for each paid subscription to Fedto one address, $.40 each. PART 2. 1971. 153 pp. eral Reserve Bulletin. All others, $5.00 each. and PART 3. 1973. 131 pp. Each volume $1.00; ANNUAL STATISTICAL DIGEST, 1972-76. 1977. 388 pp. 10 or more to one address, $.85 each. $10.00 per copy. FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- OPEN MARKET POLICIES AND OPERATING PROCEtion includes one issue of Historical Chart Book. DURES—STAFF STUDIES. 1971. 218 pp. $2.00 $12.00 per year or $1.25 each in the United States, each; 10 or more to one address, $1.75 each. its possessions, Canada, and Mexico; 10 or more REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT of same issue to one address, $1.00 each. Else- MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. where, $15.00 per year or $1.50 each. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; HISTORICAL CHART BOOK. Issued annually in Sept. 10 or more to one address, $2.50 each. Subscription to Monthly Chart Book includes one issue. $1.25 each in the United States, its posses- THE. ECONOMETRICS OF PRICE DETERMINATION CON- FERENCE, October 30-31, 1970, Washington, D.C. sions, Canada, and Mexico; 10 or more to one 1972. 397 pp. Cloth ed. $5.00 each; 10 or more address, $1.00 each. Elsewhere, $1.50 each. to one address, $4.50 each. Paper ed. $4.00 each; CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per 10 or more to one address, $3.60 each. year or $.40 each in the United States, its possessions, 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 . Elsewhere, $20.00 per year or $.50 each. 1972. 487 pp. $4.00 each; 10 or more to one address, $3.60 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $15.00 per year or LENDING FUNCTIONS OF THE FEDERAL RESERVE $.40 each in the United States, its possessions, 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. IMPROVING THE MONETARY AGGREGATES (Report of the Elsewhere, $20.00 per year or $.50 each. Advisory Committee on Monetary Statistics). THE FEDERAL RESERVE ACT, as amended through De- 1976. 43 pp. $1.00 each; 10 or more to one cember 1976, with an appendix containing proviaddress, $.85 each. sions of certain other statutes affecting the Federal 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). 1969. 100 pp. Vol. II (Irregular Transactions). FEDERAL RESERVE SYSTEM 1969. 116 pp. Each volume $1.00, 10 or more PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- ERNORS, as of June 30, 1977. $7.50. of same volume to one address, $.85 each. INDUSTRIAL PRODUCTION—1976 EDITION. 1977. 304 FEDERAL RESERVE MEASURES OF CAPACITY AND CApp. $4.50 each; 10 or more to one address, $4.00 PACITY UTILIZATION. 44 pp. $1.75 each, 10 or each. more to one address, $1.50 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 75 CONSUMER EDUCATION PAMPHLETS REPRINTS (Except for Staff Papers, Staff Economic Studies, and (Shortpamphlets suitable for classroom use. Multiple some leading articles, most of the articles reprinted do copies available without charge.) not exceed 12 pages.) THE EQUAL CREDIT OPPORTUNITY ACT AND . . . AGE MEASURES OF SECURITY CREDIT. 12/70. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . REVISION OF BANK CREDIT SERIES. 12/71. CREDIT RIGHTS IN HOUSING ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF THE EQUAL CREDIT OPPORTUNITY ACT AND . . . DOC- U.S. BANKS. 2/72. TORS, LAWYERS, SMALL RETAILERS, AND OTHERS BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— WHO MAY PROVIDE INCIDENTAL CREDIT REVISED SERIES. 7/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. WOMEN RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. FAIR CREDIT BILLING BANKS. 10/72. A GUIDE TO FEDERAL RESERVE REGULATIONS, REVISION OF CONSUMER CREDIT STATISTICS. 