Federal Reserve Bulletin, 1978-11

NOVEMBER 1978 FEDERAL RESERVE BULLETIN Domestic Financial Developments in the Third Quarter of 1978 Survey of Time and Savings Deposits, July 1978 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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NUMBER 11 • VOLUME 64 • NOVEMBER 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 Michael J. Prell, Staff Director The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 829 DOMESTIC FINANCIAL DEVELOPMENTS the midpoints of the indicated ranges, the IN THE THIRD QUARTER OF 1978 objective for the funds rate was to be raised or lowered in an orderly fashion The Board's quarterly report to the Conwithin a range of 8x/4 to 8% per cent. It gress states that growth in M-l decelerated was also agreed that in assessing the besomewhat in the third quarter, reflecting havior of the aggregates, the Manager a moderation in the pace of real economic should give approximately equal weight to activity and the accumulating impact of the behavior of M-l and M-2. more restrictive credit market conditions. 837 SURVEY OF TIME AND SAVINGS DEPOSITS 859 LAW DEPARTMENT AT COMMERCIAL BANKS, JULY 1978 Amendment to Regulation F; various rules Total time and savings deposits at insured and interpretations; bank holding company commercial banks expanded 2l/i per cent and bank merger orders; and pending over the most recent survey period. cases. 843 STATEMENT TO CONGRESS 914 MEMBERSHIP OF THE BOARD OF Chairman G. William Miller reported that monetary policy is being directed force- GOVERNORS OF THE fully toward helping to resolve the urgent FEDERAL RESERVE SYSTEM, 1913-78 problems of continuing domestic inflation List of appointive and ex officio members. and a sharp decline in the value of the dollar on foreign exchange markets, before the Committee on Banking, Finance 917 ANNOUNCEMENTS and Urban Affairs, U.S. Senate, No- Measures undertaken by the Treasury vember 16, 1978. Department and the Federal Reserve to strengthen the dollar and thereby to 848 RECORD OF POLICY ACTIONS OF THE counter continuing domestic inflationary FEDERAL OPEN MARKET COMMITTEE pressures. At the meeting on September 19, 1978, Cancellation of Regulation E (Purchase of the Committee decided that ranges of Warrants) under a program to clarify and tolerance for the annual rates of growth in simplify all Board regulations. M-l and M-2 over the September-October period should be 5 to 9 per cent and 6V2 Resignation of Philip C. Jackson, Jr., as to IOV2 percent, respectively. With regard a member of the Board of Governors. to the Federal funds rate, the Manager was Death of Vice Chairman Stephen S. instructed to seek a rate of around 8V2 per Gardner. cent early in the period until the next regular meeting. Subsequently, if the 2- Exemption from the Truth in Lending Act month growth rates of M-l and M-2 ap- and its implementing Regulation Z of cerpeared to be significantly above or below tain credit transactions in Massachusetts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Approval of technical changes affecting Changes in Board staff. registration of bank holding companies or Six State banks admitted to membership applications for their expansion. in the Federal Reserve System. Changes proposed to broaden the scope of the regulation on Equal Credit Opportu- 925 INDUSTRIAL PRODUCTION nity. Output increased an estimated 0.5 per cent Adoption of a uniform examination pro- in October. cedure for evaluating and commenting on "country risk" factors involved in inter- A1 FINANCIAL AND BUSINESS STATISTICS national lending by U.S. banks. A3 Domestic Financial Statistics A joint system for rating data processing A46 Domestic Nonfinancial Statistics centers adopted by Federal bank and thrift A54 International Statistics institution regulators. A69 GUIDE TO TABULAR PRESENTATION Revised survey of trust assets at regulated AND STATISTICAL RELEASES institutions to be conducted on an annual basis. A70 BOARD OF GOVERNORS AND STAFF Proposed regulatory revisions establishing A72 OPEN MARKET COMMITTEE AND uniform standards for bank recordkeeping, STAFF; ADVISORY COUNCILS confirmation, and other procedures in making securities transactions for trust A73 FEDERAL RESERVE BANKS, department and other bank customers. BRANCHES, AND OFFICES Publication of The Bank Holding Com- A74 FEDERAL RESERVE BOARD PUBLICATIONS pany Movement to 1978: A Compendium and of the pamphlet, "How to File a A76 INDEX TO STATISTICAL TABLES Consumer Credit Complaint." A78 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments in the Third Quarter of 1978 This report, which was sent to the Joint Eco- ters; inflows of the interest-bearing components nomic Committee of the U.S. Congress, high- of these measures were augmented in part by lights the important developments in domestic the popularity of the 6-month "money market" financial markets during the summer and early certificate introduced by depositary institutions fall. in June. In an effort to restrain the excessive rise in Growth in M-l decelerated somewhat in the the money stock and to help stabilize conditions third quarter of 1978, reflecting a moderation in international exchange markets in the third in the pace of real economic activity and the quarter, the Federal Reserve moved steadily accumulating impact of more restrictive credit toward a less accommodative posture in providmarket conditions. Nominal income and ex- ing reserves to the banking system through open penditure continued to rise rapidly, however, market operations. The Federal funds rate and growth in the narrowly defined money stock climbed a further 1 per cent to 8% per cent over remained at a rate above that implied by the the quarter. In addition, the discount rate was longer-run range established by the Federal raised 75 basis points in two steps, reaching 8 Open Market Committee for the year ahead—in per cent. Most short-term interest rates inthis case, for the four-quarter period ending in creased by similar amounts, and commercial the second quarter of 1979. Meanwhile, the banks boosted the prime lending rate to 10 per broader monetary aggregates, M-2 and M-3, cent in early October. expanded more rapidly than in previous quar- With excessive strength in money growth Interest rates Per cent per annum NOTES: LONG-TERM Monthly averages except for F.R. discount rate and conventional mortgages (based on quotations for one day each month). Aaa utility ^ New issue * Conventional Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; Aaa utility bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and State and local A by Moody's Investors Service government and adjusted to Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed 1976 1977 1978 1976 1977 1978 quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Federal Reserve Bulletin • November 1978 continuing and conditions in foreign exchange nomic activity displayed continued vigor. These markets becoming increasingly unsettled in Oc- factors also contributed to a reversal of the rise tober, the Federal Reserve raised the discount in stock prices that had taken place through most rate to SV2 per cent in the middle of the month of the third quarter. The sharp downward and by a full point—to 9V2 per cent—on No- movement in stock market quotations in late vember 1. On the latter date, a 2 percentage September and October more than erased gains point supplemental reserve requirement on made since June. large-denomination time deposits ($100,000 or Domestic nonfinancial sectors raised about more) also was announced. $345 billion, at a seasonally adjusted annual In contrast to short-term yields, most long- rate, in U.S. credit markets in the third quarter, term interest rates moved lower in late July and little changed from the aggregate level of borearly August, when investors apparently inter- rowing in the previous quarter. In the household preted the evidence of a slowing in economic sector, the volume of mortgage financing congrowth from the rapid second-quarter pace as tinued to increase, although remaining well indicating that interest rates might be near their below the record amounts advanced in the secpeaks for the current expansion. The bulk of ond half of 1977, while consumer instalment this decline in long-term interest rates was re- credit expanded somewhat less rapidly. The versed in late September and early October, growth in business borrowing moderated in the however, as short-term yields came under sig- third quarter, as slower expansion of bank lendnificant upward pressure, price indexes rose ing to business was only partially offset by a appreciably, and advance indicators of eco- larger amount of bond and stock financing. In Changes in selected monetary aggregates 1 Seasonally adjusted annual rate of change, per cent 1977 1978 IItteemm 11997755 11997766 11997777 Q3 Q4 Q1 Q2 Q3 Member bank reserves2 Total -.3 1.0 5.2 7.3 6.1 8.5 6.3 8.4 Nonborrowed 33..22 11..22 22..77 1.7 3.4 14.5 .3 6.2 Concepts of money3 M-l 4.6 5.8 7.9 8.0 7.5 66..22 99..99 77..66 M-2 8.4 10.9 9.8 9.9 8.1 6.9 7.9 8.9 M-3 11.1 12.8 11.7 11.9 10.6 7.7 7.8 10.0 M-4 6.6 7.1 10.1 9.5 10.8 10.3 10.1 8.8 M-5 99..77 10.3 11.8 11.6 12.2 9.8 9.1 9.9 Time and savings deposits at commercial banks—Total (excluding large negotiable CD's) . 11.7 15.0 11.2 11.2 8.5 7.3 6.4 9.9 Savings 17.5 25.0 11.1 7.3 5.4 2.6 1.6 1.3 Other time 7.8 7.4 11.4 14.6 11.6 11.4 10.5 17.2 Small time plus total savings4 ... 16.8 19.2 10.5 7 8 4.4 3.0 3.8 4.3 Deposits at thrift institutions5 1155..66 1155..88 1144..66 1155..00 1144..44 88..99 77..66 1111..66 MEMO (change in billions of dollars, seasonally adjusted): Large negotiable CD's at large banks -5.6 -19.1 8.0 7 77..11 8.8 6.5 1.6 AH other large time deposits6 — -3.7 -1.0 10.9 5.2 5.6 5.7 3.9 7.7 Small time deposits 18.6 16.5 14.6 3.3 1.3 1.5 2.8 3.5 Nondeposit sources of funds 7 — -2.9 16.6 11.0 4.5 4.5 5.0 2.2 3.6 1 Changes are calculated from the average amounts out- 5 Savings and loan associations, mutual savings banks, and standing in each quarter. credit unions. 2 Annual rates of change in reserve measures have been 6 Total large time deposits less negotiable CD's at weekly adjusted for changes in reserve requirements. reporting banks. 3 Af-1 is currency plus private demand deposits adjusted. 7 Nondeposit sources of funds include borrowings by com- M-2 is M-l plus bank time and savings deposits other than mercial banks from other than commercial banks in the form large negotiable CD's. M-3 is M-2 plus deposits at mutual of Federal funds purchased, securities sold under agreements savings banks and savings and loan associations and credit to repurchase, and other liabilities to own foreign branches union shares. M-4 is M-2 plus large negotiable CD's. M-5 (Euro-dollar borrowings), loans sold to affiliates, loan repuris M-3 plus large negotiable CD's. chase agreements, borrowings from Federal Reserve Banks, 4 Interest-bearing deposits subject to Regulation Q. and other minor items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1978 831 the public sector, bond issuance by State and of foreign entities at commercial banks. By local governments continued to be bolstered by August and September these damping influences a large volume of advance refunding issues, had dissipated and other special factors related while the Treasury required a sizable amount to the processing of Federal tax payments and of credit to finance its deficit and to build up the early distribution of social security checks its cash balances. contributed to more rapid growth. The moderation in the quarterly rate of growth of M-l occurred contemporaneously with a sharper slowdown in the expansion of MONETARY AGGREGATES GNP from its second-quarter surge; as a result, AND BANK CREDIT growth in M-l velocity (V-l) declined markedly from the preceding quarter. Wide swings in the Growth in M-1 during the third quarter averaged growth rate of velocity typically accompany 7.6 per cent, down somewhat from the excepsharp fluctuations in the growth of GNP, as tionally rapid rise of nearly 10 per cent in the money demands tend to adjust with a lag to such second quarter. The continuing brisk expansion movements. So far in 1978, the annual rate of of M-1 reflected the strong transactions demand growth in V-l has averaged 4 per cent, close for cash balances associated with rapidly rising to the y/2 per cent recorded in each of the two nominal income and expenditures; this demand preceding years. was offset only in part by the incentive offered M-2 expanded at an annual rate of 8.9 per by rising interest rates to economize on noncent during the third quarter, up 1 percentage earning balances. The rate of M-l expansion point from the previous 3 months. The accelerincreased in each successive month of the quaration of the interest-bearing component of this ter, a pattern that arose to a certain extent from broader aggregate was due mainly to a sharp a number of special factors affecting holdings increase early in the quarter in the rate of growth of cash balances. Early in the quarter, increases of large-denomination ($100,000 or more) time in M-l apparently were held down for a short deposits included in M-2. Moreover, despite a time by an unusually large build-up of Treasury substantial widening of the adverse differential cash balances and by some weakness in deposits between short- and intermediate-term market yields and Regulation Q ceilings on most deposits, the growth rate of interest-earning de- Changes in income velocity of M-l and M-2 posits at commercial banks subject to these ceilings, that is, savings and small-denomination time deposits, rose slightly for the second consecutive quarter. The faster growth of small-denomination time deposits at commercial banks was attributable largely to inflows into the new 6-month money market certificate, the ceiling rate on which varies with the discount rate in weekly auctions of 6-month Treasury bills. Banks first offered these certificates in June, and by the end of September they had issued almost $10 billion of them, an amount equal to 2Vi per cent of outstanding small time and savings deposits. Most of this amount probably represents retention of funds from maturing time deposits and transfers from savings deposits, rather than receipt of new funds; the volume of other small time deposits with shorter maturities at banks Seasonally adjusted annual rates. Money stock data are has dipped sharply since June, and the rate of quarterly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Federal Reserve Bulletin • November 1978 Treasury yield curves and deposit rate ceilings jumped to an annual rate of 10 per cent, well Per cent per annum above the pace of 7.8 per cent in the first half of 1978. Even with the continued large increase in deposits subject to rate ceilings, banks supported asset growth by adding to managed liabilities—a composite of large-denomination time deposits and nondeposit short-term borrowings, on which there are no rate ceilings—at about the same rate as in the second quarter. This increase in managed liabilities, however, was much smaller than in late 1977 and early 1978. At large banks, the ratio of these liabili- 3 4 5 6 ties to total net assets edged up slightly, re- Years to maturity maining below the 1974 peak but extending the + Maximum yield on "money market" time deposits at virtually uninterrupted rise begun in late 1976. thrift institutions for September 27, 1978. * Maximum yield on "money market" time deposits at During the first half of 1978, large, noncommercial banks for September 27, 1978. money-market banks were largely responsible Data reflect annual effective yields. Ceiling rates are yields derived from continuous compounding of the nominal ceiling for the greater use of managed liabilities. But rates. Market yield data are on an investment yield basis. in the third quarter, the money market banks accounted for most of the increase, as other growth in small time deposits with longer ma- large banks reduced somewhat their unusually turities also has fallen in recent months. In the extensive reliance on such funds. absence of the new 6-month certificate, however, many of the funds shifted to it might have been invested directly in market securities. The growth of savings deposits was very slow on Components of Major categories of average in the third quarter. There were net bank credit bank loans withdrawals from savings accounts of individ- Change, billions of dollars uals in June and July, but relatively large in- TREASURY SECURITIES flows into these accounts in August and September. u . n u EJ The new money market certificate appears to have contributed to the ability of thrift institui tions, even more than banks, to attract additional funds and to retain deposits that otherwise might have been diverted into market instruments. By the end of the third quarter, outstanding balances of money market certificates at savings and loans and mutual savings banks stood at about $24 billion, or 4% per cent of total deposits. At least some of the more rapid growth of such accounts reflected the differential of 25 basis points between the ceiling rates at thrift institutions and those at commercial banks. Primarily because of the attractiveness of the money market certificate, total deposit Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 1977 1978 1977 1978 growth at thrift institutions accelerated substantially during the quarter to an annual rate of Seasonally adjusted. Total loans and business loans adjusted for transfer between banks and their holding companies, affili- 11.6 per cent. As a result, growth in M-3 ates, subsidiaries, or foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1978 833 Total loans and investments of commercial Business loans and shortbanks increased at an annual rate of 11 per cent and intermediate-term business credit in the third quarter, somewhat below the pace Seasonally adjusted annual rate of change, per cent of growth in the preceding 3 months. Holdings Business loans at banks1 of Treasury securities were reduced, following TToottaall sshhoorrtt-- aanndd PPeerriioodd Excluding iinntteerrmmeeddiiaattee--tteerrmm some accumulation in the second quarter. Ac- bank holdings bbuussiinneessss ccrreeddiitt22 quisitions of municipal securities were large, as Total of bankers acceptances they have been throughout the year, apparently 1975—Ql.. —5.2 -7.4 -4.4 reflecting demand for tax-exempt assets due to Q2.. -8.7 -9.0 -8.9 a rise in bank profits. Q3 -2.4 -2.9 -.5 Q4.. -2 3 -3.9 Growth in bank loans slowed somewhat dur- 1976—Ql.. -6.9 -6.6 -1.2 ing the third quarter, with most of the deceler- Q2.. 1.6 2.1 5.9 Q3.. 5.3 2.8 2.3 ation resulting from a slower pace of business Q4.. 10.6 9.7 12.8 lending and a run-off in security loans. Real 1977—Ql.. 11.2 13.3 14.6 estate lending picked up somewhat from the Q2.. 12.8 12.9 16.1 Q3.. 11.2 10.4 10.4 exceptionally vigorous rate since the end of Q4.. 11.7 12.6 16.4 1976. Bank lending to consumers, on the other 1978—Ql.. 16 3 17.8 15.5 hand, moderated slightly in the third quarter. Q2.. 19.0 19.5 18.6 Q3.. 11.0 11.0 9.6 1 Based on data for last Wednesday of month, adjusted for outstanding amounts of loans sold to affiliates. 2 Short- and intermediate-term business credit is business BUSINESS FINANCE loans at commercial banks excluding bank holdings of bankers acceptances plus nonfinancial company commercial paper and The external financing needs of nonfinancial finance company loans to businesses measured from end of quarter to end of quarter. businesses decreased in the third quarter, as internally generated funds increased while capital expenditures remained about unchanged. The communications concerns, accounted for much reduction in credit requirements was reflected of the increase. In contrast, offerings by indusalmost entirely in short- and intermediate-term trial corporations during the third quarter reborrowing; growth of business credit in these mained quite moderate, as industrial firms with maturity ranges fell to 9Vi per cent from the higher ratings (Aa and above) continued to per cent during the second quarter. Although avoid issuance of bonds. Such firms probably business borrowing in the commercial paper were reluctant to incur long-term debt at the market and from finance companies slowed, relatively high level of interest rates prevailing most of the deceleration resulted from a near this year and could rely heavily on short-term halving in the rate of growth in loans from borrowing, since they had made substantial imbanks. This decline in business lending was provements to their liquidity positions earlier in most pronounced at large banks, whose credit the expansion. Financial corporations also reextensions to firms in the manufacturing, min- duced their public bond offerings during the ing, retail trade, and public utilities industries third quarter, mainly owing to a drop in sales were especially weak. Some of the reduction of securities by finance companies. in lending by these banks also may have been Although the volume of public bond offerings attributable to a tendency toward tightening in by higher-rated industrial concerns was quite the terms of bank loans at large, non-money- small in the third quarter, such offerings by market banks, which already had experienced corporations with low bond ratings (less than a marked erosion of their liquidity positions. Baa) were relatively large. In addition, private Although it remained well below the levels placements of corporate bonds, which tend to of recent years, borrowing by nonfinancial cor- be issues of manufacturing and industrial conporations in bond markets picked up somewhat cerns with ratings below Aa, are estimated to in the third quarter. In the public bond market have remained close to the relatively strong pace expanded issuance by public utilities, especially of other recent quarters. This sizable volume Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 Federal Reserve Bulletin • November 1978 Gross offerings of new security issues joint Treasury-Federal Reserve program to stem Seasonally adjusted annual rates, billions of dollars the decline in the foreign exchange value of the 1977 1978 dollar. TTyyppee ooff sseeccuurriittyy Because of their strong price performance in Q3 Q4 Ql Q2' Q3e the third quarter, stocks traded on the American Corporate, total 61 59 39 46 54 Stock Exchange and over the counter had a Bonds 49 43 32 36 43 Publicly offered 33 24 16 19 27 substantial increase in their price-earnings Privately placed 16 19 16 17 16 Stocks 12 16 7 10 11 ratios. In part reflecting this improvement, eq- Foreign 13 5 5r 12 6 uity issuance by smaller firms, whose share prices make up a large portion of these indexes, State and local government 47 46 43 49 51 increased during the quarter, leading to a slight r Revised. e Estimated. rise in the total volume of common and preferred stock offerings. Total equity issuance remained small, however, as the relatively low of bond issuance by lower-rated corporations level of price-earnings ratios for most larger reflected in part the availability of loanable corporations apparently continued to discourage funds at major institutional investors such as life the issuance of new stock. insurance companies and bond funds, which tend to favor investment in such corporations. In addition, it may have been encouraged by the relatively low risk premiums associated with GOVERNMENT FINANCE these securities. The spread between lower-rated (Baa) and higher-rated (Aaa) corporate bonds State and local governments offered a near-recremained relatively narrow through the third ord amount of bonds in the third quarter, with quarter, despite the over-all upward movement advance refundings reaching a record level in in long-term interest rates this year. August and accounting for a sizable portion of Even with substantial increases in short-term the quarter's total issues. The heavy pace of interest rates during most of the third quarter, advance refundings came largely in anticipation yields on corporate bonds declined slightly, on of the September V effective date of new Treasbalance, over the period. Gains in stock prices, ury Department regulations that reduced the on the other hand, were quite pronounced for attractiveness of these operations. the quarter, although some of the increases Interest rates on State and local obligations registered in the first 2 months were erased in declined appreciably during the third quarter. late September. At the end of September major The Bond Buyer index of tax-exempt bond indexes of stocks listed on the New York Stock yields, at 6.10 per cent in early October, was Exchange generally were from 6 to 12 per cent almost lA of a percentage point below its level above their levels at the beginning of the year, at the end of June, somewhat more than the but remained below their highs for the current decrease in yields on taxable Government seexpansion reached at the end of 1976. Price curities. The relatively strong performance of indexes of issues listed on the American Stock tax-exempt yields over the quarter was due in Exchange and traded over the counter ended the part to a reported step-up in demand for these quarter only slightly below their record highs securities by commercial banks and propertyestablished in mid-September. In October, stock casualty insurance companies, a group that also prices moved sharply lower and interest rates experienced strong profits. on corporate bonds increased, in apparent reac- Treasury borrowing during the third quarter tion to heightened uncertainty about the outlook amounted to $15 billion (not seasonally adfor inflation and economic activity, to higher justed). The bulk of this borrowing occurred short-term interest rates, and to weakness in the during the first 2 months of the quarter, mainly foreign exchange value of the dollar. The prices because of the issuance of special nonmarketaof long-term securities stabilized in November, ble obligations associated with the advance rehowever, following the announcement of the funding operations of State and local govern- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1978 835 Federal Government borrowing and cash balance Quarterly totals, billions of dollars, not seasonally adjusted 1977 1978 IItteemm Ql Q2 Q3 Q4 Ql Q2 Q3 Treasury financing Budget surplus, or deficit (-) .. -18.7 8.6 -12.2 -28.8 -25.8 14.0 -8.1 Off-budget deficit1 -4.3 .1 -4.9 -1.3 -3.7 -2.2 -3.1 Net cash borrowings, or repayments (-) . — . 17.6 -1.1 419.5 20.7 20.8 2.5 15.1 Other means of financing2 2.7 -.4 .4 2.6 2.8 -3.2 1.0 Change in cash balance . -2.6 7.2 42.8 -6.8 -5.9 11.1 4.9 Federally sponsored credit agencies, net cash borrowings3 ...— .7 3.0 1.8 22..00 4.5 ••66..55 66..11 1 Includes outlays of the Pension Benefit Guaranty Corpora- poration, Federal home loan banks, Federal land banks, Federal tion, Postal Service Fund, Rural Electrification and Telephone intermediate credit banks, banks for cooperatives, and Federal Revolving Fund, Rural Telephone Bank, Housing for the National Mortgage Association (including discount notes and Elderly or Handicapped Fund, and Federal Financing Bank. securities guaranteed by the Government National Mortgage All data have been adjusted to reflect the return of the Export- Association). Import Bank to the unified budget. 4 Includes $2.5 billion of borrowing from the Federal Re- 2 Checks issued less checks paid, accrued items, and other serve on September 30, which was repaid October 4 after the transactions. new debt ceiling bill became law. 3 Includes debt of the Federal Home Loan Mortgage Cor- 1 Revised. ments. A sizable volume of nonmarketable MORTGAGE AND Government securities also was acquired by CONSUMER CREDIT foreign official accounts with the proceeds from dollar support operations in foreign exchange Net mortgage lending edged higher during the markets, in contrast to a net paydown of special third quarter from its pace in the first half of foreign issues during the preceding quarter. In 1978. Flows of funds into residential mortgages the third quarter, the Treasury continued to rely picked up slightly, although they were still mostly on coupon securities to meet its financ- about $10 billion below the level recorded in ing needs in the open market. During the first the second half of 1977. In addition, commerthree quarters of 1978, the outstanding supply cial and other nonresidential mortgage lending of Treasury bills remained about unchanged, at posted a small further increase during the quar- $161 billion, while coupon issues increased ter. The continued strong pace of commercial almost $29 billion. However, most of the mortgage lending can be attributed principally coupon issues had maturities of 2 to 4 years; to rising commercial construction activity. as a result, the average maturity of the Treasury Commercial banks increased their mortgage debt, which was 3 years and 1 month at the lending in the third quarter, from an already end of September, had lengthened only 2 strong pace in the previous quarter, and life months since the end of 1977. insurance companies continued to acquire sub- Net borrowing by Federally sponsored credit stantial amounts of mortgages. The rise in net agencies remained sizable during the third mortgage acquisitions by these diversified interquarter as a whole, although the pace of inter- mediaries can be attributed in part to the inmediate- and long-term borrowing slowed ap- creased demand for commercial and other preciably as the quarter progressed. As in the nonresidential mortgages, for which they are preceding two quarters, most of this borrowing major lenders, as well as to the relative attracwas related to activity of sponsored credit agen- tiveness of mortgage yields. In addition, becies in the residential mortgage market. The cause of the relatively flat volume of private Federal National Mortgage Association and the offerings of corporate bonds, insurance compa- Federal home loan banks both borrowed heavily nies could channel increases in cash flows into during most of the quarter in order to obtain mortgage markets. funds with which to offset tightness in the In contrast with the expanded mortgage lendmortgage market and to rebuild their own hold- ing of commercial banks and life insurance ings of liquid assets. companies, savings and loan associations ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

836 Federal Reserve Bulletin • November 1978 quired fewer mortgages during the third quarter, Net change in mortgage debt outstanding in lagged response to the sharply reduced de- Seasonally adjusted annual rates, billions of dollars posit inflows during the first half of 1978. 1977 1978 Spurred by sales of the new money market CChhaannggee Q3 J iQ4 Q,| Q2'| Q3e certificate, deposit growth at savings and loans Total 141 151 133 137 140 increased during the third quarter. However, By type of property: these associations apparently used much of the Residential 114 116 100 103 104 increased deposit inflows to improve their li- Other1 27 . 35 33 34 36 quidity and moderate their reliance on borrowed By type of holder: Commercial banks 32 31 25 31 36 funds. At insured savings and loans, the liquid- Savings and loans ... 61 62 54 52 48 ity ratio—cash and liquid assets divided by the Mutual savings banks 8 8 7 6 7 Life insurance companies 5 9 6 9 10 sum of short-term borrowings and deposits— FNMA and GNMA -3 * 6 13 8 Other2 38 41 35 26 31 rose substantially over the quarter, reaching 9.2 per cent in September, its highest level since 1 Includes commercial and other nonresidential as well as farm properties. mid-1977. In addition, savings and loans slowed 2 Includes mortgage pools backing securities guaranteed by the rate at which they were taking down ad- the Government National Mortgage Association, Federal Home Loan Mortgage Corporation, or Farmers Home Administravances from Federal home loan banks. The tion. Some of these mortgage-pooled securities may have been pick-up in deposits also encouraged a modest purchased by the institutions shown separately but are not included in the above mortgage holdings. increase in mortgage commitments outstanding 1 Revised. at these associations during the quarter. e Estimated. * Less than $500 million. Issuance of mortgage pass-through securities guaranteed by the Government National Mortgage Association (GNMA) increased substan- The average interest rate on new committially in the third quarter, following sharp de- ments for conventional home mortgages with 80 clines earlier in the year, and purchases by the per cent loan-to-value ratios at savings and loans Federal National Mortgage Association was little changed over the quarter, following (FNMA) of Government-underwritten home an increase of about 3A of a percentage point loans fell off sharply. This pattern resulted from in the first half. In the face of continued strong a rise in prices of GNMA-backed, pass-through demand for mortgage funds, the relative stabilsecurities relative to prices available to origina- ity of mortgage interest rates may be largely tors of Government-guaranteed mortgages under attributable to the strengthening of deposit existing FNMA mortgage commitments. flows, as well as to the declines in other longterm market interest rates at midquarter. Consumer instalment credit outstanding expanded at an annual rate of about 16 per cent Deposits at savings and loans during the third quarter, somewhat slower than Annual rate of change, per during the first half but still quite strong. The moderation resulted from a continuing increase 16 of credit extensions. Sales of autos at higher prices remained the major stimulus to the growth of instalment credit. Although interest 8 rates on automobile credit remain largely unchanged, other credit terms, such as the average loan maturity at commercial banks and down- 0 payment requirements at finance companies, 1977 1978 appear to have begun tightening during the Seasonally adjusted. Quarterly averages at annual rates. quarter. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

837 Survey of Time and Savings Deposits at Commercial Banks, July 1978 Total time and savings deposits at insured com- flows among small-denomination (less than mercial banks, not adjusted for normal seasonal $100,000) time and savings deposits. The first variation, expanded 2Vi per cent during the 3 new category, the 6-month money market time months ending July 26, 1978, compared with deposit (MMTD)—with a ceiling interest rate 3 per cent over the preceding intersurvey pe- that changes weekly with changes in the average riod.1 As they had in each survey quarter since yield on new issues of 6-month Treasury April 1977, banks relied heavily on the sales bills—attracted nearly $5Vi billion.2 A substanof large-denomination ($100,000 or more) time tial portion of these funds appear to have been deposits to finance continued brisk expansion in shifted from other types of small time and bank credit. Between April and July, banks savings deposits at banks; such accounts deraised $10 billion through the issuance of large clined about $1V2 billion since the last survey. time deposits, only a little less than the quar- However, MMTD balances probably also interly-average growth of $11 billion for the four cluded funds that otherwise would have been preceding survey quarters. Inflows of interest- diverted to market instruments in view of the bearing deposits subject to rate ceilings totaled considerable rise in market interest rates over more than $4XA billion in the most recent survey, the period. The second instrument authorized close to the average of $4 billion per quarter on June 1, time certificates with original masince April 1977. turities of 8 years and over that are subject to Unlike other recent quarters, however, intro- a 7% per cent rate ceiling, attracted nearly $ll/2 duction of two new deposit categories on June billion, likely including funds that otherwise 1 altered substantially the pattern of deposit would have flowed into other long-maturity accounts. NOTE.—David M. Lefever of the Board's Division of Research and Statistics prepared this article. 1 Surveys of time and savings deposits (STSD) at all member banks were conducted by the Board of SAVINGS DEPOSITS Governors in late 1965, in early 1966, and quarterly in 1967. In January and July 1967 the surveys also During the May-July period, outstanding savincluded data for all insured nonmember banks collected by the Federal Deposit Insurance Corporation (FDIC). ings deposits at commercial banks, not season- Since the beginning of 1968 the Board of Governors ally adjusted, declined for the first time since and the FDIC have conducted the joint quarterly surveys the survey of January 1970. The $500 million to provide estimates for all insured commercial banks based on a probability sample of banks. The results of net outflow of savings deposits reflected rising all earlier surveys have appeared in previous BULLETINS from 1966 to 1978, the most recent being August 1978. The current sample—designed to provide estimates 2 The 6-month MMTD, which was introduced on of the composition of deposits—includes about 560 June 1, 1978, has a legal maximum nominal offering insured commercial banks. For details of the statistical rate derived weekly from the auction average discount methodology, see "Survey of Time and Savings De- yield on the most recently issued 6-month Treasury posits, July 1976" in the BULLETIN for December 1976. securities. The minimum required deposit for an MMTD Detailed data for the current survey (formerly con- is $10,000. The ceiling rate on MMTD's for thrift tained in appendix tables) are available on request from institutions is 25 basis points higher than the maximum Publications Services, Division of Administrative Serv- allowable rate for commercial banks. The range of ices, Board of Governors of the Federal Reserve Sys- offering rates on MMTD's appears in Table 1.16 (p. tem, Washington, D.C. 20551. A10) of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 Federal Reserve Bulletin • November 1978 rates on alternative short-term instruments, in- categories of savings deposits, a slightly larger cluding Treasury securities, money market mu- proportion of banks paid the ceiling rate of tual funds, and the new MMTD's. By the end interest in July than in April. Nevertheless, the of July, rates on 90-day Treasury bills and impact of these increases was so small that the money market mutual funds exceeded the max- average rate paid on all new issues of savings imum allowable yield on savings deposits by deposits, weighted by the amount of deposits more than 2 percentage points, while the maxi- outstanding, remained unchanged from the mum effective yield in MMTD's was 2Vi per- April survey at 4.93 per cent. centage points higher than the savings rate. The net outflow of savings deposits was concentrated in accounts held by individuals and SMALL-DENOMINATION domestic governmental units, as deposits in TIME DEPOSITS each of these categories declined more than $400 million. Meanwhile, businesses increased Interpretation of movements in interest-earning their holdings of savings deposits by more than small-denomination time deposits, consisting of $300 million, after virtually no net inflow over all maturity categories including MMTD's, inthe past year. For each of the three major dividual retirement accounts, and Keogh ac- 1. Types of time and savings deposits held by insured commercial banks on survey dates, January 25, April 26, and July 26, 1978 Deposits Number of issuing banks Type of deposit, denomination, Millions of dollars Percentage change and original maturity Jan. 25 Apr. 26 July 26 Jan. 25 Apr. 26 July 26 Jan. 25- Apr. 26 Total time and savings deposits. 14,245 14,339 14,338 548,142 564,410 578,684 3.0 Savings 14,245 14,339 14,338 218,390 222,065 221,557 1.7 Issued to: Individuals and nonprofit organizations 14,245 14,339 14,338 202,513 205,843 205,433 1.6 Partnerships and corporations operated for profit (other than commercial banks) 9,374 9,754 9,955 10,558 10,679 11,005 1.1 D A o ll m o e th st e i r c governmental units 8 1 , , 3 2 9 5 1 1 8 1 , , 3 0 6 8 3 1 8 1 , , 0 2 2 6 3 8 5,2 1 0 1 6 2 5,4 1 2 1 7 6 4,9 1 8 3 1 8 4 4 . . 2 0 IRA and Keogh Plan time deposits, 3 years or more 9,088 9,434 9,364 2,084 2,549 2,782 22.3 Money market certificates, $10,000 or more, exactly 6 months1 9,102 5,409 Other interest-bearing time deposits, less than $100,000 14,090 14,102 14,095 166,717 169,674 168,077 1.8 Issued to: Domestic governmental units 10,688 11,135 10,845 4,118 4,219 4,030 2.5 30 up to 90 days 5,201 5,153 4,770 862 865 921 .3 90 up to 180 days 7,367 8,657 7,927 1,243 1,273 1,177 2.4 180 days up to 1 year 4,882 5,132 5,539 854 825 669 -3.3 1 year and over 8,680 8,748 8,867 1,159 1,255 1,264 8.3 Other than domestic governmental units 14,090 14,102 14,092 162,598 165,455 164,046 1.8 30 up to 90 days 6,629 6,439 6,125 6,250 5,886 5,429 -5.8 90 up to 180 days 11,751 11,635 11,700 31,459 30,634 29,556 -2.6 180 days up to 1 year 8,808 8,605 8,458 3,587 3,105 3,171 -13.4 2 1 V u z p u t p o t i o y 2 4 y y e e a a r r s s 2 1 1 2 3 , ,5 4 0 7 8 6 1 1 2 3 , ,8 7 3 5 2 0 1 1 3 2 , , 7 9 6 0 9 2 3 1 3 8 , , 9 4 7 6 7 3 3 1 3 9 , , 9 1 4 5 1 4 3 1 3 8 , , 0 4 4 5 1 2 - 3 .1 .7 4 up to 6 years2 12,390 12,610 13,044 50,848 52,081 51,126 2.4 6 up to 8 years2 9,198 9,455 10,740 18,016 20,654 21,852 14.6 8 years and over1,2 6,135 1,418 Interest-bearing time deposits, $100,000 or more 11,747 11,369 11,531 156,122 164,616 174,341 5.4 Non-interest-bearing time deposits. 1,625 1,650 1,470 4,019 3,999 4,381 -.5 Less than $100,000 1,379 1,379 1,177 692 623 695 -9.9 $100,000 or more 623 667 681 3,327 3,376 3,686 1.5 Club accounts (Christmas savings, vacation, or similar club accounts) 9,124 9,246 9,550 811 ,508 2,138 85.9 1 Issuance authorized beginning June 1, 1978. offered certain types of deposits as of the survey date are not counted 2 Excludes all IRA and Keogh Plan accounts with original maturity as issuing banks. However, small amounts of deposits held at banks of 3 years or more. that had discontinued issuing certain types of deposits are included in the amounts outstanding. NOTE.—All banks that had either discontinued offering or never Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits 839 2. Small-denomination time and savings deposits held by insured commercial banks on July 26, 1978, compared with April 26, 1978, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) Deposit group, original All banks All banks maturity, and distribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Savings deposits Individuals and nonprofit organizations Issuing banks 14,338 14,339 13,265 13,255 1,073 1,084 205,433 205,843 78,624 77,865 126,808 127,978 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less 4.1 4.3 4.1 4.3 3.8 5.1 3.2 3.4 3.6 3.6 2.9 3.3 4.01-4.50 8.4 9.4 8.7 9.8 5.0 4.5 7.1 7.5 9.2 9.9 5.8 6.0 4.51-5.00 87.5 86.3 87.2 86.0 91.2 90.4 89.7 89.1 87.2 86.5 91.3 90.7 Paying ceiling rate1... 87.5 86.3 87.2 86.0 91.2 90.4 89.7 89.1 87.2 86.5 91.3 90.7 Partnerships and corporations Issuing banks 9,955 9,754 8,898 8,683 1,057 1,071 11,005 10,679 3,277 3,366 7,729 7,313 Distribution, total. .. 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less 1.6 1.4 1.7 1.4 .8 .8 .7 .5 2.1 1.2 .2 . 1 4.01-4.50 7.4 8.0 7.9 8.5 3.4 3.7 4.3 4.8 5.8 6.4 3.7 4.0 4.51-5.00 91.0 90.7 90.4 90.1 95.8 95.5 95.0 94.7 92.1 92.4 96.2 95.8 Paying ceiling rate1... 90.7 90.4 90.1 89.8 95.8 95.5 95.0 94.7 92.1 92.4 96.2 95.8 Domestic govt, units Issuing banks 8,023 8,363 7,293 7,627 730 736 4,981 5,427 3,001 3,063 1,980 2,364 Distribution, total... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less 2.4 3.7 2.6 4.0 . 1 . 1 1.1 1.0 1.7 1.7 . 1 .2 4.01-4.50 9.5 10.9 10.1 11.7 3.4 3.3 3.6 3.3 4.6 5.1 2.1 1.1 4.51 5.00 88.1 85.3 87.3 84.3 96.4 96.5 95.3 95.6 93.7 93.3 97.8 98.7 Paying ceiling rate1... 88.1 85.0 87.3 83.9 96.4 96.5 95.3 95.5 93.7 93.0 97.8 98.7 All other Issuing banks 1,268 1,081 1,106 912 162 169 138 116 33 29 105 87 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4 4 . .0 0 0 1 o 4 r .5 l 0 e ss 1 1 9 3. . 6 0 1 1 9 0 . . 6 6 2 1 1 5 . . 8 3 2 1 2 2 . . 2 2 ( 22) .0 5 1 . . 5 9 (21 ) .6 1. . 1 4 3. . 2 1 (21 ) .9 (21 ) .0 . . 9 5 4.51-5.00 67.4 69.8 62.9 65.6 98.0 92.6 98.4 98.5 96.7 98.1 99.0 98.6 Paying ceiling rate1... 67.4 69.8 62.9 65.6 98.0 92.6 98.4 98.5 96.7 98.1 99.0 98.6 IRA and Keogh Plan time deposits, 3 years or Issuing banks 9,338 9,434 8,352 8,456 986 978 2,771 2,549 1,098 1,036 1,674 1,513 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less 4.1 5.8 4.3 5.9 2.7 5.1 2.8 2.6 2.0 1.6 3.3 3.3 6.01-7.00 7.8 9.9 8.3 10.6 3.8 3.3 2.4 2.9 3.2 5.4 1.8 1.2 7.01-7.50 36.9 44.4 37.8 45.6 29.4 34.0 29.8 38.0 38.7 49.4 23.9 30.2 7.51-7.75 51.1 39.9 49.6 37.8 64.2 57.6 65.1 56.5 56.2 43.7 71.0 65.3 Paying ceiling rate1... 23.5 39.9 22.6 37.8 30.7 57.6 35.0 56.5 29.4 43.7 38.6 65.3 Money market certificates, $10,000 or more, 6 months3 Issuing banks 8,928 7,891 1,036 5,369 1,830 33,,553388 T^ictrihiitir»n tnt?il 100 100 100 100 100 100 7 25 or less 9.4 10.4 1.7 3.0 5.6 1.7 7 26-7 48 3L4 33.9 11.7 16.8 23.9 13.1 7 49_7 50 59 3 55.7 86.6 80.2 70.4 85.2 i livn»irn»gtf riJi/iti <$i uTnf-tt £>• .1 • 5599..33 5555..77 8866..66 80.2 7700..44 8855..22 Time deposits less than $100,000 Domestic govt, units: 30 up to 90 days Issuing banks 4,770 5,153 4,094 4,446 676 708 921 837 496 463 442255 337744 Di 4 st . r 5 i 0 b u or ti o le n s , s total.. . 100 .7 10 2 0 .5 100 .6 10 2 0 . 8 100 1 .6 100 .8 100 1 .4 100 . 1 100 .1 1 ( 0 2 0 ) 10 2 0 . 9 100 .1 4.51-5.00 50.2 60.5 47.6 58.4 65.5 73.5 43.1 52.2 34.1 42.6 53.5 64.1 5.01-5.50 14.8 9.2 16.1 9.9 6.6 5.1 5.8 8.4 7.4 5.6 4.0 11.8 Paying 5.5 c 1 ei - l 7 in .7 g 5 rate1... 34 . . 2 3 27 . . 1 8 ( 325 ) .7 ( 2 2 8 ) .9 2 1 6 . . 1 2 20. . 6 5 4 (29 ) .7 ( 329 ) .3 ( 528 ) .3 ( 521 ) .7 ( 3 2 9 ) .6 ( 224 ) .0 90 up to 180 days Issuing banks 7,887 8,657 7,060 7,833 827 824 1,174 1,273 847 939 332277 333333 Di 4 st . r 5 i 0 b u or ti o le n s , s total... 100 .1 100 .4 1 ( 020 ) 100 .5 100 .7 100 .3 100 . 1 1 ( 020 ) 1 ( 020 ) 1 ( 020 ) 100 .2 1 ( 020 ) 4.51-5.00 17.0 8.7 18.0 9.0 8.2 5.3 13.9 7.7 17.1 8.3 5.5 5.9 5.01-5.50 65.4 75.5 64.8 75.0 70.0 79.3 62.8 72.3 62.4 71.7 63.9 74.0 Paying 5.5 c 1 ei - l 7 in .7 g 5 rate1... 17 . . 2 6 15 . . 1 4 ( 1 2 7 ) .2 ( 125 ) .5 2 1 1. . 1 5 15 . . 8 1 23. . 2 9 20. . 1 1 ( 220 ) .4 ( 220 ) .0 3 3 0 . . 2 4 20 . . 5 2 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 Federal Reserve Bulletin • November 1978 TABLE 2—Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars") DDeeppoossiitt ggrroouupp,, oorriiggiinnaall All banks All banks maturity, and distribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 Amount of deposits (in millions of dollars). Number of banks, or percentage distribution or percentage distribution Time deposits, less than $100,000 (cont.) Domestic govt. units (cont.) 180 days up to 1 year Issuing banks 5,488 5,132 4,820 4,521 668 611 667 818 466 562 201 257 Di 4 4 st . . r 5 5 i 0 1 b - u o 5 r t . i 0 o l 0 e n s , s total... 1 ( 0 2 9 0 ) .7 1 ( 0 2 2 0 ) .1 < 1 ( 0 1 2 0 0 ) . 1 1 ( 0 2 0 1 ) . 5 1 ( 0 2 6 0 ) .7 1 ( 0 2 6 0 ) .7 1 ( 0 2 3 0 ) .8 1 ( 0 1 2 0 2 ) . 2 1 ( 0 2 2 0 ) .0 1 ( 0 2 0 ) .2 1 ( 0 2 7 0 ) .8 1 ( 3 0 2 0 8 ) . 4 5.01-5.50 61.7 69.3 61.3 68.7 64.0 74.4 42.7 35.8 38.3 31.7 53.2 44.8 Paying 5.5 c 1 ei - l 7 in .7 g 5 rate1... 2 3 8 . . 6 6 28. . 5 1 2 3 8 . . 3 5 ( 2 2 9 ) .9 2 6 9 . . 0 3 18 . . 9 8 5 1 3 1 . . 5 4 51 . . 1 9 5 1 9 1 . . 7 1 ( 6 2 8 ) . 0 1 3 2 9 . . 0 0 16 . . 4 8 1 year and over Issuing banks 8,685 8,748 7,872 7,911 813 837 1,252 1,246 946 989 306 257 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less 1.1 1.4 .9 1.1 2.7 3.4 .2 .5 . l .2 .4 2.0 5.01-5.50 3.3 3.1 3.1 2.7 5.4 6.6 1.4 5. 1 '.1 1.0 3.3 21.1 5.51-6.00 64.2 61.8 64.3 61.9 63.0 60.8 52.8 59.8 60.0 61.1 30.7 54.7 6.01-7.75 31.4 33.8 31.7 34.3 28.8 29.1 45.7 34.5 39.2 37.7 65.6 22.2 Paying ceiling rate1... 1.3 .2 1.1 (2) 3.9 1.7 6.7 .6 5.7 (2) 9.5 2.9 Other than domestic govt, units: 30 up to 90 days Issuing banks 6,125 6,439 5,247 5,514 878 925 5,400 5,861 1,128 1,057 4,272 4,803 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 2.8 2.1 3.0 2.2 1.7 1.2 4.5 .9 . 1 .1 5.7 1.1 4.51-5.00 97.2 97.9 97.0 97.8 98.3 98.8 95.5 99.1 99.9 99.9 94.3 98.9 Paying ceiling rate1... 97.2 97.9 97.0 97.8 98.3 98.8 95.5 99.1 99.9 99.9 94.3 98.9 90 up to 180 days Issuing banks 11,700 11,635 10,656 10,570 1,044 1,065 29,544 30,532 11,755 12,044 17,788 18,488 Di 4 st . r 5 i 0 b u or ti o le n s , s total. . . 100 .6 100 .6 100 .7 100 .6 1 ( 0 2 0 ) 1 ( 0 2 0 ) 1 ( 0 2 0 ) 1 ( 0 2 0 ) 1 ( 0 2 0 ) 1 ( 0 2 0 ) 1 ( 0 2 0 ) 1 ( 0 2 0 ) 4.51-5.00 5. 1 5.1 5.3 5.3 3.3 3.1 4.9 4.7 3.9 3.8 5.6 5.4 5.01-5.50 94.3 94.4 94.1 94. 1 96.7 96.9 95. 1 95.3 96. 1 96.2 94.4 94.6 Paying ceiling rate1... 94.3 94.3 94.1 94.1 96.6 96.0 94.6 94.7 96.1 96.2 93.7 93.7 180 days up to 1 year Issuing banks 8,458 8,605 7,576 7,709 882 896 3,155 3,083 1,618 1,606 1,537 1,477 Di 4 st . r 5 i 0 b u o t r i o le n s , s total. . . 100 .6 100 .6 100 .4 100 .4 100 1 .9 100 1 .9 100 .2 100 .2 1 ( 020 ) 1 ( 0 2 0 ) 100 .3 100 .3 4.51-5.00 4.2 7.3 4.3 7.8 3.2 2.9 .8 3.0 .9 1.4 .6 4.6 5.01-5.50 95.2 92.1 95.3 91.7 94.9 95.2 99.1 96.9 99.1 98.6 99.0 95.0 Paying ceiling rate1... 95.2 91.8 95.3 91.4 94.9 95.2 99.1 96.9 99.1 98.6 99.0 95.0 1 up to 2 Vi years Issuing banks 1133,,776699 13,832 12,708 12,772 1,060 1,060 32,971 33,766 20,692 21,126 12,279 12,641 Dis 5 t . r 0 i 0 b u o t r i o le n s , s total. . . 1 ( 0 2 0 ) 100 .5 1 ( 0 2 0 ) 100 .5 1 ( 0 2 0 ) 100 .2 1 ( 0 2 0 ) 100 .5 1 ( 0 2 0 ) 100 . 1 1 ( 0 2 0 ) 100 1 .0 5.01-5.50 1.9 2.5 2.0 2.6 1.1 1.3 1.4 1.1 .7 1.3 2.5 .8 5.51-6.00 98. 1 97.0 98.0 96.9 98.9 98.5 98.6 98.4 99.3 98.6 97.5 98.2 Paying ceiling rate1... 98.0 96.9 98.0 96.9 97.6 97.1 98.3 98.1 99.3 98.6 96.8 97.3 2 Vi up to 4 years Issuing banks 12,902 12,750 11,853 11,697 1,049 1,053 18,418 19,154 10,886 11,212 7,531 7,942 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less 1.9 4.0 1.9 4.1 1.7 2.8 1.1 5.1 .9 6.2 1.5 3.6 6.01-6.50 98.1 96.0 98.1 95.9 98.3 97.2 98.9 94.9 99.1 93.8 98.5 96.4 Paying ceiling rate1... 97.1 95.7 97.1 95.7 97.4 95.4 98.5 94.3 98.9 93.3 98.0 95.7 4 up to 6 years Issuing banks 13,044 12,610 12,002 11,567 1,043 1,044 51,049 51,938 28,111 27,979 22,938 23,959 Distribution, total. . . 100 100 100 100 100 100 100 100 100 100 100 100 6.50 or less .6 1.3 .5 1.1 1.7 3.5 .9 1.4 .5 .2 1.3 2.9 6.51-7.00 12.2 12.3 12.7 12.9 7.3 5.4 9.3 9.8 12.8 14.9 5.0 3.8 7.01-7.25 87.2 86.4 86.8 86.0 91.0 91.1 89.9 88.8 86.7 84.9 93.7 93.4 Paying ceiling rate1... 86.9 85.9 86.6 85.4 90.5 90.7 89.6 88.6 86.6 84.7 93.3 93.3 6 up to 8 years Issuing banks 1100,,774400 9,455 9,741 8,494 998 961 21,781 20,391 9,804 8,589 11,977 11,802 Dis 7 t . r 0 i 0 b u o t r i o le n s , s total. . . 100 .6 100 1 .3 100 .3 100 .9 10 3 0 .3 10 4 0 . 8 100 .5 100 1 .3 1 ( 0 2 0 ) 1 ( 0 2 0 ) 100 .9 10 2 0 . 2 7.01-7.25 4.8 4.9 5.0 5.2 2.6 2.6 1.6 2.1 1.4 1.3 1.7 2.7 7.26-7.75 94.6 93.8 94.6 94.0 94.1 92.6 97.9 96.6 98.6 98.7 97.3 95.1 Paying ceiling rate1... 94.5 93.8 94.6 94.0 93.2 92.1 97.8 94.0 98.6 98.7 97.1 90.7 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Time and Savings Deposits 841 TABLE 2—Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) DDDeeepppooosssiiittt gggrrrooouuuppp,,, ooorrriiigggiiinnnaaalll AAllll bbaannkkss AAllll bbaannkkss mmmaaatttuuurrriiitttyyy,,, aaannnddd dddiiissstttrrriiibbbuuu--tttiiiooonnn ooofff dddeeepppooosssiiitttsss bbbyyy Less than 100 100 and over Less than 100 100 and over mmmooosssttt cccooommmmmmooonnn rrraaattteee July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 July 26 Apr. 26 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution TTiimmee ddeeppoossiittss lleessss tthhaann $$110000,,000000 ((ccoonntt..)) OOtthheerr tthhaann ddoommeessttiicc ggoovvtt,, uunniittss ((ccoonntt..)) 88 yyeeaarrss aanndd oovveerr33 IIssssuuiinngg bbaannkkss 6666666,,,,,,,111111133333335555555 5555555,,,,,,,333333399999994444444 777777744444440000000 1111111,,,,,,,444444411111118888888 333333311111117777777 1111111,,,,,,,111111100000001111111 Distribution, total 111111100000000000000 111111100000000000000 111111100000000000000 111111100000000000000 111111100000000000000 111111100000000000000 7.25 or less 1111111.......5555555 1111111.......3333333 3333333.......6666666 3333333.......5555555 .......7777777 4444444.......4444444 7.26-7.50 4444444.......0000000 3333333.......3333333 8888888.......4444444 22222227777777.......9999999 2222222.......7777777 33333335555555.......2222222 7.51-7.75 99999994444444.......5555555 99999995555555.......4444444 88888888888888.......0000000 66666668888888.......5555555 99999996666666.......6666666 66666660000000.......4444444 PPaayyiinngg cceeiilliinngg rraattee11...... 99999994444444.......5555555 99999995555555.......4444444 88888888888888.......0000000 66666668888888.......5555555 99999996666666.......6666666 66666660000000.......4444444 CClluubb aaccccoouunnttss IIssssuuiinngg bbaannkkss 9999999,,,,,,,555555555555550000000 9,246 8888888,,,,,,,777777733333335555555 8,417 888888811111115555555 830 2222222,,,,,,,111111133333332222222 1,500 999999911111119999999 640 1111111,,,,,,,222222211111113333333 859 DDiissttrriibbuuttiioonn,, ttoottaall 111111100000000000000 100 111111100000000000000 100 111111100000000000000 100 111111100000000000000 100 111111100000000000000 100 111111100000000000000 100 00..0000 44444448888888.......3333333 44.6 55555550000000.......2222222 46.2 22222228888888.......5555555 28.4 22222224444444.......9999999 22.5 33333336666666.......5555555 30.7 11111116666666.......1111111 16.5 00..0011--44..0000 11111114444444.......6666666 14.7 11111114444444.......7777777 14.8 11111113333333.......6666666 13.9 11111115555555.......3333333 14.6 11111119999999.......6666666 18.8 11111112222222.......0000000 11.5 44..0011--44..5500 7777777.......6666666 7.5 7777777.......6666666 7.6 7777777.......0000000 7.0 11111112222222.......7777777 12.3 11111113333333.......3333333 13.3 11111112222222.......3333333 11.6 44..5511--55..5500 22222229999999.......5555555 33.1 22222227777777.......5555555 31.4 55555550000000.......9999999 50.8 44444447777777.......1111111 50.6 33333330000000.......6666666 37.3 55555559999999.......6666666 60.5 1 See BULLETIN Table 1.16 on page A10 for the ceiling rates that held at banks that had discontinued issuing deposits are not included existed at the time of each survey. in the amounts outstanding. Therefore, the deposit amounts shown 2 Less than .05 per cent. in Table 1 may exceed the deposit amounts shown in this table. 3 Issuance authorized June 1, 1978. The most common interest rate for each instrument refers to the stated rate per annum (before compounding) that banks paid on the NOTE.—All banks that either had discontinued offering or had largest dollar volume of deposit inflows during the 2-week period never offered particular types of deposits as of the survey date are not immediately preceding the survey date. counted as issuing banks. Moreover, the small amounts of deposits Details may not add to totals because of rounding. counts, was complicated by the introduction balances represent funds that were shifted from during the intersurvey period of the new 6- other deposits at banks, particularly deposits month and 8-year accounts. Except for a short with maturities of 2lh up to 6 years. Inflows time following the introduction of the 8-year of time deposits with original maturities of 6 account, yields on alternative market instru- up to 8 years increased $1 billion, substantially ments remained above the fixed regulatory ceil- less than the $2V2 billion net inflow in the ing rates on all comparable maturities of small previous quarter. time deposits issued to nongovernmental units Net outflows of governmental small-denomiduring the survey quarter. Nevertheless, in the nation time deposits, which had begun in April May-July period the outstanding level of small 1977, resumed in the May-July interval after time deposits rose to $176 billion, up from $172 a slight net inflow during the preceding 3 billion in the preceding quarter. The stock of months. While MMTD's likely attracted some the new MMTD's grew to $51/2 billion from deposits of governmental units, especially from June 1 to the end of July, while %V/i billion the category of 180 days up to 1 year, the flowed into certificates with maturities of 8 years over-all effect of the new certificate on these and over in that period. governmental deposits seems to have been Reflecting diversion of deposits to these new small. The impact of the MMTD was lessened accounts, as well as advances in market rates by the fact that banks can now pay up to 8 per of interest on alternative instruments, flows to cent on all time deposits issued to these governall other maturity categories of nongovernmen- mental entities without regard to deposit matutal small-denomination time deposits weakened rity though with the requirement that banks from the already slow pace of the Febru- usually must pledge securities against such acary-April period. Indeed, banks experienced net counts.3 outflows from all but one of the categories of small time deposits maturing in less than 6 3 Banks are permitted to offer rates on time deposits to governmental units up to the highest ceiling rate on years, suggesting that a large part of MMTD any deposit category at any Federally insured institution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 Federal Reserve Bulletin • November 1978 3. Average of most common interest rates paid on various categories of time and savings deposits at insured commercial banks on July 26, 1978 Bank size (total deposits in millions of dollars) Type of deposit, holder, and original maturity All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over Savings and small-denomination time deposits 5.65 5.80 5.80 5.70 5.60 5.55 5.51 Savings, total 4.93 4.95 4.91 4.91 4.94 4.90 4.96 Individuals and nonprofit organizations 4.93 4.94 4.91 4.91 4.94 4.89 4.96 Partnerships and corporations 4.96 5.00 4.82 4.97 4.99 4.98 4.97 Domestic governmental units 4.97 4.93 4.97 4.97 4.99 4.99 4.99 All other 4.97 5.00 4.76 5.00 4.98 5.00 5.00 IRA and Keogh Plan time deposits, 3 years or more 7.62 7.59 7.62 7.43 7.69 7.64 7.66 Money market certificates, exactly 6 months 7.42 7.28 7.45 7.20 7.45 7.48 7.48 Other time deposits in denominations of less than $100,000, total 6.35 6.34 6.48 6.42 6.32 6.25 6.22 Domestic governmental units, total 6.17 6.00 6.33 6.02 6.10 5.51 6.63 30 up to 90 days 6.09 6.46 6.17 6.01 6.41 4.76 5.85 90 up to 180 days 5.79 5.55 5.98 5.72 5.84 6.14 6.32 180 days up to 1 year 6.22 5.99 6.66 6.22 5.98 6.74 6.53 1 year and over 6.54 6.22 6.46 6.26 6.28 6.61 7.61 Other than domestic governmental units, total 6.35 6.36 6.48 6.42 6.32 6.27 6.22 30 up to 90 days 4.83 5.00 5.00 5.00 4.99 4.96 4.60 90 up to 180 days 5.47 5.48 5.49 5.47 5.49 5.50 5.44 180 days up to 1 year 5.49 5.49 5.50 5.49 5.47 5.49 5.50 1 up to 2 i/i years 5.99 5.99 6.00 6.00 5.97 6.00 5.99 2 i/i up to 4 years 6.49 6.48 6.49 6.50 6.49 6.50 6.49 4 up to 6 years 7.22 7.23 7.19 7.24 7.22 7.22 7.23 6 up to 8 years 7.48 7.49 7.50 7.50 7.45 7.49 7.49 Over 8 years 7.61 7.73 7.75 7.69 7.61 7.52 7.60 Club accounts1 . 3.45 1.79 2.86 3.30 3.89 3.51 4.21 1 Club accounts are excluded from all of the above categories. amount of that type of deposit outstanding. All banks that had either discontinued offering or never offered particular types of deposit as NOTE.—The average rates were calculated by weighting the most of the survey date were excluded from the calculations for those common rate reported on each type of deposit at each bank by the specific types of deposits. The July survey revealed a growing propor- almost $10 billion. The growth of nearly 6 per tion of banks paying the maximum allowable cent, not seasonally adjusted, during the rate on most categories of time deposits issued May-July period was slightly higher than that to nongovernmental units, while issuing rates in the previous quarter and was the largest to governments were little changed. These de- percentage increase of any May-July period velopments, coupled with the rise in interest since 1974. Large negotiable certificates of depayments associated with conversions of depos- posit at weekly reporting banks (not shown in its to MMTD's, acted to raise the weighted- the table) accounted for 60 per cent of the total average rate paid on all small-denomination advance. time and savings deposits 4 basis points to 5.65 After a slight decline in the previous survey per cent. period, non-interest-bearing time deposits, principally escrow accounts and compensating balances held in conjunction with loans, increased $400 million, or 9Vi per cent, to almost OTHER TIME DEPOSITS $4Vi billion. Club accounts increased seasonally Continued rapid growth of bank assets, coupled by more than $600 million to just over $2 with comparatively slow growth in deposits billion, slightly above the level of a year earlier. subject to interest rate ceilings, induced banks Almost half of the offering banks, holding a to increase the outstanding volume of interest- quarter of outstanding deposits, paid no interest bearing large-denomination time deposits by on club accounts. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

843 Statement to Congress Statement by G. William Miller, Chairman, gains have been somewhat larger this year than Board of Governors of the Federal Reserve last, on average, while our productivity per- System, before the Committee on Banking, formance has been lagging. And the deprecia- Housing and Urban Affairs, U.S. Senate, No- tion of the dollar in international exchange has vember 16, 1978. raised the prices of imports and weakened competitive restraints on the prices of domestically Events in recent months have presented a for- produced goods. midable challenge to our Nation. While sus- With a heavy calendar of collective bargaintained economic expansion has led to higher ing in prospect for 1979 and with wage demands levels of output and employment, continuing likely to be intensified by recent price advances, domestic inflation and a sharp decline in the the threat of a further escalation of labor costs value of the dollar on foreign exchange markets is very real. Furthermore, scheduled increases have posed growing threats to the vitality of the next year in the minimum wage and social U.S. and world economies. Monetary policy is security taxes will again provide a significant being directed forcefully toward helping to re- inflationary impulse to costs. solve these urgent problems. President Carter has announced a major pro- The objective of the Federal Reserve has, for gram to break the self-destructive cycle of some time now, been to foster monetary and wages chasing prices and prices chasing wages. financial conditions that would lead to a reduc- The program includes quantitative guidelines tion of inflationary pressures, while encouraging that establish standards for constructive behavcontinued moderate economic growth. Real ior on the parts of labor and management. In gross national product rose at a 4 per cent annual addition, the President has indicated that he will rate, on average, during the first three quarters seek to eliminate needlessly costly and antiof this year, as compared with 5Vi per cent over competitive regulation. He has also committed the course of 1977. This slower pace in the his administration to the containment of Federal expansion has been sufficient to achieve sub- spending and greater fiscal restraint. stantial further gains in employment, but at the On November 1, the administration's antisame time it has avoided a significant overshoot inflation program was fortified by the joint acof general levels of resource utilization that tions of the Federal Reserve and the Treasury would have intensified inflationary demand Department to strengthen the dollar in exchange pressures in labor and product markets. markets. The Federal Reserve discount rate was Even so, there has been a marked pick-up raised 1 percentage point, and reserve requirein the rate of inflation. For example, consumer ments on large-denomination time deposits were prices have climbed at an annual rate of 9V£ increased. In addition, $30 billion in key foreign per cent so far this year. A number of factors currencies were mobilized for exchange-market have contributed to this development. Reduced intervention. The speculative assault on the supplies of some agricultural commodi- dollar in international currency markets had ties—especially meats—have caused sharply depressed its exchange value well below what higher food prices. Legislated increases in the could be justified on the basis of fundamental Federal minimum wage and in employer contri- economic considerations. The psychological butions for social security and unemployment momentum of the markets, if not broken, compensation have boosted labor costs. Wage threatened to worsen our inflation problem and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 Federal Reserve Bulletin • November 1978 to undermine confidence at home and abroad. In addition, financial factors should induce The clear willingness of the United States to some tapering off in homebuilding in 1979. To intervene actively in exchange markets and the date, housing starts have remained on a high monetary actions of the Federal Reserve have plateau, but the effects of recent increases in led to a rebound in the exchange value of the interest rates will soon begin to show through. dollar and to a more stable market environment. The 6-month certificates, introduced in June, These should be beneficial for domestic price have enabled thrift institutions to avoid the performance in the period ahead and bolster disintermediation that has curtailed mortgage confidence in the Nation's economic policies. credit availability in the past, but they have not If the cooperation of business and labor that sheltered the housing market from the effects is so essential to the success of the administra- of higher interest rates. Builders already are tion's anti-inflation program is to be obtained experiencing steeper rates on construction loans, and if we are to gain the fullest benefit of the for which charges tend to move in step with recent dollar-support initiatives, it is absolutely the bank rate on loans to prime business boressential that monetary and fiscal policies dem- rowers, and the stock of loan commitments for onstrate prudent restraint. If inflation is to be permanent mortgage financing made earlier at gradually slowed, aggregate demand must not lower rates is being depleted. The combined be permitted to expand to the point at which effects of higher mortgage rates and inflated it presses excessively on available supplies of house prices on the cost of homeownership are labor and industrial resources. This means that likely to bring about some decline in buildreal GNP at this juncture probably should not ing—although nothing approaching the disasgrow at an annualized rate much above 3 per trous drops seen in the past seems in store. cent, in line with the prospective growth of Business investment meanwhile should repotential output. Nor, of course, do we want main supportive of economic expansion. Invento see a protracted shortfall from that pace that tories by and large are quite lean in relation to would bring on recession and underutilization current sales levels, and even with a continuof labor and productive capacity. ation of cautious inventory policies, business- Recent trends in the economy and in financial men likely will wish to expand their stocks in markets suggest that expansion likely will be line with rising sales. As for spending on plant sustained, but at a more moderate pace over the and equipment, a recent private survey of innext year or so. One noteworthy development vestment intentions suggests only a modest inhas been the less robust pattern of spending by crease next year in real terms. On the other households following exceptional strength ear- hand, contracts and orders for new plant and lier in the cyclical recovery. Personal consump- equipment have been running well ahead of tion expenditures rose at an estimated annual year-earlier levels—even after adjustment for rate of less than 3 per cent in real terms during inflation. In general, the willingness of busithe first three quarters of this year, after having nessmen to commit funds for major investment advanced at an average rate of 5l/i per cent in projects will hinge in large part on the success the preceding 2% years. Rising costs of foods of efforts to control inflation, thereby providing and other necessities have put substantial pres- the basis for greater confidence in the future sure on the budgets of many families, and the health of the economy. proportion of disposable income spent has been The foreign trade sector represents an element unusually high. Record levels of borrowing of strength in the economic outlook. The U.S. have played an important role in supporting trade deficit should continue to shrink as a result consumer outlays, and the heavy repayment of the stronger growth in prospect for some of burdens that households face are likely to be our major trading partners and as a result of an increasing constraint on spending in the the effects of past exchange-rate changes on our forthcoming year. As a consequence, personal competitive position. consumption expenditures probably will no In all, it is my expectation that real GNP will more than keep pace with increases in personal increase by roughly 2Vi to 3 per cent in the income. year ending with the third quarter of 1979. With Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 845 growth in the labor force unlikely to be so rapid rates to rise appreciably this year. Yields on as in the past couple of years, this rise in activity Federal funds and other short-term instruments should be enough to keep the unemployment have increased more than 3 percentage points rate in the area of 53A to 6lA per cent. since the beginning of 1978, while interestTates In this projection I have assumed that infla- on long-term bonds and mortgages have risen tion will slow into the range of 63A to IV2 per about 1 percentage point. cent. There are as always many uncertainties These are sizable movements, to be sure, but on the price front: the effects of weather on crop the fact is that, even at current levels, real rates harvests and the decisions of the Organization of interest—that is, actual rates adjusted for of Petroleum Exporting Countries' cartel, for inflationary expectations—are not very high, example, are factors beyond the sphere of eco- and credit remains in adequate supply to finance nomic analysis. What is clear is that the cost a volume of spending that is appropriate in light increases already in train will be placing con- of the availability of real resources in the econtinued pressure on the price structure so that omy. Usury ceilings, which are unrealistic in it will be difficult to break the momentum of relation to present market interest rates in many inflation. However, if there is general compli- States, are cutting into credit availability in ance with the administration's guidelines, the some local markets, and it would be desirable advance of prices next year could be held to if these obstacles to the efficient operation of around the low end of the range I have pro- our financial system were eliminated. But there jected. This would represent a substantial de- has been nothing like a general "credit crunch," celeration from the increase of 8V4 per cent in and we do not foresee one. the GNP deflator expected for this year, and It is the intention of the Federal Reserve to would be a good start in the difficult process work toward a gradual deceleration of monetary of restoring price stability. and credit expansion to a pace consistent with The recent credit-restraining actions of the price stability. The speed with which we can Federal Reserve have aroused fears in some move in that direction without severely disruptquarters that an overly restrictive monetary pol- ing economic activity is limited by the degree icy might precipitate an economic downturn. to which inflation has become embedded in our There is no doubt that domestic credit markets economy. But some progress has been made in are tauter than they were 6 months ago. None- the past year. While M-l growth over the past theless, current financial conditions appear con- four quarters—at 8 per cent—was about the sistent with the moderate economic expansion same as in the previous year, growth in M-2 that is desirable at this juncture. and M-3 decelerated to rates of %lA and 9lA per The Federal Reserve has been moving its cent, respectively. Growth in these broader agpolicies in a progressively less accommodative gregates was 3 to V/2 percentage points slower direction this year in an effort to prevent exces- than in the previous year. The actual growth sively rapid, growth in money and credit. In an in M-l over the past four quarters was well environment of inflation and of heightened in- above the range of 4 to 6V2 per cent set for flationary expectations, borrowers have become this aggregate, but growth in the broader aggrewilling to pay higher rates of interest in order gates was within their ranges. To have achieved to obtain credit to finance acquisition of assets significantly lower growth rates for the monetary the values of which they anticipate will be rising aggregates than actually developed would have more rapidly than the rate of inflation. This required substantially higher market rates of phenomenon is seen most clearly in the real interest and a sharper curtailment in credit supestate market, but the behavior is common in ply, which in our judgment would have run an other sectors as well. To hold down nominal unacceptably high risk of wrenching financial rates of interest in such a circumstance is to markets so severely as to lead to an economic invite a credit-financed surge in aggregate de- recession. mand that would add further to inflationary Growth in the monetary aggregates has to be pressures. Consequently, the Federal Reserve evaluated in relation to basic economic and has pursued policies that have permitted market financial forces affecting the public's prefer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 Federal Reserve Bulletin • November 1978 ences for money in its various forms. During months. Nonetheless, with bank credit demands the past four quarters growth in nominal GNP remaining strong, banks continued to liquidate has remained very rapid as moderate expansion Treasury securities and to increase short-term in real output was accompanied by an acceler- borrowings through such instruments as large ated rate of price increase, generating a sub- certificates of deposit and Federal funds to fistantial demand for money—particularly M-l— nance these demands. to finance transactions. Federal Reserve policy At its October meeting, the Federal Open did not fully accommodate these strong de- Market Committee (FOMC) updated its longermands, and in fact, the rate of growth in real term ranges for the monetary aggregates. Its task money balances actually slowed. was complicated by new uncertainties asso- The pattern of growth in the broader aggre- ciated with the introduction on November 1 of gates has been strongly influenced by the intro- automatic transfer services (ATS), which permit duction at banks and thrift institutions in June consumers to authorize their banks to shift funds of this year of a 6-month money market certifi- from savings to demand deposit accounts as cate whose ceiling varies weekly with changes needed to cover checks written. The major imin the auction yield on 6-month Treasury bills. pact of this innovation should be on M-l, as Growth in savings and small-denomination time consumers take advantage of the opportunity to deposits subject to Federally regulated interest- reduce their holdings of non-earning demand rate ceilings had slowed markedly in the fall deposits, but the size of this effect cannot be of 1977 and in the first half of this year as higher projected with any real precision. M-2 and M-3 yields on market securities increasingly attracted will be less affected because shifts of funds from funds that would otherwise have been held in thrift institutions to banks, and also from market accounts at banks or thrift institutions. In order instruments to deposits, are likely to be comto enable these institutions to compete more paratively modest. effectively for lendable funds, the Federal Re- Against that background, the continuity in the serve and other regulatory agencies created two FOMC's objectives with respect to the monetary new deposit categories—an 8 per cent, 8-year aggregates for the 1-year period from the third certificate and the 6-month money market cer- quarter of 1978 to the third quarter of 1979 is tificate. more clearly indicated by the broader aggre- The money market certificates have proved gates, M-2 and M-3. The Committee re-estabespecially successful. They have been widely lished the ranges for these two aggregates at offered, most frequently at the ceiling rates, and 6V2 to 9 per cent and IV2 to 10 per cent, have resulted in a marked pick-up in consumer- respectively. It is expected that growth in these type deposit growth. Growth in deposits at sav- aggregates will be well within these ranges as ings and loan associations and mutual savings monetary policy pursues a course of responsible banks, which averaged 63A per cent at an annual restraint to complement the administration's rate in the first 5 months of 1978, has averaged program to combat inflation through fiscal dis- 13 per cent since the introduction of the new cipline, wage and price moderation, and reguaccounts. This growth has permitted thrift insti- latory reform. The Committee anticipates tutions to increase their commitments for mort- growth in bank credit at a rate of 8V2 to 11V2 gage loans while reducing their dependence on per cent to be associated with the ranges adopted borrowed funds and stemming the decline in for the monetary aggregates. With regard to their liquidity positions. At commercial banks, M-1, the FOMC expects growth within a range which have a rate disadvantage relative to the of 2 to 6 per cent over the period from the third thrift institutions of V* of a percentage point, quarter of 1978 to the third quarter of 1979. there has been a less marked, but still noticeable The existing range of 4 to 6V2 per cent has been gain in growth of the combined total of savings lowered because the public can be expected to and small time deposits—from 3 3A per cent shift funds to take advantage of the ATS service, through May to 6V2 per cent in the past 5 and the range has been widened because of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 847 uncertainties about the speed and extent to as a result, becoming outdated. The Federal which the public may undertake such shifts. Reserve is studying possible adjustments to Because of uncertainties about the relation- these measures to reflect the changing instituship between M-l and the transactions demand tional environment. The measure of M-l 4- repfor money during the transition to the new ATS resents an interim step in this process, while service, and in view of the widening role in a more comprehensive revision is under way. financing transactions played by savings ac- It should be noted that one consequence of these counts, the Committee also indicated a growth ongoing changes is a need for more timely and range for M-1 + (M-l plus savings accounts at broader reporting of deposit data—not only commercial banks, negotiable orders of with- from nonmember commercial banks but also drawal accounts, demand deposits at mutual from thrift institutions. savings banks, and credit union share drafts) While monetary aggregates are useful indicathat it expected to be generally consistent with tors of financial conditions, the continuing ranges of growth in the other aggregates. This change in the institutional environment and in range has been set at 5 to 1V2 per cent over public preferences for different deposits indithe 1-year period ending in the third quarter of cates that any single monetary measure, or even 1979. a set of several measures, can by no means be The structure of the domestic payments sys- the sole focus of policy. Thus, a broad range tem has been changing considerably over the of financial indicators—including nominal and past several years as a result of regulatory real interest rates, credit flows, and liquidity changes and financial innovations. Deposits in conditions—necessarily must be considered in thrift institutions have been increasingly used assessing the stance of monetary policy. for third-party payments. At banks, liquidity Looking beyond these relatively technical reserves of the public, as well as funds held questions about how best to characterize moneagainst expected transactions needs, have come tary policy, it is clear that in the present envito be held more and more outside of demand ronment we cannot rely solely on monetary accounts. On the other hand, banks and partic- management to contain inflationary pressures. ularly thrift institutions have also lengthened the It is essential to obtain public cooperation in maturity of consumer-type time deposit liabili- the administration's anti-inflationary program ties, so that some deposits have become less and to exercise restraint in fiscal policy if the money-like. And in general, distinctions among Nation is to achieve a gradual, orderly reduction depositary institutions with respect to their de- in the rate of inflation. You can be assured that posits have become increasingly blurred. Exist- monetary policy will do its part in achieving ing measures of the monetary aggregates are, that objective. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON SEPTEMBER 19, 1978 1. Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services had been growing moderately in the current quarter, but the rate of expansion appeared to be somewhat below the average annual rate of about 4 per cent estimated by the Commerce Department for the first two quarters of the year. The rise in average prices—as measured by the fixed-weight price index for gross domestic business product—slowed considerably from the exceptional pace in the second quarter, but the rise was still relatively rapid. Staff projections for the period from the current quarter through the second quarter of 1979 were little changed from those of a month earlier. They continued to suggest that output would grow moderately over the period and that the rate of inflation would be rapid, although considerably below the average pace in the first two quarters of 1978. The unemployment rate was expected to change little from its August level. In August the index of industrial production increased an estimated 0.5 per cent, close to the moderate gains in the preceding 3 months but well below the large increases in March and April. Nonfarm payroll employment rose further in August, but the gain was about half the monthly increase in the preceding 3 months. In manufacturing, employment declined somewhat and the average workweek continued to change little at a relatively high level. The unemployment rate fell 0.3 of a percentage point to 5.9 per cent, a rate slightly below the average in the first 7 months of the year. Total private housing starts edged down in July. At an annual rate of nearly 2.1 million units, however, starts were close to the pace in the second quarter of 1978 and in the second half of 1977. The latest Department of Commerce survey of business plans, taken in late July and August, suggested that spending for plant Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 849 and equipment would be 12.3 per cent greater in 1978 than in 1977, a somewhat larger increase than had been indicated 3 months earlier. Businesses spent more in the second quarter of 1978 than had been anticipated, and the latest survey still implied less expansion in spending over the second half of the year than over the first half. The dollar value of total retail sales rose in August, but the increase followed a decline now indicated for July; on balance sales had changed little since April. Unit sales of new automobiles, which had declined in July, recovered in August almost to the advanced pace of the second quarter. The index of average hourly earnings for private nonfarm production workers rose little in August following a substantial increase in July; over the first 8 months of the year the index advanced at an annual rate of about 8 per cent, somewhat more than it had during 1977. Declines in prices of food products contributed to a moderation in the rise of the consumer price index in July and to a slight reduction in average prices of producer finished goods in August; both price measures had risen at very rapid rates in the first half of the year. The trade-weighted value of the dollar against major foreign currencies, which had declined sharply in early August, subsequently recovered against a background of uncertain conditions in exchange markets. The recovery was triggered early in the intermeeting period by expressions of concern by U.S. officials, and was reinforced by subsequent increases in U.S. short-term interest rates and the announcement of expanded gold sales by the U.S. Treasury. However, the dollar weakened in late August, when it was announced that the U.S. trade deficit had increased sharply in July, and at the time of this meeting the dollar was somewhat below its level at the end of July. After a surge in July, total credit at U.S. commercial banks expanded at a substantially slower rate in August, mainly because of large declines in bank holdings of U.S. Treasury securities and in security loans. Growth in business loans accelerated further but remained well below the average rate in the first half of 1978. Outstanding commercial paper of nonfinancial businesses contracted slightly, following a sharp expansion in June and July. Growth of the narrowly defined money supply (M-l), which had Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 Federal Reserve Bulletin • November 1978 been at an average annual rate of about 5% per cent in June and July, picked up in August to a rate of about 13A per cent, roughly the same as the average in the first two quarters of the year.1 Weekly data suggested a further pick-up in September. Inflows of the interest-bearing deposits included in M-2 and M-3 also accelerated somewhat in August, reflecting primarily substantial flows of funds into large-denomination time deposits at banks and into the 6-month money market certificates at nonbank thrift institutions. As a result, growth in the broader monetary aggregates was relatively rapid. At its meeting on August 15 the Committee had decided on ranges of tolerance for the annual rates of growth in M-l and M-2 over the August-September period of 4 to 8 per cent and 6 to 10 per cent, respectively. The Committee had agreed that early in the coming inter-meeting period operations should be directed toward a Federal funds rate of around 8 per cent. 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 7% to 8V* per cent. Immediately following the August 15 meeting the Manager of the System Open Market Account began to seek bank reserve conditions consistent with an increase in the weekly-average Federal funds rate to around 8 per cent. Later in August, incoming data suggested that growth in M-l would be at the upper limit of the range specified by the Committee and that growth in M-2 would be close to the upper limit of its range. Accordingly, the Manager sought reserve conditions consistent with a further increase in the Federal funds rate to 8V4 per cent, the upper limit of the 13A to %lA per cent range specified for the inter-meeting period. In early September, available data suggested that both M-l and M-2 would grow at rates significantly above the upper limits of their respective ranges. With the Federal funds rate already at its upper limit, the Committee decided on September 8, at a telephone 1 Revised measures of the monetary aggregates, reflecting new benchmark data for deposits at nonmember banks and certain technical adjustments, were available to the Committee at the time of this meeting and were published on September 21, 1978. On the basis of these revised figures, the annual rate of growth in M-l was about 83A per cent in August and about 8 per cent on the average in the first two quarters of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 851 conference meeting, to raise the upper limit of the range for the Federal funds rate to per cent and to instruct the Manager to aim promptly for a weekly-average Federal funds rate of about 8% per cent. In the days remaining before this meeting the funds rate fluctuated around 83/s per cent. The rise in the Federal funds rate during the inter-meeting period was accompanied by appreciable increases in rates on other shortterm market instruments. Yields on long-term securities, however, generally edged down. In mid-September commercial banks raised the rate on loans to prime business borrowers from 9% to 9Vi per cent. On August 18 the Board of Governors announced an increase in Federal Reserve discount rates from llA to 73A per cent. In announcing the increase, the Board stated that the action had been taken in view of recent disorderly conditions in foreign exchange markets as well as the continuing serious domestic inflationary problem. Conditions in residential mortgage markets, which had tightened significantly during the first half of the year and then stabilized, apparently had eased somewhat in recent weeks. Interest rates on new commitments for conventional home mortgage loans at savings and loan associations edged down during the inter-meeting interval, and yields in the secondary mortgage market declined moderately. In the Committee's discussion of the economic situation and outlook, the members generally concurred with the staff's view that real output of goods and services would grow at a moderate pace over the period from the second quarter of 1978 to the second quarter of 1979. At the same time, a number of members anticipated a little less growth than the staff projected and one anticipated a little more. The observation was made that even a slight shortfall in growth of output from the rate projected by the staff implied an upward drift in the unemployment rate. All members of the Committee expected a continuation of a rapid rate of inflation over the period to the second quarter of 1979—in the view of several members, even more rapid than the pace projected by the staff. As at other recent meetings, it was observed that in 1979 pressures for large increases in wage rates would be strong. It was also noted that in the near future the administration was expected to announce a new anti-inflation program and that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 Federal Reserve Bulletin • November 1978 the way in which such a program was perceived by businessmen and consumers could have a considerable impact on attitudes and expectations. Although the members differed little in their assessments of the most likely rate of growth in output over the next few quarters, some of them called attention to elements of potential weakness or strength in the current situation that could contribute to a different outcome. One member observed, for example, that the business expansion, having endured for a long time by historical standards, was exhibiting some signs of potential weaknesses that were to be expected at this stage. On the other hand, this member also saw some indications of a pick-up in business activity in other industrial countries that might be of sufficient magnitude to raise demands for U.S. exports significantly—thereby enhancing growth in output in this country, strengthening the dollar in foreign exchange markets, and contributing generally to improvement in confidence. A second member saw little, if any, evidence of the major cyclical imbalances that characteristically developed during business expansions and brought on downturns in activity. Therefore, the expansion appeared likely to continue. However, the very high rate of inflation at present was seen as the main threat to a sustained expansion. Another member, noting that a recent survey had pointed to some deterioration in business assessments of prospects for their own companies as well as for the economy as a whole, suggested that business investment spending in 1979—especially for fixed capital, but also for inventories—could prove to be disappointing. And with respect to fiscal policy, a member observed that the Federal budget on the high employment basis had recently swung in the direction of restraint, and that the stimulative impact of the prospective reduction in Federal taxes would depend heavily on final decisions concerning both its composition and its timing. The one member who anticipated slightly faster growth than the staff projected for the period through the first half of 1979 expressed concern about certain developments that could have adverse consequences further in the future. Specifically, the current high rate of construction of commercial buildings and of apartment houses could lead to an excessive supply of such facilities and to a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 853 consequent drop in construction. At about the same time, in this member's view, a sharp cyclical downswing in credit-financed buying of certain consumer durable goods might develop. 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 SV2 to 11V2 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, considerable concern was expressed about recent rates of monetary growth. It was observed that for an extended period of time M-l had been growing at rates in excess of the longer-run range adopted by the Committee and that a slowing of growth was necessary in pursuit of the Committee's objective of resisting inflationary pressures while encouraging continued moderate economic expansion. Most members believed that some additional firming in money market conditions during the next few weeks was needed to help assure a slowing in growth of money over the months ahead, although they differed with respect to the degree of firming that they thought the Committee ought to contemplate. In this connection, the comment was made that current levels of interest rates were not exerting as much restraint on credit flows as might be supposed. Thus, it was observed, interest rates adjusted for expected rates of inflation were not high and might even be negative. Moreover, the degree of nonprice rationing of credit, particularly credit for housing, had been reduced by such structural changes in the financial system as the introduction of the 6-month money market certificates. Two members, stressing the magnitude of the increases in interest rates that had already occurred, proposed that for the time being operations be directed toward maintaining the money market conditions currently prevailing. It was argued that, in light of the recent slowing of the expansion in economic activity and of uncertainties in the economic outlook, such a "pause" would afford the Com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 Federal Reserve Bulletin • November 1978 mittee an opportunity to evaluate additional evidence on the current situation, including the effects of the recent increases in interest rates. It was observed that, historically, growth in output had never been held at about its trend rate for very long and that further increases in interest rates at this time might slow growth to a rate below trend or might even provoke an actual downturn. With respect to operating specifications for the period immediately ahead, the most frequently proposed ranges for the annual rate of growth in M-l over the September-October period were 4 to 8 per cent and 5 to 9 per cent; a narrower range of 6 to 8 per cent was also suggested. A few members proposed somewhat higher ranges—in at least one case, because the lower ranges in combination with the strong growth indicated for September implied more of a moderation of growth in October than appeared likely. One member advocated a lower range. For M-2, the most common range suggested was 6 to 10 per cent. Some members advocated somewhat higher ranges, indicating, in a few cases, a willingness to accept the continuing effects that the introduction of the 6-month money market certificate was having on expansion of time deposits at commercial banks. Most of the members favored directing open market operations toward an increase in the Federal funds rate to about 8V2 per cent shortly after this meeting. In general, these members favored an inter-meeting range of SV4 to 83A per cent, but two of them were willing to accept, and another advocated, an upper limit of 9 per cent. One member proposed directing open market operations toward an increase in the funds rate to 8% per cent early in the period and setting an inter-meeting range of SV2 to 9lA per cent. And the two members who indicated a preference for maintenance of the prevailing money market conditions suggested an intermeeting range of 8x/4 to 8^2 per cent. At the conclusion of the discussion the Committee decided that ranges of tolerance for the annual rates of growth in M-1 and M-2 over the September-October period should be 5 to 9 per cent and 6V2 to 10% per cent, respectively. With regard to the Federal funds rate, the Manager was instructed to seek a rate of around 8V2 per cent early in the period until the next regular 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 855 ranges, the objective for the funds rate was to be raised or lowered in an orderly fashion within a range of 8lA to S3A 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. 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 has grown moderately in the current quarter, although the pace is somewhat below the average for the first two quarters of the year. In August the dollar value of total retail sales rose, after having declined in July, but remained close to the level reached in April. Industrial production continued to expand at about the moderate pace of the preceding 3 months, and nonfarm payroll employment rose somewhat further. The unemployment rate declined from 6.2 to 5.9 per cent, slightly below the average rate in the first 7 months of the year. Since midyear average prices of goods and services have risen less rapidly than earlier, in large part because of declines in prices of foods. 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. After a sharp decline in early August, the trade-weighted value of the dollar against major foreign currencies has recovered against a background of uncertain conditions in exchange markets. In late August it was announced that the U.S. trade deficit had increased sharply in July. Growth in M-l picked up in August to about the average rate in the first two quarters of the year. Inflows of the interest-bearing deposits included in M-2 and M-3 also accelerated somewhat, and expansion in the broader aggregates was relatively rapid. Short-term market interest rates have risen appreciably since mid-August, but longer-term rates generally have edged down further. On August 18 an increase in Federal Reserve discount rates from llA to 73A per cent was announced. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster monetary and financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 Federal Reserve Bulletin • November 1978 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 8V2 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 8V4 to 83A 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 September-October period of M-l and M-2 and the following ranges of tolerance: 5 to 9 per cent for M-l and 6V2 to IOV2 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. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Gardner, Jackson, Partee, Mrs. Teeters, and Mr. Winn. Votes against this action: Messrs. Wallich and Willes. Messrs. Wallich and Willes dissented from this action because they favored more vigorous measures to curb the rates of growth in the monetary aggregates. They believed that such measures were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 857 essential to deal with the problem of inflation and that they could be undertaken without a significant risk of precipitating a recession. In their view, current levels of interest rates adjusted for expected rates of inflation were not high. 2. Authorization for Domestic Open Market Operations At this meeting, Committee members voted to increase from $3 billion to $4 billion the limit on changes between Committee meetings in System Account holdings of U.S. Government and Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective immediately, for the period ending with the close of business on October 17, 1978. Votes for this action: Messrs. Miller, Volcker, Baughman, Cold well, Eastburn, Gardner, Jackson, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. This action was taken on the recommendation of the Management of the System Account. The Management had advised that largescale purchases of Treasury and Federal agency securities over the coming inter-meeting interval might be needed to counter the effect on member bank reserves of a projected increase in Treasury balances at the Reserve Banks arising from corporate tax receipts in mid-September. Subsequent to this meeting, on October 10, 1978, the Committee voted to approve an additional increase of $1 billion, to $5 billion, in the limit on changes between Committee meetings in U.S. Government and Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective immediately, for the period ending with the close of business on October 17, 1978. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Gardner, Jackson, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. This action was taken on recommendation of the Management of the System Account. The Management had advised that, even Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 Federal Reserve Bulletin • November 1978 though the Committee had voted at its September 19 meeting to raise the limit from $3 billion to $4 billion, large-scale purchases of Treasury and Federal agency securities had reduced the leeway for further purchases during the inter-meeting period to about $335 million. It now appeared likely that additional purchases would be required as currency in circulation and other factors were absorbing reserves while Treasury balances continued at a high level, in part because of purchases of special Treasury securities by foreign central banks in association with their recent intervention in the foreign exchange markets. 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

Law Department Statutes, regulations, interpretations, and decisions SECURITIES OF STATE MEMBER BANKS (k) PROPOSALS OF SECURITY HOLDERS. (1) If any security holder of an issuer notifies the The Board of Governors has amended its Regumanagement of the issuer of his intention to prelation F consistent with recent amendments to sent a proposal for action at a forthcoming meeting comparable regulations of the Securities and Exof the issuer's security holders, the management change Commission, concerning (a) confidential shall set forth the proposal in its proxy statement treatment for preliminary proxy and information and identify it in its form of proxy and provide statements, (b) proposals by security holders, (c) means by which security holders can make the dissemination of proxy material to beneficial specification required by § 206.5(d)(2). If manowners of registered securities, (d) tender offer agement issues an information statement pursuant statements, (e) consolidation and technical revito paragraph (a) of this section, it shall identify sions of several items included in current, quarthe proposal and indicate the disposition proposed terly, and annual reports, and (f) stock apprecito be made of the proposal by the management ation rights. at the meeting. Management, however, need not Section 206.5(f)(5) is amended to read as fol- include a proposal in its information statement if lows: such proposal is submitted less than 60 days in (f) * * * advance of a day corresponding to the date of mailing a proxy statement or information statement (5) All copies of material filed pursuant to in connection with the last annual meeting of paragraph (1) or (2) of this section shall be clearly security holders. Notwithstanding the foregoing, marked 4'Preliminary Copies" and shall be for the the management shall not be required to include information of the Board only and shall not be the proposal in its proxy statement or form of deemed available for public inspection before de- proxy unless the security holder (hereinafter, the finitive material has been filed with the Board "proponent") has complied with the requirements except that such material may be disclosed to any of this paragraph and paragraphs (k) (2) and (3) department or agency of the United States Gov- of this section: ernment and to the Congress and the Board may (i) Eligibility. At the time he submits the promake such inquiries or investigation in regard to posal, the proponent shall be a record or beneficial the material as may be necessary for an adequate owner of a security entitled to be voted at the review thereof by the Board. All material filed meeting on his proposal, and he shall continue to pursuant to paragraph (f) (1), (2), or (3) of this own such security through the date on which the section shall be accompanied by a statement of meeting is held. If the management requests docthe date on which definitive material filed pursuant umentary support for a proponent's claim that he to paragraph (f)(3) of this section is intended to is a beneficial owner of a voting security of the be, or has been, released to security holders. All issuer, the proponent shall furnish appropriate material filed pursuant to paragraph (f)(4) of this documentation within 10 business days after resection shall be accompanied by a statement of ceiving the request. In the event the management the date on which copies thereof are intended to includes the proponent's proposal in its proxy be released to the individuals who will make the soliciting materials for the meeting and the propoactual solicitation. nent fails to comply with the requirement that he Section 206.5(k) is amended to read as follows: continuously be a voting security holder through the meeting date, the management shall not be required to include any proposal submitted by the * * * ** Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 Federal Reserve Bulletin • November 1978 proponent in its proxy soliciting materials for any comply with either of these requirements, or if meeting held in the following two calendar years. he fails to comply with the 200-word limit on (ii) Notice. The proponent shall notify the supporting statements mentioned in paragraph management in writing of his intention to appear (k)(2) of this section, he shall be provided the personally at the meeting to present his proposal opportunity by the management to reduce, within for action. The proponent shall furnish the requi- 10 business days, the items submitted by him to site notice at the time he submits the proposal, the limits required by this rule. except that if he was unaware of the notice re- (2) If the management opposes any proposal quirement at that time he shall comply with it received from a proponent, it shall also, at the within 10 business days after being informed of request of the proponent, include in its proxy it by the management. If the proponent, after statement a statement of the proponent of not more furnishing in good faith the notice required by this than 200 words in support of the proposal, which provision, subsequently determines that he will be statement shall not include the name and address unable to appear personally at the meeting, he shall of the proponent. The statement and request of arrange to have another security holder of the the proponent shall be furnished to the manageissuer present his proposal on his behalf at the ment at the time that the proposal is furnished, meeting. In the event the proponent or his proxy and neither the management nor the issuer shall fails, without good cause, to present the proposal be responsible for such statement. The proxy for action at the meeting, the management shall statement shall also include either the name and not be required to include any proposals submitted address of the proponent or a Statement that such by the proponent in its proxy soliciting materials information will be furnished by the issuer or by for any meeting held in the following two calendar the Board to any person, orally or in writing as years. requested, promptly upon the receipt of any oral (iii) Timeliness. The proponent shall submit his or written request therefor. If the name and address proposal sufficiently far in advance of the meeting of the proponent are omitted from the proxy stateso that it is received by the management within ment, they shall be furnished to the Board at the the following time periods: time of filing the management's preliminary proxy (A) Annual meetings. A proposal to be pre- material pursuant to § 206.5(f)(1). sented at an annual meeting shall be received by (3) The management may omit a proposal and the management at the issuer's principal executive any statement in support thereof from its proxy offices not less than 90 days in advance of a date statement and form of proxy under any of the corresponding to the date set forth on the manage- following circumstances: ment's proxy statement released to security holders (i) If the proposal is, under the laws of the in connection with the previous year's annual issuer's domicile, not a proper subject for action meeting of security holders, except that no annual by security holders; meeting was held in the previous year or the date of the annual meeting has been changed by more NOTE.—A proposal that may be improper under the applicable State law when framed as a mandate or than 30 calendar days from the date of the previous directive may be proper when framed as a recomyear's annual meeting a proposal shall be received mendation or request. by the management a reasonable time before the (ii) If the proposal would, if implemented, resolicitation is made. quire the issuer to violate any State law or Federal (B) Other meetings. A proposal to be presented law of the United States, or any law of any foreign at any meeting other than an annual meeting shall jurisdiction, to which the issuer is subject, except be received at a reasonable time before the solicithat this provision shall not apply with respect to tation is made. any foreign law compliance with which would be NOTE.—In order to curtail controversy as to the date violative of any State law or Federal law of the on which a proposal was received by the management, United States; it is suggested that proponents submit their proposals (iii) If the proposal or the supporting statement by Certified Mail-Return Receipt Requested. is contrary to any of the Board's proxy rules and (iv) Number and length of proposals. The pro- regulations, including § 206.5(h) which prohibits ponent may submit a maximum of two proposals false or misleading statements in proxy soliciting of not more than 300 words each for inclusions materials; in the management's proxy materials for a meeting (iv) If the proposal relates to the enforcement of security holders. If the proponent fails to of a personal claim or the redress of a personal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 861 grievance against the issuer, its management, or (i) The proposal; (ii) any statement in support any other person; thereof as received from the proponent; (iii) a (v) If the proposal deals with a matter that is statement of the reasons why the management not significantly related to the issuer's business; deems such omission to be proper in the particular (vi) If the proposal deals with a matter that is case; and (iv) where such reasons are based on beyond the issuer's power to effectuate; matters of law, a supporting opinion of counsel. (vii) If the proposal deals with a matter relating The management shall at the same time, if it has to the conduct of the ordinary business operations not already done so, notify the proponent of its of the issuer; intention to omit the proposal from its proxy (viii) If the proposal relates to an election to statement and form of proxy and shall forward to office; him a copy of the statement of reasons why the (ix) If the proposal is counter to a proposal to management deems the omission of the proposal be submitted by the management at the meeting; to be proper and a copy of such supporting opinion (x) If the proposal has been rendered moot; of counsel. (xi) If the proposal is substantially duplicative Section 206.5(c)(3) is amended to read as folof a proposal previously submitted to the manage- lows: ment by another proponent, which proposal will (c) * * * be included in the management's proxy materials for the meeting; (3) If the bank knows that securities of any class entitled to vote at a meeting with respect to which (xii) If substantially the same proposal has prethe bank intends to solicit proxies, consents or viously been submitted to security holders in the authorizations are held of record by a broker, management's proxy statement and form of proxy dealer, bank, or voting trustee, or their nominees, relating to any annual or special meeting of secuthe bank shall inquire of such record holder at least rity holders held within the preceding five calendar 10 days prior to the record date for the meeting years, it may be omitted from the management's of security holders (or at such later time as the proxy materials relating to any meeting of security rules of a national securities exchange on which holders held within three calendar years after the the class of securities in question is listed may latest such previous submission; Provided, That— permit for good cause shown), whether other per- (A) If the proposal was submitted at only one sons are the beneficial owners of such securities meeting during such preceding period, it received and, if so, the number of copies of the proxy and less than 3 per cent of the total number of votes other soliciting material and, in the case of an cast in regard thereto; or annual meeting at which directors are to be (B) If the proposal was submitted at only two elected, the number of copies of the annual report meetings during such preceding period, it received to security holders, necessary to supply such maat the time of its second submission less than 6 terial to beneficial owners. The bank shall supply per cent of the total number of votes cast in regard such record holder in a timely manner with addithereto; or tional copies in such quantities assembled in such (C) If the proposal was submitted at three or form and at such a place, as the record holder more meetings during such preceding period, it may reasonably request in order to address and received at the time of its latest submission less send one copy of each to each beneficial owner than 10 per cent of the total number of votes cast of securities so held and shall, upon the request in regard thereto; and of such record holder, pay its reasonable expenses (xiii) If the proposal relates to specific amounts for completing the mailing of such material to of cash or stock dividends. security holders to whom the material is sent. (4) Whenever the management asserts, for any Section 206.5(c)(4) is amended to read as folreason, that a proposal and any statement in suplows: port thereof received from a proponent may properly be omitted from its proxy statement and form (c) ^ ^ of proxy, it shall file with the Board, not later than 50 days prior to the date the preliminary (4) If the bank's list of security holders indicopies of the proxy statement and form of proxy cates that some of its securities are registered in are filed pursuant to § 206.5(f)(1), or such shorter the name of a clearing agency registered pursuant period prior to such date as the Board or its staff to section 17A of the Act, a bank shall make may permit, five copies of the following items: appropriate inquiry of the agency and thereafter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 Federal Reserve Bulletin • November 1978 of the participants in such agency who may hold on behalf of a beneficial owner, and shall comply with § 206.5(c)(3) with respect to any such parti- (7) Ten copies of the statement required by cipant. paragraph (1), every amendment to such statement Sections 206.5(1) (1), (3)(iv), (4), and (7) are and all other material required by this rule and amended to read as follows: such statement shall be filed with the Board. (1) INVITATIONS FOR TENDERS. (1) No person, directly or indirectly, by use of the mails or any means or instrumentality of inter-State commerce or of any facility of a national securities Form F-ll (12 CFR 206.47) is amended by exchange or otherwise, shall make a tender offer deleting the words 44or § 206.5(1)" from the title for, or a request or invitation for tenders of, any of that form and deleting all of Item 7 and substiclass of any equity security which is registered tuting the words, 4'Item 7" for "Item 8", and pursuant to section 12 of the Act of any member Form F-13 (12 CFR 206.54) is adopted to read State bank, if, after consummation thereof, such as follows: person would, directly or indirectly, be the beneficial owner of more than 5 per centum of such BOARD OF GOVERNORS class, unless, at the time copies of the offer or OF THE FEDERAL RESERVE SYSTEM request or invitation are first published or sent or FORM F-13 given to security holders, such person has filed with the Board a statement containing the infor- Tender offer statement pursuant to section mation and exhibits required by Form F-13. 14(d)(1) of the Securities Exchange Act of 1934, (Amendment No. ), (Name of Subject Bank), (Bidder), (Title of Class of Securities), (3) * * * (Name, address and telephone number of person authorized to receive (iv) The information required by Items 1(c), notices and communications on behalf of bidder). 2(b), 2(e), 2(f), and 2(g), 3, 4, 5, 6, 7, 8, 9, Instructions. 1. Eight copies of this statement, and 10 of Form F-13 or a fair and adequate including all exhibits, and two additional copies summary thereof. of this statement, including only the exhibits de- Instructions. 1. Negative responses to any such scribed in Item 11(a) of this statement, should be item or subitem of Form F-13 need not be included filed with the Board. in the information published or sent or given to 2. No fee is required to be paid to the Board security holders. in connection with the filing of the initial statement 2. If the information required by Item 9 of Form or amendments thereto. F-13 is summarized, appropriate instructions General Instructions. A. The item numbers and should be included stating how more complete captions of the items shall be included but the financial information can be obtained. answers to the items shall be so prepared as to (4) Any additional material soliciting or re- indicate clearly the coverage of the items without questing such tender offer subsequent to the initial referring to the text of the items. Answer every solicitation or request shall contain the name of item. If an item is inapplicable or the answer is the persons making such solicitation or request and in the negative, so state. the information required by Items 1(c), 2(b), 2(e), B. Information contained in exhibits to the 2(f) and 2(g), 3, 4, 5, 6, 7, 8, 9, and 10 of Form statement may be incorporated by reference in F-13, or a fair and adequate summary thereof; answer or partial answer to any item or sub-item Provided, however, That such material may omit of the statement unless it would render such anany of such information previously furnished to swer incomplete, unclear or confusing. Matter the persons solicited or requested for tender offers. incorporated by reference shall be clearly identi- Copies of such additional material soliciting or fied in the reference by page, paragraph, caption requesting such tender offers shall be filed with or otherwise. An express statement that the specithe Board not later than the time copies of such fied matter is incorporated by reference shall be material are first published or sent or given to made at the particular place in the statement where security holders. the information is required. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 863 C. If the statement is filed by a partnership, whose securities are sought by a bidder pursuant limited partnership, syndicate or other group, the to a tender offer. information called for by Items 2-7, inclusive, Item 1. Security and subject bank, (a) State the shall be given with respect to: (i) Each partner name of the subject bank and the address of its of such partnership; (ii) each partner who is denom- principal executive offices; inated as a general partner or who functions as (b) State the exact title and the number of shares a general partner of such limited partnership; (iii) outstanding of the class of equity securities being each member of such syndicate or group; and (iv) sought (which may be based upon information each person controlling such partner or member. contained in the most recently available filing with If the statement is filed by a corporation, or if the Board by the subject bank unless the bidder a person referred to in (i), (ii), (iii) or (iv) of this has reason to believe such information is not Instruction is a corporation, the information called current), the exact amount of such securities being for by the above mentioned items shall be given sought and the consideration being offered therewith respect to: (a) Each executive officer and for; and director of such corporation; (b) each person con- (c) Identify the principal market, if any, in trolling such corporation; and (c) each executive which such securities are traded and state the high officer and director of any corporation ultimately and low sales prices for such securities in such in control of such corporation. Executive officer principal market (or, in the absence thereof, the shall mean the president, secretary, treasurer and range of high and low bid quotations) for each any vice president in charge of a principal business quarterly period during the past two years. function (such as sales, administration or finance) Item 2. Identity and background. If the person and any other person who performs similar policy- filing this statement or any person enumerated in making functions for the corporation. A response Instruction C of this statement is a corporation, to an item in the statement is required with respect partnership, limited partnership, syndicate or other to the bidder and to all other persons referred to group of persons, state its name, the State or other in this instruction unless such item specifies to the place of its organization, its principal business, contrary. the address of its principal office and the informa- D. Upon termination of the tender offer, the tion required by (e) and (f) of this Item. If the bidder shall promptly file a final amendment to person filing this statement or any person enu- Form F-13 disclosing all material changes in the merated in Instruction C is a natural person, proitems of that Form and stating that the tender offer vide the information specified in (a) through (g) has terminated, the date of such termination and of this Item with respect to such person(s). the results of such tender offer. (a) Name; E. If the bidder, before filing this statement, (b) Residence or business address; has filed a Form F-11 with respect to the acquisi- (c) Present principal occupation or employment tion of securities of the same class referred to in and the name, principal business and address of Item 1(a) of this statement, the bidder shall amend any corporation or other organization in which such Form F-ll and may do so by means of this such employment or occupation is conducted; statement and amendments thereto, including the (d) Material occupations, positions, offices or final amendment required to be filed by Instruction employments during the last five years, giving the D: Provided, That the bidder indicates on the cover starting and ending dates of each and the name, sheet of this statement that it is amending its Form principal business and address of any business F-ll by means of this statement. corporation or other organization in which such F. The Final amendment required to be filed occupation, position, office or employment was by Instruction D shall be deemed to satisfy the carried on. Instruction. If a person has held various reporting requirements of section 13(d) of the Act positions with the same organization, or if a person with respect to all securities acquired by the bidder holds comparable positions with multiple related pursuant to the tender offer as reported in such organizations, each and every position need not final amendment. be specifically disclosed. G. For purposes of this statement, the following (e) Whether or not, during the last five years, definitions shall apply: such person has been convicted in a criminal (i) The term "bidder" means any person on proceeding (excluding traffic violations or similar whose behalf a tender offer is made; and misdemeanors) and, if so, give the dates, nature (ii) The term "subject bank" means any bank of conviction, name and location of court, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

864 Federal Reserve Bulletin • November 1978 penalty imposed or other disposition of the case. schedule between the bidder or its subsidiaries Instruction. While a negative answer to this sub- (including those persons enumerated in Instruction item is required in this schedule, it need not be C of this schedule) and the subject bank or its furnished to security holders. affiliates or any shareholder owning more than 10 (f) Whether or not, during the last five years, per cent of the outstanding shares of the subject such person was a party to a civil proceeding of bank concerning: a merger, consolidation or aca judicial or administrative body of competent quisition; a tender offer or other acquisition of jurisdiction and as a result of such proceeding was securities; an election of directors; or a sale or or is subject to a judgment, decree or final order other transfer of a material amount of assets. enjoining future violations of, or prohibiting ac- Item 4. Source and amount of funds or other tivities subject to, Federal or State securities or consideration, (a) State the source and the total banking laws or finding any violation of such laws; amount of funds or other consideration for the and, if so, identify and describe such proceeding purchase of the maximum number of securities for and summarize the terms of such judgment, decree which the tender offer is being made. or final order. Instruction. While a negative answer (b) If all or any part of such funds or other to this sub-item is required in this schedule, it need consideration are or are expected to be, directly not be furnished to security holders. or indirectly, borrowed for the purpose of the (g) Citizenship(s). tender offer: Item 3. Past contacts, transactions or negotia- (1) Provide a summary of each loan agreement tions with the subject bank, (a) Briefly state the or arrangement containing the identity of the parnature and approximate amount (in dollars) of any ties, the term, the collateral^ the stated and effectransaction, other than those described in Item 3(b) tive interest rates, and other material terms or of this Form and those in the ordinary course of conditions relative to such loan agreement; and the bank's business, which has occurred since the (2) Briefly describe any plans or arrangements commencement of the subject bank's third full to finance or repay such borrowings, or if no such fiscal year preceding the date of this schedule, plans or arrangements have been made, make a between the person filing this schedule (including statement to that effect. those persons enumerated in Instruction C of this (c) If the source of all or any part of the funds schedule) and: to be used in the tender offer is a loan made in (1) The subject bank or any of its affiliates the ordinary course of business by a bank as which are corporations: Provided, however, That defined by section 3(a)(6) of the Act, the name no disclosure need be made with respect to any of such bank shall not be made available to the transaction if the aggregate amount involved in public if the person filing the statement so requests such transaction was less than 1 per cent of the in writing and files such request, naming such subject bank's consolidated income (which may bank, with the Secretary of the Board. be based upon information contained in the most (d) If the source of all or any part of the funds recently available filing with the Board by the to be used in the tender offer is a loan made by subject bank, unless the bidder has reason to a bank as defined by section 3(a)(6) of the Act, believe otherwise) (i) for the fiscal year in which indicate whether there exists any agreement, arsuch transaction occurred or, (ii) for the portion rangement, or understanding pursuant to which the of the current fiscal year which has occurred, if subject bank maintains or would maintain a correthe transaction occurred in such year; and spondent deposit account at such lending bank. (2) The executive officers, directors or affiliates Item 5. Purpose of the tender offer and plans of the subject bank which are not corporations if or proposals of the bidder. State the purpose or the aggregate amount involved in such transaction purposes of the tender offer for the subject bank's or in a series of similar transactions, including all securities. Describe any plans or proposals which periodic installments in the case of any lease or relate to or would result in: other agreement providing for periodic payments (a) An extraordinary corporate transaction, or installments, exceeds $40,000. such as a merger, reorganization or liquidation, (b) Describe any contacts, negotiations or involving the subject bank or any of its subsiditransactions, other than those in the ordinary aries; course of the bank's business which have occurred (b) A sale or transfer or a material amount of since the commencement of the subject bank's assets of the subject bank or any of its subsidiaries; third full fiscal year preceding the date of this (c) Any change in the present board of directors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 865 or management of the subject bank including, but instruction is provided for the purpose of mainnot limited to, any plans or proposals to change taining the confidentiality of the tender offer in the number or the term of directors or to fill any order to avoid possible misuse of inside informaexisting vacancies on the board; tion. (d) Any material change in the present capitali- Item 7. Contracts, arrangements, understandzation or dividend policy of the subject bank; ings or relationships with respect to the subject (e) Any other material change in the subject bank's securities. Describe any contract, arrangebank's corporate structure or business; ment, understanding or relationship (whether or (f) Causing a class of securities of the subject not legally enforceable) between the bidder (inbank to be delisted from a national securities cluding those persons enumerated in Instruction exchange or to cease to be authorized to be quoted C to this schedule) and any person with respect in an inter-dealer quotation system of a registered to any securities of the subject bank (including, national securities association; or but not limited to, any contract, arrangement, (g) A class of equity securities of the subject understanding or relationship concerning the bank becoming eligible for termination of regis- transfer or the voting of any of such securities, tration pursuant to section 12(g)(4) of the Act. joint ventures, loan or option arrangements, puts Item 6. Interest in securities of the subject bank, or calls, guarantees of loans, guarantees against (a) State the aggregate number and percentage of loss, or the giving or withholding of proxies), the class represented by such shares (which may naming the persons with whom such contracts, be based on the number of shares outstanding as arrangements, understandings or relationships contained in the most recently available filing with have been entered into and giving the material the Board by the subject bank unless the bidder provisions thereof. Include such information for has reason to believe such information is not any of such securities that are pledged or otherwise current), beneficially owned (identifying those subject to contingency, the occurrence of which shares for which there is a right to acquire) by would give another person the power to direct the each person named in Item 2 of this schedule and voting or disposition of such securities, except that by each associate and majority-owned subsidiary disclosure of standard default and similar proviof such person giving the name and address of sions contained in loan agreements need not be any such associate or subsidiary. included. (b) Describe any transaction in the class of Item 8. Persons retained, employed or to be securities reported on that was effected during the compensated. Identify all persons and classes of past 60 days by the persons named in response persons employed, retained or to be compensated to paragraph (a) of this Item or by any executive by the bidder, or by any person on the bidder's officer, director or subsidiary of such person. behalf, to make solicitations or recommendations Instructions. 1. The description of a transaction in connection with the tender offer and describe required by Item 6(b) shall include, but not neces- briefly the terms of such employment, retainer or sarily be limited to: (1) The identity of the person arrangement for compensation. covered by Item 6(b) who effected the transaction; Item 9. Financial statements of certain bidders. (2) the date of the transaction; (3) the amount of Where the bidder is other than a natural person securities involved; (4) the price per share; and and the bidder's financial condition is material to (5) where and how the transaction was effected. a decision by a security holder of the subject 2. If the information required by Item 6(b) of company whether to sell, tender or hold securities this schedule is available to the bidder at the time being sought in the tender offer, furnish current, this statement is initially filed with the Board, such adequate financial information concerning the bidinformation should be included in such initial der Provided, That if the bidder is controlled by filing. However, if such information is not avail- another entity which is not a natural person and able to the bidder at the time of such initial filing, has been formed for the purpose of making the it should be filed with the Board promptly but in tender offer, furnish current, adequate financial no event later than two business days after the information concerning such parent. date of such filing and, if material, should be Instructions. 1. The facts and circumstances disclosed to security holders of the subject bank concerning the tender offer, particularly the terms in a manner similar to that in which the tender of the tender offer, may influence a determination offer was first published, sent or given to such as to whether disclosure of financial information security holders. The procedure specified by this is material. However, once the materiality re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

866 Federal Reserve Bulletin • November 1978 quirement is applicable, the adequacy of the fi- proceeding should be promptly furnished to the nancial information will depend primarily on the Board on a supplemental basis. nature of the bidder. (f) Such additional material information, if any, In order to provide guidance in making this as may be necessary to make the required statedetermination, the following types of financial ments, in light of the circumstances under which information will be deemed adequate for purposes they are made, not materially misleading. of this item for the type of bidder specified: (a) Item 11. Material to be Filed as Exhibits. Fur- Financial statements prepared in compliance with nish a copy of: (a) Tender offer material which Form 10 of the Securities and Exchange Commis- is published, sent or given to security holders by sion (17 CFR 249.210) for a domestic bidder or on behalf of the bidder in connection with the which is otherwise eligible to use such form; and tender offer; (b) financial statements prepared in compliance (b) Any loan agreement referred to in Item 4 with Form 20 of the Securities and Exchange of this schedule. Instruction. The identity of any Commission (17 CFR 249.220) for a foreign bid- bank, other than the subject bank, which is a party der which is otherwise eligible to use such form. to a loan agreement need not be disclosed if the 2. The financial statements required by this item person filing the statement has requested that the need not be audited if such audited financial state- identity of such bank not be made available to ments are not available or obtainable without un- the public pursuant to Item 4 of this schedule; reasonable cost or expense and a statement is made (c) Any document setting forth the terms of any to that effect disclosing the reasons therefor. contracts, arrangements, understandings or rela- Item 10. Additional information. If material to tionships referred to in Item 7 or 10(a) of this a decision by a security holder whether to sell, schedule; tender or hold securities being sought in the tender (d) Any written opinion prepared by legal offer, furnish information as to the following: counsel at the bidder's request and communicated (a) Any present or proposed material contracts, to the bidder pertaining to the tax consequences arrangements, understandings or relationships be- of the tender offer; tween the bidder or any of its executive officers, (e) In an exchange offer where securities of the directors, controlling persons or subsidiaries and bidder have been or are to be registered under the the subject bank or any of its executive officers, Securities Act of 1933, the prospectus containing directors, controlling persons or subsidiaries (other the information required to be included therein by than any contract, arrangement or understanding Rule 434b of the Securities and Exchange Comrequired to be disclosed pursuant to Items 3 or mission (17 CFR 230.434b); 7 of this schedule); (f) If any oral solicitation of security holders (b) To the extent known by the bidder after is to be made by or on behalf of the bidder, any reasonable investigation, the applicable regulatory written instruction, form or other material which requirements which must be complied with or is furnished to the persons making the actual oral approvals which must be obtained in connection solicitation for their use, directly or indirectly, in with the tender offer; connection with the tender offer. (c) The applicability of antitrust laws; Signature. After due inquiry and to the best of (d) The applicability of the margin require- my knowledge and belief, I certify that the informents of section 7 of the Act and the regulations mation set forth in this statement is true, complete promulgated thereunder; and correct. (e) Any material pending legal proceedings re- Signature lating to the tender offer including the name and Name and title location of the court or agency in which the Date proceedings are pending, the date instituted, the The original statement shall be signed by each principal parties thereto and a brief summary of person on whose behalf the statement is filed or the proceedings; and his authorized representative. If the statement is Instruction. In connection with this sub-item, signed on behalf of a person by his authorized a copy of any document relating to a major devel- representative (other than an executive officer or opment (such as pleadings, an answer, complaint, general partner of the bidder), evidence of the temporary restraining order, injunction, opinion, representative's authority to sign on behalf of such judgment or order) in a material pending legal person shall be filed with the statement. The name Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 867 and any title of each person who signs the state- this form need not be made. The term 4'previously ment shall be typed or printed beneath his signa- reported" is defined in § 206.2(v) of Regulation ture. F (12 CFR 206.2(v)). C. Application of Regulation F.—(a) Regula- Section 206.4(h)(1) of Regulation F is amended tion F (12 CFR Part 206) contains certain general to read as follows: requirements which are applicable to reports on (h) * * * any form. These general requirements should be (1) Every registrant bank shall file a current carefully read and observed in the preparation and report in conformity with the requirements of Form filing of reports on this form. F-3 within the period specified in that form unless (b) Particular attention is directed to § 206.4 of substantially the same information as that required Regulation F (12 CFR 206.4) which contains genby Form F-3 has been previously reported by the eral requirements regarding matters such as the bank. kind and size of paper to be used, the legibility Section 206.43 is amended to read as follows: of the report, the information to be given whenever the title of securities is required to be stated, and SECTION 206.43—FORM FOR CURRENT the filing of the Report. The definitions contained REPORT OF A BANK (FORM F-3). in § 206.2 should be especially noted. BOARD OF GOVERNORS D. Preparation of Report. This form is not to OF THE FEDERAL RESERVE SYSTEM be used as a blank form to be filled in, but only as a guide in the preparation of the report on paper FORM F-3 meeting the requirements of § 206.4(t) of Regula- Current Report tion F (12 CFR 206.4(t)). The report shall contain the numbers and captions of all applicable items, Pursuant to section 13 of the Securities Exbut the text of such items may be omitted, prochange Act of 1934. For the month of vided the answers thereto are prepared in the , 19 manner specified in § 206.4(u) of Regulation F (12 CFR 206.4(u)). All items which are not required (Exact name of bank as specified in charter) to be answered in the particular report may be omitted and no reference thereto need be made in the report. All instructions should also be omit- (Address of principal office) ted. E. Signature and filing of report.—Three com- GENERAL INSTRUCTIONS plete copies of the report, including any financial A. Rule as to Use of Form F-3.—Form F-3 shall statements, exhibits of other papers or documents be used for current reports under Section 13 of filed as a part thereof, and five additional copies the Securities Exchange Act of 1934, filed pur- which need not include exhibits, shall be filed with suant to § 206.4(h) of Regulation F (12 CFR the Board. At least one complete copy of the 206.4(h)). report, including any financial statements, exhibits B. Events to be Reported and Filing of Re- or other papers or documents filed as a part thereof, ports.—A report on this form is required to be shall be filed with each exchange on which any filed upon the occurrence of any one or more of class of securities of the bank is registered. At the events specified in the items of this form. least one complete copy of the report filed with Reports are to be filed within 15 days after the the Board and one such copy filed with an exoccurrence of the earliest event required to be change shall be manually signed. Copies not manreported. However, reports which disclose events ually signed shall bear typed or printed signatures. pursuant to Item 5 may be filed within 10 days after the close of the month during which the event INFORMATION TO BE INCLUDED IN THE REPORT occurred. If the letter from the independent ac- ITEM 1. CHANGES IN CONTROL OF BANK countants to be furnished pursuant to Item 4(d) is unavailable at the time of filing. It shall be filed (a) If, to the knowledge of management, a within thirty days thereafter. Moreover, if sub- change in control of the Bank has occurred, state stantially the same information as that required by the name of the person(s) who acquired such this form has been previously reported by the control; the amount and the source of the considbank, an additional report of the information on eration used by such person(s); the basis of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

868 Federal Reserve Bulletin • November 1978 control; the date and a description of the transac- in determining the amount of such consideration, tion^) which resulted in the change in control; the identity of the person(s) from whom the assets the percentage of voting securities of the bank now were acquired or to whom they were sold and the beneficially owned directly or indirectly by the nature of any material relationship between such person(s) who acquired control; and the identity person(s) and the registrant or any of its affiliates, of the person(s) from whom control was assumed. any director or officer of the registrant, or any If the source of all or any part of the consideration associate of any such director or officer. used is a loan made in the ordinary course of (b) If any assets so acquired by the registrant business by a bank as defined by Section 3(a)(6) or its subsidiaries constituted plant, equipment or of the Act, the identity of such bank shall be other physical property, state the nature of the omitted provided a request for confidentiality has business in which the assets were used by the been made pursuant to Section 13(d)(1)(B) of the person(s) from whom acquired and whether the Act by the person(s) who acquired control. In lieu bank intends to continue such use or intends to thereof, the material shall indicate that disclosure devote the assets to other purposes, indicating such of the identity of the bank has been so omitted other purposes. and filed separately with the Board. Instructions. 1. No information need be given Instructions. 1. State the terms of any loans or as to (i) any transaction between any person and pledges obtained by the new control group for the any wholly-owned subsidiary of such person; (ii) purpose of acquiring control, and the names of any transaction between two or more whollythe lenders or pledgees. owned subsidiaries of any person; or (iii) the 2. Any arrangements or understandings among redemption or other acquisition of securities from members of both the former and new control the public, or the sale or other disposition of groups and their associates with respect to the securities to the public, by the issuer of such election of directors or other matters shall be securities. described. 2. The term "acquisition" includes every pur- (b) Describe any contractual arrangements, in- chase, acquisition by lease, exchange, merger cluding any pledge of securities of the Bank, or consolidation, succession or other acquisition; any of its parents, known to management, the provided, that such term does not include the operation of the terms of which may at a subse- construction or development of property by or for quent date result in a change in control of the bank. the bank or its subsidiaries or the acquisition of Instruction. Paragraph (b) does not require a materials for such purpose. The term ''disposidescription of ordinary default provisions con- tion' ' includes every sale, disposition by lease, tained in the charter, trust indentures or other exchange, merger, consolidation, mortgage, or governing instruments relating to securities of the hypothecation of assets, assignment, whether for bank. the benefit of creditors or otherwise, abandonment, (c) If the source of all or any part of the funds destruction, or other disposition. used to acquire control of the bank is a loan made 3. The information called for by this item is by a bank as defined in section 3(a)(6) of the Act, to be given as to each transaction or series of indicate whether there exists any agreement, ar- related transactions of the size indicated. The rangement, or understanding pursuant to which the acquisition or disposition of securities shall be registrant bank maintains or would maintain a deemed the indirect acquisition or disposition of correspondent deposit account at such lending the assets represented by such securities if it results bank. in the acquisition or disposition of control for such assets. ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS 4. An acquisition or disposition shall be deemed to involve a significant amount of assets If the bank or any of its majority-owned subsid- (i) if the bank's and its other subsidiaries' equity iaries has acquired or disposed of a significant in the net book value of such assets or the amount amount of assets, otherwise than in the ordinary paid or received therefor upon such acquisition or course of business, furnish the following informadisposition exceeded 10 per cent of the total equity tion: capital of the bank and its consolidated subsidi- (a) The date and manner of the acquisition or aries, (ii) if it involved the succession to or dispodisposition and a brief description of the assets sition of a business which would meet the test of involved, the nature and amount of consideration a significant subsidiary, or (iii) if it involved the given or received therefor, the principle followed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 869 acquisition or disposition of an interest in a busi- (a) State the date of such resignation (or decliness which would meet the test of a significant nation to stand for re-election), dismissal or ensubsidiary and would be required to be accounted gagement. for by the equity method. (b) State whether in connection with the audits 5. Where assets are acquired or disposed of of the two most recent fiscal years and any subsethrough the acquisition or disposition of control quent interim period preceding such resignation, of a person, the person from whom such control dismissal or engagement there were any diswas acquired or to whom it was disposed of shall agreements with the former accountant on any be deemed the person from whom the assets were matter of accounting principles or practices, fiacquired or to whom they were disposed of, for nancial statement disclosure or auditing scope or the purposes of this item. Where such control was procedure, which disagreements if not resolved to acquired from or disposed of to not more than five the satisfaction of the former accountant would persons, their names shall be given; otherwise it have caused him to make reference in connection will suffice to identify in an appropriate manner with his report to the subject matter of the disthe class of such persons. agreements); also, describe each such dis- 6. Attention is directed to the requirements in agreement. The disagreements required to be re- Item 6 of the form with respect to the filing of ported in response to the preceding sentence infinancial statements for businesses acquired and to clude both those resolved to the former accounthe filing of copies of the plans of acquisition or tant's satisfaction and those not resolved to the disposition as exhibits to the report. former accountant's satisfaction. Disagreements contemplated by this rule are those which occur ITEM 3. BANKRUPTCY OR RECEIVERSHIP at the decisionmaking level; i.e., between personnel of the bank responsible for presentation of its If a receiver, fiscal agent or similar officer has financial statements and personnel of the accountbeen appointed for a bank or its parent, in a ing firm responsible for rendering its report. proceeding under the Bankruptcy Act or in any other proceeding under State or Federal law in (c) State whether the principal accountant's rewhich a court or governmental agency has as- port on the financial statements for any of the past sumed jurisdiction over substantially all of the two years contained an adverse opinion or a disassets or business of the Bank or its parent, or claimer of opinion or was qualified as to uncerif such jurisdiction has been assumed by leaving tainty, audit scope, or accounting principles; also the existing directors and officers in possession but describe the nature of each such adverse opinion, subject to the supervision and orders of a court disclaimer of opinion or qualification. or governmental body, identify the proceeding, the (d) The bank shall request the former accouncourt or governmental body, the date jurisdiction tant to furnish the bank with a letter addressed was assumed, the identity of the receiver, fiscal to the Board stating whether he agrees with the agent or similar officer and the date of his ap- statements made by the bank in response to this pointment. item and, if not, stating the respects in which he does not agree. The bank shall file a copy of the ITEM 4. CHANGES IN BANK'S ACCOUNTANT former accountant's letter as an exhibit with all copies of the Form F-3 required to be filed pursuant If an independent accountant who was preto General Instruction F. viously engaged as the principal accountant to audit the bank's financial statements resigns (or ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS indicates he declines to stand for re-election after The bank may, at its option, report under this the completion of the current audit) or is dismissed item any events, with respect to which information as the bank's principal accountant, or another is not otherwise called for by this form, which independent accountant is engaged as principal the bank deems of material importance to security accountant, or if an independent accountant on holders. whom the principal accountant expressed reliance in his report regarding a significant subsidiary ITEM 6. FINANCIAL STATEMENTS AND EXHIBITS resigns (or formally indicates he declines to stand for re-election after the completion of the current List below the financial statements and exhibits, audit) or is dismissed or another independent ac- if any, filed as a part of this report. countant is engaged to audit that subsidiary: (a) Financial statements of business acquired. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

870 Federal Reserve Bulletin • November 1978 Instructions. 1. Businesses for which Statements lation F (12 CFR 206.4(r)), a request for relief are Required. shall be filed as a part of an amendment to the The financial statements specified below shall initial report within the additional time provided be filed for any business the succession to which under said rule. The request shall set forth the or the acquisition of an interest in which is required following information: to be described in answer to Item 2 above. (a) The reason(s) for the unavailability of the 2. Statements Required. audited financial statements; (a) There shall be filed a balance sheet of the (b) The estimated costs of their preparation; business as of a date reasonably close to the date (c) An explanation of any other practical auditof acquisition. This balance sheet shall be verified ing problems and; if practical. (d) A tabular presentation of the following (b) Income and source and application of funds items of information, comparing the acquired statements of the business shall be filed for each business(es) with the bank on a consolidated basis of the last three full fiscal years and for the period, (excluding the acquired business(es)): (1) Operatif any, between the close of the latest of such fiscal ing income; (2) net income; (3) total assets; (4) years and the date of the latest balance sheet filed. total stockholder equity; and (5) total purchase These income and source and application of funds price compared to total equity capital of bank. statements shall be verified up to the date of the The Board may also by informal written notice verified balance sheet, if practical. require the filing of other financial statements in (c) If the business was in insolvency proceed- addition to, or in substitution for, the statements ings immediately prior to its acquisition, the bal- herein required in any case where such statements ance sheets required above need not be verified. are necessary or appropriate for an adequate pre- In such case, the income and source and applica- sentation of the financial condition of any person tion of funds statements required shall be verified whose financial statements are required, or whose to the close of the latest full fiscal year, if practical. statements are otherwise necessary for the protec- (d) Except as otherwise provided in this in- tion of investors. struction, the principles applicable to a registrant (b) Exhibits. Subject to the rules as to incorpoand its subsidiaries with respect to the filing of ration by reference, copies of any plan of acquisiindividual, consolidated and group statements in tion or disposition described in answer to Item 2, an original application or annual report shall be including any plan of reorganization, readapplicable to the statements required by this in- justment, exchange, merger, consolidation or sucstruction. cession in connnection therewith, shall be filed as 3. Application of § 206.7. exhibit to this report. Section 206.7 governs the examination and the form and content of the statements required by SIGNATURES the preceding instruction, including the basis of Pursuant to the requirements of the Securities consolidation, and prescribes the statements of Exchange Act of 1934, the registrant has duly other stockholders' equity to be filed. No support- caused this report to be signed on its behalf by ing schedules need be filed. A manually signed the undersigned thereunto duly authorized. accountant's report should be provided. 4. Filing of Other Financial Information in Certain Cases. Date The Board, upon the written request of the bank and where consistent with the protection of investors, may permit the omission of one or more of (Registrant) the financial statements herein required or the filing in substitution therefor of appropriate statements of comparable character, if the required (Signature) financial statements are not reasonably available to the bank, because the obtaining thereof would (Typed name of signing involve unreasonable effort, expense or practicable officer) difficulties. A request for such relief shall be filed as a part of the report. If an extension of time has been granted pursuant to § 206.4(r) of Regu- (Title of signing officer) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 871 Section 206.44 (Form F-4) is revised by adding with respect to the bank or any of its significant a new Part D to read as follows: subsidiaries shall be described. Any proceeding to which any director, officer or affiliate of the bank, any principal holder of equity securities of the SECTION 206.44—FORM FOR QUARTERLY bank or any associate of any such director, officer REPORT OF BANK (FORM F-4) or security holder, is a party adverse to the bank or any of its subsidiaries shall also be described. 3. Notwithstanding the foregoing, administrative or judicial proceedings arising under any Fed- PART D—OTHER INFORMATION eral, State or local provisions regulating the dis- Instruction. The Report shall contain the item charge of, materials into the environment or othernumbers and captions of all applicable items of wise relating to the protection of the environment Part D, but the text of such items may be omitted: shall not be deemed "ordinary routine litigation Provided, The responses clearly indicate the cov- incidental to the business" and shall be described erage of the item. Any item which is inapplicable if such proceeding is material to the business or or to which the answer is negative may be omitted financial condition of the bank or if it involves and no reference thereto need be made in the primarily a claim for damages and the amount report. If substantially the same information has involved, exclusive of interest and costs, exceeds been previously reported by the registrant, an 10 per cent of the equity capital of the bank and additional report of the information on this form its subsidiaries on a consolidated basis. Any such need not be made. The term "previously re- proceedings by governmental authorities shall be ported" is defined in § 206.2(v) of Regulation F. deemed material and shall be described whether or not the amount of any claim for damages ITEM 1. LEGAL PROCEEDINGS involved exceeds 10 per cent of equity capital on a consolidated basis and whether or not such (a) Briefly describe any material legal proceedproceedings are considered "ordinary routine litiings, other than ordinary routine litigation incigation incidental to the business"; Provided, dental to the business, to which the bank or any however, That such proceedings which are similar of its subsidiaries has become a party or of which in nature may be grouped and described generally any of their property has become the subject. stating: the number of such proceedings in each Include the name of the court or agency in which group; a generic description of such proceedings; the proceedings are pending, the date instituted, the issues generally involved; and, if such prothe principal parties thereto, a description of the ceedings in the aggregate are material to the busifactual basis alleged to underlie the proceedings ness or financial condition of the bank, the effect and the relief sought. of such proceedings on the business or financial (b) If any such proceedings previously reported condition of the bank. have been terminated, identify the proceeding, give the date of termination and describe the disposition thereof with respect to the Bank and ITEM 2. CHANGES IN SECURITIES its subsidiaries. (a) If the constitutent instruments defining the rights of the holders of any class of registered INSTRUCTIONS securities have been materially modified, give the 1. No information need be given with respect title of the class of securities involved and state to any proceeding which involves primarily a briefly the general effect of such modification upon claim for damages if the amount involved, exclu- the rights of holders of such securities. sive of interest and costs, does not exceed 10 per (b) If the rights evidenced by any class of cent of the equity capital accounts of the bank. registered securities have been materially limited However, if any proceeding presents in large de- or qualified by the issuance or modification of any gree the same issues as other proceedings pending other class of securities, state briefly the general or known to be contemplated, the amount involved effect to the issuance or modification of such other in such other proceedings shall be included in class of securities upon the rights of the holders computing such percentage. of the registered securities. 2. Notwithstanding the foregoing instructions, Instruction. Limitations upon the payment of any bankruptcy, receivership or similar proceeding dividends are to be reported hereunder. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

872 Federal Reserve Bulletin • November 1978 ITEM 5. CHANGES IN SECURITY FOR REGISTERED ITEM 5. INCREASE IN AMOUNT OUTSTANDING OF SECURITIES SECURITIES If there has been a material withdrawal or sub- If the amount outstanding of securities of the stitution of assets securing any class of registered bank has been increased through the issuance of securities of the bank, furnish the following infor- any new class of securities or through the issuance mation: or reissuance of any additional securities of a class (a) Give the title of the securities. outstanding, and the aggregate amount of all such (b) Identify and describe briefly the assets in- increases not previously reported exceeds 5 per volved in the withdrawal or substitution. cent of the outstanding securities of the class, (c) Indicate the provision in the underlying in- furnish the following information: denture, if any, authorizing the withdrawal or (a) Title of class, the amount outstanding as last substitution. previously reported, and the amount presently Instruction. This item need not be answered outstanding (as of a specified date); where the withdrawal or substitution is made pur- (b) A brief description of the transaction(s) resuant to the terms of an indenture which has been sulting in the increase and a statement of the qualified under the Trust Indenture Act of 1939. aggregate net cash proceeds or the nature and aggregate amount of any other consideration re- ITEM 4. DEFAULTS UPON SENIOR SECURITIES ceived or to be received by the bank; (c) The names of the principal underwriters, if (a) If there has been any material default in the any; payment of principal, interest, a sinking or purchase fund instalment, or any other material de- (d) A reasonable itemized statement of the purfault not cured within 30 days, with respect to poses so far as determinable, for which the net any indebtedness of the bank or any of its signifi- proceeds have been or are to be used and the cant subsidiaries exceeding 5 per cent of the equity approximate amount used or to be used for each capital of the bank. Identify the indebtedness and such purpose; state the nature of the default. In the case of such (e) If the securities were capital shares, a statea default in the payment of principle, interest, or ment of the amount of the proceeds credited or a sinking or purchase fund installment, state the to be credited to any account other than the approamount of the default and the total arrearage on priate capital share account. the date of filing this report. Instruction. This paragraph refers only to events INSTRUCTIONS which have become defaults under the governing 1. This item does not apply to notes, drafts, instruments, i.e., after the expiration of any period bills of exchange, bankers' acceptances or other of grace and compliance with any notice requireobligations which mature not later than 1 year from ments. the date of issuance. No report need be made (b) If any material arrearage in the payment of where the amount not previously reported, aldividends has occurred or if there has been any though in excess of 5 per cent of the amount other material delinquency not cured within 30 outstanding, does not exceed 1,000 shares or other days, with respect to any class of preferred stock units. of the bank which is registered or which ranks 2. This item includes the reissuance of treasury prior to any class of registered securities, or with securities and securities held for the account of respect to any class of preferred stock of any the issuer thereof. significant subsidiary of the bank, give the title of the class and state the nature of the arrearage ITEM 6. DECREASE IN AMOUNT OUTSTANDING OF or delinquency. In the case of an arrearage in the SECURITIES payment of dividends, state the amount and the total arrearage on the date of filing this report. If the amount outstanding of any class of se- Instruction. Item 4 need not be answered as to curities of the bank has been decreased through any default or arrearage with respect to any class one or more transactions and the aggregate amount of securities all of which is held by, or for the of all such decreases not previously reported exaccount of, the bank or its totally held subsidiaries. ceeds 5 per cent of the amount of securities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 873 the class previously outstanding, furnish the fol- was no solicitation in opposition to the managelowing information: ment's nominees as listed in the proxy statement, (a) Title of the class, the amount outstanding and (iii) all of such nominees were elected. If the as last previously reported, and the amount cur- bank did not solicit proxies and the board of rently outstanding (as of a specified date). directors as previously reported to the Board was (b) A brief description of the transaction(s) in- reelected in its entirety, a statement to that effect volving the decrease and a statement of the aggre- in answer to paragraph (b) will suffice as an answer gate amount of cash or the nature and aggregate thereto. amount of any other consideration paid or to be 4. Paragraph (c) need not be answered as to paid by the bank in connection with such transac- procedural matters or as to the selection or aption or transactions. proval of auditors. Instruction. Instruction 1 to Item 5 shall also 5. If the registrant has published a report conapply to this item. This item need not be answered taining all of the information called for by this as to decreases resulting from ordinary sinking item, the item may be answered by a reference fund operations, similar periodic decreases made to the information contained in such report, propursuant to the terms of the constituent instru- vided copies of such report are filed as an exhibit ments, or decreases resulting from the conversion to the report on this form. of securities. ITEM 8. OTHER MATERIALLY IMPORTANT EVENTS ITEM 7. SUBMISSION OF MATTERS TO A VOTE OF The registrant may, at its option, report under SECURITY HOLDERS this item any events not previously reported in If any matter has been submitted to a vote of a report on Form F-3, with respect to which security holders, through the solicitation of proxies information is not otherwise called for by this form or otherwise, furnish the following information: but which the registrant deems of material impor- (a) The date of the meeting and whether it was tance to security holders. an annual or special meeting. (b) If the meeting involved the election of ITEM 9. EXHIBITS AND REPORTS ON FORM F-3 (12 CFR 206.43) directors, state the name of each director elected at the meeting and the name of each other director (a) Exhibits. List below the documents, if any, whose term of office as a director continued after filed as a part of this report. Subject to the rules the meeting. as to incorporation by reference, the following (c) Briefly describe each other matter voted documents shall be filed as exhibits: upon at the meeting and state the number of 1. Copies of the amendments to all constituent affirmative votes and the number of negative votes instruments and other documents described in ancast with respect to each such matter. swer to Item 2. 2. Copies of all constituent instruments defin- INSTRUCTIONS ing the rights of the holders of any new class of 1. If any matter has been submitted to a vote securities referred to in answer to Item 5. of security holders otherwise than at a meeting 3. Copies of the text of any proposal described of such security holders, corresponding informa- in answer to Item 7. tion with respect to such submission shall be 4. Copies of any published report furnished in furnished. The solicitation of any authorization or response to Item 7. (See Item 7, Instruction 5.) consent (other than a proxy to vote at a stock- 5. Copies of any material amendment to the holders' meeting) with respect to any matter shall bank's charter or by-laws not otherwise required be deemed a submission of such matter to a vote to be filed. of security holders within the meaning of this item. (b) Reports on Form F-3. State whether any 2. Paragraph (a) need be answered only if reports on Form F-3 have been filed during the paragraph (b) or (c) is required to be answered. quarter for which this report is filed, listing the 3. Paragraph (b) need not be answered if (i) items reported, any financial statements filed, and proxies for the meeting were solicited pursuant to the dates of any such reports. § 206.5 of Regulation F under the Act, (ii) there Section 206.42 (Form F-2) is revised as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

874 Federal Reserve Bulletin • November 1978 SECTION 206.42—FORM FOR ANNUAL ITEM 9. LEGAL PROCEEDINGS REPORT OF BANK (FORM F-2) (a) Briefly describe any material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the bank or any of its subsidiaries is a party or of which any GENERAL INSTRUCTIONS of their property is the subject. Include the name A.-F. [No change] of the court or agency in which the proceedings are pending, the date instituted, the principal par- OMISSION OF INFORMATION PREVIOUSLY FILED ties thereto, a description of the factual basis alleged to underlie the proceedings and the relief (a) Except as provided in paragraph (b) below, sought. Include similar information as to any such the information called for by Items 1, 2, 3, 4, proceedings known to be contemplated by gov- 8, 9, 10, 11, 12, 15, 16, 17, and 18 of this form ernmental authorities. is to be furnished by all registrants required to (b) If any material legal proceeding which was file a report, on this form. Items 5, 6, 7, 13, and previously reported or which became reportable 14 may be omitted from the report by any regisduring the fourth quarter of bank's fiscal year was trant which, since the close of the fiscal year, has terminated during such quarter, give the date of filed with the Board a definitive proxy statement termination and describe the disposition thereof or a definitive information statement pursuant to with respect to the bank and its subsidiaries. § 206.5 of Regulation F which involved the election of directors, or which files such a proxy or information statement not later than 120 days after INSTRUCTIONS the close of the fiscal year. 1. No collection, action or claim need be de- (b) If the information called for by Items 2, 9, scribed unless it departs from the normal kind of or 12 would be unchanged from that given in a such actions. previous report, a reference to the previous report 2. No information need be given with respect which includes the required information will be to any proceedings which involves primarily a sufficient. Copies of such previous report need not claim for damages if the amount involved, exclube filed with the report currently being filed on sive of interest and costs, does not exceed 10 per this form. cent of the equity capital of the bank. However, if any proceeding presents in large degree the same PART I issues as other proceedings pending or known to be contemplated, the amount involved in such ITEMS 1,2, AND 3. [NO CHANGE] other proceedings shall be included in computing such percentage. ITEM 4. SUMMARY OF OPERATIONS 3. Notwithstanding Instructions 1 and 2, any material bankruptcy, receivership, or similar proceeding with respect to the bank or any of its INSTRUCTIONS. 1.-3. [NO CHANGE] significant subsidiaries shall be described. Any material proceedings to which any director, officer 4. For any previously reported material charge or affiliate of the registrant, any security holder or credit to income of an unusual or infrequent named in answer to Item 5(a), or any associate nature in which an amount of cost was estimated of any such director, officer or security holder, to be incurred in the fiscal year being reported on is a party, or has a material interest, adverse to or the prior fiscal year, summarize such transaction the bank of any of its subsidiaries shall also be and state the amounts of such estimated cost and described. the amounts of the actual cost incurred in such 4. Notwithstanding the foregoing, administraperiods, the reasons for differences between estitive or judicial proceeding arising under any Fedmated and actual amounts, if any, and provide a eral, State or local provisions regulating the disdetailed reconciliation showing all changes and charge of materials into the environment or othercredits to any reserve provided. wise relating to the protection of the environment shall not be deemed ''ordinary routine litigation ITEMS 5, 6, 7, AND 8. [NO CHANGE] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 875 incidental to the business" and shall be described standing of debt securities which were previously if such proceeding is material to the business of reported in reports on Form F-4 should be listed financial condition of the bank or if it involves and briefly discussed with appropriate cross referprimarily a claim for damages and the amount ences to the earlier disclosure. involved, exclusive of interest and costs, exceeds (c) If, during the fourth quarter of the bank's 10 per cent of the equity assets of the bank and fiscal year, the amount of debt securities outits subsidiaries on a consolidated basis. Any such standing has been increased or decreased through proceedings by governmental authorities shall be one or more transactions, and the aggregate deemed material and shall be described whether amount of all such increases or decreases not or not the amount of any claim for damages previously reported exceeds 5 per cent of the involved exceeds 10 per cent of equity capital and outstanding securities of the affected class, furwhether or not such proceedings are considered nish the following information: "ordinary routine litigation incidental to the busi- (1) Title of class, the amount outstanding as last ness"; provided, however, that such proceedings previously reported, and the amount presently which are similar in nature may be grouped and outstanding (as of a specified date); described generally stating: the number of such (2) A brief description of the transaction or proceedings in each group; a generic description transactions resulting in the change; of such proceedings; the issues generally involved; (3) If an increase in securities is reported, furand, if such proceedings in the aggregate are nish: (i) A statement of the aggregate net cash material to the business or financial condition of proceeds or the nature and aggregate amount of the bank the effect of such proceedings on the any consideration received or to be received by business or financial condition of the bank. the bank; (ii) the names of the principal underwriters, if any; and (iii) a reasonably itemized ITEM 10. INCREASES AND DECREASES IN statement of the purposes, so far as determinable, OUTSTANDING SECURITIES for which the net proceeds have been or are to be used and the approximate amount used or to (a) Give the following information as to all be used for each such purpose; and increases and decreases during the fiscal year in (4) If a decrease in securities is reported, a the amount of equity securities of the registrant statement of the aggregate amount of cash or the outstanding: nature and aggregate amount of any other consid- (1) The title of the class of securities involved; eration paid or to be paid by the bank in connection (2) The date of the transaction; with such transaction or transactions. (3) The amount of securities involved and whether an increase or decrease; and INSTRUCTIONS (4) A brief description of the transaction in which the increase or decrease occurred. If pre- 1. This paragraph does not apply to notes, viously reported, the description may be incorpo- drafts, bills of exchange, bankers' acceptances, or rated by a specific reference to the previous filing. other obligations which mature not later than 1 Instructions. The information shall be prepared year from the date of issuance. No report need in the form of a reconciliation between the amount be made where the amount not previously reshown to be outstanding on the balance sheet to ported, although in excess of 5 per cent of the be filed with this report and the amounts shown amount outstanding, does not exceed 1,000 shares on the bank's balance sheet for the previous year. or other units. The exercise of outstanding options or warrants 2. This paragraph includes the reissuance of (separately by class or type of option or warrant), treasury securities and securities held for the acconversions of previously issued convertible se- count of the issuer thereof. curities (separately by class of security) and the 3. This paragraph need not be answered as to issuance of options may be grouped together decreases resulting from ordinary sinking fund showing the dates between which all such transac- operations, similar periodic decreases made purtions occurred. If the information called for has suant to the terms of the constituent instruments, been previously reported on Form F-4, it may be or decreases resulting from the conversion of seincorporated by a specific reference to the previous curities. filing. (b) Increases and decreases in the amount out- ITEMS 11, 12, 13 AND 14. [NO CHANGE] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

876 Federal Reserve Bulletin • November 1978 ITEM 15. FINANCIAL STATEMENTS, EXHIBITS ITEM 17. DEFAULTS UPON SENIOR SECURITIES FILED, AND REPORTS ON FORM F-3 General Instruction. No response to this item (a) List all of the following documents filed as is required if the information called for herein has a part of the report: been previously reported in a report on Form F-4. 1. All financial statements. (a) If there has been any material default in the 2. All exhibits, including those incorporated by payment of principal interest, a sinking or purreference. chase fund instalment, or any other material de- Instructions. Where any financial statement or fault not cured within 30 days, with respect to exhibit is incorporated by reference, the incorpo- any indebtedness of the bank or any of its signifiration by reference shall be set forth in the list cant subsidiaries exceeding 5 per cent of the equity required by this item. Section 206.4(m) of Regu- capital of the bank, identify the indebtedness and lation F (12 CFR 206.4(m)). state the nature of the default. In the case of such (b) Reports on Form F-3. State whether any a default in the payment of principal, interest, or reports on Form F-3 have been filed during the a sinking or purchase fund instalment, state the last quarter of the period covered by this report, amount of the default and the total arrearage on listing the items reported, any financial statements the date of filing this report. filed and the dates of any such reports. Instruction. This paragraph refers only to events which have become defaults under the governing ITEM 16. CHANGES IN SECURITIES AND CHANGES instruments, i.e., after the expiration of any period IN SECURITY FOR REGISTERED SECURITIES of grace and compliance with any notice requirements. General Instruction. No response to this item (b) If any material arrearage in the payment of is required if the information called for herein has dividends has occurred or if there has been any been previously reported in a report on Form F-4. other material delinquency not cured within 30 (a) If the constituent instruments defining the days, with respect to any class of preferred stock rights of the holders of any class of registered of the bank which is registered or which ranks securities have been materially modified, give the prior to any class of registered securities, or with title of the class of securities involved and state respect to any class of preferred stock of any briefly the general effect of such modification upon significant subsidiary of the bank, give the title the rights of holders of such securities. of the class and state the nature of the arrearage (b) If the rights evidenced by any class of or delinquency. In the case of an arrearage in the registered securities have been materially limited payment of dividends, state the amount and the or qualified by the issuance or modification of any total arrearage on the date of filing this report. other class of securities, state briefly the general Instruction. Item 17 need not be answered as effect of the issuance or modification of such other to any default or arrearage with respect to any class class of securities upon the rights of the holders of securities all of which is held by, or for the of the registered securities. account of, the bank or its totally held subsidiaries. Instruction. Restrictions upon payment of dividends are to be reported hereunder. ITEM 18. SUBMISSION OF MATTERS TO A VOTE OF (c) If there has been a material withdrawal or SECURITY HOLDERS substitution of assets securing any class of registered securities of the bank, furnish the following If any matter has been submitted to a vote of information: security holders, through the solicitation of proxies 1. Give the title of the securities. or otherwise, furnish the following information if 2. Identify and describe briefly the assets in- not previously disclosed in a report on Form F-4. volved in the withdrawal or substitutions. (a) The date of the meeting and whether it was 3. Indicate the provision in the underlying in- an annual or special meeting. denture, if any, authorizing the withdrawal or (b) If the meeting involved the election of substitution. directors, state the name of each director elected Instruction. This paragraph need not be an- at the meeting and the name of each other director swered where the withdrawal or substitution is whose term of office as a director continued after made pursuant to the terms of an indenture which the meeting. has been qualified under the Trust Indenture Act (c) Briefly describe each other matter voted of 1939. upon at the meeting and state the number of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 877 affirmative votes and the number of negative votes ing the rights of the holders of any new class of cast with respect to each such matter. securities referred to in answer to Item 10(c). Instructions. 1. If any matter has been submitted E. Copies of the amendments to all constituent to a vote of security holders otherwise than at a instruments and other documents described in anmeeting of such security holders, corresponding swer to Item 16. information with respect to such submission shall F. Copies of the text of any proposal described be furnished. The solicitation of any authorization and copies of any published report furnished in or consent (other than a proxy to vote at a stock- response to Item 18. holders' meeting) with respect to any matter shall be deemed a submission of such matter to a vote Item 5(e) of Form F-5 is amended to read as of security holders within the meaning of this item. follows: 2. Paragraph (a) need be answered only if (e) If, to the knowledge of the persons on paragraph (b) or (c) is required to be answered. whose behalf the solicitation is made, a change 3. Paragraph (b) need not be answered if (i) in control of the bank has occurred since the proxies for the meeting were solicited pursuant to beginning of its last fiscal year, state the name § 206.5 of Regulation F, (ii) there was no solici- of the person(s) who acquired such control, the tation in opposition to the management's nominees amount and the source of the consideration used as listed in the proxy statement, and (iii) all of by such person or persons, the basis of the control, such nominees were elected. If the registrant did the date and a description of the transaction(s) not solicit proxies and the board of directors as which resulted in the change of control, and the previously reported to the Board was reelected in percentage of voting securities of the bank now its entirety, a statement to that effect in answer beneficially owned directly or indirectly by the to paragraph (b) will suffice as an answer thereto. person(s) who acquired control, and the identity 4. Paragraph (c) need not be answered as to of the person(s) from whom control was assumed. procedural matters or as to the selection or ap- If the source of all or any part of the consideration proval of auditors. used is a loan made in the ordinary course of 5. If the Bank has published a report containing business by a bank as defined by Section 3(a)(6) all of the information called for by the item, the of the Act, the identity of such bank shall be item may be answered by a reference to the infor- omitted provided a request for confidentiality has mation contained in such report, provided copies been made pursuant to Section 13(d)(1)(B) of the of such report are filed as an exhibit to the report Act by the person(s) who acquired control. In lieu on this form. thereof, the material shall indicate that the identity of the bank has been so omitted and filed separately SIGNATURES with the Board. If the source of all or any part [No CHANGE] of the funds used to acquire control of the bank was a loan made by a bank as defined by Section INSTRUCTIONS AS TO FINANCIAL STATEMENTS 3(a)(6) of the Act, indicate whether there exists [No CHANGE] any agreement, arrangement, or understanding INSTRUCTIONS AS TO EXHIBITS pursuant to which the registrant bank maintains or would maintain a correspondent deposit account Subject to provisions regarding the incorpoat such lending bank. ration of exhibits by reference, the following exhibits shall be filed as a part of the report: INSTRUCTIONS A. Copies of all amendments or modifications, 1. State the terms of any loans or pledges not previously filed, to all exhibits previously filed (or copies of such exhibits as amended or modi- obtained by the new control group for the purpose fied). of acquiring control, and the names of the lenders B. Copies of all contracts and other documents or pledgees. of a character required to be filed as an exhibit 2. Any arrangements or understandings among to an original registration statement on Form F-l members of both the former and new control which were executed or in effect during the fiscal groups and their associates with respect to election year and not previously filed. of the directors or other matters should be de- C. Copies of the exhibits called for by Instruc- scribed. tion 3(d) to Item 4. * * * * * D. Copies of all constituent instruments defin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

878 Federal Reserve Bulletin • November 1978 Section 206.6(1) is amended to read as follows: similarly approved if the amendment would: (1) Materially increase the benefits accruing to (1) EXEMPTION FROM SECTION 16(b) OF ACQUISITIONS participants under the plan; OF SHARES OF STOCK AND STOCK OPTIONS AND STOCK (2) Materially increase the number of securities APPRECIATION RIGHTS UNDER CERTAIN STOCK INCENTIVE, which may be issued under the plan; or STOCK OPTION OR SIMILAR PLANS. Any acquisition of (3) Materially modify the requirements as to shares of stock (other than stock acquired upon eligibility for participation in the plan. the exercise of an option, warrant or right) pur- (2) Disinterested administrators. If the selection suant to a plan as defined in subparagraph (4)(i) of any director or officer of the bank to whom of this paragraph, or any acquisition, expiration, stock may be allocated or to whom stock options cancellation or surrender to the bank of a stock or stock appreciation rights may be granted puroption or stock appreciation right pursuant to such suant to the plan, or the determination of the a plan by a director or officer of the bank shall number or maximum number or shares of stock be exempt from the operation of section 16(b) of which may be allocated to any such director or the Act if the plan meets the following conditions: officer or which may be covered by stock options (1) Approval by security holders. The plan has or stock appreciation rights granted to any such been approved, directly or indirectly, (i) by the director or officer pursuant to the plan is subject affirmative votes of the holders of a majority of to the discretion of any person, then such discrethe securities of the bank present, or represented, tion shall be exercised only as follows: and entitled to vote at a meeting duly held in (i) With respect to the participation of directors: accordance with the applicable laws of the state (a) By the board of directors of the bank, a or other jurisdiction in which the bank was char- majority of which board and a majority of the tered, or (ii) by the written consent of the holders directors acting in the matter are disinterested of a majority of the securities of the bank entitled persons; to vote: Provided, however, That if such a vote (b) By, or only in accordance with the recomor written consent was not solicited substantially mendation of, a committee of three or more perin accordance with the rules and regulations, if sons having full authority to act in the matter, all any, in effect under section 14(a) of the Act at of the members of which committee are disinthe time of such vote or written consent, the bank terested persons; or shall furnish in writing to the holders of record (c) Otherwise in accordance with the plan, if of the securities entitled to vote for the plan the plan: (1) Specifies the number or maximum substantially the same information concerning the number of shares of stock which directors may plan that would be required by the rules and acquire or which may be subject to stock options regulations in effect under section 14(a) of the Act or stock appreciation rights granted to directors at the time such information is furnished, if proxies pursuant to the plan and the terms upon which, to be voted with respect to the approval or disap- and the times at which, or the periods within proval of the plan were then being solicited, on which, such stock may be acquired or such options or prior to the date of the first annual meeting of or rights may be acquired and exercised; or (2) security holders held subsequent to the later of (a) sets forth, by formula or otherwise, effective and the first registration of an equity security under determinable limitations with respect to the foresection 12 of the Act or (b) the acquisition of an going based upon earnings of the bank, dividends equity security for which exemption is claimed. paid, compensation received by participants, op- Such written information may be furnished by mail tion prices, market value of shares, outstanding to the last known address of the security holders shares or percentages thereof outstanding from of record within 30 days prior to the date of time-to-time or similar factors. mailing. Four copies of such written information (i) With respect to the participation of officers shall be filed with, or mailed for filing to, the who are not directors: Board not later than the date on which it is first (a) By the Board of directors of the bank or sent or given to security holders of the bank. For a committee of three or more directors; the purposes of this paragraph, the term 44bank" (b) By, or only in accordance with the recomincludes a predecessor bank if the plan or obliga- mendations of, a committee of three or more tions to participate thereunder were assumed by persons having full authority to act in the matter, the bank in connection with the succession. In all of the members of which committee are disinaddition, any amendment to the plan shall be terested persons; or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 879 (c) Otherwise in accordance with the plan, if be offered or the method by which the price or the plan (/) Specifies the number of maximum the amount of the award is to be determined; and number of shares of stock which officers may (b) The plan must provide with respect to any acquire or which may be subject to stock options option or similar right (including a stock apprecior stock appreciation rights granted to officers ation right) offered pursuant to the plan that such pursuant to the plan and the terms upon which, option or right is not transferable other than by and the times at which, or the period within which, will or the laws of descent and distribution and such stock may be acquired or such options or that it is exercisable during the employee's lifetime rights may be acquired and exercised; or (2) Sets only by him or his guardian or legal representative. forth, by formula or otherwise, effective and de- (ii) The term "exercise of an option, warrant terminable limitations with respect to the foregoing or right" contained in the parenthetical clause of based upon earnings of the bank, dividends paid, the first paragraph of § 206.6(1) shall not include: compensation received by participants, option (a) The making of an election to receive under prices, market value of shares, outstanding shares any plan compensation in the form of stock or or percentages thereof outstanding from time-to- credits therefor, provided that such election is time or similar factors. made either prior to the making of the award or (iii) The provisions of this paragraph shall not prior to the fulfillment of all conditions to the apply with respect to any option or right granted receipt of the compensation and, provided, further, or other equity security acquired, prior to the date that such election is irrevocable until at least six of the first registration of an equity security under months after termination of employment; section 12 of the Act. (b) The subsequent crediting of such stock; (3) Plan limitations. As to each participant or (c) The making of any election as to the time as to all participants the plan effectively limits the for delivery of such stock after termination of aggregate dollar amount of stock or the aggregate employment, provided that such election is made number of shares of stock which may be allocated, at least six months prior to any such delivery; or which may be subject to stock options or stock (d) The fulfillment of any condition to the abappreciation rights issued pursuant to the plan. The solute right to receive such stock; or limitations may be established on an annual basis, (e) The acceptance of certificates for shares of or for the duration of the plan, whether or not such stock. the plan has a fixed termination date, and may (iii) The term "disinterested person" used in be determined either by fixed or maximum dollar §§ 206.6(1)(2) and 206.6(1 )(5) hereof shall mean amounts or fixed or maximum numbers of shares an administrator of a plan who is not at the time he or by formulas based upon earnings of the bank, exercises discretion in administering the plan eligidividends paid, compensation received by partici- ble and has not at any time within one year prior pants, option prices, market value of shares, out- thereto been eligible for selection as a person to standing shares or percentages thereof outstanding whom stock may be allocated or to whom stock opfrom time-to-time, or similar factors that will tions or stock appreciation rights may be granted result in an effective and determinable limitation. pursuant to the plan or any other plan of the bank or Such limitations may be subject to any provision any of its affiliates entitling the participants therein for adjustment of the plan or of stock allocable to acquire stock, stock options or stock appreciation or options outstanding thereunder to prevent dilu- rights of the bank or any of its affiliates. tion or enlargement of rights. (5) Cash Settlements of Stock Appreciation (4) Definitions. Unless the context otherwise Rights. Any transaction involving the exercise and requires, all terms used in this rule shall have the cancellation of a stock appreciation right issued pursame meaning as in the Act or elsewhere in Part suant to a plan (whether or not the transaction also 206. In addition, the following definitions apply: involves the related surrender and cancellation of a (i) The term "plan" shall mean an option, stock option), and the receipt of cash in complete or bonus, appreciation, profit sharing, retirement, in- partial settlement of that right, shall be exempt from centive, thrift, savings or similar plan that meets the operation of section 16(b) of the Act, as not the following conditions: comprehended within the purpose of that section, if (a) The plan must be set forth in a written all the following conditions are met: document describing the means or basis for deter- (i) Information about the issue, (a) The bank mining the eligibility of individuals to participate that is the issuer of the stock appreciation right and either the price at which the securities may has been subject to the reporting requirements of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

880 Federal Reserve Bulletin • November 1978 section 13 of the Act for at least a year prior to (iv) Compliance with other conditions of the transaction and has filed all reports and state- § 206.6(1). The plan under which the stock apments required to be filed pursuant to that section preciation rights and any related options are during that year. granted shall meet the conditions, specified above (b) The bank that is the issuer of the stock in § 206.6(1) (1), (2), (3), and (4). appreciation right on a regular basis does release (v) Limit of the exemption. Nothing in this for publication quarterly and annual summary § 206.6(1)(5) provides an exemption from section statements of revenues and earnings. This condi- 16(b) for the acquisition of stock upon the exercise tion shall be deemed satisfied if the specified of a stock appreciation right or a stock option. financial data appears (/) on a wire service, (2) in a financial news service, (3) in a newspaper "Section" 206.6(e)(3) is amended to read as of general circulation, or (4) is otherwise made follows: publicly available. (3) Notwithstanding the foregoing, a statement (ii) Limitation of the right and any related op- need not be filed pursuant to section 16(a) of the tion. Neither the stock appreciation right nor any Act: related stock option shall have been exercisable (i) By any person with respect to the acquisiduring the first six months of their respective tion, expiration, surrender to the bank, or cancelterms, except that this limitation shall not apply lation of any nontransferable stock option or stock in the event death or disability of the grantee appreciation right granted by the bank of the occurs prior to the expiration of the six-month securities to which the option or right relates period. pursuant to a plan which meets the conditions (iii) Administration of the plan, (a) The plan specified in § 206.6(1) (1), (2), (3), (4), and (5) shall be administered by either the board of direc- (a), (b), (c), (d) and (e) of this chapter, or; tors, a majority of which are disinterested persons (ii) By any bank with respect to any put, call, and a majority of the directors acting on plan option or other right or obligation to buy or sell matters are disinterested persons, or by a commit- securities of which it is the issuer. As used in this tee of three or more persons, all of whom are subparagraph (3), the term "plan" shall have the disinterested persons; meaning assigned to it in subparagraph (4) of (b) The board or committee shall have sole § 206.6(1). discretion either (1) To determine the form in which payment of the right will be made (i.e., RULES OF PROCEDURE cash, securities, or any combination thereof), or (2) To consent to or disapprove the election of RULES REGARDING the participant to receive cash in full or partial DELEGATION OF AUTHORITY settlement of the right. Such consent or disap- The Board of Governors has amended its Rules proval may be given at any time after the election of Procedure to institute a procedure by which to which it relates. requests for consideration of Board action on cer- (c) Any election by the participant to receive tain applications will receive prompt attention, and cash in full or partial settlement of the stock appreciation right, as well as any exercise by him has delegated to its General Counsel the authority of this stock appreciation right for such cash, shall to determine whether or not reconsideration should be made during the period beginning on the third be granted. business day following the date of release of the Effective October 19, 1978, Part 262 is financial data specified in § 206.6(l)(5)(i)(b) amended by adding a new Section 262.3(i) by hereof and ending on the twelfth business day redesignating the subsequent sections accordingly following such date. This subparagraph, and by withdrawing Section 262.3(g)(5). The new (5)(iii)(c), however, shall not apply to any exercise Section 262.3(i) reads as follows: by the participant of a stock appreciation right for SECTION 262.3—APPLICATIONS cash where the date of exercise: (1) Is automatic or fixed in advance under the plan; (i) RECONSIDERATION OF CERTAIN BOARD (2) Is at least six months beyond the date of ACTIONS. The Board may reconsider any action the stock appreciation right; and taken by it on an application upon receipt by the (3) Is outside the control of the participant. Secretary of the Board of a written request for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 881 reconsideration from any party to such application, tions for membership, applications for branches, on or before the fifteenth day after the effective mergers, or relocations, and certain applications date of the Board's action. Such request should under the Bank Holding Company Act. specify the reasons why the Board should recon- Effective November 6, 1978, section 262.3 is sider its action, and present relevant facts that, amended by adding the following subsection (b) for good cause shown, were not previously pre- and redesignating subsections (b), (c), (d), (e), (f), sented to the Board. Within ten days of receipt (g), and (h) as subsections (c), (d), (e), (f), (g), of such a request, the General Counsel, acting (h), and (i), respectively. pursuant to delegated authority (12 C.F.R. (b) NOTICE OF APPLICATIONS. (1) In the case 265.2(b)(7)), shall determine whether or not the of applications (i) for membership in the Federal request for reconsideration should be granted, and Reserve System where such membership would shall notify all parties to the application orally by confer Federal deposit insurance on a bank, telephone of this determination within ten days. (ii) by a State member bank for the establish- Such notification will be confirmed promptly in ment of a domestic branch or other facility that writing. In the exercise of this authority, the Gen- would be authorized to receive deposits. eral Counsel shall confer with the Directors of (iii) by a State member bank for the relocation other interested Divisions of the Board or their of a domestic branch office, designees. Notwithstanding the foregoing, the (iv) for merger, consolidation, or acquisition of Board may, on its own motion if it deems recon- assets or assumption of liabilities, if the acquiring, sideration appropriate, elect to reconsider its action assuming, or resulting bank is to be a State memwith respect to any application, and the parties ber bank, to such application shall be notified by the Secre- (v) to become a bank holding company, and tary of the Board of its election as provided above. (vi) by a bank holding company to acquire If it is determined that the Board should reconsider ownership or control of shares or assets of a bank, its action with respect to an application, such or to merge or consolidate with any other bank action will be stayed and will not be final until holding company, the Board has acted on the application upon reconsideration. If appropriate, notice of recon- the applicant shall, prior to filing such application, sideration of an application will be published cause to be published on the same day of each promptly in the Federal Register. of two consecutive weeks a notice containing the Effective October 19, 1978, Part 265 is amended name of the applicant or applicants, the subject by adding § 265.2(b)(7) to read as follows: matter of the application, the location at which the applicant proposes to engage in business, and SECTION 265.2—SPECIFIC FUNCTIONS an invitation to the public to give written comment DELEGATED TO BOARD EMPLOYEES upon the application to the appropriate Federal AND TO FEDERAL RESERVE BANKS Reserve Bank no later than thirty days after the date of publication of the first notice. Such notice shall be published in a newspaper of general circulation in (A) the community in which the head (b) THE GENERAL COUNSEL OF THE BOARD office of the bank is or is to be located in the (or in the General Counsel's absence, the Acting case of an application for membership that would General Counsel) is authorized: confer deposit insurance, (B) the community or communities in which the head office of the bank (7) pursuant to Part 262.3(i) of this chapter and the proposed branch or other facility (other (Rules of Procedure) to determine whether or not than an electronic funds transfer facility) are loto grant a request for reconsideration of any action cated in the case of an application for the estabtaken by the Board with respect to an application lishment of a domestic branch or other facility that as provided in that Part. would be authorized to receive deposits, (C) the community or communities in which the head office of the bank, the office to be closed, and RULES OF PROCEDURE the office to be opened are located in the case of The Board of Governors of the Federal Reserve an application for the relocation of a domestic System has amended its Rules of Procedure to branch office, (D) the community or communities revise procedures of the Board for certain applica- in which the head office of each of the banks to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

882 Federal Reserve Bulletin • November 1978 be party to the merger, consolidation, or acquisi- SECTION 226.9(g)(6)(iii) tion of assets or assumption of liabilities are lo- (CHANGE IN TERMS) cated in the case of an application by a bank for NOTICE TO CUSTOMER merger, consolidation, or acquisition of assets or REQUIRED BY FEDERAL LAW: assumption of liabilities, or (E) the community or communities in which the head offices of the (Name of Creditor) largest subsidiary bank, if any, of an applicant and intends to change the terms of your open end credit of each bank, shares of which are to be directly account which is secured by your home. You have or indirectly acquired, are located in the case of a right to refuse to accept this change in terms. applications under section 3 of the Bank Holding If you refuse this change in terms, you have the Company Act. right to continue to repay your existing obligation (2) In addition to the foregoing notice, an ap- under the present terms of the account. However, plicant, in the case of an application to relocate we would then have the right to refuse to extend a domestic branch office or other facility that any further credit, except pursuant to these new would be authorized to receive deposits, shall post terms. You may exercise your right to refuse the in a conspicuous public place in the lobby of the change in terms within three business days of office to be closed a notice containing the infor- (date disclosure delivered to customer) mation specified in Section 262.3(b)(1). Such no- by notifying us at (Address of creditor's place tice should be posted on the date of the first notice of business) by mail or telegram sent not later required by Section 262.3(b)(1). than midnight of (date) . You may also use any other form of written notice to refuse the change in terms if it is delivered to the above address not later than that time. This notice may The Board will accept and consider written be used for that purpose by dating and signing comments for six months from the effective date below. of this amendment. Such comments should be I hereby refuse the change in the terms of my submitted to Theodore E. Allison, Secretary of the account. Board of Governors of the Federal Reserve System, Washington, D.C. 20551 and should refer to Docket No. R-0182. (date) (customer's signature) RULES OF PROCEDURE INTERPRETATION OF REGULATION Z The Board of Governors has instituted procedures to govern its consideration of comments and The Board of Governors has amended its requests for hearing on certain applications re- Interpretation of Regulation Z, 12 C.F.R. Part quired by law. 226.904 by deleting the third sentence of the Effective October 19, 1978, Part 262 is disclosure captioned "Section 226.9(g)(6)(iii) amended by adding a new § 262.3(d) and redesig- (Change in terms)" which reads, "If you refuse nating the subsequent sections. The new section this change in terms, we have the right to refuse 262.3(d) is to read as follows: to extend any further credit on your account and SECTION 262.3—APPLICATIONS may require you to repay any existing obligation on your account under the present terms of the account" and substituting therefor "If you refuse this change in terms, you have the right (d) SUBMISSION OF COMMENTS AND REto continue to repay your existing obligation QUESTS FOR HEARING. The Board will consider under the present terms of the account. How- a comment or request for hearing with respect to an application only if it is in writing and is sent ever, we would then have the right to refuse to the Secretary of the Board or the appropriate to extend any further credit, except pursuant to Federal Reserve Bank on or before the date prethese new terms", so that the disclosure reads scribed in the Federal Register notice with respect as follows: to applications filed under sections 3 or 4 of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 883 Bank Holding Company Act or, in the case of where a timely comment or request for hearing other applications, the date specified in the news- is received as provided herein, a copy of such paper notice with respect to such applications, or comment or request shall be forwarded promptly where no such date is prescribed, on or before to the applicant for its response. The Board will the thirtieth day after the day such notice is first consider the applicant's response only if it is in published. Similarly, the Board will consider writing and sent to the Secretary of the Board on comments on an application from the Attorney or before the tenth day after the date of the letter General or a banking supervisory authority to by which it is forwarded to the applicant. At the which notification of receipt of an application has same time it transmits its response to the Board, been given, only if such comment is received by the applicant should transmit a copy of its response the Secretary of the Board within thirty days of to the person or supervisory authority making such the date of the letter giving such notification. Any comment or requesting a hearing. Notwithstanding comment on an application that requests a hearing the foregoing, the Board may, in its sole discretion must include a statement of why a written presen- and without notifying the parties, take into contation would not suffice in lieu of a hearing, sideration the substance of comments with respect identifying specifically any questions of fact that to an application, (but not requests for hearing) are in dispute and summarizing the evidence that that are not received within the time periods prowould be presented at a hearing. In every case vided herein. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 shares of the successor organization is treated OF BANK HOLDING COMPANY ACT herein as the proposed acquisition of the shares of Commercial Bank. Commercial Bankshares, Inc., Notice of the application, affording opportunity Griffin, Georgia for interested persons to submit views and recom- Order Approving mendations, has been given in accordance with section 3(b) of the Act (12 U.S.C. § 1842(b)). Formation of Bank Holding Company The time for filing views and recommendations Commercial Bankshares, Inc., Griffin, Georgia, has expired, and the Board has considered the has applied for the Board's approval under section application and all comments received in light of 3(a)(1) of the Bank Holding Company Act (12 the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(a)(1)) of formation of a bank U.S.C. § 1842(c)). holding company by acquiring all of the voting Applicant is a non-operating corporation formed shares of the successor by merger to Commercial for the purpose of acquiring Commercial Bank and Bank and Trust Company, Griffin, Georgia Concord Bank,2 which are the 17th largest and ("Commercial Bank"), and 69.2 per cent of the the 402nd largest banks in Georgia, respectively. voting shares of Concord Banking Company, Commercial Bank holds approximately $81.8 mil- Concord, Georgia ("Concord Bank").1 The bank into which Commercial Bank is to be merged has 2 Commercial Bank acquired 69.2 per cent of the voting no significance except as a means to facilitate the shares of Concord Bank on September 1, 1976, in settlement of a debt arising from the previously-mentioned defalcation. acquisition of the voting shares of Commercial Under section 3(a) of the Bank Holding Company Act, Com- Bank. Accordingly, the proposed acquisition of mercial Bank must have divested its shares of Concord Bank by September 1, 1978, or have been granted an extension of time in which to divest the shares. Commercial Bank plans 1 Commercial Bank acquired 0.4 per cent of the shares of to effectuate the divestiture of the shares of Concord Bank common stock of The Bank of Griffin, Griffin, Georgia, and by the transfer of such shares to Applicant, which, under 0.234 per cent of the shares of common stock of First National section 11(b) of the Act (12 U.S.C. § 1849(b)), may not be Bank of Griffin, Griffin, Georgia, in settlement of a debt arising lawfully consummated before the thirtieth calendar day after from a defalcation. Commercial Bank plans to transfer these the date of Board approval of the instant application. Comshares to Applicant upon consummation of the proposed trans- mercial Bank has received from the Federal Reserve Bank of action. Applicant has committed to divest these shares within Atlanta, pursuant to delegated authority, an extension of time one year after the date of their transfer to Applicant. in which to divest the shares to December 1, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

884 Federal Reserve Bulletin • November 1978 lion in deposits, representing 0.56 per cent of of the proposal would be in the public interest and deposits in commercial banks in the State. Con- that the application should be approved.4 cord Bank holds approximately $1.9 million in The application is approved for the reasons deposits, representing 0.01 per cent of deposits summarized above. The transaction shall not be in commercial banks in the State.3 made before the thirtieth calendar day following Commercial Bank is the largest of three banks the effective date of this Order, or later than three in the Griffin banking market, which is approxi- months after the effective date of this Order unless mated by Spalding County, and holds approxi- such period is extended for good cause by the mately 61 per cent of deposits in commercial banks Board, or by the Federal Reserve Bank of Atlanta in that market. Concord Bank is the smallest of pursuant to delegated authority. three banks in the Pike County banking market, By order of the Board of Governors, effective which is approximated by the southern three- October 27, 1978. fourths of Pike County, and holds approximately 14.8 per cent of deposits in commercial banks in Voting for this action: Chairman Miller and Goverthat market. nors Wallich, Jackson, Partee, and Teeters. Absent and not voting: Governors Gardner and Coldwell. Commercial Bank and Concord Bank operate in adjacent but separate banking markets. State law (Signed) GRIFFITH L. GARWOOD, prohibits Commercial Bank and Concord Bank [SEAL] Deputy Secretary of the Board. from branching into the banking market of the other bank. Thus it appears that the acquisition Ellis Banking Corporation, will have no adverse effect on existing or potential Bradenton, Florida competition. Therefore, the Board concludes that Order Denying competitive considerations of this application are Request for Reconsideration consistent with approval of the application. The financial and managerial resources and fu- Ellis Banking Corporation, Bradenton, Florida ture prospects of Applicant and Commercial Bank ("Petitioner"), has requested reconsideration of and Concord Bank are considered to be generally satisfactory. Applicant would incur no debt in 4 Applicant's board of directors, until recently, included a director who serves as a director of one of two savings and connection with this proposal and would serve as loan associations in Griffin, Georgia, and a director who serves a source of financial and managerial strength to as a director of the other savings and loan association in Griffin, its subsidiary banks. Since the time that Commer- Georgia. In anticipation of enactment of the Financial Institutions Regulatory Act of 1978 ("FIRA"), these interlocking cial Bank acquired shares of Concord Bank, new director relationships have been terminated. The FIRA bill was management procedures at Concord Bank have passed by Congress on October 15, 1978, and is currently awaiting the signature of the President. been instituted and the condition of Concord Bank Title II of the FIRA bill provides, inter alia, that a "manhas improved substantially. Therefore, the Board agement official" of either a "depository institution", which concludes that the banking factors involved in this term includes a commercial bank and a savings and loan association, or a "depository holding company", which term proposal are consistent with approval of the appliincludes a bank holding company, may not serve as a "mancation. agement official" of any other nonaffiliated depository institu- Although there would be no immediate increase tion or depository holding company if an office of one of the institutions is located within the same city as an office of the in the services offered by Bank as a result of the other institution. "Management official" is defined in Title II proposed transaction, the considerations relating of the bill to include a director. Title II of the bill will not apply until a date in 1988 to management official interlocks to the convenience and needs of the communities that began prior to enactment of FIRA, which would occur to be served are consistent with approval of the upon the President's signing of the bill, and that were not application. In particular, Concord Bank's affilia- immediately prior to the date of enactment of FIRA in violation of section 8 of the Clayton Act. tion with Commercial Bank will provide a source The Board construes Title II of the FIRA bill to require of management expertise to Concord Bank. upon its effective date, which is 120 days after enactment of Therefore, considerations relating to convenience FIRA, the termination of director interlocks such as those that existed between Applicant and the two savings and loan assoand needs factors are consistent with approval of ciations. Since Applicant cannot be a "depository holding the application. On the basis of all the facts of company" prior to a date thirty days after the date of this record, the Board concludes that consummation Order, which date would not precede the date of enactment of FIRA, the interlocking directors would not have been directors of a "depository holding company" that controlled Commercial Bank prior to the date of enactment of FIRA and thus their service as directors of Applicant and the savings and loan associations could not have continued until a date 3 All banking data are as of December 31, 1977. in 1988. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 885 the Order of the Board of Governors, dated April siderations were regarded as adverse due to the 24, 1978, whereby the Board denied the applica- elimination of existing competition was based on tion of Petitioner filed pursuant to section 3(a)(3) an erroneous determination of what constitutes the of the Bank Holding Company Act (12 U.S.C. 4'relevant banking market." In particular, Ellis § 1842(a)(1)) (the "Act"), for Board approval to believes that the coast islands off the mainland of acquire shares of Madeira Beach Bank, Madeira southern Pinellas County, on which Madeira and Beach, Florida ("Madeira Bank"), and the First First Gulf Banks are located, constitute a banking Gulf Beach Bank and Trust Company, St. Peters- market separate from St. Petersburg. In support burg Beach, Florida ("First Gulf Bank"). of its belief, Ellis makes allegations concerning The Board's Rules of Procedure (12 C.F.R. the amounts of commercial interaction and com- § 262.3(g)(5)) provide that the Board will not muting between the mainland and the islands grant any request for reconsideration of its actions where Madeira Bank and First Gulf Bank are on a bank holding company application unless the located. In addition, Ellis presents certain data request presents relevant facts that, for good cause concerning the respective service areas for loans shown, were not previously presented to the and deposits, of the banks involved. No explana- Board, or unless it otherwise appears to the Board tion is given as to why this data was not presented that reconsideration would be appropriate. In its to the Board before it acted.4 Indeed, similar data Order the Board determined that the banks to be concerning service areas of the banks involved was acquired were in the same market as two of Ellis' contained in Ellis' original applications. Furthersubsidiary banks, and that the elimination of ex- more, in a response to the United States Departisting competition between Ellis' subsidiaries and ment of Justice letter commenting unfavorably on the banks to be acquired was an adverse factor the proposal, Ellis stated that it believed the market that was not outweighed by the public convenience to be "Southern Pinellas County South of Route and needs.1 The Board defined the relevant bank- 366." ing market as Southern Pinellas County, Florida, With regard to Ellis' contention that the islands including St. Petersburg City (236,000 population) on which Madeira Bank and First Gulf Bank are and environs. The Board has reviewed the entire located are isolated from the mainland and St. record on this application and has concluded that Petersburg, the Board notes that these islands are this definition of the relevant banking market is included in the St. Petersburg RMA. By definition supported by the extensive commercial intercourse an RMA includes only census tract areas where between St. Petersburg City and other portions of at least 20 per cent of the work force or 8 per Southern Pinellas County, and is also reflected by cent of the general population commutes to work the substantial amount of commuting in that area. in the center city area. In this case, the record In addition, it appears that the Board has consist- reflects that 26 per cent and 38 per cent of the ently applied this definition of the market in other labor force commute to work in St. Petersburg City bank acquisition applications, including two pre- from Madeira Beach and St. Petersburg Beach, vious applications by Ellis to acquire its present respectively. Furthermore, Madeira Bank and First subsidiary banks in the market.2 Finally, this area Gulf Bank are located a maximum of 11 miles comprises a Ranally Metro Area ("RMA"), a from either of Applicant's banking subsidiaries in demographic tool that is often useful to the Board the market, and there are four causeways connectas a guide in approximating banking markets.3 ing the islands to the mainland. Inasmuch as In its petition for reconsideration, Ellis contends consumers are likely to bank near their work, as that the Board's conclusion that competitive con- well as near their home, the substantial commuting 4 In the petition for reconsideration, Ellis' attorneys state 1 It was also determined that there would be no significant that while Ellis may have given the impression that it believed elimination of competition between Madeira Bank and First the market to be Southern Pinellas County, Ellis did so only Gulf Bank in light of the long-standing common ownership because the Federal Reserve Bank of Atlanta asked for data of the two banks. to be provided for Southern Pinellas County. The Board notes 2 See the Board's Order of March 6, 1973 approving Ellis' that while the application was pending, Ellis did not object application to acquire First Park Bank, Pinellas Park, Florida. to the definition of the relevant banking market of Southern See also the Board's Order and Statement of August 17, 1971 Pinellas County, and in fact, Ellis acquiesced in that definition approving Ellis' application to become a bank holding com- in its response to a comment on the application from the United pany. States Department of Justice. The Board believes that it was 3 An RMA includes a central city area and all adjacent areas incumbent upon Ellis to raise its objections to the definition by census tract from which a minimum of 20 per cent of the of the relevant banking market before the Board acted on its labor force or 8 per cent of the general population commutes application, and that it should not have included in its applicadaily to work in the central city. tion statements it did not believe to be accurate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 Federal Reserve Bulletin • November 1978 data indicates that the banks in St. Petersburg and proximating the relevant market constitutes a local the banks on Madeira Beach and St. Petersburg banking market in which banks offer their services Beach should be viewed as reasonable alternatives and to which local customers practicably turn for to one another. This conclusion is supported by alternatives. the fact that there is some overlap of primary The Board has reviewed the request for reconservice areas, particularly for loans, of Ellis sub- sideration and finds that it does not present any sidiary banks and Madeira Bank and First Gulf relevant facts that, for good cause shown, were Bank. Furthermore, two other banks in the market not previously presented to the Board. Moreover, have primary service areas that are coextensive the Board finds that it does not otherwise appear with most of the relevant banking market, includ- that reconsideration of its December 30, 1977 ing the coast islands, and numerous other banks Order would be appropriate. Accordingly, in light in the market have primary service areas that of the above considerations, Petitioner's request substantially overlap those of both Applicant's for reconsideration of the Board's Order of April subsidiaries on one hand, and Madeira Bank and 24, 1978 denying the application of Petitioner to First Gulf Bank on the other. In view of the acquire Madeira Bank and First Gulf Bank should foregoing and its review and analysis of the entire be, and is hereby, denied.5 record in this application, the Board concludes that By order of the Board of Governors, effective Southern Pinellas County is the relevant banking October 27, 1978. market. Ellis also contends that the Board's determi- Voting for this action: Chairman Miller and Governation of the relevant banking market was im- nors Wallich, Jackson, Partee, and Teeters. Absent and not voting: Governors Gardner and Cold well. proper in that under relevant case law the relevant banking market for small accounts is limited to (Signed) GRIFFITH L. GARWOOD, the service areas of the banks involved. The Board [SEAL] Deputy Secretary of the Board. has reviewed the cases cited by Ellis, i.e., United States v. Philadelphia National Bank, 374 U.S. Joy Development Corporation, 321 (1963) and United States v. Phillipsburg National Bank & Trust Co., 399 U.S. 350 (1970). Davenport, Iowa Those cases indicate that the competitive effects Order Approving Acquisition of Bank of a proposed merger or acquisition should be judged in a localized market in which banks offer Joy Development Corporation, Davenport, their services and to which local customers can Iowa, a bank holding company within the meaning practicably turn for alternatives. The Supreme of the Bank Holding Company Act, has applied Court has stated in this regard that "the proper for the Board's approval under § 3(a)(3) of the question is not where the parties to the merger Act (12 U.S.C. § 1842(a)(3)) to acquire 14.9 per do business or even where they compete, but cent of the voting shares of Hillsdale Development where, within the area of competitive overlap, the Corporation, Hillsdale, Illinois ("Hillsdale"), a effect of the merger on competition will be direct one-bank holding company that owns 91.4 per cent and immediate." United States v. Philadelphia of the outstanding voting shares of Old Farmers National Bank, supra. In determining what this & Merchants State Bank, Hillsdale, Illinois area is, the Supreme Court sought "to delineate ("Bank"). the area in which bank customers that are neither Notice of the application, affording opportunity very large or very small find it practical to do their for interested persons to submit comments and banking business, . . ." United States v. Phila- views, has been given in accordance with § 3(b) delphia National Bank, supra. In the Board's view the relevant characteristics of the Southern Pinellas 5 In its petition, Petitioner asserts that if the Board finds County area of Florida, including the substantial that Petitioner and Madeira and First Gulf Banks do not compete in the same banking market and grants reconamount of commuting to work from the islands sideration, the Board should not deny the application on to the mainland and the overlapping service areas reconsideration because it eliminates potential competition. Inasmuch as the Board has reaffirmed that southern Pinellas of Applicant's subsidiary banks, and Madeira County is the relevant banking market in which Petitioner Bank and First Gulf Bank, as well as numerous and Madeira and First Gulf Banks compete, the Board has other banks in Southern Pinellas County, demon- not considered and has not made any determination concerning whether the proposed acquisition would eliminate potential strates that the area defined by the Board as apcompetition among the institutions involved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 887 of the Act. The time for filing comments and views adverse effect upon the financial position of Joy has expired, and the Board has considered the Bank. Banking factors therefore are regarded as application and all comments received in light of consistent with approval. Applicant does not prothe factors set forth in § 3(c) of the Act (12 U.S.C. pose any changes in Bank's operating policies or § 1842(c)). services. Considerations relating to the conven- Applicant is a one-bank holding company that ience and needs of the community to be served owns 89.33 per cent of the outstanding voting are consistent with approval. Accordingly, it is the shares of Joy State Bank, Joy, Illinois ("Joy Board's judgment that the proposed acquisition is Bank"). Joy Bank ($11.4 million in deposits) is consistent with the public interest and that the the 838th largest commercial bank in Illinois and application should be approved. controls approximately 0.02 per cent of total de- On the basis of the record, the application is posits in commercial banks in the State.1 It is the approved for the reasons summarized above. The second largest of five banks operating in the transaction shall not be made before the thirtieth Mercer County banking market, approximated by calendar day following the effective date of this Mercer County, holding approximately 14.7 per Order or later than three months after the effective cent of total market deposits. Acquisition of the date of this Order, unless such period is extended shares of Hillsdale would give Applicant an indi- for good cause by the Board, or by the Federal rect interest in Bank ($7.6 million in deposits) and Reserve Bank of Chicago pursuant to delegated would increase Applicant's share of deposits in authority. commercial banks in Illinois by only 0.01 per cent. By order of the Board of Governors, effective Bank ranks 16th among the 17 banks located October 16, 1978. in the Rock Island banking market, approximated by Rock Island County (the relevant market), and Voting for this action: Vice Chairman Gardner and holds approximately 1.1 per cent of total deposits Governors Wallich, Cold well, Jackson, Partee, and in commercial banks in the market. Bank is located Teeters. Absent and not voting: Chairman Miller. approximately 67 miles northeast of Joy Bank, in (Signed) GRIFFITH L. GARWOOD, a separate banking market. The proposed transac- [SEAL] Deputy Secretary of the Board. tion is primarily a reorganization of existing ownership interests since Applicant is wholly owned by an individual who also owns 30 per cent of National Bancshares Corporation of Texas, the outstanding voting shares of Hillsdale, and San Antonio, Texas Applicant proposes to acquire 14.9 per cent of the Order Approving Acquisition of Bank outstanding voting shares of Hillsdale from Applicant's owner. Moreover, in light of the distance National Bancshares Corporation of Texas, San separating Bank from Joy Bank, and their relative Antonio, Texas, a bank holding company within sizes, no meaningful competition exists between the meaning of the Bank Holding Company Act, Bank and Joy Bank, and it appears unlikely that has applied for the Board's approval under section any significant competition would develop be- 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to tween them in the future. Accordingly, it is the acquire 100 per cent (less directors' qualifying Board's opinion that consummation of the pro- shares) of the voting shares of the successor by posed transaction will have no adverse effect on merger to Brooks Field National Bank, San Ancompetition or on the concentration of banking tonio, Texas ("Bank"). The bank into which Bank resources in any relevant area and that competitive is to be merged has no significance except as a considerations are, therefore, consistent with ap- means to facilitate the acquisition of the voting proval of the application. shares of Bank. Accordingly, the proposed acqui- The financial and managerial resources of Ap- sition of shares of the successor organization is plicant, Joy Bank, Hillsdale, and Bank are re- treated herein as the proposed acquisition of the garded as satisfactory, and the future prospects of shares of Bank. each appear favorable. While Applicant will incur Notice of the application, affording opportunity debt in connection with this proposal, it appears for interested persons to submit views and recomthat Applicant can retire the debt without any mendations, has been given in accordance with section 3(b) of the Act (12 U.S.C. § 1842(b)). 1 Banking data are as of December 31, 1977. The time for filing views and recommendations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 Federal Reserve Bulletin • November 1978 has expired, and the Board has considered the banks in the market would increase to 18.7 per application and all comments received, including cent and Applicant's rank in the market would not those submitted by the United States Department change. of Justice and Kelly Field National Bank of San The Department of Justice has expressed the Antonio, San Antonio, Texas, in light of the opinion that the proposed acquisition would have factors set forth in section 3(c) of the Act (12 an adverse effect on existing competition. The U.S.C. § 1842(c)). Department of Justice bases its opinion upon three Applicant, the eleventh largest banking organi- contentions: (1) Applicant's three banking subsidzation in Texas, controls six banks with total iaries in the San Antonio banking market derive deposits of $655 million,1 representing 1.1 per a large proportion of their demand and savings cent of deposits in commercial banks in the State.2 deposits and installment loans from the service Acquisition of Bank (deposits of $55 million) area of Bank;4 (2) Bank derives a large proportion would increase Applicant's share of deposits in of its commercial loans from the service areas of commercial banks in Texas by 0.1 per cent and these three banking subsidiaries of Applicant;5 and would have no appreciable effect on concentration (3) consummation of the proposal would signifiof banking resources in Texas. cantly increase concentration of banking resources Bank is the thirteenth largest of 46 banking in the San Antonio banking market.6 organizations in the San Antonio banking market3 In response to the first contention of the Departand holds 1.6 per cent of total deposits in com- ment of Justice, Applicant states that of its three mercial banks in that market. Applicant controls subsidiaries in the San Antonio banking market, three banking subsidiaries in the market and is the only one, National Bank of Commerce derives second largest banking organization in the market, more than a very small proportion of its demand controlling 17.1 per cent of total market deposits. and savings deposits and installment loans from Upon consummation of the proposed acquisition, the service area of Bank. National Bank of Com- Applicant's share of total deposits in commercial merce is located in downtown San Antonio, and, according to Applicant, derives little non-com- 1 In addition, the Board on October 6, 1978, approved the mercial business from its downtown service area; acquisition by Applicant of Guaranty National Bank, Houston, rather National Bank of Commerce derives such Texas. business from the four residential areas of San 2 All banking data are approximate and as of December 31, 1977, and reflect bank holding company formations and acqui- Antonio. Applicant states that the percentages of sitions approved as of June 30, 1978. demand and savings deposits and installment loans 3 The relevant banking market is the San Antonio banking derived by National Bank of Commerce from the market which is approximated by the San Antonio Standard Metropolitan Statistical Area, comprised of Bexar, Comal, and service area of Bank are rrluch less than the per- Guadalupe Counties, Texas. The Department of Justice con- centage of the population of San Antonio that lives tends that the San Antonio SMSA overstates the relevant in Bank's service area. In response to the second banking market, which it believes is more appropriately defined as Bexar County only. The Board has previously determined contention of the Department of Justice, Applicant that the San Antonio SMSA is the appropriate market for states that the service areas of its three banking analyzing the competitive effects of proposed acquisitions in the San Antonio banking market. See the Board's Order dated subsidiaries in the San Antonio banking market April 29, 1977, denying the application of Texas Commerce encompass the major portion of that market and Bancshares, Inc., Houston, Texas, to acquire Bexar County National Bank of San Antonio, San Antonio, Texas (63 FED- ERAL RESERVE BULLETIN 504 n.2 (1977)). The United States 4 The Department of Justice advises that Applicant's three Supreme Court has noted that delineation of a relevant market subsidiary banks in the San Antonio banking market draw from with scientific precision is neither possible nor necessary, Bank's service area 11.5 per cent of the number and 6.7 per United States v. Connecticut National Bank, 418 U.S. 656, cent of the dollar volume of their demand deposits held for 669 (1974), and the Court has noted that some "fuzziness the accounts of individuals, partnerships, and corporations, would seem inherent in any attempt to delineate the relevant 14.8 per cent of the number and 11.1 per cent of the dollar geographical market," United States v. Philadelphia National volume of their total installment loans, and ten per cent of Bank, 374 U.S. 321, 360 n.37 (1963). The Department of the number and 5.3 per cent of the dollar volume of their Justice advises that Bexar County deposits represent 94.8 per total savings accounts. cent of total deposits in the San Antonio SMSA. The San 5 The Department of Justice advises that Bank derives Antonio SMSA is not an inappropriate approximation of the approximately 53 per cent of its commercial loans of more relevant banking market even if Bexar County were deemed than $50,000 from the service areas of Applicant's three to be the market. Indeed, if the San Antonio SMSA does subsidiary banks in the San Antonio market. overstate the market area, such overstatement is so slight that 6 The Department of Justice advises that consummation of the existing shares of total market deposits of Applicant and the proposal would increase the combined market shares of Bank would be understated by an amount less than one per the four largest banking organizations in Bexar County from cent each. 59.2 per cent to 60.9 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 889 include the vast majority of commercial establish- The financial and managerial resources and fuments in that market. Applicant states that 43 ture prospects of Applicant, its subsidiary banks, commercial banks make loans in the service areas and Bank are regarded as generally satisfactory, of its three banking subsidiaries and estimates that particularly in light of Applicant's intention to Bank's total commercial loans made in those areas retain $240 thousand of interim bank capital in represent less than two per cent of the total com- Bank after the merger of Bank with its successor mercial loans in those areas. In response to the by merger. Thus considerations relating to banking third contention of the Department of Justice, factors weigh toward approval of the application. Applicant states that the concentration of banking Applicant proposes to expand or introduce a resources in the San Antonio banking market is number of services at Bank, including real estate relatively low, with Bexar County ranking nine- lending which is expected to increase with the teenth among the twenty largest metropolitan establishment of a real estate department at Bank. counties in Texas with respect to market shares Applicant also plans to strengthen Bank's comheld by the four largest banks in each market. mercial lending services. Affiliation with Appli- The Board has considered carefully the com- cant will enable Bank to expand its various lending ments of the Department of Justice and is unable functions. Thus considerations relating to the conto conclude that consummation of the proposal venience and needs of the community to be served would have significantly adverse competitive ef- lend weight toward approval of the application fects. Although the proposed acquisiton would and, in the Board's judgment, clearly outweigh eliminate some existing competition and increase any slightly adverse effects on competition that somewhat the concentration of banking resources might result from consummation of the proposal. in the San Antonio banking market, the Board does It is the Board's judgment that approval of the not view such effects as being of serious signifi- application would be in the public interest and that cance. Three of the five largest banking organi- the application should be approved. zations in Texas are represented in the market and On the basis of the record, the application is are among the eight largest banking organizations approved for the reasons summarized above. The in the market. In spite of a relatively high degree transaction shall not be made before the thirtieth of bank holding company activity in the market, calendar day following the effective date of this the market has one of the smallest four-firm con- Order, or later than three months after the effective centration ratios of all SMSAs in Texas and would date of this Order unless such period is extended have, after the proposed acquisition, the third for good cause by the Board, or by the Federal smallest such concentration ratio of the four pri- Reserve Bank of Dallas pursuant to delegated mary banking markets in Texas. There has been authority. no trend toward increased concentration in the San By order of the Board of Governors, effective Antonio banking market. While consummation of October 11, 1978. the proposal would reduce the number of independent banking organizations in the market, this Voting for this action: Chairman Miller and Goverdoes not appear to be significant since a number nors Wallich, Coldwell, Jackson, Partee and Teeters. of independent banks would remain. In light of Absent and not voting: Governor Gardner. the above and other facts of record, the Board concludes that the proposed acquisition would (Signed) GRIFFITH L. GARWOOD, have only slightly adverse effects on competition [SEAL] Deputy Secretary of the Board. and, in light of the considerations discussed below, the Board does not view such effects as being so not appear that Applicant would alter Bank's policies in this serious as to require denial of this proposal.7 regard. To the contrary, it appears that Bank would continue to offer predominantly consumer and commercially oriented banking services rather than services aimed exclusively at 7 Kelly Field National Bank of San Antonio, San Antonio, military customers. Texas ("Kelly Bank"), in objecting to this application, alleges Several banks in the San Antonio banking market, including that Applicant is attempting to monopolize the military banking one of Applicant's subsidiary banks and Kelly Bank, are market in the San Antonio banking market by acquiring banks located near and/or have an office on military bases in the in close proximity to military installations. Bank is located San Antonio area. The Board concludes that Applicant is not four miles from the nearest military base and has an office currently dominant among the banking organizations serving on that base. Bank reports that only 2.4 per cent of its military personnel in the San Antonio area and that the acquicustomers are military personnel. Thus, it appears that Bank sition of Bank will not significantly enhance Applicant's posidraws its customers from the general population, and it does tion in this regard. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

890 Federal Reserve Bulletin • November 1978 Pioneer Bancorporation, Inc., proposal on competition are consistent with ap- Denver, Colorado proval of this application. The Board has indicated on previous occasions Order Approving that a holding company should constitute a source Formation of Bank Holding Company of financial and managerial strength to its subsidiary bank(s), and that the Board will examine Pioneer Bancorporation, Inc., Denver, Colo- closely the condition of the applicant in each case rado, has applied for the Board's approval under with this consideration in mind. In this connection § 3(a)(1) of the Bank Holding Company Act (12 the Board notes that Bank has experienced a num- U.S.C. § 1842(a)(1)) of formation of a bank ber of problems in recent years, partly as a result holding company by acquiring 98.45 per cent of of policies attributed to the past and present owners the voting shares of Colfax National Bank of and management of Bank. Applicant proposes to Denver, Denver, Colorado ("Bank"). place into Bank's management individuals who Notice of the application, affording opportunity have demonstrated a satisfactory record of manafor interested persons to submit comments and gerial performance in other banking organiviews, has been given in accordance with § 3(b) zations.4 In addition, Applicant proposes to revise of the Act. The time for filing comments and views Bank's operating policies and, pursuant to a comhas expired, and the Board has considered the mitment to the Board made in connection with this application and all comments received in light of proposal, Applicant has taken steps to ensure that the factors set forth in § 3(c) of the Act (12 U.S.C. Bank's present owner and members of his family § 1842(c)). will not hold any office or position with Applicant Applicant, a non-operating Colorado corpora- or any of its subsidiaries. In view of the facts and tion with no subsidiaries, was formed for the commitment discussed above, it appears that the purpose of becoming a bank holding company by proposed transaction should result in a significant acquiring Bank. Bank, with deposits of $16.3 improvement in the management of Bank. Acmillion, ranks 128th in size among 288 banks in cordingly, the Board concludes that managerial the State of Colorado and holds 0.17 per cent of factors lend significant weight toward approval of total deposits in commercial banks in the State.1 the application. With only 0.29 per cent of total deposits in com- Bank would be in generally satisfactory finanmercial banks in the Denver banking market,2 cial condition upon implementation of Applicant's Bank is one of the smallest of 81 banking organiproposal to change Bank's management and zations operating in the relevant market.3 Applioperating policies. The Board notes that Applicant cant controls no other banks. will incur a sizable amount of debt to finance its One of Applicant's principals is also chairman acquisition of shares of Bank. Applicant proposes of FirstBank Holding Company, Lakewood, Col- to repay that debt over a 12-year period through orado ("FirstBank") and each of its ten subsidiary dividends on bank stock and tax benefits derived banks. Three of FirstBank's subsidiary banks are from filing a consolidated return. Additional filocated in the Denver market and control, in the aggregate, 1.63 per cent of deposits therein. In view of the small combined market share of the three FirstBank banks and Applicant and the large 4 Two of these individuals are principals of Applicant and number of banking alternatives in the market, it are associated with two other multibank holding companies appears that consummation of the proposed trans- in Colorado. One principal serves as secretary of Mountain action would have no significant adverse effect on Financial Services, Inc., Denver, Colorado ("Mountain Financial"), but will resign this position upon approval of the competition or concentration in any relevant area. subject application. Another principal, as noted at page 2 Thus, the Board concludes that the effects of the above, is Chairman of FirstBank Holding Company, Lakewood, Colorado, and each of its subsidiary banks. The Board has previously indicated that, in considering an application by a bank holding company whose principals are involved in the management of other banks, it should look beyond the bank that is the subject of the application and analyze the financial 1 All banking data are as of December 31, 1977. and managerial resources of the other banks. (See, e.g., 2 The Denver banking market is approximated by all of Board's Order of June 14, 1976, denying the application of Denver, Adams, Arapahoe, and Jefferson counties, and the Nebraska Banco, Inc., Ord, Nebraska, 62 Federal Reserve Broomfield area of Boulder County, all in Colorado. Bulletin 638 (1976)). In this case, the financial and managerial 3 Bank is not among the 20 largest banking organizations resources of both Mountain Financial and FirstBank are reoperating in the Denver market. garded as satisfactory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 891 nancing for the acquisition will be derived from stances of this case, the Board regards consid- Applicant's issuance of redeemable, non-voting erations relating to banking factors as favoring preferred stock to Bank's present owners.5 In approval of the application. addition, the present owner will guarantee 75 per Applicant proposes to concentrate Bank's lendcent of the bank stock loan that Applicant is ing in its primary service area, review Bank's loan obtaining to finance its acquisition of Bank's policies, and change the management of Bank. shares during the first year of repayment, 50 per The Board finds that although other proposals to cent during the second year, and 25 per cent during transfer control of Bank may be more desirable the third year. However, it appears that Applicant than the one presented here, the subject proposal would be able to service its debt without adversely is the most appropriate means now available to affecting Bank's capital, in view of certain com- improve the overall position and operations of mitments that Applicant has made to the Board. Bank. Accordingly, considerations of the conven- Pursuant to these commitments, Applicant will not ience and needs of the community to be served authorize or pay any dividends on its common lend weight toward approval of the application. stock until the bank stock loan obtained by Appli- On the basis of the record, the application is cant for the purpose of financing its acquisition approved for the reasons and subject to the condiof shares of Bank is repaid in full and amortized tions summarized above. The transaction shall not without the substitution of other debt for the origi- be made (a) before the thirtieth calendar day folnal bank stock loan or any portion thereof. Further, lowing the effective date of this Order or (b) later no dividends will be paid on Applicant's preferred than three months after the effective date of this stock unless Bank's gross capital, which includes Order, unless such period is extended for good shareholders' equity, valuation reserves and capi- cause by the Board, or by the Federal Reserve tal notes, is equal to at least 8 per cent of Bank's Bank of Kansas City pursuant to delegated autotal assets. Finally, none of Applicant's preferred thority. stock shall be redeemed by Applicant until the By order of the Board of Governors, effective bank stock loan obtained by Applicant for the October 20, 1978. purpose of financing its acquisition of Bank's shares is repaid in full and amortized without Voting for this action: Chairman Miller and Goversubstitution of other debt for the original bank nors Wallich, Cold well, Jackson, Partee, and Teeters. stock loan or any portion thereof. Thereafter, any Absent and not voting: Governor Gardner. redemption of Applicant's preferred stock shall be (Signed) GRIFFITH L. GARWOOD, made only after 45 days prior notice to the Federal [SEAL] Deputy Secretary of the Board. Reserve Bank of Kansas City.6 Furthermore, no redemption of Applicant's preferred shares shall be made unless Bank's gross capital, after such redemption, would remain equal to at least 8 per The Retirement Research Foundation cent of Bank's total assets, or such lesser capital Park Ridge, Illinois to assets ratio as the Federal Reserve Bank of Order Approving Kansas City deems appropriate. In view of these Formation of Bank Holding Company conditions, all of which have been agreed to by Applicant, the Board concludes that the future The Retirement Research Foundation, Park prospects of Applicant and Bank appear favorable. Ridge, Illinois, ("Applicant") has applied for the Therefore, taking into account all the circum- Board's approval under § 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) 5 By its action in this case, the Board does not intend to of formation of a bank holding company by reencourage others to finance acquisitions by incurring such sub- taining 99 per cent of the voting shares of Citistantial debt or issuing redeemable, non-voting preferred zens Bank and Trust Company, Park Ridge, Illistock, which has debt-like characteristics. However, the commitments made by Applicant in this case would reduce the nois ("Bank"). risks associated with such debt and preferred shares. Moreover, Notice of the application, affording opportunity the Board regards the need for new management in Bank as a significant countervailing consideration in this case. for interested persons to submit comments and 6 Such notification is to be made in accordance with the views, has been given in accordance with § 3(b) procedures specified in section 225.6 of the Board's Regula- of the Act. The time for filing comments and tion Y (12 C.F.R. § 225.6) regarding the purchase or redemption by a bank holding company of its own shares. views has expired, and the Board has considered Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 Federal Reserve Bulletin • November 1978 the application and all comments received in light and Bank's managerial resources are also satisof the factors set forth in § 3(c) of the Act (12 factory.4 Therefore, considerations relating to U.S.C. § 1842(c)). banking factors are regarded as being consistent Applicant, a tax-exempt charitable foundation with approval. under § 501(c)(3) of the Internal Revenue Code, While no major changes are contemplated in is not engaged in any business activities. Rather, Bank's services, considerations relating to con- Applicant is engaged solely in the funding of re- venience and needs of the community to be search regarding the problems of retired workers, served are consistent with approval. Accordingly, although it has been semi-dormant since its cre- it is the Board's judgment that Applicant's proation in 1950.1 Applicant acquired legal title to posal to form a bank holding company would be the shares of Bank on January 14, 1978, as a re- consistent with the public interest and the applicasult of the death of Bank's principal shareholder. tion should be approved. The shares of Bank were placed in a revocable On the basis of the record, the application is trust for Applicant by this individual during his approved for the reasons summarized above. lifetime and upon his death legal title to the shares By order of the Board of Governors, effective became vested in Applicant. Applicant now seeks October 27, 1978. the Board's approval to retain these shares. Bank ($367 million in deposits), is the 11th Voting for this action: Chairman Miller and Goverlargest bank in Illinois, with approximately 0.5 nors Wallich, Jackson, Partee, and Teeters. Absent and per cent of total deposits in commercial banks in not voting: Governors Gardner and Cold well. the State.2 Bank is also the 11th largest banking (Signed) GRIFFITH L. GARWOOD, institution in the relevant market,3 holding ap- [SEAL] Deputy Secretary of the Board. proximately 0.8 per cent of total deposits in commercial banks in that market. Since Applicant has no other banking subsidiaries, and its trustees are Security Bancshares, Inc., not associated with any other bank, retention of Tulsa, Oklahoma Bank would not have any adverse effects upon ei- Order Approving ther existing or potential competition nor would Formation of Bank Holding Company it increase the concentration of banking resources in any relevant area. Thus, the Board concludes Security Bancshares, Inc., Tulsa, Oklahoma, that the competitive effects of the proposal are has applied for approval, under section 3(a)(1) of consistent with approval of the application. the Bank Holding Company Act of 1956 (12 The financial resources and future prospects of U.S.C. § 1842(a)(1)), to become a bank holding Applicant, which are dependent upon those of company through the acquisition of all of the vot- Bank, appear satisfactory and are regarded as ing shares, less directors' qualifying shares, of being consistent with approval of the application Security Bank ("Bank"), Tulsa, Oklahoma. to become a bank holding company. Based on the Notice of the application, affording opportunity record, the Board also concludes that Applicant's for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act (43 Federal Register 41086 1 The legislative history of the 1966 Amendments to the Act indicates that while Congress generally intended to subject trusts and charitable institutions to the Act's provisions, the solely charitable functions of such organizations existing at 4 In making its analysis of Applicant's managerial rethat time were not to be regarded as "activities" within the sources, the Board notes that this application includes an aftermeaning of the prohibitions of section 4 of the Act. S. Rep. the-fact request for the Board's approval to retain bank shares No. 1179, 89th Cong., 2d Sess. 3 (1966). Although the solely acquired in violation of the Act. Upon examination of all the charitable functions of charitable organizations existing at the facts surrounding the acquisition of Bank's shares without time of the 1966 Amendments are not to be regarded as "ac- prior Board approval, it appears that denial of the application tivities," such organizations are subject to all of the Act's is not warranted. In acting upon the application, the Board other provisions. Moreover, it is possible that an application has taken into consideration the fact that Applicant has atto become a bank holding company by such an organization tempted to conform its operations to the Act by promptly filcould raise issues not contemplated by Congress if it is not ing this application. In addition, Applicant's management has clearly and exclusively the type of organization described in taken steps to insure that violations will not occur in the futhe legislative history. ture, including the initiation of a program under the direction 2 All banking data are as of December 31, 1977. of an individual responsible for ensuring that Applicant's man- 3 The Chicago banking market, the relevant market, is ap- agement is aware of its responsibilities under the Bank Holdproximated by all of Cook and DuPage Counties, and the ing Company Act. The Board expects that these actions will southern portion of Lake County, Illinois. enable Applicant to avoid any future violations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 893 (1978)). The time for filing comments and views pany standards in assessing the financial and manhas expired and the application and all comments agerial resources and future prospects both of an received have been considered in light of the fac- applicant seeking to become a one-bank holding tors set forth in section 3(c) of the Act (12 U.S.C. company and of its proposed subsidiary bank.3 § 1842(c)). Based upon such analysis in this case, the finan- Applicant is a nonoperating corporation with no cial and managerial resources and future prospects subsidiaries, organized for the purpose of becom- of Applicant, Bank, and the affiliated banks and ing a bank holding company through the acquisi- bank holding company appear to be generally tion of Bank, which has deposits of $16.5 mil- satisfactory, particularly in light of Applicant's lion.1 Upon acquisition of Bank, Applicant would commitment to inject additional capital into Bank. control the 184th largest bank in Oklahoma, con- The future prospects of Applicant are entirely detrolling 0.13 per cent of the total deposits in com- pendent upon the resources of Bank. Applicant mercial banks in the State. proposes to service the debt to be incurred over Bank is the 31st largest of 46 banks in the a 12-year period through dividends received from Tulsa banking market,2 controlling 0.51 per cent Bank. In light of past earnings of Bank, the anticof market deposits. This proposal involves re- ipated growth in Bank earnings appears to provide structuring of Bank's ownership from individuals to Applicant with sufficient financial flexibility to a corporation controlled by the same individuals. meet its annual debt servicing requirements, while Principal owners, officers and directors of Appli- maintaining an adequate capital position for cant and Bank are associated with two other Bank. Therefore, considerations relating to bankbanks and a one-bank holding company located ing factors in regard to this proposal are consistin Bank's market. The combined total deposits of ent with approval of the application. Bank and the affiliated banks amount to $81.7 Although consummation of the proposal would million, which is 2.54 per cent of total market effect no changes in the banking services offered deposits. This combined market share does not by Bank, considerations relating to the convenrepresent an adverse concentration of banking re- ience and needs of the community to be served sources. Furthermore, Applicant's principal lend some weight for approval. Bank was organowners, officers, and directors were among the ized in 1974 in response to a growing demand principal organizers of all three banks and it ap- for banking services on the eastern side of Tulsa. pears that such de novo entry had pro-competitive It has been determined that consummation of the effects by providing three new banking alterna- transaction would be in the public interest and tives within the market. While approval of the that the application should be approved. subject proposal would further solidify the exist- On the basis of the record, the application is ing relationship between Bank and the two affi- approved for the reasons summarized above. The liated banks and reduce the likelihood that Bank transaction shall not be consummated before the would become an independent competitor in the thirtieth day following the effective date of this future, based upon the facts of record, including Order, or later than three months after the effecthe size and rank in the market of the banks and tive date of this Order unless such period is exthe presence of other banking alternatives in the tended for good cause by the Board of Governors Tulsa banking market, it appears that consumma- or by the Federal Reserve Bank of Kansas City tion of this proposal would not result in any sig- pursuant to delegated authority. nificant adverse effects upon competition in any By order of the Secretary of the Board, acting relevant area. Thus, competitive factors are con- pursuant to delegated authority from the Board of sistent with approval. Governors, effective October 31, 1978. Where principals of an applicant are engaged in operating a chain of one-bank holding compa- (Signed) JOHN M. WALLACE, nies, the Board applies multi-bank holding com- [SEAL] Assistant Secretary of the Board. All banking data are as of December 31, 1977. 2 The Tulsa banking market is approximated by the Tulsa 3 See, e.g., Nebraska Banco, Inc., 62 FEDERAL RESERVE RMA. BULLETIN 638 (1976). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 Federal Reserve Bulletin • November 1978 Tulbancorp, Inc., The financial and managerial resources of Ap- Tulsa, Oklahoma plicant, which are largely dependent upon those of Bank, are considered generally satisfactory, and Order Approving their future prospects appear favorable. Although Formation of Bank Holding Company Applicant will incur some debt in connection with this proposal, it appears that income to be derived Tulbancorp, Inc., Tulsa, Oklahoma, has applied from Bank would provide Applicant sufficient for the Board's approval under section 3(a)(1) of revenue to service the debt while maintaining the Bank Holding Company Act (12 U.S.C. acceptable capital levels at Bank. § 1842(a)(1)) of formation of a bank holding company by acquiring all the voting shares (less Although consummation of the proposal would directors' qualifying shares) of Bank of Tulsa effect no changes in the banking services offered ("Bank"), Tulsa, Oklahoma. by Bank, considerations relating to the convenience and needs of the community to be served Notice of the application, affording opportunity are consistent with approval of the application. It for interested persons to submit comments and has been determined that consummation of the views, has been given in accordance with section transaction would be in the public interest and that 3(b) of the Act. The time for filing comments and the application should be approved. views has expired, and the Board has considered the application and all comments received in light On the basis of the record, the application is of the factors set forth in section 3(c) of the Act approved for the reasons summarized above. The (12 U.S.C. § 1842(c)). transaction shall not be made before the thirtieth Applicant is a nonoperating corporation organ- calendar day following the effective date of this ized for the purpose of acquiring Bank, which Order or later than three months after the effective holds deposits of $32 million.1 Upon acquisition date of this Order, unless such period is extended of Bank, Applicant would control the 83rd largest for good cause by the Board, or by the Federal banking organization in Oklahoma and approxi- Reserve Bank of Kansas City pursuant to delegated mately 0.2 per cent of the total deposits in com- authority. mercial banks in the State. By order of the Board of Governors, effective Bank is the 17th largest of 46 banks competing October 16, 1978. in the Tulsa banking market,2 holding approximately 1.0 per cent of the total deposits in com- Voting for this action: Vice Chairman Gardner and mercial banks in that market. This proposal repre- Governors Wallich, Cold well, Jackson, Partee, and Teeters. Absent and not voting: Chairman Miller. sents a restructuring of the existing ownership of Bank from individuals to a corporation owned by (Signed) GRIFFITH L. GARWOOD, the same individuals. Since Applicant has no other [SEAL] Deputy Secretary of the Board. subsidiaries and Applicant is not under common control with any other bank,3 it appears that con- United Bank Corporation of New York, summation of the proposed transaction would have Albany, New York no adverse effect on competition or concentration of banking resources in any relevant area. Thus, Order Denying Acquisition of Bank the Board concludes that the effects of this pro- United Bank Corporation of New York, Albany, posal on competition are consistent with approval New York, a bank holding company within the of the application. meaning of the Bank Holding Company Act ("Act"), has applied for the Board's approval 1 All banking data are as of December 31, 1977. 2 The Tulsa banking market is approximated by the Tulsa under section 3(a)(3) of the Act (12 U.S.C. RMA. § 1842(a)(3)) to acquire all the voting shares of 3 Three individuals who will own 26.4 per cent of Appli- the successor by merger to The Schenectady Trust cant's voting shares are also directors of First Tulsa Bancorporation ("First Tulsa") and its subsidiary, First National Bank Company ("Bank"), Schenectady, New York.1 and Trust Company of Tulsa, the largest bank in the Tulsa banking market. None of these individuals is an officer or 1 In conjunction with this application, Applicant has redirector of Applicant or Bank and their combined ownership quested prior approval to merge 320 State Street Bank, Schein First Tulsa is less than 5 per cent of the outstanding voting nectady, New York, with The Schenectady Trust Company, shares. In view of the limited nature of the relationship between Schenectady, New York, under the charter of the former and Applicant and First Tulsa, the Board has concluded that the with the title of The Schenectady Trust Company, pursuant relationship between Applicant and First Tulsa has no signifi- to § 18(c) of the Federal Deposit Insurance Act, 12 U.S.C. cant effect on competition. § 1828(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 895 The bank into which Bank is to be merged has Albany, New York, is the second largest banking no significance except as a means to facilitate the organization in that market, controlling 20.1 per acquisition of the voting shares of Bank. Accord- cent of market deposits. Consummation of the ingly, the proposed acquisition of shares of the proposed transaction would increase Applicant's successor organization is treated herein as the already significant share of deposits in the market proposed acquisition of the shares of Bank. to 28.3 per cent and would cause Applicant to Notice of the application, affording opportunity become the largest banking organization in the for interested persons to submit comments and market. Consummation of the proposal would also views, has been given in accordance with section increase the percentage of deposits held by the 3(b) of the Act. The time for filing comments and three largest banking organizations in the market views has expired, and the Board has considered from approximately 60.3 per cent to 67.9 per cent. the application and all comments received in light The Board views this increase in concentration of of the factors set forth in section 3(c) of the Act banking resources as a significant adverse effect (12 U.S.C. § 1842(c)). on competition in the Albany market. Applicant, the fifteenth largest commercial In addition to the adverse effects on concentrabanking organization in the State of New York, tion of resources, it appears that consummation controls four banks with aggregate deposits of of the proposal would have substantially adverse approximately $1.3 billion, representing 1.0 per effects upon competition within the Albany bankcent of the total deposits held by commercial banks ing market. As noted above, Applicant is already in that State.2 Acquisition of Bank (deposits of well represented in the relevant market through approximately $166.5 million) would increase its lead bank. The record indicates that substantial Applicant's share of statewide deposits by ap- existing competition would be eliminated by Approximately 0.1 per cent and would not alter plicant's acquisition of Bank. Furthermore, the Applicant's ranking among the other banking or- proposed acquisition would foreclose the possiganizations in the State. Accordingly, consumma- bility of increased competition between Applicant tion of this proposal would not result in a signifi- and Bank in the future. Applicant presently has cant increase in the concentration of commercial no offices in Schenectady County and has the banking resources in New York. financial and managerial resources to expand de Bank, the third largest banking organization in novo into this area. In addition, the proposal would the Albany banking market,3 controls approxi- remove Bank as a potential entry vehicle into the mately 8.2 per cent of market deposits. Applicant, relevant market by New York bank holding comthrough its lead bank, State Bank of Albany, panies not currently represented in the market. Applicant contends that in order to realistically evaluate competition and concentration of re- 2 All deposit data are as of June 30, 1977. 3 The Albany banking market consists of Albany, Schenec- sources in the relevant market, the Board can no tady and Rensselaer Counties plus the towns of Clifton Park, longer distinguish commercial banks from savings Halfmoon, Waterford, Malta, Stillwater, Mechanicville, Ball- banks and other thrift institutions in New York ston, Charlton, Galway and Milton in Saratoga County. Apwith respect to providing banking services. In this plicant contends that Schenectady County is itself a separate and distinct banking market and, therefore, acquisition of Bank regard, the Board has for some time recognized would not have an adverse impact on existing competition in that the presence of thrift institutions in a market the Albany market. However, commuting data indicate that a significant portion of the employed residents of Schenectady is one of the many factors that must be taken into County work outside Schenectady County, with 17.6 per cent consideration when evaluating the competitive efcommuting to Albany County alone. These data demonstrate fects of a particular acquisition.4 With respect to that Schenectady County is not a separate or distinct banking market but rather part of the Albany banking market. Applicant the subject proposal, the Board notes that in New further contends that a portion of northwestern Albany County York, thrift institutions have been able to offer is actually part of the Schenectady banking market, as defined by Applicant. However, commuting data indicate that at least demand deposit accounts to customers in amounts 15 per cent of the labor force from such area commutes into up to $1,000 since May of 1976. In addition, it the City of Albany, which is indisputably outside Applicant's appears that commercial banks and thrift institusuggested market. Finally, with the exception of one bank, all commercial banks with offices in Schenectady County also tions do compete in the marketing of certain other have offices in Albany County, and rates on selected services of such banks are similar in both the Schenectady County and Albany County offices. From these and other facts of record, 4 See e.g., the Board's Order approving the merger of the Board concludes that the Albany banking market is the Northeast Bancorp, New Haven, Connecticut, with First Conrelevant banking market for purposes of analyzing the compet- necticut Bancorp, Hartford, Connecticut, 60 FEDERAL RESERVE itive effects of this proposal. BULLETIN 375 (1974). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

896 Federal Reserve Bulletin • November 1978 types of services. However, commercial banks in Dissenting Statement of Governor Wallich New York continue to have significantly broader powers than thrift institutions despite their recently I would approve the application of United Bank expanded powers. The Board believes that the Corporation of New York, to acquire the Schenecoverlap of certain services offered by thrift institutady Trust Company because I do not believe tions and commercial banks is not so great at this that such an acquisition would have significant time as to treat the two types of financial instituadverse effects on competition within the Albany tions as if they were the same. The Board conmarket. Those elements of the case that seem tinues to be of the view that it is the cluster of anticompetitive to the majority are, in my view, products and services that commercial banks offer mitigated by the significant participation of thrift that makes commercial banking a distinct line of institutions in the market, owing to their expanded commerce for purposes of analyzing the competipowers. Thrift institutions in New York have estive effects of the subject proposal. Thus, having tablished a strong presence in the State market for considered all of the facts of record in this case, nonbusiness demand deposits, as evidenced by the the Board concludes that consummation of the growth of their share in that market, in terms of proposed transaction would have significant addollars, from 1.4 per cent to 6.8 per cent since verse effects on competition in the Albany market. June 1976. In terms of number of accounts in the The financial and managerial resources and fu- State that growth has been from 4.1 per cent to ture prospects of Applicant, its subsidiaries, and 17.2 per cent. In the Albany market, the growth Bank are regarded as satisfactory and consistent of their share, in terms of dollars, has been from with approval of the application. Accordingly, 3.8 per cent to 13.2 per cent over the same period. banking factors are consistent with approval of the Thrift institution dominance of nonbusiness time subject application. and savings deposits in the State has continued, Although there is no evidence in the record that growing from 67.5 per cent in 1970 to 70.4 per the banking needs of the Albany banking market cent in 1977. are not being adequately met, Applicant proposes Although thrift institutions are not permitted to to expand the range of services presently offered provide most services to businesses, certain types by Bank. While certain benefits to the convenience of consumer lending, or trust services, it appears and needs of the communities to be served might that other factors diminish the importance of these result from Applicant's acquisition of Bank, simiactivities in the overall delineation of the product lar benefits could also result from entry by less market. For example, studies have shown that anticompetitive means. Therefore, although conloans to firms beyond a relatively small size tend siderations relating to the convenience and needs to be made in the regional or national market, of the community to be served lend some weight rather than the local market. Business can draw to approval, they do not clearly outweigh the also on trade credit as another source of credit. significant anticompetitive effects that would result This suggests that the impact on competition of from approval of the subject proposal. the proposed acquisition would be less severe than On the basis of all relevant facts of record, it in the absence of such factors. Other evidence that is the Board's judgment that consummation of the mortgage lending is fungible and permits the fiproposed transaction would not be in the public nancing of consumer expenditures through the interest, and the application should be and hereby mortgage of homes implies that certain consumer is denied.5 credit services are in fact available from thrifts. By order of the Board of Governors, effective This likewise indicates that the competitive impact October 3, 1978. of the acquisition would be less severe than in the absence of such factors. For these reasons, I Voting for this action: Chairman Miller and Goverwould include thrift institutions in the competitive nors Gardner, Cold well, Jackson, Partee, and Teeters. Voting against this action: Governor Wallich. analysis to a much greater extent than does the majority in this case. I would conclude that, be- (Signed) GRIFFITH L. GARWOOD, cause thrifts now offer a diversified group of [SEAL] Deputy Secretary of the Board. banking products and services in direct competis In view of the Board's action in this case, Applicant's tion with commercial banks, the competitive proposals to merge 320 State Street Bank with The Schenectady strength of commercial banks is diminished, re- Trust Company and for membership in the Federal Reserve ducing the anticompetitive character of the acqui- System of 320 State Street Bank are rendered moot. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 897 sition. Therefore, I am of the view that consum- 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and mation of this proposal would have only slightly section 225.4(b)(2) of the Board's Regulation Y adverse competitive effects. (12 C.F.R. § 225.4(b)(2)) for permission to ac- I further concur with the point that the presence quire 80 per cent or more of the outstanding voting of several of the State's large bank holding com- shares of Citizens & Southern Life Insurance panies with offices in the market enhances compe- Company, Houston, Texas ("Company"). Comtition, despite the relatively small market share of pany will engage in underwriting activities for each. Competitive powers of such institutions credit life and credit accident and health insurance cannot be measured solely by their market share. directly related to extensions of credit by the Acquisition of the Schenectady Trust Company Applicant's banking subsidiaries. Such activities would strengthen Applicant and enable it to com- have been determined by the Board to be closely pete more effectively with the State's larger bank- related to banking (12 C.F.R. § 225.4(a)(10)). ing organizations that are represented in the mar- Notice of the applications, affording opportunity ket. for interested persons to submit views and recom- Applicant plans, amopg other things, to cause mendations, has been given in accordance with Bank to expand its lending activities, to commit sections 3 and 4 of the Act. The time for filing itself to partial financing of a redevelopment proj- views and recommendations has expired, and the ect in the City of Schenectady, and to reduce its Board has considered the applications and all rate for credit-related insurance coverage. Thus, comments received in light of the factors set forth in my opinion, considerations relating to the con- in section 3(c) of the Act (12 U.S.C. § 1842(c)) venience and needs of the community to be served and the considerations set forth in section 4(c)(8) tend to outweigh any slightly adverse competitive of the Act (12 U.S.C. § 1843(c)(8)). effects that would result from the acquisition of Applicant, a nonoperating company with no Bank by Applicant. subsidiaries, was organized for the purpose of In this case, the evidence supporting the tradi- becoming a bank holding company through the tional analysis of competition within the market acquisition of Republic Bank ($76 million in deis not strong enough to dispel the questions raised posits) and Colonial Bank ($18 million in deposby the Applicant concerning the validity of that its), and to engage in the underwriting of credit analysis. Therefore, I cannot support the major- life and credit accident and health insurance diity's decision and I would approve the application. rectly related to extensions of credit by the banking subsidiaries through the acquisition of Company.1 Upon the acquisition of Banks, Applicant would become the 61st largest banking organization in ORDERS UNDER SECTIONS 3 AND 4 Texas, controlling approximately 0.1 per cent of OF BANK HOLDING COMPANY ACT total deposits in commercial banks in the State. Republic National Bancshares, Inc., Republic Bank and Colonial Bank are both Houston, Texas located in the Houston banking market,2 and rank, respectively, as the 25th and the 90th largest of Order Approving 122 banking organizations in the market, control- Formation of Bank Holding Company and ling 0.5 and 0.1 per cent, respectively, of market Acquisition of Company to Engage in the deposits. The subject proposal involves a restruc- Underwriting of Credit-Related Insurance turing of Banks' ownership from individuals to a Republic National Bancshares, Inc., Houston, corporation controlled by those same individuals. Since Colonial Bank was established de novo by Texas, has applied for the Board's approval under principals of Republic Bank in September 1975, section 3(a)(1) of the Bank Holding Company Act there was no elimination of competition at that (12 U.S.C. § 1842(a)(1)) of formation of a bank holding company by acquiring 80 per cent or more of the voting shares of Republic National Bank 1 Unless otherwise indicated, all banking data are as of June of Houston ("Republic Bank"), and 100 per cent 30, 1978, and reflect bank holding company formations and acquisitions approved as of August 31, 1978. of the voting shares (less directors' qualifying 2 The Houston banking market is approximated by the shares) of Colonial National Bank ("Colonial Houston Ranally Metropolitan Area ("RMA"), which includes Bank"), both of Houston, Texas. Applicant has Harris County and portions of Montgomery, Liberty, Brazoria, Fort Bend, and Galveston Counties in Texas. Market data are also applied for the Board's approval under section as of December 30, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 Federal Reserve Bulletin • November 1978 time. Upon consummation of the proposal, Appli- Credit life insurance and credit accident and cant would become the 19th largest banking orga- health insurance are generally made available by nization in the market, controlling 0.6 per cent banks and other lenders and are designed to assure of market deposits. Although there is some deposit repayment of a loan in the event of death or overlap between Banks, there are numerous bank- disability of the borrower. In connection with its ing alternatives available in the market. While addition of the underwriting of such insurance to approval of the subject proposal would further the list of permissible activities for bank holding solidify the existing relationship between the two companies, the Board stated: affiliated banks and reduce the likelihood that the To assure that engaging in the underwriting banks would become independent competitors in of credit life and credit accident and health the future, based upon the facts of record, includinsurance can reasonably be expected to be ing the relative size of the two banks to be ac- in the public interest, the Board will only quired, their distance from each other, their rank approve applications in which an applicant in the market, and the presence of other banking demonstrates that approval will benefit the alternatives in the Houston banking market, it consumer or result in other public benefits. appears that consummation of the proposal would Normally such a showing would be made not have any significant adverse effects upon com- by a projected reduction in rates or increase in policy benefits due to bank holding competition. pany performance of this service. (12 The financial and managerial resources and fu- C.F.R. § 225.4(a)(10), n. 7). ture prospects of Applicant are dependent upon those of its proposed subsidiary banks. Applicant's Applicant proposes that upon consummation of projected twelve-year amortization schedule for this proposal it would charge rates that are 3.4 the retirement of its acquisition debt appears to to 3.7 per cent below the Texas maximum rates provide Applicant with the necessary financial that are currently being charged by Company and flexibility to meet its annual debt servicing re- has committed itself to maintain reduced rates quirement and to maintain an adequate capital following approval of the application, a result the position for its subsidiary banks. The managerial Board regards as being in the public interest. It resources of Applicant and its two subsidiary does not appear that Applicant's acquisition of banks are considered satisfactory and the future Company would have any significant adverse efprospects of each appear favorable. Accordingly, fects upon existing or potential competition. Furconsiderations relating to banking factors are con- thermore, there is no evidence in the record indisistent with approval of the application. Consid- cating that consummation of the proposal would erations relating to the convenience and needs of result in any undue concentration of resources, the community to be served are also consistent unfair competition, conflicts of interests, unsound with approval. Thus, it is the Board's judgment banking practices or other adverse effects upon the that consummation of the proposal to form a bank public interest. holding company would be in the public interest Based upon the foregoing and other considand that the proposal to acquire Republic Bank erations reflected in the record, including the and Colonial Bank should be approved. commitment by Applicant to maintain on a con- In connection with its application to become a tinuing basis the public benefits which the Board bank holding company, Applicant also has applied has found to be reasonably expected to result from for the Board's approval to acquire all of the this proposal and upon which the approval of this outstanding shares of Company, and thereby en- application is based, the Board has determined, gage in the underwriting of credit life and credit in accordance with the provisions of § 4(c)(8) of accident and health insurance directly related to the Act, that consummation of this proposal can extensions of credit by Applicant's banking sub- reasonably be expected to produce benefits to the sidiaries.3 public that outweigh possible adverse effects and favor approval of Applicant's proposal. 3 Company presently underwrites insurance covering exten- Accordingly, the applications are approved for sions of credit by parties other than Applicant's proposed the reasons summarized above. The acquisition of subsidiary banks. Applicant has committed to cease all imper- Banks shall not be made before the thirtieth calenmissible insurance underwriting activities upon consummation of the subject proposal and, pursuant to the provisions of dar day following the effective date of this Order; section 4(a)(2) of the Act, to divest of all of Company's and the acquisition of Banks and Company shall impermissible assets within two years from the date of conbe made not later than three months after the summation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 899 effective date of this Order, unless such period to continue to engage after consolidation in the is extended for good cause by the Board or by activities of five existing nonbank subsidiaries of the Federal Reserve Bank of Dallas pursuant to Central and Fidelity, namely, The Columbia Addelegated authority. The determination as to Ap- visory Corporation, Lynchburg, Virginia; Columplicant's proposed insurance activities is subject bia Insurance Agency, Inc., Lynchburg, Virginia; to the conditions set forth in section 225.4(c) of Fidelity American Computer Services, Inc., Regulation Y and to the Board's authority to Lynchburg, Virginia; Cencor Insurance Agency require reports by, and make examinations of, Incorporated, Richmond, Virginia; and Bankers holding companies and their subsidiaries and to Mortgage Corporation, Bailey's Crossroads, Virrequire such modification or termination of the ginia.1 Cencor Insurance Agency Incorporated and activities of a bank holding company or any of Columbia Insurance Agency, Inc., would continue its subsidiaries as the Board finds necessary to to engage in the activities of acting as insurance assure compliance with provisions and purposes agent or broker with respect to the following types of the Act and the Board's regulations issued of insurance related to extensions of credit by thereunder, or to prevent evasion thereof. credit granting subsidiaries of the consolidated By order of the Board of Governors, effective organization: (1) credit life, disability, accident October 20, 1978. and health insurance; (2) physical damage insurance on mobile homes, motor homes or similar vehicles; (3) "vendor's single interest" physical Voting for this action: Governors Wallich, Coldwell, damage insurance on motor vehicles, boats, trailers Jackson, Partee, and Teeters. Absent and not voting: and other kinds of personal property or attach- Chairman Miller and Governor Gardner. ments used in connection therewith; and (4) mort- (Signed) GRIFFITH L. GARWOOD, gage redemption insurance. Bankers Mortgage [SEAL] Deputy Secretary of the Board. Corporation would continue to engage in the activities of originating mortgage loans as agent and servicing mortgage loans for subsidiaries of the Central National Corporation, consolidated organization; this subsidiary would Richmond, Virginia also continue to engage in the activity of acting as insurance agent with respect to credit life and Fidelity American Bankshares, Inc., disability insurance and mortgage redemption and Lynchburg, Virginia mortgage cancellation insurance related to its ex- Order Approving tensions of credit. The Columbia Advisory Cor- Consolidation of Bank Holding Companies and poration would continue to act as investment and Engagement in Certain Nonbanking Activities financial advisor, providing portfolio investment advice and management services to individuals, Central National Corporation, Richmond, Virpartnerships, corporations, pension and profit ginia C'Central"), and Fidelity American Banksharing plans, private foundations, and endowshares, Inc., Lynchburg, Virginia ("Fidelity"), ments, and Fidelity American Computer Services, bank holding companies within the meaning of the Inc., would continue to own, operate and maintain Bank Holding Company Act, have applied for the computer hardware and other related electronic Board's approval under section 3(a)(5) of the Act data processing equipment, to perform electronic (12 U.S.C. § 1842(a)(5)) to consolidate into a new data processing and related clerical bookkeeping, corporation, Commonwealth Banks, Inc., Richaccounting and statistical services for the internal mond, Virginia ("Commonwealth"). Immediately operations of the consolidated organization and its subsequent to the consolidation, Commonwealth subsidiaries, and to perform such services and would succeed to and assume all of the assets and engage otherwise in the business of storing and liabilities of Central and Fidelity whereupon Cenprocessing banking, financial and related economic tral and Fidelity would cease to exist as legal data for others, including, but not limited to, other entities. banks and financial institutions. Such activities In a concurrent application, Central and Fidelity have also applied for the Board's approval under section 4(c)(8) of the Act (12 U.S.C. 1 Central and Fidelity together have nine inactive nonbank § 1843(c)(8)) and section 225.4(b)(2) of the subsidiaries for which approval under section 4(c)(8) of the Act would be required before these subsidiaries could engage Board's Regulation Y (12 C.F.R. § 225.4(b)(2)) in any nonbanking activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 Federal Reserve Bulletin • November 1978 have been specified by the Board in § 225.4(a) in the State, namely, the Washington, D.C., of Regulation Y (12 C.F.R. § 225.4(a))as per- Standard Metropolitan Statistical Area missible for bank holding companies, subject to ("SMSA"), the Richmond Ranally Metropolitan Board approval of individual proposals in accord- Area ("RMA"), and the Newport News-Hampton ance with the procedures of section 225.4(b) of (Peninsula) SMSA.3 Regulation Y (12 C.F.R. § 225.4(b)). Two bank subsidiaries of Central operate in the Notice of the receipt of these applications, af- Washington, D.C., banking market. These subfording opportunity for persons to submit views sidiaries have 11 offices located in Arlington, and recommendations, has been given in accord- Fairfax, and Prince William Counties, Virginia, ance with sections 3 and 4 of the Act (43 Federal and the city of Manassas, Virginia, and hold $67.5 Register 37489). The time for filing views and million in total deposits, representing 0.7 per cent recommendations has expired, and the Board has of market deposits.4 Two of the offices are located considered the applications and all comments re- in western Fairfax County where a bank subsidiary ceived in light of the factors set forth in section of Fidelity operates three offices with $23.3 million 3(c) of the Act (12 U.S.C. § 1842(c)) and the in total deposits, representing 0.2 per cent of considerations specified in section 4(c)(8) of the market deposits. Competing in the Washington, Act. D.C., banking market are the nine largest com- Central, the ninth largest banking organization mercial banking organizations in both Virginia and in the State of Virginia, controls seven banks with Maryland as well as 16 District of Columbia total deposits of $470 million, representing 2.8 per banking organizations. The market shares of the cent of the total deposits in commercial banks in largest banking organizations in the market have Virginia.2 Fidelity, the seventh largest banking declined in recent years, with the four-firm conorganization in the State, controls 15 banks with centration ratio declining to 45.8 per cent in 1977 total deposits of $830 million, representing 5.0 per from 50 per cent in 1970. Upon consolidation cent of the total deposits in commercial banks in Commonwealth would control $90.8 million in Virginia. Upon consolidation, Commonwealth market deposits, representing 0.9 per cent of such would become the sixth largest banking organi- deposits.5 In view of these facts and other facts zation in the State controlling 22 banks with ag- of record, the Board concludes that consummation gregate deposits of $1.3 billion, representing 7.8 of the proposed consolidation would have only per cent of the total deposits in commercial banks slightly adverse effects on existing competition in in Virginia. While approval of the application to the Washington, D.C., banking market. consolidate would add one per cent to the share The lead bank of Central is the fourth largest of total deposits held by the six largest banking banking organization in the Richmond banking organizations in Virginia, the Board finds that the market, and holds $309.6 million in total deposits, proposed consolidation would not have signifi- representing 12.5 per cent of market deposits. A cantly adverse effects upon the concentration of banking resources in Virginia. Bank subsidiaries of Central operate primarily 3 The Washington, D.C., banking market is approximated by the Washington, D.C., SMSA, which is comprised of the in the Richmond and Petersburg, Virginia, areas. District of Columbia, the Maryland counties of Charles, These geographic areas account for approximately Montgomery, and Prince Georges, the Virginia counties of Arlington, Fairfax, Loudon, and Prince William, and the cities three-quarters of the total deposits of the bank of Alexandria, Fairfax, Falls Church, Manassas, and Manassas subsidiaries of Central. Bank subsidiaries of Fi- Park, Virginia. The Richmond banking market is approximated delity operate primarily in the Lynchburg, Vir- by the Richmond RMA which is comprised of the city of Richmond, almost all of Henrico County, much of Chesterfield ginia, area, the surrounding communities in and Hanover Counties, and the eastern tip of Goochland south-central Virginia, and the Tidewater-Penin- County, Virginia. The Newport News-Hampton banking marsula area in southeastern Virginia. These geo- ket is approximated by the Newport News-Hampton (Peninsula) SMSA which is comprised of the cities of Newport News, graphic areas account for approximately three- Hampton, Poquoson, and Williamsburg, and the counties of quarters of the total deposits of the bank subsidi- Gloucester, James City, and York, Virginia. aries of Fidelity. Bank subsidiaries of both Central 4 All market data for the Washington, D.C., Richmond, and Newport News-Hampton banking markets are as of June and Fidelity operate in the three largest urban areas 30, 1977. 5 If the Washington, D.C., banking market were defined as including only the District of Columbia and Virginia portions 2 All banking data, unless otherwise indicated, are as of of the Washington, D.C., SMSA, Commonwealth would con- December 31, 1977, and reflect bank holding company forma- trol 1.6 per cent of the total deposits in commercial banks tions and acquisitions approved through August 31, 1978. in that market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 901 bank subsidiary of Fidelity operates four offices With respect to potential competition, there are in the market, and holds $13.2 million in total numerous banking markets across the State in deposits, representing 0.5 per cent of market de- which bank subsidiaries of Fidelity or Central, but posits. Three of the offices are located in eastern not both, presently operate offices. Fidelity has, Henrico County where three offices of Central's in the past, been aggressive in expanding into new lead bank are located. Five other banking organi- geographic markets by acquiring existing banks zations operate 11 banking offices in this part of and by entering markets de novo. However, Fithe market. The remaining office of this bank delity, on its own, does not appear to be in a subsidiary of Fidelity is located in western Henrico position to continue to pursue such an expansion- County near two offices of Central's lead bank. ary policy, and thus may not be considered to be Eight offices of six other banking organizations a likely entrant into any of the markets currently operate in this part of the market. Currently, 18 served by bank subsidiaries of Central. Central, banking organizations are located in the Richmond on the other hand, appears to have the financial banking market, as compared with 15 in 1970; resources to engage in some geographic expansion moreover, the four-firm concentration ratio in the into the markets currently served by bank subsidimarket has declined since 1970. Following con- aries of Fidelity. The banking structure of each solidation, Commonwealth would control $322.8 of these markets has been carefully examined to million in market deposits, representing 13 per determine whether any significantly adverse effects cent of such deposits. In view of the large number on potential competition would result from the of banking organizations in the market and the proposed consolidation. Based upon that examiconcentration trend in the market, the Board con- nation, the Board concludes that consummation of cludes that consummation of the proposed consol- the proposal to consolidate would have only idation would have only slightly adverse effects slightly adverse effects on potential competition on existing competition in the Richmond banking in any market. market. On the basis of the foregoing and other facts A bank subsidiary of Fidelity is the fifth largest of record, the Board concludes that consummation of 15 banking organizations located in the Newport of the proposed consolidation would have slightly News-Hampton banking market, and holds $48.6 adverse competitive effects. The Board believes million in total deposits, representing 6.6 per cent that these effects, however, when viewed in light of market deposits. A bank subsidiary of Central of other considerations reflected in the record, are operates four offices in the market, and holds $14.7 not serious enough to warrant denial of the promillion in total deposits, representing 2.0 per cent posal. of market deposits. One of the offices is located The financial and managerial resources and fuin Hampton where three offices of the bank sub- ture prospects of Central and Fidelity and their sidiary of Fidelity are located. Another of the subsidiary banks are generally satisfactory and offices is located near two Newport News offices consistent with approval of the application to conof this bank subsidiary of Fidelity. Fifteen banking solidate. The financial and managerial contribuorganizations are located in the market and include tions to the consolidated organization by Central the eight largest banking organizations in the State. and Fidelity appear to be complementary. Central Since 1970, the four-firm concentration ratio will provide financial strength to the consolidated within the market has declined. Upon consoli- organization while Fidelity will provide a substandation, Commonwealth would control $63.3 mil- tial asset base and a broader market presence. In lion in market deposits, representing 8.6 per cent view of these facts and other facts of record, the of such deposits. Commonwealth, however, would Board has determined that financial and managerial be significantly smaller than the larger banking considerations lend weight toward approval of the organizations in the market and, in view of the large proposed consolidation. number of banking organizations in the market, Considerations relating to convenience and the concentration trend in the market, and the needs lend weight toward approval of the applicarelative size of the banks involved, the Board tion to consolidate. The financial condition of the concludes that consummation of the proposed consolidated organization will enable the subsidiconsolidation would have only slightly adverse ary banks of Commonwealth to offer new and effects on existing competition in the Newport improved services to their customers. Common- News-Hampton banking market. wealth intends to increase the mortgage and agri- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 Federal Reserve Bulletin • November 1978 cultural lending of the subsidiary banks as well must consider under section 4(c)(8) favor approval as their leasing of personal property. The consoli- of Applicant's proposal. dated organization will have a substantially im- Accordingly, the applications are approved for proved capability to negotiate large business loans the reasons summarized above. The consolidation and to provide correspondent services. Based on shall not be made before the thirtieth calendar day these facts and other facts of record, it is the following the effective date of this Order, nor later Board's judgment that considerations relating to than three months after the effective date of this convenience and needs outweigh any anticompeti- Order unless such period is extended for good tive effects that might result from the proposed cause by the Board or by the Federal Reserve Bank consolidation. Accordingly, it has been deter- of Richmond pursuant to delegated authority. The mined that the proposed consolidation would be determination as to the nonbanking activities of in the public interest and that the application to Central and Fidelity is subject to the conditions consolidate should be approved. set forth in section 225.4(c) of Regulation Y (12 Central and Fidelity have also applied for the C.F.R. § 225.4(c)) and to the Board's authority Board's approval to continue to engage in the to require reports by, and make examination of, nonbanking activities of The Columbia Advisory holding companies and their subsidiaries and to Corporation, Columbia Insurance Agency, Fidel- require such modification or termination of the ity American Computer Services, Cencor Insur- activities of a bank holding company or any of ance Agency Incorporated, and Bankers Mortgage its subsidiaries as the Board finds necessary to Corporation. Two of these subsidiaries would assure compliance with the provisions and purcontinue to engage in the activities of acting as poses of the Act and the Board's regulations issued insurance agent or broker with respect to certain thereunder, or to prevent evasions thereof. credit-related insurance and one would continue By order of the Board of Governors, effective to provide data processing services. The other October 31, 1978. subsidiaries would continue to provide investment Voting for this action: Chairman Miller and Goveradvisory services and continue to originate and nors Wallich, Jackson, Partee, and Teeters. Absent and not voting: Governors Gardner and Coldwell. service mortgages. The insurance agency and data processing affiliates of Central and Fidelity service (Signed) JOHN M. WALLACE, only the subsidiaries of their respective holding [SEAL] Assistant Secretary of the Board. companies and, therefore, do not compete with each other. Bankers Mortgage Company, a subsidiary of Fidelity, does compete for second mortgage loans within the Washington, D.C., SMS A ORDERS UNDER SECTION 4 where bank subsidiaries of Central are mortgage OF BANK HOLDING COMPANY ACT lenders. However, in view of the amount of second mortgage lending engaged in by these firms, the Johnson County Bankshares, Inc., direct competition that would be eliminated within Prairie Village, Kansas this market upon consummation of this proposal Order Approving Retention of appears to be negligible. No other nonbank sub- Republic Investment Company, Inc. sidiary of Central or Fidelity competes with any bank or nonbank subsidiary of the other organi- Johnson County Bankshares, Inc., Prairie Vilzation. Accordingly, the Board concludes that no lage, Kansas, a bank holding company within the adverse competitive effects on nonbank competi- meaning of the Bank Holding Company Act tion would result from approval of the application ("Act"), has applied for the Board's approval to continue to engage in certain nonbanking activ- under section 4(c)(8) of the Act (12 U.S.C. ities. There is no evidence in the record indicating § 1843(c)(8)) and section 225.4(b)(2) of the that approval of the application to continue to Board's Regulation Y (12 C.F.R. § 225.4(b)(2)) engage in certain nonbanking activities would re- to retain all of the voting shares of Republic sult in any undue concentration of resources, un- Investment Company, Inc., Prairie Village, fair competition, conflicts of interests, unsound Kansas ("Company"), a company that engages banking practices or other adverse effects on the in making direct consumer instalment loans, secpublic interest. Based on the foregoing and other cured and unsecured, to individuals, purchasing facts of record, the Board has determined that the consumer instalment sales finance contracts, and balance of the public interest factors the Board acting as agent for the sale of credit life and credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 903 accident and health insurance directly related to 31, 1977, Company had total assets of approxiextensions of credit by Company.1 Such activities mately $752,000, loans outstanding of approxihave been determined by the Board to be closely mately $617,000, and lease receivables of aprelated to banking (12 C.F.R. §§ 225.4(a)(1) and proximately $137,000. (9)(ii)(a)). The Board generally regards the standards under Notice of the application, affording opportunity section 4(c)(8) of the Act for retention of shares for interested persons to submit views and recom- to be the same as the standards for a proposed mendations on the application, has been duly pub- acquisition. At the time of acquisition of Company lished (43 Federal Register 33323 (1978)). The by Applicant in 1970, Company had total instaltime for filing views and recommendations has ment loans outstanding of approximately $433,expired, and the Board has considered the appli- 000. The relevant product market to be considered cation and all comments received in light of the in evaluating the competitive effects of this propublic interest factors set forth in section 4(c)(8) posal is the making of personal cash loans, and of the Act. the Board has previously determined that con- Applicant, a one-bank holding company, be- sumer finance companies compete with commercame a bank holding company as a result of the cial banks in the area of personal loans.5 While Bank Holding Company Act Amendments of 1970 Bank operates in the Kansas City banking market by virtue of its control of Johnson County National and in 1970 was engaged in making personal cash Bank and Trust Company, Prairie Village, Kansas loans in that market, it is estimated that at the ("Bank"). Applicant acquired all of the shares of time of acquisition the combined market share of Company on December 19, 1970. Pursuant to the Company and Bank of total personal loans outprovisions of section 4 of the Act, Applicant has standing in the relevant geographic market was until December 31, 1980, to divest its shares of less than one per cent. In light of the foregoing Company or in the alternative to apply to the Board and the fact that there are hundreds of lenders for to retain them.2 personal loans in the relevant geographic market, Applicant is the eleventh largest banking orga- the Board concludes that Applicant's acquisition nization in Kansas. On December 31, 1977, Bank of Company did not have any significantly adverse held deposits of approximately $106 million, rep- effects on existing competition in any relevant resenting approximately 0.98 per cent of total area, and that Applicant's retention of Company deposits in commercial banks in the State. Appli- likewise would not have any significantly adverse cant is engaged directly in originating develop- competitive effects. ment, construction and permanent mortgage loans, Since its acquisition by Applicant in 1970, and indirectly through subsidiaries in real estate Company has had access to financial and managedevelopment and acting as general insurance rial resources of Applicant. Approval of this apagent.3 plication would ensure the continued availability Company conducts its consumer finance busi- of personal loans and related credit life and credit ness from one office located in Prairie Village, disability insurance to Company's customers. Kansas, and derives the bulk of its business from While the benefits to the public that have resulted the Kansas City banking market.4 On December from Applicant's acquisition of Company are not substantial, based on these and other facts of record, the Board concludes that such benefits are 1 Company is also engaged in leasing personal property for which it has obtained approval under section 4(c)(8) of the sufficient to outweigh any adverse competitive ef- Act from the Federal Reserve Bank of Kansas City acting fects that could have resulted from the affiliation. pursuant to delegated authority. Moreover, it is the Board's view that approval of 2 Section 4 of the Act provides, inter alia, that nonbanking companies acquired after June 30, 1968, and before January Applicant's retention of Company can reasonably 1, 1971, by a company that becomes a bank holding company be expected to continue to produce benefits to the as a result of the 1970 Amendments to the Act may not be public that would outweigh possible adverse efretained beyond December 31, 1980, without Board approval. 3 Inasmuch as these activities were commenced after June fects. Furthermore, there is no evidence in the 30, 1968, and before January 1, 1971, under section 4 of the record indicating that the affiliation of Applicant Act Applicant may not retain these activities beyond December and Company has resulted in any undue concen- 31, 1980, without the Board's approval. 4 The relevant geographic area for evaluating the competitive effects of this application is the Kansas City banking market, which is approximated by the northern half of Cass 5 See the Board's Order dated August 3, 1973, denying the County in Missouri, all of Clay, Jackson and Platte Counties application of Bankers Trust New York Corporation, New in Missouri, and all of Johnson and Wyandotte Counties in York, New York, to acquire Public Loan Company, Inc., Kansas. Binghamton, New York, 59 FED. RES. BULL. 694 (1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 Federal Reserve Bulletin • November 1978 tration of resources, conflicts of interest, unsound also acts as agent for the sale of credit life and banking practices, or other effects adverse to the credit accident and health insurance and physical public interest. damage insurance, all of which are directly related Based upon the foregoing and other consid- to extensions of credit by TranSouth. Each of the erations reflected in the record, the Board has above activities has been determined by the Board determined that the balance of the public interest to be closely related to banking (12 CFR factors that the Board is required to consider under § 225.4(a)(1), (6) and (9)). section 4(c)(8) of the Act is favorable. Accord- Notice of the application, affording opportunity ingly, the application is hereby approved. This for interested persons to submit comments and determination is subject to the conditions set forth views on the public interest factors, has been duly in section 225.4(c) of Regulation Y and the published (43 Federal Register 43388). The time Board's authority to require such modification or for filing comments and views has expired, and termination of the activities of a holding company the Board has considered the application and all or any of its subsidiaries as the Board finds neces- comments received in light of the public interest sary to assure compliance with the provisions and factors set forth in section 4(c)(8) of the Act (12 purposes of the Act and the Board's regulations U.S.C. § 1843(c)(8)). and orders issued thereunder, or to prevent evasion Applicant, a one-bank holding company, bethereof. came a bank holding company as a result of the By order of the Board of Governors, effective 1970 Amendments to the Act by virtue of its October 13, 1978. control of North Carolina^National Bank, Charlotte, North Carolina ("Bank"). Applicant acquired all of the outstanding shares of TranSouth Voting for this action: Vice Chairman Gardner and Governors Wallich, Coldwell, Jackson, Partee, and in July, 1969. Pursuant to the provisions of section Teeters. Absent and not voting: Chairman Miller. 4 of the Act, Applicant has until December 31, (Signed) GRIFFITH L. GARWOOD, 1980, to divest its interest in TranSouth or, in the [SEAL] Deputy Secretary of the Board. alternative, to apply and secure the Board's approval to retain such interest.1 Applicant is the second largest banking organization in the State of North Carolina by virtue of NCNB Corporation, its control of Bank, which holds deposits of $2.5 Charlotte, North Carolina billion, representing 17.2 per cent of the total deposits in commercial banks in the State.2 In Order Approving addition to engaging in consumer finance and Retention of TranSouth Financial Corporation related insurance activities through TranSouth, Applicant engages through subsidiaries in a variety NCNB Corporation, Charlotte, North Carolina, of nonbanking activities, including mortgage a bank holding company within the meaning of banking, factoring, providing trust services and the Bank Holding Company Act, has applied for acting as an investment advisor. the Board's approval, under section 4(c)(8) of the TranSouth is the 35th largest finance company Act (12 U.S.C. § 1843(c)(8)) and section in the United States.3 It operates 105 offices in 225.4(b)(2) of the Board's Regulation Y (12 CFR 5 States, of which 44 are located in North Caro- § 225.4(b)(2)), to retain all of the voting shares of TranSouth Financial Corporation (formerly Stephenson Finance Company), and its subsidiary TranSouth Mortgage Corporation (formerly Asso- 1 Section 4 of the Act provides, inter alia, that nonbanking activities acquired between June 30, 1968, and December 31, ciated Underwriters, Inc.), both of Florence, South 1970, by a company which becomes a bank holding company Carolina (together referred to as "TranSouth"). as a result of the 1970 Amendments may not be retained beyond December 31, 1980, without Board approval. Applicant has TranSouth engages primarily in making direct asserted that the shares of TranSouth may be retained by consumer instalment loans, secured and unse- Applicant on the basis of section 4(c)(5) of the Act, which cured, to individuals, purchasing consumer in- provides an exemption for retention of shares which are eligible for investment by a national banking association under the stalment sales finance contracts, purchasing recprovisions of section 5136 of the Revised Statutes. For the reational lot notes, extending direct loans to reasons set forth in its Order of May 11, 1978, the Board dealers for the financing of inventory (floor plan- believes Applicant's assertion of the applicability of section 4(c)(5) of the Act to the shares of TranSouth is without merit. ning) and working capital purposes, and purchas- 2 All banking data are as of June 30, 1978. ing personal property lease contracts. TranSouth 3 American Banker, June 19, 1978. 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Law Department 905 lina.4 On June 30, 1978, TranSouth had assets of will eliminate all overlapping offices of Bank and $176 million and total finance receivables of TranSouth in North Carolina. In order to ensure $164.9 million. both that the offices will be completely divested By Order dated May 11, 1978, the Board denied and that they will be divested as viable going an application by Applicant to retain the shares concerns, the Board expects that such offices will of TranSouth. In that Order, the Board found that be sold as going concerns and holding substantially the acquisition of TranSouth by Applicant in 1969 the same quality and type of assets as those offices eliminated a significant amount of existing com- held on May 11, 1978, and in an amount not less petition in five local markets in North Carolina than that amount held by those offices on that date. where both Bank and TranSouth had offices.5 The Furthermore, while Applicant proposes to retain Board also expressed concern as to the effects of 19 offices of TranSouth in North Carolina where the acquisition on potential competition, because Bank could establish banking offices, these marof the possibility that either Bank or TranSouth kets do not appear to be attractive for de novo could establish offices in markets where the other entry by Bank, and Applicant has indicated that was represented. Subsequent to Applicant's ac- it is unlikely that either TranSouth or Bank will quisition of TranSouth, both Bank and TranSouth expand into any of the markets now served by expanded operations, resulting in the establish- the other.8 In view of the foregoing, it appears ment of overlapping offices in 12 additional mar- that the proposed retention would not have signifkets. The Board found that the adverse competitive icant adverse effects upon existing competition and effects of the acquisition were not outweighed by would have only slightly adverse effects upon any showing by Applicant of benefits to the public potential competition in North Carolina. Finally, resulting from the acquisition.6 inasmuch as Applicant or its subsidiaries did not In order to eliminate the adverse competitive at the time of the acquisition and do not now effects found by the Board, Applicant has modified engage in making personal cash loans in any its proposal to retain TranSouth, but providing for market outside of North Carolina, the proposed the divestiture by December 31, 1980, of 25 offices retention would not have any adverse effect upon of TranSouth and one office of Bank in the 17 either existing or potential competition in any of markets in North Carolina where both Bank and those markets. TranSouth have offices.7 The proposed divestitures In its amended application, Applicant has submitted additional evidence demonstrating that the acquisition of TranSouth by Applicant has resulted 4 In its amended application, Applicant has also requested the Board's approval to retain 11 offices of TranSouth opened in substantial benefits to the public in the form de novo during July and August of 1978, in South Carolina of lower interest and rates and other changes, and Tennessee. larger loans and improved services. In particular, 5 The relevant product market to be considered in evaluating the competitive effects of this proposal is making personal cash TranSouth charges from one to two percentage loans, and the Board has previously determined that consumer points less than the legal maximum interest rate finance companies compete with commercial banks in the area in South Carolina, and omits legally permissible of personal loans. See the Board's Order dated August 3, 1973, denying the application of Bankers Trust Corporation, New maintenance fees in Tennessee and Virginia. In York, New York, to acquire Public Loan Company, Bingham- addition, TranSouth does not charge late fees for ton, New York, 54 FEDERAL RESERVE BULLETIN 694. 6 In order to approve an application under section 4(c)(8) most loans made in Virginia, North Carolina, and of the Act, the Board must determine whether the activities South Carolina. Furthermore, TranSouth makes of the company to be acquired or retained are "so closely simple interest loans in Virginia, North Carolina, related to banking or managing or controlling banks as to be a proper incident thereto," and whether the bank holding and South Carolina, a practice that, among other company's acquisition of that company "can reasonably be benefits, eliminates the usual interest penalty asexpected to produce benefits to the public, such as greater sessed on borrowers that prepay their loans. Ficonvenience, increased competition, or gains in efficiency that outweigh possible adverse effects, such as undue concentration nally, the average loan made by TranSouth has of resources, decreased or unfair competition, conflicts of increased and exceeded the industry composite in interest, or unsound banking practices." That statutory test requires a positive showing by Applicant that the public bene- four of the last five years when compared with fits of its proposal outweigh the possible adverse effects. While finance companies holding between $50 million Applicant maintains that the Board should apply a somewhat and $150 million in receivables. Affiliation with different standard, particularly with regard to competitive effects, the Board rejects Applicant's argument for the reasons Applicant has enabled TranSouth to offer other stated in its Order of May 11, 1978. 7 Inasmuch as the Board's May 11, 1978 Order addressed the adverse effects on competition with respect to personal cash 8 The Board notes that Applicant has represented that it does loans, Applicant proposes to retain in some cases the indirect not have any plans to open additional TranSouth offices in loan receivables of the offices to be divested. North Carolina. 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906 Federal Reserve Bulletin • November 1978 improved services, including monthly statements § 1843(c)(8)) and § 225.4(b)(2) of the Board's to borrowers in lieu of payment books, debt coun- Regulation Y (12 C.F.R. § 225.4(b)(2)), to acseling services, and a commitment to rewrite loan quire Guild Loan and Investment Company, Procontracts "in plain English." vidence, Rhode Island ("Guild Loan"), a pres- On the basis of these and other facts of record, ently inactive industrial loan company that will the Board concludes that the benefits to the public engage in the activity of operating as an industrial resulting from NCNB's acquisition of TranSouth loan company. Such activity has been determined outweigh the slightly adverse effects on competi- by the Board to be closely related to banking (12 tion reflected in the instant proposal. Moreover, C.F.R. § 225.4(a)(1), (2), and (3)). Notice of the it is the Board's view that approval of NCNB's application, affording opportunity for interested retention of TranSouth can reasonably be expected persons to submit comments and views on the to continue to produce benefits to the public that public interest factors, has been duly published (43 would outweigh any possible adverse effects. Fur- Federal Register 22781). The time for filing comthermore, there is no evidence in the record indi- ments and views has expired, and the Board has cating that the retention would result in any undue considered the application and all comments reconcentration of resources, conflicts of interests, ceived, including those of First Federal Savings unsound banking practices, or other adverse ef- and Loan Association of Providence, Providence, fects on the public interest. Rhode Island ("First Federal") and the National Based upon the foregoing and other consid- Association of Mutual Savings Banks ("Associaerations reflected in the record, the Board has tion"), in the light of the public interest factors determined that the balance of the public interest set forth in § 4(c)(8) of the Act (12 U.S.C. factors the Board is required to consider under § 1843(c)(8)). Association has also requested the section 4(c)(8) is favorable and that the application Board to hold a hearing on the application. should be approved. Accordingly, the application Applicant is the second largest banking organiis hereby approved. This determination is subject zation in the State of Rhode Island and controls to the conditions set forth in section 225.4(c) of Old Stone Bank, Providence, Rhode Island, which Regulation Y and to the Board's authority to holds deposits of approximately $970.5 million.1 require such modification or termination of the In addition, Applicant controls two Morris Plan activities of a holding company or any of its banks that were acquired with Board approval by subsidiaries as the Board finds necessary to assure Order dated November 19, 1976 (62 Federal Recompliance with the provisions and purposes of serve Bulletin 1055) and a real estate subsidiary the Act and the Board's regulations and orders that is engaged in nonbanking activities pursuant issued thereunder or to prevent evasion thereof. to the limited grandfather exemption of section 4(a)(2) of the BHC Act. Voting for this action: Chairman Miller and Gover- Guild Loan, a presently inactive industrial loan nors Wallich, Jackson, Partee, and Teeters. Absent and company, is authorized to offer various consumer not voting: Governors Gardner and Coldwell. and commercial loan and deposit services under (Signed) GRIFFITH L GARWOOD, sections 19-20-9 and 19-20-10 of the General [SEAL] Deputy Secretary of the Board. Laws of Rhode Island. However, Applicant states that Guild Loan will not accept demand deposits or make commercial loans. Applicant proposes to engage de novo through Guild Loan only in the Old Stone Corporation, activities of making installment loans and loans Providence, Rhode Island collateralized by deposits; purchasing consumer loans originated by others; originating first and Order Approving Acquisition of second mortgages, and; accepting consumer in- Guild Loan and Investment Company vestment and savings deposits. Such deposits will be insured by the Rhode Island Share and Deposit Old Stone Corporation, Providence, Rhode Is- Insurance Corporation and Guild Loan will be land, a bank holding company within the meaning subject to examination, as any bank incorporated of the Bank Holding Company Act ("BHC Act"), has applied for the Board's approval, under § 4(c)(8) of the BHC Act (12 U.S.C. 1 All banking data are as of March 31, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 907 in Rhode Island, RI Gen. Laws X 9-20-6. Guild the Bank Holding Company Act, (12 U.S.C. Loan's sole office will be located in Providence, § 1843(c)(8)) ("BHC Act"); (3) Applicant's Rhode Island. operation of Guild Loan would circumvent interest As Guild Loan currently is an inactive corpora- rate differential regulations (i.e., the Board's Regtion, consummation of this proposal would not ulation Q) resulting in unfair competition, and; (4) eliminate existing competition between it and Old anti-competitive consequences resulting from Ap- Stone's banking or nonbanking subsidiaries. plicant's operation of Guild Loan are so adverse Moreover, Applicant's nonbanking subsidiaries do as to warrant denial of the subject application. In not compete in the Providence banking market. addition, First Federal requests "the opportunity Applicant's acquisition of Guild Loan would not to appear at any hearing that the Federal Reserve preclude entry by other institutions into the activity Board of Boston [sic] may see fit to schedule with of acting as a loan and investment company. There respect to the proposal of Old Stone Corporation is at least one other inactive loan and investment for the purposes of elaborating on these objections. company charter that is available for purchase in Rhode Island and applications for new charters Association's protest contains two allegations. may be filed with the appropriate State banking First, Association contends that approval of the authority. Accordingly, no potential competition subject proposal would sanction Applicant's plan would be eliminated upon approval of this appli- to avoid interest rate limitations applicable to Apcation. Furthermore, Applicant's de novo entry plicant's bank, i.e. Regulation Q, and, thereby, into this activity should have a pro-competitive grant it an unfair competitive advantage. In coneffect by increasing the number of alternatives for junction with this argument, Association contends services offered by an industrial loan company. that the subject proposal is part of the ongoing By engaging in the subject industrial loan activ- effort by commercial banks in New England to ity de novo, Applicant will provide an additional abolish the interest rate differential between banks source of such services to the community. In and thrift institutions. Second, the Association addition, Applicant proposes to employ some bi- alleges that approval of the application would lingual staff to benefit the Portuguese-speaking produce no public benefits since Applicant cannot population residing within close proximity of offer any loan or investment services through Guild Loan's proposed location. In addition, Ap- Guild Loan that cannot be provided through its plicant would institute a special loan program to banking subsidiary or that are not currently availserve the needs of young and first-time borrowers. able in the banking market. Based on all of the facts of record, the Board Association requests the Board to hold an adconcludes that consummation of the subject pro- ministrative hearing for the purpose of "further posal would result in benefits to the public. More- exploring the many important policy issues inover, there is no evidence in the record to indicate volved." Association described the issues that that the proposed transaction would lead to any would be explored in such a hearing as: (1) undue concentration of resources, conflicts of in- whether Applicant should be permitted to utilize terests, unsound banking practices, or any other the holding company device to circumvent Reguadverse effects upon the public interest. lation Q and, (2) whether Guild Loan is properly In acting on the subject application, the Board characterized as a nonbanking institution, when in has considered comments in opposition to approval fact under Rhode Island law, it can operate as a of Applicant's proposal from First Federal and bank by accepting demand deposits and making Association, which also requests the Board to hold commercial loans. a hearing on Applicant's proposal. Section 4(c)(8) of the BHC Act and Section First Federal's allegations in opposition to the 225.4(b)(2) of Regulation Y provide that the Board application may be summarized as follows: (1) may approve a bank holding company's applicarequired injections of capital into Guild Loan tion to acquire a company engaged in certain would divert Applicant's resources from its own nonbanking activities only after notice of the profuture needs and would result in a significant posal and an opportunity for a hearing on the increase in Applicant's debt; (2) operation of Guild matter. In order to be entitled to such a hearing, Loan by Applicant is not a 4'proper incident" to a petitioner must establish that it has standing to banking within the meaning of section 4(c)(8) of challenge the application by demonstrating that it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 Federal Reserve Bulletin • November 1978 would suffer "injury in fact" as a result of Board posal.6 By its own admission, Association's interapproval of the application.2 est in this case is that of a concerned bystander. Association does not make any claim of injury. Association seeks a hearing in this matter in order In fact, Association states that it "is not and will to press its particular views. The written views not become a competitor of the Applicant as con- of Association as an "interested party" are weltemplated under the relevant section of the BHC come, but do not precipitate the right to a formal Act." Association is of the view that First Federal, hearing in the absence of a showing of injury in the other protestant, is entitled to a hearing on fact. Association has failed to make the necessary the application. Thus, Association argues that it showing of injury in this case and, therefore, does should be entitled to present its views at the not have standing to be entitled to a hearing under hearing as an 'interested party' because "there are section 4(c)(8) of the BHC Act. important questions of law, policy and discretion Even if a petitioner has standing, the Board is involved with potential implications of a national not required to hold a hearing unless the petitioner nature." raises questions of material fact that are in dispute, Since First Federal does not request the Board because an agency is not required to conduct a to hold a hearing, but only the right to participate hearing when it would serve no purpose to do so.7 at a hearing if one is held, Association's request In order for the Board to approve the subject must stand on its own merits by demonstrating application, it must determine that the performance how Association would be injured as a result of of the proposed activities of Guild Loan can reathe Board approving Applicant's proposal. In this sonably be expected to produce benefits to the regard, the Supreme Court, in elaborating on the public, such as greater convenience, increased "injury in fact" test for standing, concluded that competition, or gains in efficiency that outweigh "a mere 'interest in a problem' no matter how possible adverse effects such as undue concentralong standing the interest and no matter how tion of resources, decreased or unfair competition, qualified the petitioner is in evaluating the prob- conflicts of interest or unsound banking practices. lem," is not sufficient by itself to confer standing.3 This is a balancing test that requires the Board The Court viewed the "injury in fact" test as to consider all facts bearing upon that determidesigned to ensure that only "those who have a nation. direct stake in the outcome" will be entitled to Association states that the crucial issue of fact participate in proceedings such as the hearing in this application is whether Applicant will cirrequested here.4 Furthermore, to the extent that cumvent federal regulations governing the amount an organization seeks standing based upon its of interest payable on deposits in banks and thrift special interest in a problem, it cannot establish institutions. In Association's view, this would standing; an organization can establish standing provide Applicant with an unfair competitive adonly as a representative of its members who could vantage over other financial institutions subject to establish injury in fact and who could have re- such regulation. However, Guild loan is an indusquested the action in their own right.5 trial loan company chartered and regulated by In summary, Association does not allege that Rhode Island. It is not a member of the Federal it would suffer any injury as a result of consum- Reserve System, nor are its deposits insured by mation of Applicant's proposal. Nor does Associ- the Federal Deposit Insurance Corporation or the ation claim that any of its members would be Federal Savings and Loan Insurance Corporation. injured as a result of consummation of the pro- Consequently, the interest that Guild Loan may pay on consumer savings deposits is not subject to Federal Regulation. From Association's submis- 2 Association of Data Processing Service Organizations v. sions, it appears that the thrust of Association's Camp, 397 U.S. 150 (1970); Sierra Club v. Morton, 405 U.S. opposition is a challenge to the Board's 1971 727 (1972); Warth v. Seldin, 422 U.S. 490 (1975); Simon v. Eastern Kentucky Welfare Rights Organization, 426 U.S. determination, that the operation of an industrial 26 (1976). Although the foregoing decisions concern the question of standing before federal courts, the principles of standing are applicable to the question of standing before administrative agencies. 6 Even if it is assumed that Association's opposition is on 3 Sierra Club v. Morton, 405 U.S. 727, 739 (1972). behalf of its members, Association makes no allegation that 4 Id. at 740. approval of the subject application would injure its members 5 Warth v. Seldin, 422 U.S. at 511; see also Simon v. other than a general claim that unfair competition results from Eastern Kentucky Welfare Rights Organization, 426 U.S. 26 a bank holding company operating an industrial loan company. (1976). 7 Independent Bankers, supra, at 1219-1220. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 909 bank is a permissible activity for a bank holding panies. Association's submissions concern this company, subject to Board approval of specific general issue and do not relate to the specific proposals. Since Applicant may operate an indus- proposal now before the Board. This general trial loan company, such as Guild Loan, which question was considered by the Board seven years is not subject to Federal interest rate regulation, ago when it promulgated that portion of Regulation and Association's allegations do not relate to how Y, authorizing bank holding companies to engage Applicant could achieve an unfair competitive in the operation of industrial loan companies. After advantage by this specific proposal, there is no various written submissions and an administrative issue of material fact relating to the circumvention hearing, the Board determined that it was permisof Federal regulations on interest rates. sible for a bank holding company to operate an With respect to Association's question of industrial loan company in a manner authorized whether Guild Loan is a bank, Regulation Y by State law so long as the institution does not specifically prohibits an industrial loan company both accept demand deposits and make commerthat is a subsidiary of a bank holding company cial loans. In view of that determination, it is now from both accepting demand deposits and making inappropriate to reconsider such questions only commercial loans. Applicant has committed that with respect to Applicant. Guild Loan will not engage in either of these Like Association, First Federal's primary conactivities and Association does not challenge Ap- cern is the general question of bank holding complicant's representations. Accordingly, Associa- pany operation of industrial loan companies and tion has not presented an issue of material fact the circumvention of federal interest rate regulathat is disputed by Applicant. Therefore, there is tions. First Federal does, however, also make no need for the Board to hold a hearing on this certain allegations specifically in opposition to question. Applicant's proposal. First Federal claims that Finally, Association asserts that no public ben- capitalization of Guild Loan would increase Apefits would result from approval of Applicant's plicant's debt, thereby diverting Applicant's reproposal because no services would be offered that sources from its own future needs. There is no are not otherwise available in the market. How- question that Applicant's proposal will result in ever, the fact that certain services are already an increase in Applicant's debt. Nor is there any available is not determinative of whether a partic- question as to the amount of that debt. Since these ular proposal would result in public benefits. matters are not in dispute there is no need to hold Moreover, Association does not dispute any of a hearing on such questions. Furthermore, the Applicant's claims that its proposal would benefit Board takes such questions into consideration in the public by providing an additional source of acting upon any application under the BHC Act, industrial loan service as well as offer special loans and, in the subject case, financial considerations for young and first-time borrowers. Nor does As- are consistent with approval. sociation dispute Applicant's claim that Portu- First Federal further claims that the activities guese speaking employees of Guild Loan would of Guild Loan are not a "proper incident" to be a convenience and a benefit in an area with banking, citing the Board's denial of D.H. Balda large Portuguese speaking population. Associa- win Company, Cincinnati, Ohio, to retain shares tion's allegation is merely its own evaluation of of a savings and loan association, Empire Saving, Applicant's proposal and does not raise issues of Building and Loan Association, Denver, Colorado material fact regarding probable public benefits of (63 Fed: Res. Bull. 280 (1977)). First Federal resulting from consummation of Applicant's pro- apparently bases this allegation on the premise that posal. Thus, the Board is not required to hold a Guild Loan would be operated as a saving and hearing on the question of public benefits to be loan association. As noted above, Applicant's derived by the public as a result of Applicant's proposal is for the operation of Guild Loan as an proposal. industrial loan company in accordance with the Even though the Board is not required to hold provisions of section 225.4(a)(2) of Regulation Y, a hearing, it could do so if the Board deemed such an activity that the Board has previously detera proceeding appropriate under the circum- mined to be permissible for bank holding compastances. Association's primary concern in this nies. matter appears to be the general question of bank Finally, First Federal contends that Applicant's holding companies operating industrial loan com- tandem operation of its commercial bank and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 Federal Reserve Bulletin • November 1978 Guild Loan would provide unique advantages to Association is hereby denied. Furthermore, the Applicant over other financial institutions, espe- Board finds that the comments in opposition to cially over the formation of other industrial loan this proposal do not merit denial of the application companies. In support of this contention, First as requested by First Federal or Association. Federal argues that the services Guild Loan would Based upon the foregoing and other considoffer are readily available in the market. Appli- erations reflected in the record, the Board has cant's proposal is to engage in industrial loan determined that the balance of the public interest activities de novo. Thus, no competition would factors the Board is required to consider under be eliminated as a result of consummation of that section 4(c)(8) is favorable. Accordingly, the approposal. Furthermore, Applicant's acquisition of plication is hereby approved. This determination Guild Loan does not appear to preclude entry into is subject to the conditions set forth in section the industrial loan market by other institutions 225.4(c) of Regulation Y and to the Board's ausince at least one other inactive charter is currently thority to require such modification or termination available and new charters could be issued. Nor of the activities of a holding company or any of does it appear that Applicant would achieve a its subsidiaries as the Board finds necessary to position of dominance in the area by engaging in assure compliance with the provisions and purindustrial loan activities de novo. Contrary to poses of the Act and the Board's regulations and having adverse competitive effects, the Board is orders issued thereunder, or to prevent evasion of the view that consummation of this proposal thereof. will have pro-competitive effects by providing an By order of the Board of Governors, effective additional source of services to the area. October 30, 1978. Therefore, having considered all of the comments submitted by First Federal and the Associa- Voting for this action: Chairman Miller and Govertion, the Board concludes that a hearing is not nors Wallich, Jackson, Partee, and Teeters. Absent and required with respect to the subject application, not voting: Governors Gardner and Coldwell. nor does it otherwise appear in the public interest for the Board to hold a hearing in this matter. (Signed) JOHN M. WALLACE, The request for a hearing on the proposal by [SEAL] Assistant Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT BY THE BOARD OF GOVERNORS During October 1978, the Board of Governors approved the applications listed below. Copies are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551. Section 3 Board action (effective Applicant Bank(s) date) Barnett Banks of Florida, Inc. Peoples State Bank of October 27, 1978 Jacksonville, Florida New Port Richey, New Port Richey, Florida Citizens Bancshares, Inc., Citizens National Bank October 10, 1978 Somerset, Kentucky of Somerset, Somerset, Kentucky First Security Corporation, First Security State October 30, 1978 Salt Lake City, Utah Bank of Twelfth Street, Ogden, Utah Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 911 Section 3 Board action (effective Applicant Bank(s) date) Florida National Banks of The National Bank of October 5, 1978 Florida, Inc., Jacksonville, Cape Coral, Cape Florida Coral, Florida National Bancshares Corporation Guaranty National Bank, October 6, 1978 of Texas, San Antonio, Texas Houston, Texas Loomis Company, Omaha, First State Bank, October 26, 1978 Nebraska Loomis, Nebraska Marshall & Isley Corporation, Western State Bank, October 30, 1978 Milwaukee, Wisconsin Oshkosh, Wisconsin Northwest Bancorporation, The First National Bank of October 16, 1978 Minneapolis, Minnesota Marion, Marion, Iowa Republic of Texas Corporation, City National Bank, October 10, 1978 Dallas, Texas Fort Worth, Texas Sibley Bancorporation, The First National Bank of October 6, 1978 Sibley, Iowa Sibley, Sibley, Iowa Texas Panhandle Bancshares, Inc., Panhandle Bank & Trust October 31, 1978 Borger, Texas Company, Borger, Texas Section 4 Nonbanking company Effective Applicant (or activity) date Old Stone Corporation, Guild Loan Investment October 30, 1978 Providence, Rhode Island Company Sections 3 and 4 Nonbanking company Effective Applicant Bank(s) (or activity) date Mountain Finan- South Aurora to sell credit life October 13, 1978 cial Services, State Bank, and credit accident and Inc., Denver Aurora, Col- health insurance directly Colorado orado related to extensions of credit by its subsidiary bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 Federal Reserve Bulletin • November 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 Allied Bancshares, Inc., Champions Bank, Dallas October 19, 1978 Houston, Texas Houston, Texas ORDERS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant Bank(s) Bank date The First State Bank of Hialeah-Miami Springs Atlanta October 3, 1978 Miami, Miami, Florida First State Bank, Hialeah, Florida, et al Bank of Virginia-Richmond, Bank of Virginia, Richmond October 6, 1978 Richmond, Virginia Richmond, Virginia, et al 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 Citicorp v. Board of Governors, filed March Bank of Philadelphia, filed July 1978, 1978, U.S.C.A. for the Second Circuit. U.S.D.C. for the Eastern District of Penn- Ellis Banking Corporation v. Board of Govsylvania. ernors, filed May 1978, U.S.C.A. for the Beckley v. Board of Governors, filed July Fifth Circuit. 1978, U.S.D.C. for the Northern District of United States League of Savings Associations Illinois. v. Board of Governors, filed May 1978, Independent Bankers Association of Texas v. U.S.D.C. for the District of Columbia. First National Bank in Dallas, et al., filed Hawkeye Bancorporation v. Board of Gov- July 1978, U.S.C.A. for the Northern Dis- ernors, filed April 1978, U.S.C.A. for the trict of Texas. Eighth Circuit. Mid-Nebraska Bancshares, Inc. v. Board of Dakota Bankshares, Inc. v. Board of Gov- Governors, filed July 1978, U.S.C.A. for the ernors, filed April 1978, U.S.C.A. for the District of Columbia. Eighth Circuit. NCNB Corporation v. Board of Governors, Security Bancorp and Security National Bank filed June 1978, U.S.C.A. for the Fourth v. Board of Governors, filed March 1978, Circuit. U.S.C.A. for the Ninth Circuit. NCNB Corporation v. Board of Governors, Michigan National Corporation v. Board of filed June 1978, U.S.C.A. for the Fourth Governors, filed January 1978, U.S.C.A. for Circuit. the Sixth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 913 Wisconsin Bankers Association v. Board of 1976, U.S.C.A. for the District of Columbia. Governors, filed January 1978, U.S.C.A. for Central Wisconsin Bankshares, Inc. v. Board the District of Columbia. of Governors, filed June 1976, U.S.C.A. for Vickars-Henry Corp. v. Board of Governors, the Seventh Circuit. filed December 1977, U.S.C.A. for the Ninth Memphis Trust Company v. Board of Gov- Circuit. ernors, filed February 1976, U.S.D.C. for Emch v. The United States of America, et al., the Western District of Tennessee. filed November 1977, U.S.D.C. for the First Lincolnwood Corporation v. Board of Eastern District of Wisconsin. Governors, filed February 1976, U.S.C.A. Corbin v. Federal Reserve Bank of New York, for the Seventh Circuit. Board of Governors, et. al., filed October Roberts Farms, Inc. v. Comptroller of the 1977, U.S.D.C. for the Southern District of Currency, et. al., filed November 1975, New York. U.S.D.C. for the Southern District of Cali- Central Bank v. Board of Governors, filed fornia. October 1977, U.S.C.A. for the District of Florida Association of Insurance Agents, Inc. Columbia. v. Board of Governors, and National Asso- Investment Company Institute v. Board of ciation of Insurance Agents, Inc. v. Board Governors, filed September 1977, U.S.C.A. of Governors, filed August 1975, actions for the District of Columbia. consolidated in U.S.C.A. for the Fifth Cir- BankAmerica Corporation v. Board of Gov- cuit. ernors, filed May 1977, U.S.C.A. for the David R. Merrill, et. al. v. Federal Open Northern District of California. Market Committee of the Federal Reserve BankAmerica Corporation v. Board of Gov- System, filed May 1975, U.S.D.C. for the ernors, filed May 1977, U.S.C.A. for the District of Columbia. Ninth Circuit. Bankers Trust New York Corporation v. Board National Automobile Dealers Association, Inc. of Governors, filed May 1973, U.S.C. A. for v. Board of Governors, filed November the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 Membership of the Board of Governors of the Federal Reserve System, 1913-78 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg New York do Term expired Aug. 9, 1918. Frederic A. Delano Chicago do Resigned July 21, 1918. W. P. G. Harding Atlanta do Term expired Aug. 9, 1922. Adolph C. Miller San Francisco do Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss .. New York.... Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah .. .. Chicago .. Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt ..June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills .. Cleveland . . Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell .. May 12, 1921 Resigned May 12, 1923. Milo D. Campbell .. Chicago .. Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger .. Cleveland .... .. May 1, 1923 Resigned Sept. 15, 1927. George R. James .. St. Louis .. May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.3 Edward H. Cunningham .. Chicago .do Died Nov. 28, 1930. Roy A. Young Minneapolis .... Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee Kansas City .... May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak Chicago June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J. J. Thomas Kansas City .. .do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland .do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta .do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis Richmond June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. .. St. Louis Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia Apr. 15, 1948 Resigned Mar.. 31, 1951. Edward L. Norton Atlanta Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis .do Resigned June 30, 1952. Wm. McC. Martin, Jr New York Apr. 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A. L. Mills, Jr San Francisco .. Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson Kansas City .do Reappointed in 1964. Resigned Apr. 30, 1973. For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Membership of the Board of Governors, 1913-78 915 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston Philadelphia Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson Dallas Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr Atlanta .... Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell Chicago AAuugg . 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane Richmond .. Nov. 29, 1963 Served until Mar. 8, 1974.3 Apr. 30, 1965 Served through May 31, 1972. Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill Dallas May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns New York JJaann.. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan St. Louis ... Jan. 4, 1972 Resigned June 1, 1975. June 5, 1972 Resigned Jan. 2, 1976. June 11, 1973 Resigned May 15, 1976. Henry C. Wallich Boston . Mar. 8, 1974 Oct. 29, 1974 Philip C. Jackson, Jr Atlanta July 14, 1975 Resigned Nov. 17, 1978. Jan. 5, 1976 Feb. 13, 1976 Died Nov. 19, 1978. June 1, 1976 Resigned Feb. 24, 1978. Mar. 8, 1978 Nancy H. Teeters Chicago. Sept. 18, 1978 CHAIRMEN4 VICE CHAIRMEN4 Charles S. Hamlin . .Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano . .Aug. 10, 1914-Aug. 9, 1916 W. P. G. Harding .. .Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg .. .Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger .May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer Sept. 16, 1930-May 10, 1933 J.J.Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black ... .May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1936-Dec. 2, 1947 MarrinerS. Eccles ..Nov. 15, 1934-Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe .Apr. 15, 1948-Mar. 31, 1951 J. L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm.McC. Martin, Jr.Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell .May 1, 1973-Feb. 13, 1976 Arthur F. Burns ....Feb. 1,1970-Jan. 31, 1978 Stephen S. Gardner .Feb. 13, 1976-Nov. 19, 1978 G. William Miller .. .Mar. 8, 1978- EX-OFFICIO MEMBERS1 SECRETARIES OF THE TREASURY COMPTROLLERS OF THE CURRENCY W. G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton WilliamsFeb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger .Mar. 17, 1921-Apr. 30, 1923 David F. Houston .. .Feb. 2, 1920-Mar. 3, 1921 Henry M.Dawes ...May 1, 1923-Dec. 17, 1924 Andrew W. Mellon . .Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J. W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin .Mar. 4, 1933-Dec. 31, 1933 J. F. T. O'Connor. . .May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr .Jan. 1, 1934-Feb. 1, 1936 ^nder the provisions of the original Federal Reserve Act the of the Currency should continue to serve as members until Feb. Federal Reserve Board was composed of seven members, in- 1, 1936; that the appointive members in office on the date of cluding five appointive members, the Secretary of the Treasury, that Act should continue to serve until Feb. 1, 1936, or until who was ex-officio chairman of the Board, and the Comptroller their successors were appointed and had qualified; and that of the Currency. The original term of office was 10 years, and thereafter the terms of members should be 14 years and that the the five original appointive members had terms of 2, 4, 6, 8, designation of Chairman and Vice Chairman of the Board should and 10 years, respectively. In 1922 the number of appointive be for a term of 4 years. members was increased to six, and in 1933 the term of office 2Date after words "Resigned" and "Retired" denotes final was increased to 12 years. The Banking Act of 1935, approved day of service. Aug. 23, 1935, changed the name of the Federal Reserve Board Successor took office on this date. to the Board of Governors of the Federal Reserve System and 4Chairman and Vice Chairman were designated Governor and provided that the Board should be composed of seven appointive Vice Governor before Aug. 23, 1935. members; that the Secretary of the Treasury and the Comptroller Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

917 Announcements demand in Euro-markets for dollar-denominated JOINT TREASURY-FEDERAL assets. RESERVE STATEMENT A swap arrangement is a renewable, short-term facility under which a central bank agrees to ex- The Treasury Department and the Federal Reserve change its own currency for the currency of the announced on November 1, 1978, measures to other party up to a specified amount. In all recipstrengthen the dollar and thereby to counter conrocal currency arrangements the Federal Reserve tinuing domestic inflationary pressures. Bank of New York acts on behalf of the Federal The Federal Reserve announced the following Reserve System under the direction of the Federal specific actions: Open Market Committee. The Federal Reserve's —Approval of an increase of 1 percentage point reciprocal currency arrangements with the central in the discount rate at the Federal Reserve Bank of New York from 8V2 to 9l/i per cent. The banks of Germany, Japan, and Switzerland are now as follows: discount rate is the rate that is charged member banks when they borrow from their district Federal German Federal Bank $6 billion Reserve Bank. Bank of Japan $5 billion Swiss National Bank $4 billion —Establishment of a supplementary reserve re- The joint Treasury-Federal Reserve anquirement, in addition to present member bank nouncement is as follows: reserve requirements, equal to 2 per cent of time deposits in denominations of $100,000 or more. JOINT STATEMENT OF SECRETARY —Increases of $7.6 billion, to $15 billion, in the Federal Reserve's reciprocal currency (swap) OF THE TREASURY, W. MICHAEL arrangements with the central banks of Germany, BLUMENTHAL, AND FEDERAL RESERVE Japan, and Switzerland and activation of the swap BOARD CHAIRMAN, arrangement with the Bank of Japan. Foreign G. WILLIAM MILLER currencies available under these expanded arrangements will be used along with foreign cur- Recent movement in the dollar exchange rencies available to the Treasury in a program of rate has exceeded any decline related to fundamental factors, is hampering progress forceful exchange market intervention in coorditoward price stability, and is damaging the nation with foreign central banks to correct recent climate for investment and growth. The time excessive exchange-rate movements. has come to call a halt to this development. The supplementary reserve requirement will The Treasury and Federal Reserve are today announcing comprehensive corrective acapply to all outstanding large-denomination time tions. deposits beginning November 2, with reserves maintained 2 weeks later. Existing reserve re- In addition to domestic measures being quirements on such deposits range from 1 per cent taken by the Federal Reserve, the United States will, in cooperation with the governfor longer-term deposits to 6 per cent on deposits ments and central banks of Germany and maturing in less than 6 months. The supplementary Japan and the Swiss National Bank, interrequirement of 2 per cent will apply to all large- vene in a forceful and coordinated manner denomination time deposits regardless of maturity in the amounts required to correct the situation. The United States has arranged faciliand will increase required reserves by about $3 ties totaling $30 billion in the currencies of billion. these three countries for its participation in The reserve requirement action will help to the coordinated market intervention activimoderate the recent relatively rapid expansion in ties. In addition, the Treasury will increase bank credit. It will also increase the incentive for its gold sales to at least IV2 million ounces monthly beginning in December. member banks to borrow funds from abroad and thereby to strengthen the dollar by improving the The currency mobilization measures in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 Federal Reserve Bulletin • November 1978 elude drawings on the U.S. reserve tranche whether a regulation—in whole or in part—is in the International Monetary Fund for part required by law and the costs and benefits of each, of which we contemplate that the General whether underlying statutes need revision, and Arrangements to Borrow will be activated; whether there are more desirable nonregulatory sales of special drawing rights; increases in central bank swap facilities; and issuance of alternatives to resolving issues addressed by the foreign currency-denominated securities by regulations. In addition to canceling obsolete regthe U.S. Treasury. ulations, changes may involve simplification of Fundamental economic conditions and language, elimination of parts of regulations found growth trends in the four nations are moving not to be required by law, and redrafting to imtoward a better international balance. This prove the format, all in light of the relation of will provide an improved framework for a regulations to current policy goals and benefits to restoration of more stable exchange markets and a correction of recent excessive ex- the public. The Board may also make recomchange-rate movements. mendations to the Congress for statutory changes needed to permit modernization of regulations. Subsequently, the Board approved actions by the directors of the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, Chi- PHILIP C. JACKSON, JR.: cago, St. Louis, Minneapolis, Kansas City, Resignation as a Member Dallas, and San Francisco, increasing the discount of the Board of Governors rate of those banks from 8V2 to 9V2 per cent, effective November 2, and of the Federal Reserve The resignation of Philip C. Jackson, Jr., as a Bank of Atlanta, effective November 3, 1978. member of the Board of Governors of the Federal Reserve System was announced on October 18, 1978. In a letter to the President, Governor Jack- REGULATION E: Cancellation son cited personal reasons for his decision, which was effective November 17. The Board of Governors announced on November Governor Jackson of Birmingham, Alabama, 9, 1978, that it is canceling one of its regulations was sworn into office as a member of the Board as its first action under a program to clarify and on July 14, 1975, for the term that expires on simplify all of its regulations. January 31, 1982. The Board decided to cancel Regulation E While a member of the Board for more than (Purchase of Warrants), which governed the pur- 3 years, Governor Jackson had special oversight chase by Federal Reserve Banks of short-term responsibilities for the Board's consumer affairs State or local securities issued in anticipation of operations, including the drafting of regulations tax or other assured receipts. under the Equal Credit Opportunity Act and the Regulation E has been on the Federal Reserve's Home Mortgage Disclosure Act. He also had spebooks since 1915. It has not been used since 1933, cial responsibilities in the areas of bank superviwhen the Federal Reserve Act was amended to sion and regulation, research and statistics, and give the System alternative means of purchasing Federal Reserve Bank activities. He initiated this such securities, called warrants, in the open mar- year a project to simplify and clarify all Board ket. regulations and assumed responsibility for imple- At the same time the Board decided against menting this program. taking any action at present to amend Regulation A copy of Governor Jackson's letter of resigna- C, which implements the Home Mortgage Disclo- tion follows: sure Act. The Act will expire in June 1980 unless extended by the Congress. Pending the decision of the Congress on the act, and to assist the October 18, 1978 Congress in making its decision, the Board, along The President with other Federal agencies, is conducting studies The White House of the costs and benefits resulting from the required Washington, D.C. 20500 disclosures about amounts of local mortgage lend- Dear Mr. President: ing. For personal reasons, I hereby resign as For the review of all of its 26 regulations, the a member of the Board of Governors of the Board has issued guidelines calling for a new look Federal Reserve System effective November at regulations and related rules to determine 17, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 919 It has been a privilege to serve our country In addition to serving as a director of several with a most distinguished and capable group national corporations, Mr. Gardner was active in of colleagues. Philadelphia civic affairs. He served as chairman of the Greater Philadelphia Movement and the Yours very truly, Mayor's Advisory Committee and was a trustee of the United Fund. He was also metro-chairman Philip C. Jackson, Jr. of the National Alliance of Businessmen. His other service included that as trustee of the Children's The President sent the following letter of accept- Hospital of Philadelphia and a director of the ance: Philadelphia Orchestra Association and the Phila- THE WHITE HOUSE delphia College of Art. He was a member of the WASHINGTON Old Philadelphia Development Corporation and Chairman of the Penns Landing Project during its November 20, 1978 planning. To Philip Jackson Mr. Gardner attended Harvard University and I have your letter and I accept your resigna- received an M.B.A. from the Harvard Graduate tion as a Member of the Board of Governors School of Business Administration. of the Federal Reserve System, effective No- He is survived by his wife, Connie, of the home vember 17, 1978. in Washington; daughters, Susan Reitlinger of Throughout your public service, you have Zurich, Switzerland, and Hilary Keaton, of carried out your responsibilities with dedica- Washington; and sons, Seth T. and Pierce S., of tion, energy, and purpose and have truly Washington, and S. Symmes of Philadelphia; his earned the respect of your colleagues in Government. I know that in the years ahead you mother, Mildred Edmands Gardner, of Wakefield, will be able to look back with pride on your Mass.; and two sisters and eight grandchildren. many accomplishments. A memorial service was held at St. Alban's You may be sure that you take with you my Church, Washington, D.C. on November 21, best wishes for every future success and hap- 1978. piness. Sincerely, Jimmy Carter REGULATION Z: Exemption STEPHEN S. GARDNER: The Board of Governors has announced that it has Vice Chairman of the Board of Governors approved an application by the State of Massa- Stephen S. Gardner, 56, Vice Chairman of the chusetts for an exemption from the Federal Truth Board of Governors and former Deputy Secretary in Lending Act and its implementing Regulation of the Treasury, died November 19 at his home Z (Truth in Lending) covering credit transactions in Washington, D.C. Mr. Gardner had been ill that involve Federally chartered credit unions in for several months prior to his death. Massachusetts, effective November 20, 1978. Mr. Gardner received a Presidential appoint- Massachusetts applied for such an exemption ment to the Federal Reserve Board in 1976 fol- based on an agreement between the Massachusetts lowing service of lVi years at the Treasury post. Commissioner of Banks and the National Credit His Government service was preceded by 25 years' Union Administration that authorized the Comassociation with the Girard Bank, Philadelphia. missioner to examine Federal credit unions in the His service with Girard Bank began as a credit State for compliance with Massachusetts' Truth in analyst and included positions as the bank's chief Lending Law. lending and operations officer. He served as officer The Truth in Lending Act authorizes the Board in charge of the bank's branch office and was to grant exemptions to States with substantially appointed vice president in 1958. In 1963 he was similar laws and adequate provisions for enforcedesignated senior vice president, and in 1965 was ment. Massachusetts is one of five States that have named executive vice president and director. He been granted an exemption covering State-charbecame president of Girard in 1966 and Chairman tered lenders. The present exemption is the first of the bank's board in 1971. to be extended to Federally chartered lenders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 Federal Reserve Bulletin • November 1978 REGULATION Y: Revised Rules Under the new system, examiners for the three agencies1 will segregate country risk factors from The Board of Governors has announced approval the evaluation of other lending risks and deal with of several technical changes affecting registration this special category of lending risks in a separate of bank holding companies or applications for their section of their examination reports. The commerexpansion. cial credit risks in the banks' international portfo- The Board revised its rules of procedures for lios will continue to be assessed on an individual handling requests for reconsideration of Board loan basis and according to traditional standards decisions and for the handling of requests for of credit analysis. hearings and comments on applications. The new procedures will emphasize diversifica- At the same time, the Board eliminated the tion of exposure to individual countries as the requirement for new bank holding companies to primary method of moderating country risk in register with the Board within 180 days by use international portfolios. Country risk in bank lendof certain forms (F.R. Y-5 and Y-5 (a)). The ing refers to the possibility that economic, politi- Board will collect essential data for registration cal, or social factors within a country might create purposes by means of six questions about the a situation in which borrowers in that country company's financial structure and organization that would be unable to service or to repay their debts will be asked in a letter sent to all bank holding to foreign lenders in a timely manner. This concept companies whose formation the Board has newly of country risk embraces virtually all external approved. Bank holding companies must receive credits to a country whether they are to public or Board approval of their organizational structure private parties. before beginning operations. The registration Diversification is a longstanding, practical, and process will be completed in the annual report that prudential principle of sound lending. It is particmust be filed with the Board by all bank holding ularly relevant to international lending because the companies (form F.R. Y-6). assessment of country risk involves great uncertainties and is subject to a considerable margin of error. The agencies believe proper diversifica- PROPOSED BOARD ACTION tion of loan portfolios provides the best protection for a U.S. bank and the banking system against The Federal Reserve Board has proposed to make a dramatic turn in the economic or political forseveral changes in its Regulation B (Equal Credit tunes of a country or group of countries. Opportunity) that would (1) bring within the scope Determinations of the adequacy of diversificaof the regulation persons such as real estate brokers tion within a bank's portfolio will be based priwho select the creditor(s) to which a credit appli- marily on comparisons of individual country risk cation will be submitted; (2) eliminate the exemp- exposures to a bank's capital funds. Where contion of business credit from the recordkeeping and centrations are found, examiners will separate a notification requirements in certain transactions bank's loans in a country by type of credit, type under $100,000; and (3) eliminate the exemption of borrower, and loan maturities. The degree of of business credit from the bar against marital risk involved will be assessed in the light of these status information. components as well as of internal and external The Board requested comment by December 26, factors affecting the debt-service capacity of public 1978. and private borrowers within the country. The special section of the examination report dealing with country exposure will consist of four parts: UNIFORM EXAMINATION 1. A list of concentrations of a bank's loans PROCEDURE subject to country risk exposure; 2. Comments on such concentrations; The three Federal bank regulatory agencies have announced adoption of a uniform examination 1 Comptroller of the Currency (supervisor of national procedure for evaluating and commenting on banks); Board of Governors (supervisor of State-chartered "country risk" factors involved in international member banks); and the Federal Deposit Insurance Corporation (supervisor of insured State-chartered banks that are not memlending by U.S. banks. bers of the Federal Reserve System). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 921 3. Classification of credits as substandard, funds at which concentrations should be comdoubtful, or loss; mented on; 4. An analysis of a bank's ability to monitor 3. Determine when credits should be classified and control its country risk exposure. as substandard, doubtful, or loss due to an inter- With the primary objective of encouraging ap- ruption in payment or when an interruption is propriate diversification in the international lend- imminent; and ing portfolios of U.S. banks, the country exposure 4. Prepare commentaries on developments in examination will attempt to point out special risk foreign countries for use by examiners. situations and, when necessary, to secure correc- The committee will draw on country studies tive action. Examiners will list all exposures to especially prepared for its use within the Federal country risk that seem large in relation to the Reserve System, as well as on supplementary lending bank's capital funds. analyses by staffs of each of the three agencies In addition, examiners will make special com- and information from other available sources. ments on concentrations of loans in countries with high debt-service requirements or other actual or potential balance of payments weaknesses. Normally, these comments will refer to relatively large SURVEY OF TRUST ASSETS exposures in such countries and give particular emphasis to situations that include a high propor- The Federal bank regulatory agencies have antion of longer-term loans. Lending in any country nounced a revised survey of trust assets at reguable to meet its current obligations will not be lated institutions to be conducted annually. subject to special comment unless the lending is The new survey will be used to collect data on considered excessive relative to a bank's capital trust assets for the year 1978. Similar survey forms funds. and instructions will be used by the Federal De- Examiners will classify a bank's aggregate posit Insurance Corporation (supervisor of insured credits to a country under the categories of sub- State nonmember banks), the Comptroller of the standard, doubtful, or loss due to country risk only Currency (supervisor of national banks), and the when there has been an interruption in debt serv- Board of Governors (supervisor of State member icing or when such an interruption is considered banks and member trust companies). imminent. In announcing the revised requirements for re- Senior bank management will be expected to porting on trust assets, the agencies said their monitor closely all situations listed or commented objective was to 4'provide more meaningful inforon by examiners. mation regarding the extent of investment author- Another key element of the new procedures will ity and control over trust and agency assets adbe an assessment of a bank management's ability ministered by banks and trust companies." to analyze and monitor country risk in its interna- To this end reporting will be limited to those tional lending. Examiners will include in their assets over which trust departments and companies country risk reports an evaluation of a bank's exercise "investment discretion." A trust instituprocedures for monitoring and controlling expo- tion is deemed to exercise investment discretion sure to country risk, the bank's system for estab- over an account if the institution is authorized to lishing limits to lending in a country, and the buy and sell securities for the account or makes bank's methods for analyzing country risk. recommendations for purchases or sales even The examination system for assessing country though the final decisions are made elsewhere. risk concentrations will be administered by a A number of technical changes in the asset nine-member committee made up chiefly of expe- categories on the survey form have also been rienced examiners from the three Federal bank made. regulatory agencies, to be known as the Intera- In a further change, State member trust compagency Country Exposure Review Committee. Its nies will be included, as well as trust departments primary functions will be to: of member banks, in reporting to the Federal 1. Review and make judgments about economic Reserve. For this reason, the title of the Federal conditions in countries where loans are made by Reserve's survey form has been changed from U.S. banks; "Trust Department Annual Report" (FR 437) to 2. Determine the levels of a bank's capital "Annual Report of Trust Assets" (FR 2437). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 Federal Reserve Bulletin • November 1978 The Trust Department Annual Report of the PROPOSED REGULATORY ACTION Comptroller of the Currency also includes a new The Federal bank regulators on November 1, Special Report. This Special Report collects data 1978, proposed regulatory revisions establishing pertaining to variable-amount notes and financial uniform standards for bank recordkeeping, confirdata for National Bank Surveillance System mation, and other procedures in making securities (NBSS) purposes. The data will augment the transactions for trust department and other bank computerized data base used to monitor national customers. banks' performance. Only trust departments administering fiduciary assets in an amount greater The agencies (Comptroller of the Currency, than $10 million as reflected in the Trust Depart- Federal Reserve Board, and Federal Deposit Inment Annual Report will be required to complete surance Corporation) requested comment by Dethe NBSS data. cember 18, 1978. The three agencies have been conducting annual surveys of trust assets since 1968. NEW BOARD PUBLICATION The new survey forms and instructions are being mailed to all banks supervised by the agencies and The Bank Holding Company Movement to 1978: are available on request. A Compendium is now available for distribution. This study by the Board's staff reviews the available published research on those aspects of bank holding company activity that are relevant UNIFORM RATING SYSTEM to public policy. It covers the following topics: The Federal bank and thrift institution regulators background history of the movement and Federal have announced a joint system for rating data regulation; internal operations, including efficiency processing centers. and performance reviews; implications of growth The system, which was effective on October 18, for safety and soundness; effects on competition and on concentration of banking and financial 1978, was adopted by the Office of the Comptroller resources; and public benefits from the expansion of the Currency (supervisor of national banks), the of bank holding companies and implications for Board of Governors (supervisor of State-chartered community convenience and needs. member banks), the Federal Deposit Insurance Corporation (supervisor of State-chartered non- Copies of the Compendium are available from member banks and of insured mutual savings Publications Services, Division of Administrative banks), and the Federal Home Loan Bank Board Services, Board of Governors of the Federal Re- (supervisor of Federally chartered savings and loan serve System, Washington, D.C. 20551. The price associations). is $2.50 per copy; in quantities of 10 or more Under the new rating system the four agencies sent to one address, $2.25 per copy. will apply uniform standards to data centers that are operated by banks or thrift institutions super- NEW CONSUMER PAMPHLET vised by one of the four agencies, and to other data processing centers that serve such banks or "How to File a Consumer Credit Complaint," the thrift institutions. latest in a series of consumer education pamphlets, The uniform data processing center rating sys- is now available for distribution. tem follows adoption by the Federal regulators The pamphlet explains what to do in the event earlier this year of a joint policy for the examina- of a consumer problem with a bank, such as a tion of data processing centers operated by or possible violation of any of the Federal consumer serving financial institutions they supervise. credit laws or any alleged unfair or deceptive Under the joint rating system: practice. A complaint form addressed to the Fed- • A performance rating system is established eral Reserve is attached to the pamphlet. based upon the evaluation of four critical func- Copies of "How to File a Consumer Credit tions: audit, management, systems development Complaint" may be obtained singly or in bulk free and programming, and computer operations. of charge from the Board of Governors in Wash- • Ratings of these functions are combined into ington or from any of the 12 Federal Reserve a composite rating. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 923 CHANGES IN BOARD STAFF responsibilities in the area of domestic monetary policy, Mr. Axilrod will assume responsibility for The Board of Governors has announced the fol- coordination in the international policy area. lowing official staff appointments in the Division of Federal Reserve Bank Examinations and Budgets, effective October 13, 1978. SYSTEM MEMBERSHIP: Charles W. Bennett as Assistant Director. Mr. Bennett joined the Board's staff in 1966 after Admission of State Banks receiving a B.S. degree from Northwestern Uni- The following banks were admitted to membership versity. He has done graduate work in business in the Federal Reserve System during the period administration at American University and gradu- October 16, 1978, through November 15, 1978: ated from the Stonier School of Banking at Rutgers University. Alabama Raymond L. Teed as Assistant Director. Mr. Fultondale Citibanc of Teed came to the Board in 1971. He received a Alabama/Fultondale B.S. degree in mathematics from Union College Illinois in Schenectady, New York, and has done graduate Glenview Charter State Bank work in business administration at the State Uni- of Glenbrook versity of New York. Utah The Board has also announced an expansion of Salt Lake County . ...Cottonwood Security the responsibilities of the Office of the Staff Bank Director for Monetary Policy. To achieve closer Virginia integration of domestic monetary policy analysis Amelia Courthouse Bank of Amelia and analysis of international policy issues, Stephen Bland Bank of Bland County H. Axilrod has been designated Staff Director for Surry Bank of Monetary and Financial Policy. In addition to his Surry County, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

925 Industrial Production Released for publication November 15 increases. Production of nondurable goods materials—such as textiles, paper, and chemicals—was Industrial production increased an estimated 0.5 per about unchanged. Output of energy materials rose cent in October, the same as in September. Gains sharply, as coal production increased almost 27 per in August and July have been revised up slightly to cent in October. 0.6 per cent and 0.8 per cent, respectively. Output increases in October occurred among most products and materials; sharp increases in both auto assemblies and coal production included recovery from the reduced levels of September resulting from a rail strike. At 148.4 per cent of the 1967 average, industrial production in October was 6.8 per cent higher than a year earlier. Revised data show that industrial production in the third quarter rose at an annual rate of 8.3 per cent from the second quarter. Output of consumer goods increased 0.9 per cent, reflecting a sharp rise in automotive products and further small increases in other durable and nondurable consumer goods. Auto assemblies increased to an annual rate of 9.5 million units in October from 8.9 million in September. Revised data for the previous 3 months indicate larger gains in the production of nondurable consumer goods—such as clothing and food—than had been shown earlier. Output of business equipment increased by 0.4 per cent in October, the same as in September, and was 9.3 per cent higher than a year earlier. Output of durable goods materials rose 0.4 per cent F.R. indexes, seasonally adjusted. Latest figures: October. Auto sales further in October, following 4 months of large and stocks include imports. 1967 -= 100 Percentage change from preceding month to— PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1978 1978 111000///777777 tttooo Sept.* Oct.e May June July Aug Sept. Oct. 111000///777888 Total 147.7 148.4 .5 .7 .8 .6 .5 .5 6.8 Products, total 146.4 147.3 .1 .6 .7 .7 .3 .6 6.0 Final products 143.7 144.8 .0 .4 .8 .7 .3 .8 6.1 Consumer goods 148.8 150.2 -.3 .0 .5 .5 .3 .9 3.7 Durable 160.3 163.7 -1.0 .2 .2 .1 -.5 2.1 4.4 Nondurable 144.3 144.7 -.1 -.1 .6 .6 .8 .3 3.3 Business equipment 166.1 166.8 .6 1.0 1.2 1.0 .4 .4 9.3 Intermediate products 156.5 156.8 .3 1.4 .6 .2 .4 .2 6.1 Construction supplies 155.3 155.4 1.3 1.1 .9 .5 .7 .1 7.2 Materials 149.6 150.2 1.0 .9 1.0 .5 .6 .4 8.1 "Preliminary. eEstimated. NOTE.—Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics CONTENTS DOMESTIC FINANCIAL STATISTICS WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and Liabilities of— A4 Factors affecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans 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 All 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 MONETARY AND CREDIT AGGREGATES FEDERAL FINANCE A30 Federal fiscal and financing operations A13 Bank debits and deposit turnover A14 Money stock measures and components A31 U.S. Budget receipts and outlays A15 Aggregate reserves and deposits of A32 Federal debt subject to statutory member banks limitation A15 Loans and investments of all A32 Gross public debt of U.S. Treasury— commercial banks Types and ownership A33 U.S. Government marketable 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 A3 5 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

2 Federal Reserve Bulletin • November 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 A3 7 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: A3 9 Domestic finance companies—Assets A59 Liabilities to foreigners and liabilities; business credit 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 A69 GUIDE TO TABULAR PRESENTATION A53 Personal income and saving 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 IItteemm Q4 QL Q2 Q3 May June July Aug. Sept. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 Member bank reserves 1 Total 6.1 8.5 6.3 8.3 10.0 15.0 14.9 -9.0 8.1 6.3 '8.3 '6.9 8.3 7.8 16.4 14.3 -8.1 7.4 3.4 14.5 0.3 6.2 -11.4 19.4 8.0 -3.5 11.0 Concepts of money 1 4 M-L 7.5 66..22 99..99 7.6 77..22 7.5 4.8 88..55 1144..11 5 M-2 8.1 6.9 7.9 8.9 7.1 7.8 8.0 10.4 12.5 6 M-3 10.6 7.7 7.8 10.0 7.2 8.4 9.3 11.8 13.9 Time and savings deposits Commercial banks: 7 Total 13.0 12.8 10.1 9.5 13.6 6.1 10.2 7.5 13.8 8 Other than large CD's 8.5 7.3 6.4 10.0 6.7 8.2 10.3 11.5 11.8 9 Thrift institutions 2 14.4 8.9 7.6 11.6 7.2 9.2 11.2 13.9 16.0 10 Total loans and investments at commercial banks 3 9.9 9.6 13.0 11.0 15.6 6.0 16.7 5.2 9.9 1977 1978 1978 Q4 QL Q2 Q3 June July Aug. Sept. Oct. Interest rates (levels, per cent per annum) Short-term rates 11 Federal funds 4 6.51 6.76 7.28 8.09 7.60 7.81 8.04 8.45 8.96 12 Federal Reserve discount 5 5.93 6.46 6.78 7.50 7.00 7.23 7.43 7.83 8.26 13 Treasury bills (3-month market yield)6 6.11 6.39 6.48 7.31 6.73 7.01 7.08 7.85 7.99 14 Commercial paper (90- to 119-day)6.7 6.56 6.76 7.16 8.03 7.59 7.85 7.83 8.39 8.98 Long-term rates Bonds: 15 U.S. Government8 7.78 8.19 8.43 8.53 8.53 8.69 8.45 8.47 8.69 16 State and local government 9 5.57 5.65 6.02 6.16 6.22 6.28 6.12 6.09 6.13 17 Aaa utility (new issue) 1 o 8.27 8.70 8.98 8.94 9.09 9.14 8.82 8.86 9.17 18 Conventional mortgages 11 9.05 9.23 9.58 9.80 9.75 9.80 9.80 9.80 9.95 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 Nonfinancial Statistics • November 1978 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily Weekly averages of daily figures for weeks endingfigures Factors 1978 1978 Aug. Sept. Oct.P Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 p Oct. 25p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding... 125,955 127,811 133,356 123,902 126,849 132,392 132,783 131,739 134,320 134,149 2 U.S. Government securities1 109,243 110,604 115,008 106,744 109,832 113,750 115,043 114,300 114,207 115,865 3 Bought outright 108,380 109,862 113,977 106,614 109,832 112,330 112,987 113,511 113,848 114,737 4 Held under repurchase agreement 863 742 1,031 130 1,420 2,056 789 359 1,128 5 Federal agency securities 8,220 8,323 8,353 7,969 7,950 8,920 8,689 8,219 8,354 8,388 6 Bought outright 8,016 7,958 7,940 7,963 7,950 7,950 7,946 7,941 7,941 7,938 7 Held under repurchase agreement 204 365 413 970 743 278 413 450 8 Acceptances 145 257 249 3 570 603 161 170 282 9 Loans 1,147 1,068 1,262 510 923 1,560 1,286 1,239 1,249 1,314 10 Float 4,826 5,220 5,824 6,382 5,758 5,293 4,722 5,309 7.670 5,594 11 Other Federal Reserve assets 2,374 2,339 2,660 2,294 2,385 2.299 2,440 2,512 2.671 2,707 12 Gold stock 11,683 11,670 11,660 11,668 11,668 11,668, 11,668 11,668 11,656 11,655 13 Special Drawing Rights certificate account 1,279 1,300 1,300 1,300 1,300 1.300 1,300 1,300 1,300 1,300 14 Treasury currency outstanding 11,644 11,681 11,725 11,674 11,683 11,692 11,691 11,703 11,729 11,738 ABSORBING RESERVE FUNDS 15 Currency in circulation 107,241 108,021 108,872 108,512 108,127 107,663 107,954 108,901 109,259 108,912 16 Treasury cash holdings 315 302 303 306 315 300 301 307 317 296 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury 10,065 11,080 14,948 7,803 9,497 15,429 15,138 14,507 15,131 15,377 18 Foreign 281 279 300 278 299 271 294 347 283 275 19 Other2 609 692 590 673 724 579 640 559 585 619 20 Other F.R. liabilities and capital... 3,971 4,077 4,244 3,783 4,046 4,285 4,224 3,898 4,208 4,416 21 Member bank reserves with F.R. Banks 28,079 28,010 28,784 27,189 28,492 28,525 28,890 27,890 29,223 28,948 End-of-month figures Wednesday figures 1978 1978 Aug. Sept. Oct p Sept. 13 Spet. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18^ Oct. 25p SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding 128,374 132,114 126,356 128,955 135,483 130,818 138,120 132,396 136,795 23 U.S. Government securities1 111,739 115,279 115,322 108,975 109,824 116,363 112,460 116,838 112,522 117,535 24 Bought outright 109,858 113,027 114,659 108,067 109,824 113,259 112,278 113,660 112,522 114,489 25 Held under repurchase agreement 1,881 2,252 663 908 3,104 182 3,178 3,046 26 Federal agency securities 8,097 8,597 8,065 7,996 7,950 9,138 8,020 9,169 7,941 9,123 27 Bought outright 7,978 7,950 7,938 7,950 7,950 7,950 7,941 7,941 7,941 7,938 28 Held under repurchase agreement 119 647 127 46 1,188 79 1,228 1,185 29 Acceptances 296 715 236 23 753 216 611 724 30 Loans 954 1,365 1,206 566 2,032 1,158 1,505 676 1,660 1,796 31 Float 5,225 3,719 4,377 6,380 6,788 5,742 6,051 8,266 7,637 4,879 32 Other Federal Reserve assets.. . 2,063 2,439 2,756 2,416 2,361 2,330 2,566 2,560 2,636 2,738 33 Gold stock 11,679 11,668 11,655 11,668 11,668 11,668 11,668 11,667 11,655 11,655 34 Special Drawing Rights certificate account 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 35 Treasury currency outstanding.... 11,641 11,683 11,755 11,683 11,683 11,695 11,700 11,708 11,735 11,749 ABSORBING RESERVE FUNDS 36 Currency in circulation 107,588 107,663 109,317 108,684 108,150 107,985 108,566 109,568 109,271 109,063 37 Treasury cash holdings 299 299 291 306 297 297 304 308 398 294 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury 12,068 16,647 15,467 7,880 12,997 13,543 12,162 15,084 15,348 11,748 39 Foreign 309 325 305 285 337 253 272 300 252 257 40 Other 2 691 628 531 592 660 559 545 533 554 624 41 Other F.R. liabilities and capital.. 4,329 4,372 4,560 3,819 4,671 4,312 3,904 4,109 4,253 4,653 42 Member bank reserves with F.R. Banks 27,705 26,830 26,200 29,441 26,494 33,197 29,733 32,893 27,010 34,860 1 Includes securities loaned—fully guaranteed by U.S. Govt, securities voluntarily held with member banks and redeposited in full with Federal pledged with F.R. Banks—and excludes (if any) securities sold and sched- Reserve Banks. uled to be bought back under matched sale-purchase transactions. NOTE.—For amounts of currency and coin held as reserves, see Table 2 Includes certain deposits of foreign-owned banking institutions 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12 RESERVES AND BORROWINGS Member Banks Millions of dollars Monthly averages of daily figures Reserve classification 1978 Dec. Feb. Mar. Apr. May June July Aug. Sept. All member banks Reserves: 1 At F.R. Banks 27,057 27,337 27,155 27,776 27,890 27,840 28,570 28,079 28,010 2 Currency and coin 9,351 9,320 8,992 9,028 9,151 9,345 9,542 9,512 9,605 3 Total heldi 36,471 36,738 36,231 36,880 37,119 37,262 38,189 37,666 37,689 4 Required 36,297 36,605 35,925 36,816 36,867 37,125 38,049 37,404 37,614 5 Excess1 174 133 306 64 252 137 140 262 75 Borrowings at F.R. Banks:2 6 Total 558 405 344 539 1,227 1,111 1,286 1,147 1,068 7 Seasonal 54 52 47 43 93 120 143 188 191 Large banks in New York City 8 Reserves held 6,244 6,563 6,276 6,247 6,315 6,341 6,606 6,334 6,182 9 Required 6,279 6,584 6,193 6,320 6,236 6,376 6,581 6,290 6,251 10 Excess -35 -21 83 -73 79 -35 25 44 -69 11 Borrowings2 48 12 21 61 113 54 129 58 78 Large banks in Chicago 12 Reserves held 1,593 1,623 1,629 1,670 1,697 1,668 1,708 1,648 1,655 1 1 3 4 E R x eq ce u s i s r ed 1, - 6 2 1 0 3 1, - 6 1 3 0 3 1,620 9 1, - 6 1 8 6 6 1,66 2 9 8 1,6 -2 7 0 1,707 1 1,646 2 1,650 5 15 Borrowings2 26 11 11 19 20 20 3 35 Other large banks 16 Reserves held 13,993 13,867 13,729 14,135 14,106 14,250 14,553 14,502 14,564 17 Required 13,931 13,861 13,662 14,077 14,079 14,225 14,569 14,423 14,541 18 Excess 62 6 67 58 27 25 -16 79 23 19 Borrowings2 243 150 92 249 500 536 499 417 363 All other banks 20 Reserves held 14,641 14,685 14,597 14,828 15,001 15,003 15,322 15,182 15,288 21 Required 14,474 14,527 14,450 14,733 14,883 14,854 15,192 15,045 15,172 22 Excess 167 158 147 95 118 149 130 137 116 23 Borrowings2 241 243 220 218 595 501 638 669 592 Weekly averages of daily figures for weeks ending— 1978 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18? Oct. 25 p All member banks Reserves: 24 At F.R. Banks 28,455 28,256 27,947 27,189 28,492 28,525 28,890 27,890 29,223 28,948 25 Currency and coin 8,777 9,474 9,578 9,973 8,896 9,842 9,904 10,031 9,509 9,099 26 Total held i . 37,307 37,804 37,600 37,236 37,462 38,441 38,869 37,997 38,804 38,119 27 Required 37,316 37,535 37,295 37,123 37,287 38,218 38,746 37,647 38,906 37,752 28 Excess1 -9 269 305 113 175 223 123 350 -102 367 Borrowings at F.R. Banks:2 29 Total 1,606 1,023 1,165 510 925 1,560 1,286 1,239 1,249 1,314 30 Seasonal 196 204 187 175 189 204 208 205 220 236 Large banks in New York City 31 Reserves held 6,287 6,158 6,378 6,106 6,211 6,249 6,586 6,225 6,391 6,049 32 Required 6,207 6,198 6,281 6,172 6,119 6,307 6,551 6,209 6,739 6,025 33 Excess 80 -40 97 -66 92 -58 35 16 -348 24 34 Borrowings2 25 66 143 6 113 174 263 226 75 Large banks in Chicago 35 Reserves held 1,610 1,662 1,669 11,,669999 1,616 1,693 1,681 1,613 1,741 1,560 36 Required 1,609 1,662 1,669 11,,668844 1,621 1,618 1,677 1,612 1,743 1,568 37 Excess 1 1155 -5 75 4 -2 -8 38 Borrowings2 4 9 134 4 6 3 36 12 Other large banks 39 Reserves held 14,246 14,689 14,372 14,376 14,392 14,892 15,045 14,850 14,737 14,711 40 Required 14,395 14,526 14,336 14,356 14,407 14,799 15,091 14,652 15,033 14,728 41 Excess -149 163 36 20 -15 93 -46 198 -296 -17 42 Borrowings2 846 158 379 123 210 727 424 435 396 All All other banks 43 Reserves held 15,164 15,295 15,181 15,055 15,243 15,607 15,557 15,309 15,352 15,372 44 Required 15,105 15,149 15,009 14,911 15,140 15,494 15,427 15,174 15,391 15,431 45 Excess 59 146 172 144 103 113 130 135 -39 -59 46 Borrowings2 731 799 634 387 575 716 682 538 591 800 i Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with Board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available, nonmember bank merges into an existing member bank, or when a 2 Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • November 1978 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1978, week ending— Type Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Total, 46 banks Basic reserve position 1 Excess reserves1 131 144 41 93 136 65 182 -103 LESS: 2 Borrowings at F.R. Banks 129 297 227 202 261 344 404 3 Net interbank Federal funds transactions 14,334 16,176 18,905 15,867 14,917 15,375 18,536 17,470 EQUALS : Net surplus, or deficit (-): 4 Amount -14,333 -16,328 -18,864 -16,001 -14,983 -15,571 -18,698 -17,977 5 Per cent of average required reserves 91.4 104.2 120.8 103.3 93.9 94.7 118.6 108.0 Interbank Federal funds transactions Gross transactions: Purchases 22,130 23,697 25,096 23,696 23,266 23,623 25,677 24,696 Sales 7,796 7,522 6,191 7,828 8,350 8,248 7,141 7,226 Two-way transactions2 5,680 5,428 5,380 5,434 5,133 5,601 5,930 5,973 Net transactions: Purchases of net buying banks.. 16,450 18,270 19,717 18,262 18,134 18,022 19,747 18,722 Sales of net selling banks 2,116 2,094 811 2,394 3,218 2,647 1,211 1,253 Related transactions with U.S. Government securities dealers 11 Loans to dealers 3 2,524 2,985 5,342 3,128 3,005 3,222 3,397 3,159 12 Borrowing from dealers4 2,028 1,297 1,421 951 2,574 2,186 1,505 1,661 13 Net loans 496 1,688 3,921 2,178 431 1,037 1,892 1,498 8 banks in New York City Basic reserve position 14 Excess reserves1 3 101 91 27 34 76 -45 LESS: 15 Borrowings at F.R. Banks 66 143 99 174 196 226 16 Net interbank Federal funds transactions 3,906 4,664 5,504 5,062 5,050 5,032 6,172 4,647 EQUALS : Net surplus, or deficit (-): 17 Amount -3,969 -4,707 -5,502 -4,971 -5,122 -5,173 -6,292 -4,918 18 Per cent of average required reserves 70.9 83.0 98.8 89.7 89.9 87.0 112.4 80.7 Interbank Federal funds transactions Gross transactions: Purchases 5,453 5,686 6,067 5,932 5,858 5,953 7,238 5,813 Sales 1,547 1,022 564 871 808 921 1,067 1,166 Two-way transactions2 1,547 1,022 564 871 808 921 1,067 1,024 Net transactions: Purchases of net buying banks.. 3,906 4,664 5,504 5,062 5,050 5,032 6,172 4,789 Sales of net selling banks 142 Related transactions with U.S. Government securities dealers 24 Loans to dealers 3 1,657 2,129 3,300 2,180 1,848 1,968 2,148 1,717 25 Borrowing from dealers4 598 546 848 536 539 491 547 564 26 Net loans 1,060 1,583 2,453 1,643 1,309 1,477 1,602 1,152 38 banks outside New York City Basic reserve position 27 Excess reserves1 128 43 40 2 109 31 106 -59 LESS: 28 Borrowings at F.R. Banks 64 154 227 104 86 148 177 29 Net interbank Federal funds transactions 10,429 11,511 13,402 10,806 9,867 10,343 12,364 12,823 EQUALS : Net surplus, or deficit (-): Amount -10,364 -11,622 -13,362 -11,031 -9,861 -10,398 -12,406 -13,059 Per cent of average required reserves 102.8 116.2 133.0 110.9 96.1 99.1 121.9 123.9 Interbank Federal funds transactions Gross transactions: Purchases 16,677 18,012 19,029 17,763 17,409 17,670 18,439 18,883 Sales 6,249 6,500 5,627 6,958 7,542 7,327 6,075 6,060 Two-way transactions2 4,133 4,406 4,816 4,563 4,325 4,680 4,864 4,950 Net transactions: Purchases of net buying banks.. 12,545 13,606 14,213 13,200 13,084 12,990 13,575 13,933 Sales of net selling banks 2,116 2,094 811 2,394 3,218 2,647 1,211 1,110 Related transactions with U.S. Government securities dealers 37 Loans to dealers 3 866 856 2,042 949 1,157 1,255 1,249 1,442 38 Borrowing from dealers4 1,431 750 574 414 2,036 1,695 958 1,096 39 Net loans -564 105 1,468 535 -878 -440 291 346 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. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 8 1 22 7 74 31 15 6 13 LESS: 41 113322 3333 42 Net interbank Federal funds transactions 4,356 4,922 5,593 5,206 4,998 4,992 5,163 5,297 3,911 EQUALS: Net surplus, or deficit (-): 43 Amount --44,,334499 -4,921 -5,571 -5,331 -4,924 --44,,996600 --55,,114488 --55,,332233 --33,,889988 44 Per cent of average required reserves 280.0 315.5 353.5 352.4 325.8 316.5 342.2 325.7 266.1 Interbank Federal funds transactions Gross transactions: 45 Purchases 5,749 6,240 6,918 6,436 6,175 6,147 6,395 6,749 5,242 46 Sales 1,393 1,319 1,325 1,230 1,178 1,156 1,232 1,452 1,331 47 Two-way transactions2 1,392 1,318 1,325 1,229 1,178 1,156 11,,223322 11,,445522 11,,333311 Net transactions: 48 Purchases of net buying banks... 44,,335566 44,,992222 55,,559933 55,,220077 4,997 44,,999922 5,163 5,297 33,,991111 4499 Sales of net selling banks Related transactions with U.S. Government securities dealers 50 Loans to dealers3 173 253 247 103 166 344 208 334 77 51 Borrowing from dealers4 336 341 196 58 727 325 189 241 396 52 Net loans -163 -88 51 45 -561 19 19 93 -319 33 other banks Basic reserve position 53 Excess reserves * 120 4422 1188 -6 3355 9911 --6655 6633 LESS: 54 Borrowings at F R Banks 6644 115544 9944 104 86 114488 114455 118822 5555 Net interbank Federal funds transactions 6,072 6,589 7,809 5,600 4,870 5,351 7,201 7,527 6,714 EQUALS: Net surplus, or deficit (-): 56 Amount --66,,001166 -6,701 -7,791 -5,700 -4,938 -5,438 -7,258 -7,736 -6,833 57 Per cent of average required reserves 70.6 79.4 9922..00 6677..66 56.4 60.9 83.7 86.8 78.7 Interbank Federal funds transactions Gross transactions: 58 10,929 11,771 12,111 11,328 11,234 11,522 12,044 12,135 11,838 59 Sales 4,856 5,182 4,302 5,728 6,364 6,171 4,843 4,608 5,124 60 Two-way transactions2 2,740 3,088 3,491 3,334 3,147 3,524 3,631 3,498 3,509 Net transactions: 61 Purchases of net buying banks... 8,188 8,684 88,,662200 7,99 4 8,087 7,998 8,412 8,637 8,329 62 Sales of net selling banks 2,116 2,094 811 2,394 3,218 2,647 1,211 1,110 1,614 Related transactions with U.S. Government securities dealers 63 Loans to dealers3 694 603 1,795 846 991 911 1,041 1,108 1,018 64 Borrowing from dealers4 1,094 409 378 356 1,308 1,370 769 855 1,181 65 -401 193 1,417 490 -317 -459 272 253 -163 1 Based on reserve balances, including adjustments to include waivers 4 Federal funds borrowed, net funds acquired from each dealer by of penalties for reserve deficiencies in accordance with changes in policy clearing banks, reverse repurchase agreements (sales of securities to of the Board of Governors effective Nov. 19, 1975. dealers subject to repurchase), resale agreements, and borrowings secured 2 Derived from averages for individual banks for entire week. Figure by U.S. Govt, or other securities. for each bank indicates extent to which the bank's average purchases and sales are offsetting. NOTE.—Weekly averages of daily figures. For description of series, 3 Federal funds loaned, net funds supplied to each dealer by clearing see August 1964 BULLETIN, pp. 944-53. Back data for 46 banks appear banks, repurchase agreements (purchases from dealers subject to resale), in the Board's Annual Statistical Digest, 1971-1975, Table 3. or other lending arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • November 1978 1.14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and previous levels Loans to member banks— Loans to all others Under Sec. 10(b)2 under Sec. 13, last par.4 Federal Reserve Under Sees. 13 and 13a i Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 10/31/78 date rate 10/31/78 date rate 10/31/78 date rate 10/31/78 date rate Boston 81/z 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 11% 10/16/78 11 New York 8Vi 10/16/78 8 9 10/16/78 8*4 91/2 10/16/78 9 H1/2 10/16/78 11 Philadelphia 81/2 10/20/78 8 9 10/20/78 81/2 91/2 10/20/78 9 IH/2 10/20/78 11 Cleveland 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 IH/2 10/16/78 11 R At ic la h n m ta o nd 8 81 1 / / 2 2 1 10 0 / / 1 1 6 6 / / 7 7 8 8 8 8 9 9 1 1 0 0 / / 1 1 6 6 / / 7 7 8 8 8 8 1 1 / / 2 2 9 9 1 1 / / 2 2 1 10 0 / / 1 1 6 6 / / 7 7 8 8 9 9 1 n 1 y V 2 4 1 1 0 0 / / 1 1 6 6 / / 7 7 8 8 1 1 1 1 Chicago 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 111/2 10/16/78 11 St. Louis 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 IN/2 10/16/78 11 Minneapolis 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 111/2 10/16/78 11 Kansas City 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 IN/2 10/16/78 11 Dallas 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 HV4 10/16/78 11 San Francisco.... 81/2 10/16/78 8 9 10/16/78 81/2 91/2 10/16/78 9 10/16/78 11 Range of rates in recent years 5 Range F.R. Range F.R. Range F.R. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31. 1970 555555111111//////222222 5555511111/////44444 11997733——MMaayy 4 534 534 1976—Jan. 19 51/4-6 51/2 11 534-6 6 23 5% 5V4 11997711——JJaann.. 8 555555111111444444------555555111111//////222222 555551111144444 18 6 6 Nov. 22 514-5% 514 15 555555iiiiii444444 5555511111/////44444 JJuunnee 6-6% 61/4 26 514 514 2 2 1 2 9 9 555555555555 555555 ------ ------ 555555 555555 111111 111111 444444 444444 5555555555 5 11111 /////44444 JJJ AAA uuu uuu lllyyy ggg ... 1 1 2 5 4 7 7 61 - 7 /2 V 4 7 7 6 1 1 / / 2 4 1977—Aug. 3 3 1 0 5 51 1 / 4 4 - -5 5 3 3 / 4 4 5 53 1 4 4 FFeebb.. 13 444433334444----5555 5 23 71/4 7i/4 Sept. 2 534 534 JJuullyy 2 1 1 3 9 6 44443333 4444 55554444 3333 ----5555 4444 44 5 5533 44 11997744——AApprr.. 2 3 5 0 71/ 8 2 -8 8 8 1978— O Ja c n t. . 26 9 6 6 -61/2 6 61 /2 NNoovv 11 444444333333444444------555555 5 DDeecc.. 9 734-8 734 20 6% 6% 19 444444333333444444 444443333344444 16 734 734 May 11 6V4-7 7 DDcccc.. 13 444444111111//////222222------444444333333444444 444443333344444 12 7 7 17 444444******444444------444444%%%%%% 4444411111/////22222 11997755——JJaann.. 6 71/4-734 734 July 3 7-714 714 24 444444%%%%%% 4444411111/////44444 10 71/4-734 71/4 10 71/4 71/4 24 714 714 Aug. 21 73/4 734 1973—Jan. 15 555555 55555 FFeebb.. 5 634-714 634 Sept. 22 8 8 Feb. 26 5555----55551111AAAA 7 6*4 6^4 Oct. 16 8-81/4 8% Mar. 2 5555VVVViiii 5555%%%% MMaarr.. 10 61/4-634 614 20 81/2 81/2 AApprr.. 23 5555iiii////iiii----555533334444 55551111////4444 14 614 614 May 16 6-614 6 In effect Oct. 31, 1978.... 81/2 81/2 23 6 6 1 Discounts of eligible paper and advances secured by such paper or by Statistics, 1941-1970, Annual Statistical Digest, 1971-75, and Annual U.S. Govt, obligations or any other obligations eligible for F.R. Bank Statistical Digest, 1972-76. purchase. 2 Advances secured to the satisfaction of the F.R. Bank. Advances ERRATUM secured by mortgages on 1- to 4-family residential property are made at The current and previous levels of Federal Reserve Bank interest the Section 13 rate. rates shown in the October 1978 BULLETIN were incorrect. The rates for 3 Applicable to special advances described in Section 201.2(e)(2) of all Reserve Banks should have been: Regulation A. 4 Advances to individuals, partnerships, or corporations other than Rate on Effective Previous member banks secured by direct obligations of, or obligations fully Loans 9/30/78 date rate guaranteed as to principal and interest by, the U.S. Govt, or any agency the 5 r e R o a f. t es under Sees. 13 and 13a (as described above). For description S Se e c e . s . 1 1 0 3 (b a ) nd 13a 8 9/22/78 iy4 and earlier data, see the following publications of the Board of Governors: Regular rate 8V4 9/22/78 814 Banking and Monetary Statistics, 1914-1941, Banking and Monetary Special rate 9 9/22/78 Sec. 13, last par 11 9/22/78 10*4 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 October 31, 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 9% 12/30/76 10 2/13/75 10-100 11% 12/30/76 12 2/13/75 100-400 12/30/76 13 2/13/75 Over 400 1 ey4 12/30/76 161/2 2/13/75 Time:2-3 Savings 3 3/16/67 3% 3/2/67 Other time: 0-5, maturing in— 30-179 days 3 3/16/67 3% 3/2/67 180 days to 4 years 42V£ 1/8/76 3 3/16/67 4 years or more 4 1 10/30/75 3 3/16/67 Over 5, maturing in— 30-179 days 6 12/12/74 5 10/1/70 180 days to 4 years 4 21/2 1/8/76 3 12/12/74 4 years or more 4 1 10/30/75 3 12/12/74 Legal limits, October 31, 1978 Minimum Maximum Net demand : Reserve city banks 10 22 Other banks 7 14 3 10 1 For changes in reserve requirements beginning 1963, see Board's 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 Nonfinancial Statistics • November 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 TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy ooofff dddeeepppooosssiiittt In effect Oct. 31, 1978 Previous maximum In effect Oct. 31, 1978 Previous maximum Per cent Effective Per cent Effective Per cent Effective Per cent Effective date date date date 1 Savings 55555 77777/////11111/////7777733333 4444411111/////22222 1/21/70 555551111144444 ((77)) 55555 (8) 2 Negotiable orders of withdrawal 55555 11111/////11111/////7777744444 (((((1111100000))))) 55555 11//11//7744 (((((1111100000))))) 3 Money market time deposit of less than $100,0002 (((((99999))))) (((((99999))))) (((((99999))))) ((99)) (((((99999))))) ((99)) (((((99999))))) (9) Other time (multiple- and singlematurity unless otherwise indicated) 3 30-89 days: }}}}} ''''' 4 5 M Sin u g lt l i e p -m le- a m tu a r t i u ty r ity 77777/////11111/////7777733333 ///// IIIII 44444 55555 11111 /////44444 99 11 // // 22 22 66 11 // // 66 77 66 00 }}}}} (((((1111100000))))) (((((1111100000))))) 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 tv r ity }}}}} 5555511111/////22222 77777/////11111/////7777733333 ''''' ((((( 77 99 // // 22 22 00 66// // 66 66 66 66 }}}}} 44444555553333344444 (((777))) 55555%%%%% 1/21/70 1 9 0 8 2 2 1 1 t / t o o i t 2 2 o i / v 2 4 e y a y e r e a s a 4 r r s s 4 4 }}}}} 66666 66666 11111 /////22222 7 7 7 7 7 7 7 7 7 7 / / / / / / / / / / 1 1 1 1 1 1 1 1 1 1 / / / / / / / / / / 7 7 7 7 7 7 7 7 7 7 3 3 3 3 3 3 3 3 3 3 ///// IIIII 55555 55555 55555 VVVVV 11111 33333 ///// ///// 44444 22222 44444 1 1 1 1 1 1 / / / / / / 2 2 2 2 2 2 1 1 1 1 1 1 / / / / / / 7 7 7 7 7 7 0 0 0 0 0 0 }}}}} 66666 eeeee 11111 yyyyy ///// 44444 22222 ((( ((( 777 777 ))) ))) fffff 11111 55555 66666 66666 33333 44444 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 1 1 1 2 6 4 t t o o 6 8 y y e e a a r r s s 5 5 7 7 7 7 7 7 7 7 7 711111 VVVVV ///// aaaaa 22222 11111 11111 22222 11111 /////22222 /////11111 33333 ///// ///// 77777 77777 33333 44444 ((((( 77777 UUUUU 11111///// ))))) 44444 11/1/73 77777777771111133333/////4444422222 111 111 222 111 ///222 ///111 333 /// /// 777 777 333 444 ((((( 77777 UUUUU 11111///// ))))) 22222 11/1/73 13 8 years or more5 7777733333/////44444 66666/////11111/////7777788888 (((((1111100000))))) 88888 666///111///777888 (((((1111100000))))) 14 Issued to governmental units (all maturities) 88888 66666/////11111/////7777788888 7777733333/////44444 12/23/74 88888 666///111///777888 777773333344444 12/23/74 15 Individual retirement accounts and Keogh (H.R. 10) plans6 88888 66666/////11111/////7777788888 7777733333/////44444 7/6/77 88888 666///111///777888 777773333344444 7/6/77 1 For authorized States only. Federally insured commercial banks, higher than the rate for commercial banks. The most recent rates and savings and loan associations, cooperative banks, and mutual savings effective dates are as follows: banks were first permitted to offer negotiable orders of withdrawal (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar institutions throughout New England on Feb. Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 27, 1976. 2 Must have a maturity of exactly 26 weeks and a minimum denomination of $10,000, and must be nonnegotiable. 8.276 8.377 8.422 8.561 8.612 3 For exceptions with respect to certain foreign time deposits see the Thrifts 8.526 8.627 8.672 8.811 8.862 Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p. 1094), and February 1968 (p. 167). 4 A minimum of $1,000 is required for savings and loan associations, 1 o No separate account category. except in areas where mutual savings banks permit lower minimum de- ii Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for nominations. This restriction was removed for deposits maturing in less certificates maturing in 4 years or more with minimum denominations than 1 year, effective Nov. 1, 1973. of $1,000; however, the amount of such certificates that an institution 5 $1,000 minimum except for deposits representing funds contributed could issue was limited to 5 per cent of its total time and savings deposits. to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es- Sales in excess of that amount, as well as certificates of less than $1,000, tablished pursuant to the Internal Revenue Code. The $1,000 minimum were limited to the 6Vi per cent ceiling on time deposits maturing in 2l/z requirement was removed for such accounts in December 1975 and No- years or more. vember 1976, respectively, Effective Nov. 1, 1973, the present ceilings were imposed on certificates 6 3-year minimum maturity. maturing in 4 years or more with minimum denominations of $1,000. 7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and There is no limitation on the amount of these certificates that banks can loan associations. issue. 8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and loan associations. NOTE—Maximum rates that can be paid by Federally insured commer- 9 Commercial banks, savings and loan associations, and mutual savings cial banks, mutual savings banks, and savings and loan associations are banks were authorized to offer money market time deposits effective established by the Board of Governors of the Federal Reserve System, June 1, 1978. The ceiling rate for commercial banks is the discount rate the Board of Directors of the Federal Deposit Insurance Corporation, on most recently issued 6-month U.S. Treasury bills. The ceiling rate for and the Federal Home Loan Bank Board under the provisions of 12 savings and loan associations and mutual savings banks is x/a per cent 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 Mar. Apr. May June July Aug. Sept. U.S. GOVT. SECURITIES Outright transactions (excl. matched salepurchase transactions) Treasury bills: 1 Gross purchases 11111111,,,,555566662222 11114444,,,,333344443333 11113333,,,,777733338888 777744448888 1,670 444411116666 4,395 770011 997722 2,635 5555,,,,555599999999 8888,,,,444466662222 7777,,,,222244441111 55550000 777733337777 446666 668899 22226666,,,,444433331111 22225555,,,,000011117777 2222,,,,111133336666 33331111 333300000000 Others within 1 year:1 3333,,,,888888886666 444477772222 3333,,,,000011117777 222288888888 110000 55553333 113355 117711 116688 6 Exchange, or maturity shift ---444 792 444...444999999 261 136 -2,343 -380 -241 -1,544 563 333,,,555444999 222...555000000 1 to 5 years: 222 333,,,222888444 2222 3333,,,,222200002222 222,,,888333333 881133 223355 229900 663311 442244 335500 111177777777 10 Exchange, or maturity shift 33,,885544 ----2222,,,,555588888888 --66,,664499 --226611 --113366 --7799 446677 241 --449900 --556633 5 to 10 years: 11,,551100 1111,,,,000044448888 775588 337700 119911 110011 117766 223388 111100 13 Exchange or maturity shift ---444,,,666999777 111,,,555777222 555888444 111,,,555222666 ---888777 111,,,444333444 Over 10 years: 14 Gross purchases 111,,,000777000 666444222 555555333 114477 114455 777444 111111555 111111333 112222 16 Exchange or maturity shift .. .... 888884444488888 222222222255555 11111,,,,,555556666655555 888899995555 666000000 All maturities:1 17 Gross purchases 222222222211111,,,,,333331111133333 222221111199999,,,,,777770000077777 2222200000,,,,,888889999988888 222,,,333666777 2,341 999933335555 5,451 770011 111,,,999111999 3,386 18 Gross sales . 55555,,,,,555559999999999 88888,,,,,666663333399999 77777,,,,,222224444411111 555000 777733337777 446666 666888999 19 Redemptions 2222299999,,,,,999998888800000 2222255555,,,,,000001111177777 44444,,,,,666663333366666 333111 333300000000 Matched sale-purchase transactions 20 Gross sales 111115555511111,,,,,222220000055555 111119999966666,,,,,000007777788888 444442222255555,,,,,222221111144444 444444,,,999777666 42,262 44440000,,,,666633334444 5522,,554444 44,657 29,162 33,346 21 Gross purchases 111115555522222,,,,,111113333322222 111119999966666,,,,,555557777799999 444442222233333,,,,,888884444411111 444444,,,111222999 42,799 44440000,,,,333366662222 5522,,555577 44,712 29,641 33,130 Repurchase agreements 22 Gross purchases 111114444400000,,,,,333331111111111 222223333322222,,,,,888889999911111 111117777788888,,,,,666668888833333 111333,,,111555555 8,044 11111111,,,,555511117777 1144,,995566 15,822 16,286 10,724 23 Gross sales 111113333399999,,,,,555553333388888 222223333300000,,,,,333335555555555 111118888800000,,,,,555553333355555 111111,,,444666888 8,999 11111111,,,,888811119999 1133,,110000 17,374 15,140 10,353 24 Net change in U.S. Government securities 333,,,111222777 1,923 ----666677774444 -1,261 2,854 3,540 FEDERAL AGENCY OBLIGATIONS 77777,,,,,444443333344444 99999,,,,,000008888877777 55555,,,,,777779999988888 77,,332200 Outright transactions: 25 Gross purchases 26 Gross sales . 111777333 27 Redemptions 11111,,,,,666662221111144466666666 888881119999966611111999 11111,,,,,444442223333322233333333 5533 3344 3322008811 44 111333 2288 Repurchase agreements: '''111555,,,111777555 111000,,,555222000 111333,,,888111111 22,,663388 1,282 33,,992277 33,,442211 55,,117700 333,,,000888000 33,,887777 29 Gross sales '''111555,,,555666777 111000,,,333666000 111333,,,666333888 22,,337744 1,410 44,,003377 33,,008888 55,,445577 333,,,000333222 33,,334488 30 Net change in Federal agency obligations 999777888 888888222 111,,,333888333 221111 -128 --114444 660066 --229911 ---111333888 550011 BANKERS ACCEPTANCES 31 Outright transactions, net 111666333 ---555444555 ---111999666 32 Repurchase agreements, net ---333555 444111000 111555999 770 -480 -17 747 -753 28 419 33 Net change in bankers acceptances 770 -480 -17 747 -753 28 419 111222777 ---111333555 ---333777 34 Total net change in System Open Market Account 4,107 1,315 -834 8,673 -2,305 2,744 4,460 888,,,555333999 999,,,888333333 777,,,111444333 J 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 Nonfinancial Statistics • November 1978 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month Account 1978 1978 Sept. 27 Oct. 4 Oct. 11 Oct. 18p Oct. 25v Aug. Sept. Oct.? Consolidated condition statement ASSETS 1 Gold certificate account 11,668 11,668 11,667 11,655 11,655 11,679 11,668 11,655 2 Special Drawing Rights certificate account 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 3 279 282 287 291 294 283 292 300 Loans: 4 Member bank borrowings 1,158 1,505 676 1,660 1,796 954 1,365 1,206 5 Other Acceptances: 6 7 775533 221166 661111 772244 229966 771155 223366 Federal agency obligations: 8 7,950 7,941 7,941 7,941 7,938 7,978 7,950 7,938 q 11,,118888 7799 11,,222288 11,,118855 111199 664477 112277 U.S. Government securities Bought outright: 10 Bills 4477,,778833 46,802 48,184 46,239 48,206 45,133 47,551 48,376 11 P Other N 53,859 53,859 53,859 54,526 54,526 53,229 53,859 54,526 14 11,617 11,617 11,617 11,757 11,757 11,496 11,617 11,757 TotaU 113,259 112,278 113,660 112,522 114,489 109,858 113,027 114,659 16 3 104 182 3,178 3,046 1,881 2,252 663 17 116,363 112,460 116,838 112,522 117,535 111,739 115,279 115,322 18 127,412 122,201 127,294 122,123 129,178 121,086 125,956 124,829 19 12,404 12,899 16,051 15,075 10,997 10,728 9,492 13,307 20 396 393 400 395 395 392 394 395 Other assets: 21 Denominated in foreign currencies 20 19 19 19 62 18 20 27 22 1,914 2,154 2,141 2,222 2,281 1,653 2,025 2,334 23 155,393 150,916 159,159 153,080 156,162 147,139 151,147 154,147 LIABILITIES 24 9966,,886677 97,452 9988,,445555 98,225 97,902 96,534 96,572 98,154 Deposits: 25 Member bank reserves 33,197 29,733 32,893 27,010 34,860 27,705 26,830 26,200 26 13,543 12,162 15,084 15,348 11,748 12,068 16,647 15,467 27 253 272 300 252 257 309 325 305 28 559 545 533 554 624 691 628 531 29 47,552 42,712 48,810 43,164 47,489 40,773 44,430 42,503 30 Deferred availability cash items 6,662 6,848 7,785 7,438 6,118 5,503 5,773 8,930 31 Other liabilities and accrued dividends 1,689 1,670 1,707 1,685 1,916 1,541 1,700 1,686 32 Total liabilities 152,770 148,682 156,757 150,512 153,425 144,351 148,475 151,273 CAPITAL ACCOUNTS 33 1,062 1,061 1,062 1,064 1,067 1,058 1,061 1,069 34 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 35 Other capital accounts 532 144 311 475 641 701 582 776 36 Total liabilities and capital accounts 155,393 150,916 159,159 153,080 156,162 147,139 151,147 154,147 37 MEMO: Marketable U.S. Govt, securities held in custody for foreign and intl. account 85,412 85,479 86,697 87,479 88,046 85,731 86,450 83,606 Federal Reserve note statement 38 F.R. notes outstanding (issued to Bank) 109,572 109,919 110,049 110,387 110,610 108,625 109,590 110,741 Collateral held against notes outstanding: 39 Gold certificate account 11,668 11,668 11,667 11,655 11,655 11,679 11,668 11,655 40 Special Drawing Rights certificate account.... 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 41 Eligible paper 1,067 1,403 577 1,576 1,623 886 1,137 1,094 42 95,537 95,548 96,505 95,856 96,032 94,760 95,485 96,692 43 Total collateral 109,572 109,919 110,049 110,387 110,610 108,625 109,590 110,741 i 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 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Aug. 31 Sept. 30 Oct. 31 1,157 1111,,,,555500006666 666677775555 1,660 1,796 953 1,363 1,206 2 Within 15 days 1,115 1111,,,,222200007777 444466666666 1,579 1,745 892 1,288 1,108 3 16 days to 90 days 42 222266669999 111188881111 81 51 61 75 98 4 91 days to 1 year 33330000 22228888 5 Acceptances 777555333 222211116666 666611111111 777222444 222999666 777111555 222333666 6 Within 15 days 777555333 222211116666 666611111111 777222444 222999666 777111555 222333666 7 16 days to 90 days 8 91 days to 1 year 9 U.S. Government securities 116,363 112,460 116,838 112,522 117,535 111,739 115,279 115,322 10 Within 15 days1 8.008 3,914 8,061 3,452 6,446 4,086 5,150 7,195 11 16 days to 90 days 23,444 23,877 24,452 22,823 24,328 22,058 25,203 22,072 12 91 days to 1 year 30,142 29,952 29,609 30,796 31,311 31,408 30,157 30,730 31,309 31,257 31,256 31,764 31,763 30,959 31,309 31,638 13,632 13,632 13,632 13,719 13,719 13,521 13,632 13,719 15 Over 10 years. 9,828 9,828 9,828 9,968 9,968 9,707 9,828 9,968 16 Federal agency obligations 9,138 8,020 9,169 7,941 9,123 8,097 8,597 8,065 17 Within 15 days i 1,242 152 1,301 111 1,223 264 701 164 18 16 days to 90 days 340 350 350 312 369 258 340 369 1,467 1,429 1,472 1,472 1,488 1,479 1,467 1,488 20 Over 1 year to 5 years 3,619 3,619 3.577 3,577 3,663 3,594 3,619 3,664 21 Over 5 years to 10 years 1,609 1,609 1,609 1,609 1,520 1,641 1,609 1,520 22 Over 10 years 861 861 860 860 860 861 861 860 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 May June July Aug. Sept. Debits to demand deposits 2 (seasonally adjusted) 1111 AAAAllllllll ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 25,028.5 29,180.4 34,322.8 39,590.0 41,538.5 40,575.1 42.722.1 41,529.9 2222 MMMMaaaajjjjoooorrrr NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy bbbbaaaannnnkkkkssss........ 9,670.7 11,467.2 13,860.6 14,774.6 15,976.0 15,355.3 16,432.9 15,493.6 3333 OOOOtttthhhheeeerrrr bbbbaaaannnnkkkkssss 15,357.8 17,713.2 20,462.2 24,815.4 25,562.5 25,219.7 26.289.2 26,036.3 Debits to savings deposits 3 (not seasonally adjusted) 4444 AAAAllllllll ccccuuuussssttttoooommmmeeeerrrrssss 117744..00 339988..11 444444..00 443322..11 443333..00 442200..44 5555 BBBBuuuussssiiiinnnneeeessssssss 1111 2211..77 5511..99 6611..55 5555..66 5577..66 6600..99 6666 OOOOtttthhhheeeerrrrssss 115522..33 334466..11 338822..66 337766..55 337755..44 335599..55 Demand deposit turnover 2 (seasonally adjusted) 77777 AAAAAllllllllll cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 105.3 116.8 129.2 139.4 144.4 139.0 146.2 143.3 88888 MMMMMaaaaajjjjjooooorrrrr NNNNNeeeeewwwww YYYYYooooorrrrrkkkkk CCCCCiiiiitttttyyyyy bbbbbaaaaannnnnkkkkksssss.......... 356.9 411.6 503.0 555.3 596.0 553.0 577.5 549.6 99999 OOOOOttttthhhhheeeeerrrrr bbbbbaaaaannnnnkkkkksssss 72.9 79.8 85.9 96.4 98.0 95.5 99.7 99.5 Savings deposit turnover 3 (not seasonally adjusted) 1111100000 AAAAAHHHHH cccccuuuuussssstttttooooommmmmeeeeerrrrrsssss 11..66 11..88 22..00 22..00 22..00 11..99 1111111111 BBBBBuuuuusssssiiiiinnnnneeeeessssssssss 11111 44..11 44..77 55..55 55..11 55..22 55..33 1111122222 OOOOOttttthhhhheeeeerrrrrsssss 11..55 11..66 11..88 11..88 11..88 11..77 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 • November 1978 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1978 1974 1975 1976 1977 Dec. Dec. Dec. Dec. Item Apr. May June July Aug. Sept. Seasonally adjusted MEASURES1 1 M-l 282.9 295.2 313.5 338.5 348.5 350.6 352.8 354.2 356.7 360.9 2 M-2 612.2 664.7 740.5 809.5 830.3 835.2 840.6 846.2 853.5 862.4 3 M-3 981.2 1,092.5 1,236.5 1,376.1 1,411.4 1,419.9 1,429.8 1,440.9 1,455.1 1,472.0 4 M-4 701.2 746.1 803.2 883.5 913.7 922.2 927.3 933.6 939.8 950.5 5 M-5 1,070.3 1,173.8 1,299.2 1,450.1 1,494.9 1,506.9 1,516.5 1,528.3 1,541.4 1,560.1 COMPONENTS 6 Currency 67.8 73.7 80.7 88.6 91.2 92.1 92.8 93.3 9944..00 9955..22 Commercial bank deposits: 7 Demand 215.1 221.5 232.8 249.9 257.3 258.5 259.9 260.9 262.8 265.7 9 8 Ti N m e e g o a t n ia d b s le a v C in D g ' s s2 41 8 8 9 . . 3 0 45 8 0 1 . . 9 3 48 6 9 2 . .7 7 54 7 5 4 . . 0 0 56 8 5 3 . . 2 4 57 8 1 7 .6 .1 57 8 4 6 . . 5 7 57 8 9 7 . . 4 4 58 8 3 6 . . 0 3 58 8 9 8 . . 7 1 10 Other 329.3 369.6 427.0 471.0 481.8 484.5 487.8 492.0 496.7 501.6 11 Nonbank thrift institutions 3 369.1 427.8 496.0 566.6 581.2 584.7 589.2 594.7 601.6 609.6 Not seasonally adjusted MEASURES i 12 M-l 291.3 303.9 322.6 348.2 350.9 345.3 351.7 356.0 354.2 358.8 13 M-2 617.5 670.0 745.8 814.9 836.6 833.6 842.0 848.7 850.8 858.4 14 M-3 983.8 1,095.0 1,238.4 1,377.5 1,421.2 1,420.3 1,435.2 1,447.9 rl,452.9 1,466.4 15 M-4 708.0 753.5 810.0 890.9 917.9 918.2 928.3 936.0 938.8 948.7 16 M-5 1,074.3 1,178.4 1,320.7 1,453.4 1,502.6 1,505.0 1,521.5 1,535.2 rl,541.0 1,556.7 COMPONENTS 17 Currency 69.0 75.1 82.1 90.1 91.0 91.9 9922..99 9944..11 9944..33 9955..00 Commercial bank deposits: 18 Demand 222.2 228.8 240.5 258.1 259.9 253.3 258.8 262.0 259.9 263.8 19 Member 159.7 162.8 169.4 177.5 177.3 172.6 175.7 177.7 176.1 178.2 20 Domestic nonmember 58.5 62.6 67.5 76.2 78.5 76.9 79.1 80.3 79.9 81.1 2 2 2 1 Ti N m e e g o a t n ia d b s le a v C in D g ' s s2 4 9 16 0 . . 7 5 44 8 9 3 . . 6 5 48 6 7 4 . . 4 3 54 7 2 5 . . 6 9 56 8 7 1 . . 1 4 57 8 2 4 . . 9 6 57 8 6 6 . . 6 3 57 8 9 7 . . 9 3 58 8 4 8 . . 6 0 58 9 9 0 . . 9 3 23 Other 326.3 366.2 423.1 466.7 485.7 488.3 490.3 492.6 496.6 499.6 24 Nonbank thrift institutions 3 366.3 424.9 492.7 562.5 584.6 558866..77 559933..22 559999..22 ''660022..11 660088..00 25 U.S. Government deposits (all commercial banks) 4.9 4.1 4.4 5.1 5.0 4.0 6.2 4.5 3.6 6.2 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. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted 1 Reserves1 36.57 34.68 34.93 36.14 36.93 36.67 36.95 37.26 37.73 38.19 37.91 38.17 2 Nonborrowed 35.84 34.55 34.89 35.57 36.52 36.34 36.39 36.05 36.63 36.88 36.77 37.11 3 Required 36.31 34.42 34.29 35.95 36.69 36.47 36.80 37.04 37.55 38.00 37.74 37.97 4 Deposits subject to reserve requirements2. . 486.1 504.6 528.9 569.1 577.9 582.1 586.0 592.0 595.6 600.3 601.0 606.3 5 Time and savings 322.1 337.1 354.3 387.0 395.4 399.2 400.7 406.0 407.1 410.5 411.4 416.0 Demand: 6 Private 160.6 164.5 171.4 178.5 179.5 179.6 182.0 183.5 184.6 186.1 186.5 186.3 7 U.S. Government 3.3 2.9 3.2 3.6 3.0 3.4 3.3 2.6 3.9 3.7 3.3 4.1 Not seasonally adjusted 8 Deposits subject to reserve requirements2.. 491.8 510.9 534.8 575.3 572.5 579.4 588.6 588.3 596.8 600.6 599.2 605.9 9 Time and savings 321.7 337.2 353.6 386.4 393.2 399.3 401.2 406.1 408.6 411.1 412.8 416.5 Demand: 10 Private 166.6 170.7 177.9 185.1 176.1 176.6 183.8 179.3 183.7 186.4 183.9 184.7 11 U.S. Government 3.4 3.1 3.3 3.8 3.1 3.5 3.6 2.9 4.5 3.2 2.5 4.6 i Series reflects actual reserve requirement percentages with no adjust- 2 Includes total time and savings deposits and net demand deposits as ment to eliminate the effect of changes in Regulations D and M. There defined by Regulation D. Private demand deposits include all demand are breaks in series because of changes in reserve requirements effective deposits except those due to the U.S. Govt., less cash items in process of Dec. 12, 1974; Feb. 13, May 22, and Oct. 30,1975; Jan. 8, and Dec. 30,1976. collection and demand balances due from domestic commercial banks. In addition, effective Jan. 1, 1976, statewide branching in New York was instituted. The subsequent merger of a number of banks raised NOTE.—Back data and estimates of the impact on required reserves required reserves because of higher reserve requirements on aggregate and changes in reserve requirements are shown in Table 14 of the Board's deposits at these banks. Annual Statistical Digest, 1971-1975. 1.23 LOANS AND INVESTMENTS All Commercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 1978 1974 1975 1976 1977 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Category 3 May 31 June 30 July 26 Aug. 30 Sept. 27 Oct. 25 V p p p p p Seasonally adjusted 1 Loans and investments1 690.4 721.1m 784.4 870.6 917.9 922.4 935.2 939.2 947.1 955.4 2 Including loans sold outright2 695.2 725.5 788.2 875.5 922.3 926.9 939.8 943.9 951.7 959.2 Loans: 3 Total 500.2 496.9 538.9 617.0 657.9 661.2 672.0 677.2 684.4 693.7 4 Including loans sold outright2 505.0 501.3 542.7 621.9 662.3 665.7 676.6 681.9 689.0 697.5 '5 Commercial and industrial 183.3 176.0 4179.5 5201.4 219.2 220.4 222.3 224.4 226.3 228.8 6 Including loans sold outright2 186.0 178.5 4181.9 5204.2 221.5 222.6 224.6 226.9 228.7 230.7 Investments: 7 U.S. Treasury 50.4 79.4 97.3 95.6 97.1 98.4 99.7 97.0 96.3 94.3 8 Other 139.8 144.8 148.2 158.0 162.9 162.8 163.5 165.0 166.4 167.4 Not seasonally adjusted 9 Loans and investments1 705.6 737.0 801.6 888.9 917.0 928.9 931.1 936.6 946.1 952.9 10 Including loans sold outright2 710.4 741.4 805.4 893.8 921.4 933.3 935.7 941.3 950.8 956.7 Loans: 11 Total i 510.7 507.4 550.2 629.9 657.1 669.2 672.6 678.0 685.8 693.5 12 Including loans sold outright2 515.5 511.8 554.0 634.8 661.5 673.7 677.1 682.7 690.5 697.3 13 Commercial and industrial 186.8 179.3 4182.9 5205.0 219.2 223.0 222.4 223.3 225.6 228.3 14 Including loans sold outright2 189.5 181.8 4185.3 5207.8 221.5 225.2 224.7 225.8 228.0 230.2 Investments: 15 U.S. Treasury 54.5 84.1 102.5 100.2 96.6 96.1 95.2 93.9 94.1 92.6 16 Other 140.5 145.5 148.9 158.8 163.4 163.6 163.4 164.7 166.2 166.7 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • November 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. Feb." Mar.p Apr.p May.p June? July* Aug.f Sept.** Oct.P All commercial j Loans and investments 846.4 939.1 926.0 936.0 947.7 967.4 966.8 972.1 977.0 987.7 994.3 2 Loans, gross 594.9 680.1 668.0 677.8 685.0 707.4 707.8 713.5 718.4 727.4 735.0 Investments: 3 U.S. Treasury securities 102.5 100.2 99.6 98.6 99.6 96.6 95.9 95.2 93.9 94.1 92.6 4 Other 148.9 158.8 158.5 159.6 163.1 163.4 163.2 163.4 164.7 166.2 166.7 5 Cash assets 136.1 168.7 145.2 131.5 134.1 162.7 142.6 131.8 139.9 143.6 148.0 6 Currency and coin 12.1 13.9 13.8 14.3 14.1 14.3 14.6 14.6 15.0 15.0 14.9 7 Reserves with F.R. Banks 26.1 29.3 31.0 30.2 27.6 30.3 30.8 23.6 29.7 32.6 34.6 8 Balances with banks 49.6 59.0 46.9 44.1 44.7 53.3 45.5 46.3 44.9 46.4 46.7 9 Cash items in process of collection.. 48.4 66.4 53.5 43.0 47.6 64.7 51.6 47.3 50.3 49.6 51.7 10 Total assets/total liabilities and capital 1 1,030.7 1,166.0 1,136.4 1,136.7 1,151.2 1,199.5 1,177.3 1,170.4 1,184.5 1,200.6 1,210.9 11 838.2 939.4 899.7 896.2 910.3 946.1 926.2 924.0 929.8 941.1 943.9 Demand: 12 Interbank 45.4 51.7 42.6 37.4 38.8 50.7 40.5 40.2 40.1 41.6 42.9 13 U.S. Government 3.0 7.3 5.8 4.8 6.1 3.2 7.1 4.2 2.7 10.7 7.4 14 Other 288.4 323.9 288.6 280.2 292.0 310.6 294.9 293.2 295.8 294.2 296.0 Time: 15 Interbank 9.2 9.8 8.7 9.0 9.0 9.4 9.8 10.2 10.6 11.5 11.1 16 Other 492.2 546.6 554.0 564.8 564.4 572.2 573.9 576.2 580.6 583.1 586.5 17 Borrowings 80.2 96.2 103.7 105.7 104.5 111.4 109.0 102.3 108.2 111.9 117.4 18 Total capital accounts2 78.1 85.8 82.8 83.3 83.7 84.6 84.7 85.4 85.9 87.1 87.1 19 MEMO: Number of banks 14,671 14,707 14,682 14,689 14,697 14,702 14,701 14,713 14,721 14,715 14,715 Member 20 620.5 675.5 661.8 668.6 676.8 693.8 691.5 695.8 698.9 706.9 713.4 21 Loans, gross 442.9 494.9 483.1 490.5 495.3 514.3 512.8 517.7 520.3 527.0 533.9 Investments: 22 U.S. Treasury securities 74.6 70.4 69.2 68.2 68.8 66.9 66.2 65.7 65.3 65.4 64.1 23 Other 103.1 110.1 109.5 109.9 112.7 112.7 112.5 112.5 113.3 114.5 115.3 24 Cash assets, total 108.9 134.4 117.2 104.8 106.5 130.7 114.6 104.2 111.6 115.4 118.6 25 Currency and coin 9.1 10.4 10.2 10.6 10.5 10.6 10.8 10.8 11.1 11.1 11.1 26 Reserves with F.R. Banks 26.0 29.3 31.0 30.2 27.6 30.3 30.8 23.6 29.7 32.6 34.6 27 Balances with banks 27.4 30.8 24.6 22.9 22.7 28.1 23.6 24.3 22.9 24.0 23.2 28 Cash items in process of collection.. 46.5 63.9 51.4 41.2 45.7 61.7 49.4 45.4 48.0 47.7 49.7 29 Total assets/total liabilities and capital1 772.9 861.8 835.3 833.2 843.3 884.7 864.5 857.3 868.9 882.2 891.2 30 618.7 683.5 649.2 645.1 655.1 686.7 668.4 666.1 670.5 679.6 682.5 Demand: 31 Interbank 42.4 48.0 39.5 34.7 36.0 47.5 37.7 37.3 37.2 38.6 39.9 32 U.S. Government 2.1 5.4 4.4 3.7 4.5 2.2 5.1 3.1 1.9 8.1 5.7 33 Other 215.5 239.4 211.8 205.1 213.4 229.1 216.2 214.6 217.0 215.6 217.0 Time: 34 Interbank 7.2 7.8 6.7 7.0 6.9 7.3 7.7 8.2 8.6 9.4 9.0 35 Other 351.5 382.9 386.9 394.7 394.3 400.5 401.7 402.9 405.9 407.8 411.0 36 Borrowings 71.7 84.9 90.8 91.8 91.1 96.9 94.2 88.0 93.9 97.2 101.4 37 Total capital accounts2 58.6 63.7 62.1 62.4 62.7 63.3 63.4 64.0 64.3 65.1 65.2 38 MEMO: Number of banks 5,759 5,669 5,659 5,654 5,645 5,638 5,611 5,613 5,610 5,593 5,593 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. against "other assets," and against "total assets" as well. Member banks: The following numbers of noninsured trust companies Total liabilities continue to include the deferred income tax portion of that are members of the Federal Reserve System are excluded from mem- "reserve for loan losses." ber banks in Tables 1.24 and 1.25 and are included with noninsured banks 2 Effective Mar. 31, 1976, includes "reserves for securities" and the in Table 1.25: 1976—December, 11; 1978—January, 12. contingency portion (which is small) of "reserve for loan losses." 3 Figures partly estimated except on call dates. 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 777733,,770011 882277,,669966 885544,,773344 991144,,778833 443,959 476,610 488,240 523,000 Loans: 2 539,021 578,734 601,122 657,513 315,628 340,691 351,311 384,722 3 Net., 520,976 560,076 581,143 636,323 305,280 329,971 339,955 372,702 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 6 124,072 129,562 130,726 159,264 75,488 76,072 74,641 92,050 7 942,519 1,003,969 1,040,945 1,129,711 548,702 583,304 599,743 651,360 8 777766,,995577 882255,,000033 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 Interbank 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 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 113366,,991155 114444,,000000 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 114422,,006611 114499,,449911 115522,,447722 163,443 119900,,664444 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 2222,,994400 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 Net 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 2299,,778888 37 Other 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 Interbank 1,006 1,277 1,504 1,868 2,346 2,896 3,025 3,718 43 2,555 3,236 3,588 4,073 66,184 72,884 74,203 84,518 Time: 44 Interbank 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 • November 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 5,745 2,143 867 2,487 248 15 U.S. Treasury 3,358 3,338 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 tof inanciali nstitutions 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 depositary 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 IIInnnsssuuurrreeeddd NNNooonnn--- LLLiiiaaabbbiiillliiitttyyy ooorrr cccaaapppiiitttaaalll aaaccccccooouuunnnttt cccooommmmmmeeerrrccciiiaaalll Large banks mmmeeemmmbbbeeerrr bbbaaannnkkksss bbbaaannnkkksss111 TToottaall AAllll ootthheerr New York City of Other City Chicago large 343,578 264,614 61,165 10,354 94,367 98,728 78,977 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 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 2,783 340,980 247,508 36,646 14,894 88,682 107,286 93,472 97 77 76 21 367 350 171 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 88 221 209 163 224,267 155,670 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 US Government 60 47 4 18 26 13 97 States and political subdivisions 4,766 3,006 231 10 559 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 4400,,998811 1122,,774444 55,,002266 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 4,920 58,500 83,439 74,223 Average for last 15 or 30 days: 118 Cash and due from bank 133,088 113,373 32,111 5,086 42,039 34,136 1199,,772222 119 Federal funds sold and securities purchased under agree- 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 26,568 233,300 288,125 237,573 123 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 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. Back data in lesser detail were shown in process of collection. previous BULLETINS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • November 1978 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4p Oct. 11p Oct. 18^ Oct. 25p 1 Total loans and investments 469,516 479,086 474,578 477,078 475,523 481,817 481,185 480,249 481,573 Loans: 2 Federal funds sold1 23,813 28,575 24,741 24,591 23,119 25,582 24,891 23,974 25,119 3 To commercial banks 18,346 21,101 19,287 18,857 17,946 19,075 20,111 18,100 19,714 To brokers and dealers involving— 4 U.S. Treasury securities 2,768 4,601 2,991 3,007 2,347 3,844 2,238 3,214 2,433 5 Other securities 519 558 513 581 606 582 629 560 512 6 To others 2,180 2,315 1,950 2,146 2,220 2,081 1,913 2,100 2,460 7 Other, gross 345,497 348,286 348,142 350,215 351,173 354,804 354,917 355,595 356,015 8 Commercial and industrial 134,968 135,402 135,546 136,543 136,710 137,791 138,434 138,295 138,826 9 Agricultural 5,259 5,282 5,314 5,314 5,334 5,360 5,398 5,421 5,420 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 933 1,600 1,493 1,321 921 1,436 715 1,317 863 11 Other securities 8,857 8,915 8,602 8,942 9,253 9,211 8,718 8,664 8,464 To others: 12 U.S. Treasury securities 107 106 109 106 105 109 108 109 110 13 Other securities 2,625 2,637 2,620 2,599 2,586 2,577 2,574 2,571 2,575 To nonbank financial institutions: 14 Personal and sales finance cos., etc 7,874 8,242 8,309 8,074 8,122 8,209 8,421 8,545 8,254 15 Other 15,702 15,638 15,786 15,875 15,899 15,960 16,002 15,914 15,609 16 Real estate 84,423 84,671 85,158 85,555 85,882 86,243 86,617 87,063 87,302 To commercial banks: 17 Domestic 2,313 2,392 2,162 2,329 2,561 2,723 2,647 2,323 2,477 18 Foreign 5,929 6,024 5,968 5,962 6,063 6,619 6,650 6,611 6,797 19 Consumer instalment 53,043 53,242 53,372 53,637 53,941 54,207 54,341 54,526 54,696 20 Foreign govts., official institutions, etc 1,634 1,714 1,706 1,645 1,666 1,768 1,800 1,826 2,016 21 All other loans 21,830 22,421 21,997 22,313 22,130 22,591 22,492 22,410 22,606 22 LESS: Loan loss reserve and unearned income on loans 10,682 10,732 10,793 10,840 10,789 10,746 10,860 10,896 10,956 23 Other loans, net 334,815 337,554 337,349 339,375 340,384 344,058 344,057 344,699 345,059 Investments: 24 U.S. Treasury securities 42,777 43,803 43,518 43,918 42,917 43,046 42,369 41,916 41,724 25 Bills 4,590 4,610 4,506 4,838 4,338 4,331 3,543 3,641 3,446 Notes and bonds, by maturity: 26 Within 1 year 6,741 6,915 6,920 6,937 6,979 6,936 7,047 7,129 7,212 27 1 to 5 years 25,850 26,694 26,487 26,500 26,014 26,020 25,881 25,408 25,351 28 After 5 years 5,596 5,584 5,605 5,643 5,586 5,759 5,898 5,738 5,715 29 Other securities 68,111 69,154 68,970 69,194 69,103 69,131 69,868 69,660 69,671 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 6,156 6,784 6,069 6,080 6,141 6,625 6,729 6,704 6,562 31 All other 45,750 45,931 46,226 46,028 45,953 45,673 45,880 45,754 45,797 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,835 2,840 2,855 2,936 2,855 2,920 2,938 2,940 3,012 33 All other, including corporate stocks 13,370 13,599 13,820 14,150 14,154 13,913 14,321 14,262 14,300 34 Cash items in process of collection 43,132 52,742 46,007 47,020 43,352 48,432 47,996 45,848 45,104 35 Reserves with Federal Reserve Banks 22,408 18,229 22,708 19,210 25,261 23,644 25,097 19,998 26,853 36 Currency and coin 6,782 6,155 6,863 6,755 6,936 6,043 6,740 6,807 6,956 37 Balances with domestic banks 14,295 15,275 13,104 14,362 14,783 15,349 15,406 15,493 14,035 38 Investments in subsidiaries not consolidated.... 3,256 3,325 3,306 3,315 3,319 3,278 3,346 3,445 3,509 39 Other assets 63,298 63,412 64,970 65,876 65,376 64,400 65,178 65,436 64,670 40 Total assets/total liabilities 622,687 638,224 631,536 633,616 634,550 642,963 644,948 637,276 642,700 Deposits: 41 Demand deposits 186,538 200,217 192,868 195,335 191,858 198,648 199,048 195,278 192,444 42 Individuals, partnerships, and corporations. 135,136 141,823 142,160 139,295 135,128 139,241 144,463 140,863 135,804 43 States and political subdivisions 5,592 5,736 5,364 5,832 5,802 5,695 5,558 5,745 5,597 44 U.S. Government 1,030 2,985 1,482 5,700 5,970 3,760 1,309 2,327 4,857 Domestic interbank: 45 Commercial 27,563 31,272 27,263 27,784 28,666 31,243 31,242 29,982 30,108 46 Mutual savings 784 945 804 801 754 1,071 973 872 824 Foreign: 47 Governments, official institutions, etc.... 1,261 1,656 1,074 1,238 1,346 1,723 1,143 1,255 1,342 48 Commerial banks 6,497 6,758 6,534 6,658 6,634 6,565 7,131 6,829 6,323 49 Certified and officers' checks 8,675 9,042 8,187 8,027 7,558 9,350 7,229 7,405 7,589 50 Time and savings deposits3 270,102 270,573 272,167 271,820 272,480 272,501 271,331 272,376 274,903 51 Savings4 91,592 91,805 91,540 91,459 91,633 92,091 91,838 91,668 91,388 52 Time: 178,510 178,768 180,627 180,361 180,847 180,410 179,493 180,708 183,515 53 Individuals, partnerships, and corps 137,420 137,482 139,084 138,877 139,486 139,479 138,909 139,857 141,830 54 States and political subdivisions 26,298 26,21s 26,335 26,200 26,153 26,158 26,161 26,444 26,729 55 Domestic interbank 6,453 6,487 6,730 6,950 7,041 6,736 6,354 6,340 6,714 56 Foreign govts., official institutions, etc... 6,655 6,775 6,745 6,604 6,409 6,366 6,404 6,408 6,587 57 Federal funds purchased, etc.5 79,304 80,175 79,797 78,034 82,370 82,175 86,103 79,643 84,438 Borrowings from: 58 Federal Reserve Banks 608 350 176 1,487 509 1,090 282 1,193 1,062 59 Others 6,688 6,882 6,746 6,616 6,661 6,737 6,859 7,248 7,476 60 Other liabilities, etc.6 32,694 33,043 32,738 33,407 33,658 34,698 34,133 34,436 35,086 61 Total equity capital and subordinated notes/debentures7 46,753 46,984 47,044 46,917 47,014 47,114 47,192 47,102 47,291 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 * 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 Account Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4» Oct. 11» Oct. 18p Oct. 25p 1 Total loans and investments 94,099 96,907 94,792 96,634 94,795 98,005 96,646 96,714 97,288 Loans: 2 Federal funds sold1 4,534 4,586 3,442 4,294 3,884 4,439 3,886 4,024 4,839 3 To commercial banks 2,900 2,795 2,008 2,604 2,344 2,364 2,404 2,354 2,725 To brokers and dealers involving— 4 U.S. Treasury securities 929 1,322 963 1,114 900 1,542 965 1,078 1,089 5 Other securities 10 4 4 4 4 4 4 4 4 6 To others 695 465 467 572 636 529 513 588 1,021 7 Other gross 71,156 72,979 72,917 73,728 73,148 75,380 74,606 74,859 74,927 8 Commercial and industrial 35,745 36,205 36,318 36,667 36,771 37,282 37,503 37,333 37,856 9 Agricultural 163 163 167 161 157 155 157 164 170 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 786 1,477 1,371 1,204 809 1,297 590 1,203 766 11 Other securities 4,605 4,772 4,652 5,075 4,801 4,846 4,516 4,575 4,446 To others: 12 U.S. Treasury securities 28 28 29 28 26 26 27 28 28 13 Other securities 364 368 359 354 358 358 356 351 361 To nonbank financial institutions: 14 Personal and sales finance cos., etc 2,626 2,802 2,879 2,790 2,759 2,857 2,993 3,103 2,919 15 Other 4,746 4,710 4,723 4,827 4,820 4,864 4,861 4,810 4,714 16 Real estate 9,428 9,447 9,603 9,657 9,718 9,708 9,767 9,808 9,851 To commercial banks: 17 Domestic 672 730 612 736 767 1,024 882 691 720 18 Foreign 2,737 2,744 2,697 2,706 2,737 3,168 3,149 3,110 3,148 19 Consumer instalment 4,841 4,854 4,886 4,907 4,935 4,954 4,989 5,005 5,026 20 Foreign govts, official institutions, etc 375 409 395 361 389 441 430 429 592 21 All other loans 4,040 4,270 4,226 4,255 4,101 4,400 4,386 4,249 4,330 22 LESS: Loan loss reserve and unearned income on loans 1,847 1,867 1,889 1,889 1,849 1,843 1,858 1,864 1,880 23 Other loans, net 69,309 71,112 71,028 71,839 71,299 73,537 72,748 72,995 73,047 Investments: 24 U.S. Treasury securities 9,477 10,002 9,274 9,415 8,723 9,146 8,738 8,584 8,315 25 Bills 1,893 1,982 1,385 1,630 1,178 1,429 982 1,141 848 Notes and bonds, by maturity: 26 Within 1 year 672 597 561 539 566 534 507 627 636 27 1 to 5 years 5,629 6,282 6,121 6,010 5,762 5,937 5,915 5,597 5,695 28 After 5 years 1,283 1,141 1,207 1,236 1,217 1,246 1,334 1,219 1,136 29 Other securities - 10,779 11,207 11,048 11,086 10,889 10,883 11,274 11,111 11,087 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills, 1,732 2,150 1,772 1,868 1,850 1,807 1,992 1,963 1,845 31 Allother 7,023 7,034 7,174 6,949 6,910 6,887 7,000 6,866 6,933 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 517 517 501 540 521 527 529 527 521 33 All other, including corporate stocks 1,507 1,506 1,601 1,729 1,608 1,662 1,753 1,755 1,788 34 Cash items in process of collection 15,534 15,451 14,706 15,327 14,243 15,158 14,254 14,568 15,781 3 3 3 3 3 6 7 8 9 5 I O C R B n u a e t v h s l r e a e e r s n r r e t v n c m a e e c s s e s y s n e w w a t t s n i i s t t d h h in c d F s o o e u i m d n b e s e r i s d a t i l i a c R r i b e e a s s e n n r k v o s e t B co an n k so s lidated.... 2 4 7 5 1 , , , , 3 7 6 7 9 6 8 8 2 7 1 6 3 2 3 2 6 6 4 1 , , , , 6 8 7 7 9 5 4 2 1 5 0 0 3 3 5 2 6 6 6 1 1 , , , , , 4 4 5 0 7 2 4 1 2 2 7 2 0 5 9 2 7 7 3 1 1 , , , , , 4 6 3 7 0 5 0 3 2 3 7 9 0 9 4 2 7 5 6 1 1 , , , , , 1 9 6 0 7 4 1 5 3 3 5 2 8 9 2 2 6 8 5 1 , , , , 9 0 2 7 9 2 1 2 4 2 1 5 0 0 1 2 7 8 5 1 1 , , , , , 3 1 9 7 0 7 5 6 6 1 1 6 2 0 0 2 8 6 3 1 1 , , , , , 3 7 7 4 0 7 1 5 1 1 1 5 3 2 4 2 6 7 5 1 1 , , , , , 6 5 4 7 0 7 8 8 8 5 7 6 6 3 0 40 Total assets/total liabilities 150,158 153,239 151,631 153,120 151,524 155,980 155,159 152,547 155,651 4 4 4 4 4 2 3 1 De D po e I S U s n m t . i a d S t a t s i . e v : n s G i d d a o u d n v a d e e l p s r p , n o o p m s l a i i e t t r i n s t c n t a e l r s s h u i b p d s, i v a i n si d o n c s o rporations 5 2 3 8 , , 1 2 3 6 1 1 8 1 3 5 8 4 5 2 4 7 , , 3 7 4 5 1 0 1 6 2 7 1 3 5 2 1 8 , , 9 1 3 1 9 5 9 3 0 2 7 3 5 2 4 8 1 , , , 4 7 1 5 6 5 7 1 9 3 4 1 5 2 3 7 1 , , , 1 2 1 5 4 8 5 0 2 1 5 9 2 55 7 1 , , , 1 6 1 5 1 5 2 3 0 2 7 1 5 2 3 8 , , 8 7 5 1 6 1 2 2 2 3 4 8 5 2 4 8 , , 3 4 4 3 7 3 8 6 7 9 4 8 5 2 4 7 , , 2 1 5 6 0 7 3 9 5 2 6 9 4 4 6 5 Do C M m o u e m t s u t m a ic e l r s i c n a i t v a e i l r n b g a s n k: 13,6 3 4 7 8 7 13,9 4 7 8 7 2 13,0 4 0 0 5 7 13,7 4 6 0 9 2 14,4 3 4 7 7 1 14,1 5 9 9 7 9 14,7 5 1 2 6 4 15,1 4 4 5 5 8 16,1 4 5 4 7 4 4 4 4 5 5 5 5 5 5 5 7 8 9 0 1 2 3 4 5 6 Ti T C m F Sa i o e m e C I S G D F v r r n t t e i o o e a o o a i n d i f r m v m g n t i i g e e e v e n d s m i s e d r i g 4 : d s n s n e a t a u m a r n i n a c c g v d e d l i o i s a i n n n v p , l o t t g t o s p f b e s , f s l a . r i a i , t c b o r d n i o e t f a c k e n f r f a n i f p s s e c l k i ' r o c i c s s a i s h u a h l i l i b e i t p n s c d i s n s 3 k i t v s s a i t i t n i s u t i d u t o i t n o c i o s n o r n s p , s s , e t e c t c... 2 4 3 9 7 5 3 4 4 6 1 1 , , , , , , , , , 6 6 5 9 1 5 9 7 9 9 3 8 2 5 0 1 0 9 2 9 4 1 6 6 8 9 3 0 4 4 2 4 3 4 9 5 7 4 5 1 1 6 1 , , , , , , , , , , 9 5 0 6 3 9 7 1 8 3 0 5 2 5 6 6 0 5 7 5 1 8 8 7 1 6 0 7 0 4 4 2 3 9 6 3 4 4 8 6 1 1 , , , , , , , , , 9 1 5 5 7 1 2 8 8 8 0 4 9 6 4 4 0 9 4 4 5 9 7 5 0 2 3 0 4 9 2 4 3 3 9 7 5 5 1 6 3 1 1 , , , , , , , , , , 8 8 8 5 2 9 8 8 0 0 0 4 2 2 7 6 0 2 0 5 7 1 0 5 5 7 1 9 7 2 2 4 3 2 3 9 5 4 7 3 6 1 1 , , , , , , , , , , 7 0 6 5 8 8 8 1 4 0 7 1 6 7 3 4 9 4 4 8 0 5 6 1 5 5 9 6 9 4 4 2 3 2 6 9 7 3 4 4 6 1 1 , , , , , , , , , , 2 0 5 9 7 6 9 5 7 5 2 1 8 8 3 9 0 1 5 0 7 5 5 1 2 9 2 7 4 2 2 4 3 2 9 5 3 7 5 2 6 1 , , , , , , , , , 9 2 7 5 9 3 5 3 9 9 1 7 1 6 5 4 8 6 8 2 9 5 3 3 6 5 0 4 4 8 4 2 3 6 2 9 2 3 7 5 3 6 1 , , , , , , , , , , 4 8 0 5 3 1 9 3 9 0 6 0 2 6 2 4 0 3 0 2 7 6 7 6 6 0 0 6 0 0 4 2 3 2 2 6 9 3 8 4 7 3 1 , , , , , , , , , , 0 1 8 8 4 4 3 5 5 0 0 0 8 3 8 7 2 7 8 3 1 7 5 5 4 3 8 9 8 0 57 Federal funds purchased, etc.5 20,150 22,244 22,937 22,330 21,822 22,433 23,629 19,110 22,072 5 6 5 8 0 9 B O o t O F h rr e e t o r d h w e e l r r i i a a s n b l g i s R l it f e i r s e o e s r m , v e : e t c B .6 a nks 1 3 4 , , 3 1 4 7 4 6 9 3 0 1 3 4 * , , 3 1 1 7 5 6 1 3 3 * , , 3 9 9 1 8 4 1 3 3 * , , 2 9 5 7 7 9 1 3 4 * , , 2 21 8 7 9 1 3 5 , , 5 0 4 0 5 7 7 9 1 1 3 4 • , , 5 8 6 6 3 0 1 3 5 , , 7 0 4 9 7 2 7 6 5 1 3 4 , , 9 9 3 0 7 6 5 8 0 61 Tota d l e e b q e u n i t t u y r e c s a 7 pital and subordinated notes/ 13,229 13,284 13,287 13,285 13,284 13,300 13,326 13,296 13,323 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 • November 1978 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4p Oct. 11 p Oct. 18 p Oct. 25p 1 Total loans and investments 375,417 382,179 379,786 380,444 380,728 383,812 384,539 383,535 384,285 Loans : 2 Federal funds sold1 19,279 23,989 21,299 20,297 19,235 21,143 21,005 19,950 20,280 3 To commercial banks 15,446 18,306 17,279 16,253 15,602 16,711 17,707 15,746 16,989 To brokers and dealers involving— 4 U.S. Treasury securities 1,839 3,279 2,028 1,893 1,447 2,302 1,273 2,136 1,344 5 Other securities 509 554 509 577 602 578 625 556 508 6 To others 1,485 1,850 1,483 1,574 1,584 1,552 1,400 1,512 1,439 7 Other, gross 274,341 275,307 275,225 276,487 278,025 279,424 280,311 280,736 281,088 8 Commercial and industrial 99,223 99,197 99,228 99,876 99,939 100,509 100,931 100,962 100,970 9 Agricultural 5,096 5,119 5,147 5,153 5,177 5,205 5,241 5,257 5,250 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 147 123 122 117 112 139 125 114 97 11 Other securities 4,252 4,143 3,950 3,867 4,452 4,365 4,202 4,089 4,018 To others: 12 U.S. Treasury securities 79 78 80 78 79 83 81 81 82 13 Other securities 2,261 2,269 2,261 2,245 2,228 2,219 2,218 2,220 2,214 To nonbank financial institutions: 14 Personal and sales finance cos., etc 5,248 5,440 5,430 5,284 5,363 5,352 5,428 5,442 5,335 15 Other 10,956 10,928 11,063 11,048 11,079 11,096 11,141 11,104 10,895 16 Real estate 74,995 75,224 75,555 75,898 76,164 76,535 76,850 77,255 77,451 To commercial banks: 17 Domestic 1,641 1,662 1,550 1,593 1,794 1,699 1,765 1,632 1,757 18 Foreign 3,192 3,280 3,271 3,256 3,326 3,451 3,501 3,501 3,649 19 Consumer instalment 48,202 48,388 48,486 48,730 49,006 49,253 49,352 49,521 49,670 20 Foreign govts., official institutions, etc 1,259 1,305 1,311 1,284 1,277 1,327 1,370 1,397 1,424 21 All other loans 17,790 18,151 17,771 18,058 18,029 18,191 18,106 18,161 18,276 22 LESS: Loan reserve and unearned income on loans 8,835 8,865 8,904 8,951 8,940 8,903 9,002 9,032 9,076 23 Other loans, net 265,506 266,442 266,321 267,536 269,085 270,521 271,309 271,704 272,012 Investments: 24 U.S. Treasury securities 33,300 33,801 34,244 34,503 34,194 33,900 33,631 33,332 33,409 25 Bills 2,697 2,628 3,121 3,208 3,160 2,902 2,561 2,500 2,598 Notes and bonds, by maturity: 26 Within 1 year 6,069 6,318 6,359 6,398 6,413 6,402 6,540 6,502 6,576 27 1 to 5 years 20,221 20,412 20,366 20,490 20,252 20,083 19,966 19,811 19,656 28 After 5 years 4,313 4,443 4,398 4,407 4,369 4,513 4,564 4,519 4,579 29 Other securities 57,332 57,947 57,922 58,108 58,214 58,248 58,594 58,549 58,584 Obligations of States and political subdivisions : 30 Tax warrants, short-term notes, and bills. 4,424 4,634 A,291 4,212 4,291 4,818 4,737 4,741 A,111 31 Allother 38,727 38,897 39,052 39,079 39,043 38,786 38,880 38,888 38,864 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,318 2,323 2,354 2,396 2,334 2,393 2,409 2,413 2,491 33 All other, including corporate stocks 11,863 12,093 12,219 12,421 12,546 12,251 12,568 12,507 12,512 34 Cash items in process of collection 27,598 37,291 31,301 31,693 29,109 33,274 33,742 31,280 29,323 35 Reserves with Federal Reserve Banks 17,725 11,579 16,266 15,553 19,603 16,723 16,941 16,283 20,267 36 Currency and coin 5,809 5,200 5,838 5,721 5,897 5,122 5,730 5,793 5,906 37 Balances with domestic banks 6,509 8,435 6,677 6,953 7,638 7,129 8,035 7,140 6,358 38 Investments in subsidiaries not consolidated..., 1,534 1,612 1,577 1,586 1,587 1,538 1,586 1,674 1,726 39 Other assets 37,937 38,689 38,460 38,546 38,464 39,385 39,216 39,024 39,184 40 Total assets/total liabilities . 472,529 484,985 479,905 480,496 483,026 486,983 489,789 484,729 487,049 Deposits: 41 Demand deposits 133,375 145,905 140,878 140,866 138,716 143,535 145,186 140,901 138,239 42 Individuals, partnerships, and corporations 106,921 114,116 114,008 110,542 107,847 111,589 115,750 112,424 108,632 43 States and political subdivisions 5,204 5,325 4,967 5,321 5,293 5,194 5,034 5,261 5,061 44 U.S. Government 916 2,422 1,349 4,526 4,815 2,633 1,181 1,959 4,158 Domestic interbank: 45 Commercial 13,915 17,295 14,258 14,015 14,219 17,046 16,526 14,837 13,951 46 Mutual savings 407 463 397 399 383 472 449 414 380 Foreign: 47 Governments, official institutions, etc 267 302 225 231 262 221 215 235 312 48 Commercial banks 1,573 1,601 1,690 1,606 1,785 1,811 1,747 1,702 1,735 49 Certified and officers' checks 4,172 4,381 3,984 4,226 4,112 4,569 4,284 4,069 4,010 50 Time and savings deposits* 224,468 224,665 226,062 226,020 226,710 226,404 225,412 225,910 228,095 51 Savings4 82,066 82,254 82,000 81,934 82,062 82,506 82,275 82,102 81,903 52 Time 142,402 142,411 144,062 144,086 144,648 143,898 143,137 143,808 146,192 53 Individuals, partnerships, and corps 109,739 109,582 110,942 111,056 111,651 111,564 111,329 111,931 113,729 54 States and political subdivisions 24,508 24,512 24,538 24,371 24,308 24,249 24,197 24,444 24,694 55 Domestic interbank 4,534 4,617 4,840 4,983 5,026 4,509 4,079 4,000 4,240 56 Foreign govts., official institutions, etc.., 2,699 2,747 2,796 2,757 2,743 2,734 2,691 2,601 2,700 57 Federal funds purchased, etc.5 59,154 57,931 56,860 55,704 60,548 59,742 62,474 60,533 62,366 Borrowings from: 58 Federal Reserve Banks 148 350 176 1,487 509 619 282 768 702 59 Others 3,309 3,567 3,348 3,359 3,372 3,230 3,296 3,472 3,571 60 Other liabilities, etc.6 18,551 18,867 18,824 19,428 19,441 19,639 19,273 19,339 20,108 61 Total equity capital and subordinated notes/debentures? 33,524 33,700 33,757 33,632 33,730 33,814 33,866 33,806 33,968 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. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. llf Oct. 18p Total loans (gross) and investments adjusted1 1 Large Banks 459,539 466,325 463,922 466,732 465,805 470,765 469,287 470,722 2 New York City banks 92,374 95,249 94,061 95,183 93,533 96,460 95,218 95,533 3 Banks outside New York City 367,165 371,076 369,861 371,549 372,272 374,305 374,069 375,189 Total loans (gross), adjusted 4 Large banks 348,651 353,368 351,434 353,620 533,785 358,588 357,050 359,146 5 New York City banks 72,118 74,040 73,739 74,682 73,921 76,431 75,206 75,838 6 Banks outside New York City 276,533 279,328 277,695 278,938 279,864 282,157 281,844 283,308 Demand deposits, adjusted2 7 Large Banks 114,813 113,218 118,116 114,831 113,870 115,213 118,501 117,121 8 New York City banks 23,867 24,321 24,146 24,199 23,297 24,631 24,764 24,296 9 Banks outside New York City 90,946 88,897 93,970 90,632 90,573 90,582 93,737 92,825 Large negotiable time CD's included in time and savings deposits3 Total: 10 Large banks 89,248 89,385 90,893 90,569 90,977 90,230 89,329 89,987 11 New York City 24,817 24,958 25,088 24,723 24,595 24,818 24,738 25,149 12 Banks outside New York City 64,431 64,427 65,805 65,846 66,382 65,412 64,591 64,838 Issued to IPC's: 13 Large banks 63,164 63,111 64,363 63,912 64,380 63,916 63,293 63,876 14 New York City Banks 17,794 17,976 18,129 17,725 17,721 17,706 17,491 17,730 15 Banks outside New York City 45,370 45,135 46,234 46,187 46,659 46,210 45,802 46,146 Issued to others: 16 Large banks 26,084 26,274 26,530 26,657 26,597 26,314 26,036 26,111 17 New York City banks 7,023 6,982 6,959 6,998 6,874 7,112 7,247 7,419 18 Banks outside New York City 19,061 19,292 19,571 19,659 19,723 19,202 18,789 18,692 All other large time deposits4 Total: 19 Large banks 34,628 34,742 34,855 34,742 34,712 34,786 34,653 35,084 20 New York City banks 6,328 6,455 6,481 6,512 6,540 6,672 6,597 6,703 21 Banks outside New York City 28,300 28,287 28,374 28,230 28,172 28,114 28,056 28,381 Issued to IPC's: 22 Large banks 20,419 20,507 20,629 20,707 20,729 21,057 21,059 21,258 23 New York City banks 5,096 5,143 5,186 5,227 5,223 5,350 5,266 5,329 24 Banks outside New York City 15,323 15,364 15,443 15,480 15,506 15,707 15,793 15,929 Issued to others: 25 Large banks 14,209 14,235 14,226 14,035 13,983 13,729 13,594 13,826 26 New York City banks 1,232 1,312 1,295 1,285 1,317 1,322 1,331 1,374 27 Banks outside New York City 12,977 12,923 12,931 12,750 12,666 12,407 12,263 12,452 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks 85,306 85,465 85,220 85,197 85,342 85,750 85,470 85,319 29 New York City banks 8,891 8,903 8,881 8,863 8,902 8,894 8,863 8,853 30 Banks outside New York City 76,415 76,562 76,339 76,334 76,440 76,856 76,607 76,466 Partnerships and corporations for profit:5 31 Large banks 5,134 5,163 5,137 5,077 5,113 5,121 5,124 5,102 32 New York City banks 470 474 473 470 473 481 477 473 33 Banks outside New York City 4,664 4,689 4,664 4,607 4,640 4,640 4,647 4,629 Domestic governmental units: 34 Large banks 1,138 1,154 1,152 1,153 1,145 1,197 1,225 1,223 35 New York City banks 158 160 169 172 176 194 212 223 36 Banks outside New York City 980 994 983 981 969 1,003 1,013 1,000 All other:6 37 Large banks 14 23 31 32 33 23 19 24 38 New York City banks 7 14 17 20 20 16 11 17 39 Banks outside New York City 7 9 14 12 13 7 7 Gross liabilities oi banks to their foreign branches 40 Large banks 5,039 5,544 4,623 5,667 5,322 6,437 6,470 6,323 41 New York City banks 2,631 3,245 2,016 2,632 2,175 3,613 3,312 2,997 42 Banks outside New York City 2,408 2,299 2,607 3,035 3,147 2,824 3,158 3,326 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial8 2,444 2,378 2,389 2,331 2,342 1,961 1,972 2,086 44 Real estate » 282 291 288 287 287 287 288 283 45 All other » 1,958 2,033 2,061 2,020 2,022 1,748 1,736 1,648 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 • November 1978 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— IInndduussttrryy ccllaassssiiffiiccaattiioonn 1978 1978 1978 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25*> Q2 Q3 Aug. Sept. Oct. Total loans classified2 1 Total 111,500 112,534 113,026 112,914 113,363 5,384 1,346 210 1,791 1,863 Durable goods manufacturing: 2 Primary metals 2,732 2,755 2,727 2,672 2,664 43 -66 18 11 -68 3 Machinery 5,388 5,333 5,384 5,398 5,449 177 -16 -82 64 61 4 Transportation equipment 2,747 2,793 2,813 2,795 2,588 66 -52 -34 51 -159 5 Other fabricated metal products... 2,522 2,516 2,521 2,497 2,444 181 69 -15 129 -78 6 Other durable goods 4,045 4,045 4,034 4,005 3,966 382 136 48 102 -79 Nondurable goods manufacturing: 7 Food, liquor, and tobacco 4,154 4,205 4,232 4,276 4,340 409 -101 83 2 186 8 Textiles, apparel, and leather 4,383 4,407 4,466 4,347 4,273 565 240 167 -56 -110 2,521 2,504 2,463 2,493 2,474 159 -116 4 -45 -47 3,468 3,511 3,336 3,299 3,295 154 -101 -115 69 -173 11 Other nondurable goods 2,480 2,440 2,447 2,446 2,433 61 213 76 81 -47 12 Mining, including crude petroleum and natural gas 1100,,557777 10,594 10,584 10,563 10,594 883 172 81 124 17 Trade: 13 Commodity dealers 1,744 1,751 1,724 1,668 1,805 -187 -323 -215 -22 61 14 Other wholesale 9,172 9,250 9,414 9,461 9,451 458 232 -48 199 279 15 Retail 8,194 8,343 8,485 8,635 8,830 639 -80 -198 132 636 16 Transportation 5,494 5,401 5,412 5,464 5,528 -147 53 73 157 34 17 Communication 1,733 1,828 1,749 1,723 1,713 249 68 -4 55 -20 18 Other public utilities 5,099 5,283 5,282 5,314 5,344 38 89 -62 -15 245 19 Construction 5,221 5,190 5,263 5,259 5,205 483 110 7 17 -16 20 Services 13,959 14,047 14,006 14,106 14,178 1,134 520 9 413 219 21 All other domestic loans 8,036 8,247 8,396 8,346 8,293 296 282 115 6 257 22 Bankers acceptances 3,112 2,991 3,162 3,094 3,322 -429 -149 245 233 210 23 Foreign commercial and industrial loans 4,719 5,100 5,126 5,053 5,174 -230 166 57 84 455 MEMO ITEMS: 24 Commercial paper included in total classified loans1 6633 6622 --6600 -8 --1199 1188 --11 25 Total commercial and industrial loans of all large weekly re- 136,710 137,791 138,434 138,295 138,826 6,601 1,333 329 1,742 2,116 1978 1978 1978 June 28 July 26 Aug. 30 Sept. 27 Oct. 25p Q2 Q3 Aug. Sept. Oct. "Term" loans classified3 26 Total 51,293 51,905 52,618 53,019 53,762 1,926 1,726 713 r401 743 Durable goods manufacturing: 27 Primary metals 1,706 1,695 1,710 1,672 1,641 128 -34 15 -38 -31 28 Machinery 2,576 2,712 2,669 2,650 2,768 45 74 -43 -19 118 29 Transportation equipment 1,420 1,439 1,586 1,565 1,506 -69 145 147 -21 -59 30 Other fabricated metal products. 994 1,000 990 1,007 1,004 87 13 -10 17 -3 31 Other durable goods 1,678 1,718 1,699 1,713 1,717 106 35 -19 14 4 Nondurable goods manufacturing: Food, liquor, and tobacco 1,671 1,691 1,740 1,727 1,862 150 56 49 -13 135 Textiles, apparel, and leather 1,122 1,138 1,133 1,126 1,096 84 4 -5 -7 -30 Petroleum refining 1,947 1,882 1,882 1,846 1,789 74 -101 -36 -57 Chemicals and rubber 2,412 2,418 2,322 2,301 2,109 296 -111 -96 -21 -192 Other nondurable goods 1,091 1,103 1,156 1,177 1,192 -78 86 53 21 15 37 Mining, including crude petroleum and natural gas 7,760 7,660 7,757 7,862 7,852 676 102 97 105 -10 Trade: 38 Commodity dealers 228 233 248 250 268 -24 22 15 2 18 39 Other wholesale 2,175 2,233 2,276 2,360 2,329 187 185 43 84 -31 40 Retail 2,834 2,782 2,827 2,791 3,065 275 -43 45 -36 274 41 Transportation 3,738 3,678 3,732 3,753 3,718 -133 15 54 21 -35 42 Communication 1,009 1,061 1,057 1,076 1,065 85 67 -4 19 -11 43 Other public utilities 3,529 3,714 3,860 3,847 3,960 -293 318 146 -13 113 44 Construction 2,117 2,177 2,245 2,224 2,264 51 107 68 -21 40 45 Services 6,490 6,592 6,606 6,797 6,936 609 307 14 191 139 46 All other domestic loans 2,320 2,436 2,616 2,713 2,798 -145 r393 180 97 85 47 Foreign commercial and industrial loans 2,476 2,543 2,507 2,562 2,823 -185 r86 -36 55 261 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 1977 1978 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June Sept. 11111 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss,,,,, iiiiinnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd cccccooooorrrrrpppppooooorrrrraaaaatttttiiiiiooooonnnnnsssss 225.0 236.9 250.1 242.3 253.8 252.7 274.4 262.5 271.2 278.8 19.0 20.1 22.3 21.6 25.9 23.7 25.0 24.5 25.7 25.9 33333 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 118.8 125.1 130.2 125.1 129.2 128.5 142.9 131.5 137.7 142.5 44444 CCCCCooooonnnnnsssssuuuuummmmmeeeeerrrrr 73.3 78.0 82.6 81.6 84.1 86.2 91.0 91.8 92.9 95.0 55555 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 2.3 2.4 2.7 2.4 2.5 2.5 2.5 2.4 2.4 2.5 66666 OOOOOttttthhhhheeeeerrrrr 11.7 11.3 12.4 11.6 12.2 11.8 12.9 12.3 12.4 13.1 At weekly reporting banks 1978 11997755 11997766 11997777 DDeecc.. DDeecc.. DDeecc.. Mar. Apr. May June July Aug. Sept. 77777 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss,,,,, iiiiinnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd 124.4 128.5 139.1 131.9 135.6 134.3 136.9 139.9 137.7 139.7 88888 FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 15.6 17.5 18.5 18.2 17.9 18.1 19.0 19.4 19.4 18.9 99999 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 69.9 69.7 76.3 68.9 70.9 70.7 71.9 73.7 72.0 74.1 29.9 31.7 34.6 35.4 37.6 36.0 36.6 37.1 36.8 37.1 2.3 2.6 2.4 2.3 2.2 2.4 2.3 2.3 2.4 2.4 1111122222 OOOOOttttthhhhheeeeerrrrr 6.6 7.1 7.4 7.0 7.0 7.1 7.1 7.3 7.1 7.3 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 1975 1976 1977 Instrument Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted) 1 All issuers 48,459 53,025 65,209 67,476 70,289 71,213 74,536 74,900 73,960 76,990 Financial companies:1 Dealer-placed paper:2 2 Total 6,202 7,250 8,871 8,889 9,670 10,314 10,327 10,617 10,868 11,279 3 Bank-related 1,762 1,900 2,132 11,,999933 22,,007788 22,,221177 22,,444422 22,,663333 22,,993355 2,622 Directly-placed paper:3 4 Total 31,374 32,500 40,496 42,903 44,326 44,664 47,315 46,594 45,510 4477,,779911 5 Bank-related 6,892 5,959 7,102 8,153 7,995 9,258 9,585 10,030 9,634 10,383 6 Nonfinancial companies4 10,883 13,275 15,842 15,684 16,293 16,235 16,894 17,689 17,582 17,920 Dollar acceptances (not seasonally adjusted) 7 Total. 18,727 22,523 25,654 26,256 26,714 28,289 27,579 28,319 27,952 Held by: Accepting banks 7,555 10,442 10,434 7,375 7,091 7,286 7,502 7,244 7,048 7,647 Own bills 5,899 8,769 8,915 6,375 6,117 6,365 6,520 6,345 6,131 6,461 Bills bought 1,435 1,673 1,519 1,000 974 921 983 899 917 1,186 F.R. Banks: Own account 1,126 991 954 1 1 Foreign correspondents. 293 375 362 522 550 679 625 568 633 556 13 Others 9,975 10,715 13,904 18,283 18,614 18,749 20,160 19,766 20,638 19,748 Based on: 14 Imports into United States., 3,726 4,992 6,532 6,979 7,108 7,027 7,578 7,415 7,885 7,957 15 Exports from United States. 4,001 4,818 5,895 6,034 6,216 6,494 6,906 6,565 6,558 6,350 16 All other 11,000 12,713 13,227 13,168 12,932 13,193 13,805 13,599 13,876 13,644 1 Institutions engaged primarily in activities such as, but not limited to, 3 As reported by financial companies that place their paper directly commercial, savings, and mortgage banking; sales, personal, and mortgage with investors. financing; factoring, finance leasing, and other business lending; insurance 4 Includes public utilities and firms engaged primarily in activities such underwriting; and other investment activities. as communications, construction, manufacturing, mining, wholesale and 2 Includes all financial company paper sold by dealers in the open retail trade, transportation, and services. market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • November 1978 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Month Average Month Average Effective date Rate Effective date Rate rate rate 1977—Aug. 22. 7 1978—June 16, 834 1977—Jan.. 6.25 1978—Jan 7.93 30 9 Feb. 6.25 Feb 8.00 Sept. 16. m Mar, 6.25 8.00 Aug. 31, 91/4 Apr. 6.25 8.00 Oct. 7. 71/2 May. 6.41 8.27 24. m Sept. 15, 91/2 June, 6.75 8.63 28, 93/4 July. 6.75 July 9.00 1978—Jan. 10. Aug. 6.83 9.01 Oct. 13 10 Sept. 7.13 9.41 May 5 m 27, 10% Oct.. 7.52 9.94 26 m Nov. 7.75 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 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets All 1.36 INTEREST RATES Money and Capital Markets Averages, per cent per annum 1978 1978, week ending— IInnssttrruummeenntt 11997755 11997766 11997777 July Aug. Sept. Oct. Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Money market rates 1 Federal funds 1. 5.82 5.05 5.54 7.81 8.04 8.45 8.96 8.62 8.85 8.71 8.78 9.24 Prime commercial paper 2>3 90- to 119-day 6.26 5.24 5.54 7.85 7.83 8.39 8.98 8.56 8.70 8.92 9.02 9.13 4- to 6-month 6.33 5.35 5.60 7.91 7.90 8.44 9.03 8.60 8.75 8.97 9.07 9.19 Finance company paper, directly placed, 3- to 6-month3.4 6.16 5.22 5.49 7.66 7.65 8.18 8.78 8.37 8.54 8.71 8.80 8.92 5 Prime bankers acceptances, 90-day 3.5 6.30 5.19 5.59 8.02 7.98 8.54 9.32 8.82 8.89 9.06 9.33 9.59 Large negotiable certificates of deposit 6 3-month, secondary market 6 6.43 5.26 5.58 9.00 8.05 8.61 9.14 8.83 8.95 9.15 9.26 9.64 7 3-month, primary market 7 5.15 5 52 8.00 7.86 8.42 9.17 8.65 8.75 9.13 9.38 9.40 8 Euro-dollar deposits, 3-month * 6.97 5.57 6.05 8.52 8.48 9.12 10.12 9.41 9.58 9.74 9.91 10.31 U.S. Government securities Bills: 3.9 Market yields: 3-month 5.80 4.98 5.27 7.01 7.08 7.85 7.99 7.96 8.14 7.98 7.89 7.70 6-month 6.11 5.26 5.53 7.44 7.37 7.99 8.55 8.28 8.39 8.39 8.59 8.57 1-year 6.30 5.52 5.71 7.79 7.73 8.01 8.45 8.16 8.23 8.28 8.46 8.53 Rates on new issue:io 3-month 5.838 4.989 5.265 7.074 7.036 7.836 8.132 8.106 8.161 8.256 8.209 7.900 6-month 6.122 5.266 5.510 7.471 7.363 7.948 8.493 8.276 8.377 8.422 8.561 8.612 Capital market rates Government notes and bonds U.S. Treasury Constant maturities:11 1-yea r 6.76 5.88 6.09 8.39 8.31 8.64 9.14 8.81 8.88 8.93 9.17 9.24 2-yea r 6.45 8.49 8.37 8.57 8.85 8.73 8.69 8.70 8.80 8.96 3-yea r 7.49 6.77 6.69 8.54 8.33 8.41 8.62 8.49 8.50 8.47 8.57 8.69 5-year 7.77 7.18 6.99 8.54 8.33 8.43 8.61 8.52 8.52 8.49 8.59 8.66 7-year 7.90 7.42 7.23 8.55 8.38 8.42 8.64 8.54 8.56 8.52 8.63 8.69 10-year 7.99 7.61 7.42 8.64 8.41 8.42 8.64 8.55 8.58 8.54 8.62 8.69 20-year 8.19 7.86 7.67 8.69 8.45 8.47 8.69 8.61 8.64 8.61 8.67 8.73 30-year 8.65 8.47 8.47 8.67 8.59 8.63 8.60 8.66 8.70 Notes and bonds maturing in - 22 3 to 5 years 7.55 6.94 6.85 8.54 8.31 8.38 8.61 8.48 8.48 8.47 8.56 8.69 23 Over 10 years (long-term)... 6.98 6.78 7.06 8.09 7.87 7.82 8.07 7.94 7.99 8.00 8.06 8.12 State and local: Moody's series:13 24 Aaa 6.42 5.66 5.20 5.80 5.56 5.53 5.53 5.60 5.50 5.50 5.50 5.60 25 Baa 7.62 7.49 6.12 6.45 6.54 6.63 6.18 6.30 6.10 6.30 6.10 6.20 26 Bond Buyer series 14. 7.05 6.64 5.68 6.28 6.12 6.09 6.13 6.09 6.07 6.10 6.14 6.21 Corporate bonds Seasoned issues 15 All industries 9.57 9.01 8.43 9.22 9.08 9.08 9.20 9.08 9.10 9.15 9.21 9.29 By rating groups: Aaa 8.83 8.43 8.02 8.88 8.69 8.78 8.89 8.77 8.81 8.85 8.88 8.94 Aa 9.17 8.75 8.24 9.07 8.96 8.96 9.07 8.97 8.97 9.04 9.08 9.14 A 9.65 9.09 8.49 9.33 9.18 9.11 9.26 9.11 9.14 9.19 9.27 9.38 Baa 10.61 9.75 8.97 9.60 9.48 9.47 9.59 9.46 9.48 9.52 9.60 9.69 Aaa utility bonds:16 32 New issue 9.40 8.48 8.19 9.14 8.82 8.86 9.17 9.06 9.04 9.19 9.23 33 Recently offered issues. 9.41 8.49 8.19 9.18 8.91 8.86 9.13 9.00 9.04 9.03 9.15 9.24 Dividend/price ratio 34 Preferred stocks. 8.38 7.97 7.60 8.42 8.26 8.24 8.29 8.22 8.19 8.24 8.32 8.39 35 Common stocks. 4.31 3.77 4.56 5.25 4.93 4.97 5.11 5.08 5.02 4.91 5.16 5.33 1 Weekly figures are 7-day averages of daily effective rates for the week 9 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. a given day weighted by the volume of transactions at these rates. I o Rates are recorded in the week in which bills are issued. 2 Beginning Nov. 1977, unweighted average of offering rates quoted II 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. 12 Unweighted averages for all outstanding notes and bonds in maturity 3 Yields are quoted on a bank-discount basis. ranges shown, based on daily closing bid prices. "Long-term" includes 4 Averages of the most representative daily offering rates published by all bonds neither due nor callable in less than 10 years, including a numfinance companies for varying maturities in this range. ber of very low yielding "flower" bonds. 5 Average of the midpoint of the range of daily dealer closing rates 13 General obligations only, based on figures for Thursday, from offered for domestic issues. Moody's Investors Service. 6 Weekly figures (week ending Wednesday) are 7-day averages of the 14 Twenty issues of mixed quality. daily midpoints as determined from the range of offering rates; monthly 15 Averages of daily figures from Moody's Investors Service. figures are averages of total days in the month. Beginning Apr. 5, 1978, 16 Compilation of the Board of Governors of the Federal Reserve weekly figures are simple averages of offering rates. System. ? 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. s 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 • November 1978 1.37 STOCK MARKET Selected Statistics 1978 IInnddiiccaattoorr 11997755 11997766 11997777 Apr. May June July Aug. Sept. Oct. Prices and trading (averages of daily figures) CCCCoooommmmmmmmoooonnnn ssssttttoooocccckkkk pppprrrriiiicccceeeessss 1111 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((DDDDeeeecccc.... 33331111,,,,1111999966665555 ==== 55550000)))).... 45.73 54.45 53.67 51.75 54.49 54.83 54.61 58.53 58.58 56.40 51.88 60.44 57.84 55.48 59.14 59.63 59.35 64.07 64.23 61.60 3333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn 30.73 39.57 41.07 41.19 44.21 44.19 44.74 49.45 50.19 46.70 4444 UUUUttttiiiilllliiiittttyyyy 31.45 36.97 40.91 39.69 39.47 39.41 39.28 40.20 39.82 39.44 46.62 52.94 55.23 55.04 57.95 58.31 57.97 63.28 63.22 60.42 6666 SSSSttttaaaannnnddddaaaarrrrdddd &&&& PPPPoooooooorrrr''''ssss CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnn ((((1111999944441111----44443333 ==== 11110000)))) ****........ 85.17 102.01 98.18 92.71 97.41 97.66 97.19 103.92 103.86 100.58 7777 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee ((((AAAAuuuugggg.... 33331111,,,,1111999977773333 ==== 111100000000)))).... 83.15 101.63 116.18 133.67 142.26 147.64 149.87 162.52 170.95 160.14 VVVVoooolllluuuummmmeeee ooooffff ttttrrrraaaaddddiiiinnnngggg ((((tttthhhhoooouuuussssaaaannnnddddssss ooooffff sssshhhhaaaarrrreeeessss))))2222 8888 NNNNeeeewwww YYYYoooorrrrkkkk SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 18,568 21,189 20,936 34,780 35,261 30,514 27,074 37,603 33,612 31,020 9999 AAAAmmmmeeeerrrriiiiccccaaaannnn SSSSttttoooocccckkkk EEEExxxxcccchhhhaaaannnnggggeeee 2,150 2,565 2,514 4,151 4,869 4,220 3,496 5,526 5,740 4,544 Customer financing (end-of-period balances, in millions of dollars) 11110000 RRRReeeegggguuuullllaaaatttteeeedddd mmmmaaaarrrrggggiiiinnnn ccccrrrreeeeddddiiiitttt aaaatttt bbbbrrrrooookkkkeeeerrrrssss////ddddeeeeaaaalllleeeerrrrssss aaaannnndddd bbbbaaaannnnkkkkssss3333 6666666666666,,,,,,,,,,,,,555555555555500000000000000000000000000 9999999999999,,,,,,,,,,,,,000000000000011111111111111111111111111 11111111111110000000000000,,,,,,,,,,,,,888888888888866666666666666666666666666 11111111111111111111111111,,,,,,,,,,,,,444444444444422222222222224444444444444 11 Brokers total. . 5555555555555,,,,,,,,,,,,,555555555555544444444444440000000000000 8888888888888,,,,,,,,,,,,,111111111111166666666666666666666666666 9999999999999,,,,,,,,,,,,,999999999999999999999999993333333333333 11111111111110000000000000,,,,,,,,,,,,,555555555555511111111111110000000000000 1111100000,,,,,999991111100000 11111111,,,,333333332222 12 Margin stock4 5555555555555,,,,,,,,,,,,,333333333333399999999999990000000000000 7777777777777,,,,,,,,,,,,,999999999999966666666666660000000000000 9999999999999,,,,,,,,,,,,,7777777777777 44444444444440000000000000 11111111111110000000000000,,,,,,,,,,,,,222222222222266666666666660000000000000 1111100000,,,,,666666666600000 11111111,,,,000099990000 iiii,,ii99oo 1111,,774400 1122,,440000 13 Convertible bonds . . . . 111111111111144444444444447777777777777 222222222222200000000000004444444444444 222222222222255555555555550000000000000 222222222222244444444444448888888888888 222224444455555 222244442222 14 Subscription issues 3333333333333 2222222222222 3333333333333 2222222222222 11111 15 Banks total.. . 999999999999966666666666660000000000000 888888888888844444444444445555555555555 888888888888877777777777773333333333333 999999999999911111111111114444444444444 16 Margin stocks. . . 999999999999900000000000009999999999999 888888888888800000000000000000000000000 888888888888822222222222227777777777777 888888888888888888888888882222222222222 17 Convertible bonds .. 33333333333336666666666666 33333333333330000000000000 33333333333330000000000000 22222222222225555555555555 18 Subscription issues 11111111111115555555555555 11111111111115555555555555 11111111111116666666666666 7777777777777 1199 UUnnrreegguullaatteedd nnoonnmmaarrggiinn ssttoocckk ccrreeddiitt aatt bbaannkkss55...... 2222222222222,,,,,,,,,,,,,222222222222288888888888881111111111111 2222222222222,,,,,,,,,,,,,222222222222288888888888883333333333333 2222222222222,,,,,,,,,,,,,555555555555566666666666668888888888888 2222222222222,,,,,,,,,,,,,555555555555566666666666660000000000000 MMEEMMOO:: FFrreeee ccrreeddiitt bbaallaanncceess aatt bbrrookkeerrss66 2200 MMaarrggiinn--aaccccoouunntt 444444444444477777777777775555555555555 555555555555588888888888885555555555555 666666666666644444444444440000000000000 777777777777711111111111115555555555555 777555555 777000000 777111000 777999555 888222555 21 Cash-account 1111111111111,,,,,,,,,,,,,555555555555522222222222225555555555555 1111111111111,,,,,,,,,,,,,888888888888855555555555555555555555555 2222222222222,,,,,,,,,,,,,000000000000066666666666660000000000000 2222222222222,,,,,,,,,,,,,111111111111177777777777770000000000000 222,,,333999555 222,,,333000000 222,,,222999555 222,,,555555555 222,,,666555555 Margin-account debt at brokers (percentage distribution, end of period) 222222 TTToootttaaalll 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 111111110000000000000000........00000000 By equity class (in per cent):7 23 Under 40 2222222244444444........00000000 1111111122222222........00000000 1111111188888888........00000000 1111111155555555........00000000 1111111155555555........00000000 1111111166666666........00000000 1111111133333333........00000000 1111111122222222........00000000 1111111155555555........00000000 24 40-49 2222222288888888........88888888 2222222233333333........00000000 3333333366666666........00000000 3333333322222222........00000000 3333333333333333........00000000 3333333344444444........00000000 3333333344444444........00000000 3333333344444444........00000000 3333333366666666........00000000 25 50-59 2222222222222222........33333333 3333333355555555........00000000 2222222233333333........00000000 2222222277777777........00000000 2222222266666666........00000000 2222222266666666........00000000 2222222255555555........00000000 2222222233333333........00000000 2222222233333333........00000000 26 60-69 1111111111111111........66666666 1111111155555555........00000000 1111111111111111........00000000 1111111133333333........00000000 1111111133333333........00000000 1111111122222222........00000000 1111111144444444........00000000 1111111166666666........00000000 1111111133333333........00000000 27 70-79 66666666........99999999 88888888........77777777 66666666........00000000 77777777........00000000 77777777........00000000 77777777........00000000 88888888........00000000 99999999........00000000 77777777........00000000 28 80 or more 55555555........33333333 66666666........00000000 55555555........00000000 66666666........00000000 66666666........00000000 55555555........00000000 66666666........00000000 66666666........00000000 66666666........00000000 Special miscellaneous-account balances at brokers (end of period) 222999 TTToootttaaalll bbbaaalllaaannnccceeesss (((mmmiiilllllliiiooonnnsss ooofff dddooollllllaaarrrsss))) 888 77777,,,,,222229999900000 88888,,,,,777777777766666 99999,,,,,999991111100000 1111100000,,,,,222221111122222 1111100000,,,,,555551111166666 Distribution by equity status (per cent) 30 Net credit status 4444433333.....88888 4444411111.....33333 4444433333.....44444 4444411111.....99999 4444422222.....66666 Debit status, equity of— 31 60 per cent or more 4444400000.....88888 4444477777.....88888 4444444444.....99999 4444466666.....22222 4444466666.....00000 32 Less than 60 per cent 11111 1111155555.....44444 1111100000.....99999 1111111111.....77777 1111111111.....99999 1111111111.....44444 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 S^-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 1978 11997755 11997766 11997777 AAAccccccooouuunnnttt Jan. Feb. Mar. Apr. May June July Aug. Sept.P Savings and loan associations9 1 Assets 338,233 391,907 459,241 464,238 469,685 475,281 480,947 487,052 491,576 498,301 504,298 508,956 2 Mortgages 227788,,559900 323,005 381,163 384,182 387,591 392,428 397,284 402,305 407,965 411,956 416,677 420,947 3 Cash and investment securities1 30,853 35,724 39,150 40,309 41,599 41,823 41,853 42,444 41,505 43,627 44,188 44,026 4 Other 28,790 33,178 38,928 39,747 40,495 41,030 41,810 42,303 42,106 42,718 43,433 43,983 5 Liabilities and net worth 338,233 391,907 459,241 464,238 469,685 475,281 480,947 487,052 491,576 498,301 504,298 508,956 6 Savings capital 285,743 335,912 386,800 389,544 391,840 398,992 399,550 401,930 408,586 411,660 An,912 420,378 7 Borrowed money 20,634 19,083 27,840 27,943 28,714 29,323 31,904 32,759 34,270 35,730 37,219 38,624 8 FHLBB 17,524 15,708 19,945 20,129 20,602 21,030 22,692 23,323 24,875 26,151 27,363 28,668 9 Other 3,110 3,375 7,895 7,814 8,112 8,293 9,212 9,436 9,395 9,579 9,856 9,956 10 Loans in process 5,128 6,840 9,911 9,828 9,902 10,414 10,937 11,386 11,632 11,540 11,422 11,221 11 Other 6,949 8,074 9,506 11,479 13,462 10,518 12,186 14,239 10,046 11,972 13,906 10,664 12 Net worth2 19,779 21,998 25,184 25,444 25,767 26,034 26,370 26,738 27,042 27,399 27,779 28,069 13 MEMO : Mortgage loan commitments outstanding3.. 10,673 14,826 19,875 19,523 20,614 22,308 23,398 23,939 22,927 22,393 22,047 21,669 Mutual savings banks 14 Assets 121,056 134,812 147,287 148,511 149,528 150,962 151,383 152,202 153,158 154,290 155,185 Loans: 15 Mortgage 77,221 81,630 88,195 88,905 89,247 89,800 90,346 90,915 91,535 92,217 92,853 16 Other 4,023 5,183 6,210 6,803 7,398 7,782 7,422 7,907 7,793 8,240 8,411 Securities: 17 U.S. Government 4,740 5,840 5,895 5,785 5,737 5,677 5,670 5,491 5,268 5,225 5,168 18 State and local government. 1,545 2,417 2,828 2,886 2,808 2,850 2,915 2,994 3,007 3,024 3,096 19 Corporate and other4 27,992 33,793 37,918 38,360 38,605 38,964 39,146 39,225 39,447 39,673 39,624 20 Cash 2,330 2,355 2,401 1,889 1,838 1,990 1,940 1,798 2,188 2,033 2,079 21 Other assets 3,205 3,593 3,839 3,882 3,895 3,899 3,945 3,873 3,921 3,879 3,954 22 Liabilities 121,056 134,812 147,287 148,511 149,528 150,962 151,383 152,202 153,158 154,290 155,185 23 Deposits 109,873 122,877 134,017 134,771 135,200 136,997 136,931 137,307 138,674 139,093 139,274 24 Regular: 5 109,291 121,961 132,744 133,370 133,846 135,558 135,349 135,785 137,062 137,403 137,664 25 Ordinary savings 69,653 74,535 78,005 77,754 77,837 78,783 78,170 78,273 77,269 76,053 75,515 26 Time and other 39,639 47,426 54,739 55,616 56,009 56,775 57,179 57,512 59,793 61,350 62,148 27 Other 582 916 1,272 1,401 1,354 1,439 1,582 1,521 1,612 1,690 1,611 28 Other liabilities 2,755 2,884 3,292 3,676 4,155 3,735 4,152 4,481 3,996 4,658 5,268 29 General reserve accounts.... 8,428 9,052 9,978 10,064 10,174 10,230 10,301 10,414 10,487 10,538 10,642 30 MEMO: Mortgage loan commitments outstanding 6.. 1,803 2,439 4,066 3,998 4,027 4,185 4,342 4,606 4,958 4,872 4,789 Life insurance companies1 31 Assets 289,304 321,552 351,722 354,020 356,266 359,110 363,269 366,938 369,879 374,415 378,124 Securities: 32 Government 13,758 17,942 19,553 19,714 19,692 19,573 19,330 19,489 19,401 19,447 19,563 33 United States 7. 4,736 5,368 5,315 5,376 5,373 5,229 5,087 5,206 4,984 5,006 5,155 34 State and local, 4,508 5,594 6,051 6,102 6,071 6,041 5,923 5,915 5,943 5,925 5,884 35 Foreign 8 4,514 6,980 8,187 8,236 8,248 8,303 8,320 8,368 8,474 8,516 8,524 36 Business 135,317 157,246 175,654 177,864 179,547 181,441 184,917 187,126 188,500 192,112 194,620 37 Bonds 107,256 122,984 141,891 145,355 147,509 148,849 150,419 152,267 153,812 156,207 157,888 38 Stocks 28,061 34,262 33,763 32,509 32,038 32,592 34,498 34,859 34,688 35,905 36,732 39 Mortgages 89,167 91,552 96,848 97,148 97,475 98,022 98,585 99,190 100,040 100,596 101,602 40 Real estate 9,621 10,476 11,060 11,138 11,218 11,213 11,269 11,537 11,540 11,562 11,538 41 Policy loans 24,467 25,834 27,556 27,693 27,839 28,024 28,246 28,431 28,649 28,843 29,067 42 Other assets 16,971 18,502 21,051 20,463 20,495 20,837 20,922 21,165 21,749 21,855 21,734 Credit unions 43 Total assets/liabilities and capital 38,037 45,225 54,084 53,982 54,989 56,703 56,827 58,018 59,381 59,152 60,141 44 Federal 20,209 24,396 29,574 29,579 30,236 31,274 31,255 31,925 32,793 32,679 33,315 45 State 17,828 20,829 24,510 24,403 24,753 25,429 25,572 26,093 26,588 26,473 26,826 46 Loans outstanding 28,169 34,384 42,055 41,876 42,331 43,379 44,133 45,506 47,118 47,620 49,103 47 Federal 14,869 18,311 22,717 22,590 22,865 23,555 23,919 24,732 25,762 25,970 26,840 48 State 13,300 16,073 19,338 19,286 19,466 19,824 20,214 20,774 21,356 21,650 22,263 49 Savings 33,013 39,173 46,832 47,317 48,093 49,706 49,931 50,789 52,076 51,551 51,772 50 Federal (shares) 17,530 21,130 25,849 26,076 26,569 27,514 27,592 28,128 28,903 28,627 28,779 51 State (shares and deposits), 15,483 18,043 20,983 21,241 21,524 22,192 22,339 22,661 23,173 22,924 22,993 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • November 1978 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year TTTrrraaannnsssiiitttiiiooonnn qqquuuaaarrrttteeerrr FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn (((JJJuuulllyyy--- yyyeeeaaarrr yyyeeeaaarrr 1977 1978 1978 SSSeeepppttt... 111999777777 111999777888 111999777666))) HI H2 HI July Aug. Sept. U.S. Budget 1 81,772 357,762 401,997 190,278 175,820 210,650 29,194 35,040 42,591 2 Outlays1 94,742 402,803 450,758 200,350 216,781 222,518 36,426 39,572 38,935 3 Surplus, or deficit (—) -12,970 -45,041 -48,761 -10,072 -40,961 -11,870 -7,232 -4,532 3,655 4 Trust funds -1,952 7,833 12,693 7,332 4,293 4,334 -2,810 3,890 5,922 5 Federal funds 2 -11,018 -52,874 -61,454 -17,405 — 45,254 -16,204 -4,421 -8,422 -2,267 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays. .. -2,575 -8,415 -10,660 -2,075 -6,663 -5,105 -824 -1,056 -753 7 Other3 793 -269 354 -2,086 428 -790 72 -525 -29 U.S. Budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) -14,752 -53,725 -59,067 -14,233 -47,196 -17,765 -7,984 -6,113 -2,873 Financed by: 9 Borrowing from the public 18,027 53,516 59,106 16,480 40,284 23,374 3,195 9,039 2,821 10 Cash and monetary assets (decrease, or increase (—)) -2,899 -2,238 -3,023 -4,666 4,317 -5,098 5,824 -956 -9,731 11 Other 4 -373 2,440 2,984 2,420 2,597 -511 -7,035 -1,970 9,783 MEMO ITEMS : 12 Treasury operating balance (level, end 17,418 19,104 22,444 16,255 1122,,227744 17,526 13,078 13,078 22,444 13 F.R. Banks 13,299 15,740 16,647 15,183 7,114 11,614 12,068 12,068 16,647 14 Tax and loan accounts 4,119 3,364 5,797 1.072 5,160 5,912 1,010 1,010 5,797 1 Effective June 1978, earned income credit payments in excess of 4 Includes public debt accrued interest payable to the public; deposit an individual's tax liability, formerly treated as income tax refunds, are funds; miscellaneous liability (including checks outstanding) and asset classified as outlays retroactive to January 1976. accounts; seignorage; increment on gold; net gain/loss for U.S. currency 2 Half years calculated as a residual of total surplus/deficit and trust valuation adjustment; net gain/loss for IMF valuation adjustment. fund surplus/deficit. 3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural SOURCE.—"Monthly Treasury Statement of Receipts and Outlays of Electrification and Telephone Revolving Fund, Rural Telephone Bank; the U.S. Government," Treasury Bulletin, and U.S. Budget, Fiscal Year and Housing for the Elderly or Handicapped Fund until October 1977. 1978. NOTES TO TABLE 1.38 1 Holdings of stock of the Federal home loan banks are included in NOTE.—Savings and loan associations: Estimates by the FHLBB for "other assets." all associations in the United States. Data are based on monthly reports 2 Includes net undistributed income, which is accrued by most, but not of Federally insured associations and annual reports of other associations. all, associations. Even when revised, data for current and preceding year are subject to 3 Excludes figures for loans in process, which are shown as a liability. further revision. 4 Includes securities of foreign governments and international organiza- Mutual savings banks: Estimates of National Association of Mutual tions and nonguaranteed issues of U.S. Govt, agencies. Savings Banks for all savings banks in the United States. Data are re- 5 Excludes checking, club, and school accounts. ported on a gross-of-valuation-reserves basis. 6 Commitments outstanding (including loans in process) of banks in Life insurance companies: Estimates of the American Council of Life New York State as reported to the Savings Banks Assn. of the State of Insurance for all life insurance companies in the United States. Annual New York. figures are annual-statement asset values, with bonds carried on an 7 Direct and guaranteed obligations. Excludes Federal agency issues amortized basis and stocks at year-end market value. Adjustments for not guaranteed, which are shown in this table under "business" securities. interest due and accrued and for differences between market and book & Issues of foreign governments and their subdivisions and bonds of the values are not made on each item separately but are included, in total, in International Bank for Reconstruction and Development. "other assets." 9 Data reflect benchmark revisions back to 1977. Credit unions: Estimates by the National Credit Union Administration 10 Data for 1977 and 1978 have been revised by the American Council for a group of Federal and State-chartered credit unions that account for of Life Insurance. about 30 per cent of credit union assets. Figures are preliminary and revised annually to incorporate recent benchmark data. 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 quarter Fiscal Fiscal Source or type (July- year year 1977 1978 1978 Sept. 1977 1978 1976) HI H2 HI July Aug. Sept. Receipts 1 All sources1 81,772 357,762 401,997 190,278 175,820 210,650 29,194 35,040 42,591 2 Individual income taxes, net 38,800 157,626 180,988 78,816 82,911 90,336 14,590 14,784 20,883 3 Withheld 32,949 144,820 165,215 73,303 75,480 82,784 14,182 14,370 14,843 4 Presidential Election Campaign Fund 1 37 39 37 j 36 2 5 Nonwithheld 6,809 42,062 47,804 32,959 9,397 37,584 1,088 868 6,354 6 Refunds 1 958 29,293 32,070 27,482 1,967 30,068 682 454 314 7 Corporation income taxes: 8 Gross receipts 9,808 60,057 65,380 37,133 25,121 38,496 2,127 1,509 10,153 9 Refunds 1,348 5,164 5,428 2,324 2,819 2,782 342 388 400 10 Social insurance taxes and contributions, net 25 J60 108,683 123,410 58,099 52,347 66,191 9,518 15,587 8,515 11 Payroll employment taxes and contributions 2 21,534 88,196 99,626 45,242 44,384 51,668 7,960 12,191 7,485 12 Self-employment taxes and contributions 3 269 44,,001144 A,261 33,,668877 316 33,,889922 369 13 Unemployment insurance 2,698 1111,,331122 13,850 66,,557755 4,936 77,,880000 1,094 2,912 162 14 Other net receipts 4 1,259 55,,116622 5,668 22,,559955 2,711 22,,883311 464 484 499 15 Excise taxes 4,473 17,548 18,376 8,432 9,284 8,835 1,707 1,591 1,637 16 Customs deposits 1,212 5,150 6,573 2,519 2,848 3,320 596 681 610 17 Estate and gift taxes 1,455 7,327 5,285 4,332 2,837 2,587 407 515 445 18 Miscellaneous receipts 5 1,612 6,536 7,413 3,269 3,292 3,667 590 760 747 Outlays 8 19 All types i 94,742 402,803 450,758 200,350 216,781 222,518 36,426 39,572 38,935 20 National defense 22,307 97,501 105,192 48,721 50,873 52,979 8,495 9,742 9,006 21 International affairs 2,180 4,831 6,083 2,522 2,896 2,904 231 987 387 22 General science, space, and technology 1,161 4,677 4,721 2,108 2,318 2,395 368 405 403 23 Energy 794 4,172 6,045 2,487 548 620 933 24 Natural resources and environment, 2,532 10,000 11,022 4,959 854 982 1,391 25 Agriculture 584 5,526 7,618 2,628 5,477 2,353 183 386 283 26 Commerce and housing credit 1,391 -31 3,340 -946 460 -110 467 27 Transportation 3,306 14,636 15,461 7,723 1,415 1,288 1,572 28 Community and regional development 1,340 6,283 11,255 3,149 4,924 5,928 859 1,218 1,439 29 Education, training, employment, and social services 5,162 20,985 25,889 9,775 10,800 12,792 2,099 2,716 2,263 30 Health 8,720 38,785 44,529 18,654 19,422 21,391 3,597 4,039 3,595 31 Income security1 32,795 137,905 145,640 70,785 71,081 75,201 11,641 12,266 12,756 32 Veterans benefits and services 3,962 18,038 18,987 9,382 9,864 9,603 610 1,529 1,442 33 Administration of justice 859 3.600 3,786 1,783 1,723 1,946 303 317 324 34 General government 878 3,357 3,544 1,587 1,749 1,803 186 340 335 35 General-purpose fiscal assistance..., 2,092 9,499 9,377 4,333 4,926 4,665 1,964 36 127 36 Interest 6 7,246 38,092 44,040 18,927 19,962 22,280 3,013 3,539 3,306 37 Undistributed offsetting receipts 6,7 -2,567 -15,053 -15,772 -6,803 -8,506 -7,945 -402 -729 -1,089 1 Effective June 1978, earned income credit payments in excess of an 7 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 8 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 « Effective September 1976, "Interest" and "Undistributed Offsetting general purpose fiscal assistance" has become "General purpose fiscal Receipts" reflect the accounting conversion for the interest on special assistance." issues for U.S. Govt, accounts from an accrual basis to a cash basis. In addition, for some categories the table includes revisions in figures published earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • November 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 2 646.4 665.5 685.2 709.1 729.2 747.8 758.8 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 4 Held by agencies 139.3 149.6 146.1 147.1 151.2 155.5 154.8 152.7 161.1 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 i 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 June July Aug. Sept. 1 Total gross public debt 492.7 576.6 653.5 718.9 749.0 750.5 764.4 771.5 By type: 2 Interest-bearing debt 491.6 575.7 652.5 715.2 748.0 749.5 763.4 767.0 3 Marketable 282.9 363.2 421.3 459.9 477.7 481.0 485.6 485.2 4 Bills 119.7 157.5 164.0 161.1 159.8 160.1 160.6 160.9 5 Notes 129.8 167.1 216.7 251.8 265.3 266.6 268.5 267.9 6 Bonds 33.4 38.6 40.6 47.0 52.6 54.4 56.4 56.4 7 Nonmarketable1 208.7 212.5 231.2 255.3 270.3 268.4 227.8 281.8 8 Convertible bonds2 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.2 9 State and local government series .6 1.2 4.5 13.9 20.6 20.8 24.2 24.2 10 Foreign issues3 22.8 21.6 22.3 22.2 21.5 20.8 22.2 21.7 11 Savings bonds and notes 63.8 67.9 72.3 77.0 79.4 79.7 79.9 80.2 12 Government account series4 119.1 119.4 129.7 139.8 146.4 144.7 149.0 153.3 13 Non-interest-bearing debt 1.1 1.0 1.1 3.7 1.0 1.0 4.6 By holder:5 14 U.S. Government agencies and trust funds 138.2 '139.1 r147.1 154.8 161.1 159.3 163.7 15 Federal Reserve Banks 80.5 r89.8 r97.0 102.5 110.1 108.9 111.7 16 Private investors 271.0 349.4 409.5 461.3 477.8 482.3 489.0 17 Commercial banks 55.6 85.1 103.8 101.4 98.5 97.7 95.8 18 Mutual savings banks 2.5 4.5 5.9 5.9 5.5 5.6 5.5 2 1 0 9 O In t s h u e r r a c n o c r e p c o o r m at p io a n n s i es 1 6 1 . . 2 0 2 9 0 . . 5 2 r2 1 7 2. . 7 7 2 1 2 5 . . 7 1 1 1 4 9 . . 7 0 2 1 0 5 . .0 0 2 1 2 5 . . 4 1 21 State and local governments 29.2 34.2 41.6 55.2 62.7 61.7 69.2 Individuals: 22 Savings bonds 63.4 67.3 72.0 76.7 79.1 79.4 79.7 23 Other securities 21.5 24.0 28.8 28.6 29.0 29.0 29.2 24 Foreign and international6 58.8 66.5 78.1 109.6 119.3 120.5 121.2 25 Other miscellaneous investors7 22.8 38.0 38.9 46.1 r50.0 53.4 50.9 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 1 Vi porate pension trust funds, dealers and brokers, certain Govt, deposit per cent, 5-year marketable Treasury notes. Convertible bonds that have accounts, and Govt.-sponsored agencies. been so exchanged are removed from this category and recorded in the notes category above. NOTE.—Gross public debt excludes guaranteed agency securities and, 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 hplder 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 Type of holder 11997766 11997777 1976 1977 July Aug. July Aug. All maturities 1 to 5 years 1 All holders 421,276 459,927 481,041 485,557 141,132 151,264 175,250 171,890 2 U.S. Government agencies and trust funds, 16,485 14,420 13,902 13,898 6,141 4,788 4,856 3,705 3 Federal Reserve banks 96,971 101,191 108,885 111,739 31,249 27,012 31,377 31,722 4 Private investors 307,820 344,315 358,255 359,919 103,742 119,464 139,017 136,462 5 Commercial banks 78,262 75,363 70,901 70,817 40,005 38,691 42,050 41,594 6 Mutual savings banks 4,072 4,379 3,869 3,789 2,010 2,112 2,179 2,115 7 Insurance companies 10,284 12,378 11,780 11,852 3,885 A,129 5,327 5,119 8 Nonfinancial corporations 14,193 9,474 6,839 9,776 2,618 3,183 3,707 4,819 9 Savings and loan associations 4,576 4,817 4,359 4,369 2,360 2,368 2,421 2,470 10 State and local governments 12,252 15,495 14,543 19,394 2,543 3,875 4,549 5,150 11 All others 184,182 222,409 245,964 239,922 50,321 64,505 78,784 75,195 Total, within 1 year 5 to 10 years 12 All holders 211,035 230,691 221,343 222,329 43,045 45,328 44,441 49,274 13 U.S. Government agencies and trust funds 2,012 1,906 1,145 2,293 2,879 2,129 1,987 1,987 14 Federal Reserve banks 51,569 56,702 56,580 56,524 9,148 10,404 11,880 13,684 15 Private investors 157,454 172,084 163,619 163,512 31,018 32,795 30,573 33,603 16 Commercial banks 31,213 29 All 19,993 19,334 6,278 6,162 6,714 7,630 17 Mutual savings banks 1,214 1,400 896 860 567 584 526 551 18 Insurance companies 2,191 2,398 1,557 1,624 2,546 3,204 2,707 2,869 19 Nonfinancial corporations 11,009 5,770 2,637 4,212 370 307 222 376 20 Savings and loan associations 1,984 2,236 1,744 1,713 155 143 122 113 21 State and local governments 6,622 7,917 5,662 8,392 1,465 1,283 1,230 1,521 22 All others 103,220 122,885 131,129 127,377 19,637 21,112 19,052 20,543 Bills, within 1 year 10 to 20 years 23 All holders 163,992 161,081 160,092 160,615 11,865 12,906 16,638 16,608 24 U.S. Government agencies and trust funds 449 32 2 2 3,102 3,102 3,273 3,273 25 Federal Reserve banks 41,279 42,004 44,644 45,895 1,363 1,510 1,852 1,928 26 Private investors 122,264 119,035 115,446 114,719 7,400 8,295 11,513 11,407 27 Commercial banks 17,303 11,996 6,172 5,906 339 456 1,012 950 28 Mutual savings banks 454 484 193 206 139 137 139 135 29 Insurance companies 1,463 1,187 650 742 1,114 1,245 1,300 1,317 30 Nonfinancial corporations 9,939 4,329 1,218 2,265 142 133 138 159 31 Savings and loan associations 1,266 806 450 374 64 54 55 57 32 State and local governments 5,556 6,092 3,600 6,166 718 890 1,078 1,133 33 All others 86,282 94,152 103,173 99,060 4,884 5,380 7,790 7,655 Other, within 1 year Over 20 years 34 All holders 47,043 69,610 61,251 61,714 14,200 19,738 23,370 25,457 35 U.S. Government agencies and trust funds 1,563 1,874 1,143 2,291 2,350 2,495 2,640 2,640 36 Federal Reserve banks 10,290 14,698 11,936 10,630 3,642 5,564 7,197 7,881 37 Private investors 35,190 53,039 48,173 48,793 8,208 11,679 13,533 14,936 38 Commercial banks 13,910 15,482 13,821 13,428 427 578 1,132 1,309 39 Mutual savings banks 760 916 703 654 143 146 128 128 40 Insurance companies 728 1,211 907 882 548 802 889 923 41 Nonfinancial corporations 1,070 1,441 1,419 1,947 55 81 134 210 42 Savings and loan associations 718 1,430 1,294 1,339 13 16 16 16 43 State and local governments 1,066 H,825 2,062 2,225 904 1,530 2,024 3,199 44 All others 16,938 28,733 27,956 28,318 6,120 8,526 9,209 9,152 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 Aug. 31, 1978; (1) 5,468 commercial in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • November 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 July Aug. Sept. Aug. 16 Aug. 23 Aug. 30 Sept. 6 Sept. 13 Sept. 20 1 U.S. Government securities.. 6,027 10,449 10,838 8,829 11,526 9,526 11,638 10,663 9,395 8,456 8,886 9,116 By maturity: 2 Bills 3,889 6,676 6,746 5,367 6,074 5,552 6,235 6,309 5,133 5,028 5,263 5,613 3 Other within 1 year 223 210 237 428 386 315 499 258 285 193 265 243 4 1-5 years 1,414 2,317 2,318 1,524 2,251 1,863 2,046 1,768 2,267 1,698 1,745 1,610 5 5-10 years 363 1,019 1,148 668 1,619 802 1,807 1,270 902 780 796 732 6 Over 10 years 138 229 388 842 1,196 994 1,051 1,057 808 757 818 917 By type of customer: 7 U.S. Government securities dealers 885 1,360 1,267 1,053 942 921 983 859 861 681 912 861 8 U.S. Government securities brokers 1,750 3,407 3,709 3,299 4,988 3,868 5,026 4,653 3,866 3,381 3,741 3,529 9 Commercial banks 1,451 2,426 2,295 1,419 1,908 1,473 2,042 1,737 1,533 1,173 1,420 1,498 10 All others i 1,941 3,257 3,567 3,058 3,688 3,263 3,586 3,413 3,135 3,221 2,814 3,228 11 Federal agency securities.... 1,043 1,548 693 1,918 2,077 2,172 1,896 2,051 1,890 1,545 2,654 1,830 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 July Aug. Sept July 26 Aug. 2 Aug. 9 Aug. 16 Aug. 23 Aug. 30 Positions2 1111 UUUU....SSSS.... GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss........ 5,884 7,592 5,172 633 2,753 2,948 1,689 1,656 3,769 2,672 1,906 2,822 2222 BBBBiiiillllllllssss 4,297 6,290 4,772 1,260 2,330 2,824 2,120 1,960 2,387 2,272 2,211 2,360 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr 265 188 99 330 348 405 384 407 489 364 258 291 4444 1111----5555 yyyyeeeeaaaarrrrssss 886 515 60 -474 -64 -320 -229 143 281 -223 -555 60 5555 5555----11110000 yyyyeeeeaaaarrrrssss 300 402 92 -321 218 -366 -448 618 275 89 162 6666 OOOOvvvveeeerrrr 11110000 yyyyeeeeaaaarrrrssss 136 198 149 -162 -78 28 -221 -405 -5 -16 -98 -51 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss................ 943 729 693 214 656 977 154 423 550 508 562 997 Sources of financing3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 6,666 8,715 9,877 8,239 11,041 11,558 7,861 '9,170 10,834 11,596 11,006 11,176 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss:::: 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,621 1,896 1,313 38 608 997 -208 r20 761 600 733 611 11110000 OOOOuuuuttttssssiiiiddddeeee NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 1,466 1,660 1,987 1,759 2,370 2,344 1,509 1,953 2,175 2,533 2,593 2,288 11111111 CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnnssss1111 842 1,479 2,358 1,981 2,501 2,287 1,864 2,353 2,427 2,540 2,505 2,590 11112222 AAAAllllllll ooootttthhhheeeerrrrssss 2,738 3,681 4,170 4,460 5,563 5,930 4,696 4,843 5,471 5,923 5,175 5,687 * 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 Mar. Apr. May June July Aug. 1 Federal and Federally sponsored agencies 97,680 103,325 110,409 114,371 115,903 119,728 121,239 123,497 124,478 19,046 21,896 23,245 23,695 23,766 23,864 23,983 24,145 23,686 3 Defense Department1 1,220 1,113 983 954 949 935 926 916 906 4 Export-Import Bank2-3 7,188 7,801 9,156 9,416 9,416 9,416 9,455 9,455 9,455 5 Federal Housing Administration4 564 575 581 607 607 608 606 603 603 6 Government National Mortgage Association participation certificates5 4,200 4,120 3,743 3,743 3,701 3,701 3,701 3,666 3,166 7 Postal Service6 1,750 2,998 2,431 2,431 2,431 2,364 2,364 2,364 2,364 8 Tennessee Valley Authority 3,915 5,185 6,015 6,195 6,310 6,485 6,575 6,785 6,835 9 United States Railway Association6 209 104 336 349 352 355 356 356 357 10 Federally sponsored agencies 78,634 81,429 87,164 90,676 92,137 95,864 97,256 99,352 100,792 11 Federal home loan banks 18,900 16,811 18,345 20,007 20,163 22,217 22,306 23,430 24,360 12 Federal Home Loan Mortgage Corporation.. 1,550 1,690 1,686 1,768 1,639 1,637 1,937 1,937 1,937 13 Federal National Mortgage Association 29,963 30,565 31,890 33,350 34,024 35,297 36,404 36,900 37,518 14 Federal land banks 15,000 17.127 19,118 19,350 19,686 19,686 19,686 20,198 20,198 15 Federal intermediate credit banks 9,254 10,494 11,174 10,881 10,977 11,081 11,257 11,392 11,482 16 Banks for cooperatives 3,655 4,330 4,434 4,728 5,046 5,264 4,974 4,788 4,570 17 Student Loan Marketing Association7 310 410 515 590 600 680 690 705 725 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 4422,,116699 4422,,996644 4433,,887711 4444,,550044 45,550 4466,,666688 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank3 4,595 5,208 55,,883344 6,094 6,094 6,094 6,132 6,132 6,132 21 Postal Service6 1,500 2,748 2,181 2,181 2,181 2,114 2,114 2,114 2,114 22 Student Loan Marketing Association7 310 410 515 590 600 680 690 705 725 23 Tennessee Valley Authority 1,840 3,110 4,190 4,370 4,485 4,660 4,750 4,960 5,010 24 United States Railway Association6 209 104 336 349 352 355 356 356 357 Other lending:9 25 Farmers Home Administration 7,000 10.750 1166,,009955 18,050 19,120 20,090 20,910 21,580 22,275 26 Rural Electrification Administration 566 1,415 2,647 3,124 3,323 3,498 3,602 3,684 3,919 27 Other 1,134 4,966 6,782 7,411 6,809 6,380 5,950 6,019 6,136 1 Consists of mortgages assumed by the Defense Department between 7 Unlike other Federally sponsored agencies, the Student Loan 1957 and 1963 under family housing and homeowners assistance programs. Marketing Association may borrow from the Federal Financing Bank 2 Includes participation certificates reclassified as debt beginning (FFB) since its obligations are guaranteed by the Department of Health, Oct. 1, 1976. Education, and Welfare. 3 Off-budget Aug. 17,1974, through Sept. 30,1976; on-budget thereafter. 8 The FFB, which began operations in 1974, is authorized to purchase 4 Consists of debentures issued in payment of Federal Housing Ad- or sell obligations issued, sold, or guaranteed by other Federal agencies. ministration insurance claims. Once issued, these securities may be sold Since FFB incurs debt solely for the purpose of lending to other agencies, privately on the securities market. its debt is not included in the main portion of the table in order to avoid 5 Certificates of participation issued prior to fiscal 1969 by the Govern- double counting. ment National Mortgage Association acting as trustee for the Farmers 9 Includes FFB purchases of agency assets and guaranteed loans; Home Administration; Department of Health, Education, and Welfare; the latter contain loans guaranteed by numerous agencies with the Department of Housing and Urban Development; Small Business Ad- guarantees of any particular agency being generally small. The Farmers ministration; and the Veterans Administration. Home Administration item consists exclusively of agency assets, while the 6 Off-budget. Rural Electrification Administration entry contains both agency assets and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • November 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 Apr.r May r Juner July Aug.r Sept. 1 All issues, new and refunding 1 30,607 35,313 46,769 3,835 5,494 4,345 3,902 6,360 2,265 By type of issue: 2 16,020 18,040 18,042 1,374 2,222 1,984 1,062 2,157 697 3 Revenue 14,511 17,140 28,655 2,450 3,252 2,355 22,,883377 44,,119944 11,,556611 4 Housing Assistance Administration 2 5 76 133 72 11 20 6 3 9 7 By type of issuer: 6 7,438 7,054 6,354 237 884 912 650 919 84 7 Special district and statutory authority 12,441 15,304 21,717 1,879 2,220 1,452 2,161 3,086 1,551 8 Municipalities, counties, townships, school districts.... 10,660 12,845 18,623 1,709 2,370 1,973 1,087 2,348 622 29,495 32,108 36,189 2,624 3,146 3,854 3,479 3,337 2,201 By use of proceeds: 10 4,689 4,900 5,076 342 664 406 499 277 399 11 2,208 2,586 2,951 160 130 359 291 632 297 12 7,209 9,594 8,119 720 557 818 940 686 688 13 4,392 6,566 8.274 861 960 698 1,234 965 496 14 Industrial aid 445 483 4,676 273 371 412 236 332 80 15 10,552 7,979 7,093 268 464 1,161 279 445 241 1 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 Feb. Mar. April May June July 1 All issues 1 53,619 53,488 54,205 2,657 4,442 3,285 4,035 5,215 4,226 2 Bonds 42,756 42,380 42,193 2,131 3,620 2,811 2,996 3,810 3,718 By type of offering: 3 Public 32,583 26,453 24,186 1,464 1,902 1,958 1,719 1,744 2,177 4 Private placement 10,172 15,927 18,007 667 1,718 853 1,277 2,066 1,541 By industry group: 5 Manufacturing 16,980 13,264 12,510 716 1,155 534 837 1,105 675 6 Commercial and miscellaneous 2,750 4,372 5,887 87 428 421 314 562 417 7 Transportation 3,439 4,387 2,033 101 217 291 244 225 235 8 Public utility 9,658 8,297 8,261 205 631 505 885 815 768 9 Communication 3,464 2,787 3,059 9 291 35 344 326 10 Real estate and financial 6,469 9,274 10,438 898 1,027 '"lU 761 1,296 1,012 11 Stocks 10,863 11,108 12,013 822 474 1,039 1,405 508 526 By type: 12 Preferred 3,458 2,803 3,878 138 148 235 390 586 57 13 Common 7,405 8,305 8,135 388 674 239 649 819 451 By industry group: 14 Manufacturing 1,670 2,237 1,265 74 15 41 366 167 15 Commercial and miscellaneous 1,470 1,183 1,838 91 94 183 90 245 167 16 Transportation 24 418 28 20 38 40 17 Public utility 6,235 6,121 6,058 260 627 238 800 429 31 18 Communication 1,002 776 1,379 25 5 27 19 Real estate and financial 488 771 1,054 150 "28" 10 88 320 76 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 Mar. Apr. May June July Aug.r Sept. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1 4,226 6,401 613 625 558 487 474 638 519 2 Redemptions of own shares2 6,802 6,027 459 580 831 757 645 882 673 3 Net sales -2,496 357 154 45 -273 -270 -181 -244 -154 4 Assets3 47,537 45,049 44,052 46,594 46,969 46,106 47,975 49,299 48,151 5 Cash position4 2,747 3,274 4,331 4,592 4,642 4,493 4,285 3,948 3,703 6 Other 44,790 41,775 39,721 42,002 42,327 41,613 43,690 45,351 44,448 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 AAccccoouunntt 11997755 11997766 11997777 Q4 Q1 Q2 Q3 Q4 Q1 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 5 Undistributed profits 38.7 53.7 58.4 50.8 55.0 60.1 60.6 58.1 55.1 72.4 6 Capital consumption allowances 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 • November 1978 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1976 1977 1978 AAccccoouunntt 11997744 11997755 Q3 Q4 Ql Q2 Q3 Q4 Ql r Q2 1 734.6 756.3 817.4 823.1 842.0 856.4 880.3 900.1 924.2 953.6 2 Cash 73.0 80.0 79.5 86.8 80.8 83.1 83.4 94.2 88.5 90.9 3 U.S. Government securities 11.3 19.6 24.1 26.0 26.8 22.1 21.5 20.9 20.9 19.7 4 Notes and accounts receivable 265.5 272.1 297.9 292.4 304.1 312.8 326.9 325.7 338.3 356.8 5 318.9 314.7 342.2 341.4 352.1 358.8 367.5 375.0 389.7 399.1 6 Other 65.9 69.9 73.6 76.4 78.3 79.6 81.0 84.3 86.8 87.0 7 451.8 446.9 484.0 487.5 502.6 509.5 528.9 543.2 570.4 590.6 8 Notes and accounts payable 272.3 261.2 271.2 273.2 280.2 286.8 297.8 306.8 317.2 331.4 9 Other 179.5 185.7 212.8 214.2 222.4 222.7 231.1 236.3 253.2 259.2 10 Net working capital 282.8 309.5 333.4 335.6 339.5 346.9 351.4 357.0 353.8 363.0 11 MEMO: Current ratio1 1.626 1.693 1.689 1.688 1.675 1.681 1.664 1.657 1.620 1.615 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 Q3 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 44..7744 4.50 4.45 4.81 4.80 5.07 Transportation: 5 Railroad 2.82 3.28 22..7711 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 Ql 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 16 Total liabilities and capital 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 AAAuuuggg... 333111,,, 1978 1978 1978 111999777888111 June July Aug. June July Aug. June July Aug. 1 Total 57,598 560 284 716 14,994 14,688 15,417 14,434 14,404 14,701 2 Retail automotive (commercial vehicles) 13,774 400 111 247 1,314 1,073 1,222 914 962 975 3 Wholesale automotive 99,,447777 -472 103 -77 55,,770055 6,148 6,314 6,177 6,045 6,391 4 Retail paper on business, industrial, and farm equipment 15,779 283 210 295 1,194 1,324 1,225 911 1,114 930 5 Loans on commercial accounts receivable... 4,182 182 -140 -19 3,314 2,748 3,269 3,132 2,888 3,288 6 Factored commercial accounts receivable.... 2,472 104 -11 55 1,743 1,716 1,481 1,639 1,727 1,426 7 All other business credit 11,914 63 11 215 1,724 1,679 1,906 1,661 1,668 1,691 i Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • November 1978 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1978 Item 1975 1976 1977 Apr. May June July Aug. Sept. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms:1 1 Purchase price (thous. dollars) 44.6 48.4 54.3 61.6 59.8 62.6 61.9 63.6 64.7 2 Amount of loan (thous. dollars) 33.3 35.9 40.5 45.7 44.2 45.9 45.3 46.4 46.7 3 74.7 74.2 76.3 76.1 75.5 75.6 75.3 75.3 74.2 4 Maturity (years) 26.8 27.2 27.9 28.4 27.7 28.3 28.2 28.0 27.8 5 Fees and charges (per cent of loan amount)2. 1.54 1.44 1.33 1.44 1.34 1.40 1.40 1.43 1.36 6 Contract rate (per cent per annum) 8.75 8.76 8.80 9.07 9.14 9.23 9.34 9.45 9.50 Yield (per cent per annum): 7 FHLBB series 3 9.01 8.99 99..0011 9.30 9.37 9.46 9.57 9.70 9.73 8 HUD series4 9.10 8.99 8.95 9.40 9.60 9.75 9.80 9.80 9.80 SECONDARY MARKETS Yields (per cent per annum): 9 FHA mortgages (HUD series)^ 9.19 8.82 77..9966 9.37 9.67 9.92 9.78 9.78 10 8.52 8.17 8.04 8.71 8.71 9.05 9.16 8.96 8.95 FNMA auctions:7 11 9.26 8.99 8.73 9.44 9.66 9.91 10.01 9.81 9.78 12 Conventional loans 9.37 9.11 8.98 9.72 9.90 10.10 10.19 10.11 10.02 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 31,824 32,904 34,370 36,702 37,937 38,753 39,409 40,325 41,189 14 FHA-insured 19,732 18,916 18,457 18,950 19,382 19,608 19,763 20,034 20,325 15 VA-guaranteed 9,573 9,212 9,315 9,905 10,255 10,398 10,457 10,535 10,575 16 Conventional 2,519 4,776 6,597 7,847 8,300 8,747 9,189 9,752 10,289 Mortgage transactions (during period) 17 Purchases 4,263 3,606 497 937 1,551 1,148 945 1,230 1,132 18 Sales 2 86 Mortgage commitments:8 19 Contracted (during period) 6,106 6,247 1,333 2,119 3,439 1,517 927 527 882 20 Outstanding (end of period) 4,126 3,398 4,698 8,486 10,271 10,395 10,171 9,419 9,068 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered 9 7,042.6 4,929.8 1,184.5 909.3 2,117.7 1,095.0 756.7 499.1 717.9 22 Accepted 3,848.3 2,787.2 794.0 529.2 1,093.7 636.6 471.5 277.2 335.9 Conventional loans: 23 Offered 9 1,401.3 2,595.7 591.6 974.2 1,935.8 574.5 316.0 224.7 484.7 24 Accepted 765.0 1,879.2 359.4 578.1 968.3 342.0 178.9 128.5 283.7 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total. 4,987 4,269 3,276 3,092 2,878 2,255 2,024 2,448 2,486 26 FHA/VA 1,824 1,618 1,395 1,373 1,356 1,338 1,321 1,304 1,287 27 Conventional 3,163 2,651 1,881 1,719 1,522 917 702 1,144 1,199 Mortgage transactions (during period) 28 Purchases 1,716 1,175 489 356 479 500 520 742 670 29 Sales 1,020 1,396 477 466 651 1,093 725 299 594 Mortgage commitments:11 30 Contracted (during period) 982 1,477 361 512 811 762 737 838 760 31 Outstanding (end of period) 111 333 1,063 1,346 1,640 1,870 2,055 2,142 2,130 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 FN MA 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 s 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. I o Includes participations as well as whole loans. 6 Average net yields to investors on Government National Mortgage II 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 Q4 Ql Q2 Q3p 1 All holders 682,321 742,512 801,537 889,327 1,023,417 '1,052,307 1,090,234 1,128,398 2 1- to 4-family 416,211 449,371 490,761 556,557 r656,116 '675,514 701,392 727,096 3 Multifamily 93,132 99,976 100,601 104,516 rl11,804 '114,202 116,793 119,422 4 Commercial 131,725 146,877 159,298 171,223 r189,829 '194,545 201,054 208,017 5 Farm 41,253 46,288 50,877 57,031 65,668 68,046 71,004 73,863 6 Major financial institutions 505,400 542,560 581,193 647,650 '745,011 '764,614 792,762 819,264 7 Commercial banks1 119,068 132,105 136,186 151,326 178,979 184,423 193,223 202,423 8 1- to 4-family 67,998 74,758 77,018 86,234 105,115 108,699 113,886 119,308 9 Multifamily 6,932 7,619 5,915 8,082 9,215 9,387 9,816 10,283 10 Commercial 38,696 43,679 46,882 50,289 56,898 5,8,407 61,194 64,107 11 Farm 5,442 6,049 6,371 6,721 7,751 7,930 8,327 8,725 12 Mutual savings banks 73,230 74,920 77,249 81,639 88,104 89,800 91,535 93,511 13 1- to 4-family 48,811 49,213 50,025 53,089 57,637 58,747 59,882 61,175 14 Multifamily 12,343 12,923 13,792 14,177 15,304 15,398 15,900 16,243 15 Commercial 12,012 12,722 13,373 14,313 15,110 15,401 15,698 16,037 16 Farm 64 62 59 60 53 54 55 56 17 Savings and loan associations 231,733 249,301 278,590 323,130 r381,163 392,479 407,964 420,947 18 1- to 4-family 187,078 200,987 223,903 260,895 '310,686 319,910 332,532 343,114 19 Multifamily 22,779 23,808 25,547 28,436 '32,513 33,478 34,779 35,907 20 Commercial 21,876 24,506 29,140 33,799 '37,964 39,091 40,633 41,926 21 Life insurance companies 81,369 86,234 89,168 91,555 96,765 97,963 100,040 102,383 22 1- to 4-family 20,426 19,026 17,590 16,088 14,727 14,476 14,129 13,929 23 Multifamily 18,451 19,625 19,629 19,178 18,807 18,851 18,745 18,945 24 Commercial 36,496 41,256 45,196 48,864 54,388 55,426 57,463 59,309 25 Farm 5,996 6,327 6,753 7,425 8,843 9,210 9,703 10,200 26 Federal and related agencies 46,721 58,320 66,891 66,753 70,006 72,014 73,991 77,919 27 Government National Mortgage Assn. 4,029 4,846 7,438 4,241 3,660 3,291 3,283 3,523 28 1-to 4-family 1,455 2,248 4,728 1,970 1,548 948 922 989 29 Multifamily 2,574 2,598 2,710 2,271 2,112 2,343 2,361 2,534 30 Farmers Home Admin 1,366 1,432 1,109 1,064 1,353 1,179 618 668 31 1- to 4-family 743 759 208 454 626 202 124 135 32 Multifamily 29 167 215 218 275 408 102 110 33 Commercial 218 156 190 72 149 218 104 112 34 Farm 376 350 496 320 303 351 288 311 35 Federal Housing and Veterans Admin. 3,476 4,015 4,970 5,150 5,212 5,219 5,225 5,295 36 1- to 4-family 2,013 2,009 1,990 1,676 1,627 1,585 1,543 1,565 37 Multifamily 1,463 2,006 2,980 3,474 3,585 3,634 3,682 3,730 38 Federal National Mortgage Assn... . 24,175 29,578 31,824 32,904 34,369 36,029 38,753 41,189 39 1- to 4-family 20,370 23,778 25,813 26,934 28,504 30,208 32,974 35,437 40 Multifamily 3,805 5,800 6,011 5,970 5,865 5,821 5,779 5,752 41 Federal land banks 11,071 13,863 16,563 19,125 22,136 22,925 23,857 24,758 42 1- to 4-family 123 406 549 601 670 691 727 819 43 Farm 10,948 13,457 16,014 18,524 21,466 22,234 23,130 23,939 44 Federal Home Loan Mortgage Corp.. 2,604 4,586 4,987 4,269 3,276 3,371 2,255 2,486 45 1- to 4-family 2,446 4,217 4,588 3,889 2,738 2,785 1,856 1,994 46 Multifamily 158 369 399 380 538 586 399 492 47 Mortgage pools or trusts2 18,040 23,799 34,138 49,801 70,289 74,080 78,602 82,325 48 Government National Mortgage Assn. 7,890 11,769 18,257 30,572 44,896 46,357 48,032 50,844 49 1- to 4-family 7,561 11,249 17,538 29,583 43,555 44,906 46,515 49,276 50 Multifamily 329 520 719 989 1,341 1,451 1,517 1,568 51 Federal Home Loan Mortgage Corp. 766 757 1,598 2,671 6,610 7,471 9,423 9,934 52 1- to 4-family 617 608 1,349 2,282 5,621 6,286 7,797 8,358 53 Multifamily 149 149 249 389 989 1,185 1,626 1,576 54 Farmers Home Admin 9,384 11,273 14,283 16,558 18,783 20,252 21,147 21,547 55 1- to 4-family 5,458 6,782 9,194 10,219 11,379 12,235 12,742 12,943 56 Multifamily 138 116 295 532 759 732 1,128 1,154 57 Commercial 1,124 1,473 1,948 2,440 2,945 3,528 3,301 3,380 58 Farm 2,664 2,902 2,846 3,367 3,682 3,757 3,976 4,070 59 Individuals and others3 112,160 117,833 119,315 125,123 138,111 141,599 144,888 148,890 60 1- to 4-family 51 ,112 53,331 56,268 62,643 71,665 73,878 75,763 78,054 61 Multifamily 23,982 24,276 22,140 20,420 20,501 20,732 20,939 21,128 62 Commercial 21,303 23,085 22,569 21,446 22,375 22,479 22,661 23,146 63 Farm 15,763 17,141 18,338 20,614 23,570 24,510 25,525 26,562 1 Includes loans held by nondeposit trust companies but not bank trust NOTE.—Based on data from various institutional and Govt, sources, departments. with some quarters estimated in part by Federal Reserve in conjunction 2 Outstanding principal balances of mortgages backing securities in- with the Federal Home Loan Bank Board and the Dept. of Commerce. sured or guaranteed by the agency indicated. Separation of nonfarm mortgage debt by type of property, if not re- 3 Other holders include mortgage companies, real estate investment, ported directly, and interpolations and extrapolations where required, are trusts, State and local credit agencies, State and local retirement funds, estimated mainly by Federal Reserve. Multifamily debt refers to loans on noninsured pension funds, credit unions, and U.S. agencies for which structures of 5 or more units. amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • November 1978 1.55 CONSUMER INSTALMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1978 Holder, and type of credit 1975 1976 1977 Mar. Apr. May June July Aug. Sept. Amounts outstanding (end of period) 1 Total 164,955 185,489 216,572 219,203 222,131 227,561 233,416 237,197 242,538 246,056 By holder: 2 Commercial banks 78,667 89,511 105,291 107,166 109,336 111,673 114,756 117,110 119,889 121,519 3 Finance companies 35,994 38,639 44,015 44,486 45,182 46,136 47,147 47,967 48,982 49,673 4 Credit unions 25,666 30,546 37,036 38,185 38,750 39,951 41,388 41,802 42,931 43,747 5 Retailers1 18,002 19,052 21,082 19,920 19,941 20,141 20,310 20,432 20,655 20,872 6 Others2 6,626 7,741 9,149 9,446 9,528 9,660 9,815 9,886 10,081 10,245 By type of credit: 7 Automobile 55,879 66,116 79,352 81,666 83,490 85,954 88,767 90,671 92,956 94,268 8 Commercial banks 31,553 37,984 46,119 47,534 48,731 50,119 51,714 52,938 54,224 54,803 9 Indirect 18,353 21,176 25,370 26,327 27,049 27,854 28,773 29,496 30,202 30,566 10 Direct 13,200 16,808 20,749 21,207 21,682 22,265 22,941 23,442 24,022 24,237 11 Finance companies 11,155 12,489 14,263 14,577 14,921 15,382 15,863 16,327 16,753 17,069 12 Credit unions 12,741 15,163 18,385 18,955 19,239 19,835 20,549 20,754 21,314 21,719 13 Others 430 480 585 600 599 618 641 652 665 677 14 Mobile homes 14,423 14,572 15,014 15,062 15,156 15,220 15,309 15,438 15,577 15,690 15 Commercial banks 8,649 8,734 8,862 8,845 8,876 8,912 8,967 9,061 9,117 9,169 16 Finance companies 3,451 3,273 3,109 3,085 3,095 3,098 3,103 3,123 3,139 3,152 17 Home improvement 9,405 10,990 12,952 13,162 13,375 13,691 14,037 14,260 14,633 14,905 18 Commercial banks 4,965 5,554 6,473 6,479 6,598 6,782 6,971 7,129 7,331 7,472 Revolving credit: 19 Bank credit cards 9,501 11,351 14,262 14,142 14,345 14,456 14,929 15,288 15,857 16,371 20 Bank check credit 2,810 3,041 3,724 3,844 3,856 3,919 3,996 4,043 4,178 4,241 21 All other 72,937 79,418 91,269 91,327 92,515 94,321 96,378 97,497 99,337 100,581 22 Commercial banks, total, 21,188 22,847 25,850 26,322 26,930 27,485 28,179 28,651 29,182 29,463 23 Personal loans 14,629 15,669 17,740 18,002 18,383 18,640 19,049 19,301 19,655 19.871 24 Finance companies, total 21,238 22,749 26,498 26,675 27,012 27,496 28,012 28,336 28,898 29,249 25 Personal loans 17,263 18,554 21,302 21,416 21,700 22,110 22.547 22,906 23,344 23,569 26 Credit unions 10,754 12,799 15,518 15,999 16,232 16,735 17,337 17,511 17,984 18,326 27 Retailers 18,002 19,052 21,082 19,920 19,941 20,141 20,310 20,432 20,655 20.872 28 Others 1,755 1,971 2,321 2,411 2,400 2,464 2,540 2,567 2,618 2,671 Net change (during period)3 29 Total 7,504 20,533 31,090 4,068 3,719 3,857 3,792 3,301 2,986 3,278 By holder: 30 Commercial banks 2,821 10,845 15,779 2,021 2,001 1,881 1,960 1,915 1,645 1,446 31 Finance companies -90 2,644 5,376 662 781 763 553 605 607 877 32 Credit unions 3,771 4,880 6,490 836 699 911 836 369 508 728 33 Retailers i 69 1,050 2,032 367 129 170 282 364 45 75 34 Others 2 933 1,115 1,413 182 109 132 161 48 181 152 By type of credit: 35 Automobile 3,007 10,238 13,235 1,522 1,728 1,789 1,543 1,520 1,446 1,439 36 Commercial banks 559 6,431 8,135 882 989 944 946 937 894 698 37 Indirect -334 2,823 4,194 564 603 575 554 553 464 432 38 Direct 894 3,608 3,941 318 386 369 392 384 430 266 39 Finance companies 532 1,334 1,774 238 375 367 199 371 260 348 40 Credit unions 1,872 2,422 3,222 406 343 465 383 206 261 372 41 Other 44 50 105 -4 21 13 15 6 31 21 42 Mobile homes -195 150 441 108 95 58 15 104 87 78 43 Commercial banks -323 85 128 46 28 33 -1 19 26 32 44 Finance companies -73 -111 -164 2 -3 -7 14 7 2 45 Home improvement 881 1,585 1,967 217 212 222 209 156 229 234 46 Commercial banks 271 588 920 74 111 109 95 101 123 110 Revolving credit: 47 Bank credit cards 1,220 1,850 2,911 448 311 263 362 398 280 349 48 Bank check credit 14 231 683 120 56 129 90 27 44 0 49 All other 2,577 6,479 11,853 1,653 1,317 1,396 1,573 1,096 900 1,178 50 Commercial banks, total. 1,080 1,659 3,003 451 506 403 468 373 278 257 51 Personal loans 858 1,040 2,070 263 333 207 303 220 154 181 52 Finance companies, total, -348 1,509 3,749 419 387 395 358 210 329 513 53 Personal loans 279 1,290 2,748 309 307 327 301 238 236 372 54 Credit unions 1,580 2,045 2,719 358 301 371 383 133 212 289 55 Retailers 69 1,050 2,032 367 129 170 282 364 45 75 56 Others 196 217 350 58 -6 57 82 16 36 44 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 Mar. Apr. May June July Aug. Sept. Extensions 3 1 Total 164,169 193,328 225,645 21,595 22,117 22,336 22,680 22,332 22,632 22,514 By holder: 2 Commercial banks 77,312 94,220 110,777 10,608 11,120 11,004 11,329 11,315 11,474 11,176 3 Finance companies 31,173 36,028 41,770 3,914 4,226 4,241 4,113 4,078 4,214 4,281 4 Credit unions 24,096 28,587 33,592 3,309 3,267 3,508 3,433 3,128 3,271 3,388 5 Retailers1 27,049 29,188 33,202 3,148 2,955 2,995 3,185 3,300 2,995 3,058 6 Others2 4,539 5,305 6,303 616 549 588 620 511 678 611 By type of credit: 7 Automobile 51,413 62,988 72,888 6,822 7,248 7,387 7,241 7,156 7,399 7,129 8 Commercial banks 28,573 36,585 42,570 3,924 4,212 4,189 4,178 4,267 4,349 4,059 9 Indirect 15,766 19,882 22,904 2,173 2,347 2,327 2,305 2,329 2,370 2,274 10 Direct 12,807 16,704 19,666 1,751 1,865 1,862 1,873 1,938 1,979 1,785 11 Finance companies 9,674 11,209 12,635 1,173 1,314 1,337 1,278 1,208 1,324 1,279 12 Credit unions 12,683 14,675 17,041 1,679 1,654 1,798 1,721 1,624 1,644 1,720 13 Others 483 518 642 46 68 63 64 57 82 71 14 Mobile homes 4,323 4,841 5,244 502 508 490 460 5/7 546 489 15 Commercial banks 2,622 3,071 3,153 284 279 294 271 334 310 285 16 Finance companies 764 690 651 74 85 74 69 81 78 72 17 Home improvement 5,556 6,736 8,066 770 753 798 801 736 850 817 18 Commercial banks 2,722 3,245 3,968 352 382 395 390 390 429 399 Revolving credit: 19 Bank credit cards 20,428 25,862 31,761 3,231 3,255 3,245 3,482 3,466 3,499 3,603 20 Bank check credit 4,024 4,783 5,886 608 646 677 694 599 625 640 21 All other 78,425 88,117 101,801 9,662 9,707 9,739 10,002 9,858 9,713 9,836 22 Commercial banks, total. 18,944 20,673 23,439 2,209 2,346 2,204 2,314 2,259 2,262 2,190 23 Personal loans 13,386 14,480 16,828 1,537 1,669 1,511 1,614 1,574 1,587 1,555 24 Finance companies, total, 20,657 24,087 28,396 2,659 2,814 2,819 2,755 2,773 2,793 2,906 25 Personal loans 16,944 19,579 22,348 2,105 2,226 2,273 2,231 2,211 2,194 2,278 26 Credit unions 10,134 12,340 14,604 1,429 1,431 1,500 1,501 1,335 1,444 1,462 27 Retailers 27,049 29,188 33,202 3,148 2,955 2,995 3,185 3,300 2,995 3,058 28 Others 1,642 1,830 2,160 217 161 221 247 191 219 220 Liquidations3 29 Total 156,665 172,795 194,555 17,527 18,398 18,479 18,888 19,031 19,646 19,236 By holder: 30 Commercial banks 74,491 83,376 94,998 8,587 9,119 9,123 9,369 9,400 9,829 9,730 31 Finance companies 31,263 33,384 36,394 3,252 3,445 3,478 3,560 3,473 3,607 3,404 32 Credit unions 20,325 23,707 27,103 2,473 2,568 2,597 2,597 2,759 2,763 2,660 33 Retailers1 26,980 28,138 31,170 2,781 2,826 2,825 2,903 2,936 2,950 2,983 34 Others2 3,606 4,191 4,890 434 440 456 459 463 497 459 By type of credit: 35 Automobile 48,406 52,750 59,652 5,300 5,520 5,598 5,698 5,636 5,953 5,690 36 Commercial banks 28,014 30,154 34,435 3,042 3,223 3,245 3,232 3,330 3,455 3,361 37 Indirect 16,101 17,059 18,710 1,609 1,744 1,752 1,751 1,776 1,906 1,842 38 Direct 11,913 13,095 15,726 1,433 1,479 1,493 1,481 1,554 1,549 1,519 39 Finance companies 9,142 9,875 10,819 935 939 970 1,079 837 1,064 931 40 Credit unions 10,811 12,253 13,819 1,273 1,311 1,333 1,338 1,418 1,383 1,348 41 Others 439 468 536 50 47 50 49 51 51 50 42 Mobile homes 4,517 4,691 4,802 394 413 432 445 413 459 411 43 Commercial banks 2,944 2,986 3,025 238 251 261 272 255 284 253 44 Finance companies 837 867 806 72 74 77 76 67 71 70 45 Home improvement 4,675 5,151 6.098 553 541 576 592 580 621 583 46 Commercial banks 2,451 2,657 3,048 278 271 286 295 289 306 289 Revolving credit: 47 Bank credit cards. 19,208 24,012 28,851 2,783 2,944 2,982 3,120 3,068 3,219 3,254 48 Bank check credit 4,010 4,552 5,202 488 590 548 604 572 581 640 49 All other 75,849 81,638 89,948 8,009 8,390 8,343 8,429 8,762 8,813 8,658 50 Commercial banks, total, 17,864 19,014 20,436 1,758 1,840 1,801 1,846 1,886 1,984 1,933 51 Personal loans 12,528 13,439 14,757 1,274 1,336 1,304 1,311 1,354 1,433 1,374 52 Finance companies, total 21,005 22,578 24,647 2,240 2,427 2,424 2,397 2,563 2,464 2,393 53 Personal loans 16,665 18,289 19,600 1,796 1,919 1,946 1,930 1,973 1,958 1,906 54 Credit unions 8,554 10,295 11,884 1,071 1,130 1,129 1,118 1,202 1,232 1,173 55 Retailers 26,980 28,138 31,170 2,781 2,826 2,825 2,903 2,936 2,950 2,983 56 Others 1,446 1,613 1,811 159 167 164 165 175 183 176 i Excludes 30-day charge credit held by retailers, oil and gas companies, 2 Mutual savings banks, savings and loan associations, and auto dealers. and travel and entertainment companies. 3 Monthly figures are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • November 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 1 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 67.4 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 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 27.1 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 1.3 * ..22 .3 --11..33 1 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 33tO 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 l.( 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 IX 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 1 .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 27.4 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 off unds 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 20.1 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 7". 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 • November 1978 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1978 Measure 1975 1976 1977 Mar. Apr. May June July Aug.r Sept.r 1 Industrial production 117.8 129.8 137.0 140.9 143.2 143.9 144.9 146.1 147.0 147.7 Market groupings: 2 Products, total 119.3 129.3 137.1 141.6 143.0 143.1 144.0 145.0 146.0 146.4 3 Final, total 118.2 127.2 134.9 138.9 140.5 140.5 141.1 142.2 143.2 143.7 4 Consumer goods 124.0 136.2 143.4 145.9 147.5 147.0 147.0 147.7 148.4 148.8 5 Equipment 110.2 114.6 123.2 129.1 130.8 131.6 133.0 134.7 136.0 136.7 6 Intermediate 123.1 137.2 145.1 151.4 152.1 152.6 154.7 155.6 155.9 156.5 7 Materials 115.5 130.6 136.9 139.9 143.7 145.1 146.4 147.9 148.7 149.6 Industry groupings: 8 Manufacturing 116.3 129.5 137.1 141.4 143.5 144.3 145.5 146.7 147.6 148.3 Capacity utilization (per cent)1 9 Manufacturing 73.6 80.2 82.4 82.7 83.7 83.9 84.3 84.7 85.0 85. 10 Industrial materials industries 73.6 80.4 81.9 81.9 84.0 84.5 85.1 85.7 86.0 86.3 11 Construction contracts2 162.3 190.2 253.0 254.0 279.0 332.0 249.0 286.0 289.0 300.0 12 Nonagricultural employment, total3 117.0 120.7 125.0 128.8 129.8 130.1 130.7 130.8 130.9 131.0 13 Goods-producing, total 97.0 100.4 104.2 106.9 108.6 108.7 109.3 109.4 109.2 109.2 14 Manufacturing, total 94.2 97.7 101.0 104.0 104.3 104.4 104.5 104.4 104.3 104.3 15 Manufacturing, production-worker 91.2 95.3 98.6 101.8 102.0 102.1 102.0 101.8 101.6 101.6 16 Service-producing 127.9 131.9 136.4 140.8 141.5 141.9 142.5 142.5 142.8 142.9 17 Personal income, total4 200.4 220.4 244.0 262.7 266.4 268.4 270.6 274.3 275.7 277.0 18 Wages and salary disbursements 188.5 208.2 230.1 249.5 253.5 254.6 256.9 259.2 259.7 260.7 19 Manufacturing 157.3 177.1 198.6 218.0 219.5 222.3 224.9 224.5 226.0 220.7 20 Disposable personal income 199.6 217.5 239.3 267.0 265.5 21 Retail sales 5 184.6 203.5 224.4 239.5 244.8 246.3 244.9 251.7 253.1 245.4 Prices:6 22 Consumer 7 161.2 170.5 181.6 189.8 191.5 193.3 195.3 196.7 197.8 199.3 23 Producer finished goods8 163.4 170.3 180.6 189.1 191.5 193.1 194.5 195.9 195.3 196.9 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 Classifica- 8 Beginning with the November 1978 BULLETIN, producer price data tion (SIC) Manual and to reflect employment benchmark levels for in this table have been changed to the BLS series for producer finished March 1977. In addition, seasonal factors for these data have been goods. The previous data were producer prices for all commodities. revised, based on experience through May 1978. Based on data in Employment and Earnings (U.S. Dept. of Labor). Series covers employees NOTE.—Basic data (not index numbers) for series mentioned in notes only, excluding personnel in the Armed Forces. 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be 4 Based on data in Survey of Current Business U.S. Dept. of Com- found in the Survey of Current Business (U.S. Dept. of Commerce). merce). Series for disposable income is quarterly. Figures for industrial production for the last 2 months are preliminary and estimated, respectively. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1977 1978 1977 1978 1977 1978 SSeerriieess Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3' Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing 139.9 139.8 144.4 147.5 168.7 170.3 172.0 173.7 82.9 82.1 84.0 84.9 2 Primary processing 148.2 148.2 154.1 157.7 175.1 176.8 178.5 180.2 84.6 83.8 86.3 87.5 3 Advanced processing 135.6 135.4 139.3 142.1 165.3 166.9 168.5 170.2 82.0 81.1 82.7 83.5 138.9 139.2 145.1 148.7 168.9 170.4 171.7 173.0 82.2 81.7 84.5 86.0 5 137.7 137.9 144.0 150.2 172.8 174.0 175.2 176.3 79.6 79.3 82.2 85.2 6 Basic metal 109.4 110.5 117.5 124.2 145.5 145.8 146.1 146.5 75.2 75.8 80.4 84.8 7 155.0 158.0 163.2 163.0 180.4 182.3 184.4 186.5 85.9 86.7 88.5 87.4 8 Textile, paper, and chemical 159.5 163.1 167.7 168.0 188.9 190.8 193.1 195.4 84.5 85.5 86.8 86.0 9 Textile 117.9 115.3 117.1 116.8 143.0 143.5 144.1 144.7 82.4 80.3 81.2 80.7 10 Paper 132.3 136.5 139.7 135.0 152.5 153.6 154.8 155.8 86.7 88.9 90.3 86.7 11 188.9 194.9 201.4 203.8 223.6 226.6 230.1 233.5 85.4 86.0 87.5 87.3 12 Energy 121.9 119.1 125.5 127.5 145.7 147.2 147.8 148.4 83.7 80.9 84.9 85.9 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 Apr. May June July Aug. Sept. Oct. Household survey data 1111 NNNNoooonnnniiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnaaaallll ppppooooppppuuuullllaaaattttiiiioooonnnn1111 153,449 156,048 158,559 160,504 160,713 160,928 161,148 161,348 161,570 161,829 2222 LLLLaaaabbbboooorrrr ffffoooorrrrcccceeee ((((iiiinnnncccclllluuuuddddiiiinnnngggg AAAArrrrmmmmeeeedddd FFFFoooorrrrcccceeeessss))))1111 94,793 96,917 99,534 101,902 102,374 102,671 102,734 102,671 102,993 103,184 3333 CCCCiiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 92,613 94,773 97,401 99,784 100,261 100,573 100,618 100,549 100,870 101,062 EEEEmmmmppppllllooooyyyymmmmeeeennnntttt:::: 4444 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll iiiinnnndddduuuussssttttrrrriiiieeeessss2222 81,403 84,188 87,302 90,526 90,877 91,346 91,038 91,221 91,457 91,812 5555 AAAAggggrrrriiiiccccuuuullllttttuuuurrrreeee 3,380 3,297 3,244 3,275 3,235 3,473 3,387 3,360 3,411 3,380 UUUUnnnneeeemmmmppppllllooooyyyymmmmeeeennnntttt:::: 6666 NNNNuuuummmmbbbbeeeerrrr 7,830 7,288 6,855 5,983 6,149 5,754 6,193 5,968 6,002 5,870 7777 RRRRaaaatttteeee ((((ppppeeeerrrr cccceeeennnntttt ooooffff cccciiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee)))) 8.5 7.7 7.0 6.0 6.1 5.7 6.2 5.9 6.0 5.8 8888 NNNNooootttt iiiinnnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 58,655 59,130 59,025 58,602 58,340 58,257 58,414 58,677 58,577 58,645 Establishment survey data4 9999 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll ppppaaaayyyyrrrroooollllllll eeeemmmmppppllllooooyyyymmmmeeeennnntttt3333 76,945 79,382 82,256 85,418 85,618 85,996 86,033 r86,149 r86,167 P86,597 11110000 MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 18,323 18,997 19,647 20,282 20,297 20,316 20,302 r20,278 r20,279 2*20,419 11111111 MMMMiiiinnnniiiinnnngggg 751 779 809 867 869 879 882 r887 r891 p897 11112222 CCCCoooonnnnttttrrrraaaacccctttt ccccoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn 3,529 3,576 3,827 4,164 4,175 4,278 4,317 r4,298 r4,285 p4,344 11113333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn aaaannnndddd ppppuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttiiiieeeessss.... 4,542 4,582 4,695 4,847 4,847 4,881 4,827 r4,846 r4,855 p4,907 11114444 TTTTrrrraaaaddddeeee 17,053 17,754 18,487 19,252 19,335 19,412 19,469 '"19,523 '•19,539 p19,638 11115555 FFFFiiiinnnnaaaannnncccceeee 4,165 4,271 4,452 4,623 4,637 4,670 4,690 r4,707 r4,721 p4,737 11116666 SSSSeeeerrrrvvvviiiicccceeee 13,892 14,552 15,247 15,866 15,896 15,963 15,989 r16,074 r16,143 pl6,197 11117777 GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 14,683 14,869 15,078 15,517 15,562 15,597 15,557 ••15,536 r15,454 *15,458 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 • November 1978 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1977 1978 Grouping pro- 1977 por- avertion age Aug. Sept. Oct. Mar. Apr. May June July aug. Sept.? Oct.e Index (1967 == 100) MAJOR MARKET 1 Total index 100.00 137.1 138.1 138.5 138.9 140.9 143.2 143.9 144.9 146.1 147.0 147.7 148.4 2 Products 60.71 137.1 138.4 138.8 138.9 141 6 143.0 143.1 144.0 145.0 146.0 146.4 147.3 3 Final products 47.82 134.9 136.3 136.8 136.5 138.9 140.5 140.5 141.1 142.2 143.2 143 7 144.8 4 Consumer goods 27.68 143.4 144.7 144.9 144.9 145.9 147.5 147.0 147.0 147.7 148.4 148.8 150.2 5 Equipment 20.14 123.2 124.9 125.6 125.0 129.1 130.8 131.6 133.0 134.7 136.0 136.7 137.5 6 Intermediate products 12.89 145.1 146.1 146.5 147.8 151.4 152.1 152.6 154.7 155.6 155.9 156.5 156.8 7 Materials 39.29 136.9 137.6 137.9 138.9 139.9 143.7 145.1 146.4 147.9 148.7 149.6 150.2 Consumer goods 8 Durable consumer goods 7.89 153.1 154.7 155.6 156.8 157.5 161.8 160.2 160.6 160.9 161.1 160.3 163.7 9 Automotive products 2.83 174.2 177.2 177.0 179.4 175.8 184.3 180.0 179.9 182.2 182.1 178.0 187.0 10 Autos and utility vehicles 2.03 169.2 173.1 172.6 176.1 171.0 182.7 175.6 173.4 176.7 175.6 170.2 182.7 11 Autos 1.90 148.4 150.9 151.6 154.3 149.7 159.1 151.6 149.8 152.7 151.1 144.4 155.0 12 Auto parts and allied goods .80 186.8 187.3 188.1 187.6 188.5 188.2 191.5 193.9 196.1 198.0 197.9 197.5 13 Home goods 5.06 141.3 142.1 143.6 144.2 147.2 149.2 148.9 149.7 148.9 149.5 150.3 150.8 14 Appliances, A/C, and TV 1.40 127.3 129.6 129.4 128.6 135.4 142.2 138.3 139.0 133.7 133.9 134.4 134.5 15 Appliances and TV 1.33 130.5 133.0 134.1 131.6 137.9 144.7 140.7 141.0 136.8 135.6 136.9 16 Carpeting and furniture 1.07 152.2 154.8 159.0 160.5 159.3 158.9 163.4 166.0 168.5 168.2 169.9 17 Miscellaneous home goods 2.59 144.3 143.6 144.9 145.8 148.7 149.0 148.8 148.8 149.1 150.1 150.9 151.4 18 Nondurable consumer goods 19.79 139.6 140.6 140.7 140.1 141.3 141.8 141.7 141.6 142.4 143.2 144.3 144.7 19 Clothing 4.29 125.2 126.4 128.3 128.0 122.4 124.9 125.4 124.8 125.1 126.6 20 Consumer staples 15.50 143.6 144.6 144.1 143.5 146.4 146.6 146.2 146.3 147.3 147.9 uk'.i 149!i 21 Consumer foods and tobacco 8.33 135.5 137.9 137.1 135.2 138.7 140.8 139.9 139.0 140.2 140.7 141.4 22 Nonfood staples 7.17 152.9 152.4 152.4 153.4 155.3 153.3 153.4 154.8 155.5 156.2 157.3 157.7 23 Consumer chemical products 2.63 180.5 181.8 182.5 183.7 182.1 182.5 182.0 185.5 186.7 188.0 188.4 24 Consumer paper products 1.92 117.1 117.0 116.4 117.6 118.9 117.7 117.9 118.0 117.5 117.5 119.9 25 Consumer energy products 2.62 151.4 148.9 148.6 149.1 155.0 149.9 150.7 150.8 151.9 152.5 153.7 26 Residential utilities 1.45 159.0 156.1 153.8 155.8 166.9 159.0 157.2 159.0 159.9 Equipment 27 Business equipment 12.63 149.2 151.1 152.1 152.6 157.4 159.3 160.2 161.8 163.8 165.4 166.1 166.8 28 Industrial equipment 6.77 138.5 140.4 141.4 141.8 146.9 147.8 149.7 150.9 151.9 152.9 153.2 153.6 29 Building and mining equipment.... 1.44 202.5 203.9 204.5 205.7 221.7 225.1 226.0 227.3 228.9 228.6 227.6 227.6 30 Manufacturing equipment 3.85 113.9 115.3 117.6 118.5 118.3 119.0 121.3 122.8 122.6 123.9 124.2 124.9 31 Power equipment 1.47 140.2 143.7 141.4 139.8 148.8 147.3 149.2 149.2 152.8 154.6 155.8 156.2 32 Commercial transit, farm equipment.. 5.86 161.6 163.4 164.4 165.1 169.4 172.6 172.3 174.4 177.5 179.8 181.1 182.0 33 Commercial equipment 3.26 191.6 193.0 193.7 195.4 202.0 203.8 204.2 206.9 210.6 212.2 213.9 214.7 34 Transit equipment 1.93 117.8 121.9 125.1 123.3 126.1 133.7 132.2 132.3 134.9 138.5 139.7 140.5 35 Farm equipment .67 142.3 139.2 134.9 142.1 137.0 132.9 131.9 137.3 138.5 140.3 141.4 36 Defense and space equipment 7.51 79.6 80.8 80.9 78.9 81.9 82.9 83.6 84.6 85.9 86.5 87.5 88.1 Intermediate products 37 Construction supplies 6.42 140.8 141.7 143.2 144.9 147.9 148.5 150.4 152.1 153.5 154.2 155.3 155.4 38 Business supplies 6.47 149.5 150.6 149.7 150.5 155.0 155.6 155.0 157.0 157.6 157.6 157.8 39 Commercial energy products 1.14 164.6 165.0 162.7 163.0 164.3 163.5 162.7 163.0 164.1 165.1 166.5 Materials 40 Durable goods materials 20.35 134.5 135.4 135.7 137.1 138.6 142.7 143.9 145.4 148.7 150.3 151.7 152.3 41 Durable consumer parts 4.58 132.0 135.2 135.8 135.4 133.1 136.8 137.9 138.7 142.0 142.2 144.3 145.0 42 Equipment parts 5.44 143.1 145.6 146.8 147.6 151.3 154.8 155.8 157.4 161.7 162.9 164.0 164.8 43 Durable materials n.e.c 10.34 131.1 130.1 129.8 132.4 134.5 138.9 140.3 141.8 144.7 147.2 148.4 149.0 44 Basic metal materials 5.57 110.9 108.7 106.8 110.0 110.4 116.7 117.5 118.2 121.7 124.9 126.0 45 Nondurable goods materials 10.47 153.5 155.1 153.9 154.4 160.5 162.0 163.5 164.1 162.5 162.5 163.9 163.7 46 Textile, paper, and chemical materials 7.62 158.3 159.6 159.0 160.0 165.7 166.4 167.9 168.8 168.3 166.8 169.0 168.9 47 Textile materials 1.85 113.0 112.2 114.5 118.5 115.1 116.5 116.7 118.0 117.1 115.9 117.4 48 Paper materials 1.62 133.5 135.7 135.2 134.4 137.8 139.2 140.1 139.9 135.1 131.5 138.5 49 Chemical materials 4.15 188.2 190.1 188.2 188.5 199.2 199.5 201.7 202.9 204.0 203.4 203.9 50 Containers, nondurable 1.70 150.9 156.2 151.2 148.9 158.1 160.5 161.9 162.8 155.4 161.7 161.3 51 Nondurable materials n.e.c 1.14 125.3 122.4 124.1 125.4 129.3 134.6 135.8 135.0 135.7 134.6 133.7 52 Energy materials 8.48 122.4 121.4 123.5 124.0 117.5 123.9 125.2 127.5 127.9 127.7 127.0 129.0 53 Primary energy 4.65 107.3 106.8 110.0 112.2 104.5 115.5 114.4 116.1 116.7 116.1 112.7 54 Converted fuel materials 3.82 140.7 139.1 140.0 138.4 133.3 134.1 138.6 141.4 141.6 141.9 144.2 Supplementary groups 55 Home goods and clothing 9.35 133.9 134.9 136.5 136.8 135.9 138.0 138.2 138.3 138.0 139.0 140.2 140.8 56 Energy, total 12.23 132.5 131.4 132.5 133.0 129.8 133.1 134.2 135.9 136.4 136.5 136.4 137.9 57 Products 3.76 155.4 153.7 153.0 153.3 157.9 154.1 154.3 154.6 155.6 156.2 157.5 58 Materials 8.48 122.4 121.4 123.5 124.0 117.5 123.9 125.2 127.5 127.9 127.7 127.0 i29.0 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 Aug. Sept. Oct. Mar. Apr. May June July Aug. Sept.f Oct.* Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities., 12.05 136.2 134.4 135.1 135.8 138.2 140.9 140.9 142.5 142.6 142.5 142.1 143.8 2 Mining 6.36 117.8 115.4 118.0 119.6 119.3 127.2 126.7 128.0 127.1 126.2 124.6 127.9 3 Utilities 5.69 156.5 155.7 154.1 154.0 159.5 156.0 157.0 158.6 159.9 160.6 161.4 161.7 4 Electric 3.88 175.5 175.4 173.7 173.6 178.8 175.0 177.1 180.1 182.1 5 Manufacturing., 87.95 137.1 138.6 139.0 139.4 141.4 143.5 144.3 145.5 146.7 147.6 148.3 149.1 6 Nondurable.. 35.97 148.1 149.4 149.5 149.6 151.4 153.2 154.0 154.9 155.0 155.6 156.4 156.6 7 Durable 51.98 129.5 131.3 131.7 132.4 134.4 136.9 137.6 139.0 141.1 142.1 142.7 143.9 Mining 8 Metal mining 10 .51 105.4 70.0 71.4 80.0 127.6 122.3 120.0 121.1 117.0 117.9 117.0 9 Coal 11, 12 .69 118.0 113.6 133.0 141.4 78.4 129.5 131.7 136.4 131.7 124.9 114.7 145.5 10 Oil and gas extraction 13 4.40 118.0 119.3 119.6 119.4 123.3 127.3 126.3 127.1 126.8 126.5 125.6 125.3 11 Stone and earth minerals. 14 .75 124.9 125.0 126.7 128.1 128.2 128.9 130.1 130.7 131.3 131.6 132.8 Nondurable manufactures 12 Foods 8.75 137.9 139.3 138.3 137.3 141.1 143.1 142.8 141.8 142.9 143.8 144.0 13 Tobacco products .67 114.3 117.0 113.5 113.8 115.6 121.0 120.2 122.7 120.8 118.6 14 Textile mill products... 2.68 137.1 136.6 140.7 142.4 135.1 138.1 138.5 140.4 141.0 139.4 141.2 15 Apparel products 3.31 124.2 124.1 127.7 129.0 122.8 126.1 125.8 126.8 124.5 127.6 16 Paper and products 3.21 137.4 140.3 139.1 137.9 144.9 145.7 146.6 148.0 140.5 141.4 143.9 144.3 17 Printing and publishing 4.72 124.9 125.0 124.2 125.7 129.1 128.6 128.2 128.7 130.3 129.8 130.3 130.3 18 Chemicals and products... 7.74 180.7 182.6 181.3 182.3 185.2 185.5 188.1 191.1 192.3 192.1 192.4 19 Petroleum products 1.79 141.0 139.9 141.9 141.4 140.1 141.7 143.4 142.8 144.3 145.7 146.9 i46.8 20 Rubber & plastic products. 2 232.2 237.4 239.5 236.3 243.1 249.1 252.7 255.5 259.1 260.6 261.8 21 Leather and products .86 75.3 74.5 74.0 77.0 72.1 76.0 75.7 75.1 74.5 74.0 73.3 Durable manufactures 22 Ordnance, private & government. 19,91 3.64 73.9 75.5 75.1 74.4 72.7 73.0 74.3 74.7 75.2 76.4 76.1 76.6 23 Lumber and products 24 1.64 133.4 131.8 137.1 135.7 136.5 136.9 136.5 138.7 138.1 136.9 138.7 24 Furniture and fixtures 25 1.37 140.9 142.9 145.6 146.6 149.5 148.9 152.8 156.2 158.1 159.5 161.6 25 Clay, glass, stone products 32 2.74 146.1 148.8 145.5 148.0 154.2 156.7 157.9 159.8 158.8 160.2 161.6 26 Primary metals 33 6.57 110.2 112.5 109.0 113.5 106.1 114.3 115.5 117.5 123.0 124.9 125.9 126.5 27 Iron and steel 331, 2 4.21 103.4 110.6 104.6 107.7 96.4 109.0 110.5 114.5 119.0 120.2 121.8 28 Fabricated metal products. 34 5.93 130.9 134.0 133.6 133.8 138.1 139.5 140.4 142.3 144.0 145.5 145.8 146.1 29 Nonelectrical machinery... 35 9.15 144.8 145.2 147.4 148.9 151.5 152.2 152.9 154.6 156.1 157.3 158.2 159.2 30 Electrical machinery 36 8.05 141.9 143.9 144.6 144.2 149.5 152.3 152.9 154.1 157.9 156.8 157.7 157.9 31 Transportation equipment 37 9.27 121.1 124.3 125.5 124.3 126.5 130.5 130.1 130.4 132.1 133.4 133.6 137.6 32 Motor vehicles & parts 371 4.50 159.7 164.4 165.6 168.4 165.1 171.7 168.3 167.7 169.7 171.0 168.7 176.1 33 Aerospace & misc. trans, eq. 372-9 4.77 84.7 86.5 87.7 82.8 90.1 91.8 93.9 95.0 96.5 98.3 100.6 101.4 34 Instruments 38 2.11 159.1 158.3 160.3 162.2 168.7 170.5 169.8 170.9 172.2 174.5 175.0 175.9 35 Miscellaneous mfrs 39 1.51 149.1 147.5 150.7 151.0 153.7 152.9 152.7 153.5 153.2 153.8 154.0 154.3 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 1507.4 583.9 590.2 590.1 591.3 601.1 608.8 606.8 608.9 610.3 612.8 614.1 619.5 37 Final products i390.9 452.1 456.9 456.8 457.8 463.5 470.7 468.2 468.9 469.6 472.5 473.0 478.5 38 Consumer goods., 1277.5 317.5 320.0 319.1 319.5 321.6 326.3 324.0 323.0 323.4 324.7 324.2 328.0 39 Equipment 1113.4 134.6 137.0 137.6 138.1 142.0 144.4 144.2 146.0 146.4 147.9 148.8 150.4 40 Intermediate products. 1116.6 131.9 133.1 133.5 133.8 137.5 138.3 138.6 140.3 140.7 140.6 141.1 141.5 i 1972 dollars. shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve NOTE.—Published groupings include some series and subtotals not System: Washington, D.C.), Dec. 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • November 1978 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1978 Item 1975 1976 1977 Mar. Apr. May June July' Aug.1 Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 927 1,296 18,133 1,647 1,740 1,597 1,821 1,632 1,563 1,707 2 1-family 669 894 12,265 1,037 1,157 1,058 1,123 1,035 1,020 1,098 3 2-or-more-family 278 402 5,861 610 583 539 698 597 543 609 4 Started 1,160 1,538 1,986 2,047 2,165 2,054 2,124 2,119 2,044 2,073 5 1-family 892 1,163 1,451 1,429 1,492 1,478 1,441 1,453 1,454 1,451 6 2-or-more-family 268 377 535 618 673 576 683 666 590 622 7 Under construction, end of period 1 1,003 1,147 1,442 1,260 1,274 11,,228822 r 1,296 1,299 11,,330066 8 1-family 531 655 829 778 774 777700 r114 780 779911 9 2-or-more-family 472 492 613 483 500 513 522 519 515 10 Completed 1,297 1,362 1,652 1,821 1,943 1,854 r1,890 11,,994422 1,950 11 1-family 866 1,026 1,254 11,,336633 1,515 1,426 rl,344 11,,228866 11,,334455 12 2-or-more-family 430 336 398 445588 428 428 '546 656 660055 13 Mobile homes shipped 213 246 277 285 252 258 263 232 283 290 Merchant builder activity in 1-family units: 14 Number sold 544 639 819 793 827 846 '831 794 779 775 15 P N r u ic m e b ( e th r o f u or s. s o a f le d , e o n ll d a r o s f ) 2 p eriod i.. 383 433 407 404 410 412 418 418 420 422 Median: 16 Units sold 39.3 44.2 48.9 53.2 53.3 55.7 '56.7 54.9 56.6 57.1 17 Units for sale 38.9 41.6 48.2 Average: 18 Units sold 42.5 48.1 54.4 60.0 59.3 62.3 '63.2 63.0 63.3 64.7 EXISTING UNITS (1-family) 19 Number sold 2,452 3,002 3,572 3,770 3,880 3,770 3,780 3,890 4,080 3,950 Price of units sold (thous. of dollars):2 20 Median 35.3 38.1 42.9 46.5 48.2 47.8 48.4 49.4 50.3 50.2 21 Average 39.0 42.2 47.9 51.1 53.6 54.8 55.1 56.5 57.5 57.7 Value of new construction 4 (millions of dollars) CONSTRUCTION 22 Total put in place 134,293 147,481 170,685 185,381 195,261 201,555 205,843 208,300 206,464 23 Private 93,624 109,499 133,652 147,709 153,728 156,456 160,594 159,912 158,087 24 Residential 46,472 60,519 81,067 88,141 92,433 94,533 94,902 93,998 92,555 25 Nonresidential, total.... 47,152 48,980 52,585 59,568 61,295 61,923 65,692 65,914 65,532 Buildings: 26 Industrial 8,017 7,182 7,182 9,199 9,244 8,735 11,335 11,170 12,043 27 Commercial 12,804 12,757 14,604 16,227 17,177 18,546 19,246 19,463 18,835 5,585 6,155 6,226 6,358 6,806 6,935 6,761 7,036 6,721 Public utilities and other. 20,746 22,886 24,573 27,784 28,068 27,707 28,350 28,245 27,933 30 Public 40,669 37,982 37,033 37,672 41,532 45,099 45,249 48,388 48,376 31 Military 1,392 1,508 1,478 1,405 1,500 1,446 1,358 1,493 1,481 32 Highway 10,861 9,756 9,170 8,125 8,491 10,556 10,338 10,015 33 Conservation and development.., 3,256 3,722 3,765 4,237 4,586 4,172 3,508 4,947 34 Other 3 25,160 22,996 22,620 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 Sept. 1977 1978 1978 Sept Sept. (1967 Dec. Mar. June Sept. May June July Aug. Sept. = 100)2 Consumer prices 3 1 All items 6.6 8.3 4.9 9.3 11.4 7.8 .9 .9 .5 .6 .8 199.3 2 Commodities 5.7 7.9 4.9 9.3 11.2 6.3 .9 .9 .4 .4 .7 190.5 3 Food 7.1 10.8 4.2 16.4 20.4 3.0 1.5 1.3 .0 .3 .5 215.6 4 Commodities less food 4.9 6.7 5.4 6.1 7.2 7.8 .6 .6 .6 .5 .9 177.8 5 Durable 4.8 7.7 5.2 8.7 9.0 8.3 .8 .8 .7 .5 .9 177.2 6 Nondurable 5.0 5.2 5.1 3.1 5.5 7.3 .4 .4 .5 .5 .8 177.1 7 Services 7.9 9.1 4.9 9.1 11.8 10.3 1.0 .9 .8 .8 215.6 8 Rent 6.2 7.1 6.3 6.2 8.5 7.5 .7 .6 .5 .5 .8 166.4 9 Services less rent 8.2 9.4 4.8 9.6 12.2 10.8 1.0 .9 .9 .9 .9 224.6 Other groupings: 10 All items less food 6.4 7.8 5.0 8.1 9.3 9.1 .8 .7 .7 .7 .8 195.1 11 All items less food and energy 6.2 7.9 5.3 8.0 9.9 8.3 .8 .9 .7 .6 .7 192.4 12 Homeownership 7.6 12.0 7.1 12.2 14.5 14.7 1.1 1.2 1.2 1.0 1.3 234.2 Producer prices, formerly Wholesale prices 13 Finished goods 6.6 8.2 7.2 9.6 Ml.4 5.0 .7 .7 .5 -.1 .9 196.9 14 Consumer 6.5 8.2 5.4 10.9 M2.5 4.2 .6 r. 8 .4 -.3 .9 195.1 15 Foods 6.7 10.2 7.4 21.2 14.6 -1.0 .4 1.2 -.3 -1.5 1.7 209.4 16 Excluding foods 6.4 7.1 4.7 5.3 Ml.2 7.6 .8 >\5 r.9 .4 .5 186.0 17 Capital Equiptment 6.7 8.3 10.9 7.1 '8.7 6.4 .8 r.l r.6 .4 .6 201.0 18 Materials 5.0 9.0 8.3 13.9 r9.0 5.2 .5 r.7 .3 . 1 .9 223.3 19 Intermediate1 6.8 6.6 4.2 9.2 r6.6 6.7 .5 r. 6 '.3 .7 .6 219.6 Crude: 20 Nonfood 7.1 15.0 20.1 16.2 Ml.6 12.2 .4 1.6 r2.4 -.5 1.0 294.9 21 Food -3.7 20.1 27.6 40.3 28.1 -9.4 .0 1.9 -2.5 -1.8 1.9 218.5 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 • November 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 Q2 Q3 Q4 Ql Q2 Q3p Gross national product 1 Total 1,528.8 1,700.1 1,887.2 1,867.0 1,916.8 1,958.1 1,992.0 2,087.5 2,141.1 By source: 2 Personal consumption expenditures 979.1 1,090.2 1,206.5 1,188.6 1,214.5 1,255.2 1,276.7 1,322.9 1,354.5 3 Durable goods 132.6 156.6 178.4 175.6 177.4 187.2 183.5 197.8 199.3 4 Nondurable goods 408.9 442.6 479.0 473.6 479.7 496.9 501.4 519.3 529.4 5 Services 437.5 491.0 549.2 539.4 557.5 571.1 591.8 605.8 625.8 6 Gross private domestic investment 190.9 243.0 297.8 295.6 309.7 313.5 322.7 345.4 351.7 7 Fixed investment 201.6 232.8 282.3 278.6 287.8 300.5 306.0 325.3 334.1 8 Nonresidential 150.2 164.6 190.4 187.2 193.5 200.3 205.6 220.1 225.4 9 Structures 53.8 57.3 63.9 63.4 65.4 67.4 68.5 76.6 79.5 10 Producers' durable equipment 96.4 107.3 126.5 123.8 128.1 132.8 137.1 143.5 145.9 11 Residential structures 51.5 68.2 91.9 91.4 94.3 100.2 100.3 105.3 108.8 12 Nonfarm 49.5 65.8 88.9 88.4 91.2 97.5 97.3 102.1 105.5 13 Change in business inventories -10.7 10.2 15.6 17.0 21.9 13.1 16.7 20.1 17.6 14 Nonfarm -14.3 12.2 15.0 16.5 22.0 10.4 16.9 22.1 18.6 15 Net exports of goods and services 20.4 7.4 -11.1 -5.9 — 7.0 -23.2 -24.1 -5.5 -6.5 16 Exports 147.3 163.2 175.5 178.1 180.8 172.1 181.7 205.4 210.9 17 Imports 126.9 155.7 186.6 184.0 187.8 195.2 205.8 210.9 217.3 18 Government purchases of goods and services 338.4 359.5 394.0 388.8 399.5 412.5 416.7 424.7 441.3 19 Federal 123.1 129.9 145.1 142.9 146.8 152.2 151.5 147.2 156.1 20 State and local 215.4 229.6 248.9 245.9 252.7 260.3 265.2 277.6 285.2 By major type of product: 21 Final sales, total 1,539.6 1,689.9 1,871.6 1,850.0 1,894.9 1,945.0 1,975.3 2,067.4 2,123.4 22 Goods 686.6 760.3 832.6 825.8 844.7 859.6 861.8 912.2 930.7 23 Durable 259.0 304.6 341.3 339.1 346.5 347.4 351.2 375.8 381.4 24 Nondurable 427.5 455.7 491.3 486.7 498.2 512.2 510.6 536.4 549.3 25 Services 697.6 778.0 862.8 850.0 875.3 893.6 926.4 952.0 977.6 26 Structures 144.7 161.9 191.8 191.3 196.8 204.9 203.8 223.4 232.8 27 Change in business inventories -10.7 10.2 15.6 17.0 21.9 13.1 16.7 20.1 17.6 28 Durable goods -8.9 5.3 8.4 9.1 11.9 6.3 14.8 10.8 11.2 29 Nondurable goods -1.8 4.9 7.2 7.9 10.0 6.8 1.9 9.3 6.4 30 MEMO: Total GNP in 1972 dollars 1,202.3 1,271.0 1,332.7 1,325.5 1,343.9 1,354.5 1,354.2 1,382.6 1,394.3 National income 31 Total 1,215.0 1,359,2 1,515.3 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 1,140.5 1,165.8 1,199.7 1,241.0 1,287.8 1,314.7 33 Wages and salaries 805.9 890.1 983.6 973.4 993.6 1,021.2 1,050.8 1,090.2 1,111.2 34 Government and Government enterprises 175.4 187.6 200.8 198.1 201.7 208.1 211.4 213.9 216.9 35 Other 630.4 702.5 782.9 775.3 791.9 813.1 839.3 876.3 894.3 36 Supplement to wages and salaries 125.2 146.7 169.8 167.1 172.2 178.4 190.2 197.6 203.5 37 Employer contributions for social insurance 60.1 69.7 79.4 78.6 79.9 82.4 90.2 93.6 95.6 38 Other labor income 65.1 77.0 90.4 88.5 92.2 96.1 100.0 104.0 107.9 4 4 3 0 1 9 Pr B F o u p ar s r i m i n e e 1 t s o s r s a ' n i d n c p o ro m fe e s 1 sional1 2 8 6 3 3 7 . . . 5 5 0 8 7 1 8 0 8 . . . 6 2 4 2 9 7 0 9 9 . . . 5 3 8 9 7 2t 8 8 t . . . 9 9 0 9 8 1 7 0 6 . . . 2 8 5 10 2 8 7 5 2 . . . 3 1 3 10 2 8 5 1 3 . . . 0 1 9 11 2 8 0 6 4 .1 . . 1 0 11 2 8 3 3 9 .2 . . 5 7 42 Rental income of persons2 22.4 22.5 22.5 22.4 22.4 22.7 22.8 22.2 24.4 43 Corporate profits1 95.9 127.0 144.2 143.7 154.8 148.2 132.6 163.4 44 Profits before tax3 120.4 155.9 173.9 175.1 177.5 178.3 172.1 205.5 45 Inventory valuation adjustment -12.4 -14.5 -14.8 -16.6 -7.7 -14.8 -23.5 -24.9 -20.9 46 Capital consumption adjustment -12.0 -14.4 -14.9 -14.8 -15.0 -15.3 -16.1 -17.2 -19.3 47 Net interest 78.6 84.3 95.4 93.7 97.3 99.0 101.7 104.6 107.0 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 11997755 11997766 11997777 Account Q2 Q3 Q4 Ql Q2 Q3* Personal income and saving 1 Total personal income. 1,255.5 1,380.9 1,529.0 1,508.6 1,543.7 1,593.0 1,628.9 1,682.4 1,727.2 2 Wage and salary disbursements 805.9 890.1 983.6 973.4 993.6 1,021.2 1,050.8 1,090.2 1,110.9 3 Commodity-producing industries 275.0 307.5 343.7 342.0 348.3 357.1 365.9 387.0 395.9 4 Manufacturing 211.0 237.5 266.3 264.1 269.3 277.3 286.9 296.1 301.9 5 Distributive industries 195.3 216.4 239.1 236.5 241.2 247.5 257.0 266.4 270.4 6 Service industries 160.1 178.6 200.1 196