10/72. How TO FILE A CONSUMER CREDIT COMPLAINT ONE-BANK HOLDING COMPANIES BEFORE THE 1970 IF YOU BORROW TO BUY STOCK AMENDMENTS. 12/72. TRUTH IN LEASING YIELDS ON RECENTLY OFFERED CORPORATE BONDS. U.S. CURRENCY 5/73. WHAT TRUTH IN LENDING MEANS TO YOU RATES ON CONSUMER INSTALMENT LOANS. 9/73. NEW SERIES FOR LARGE MANUFACTURING CORPORA- TIONS. 10/73. STAFF ECONOMIC STUDIES U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. 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 GREELEY IN PERSPECTIVE, by Paul Schweitzer and Douglas Battenberg, Jared J. Enzler, and Arthur Joshua Greene. Sept. 1977. 17 pp. M. Havenner. 11/75. STRUCTURE AND PERFORMANCE STUDIES IN BANKING: AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff A SUMMARY AND EVALUATION, by Stephen A. Economic Study by Robert J. Lawrence and Sam- Rhoades. Dec. 1977. 45 pp. uel H. Talley. 1/76. AN ANALYSIS OF FEDERAL RESERVE ATTRITION SINCE INDUSTRIAL ELECTRIC POWER USE. 1/76. 1960, by John T. Rose. Jan. 1978. 44 pp. REVISION OF MONEY STOCK MEASURES. 2/76. PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS IN SURVEY OF FINANCE COMPANIES, 1975. 3/76. CREDIT SCORING MODELS, by Robert A. Eisenbeis. REVISED SERIES FOR MEMBER BANK DEPOSITS AND Jan. 1978. 28 pp. AGGREGATE RESERVES. 4/76. EXTERNAL CAPITAL FINANCING REQUIREMENTS OF INDUSTRIAL PRODUCTION—1976 Revision. 6/76. COMMERCIAL BANKS: 1977-81, by Gerald A. Han- FEDERAL RESERVE OPERATIONS IN PAYMENT MECHAweck and John J. Mingo. Feb. 1978. 34 pp. NISMS: A SUMMARY. 6/76. MORTGAGE BORROWING AGAINST EQUITY IN EXISTING RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF HOMES: MEASUREMENT, GENERATION, AND IM- BANKS. 10/76. PLICATIONS FOR ECONOMIC ACTIVITY, by David F. NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- Seiders. May 1978. 42 pp. FACTURING AND MATERIALS. 11/76. THE BEHAVIOR OF MEMBER BANK REQUIRED RESERVE BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS RATIOS AND THE EFFECTS OF BOARD ACTION, IN 1976. 4/77. 1968-77, by Thomas D. Simpson. July 1978. 39 SURVEY OF TERMS OF BANK LENDING—NEW SERIES. pp. 5/77. FOOTHOLD ACQUISITIONS AND BANK MARKET STRUC- THE COMMERCIAL PAPER MARKET. 6/77. TURE, by Stephen A. Rhoades and Paul Schweit- CONSUMPTION AND FIXED INVESTMENT IN THE ECOzer, July 1978. 8 pp. NOMIC RECOVERY ABROAD. 10/77. INTEREST RATE CEILINGS AND DISINTERMEDIATION, by RECENT DEVELOPMENTS IN U.S. INTERNATIONAL Edward F. McKelvey. Sept. 1978. 105 pp. TRANSACTIONS. 4/78. SURVEY OF TIME AND SAVINGS DEPOSITS AT ALL COM- MERCIAL BANKS, APRIL 1978. 8/78. THE FEDERAL BUDGET IN THE 1970'S. 9/78. PRINTED IN FULL IN THE BULLETIN SUMMARY MEASURES OF THE DOLLAR'S FOREIGN EX- Staff Economic Studies shown under "Reprints." CHANGE VALUE. 10/78. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 Index to Statistical Tables References are to pages A-3 through A-69 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 BANKERS balances, 16, 18, 20, 21, 22 Turnover, 13 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, 37 Bonds (See also U.S. Govt, securities): New issues, 36 EMPLOYMENT, 46, 47 Yields, 3 Euro-dollars, 27 Branch banks: Assets and liabilities of foreign branches of U.S. FARM mortgage loans, 41 banks, 56 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, 30, 35 CAPACITY utilization, 46 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 Capital accounts: Federal home loan banks, 35 Banks, by classes, 16, 17, 19, 20 Federal Home Loan Mortgage Corp., 35, 40, 41 Federal Reserve Banks, 12 Federal Housing Administration, 35, 40, 41 Central banks, 68 Federal intermediate credit banks, 35 Certificates of deposit, 23, 27 Federal land banks, 35, 41 Commercial and industrial loans: Federal National Mortgage Assn., 35, 40, 41 Commercial banks, 15, 18, 23, 26 Federal Reserve Banks: Weekly reporting banks, 20, 21, 22, 23, 24 Condition statement, 12 Commercial banks: Discount rates (See Interest rates) Assets and liabilities, 3, 15-19, 20-23 U.S. Govt, securities held, 4, 12, 13, 32, 33 Business loans, 26 Federal Reserve credit, 4, 5, 12, 13 Commercial and industrial loans, 24, 26 Federal Reserve notes, 12 Consumer loans held, by type, 42, 43 Federally sponsored credit agencies, 35 Loans sold outright, 23 Finance companies: Number, by classes, 16, 17, 19 Assets and liabilities, 39 Real estate mortgages held, by type of holder and Business credit, 39 property, 41 Loans, 20, 21, 22, 42, 43 Commercial paper, 3, 24, 25, 27, 39 Paper, 25, 27 Condition statements (See Assets and liabilities) Financial institutions, loans to, 18, 20-22 Construction, 46, 50 Float, 4 Consumer instalment credit, 42, 43 Flow of funds, 44, 45 Consumer prices, 46, 51 Foreign: Consumption expenditures, 52, 53 Currency operations, 12 Corporations: Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Profits, taxes, and dividends, 37 Exchange rates, 68 Security issues, 36, 65 Trade, 55 Cost of living (See Consumer prices) Foreigners: Credit unions, 29, 42, 43 Claims on, 60, 61, 66, 67 Currency and coin, 5, 16, 18 Liabilities to, 23, 56-59, 64-67 Currency in circulation, 4, 14 GOLD. Customer credit, stock market, 28 Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Assn., 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 125 Federal Reserve Bulletin • October 1978 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, 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 markets, 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, 64—67 Savings deposits (See Time deposits) Inventories, 52 Savings institutions, selected assets, 29 Investment companies, issues and assets, 37 Securities (See also U.S. Govt, securities): Investments (See also specific types of investments): Federal and Federally sponsored agencies, 35 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Foreign transactions, 65 Commercial banks, 3, 15, 16, 17, 18 New issues, 36 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 Insured or guaranteed by U.S., 40, 41 Prices, 28 Savings and loan assns., 29 MANUFACTURING: TAX receipts, Federal, 31 Capacity utilization, 46 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Production, 46, 49 22, 23 Margin requirements, 10 Trade, foreign, 55 Member banks: Treasury currency, Treasury cash, 4 Assets and liabilities, by classes, 16, 17, 18 Treasury deposits, 4, 12, 30 Borrowings at Federal Reserve Banks, 5, 12 Treasury operating balance, 30 Number, by classes, 16, 17, 19 Reserve position, basic, 6 UNEMPLOYMENT, 47 Reserve requirements, 9 U.S. balance of payments, 54 Reserves and related items, 3, 4, 5, 15 U.S. Govt, balances: Mining production, 49 Commercial bank holdings, 19, 20, 21, 22 Mobile home shipments, 50 Member bank holdings, 15 Monetary aggregates, 3, 15 Treasury deposits at Reserve Banks, 4, 12, 30 Money and capital market rates (See Interest 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, 3, 27 Yields, 3 OPEN market transactions, 11 Utilities, production, 49 PERSONAL income, 53 Prices: VETERANS Administration, 40, 41 Consumer and wholesale, 46, 51 Stock market, 28 WEEKLY reporting banks, 20-24 Prime rate, commercial banks, 26 Wholesale prices, 46 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis@ Detroit Chicago Omaha* '?\c/sco Denver Kansas City t. L \s> o ui . s Louisville -Richm?" Charlotte, mphijSashvilU \Oklahoma Cit) Angeles Jttle Rock Birminghai \A t®la nta > Dallas® Houston January 1978 * <3 ll ii ll ll ii ll ggll ALASKA HAWAII 0 0 H H H EH LEGEND ® Federal Reserve Bank Cities Federal Reserve Branch Cities Federal Reserve Bank Facility Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis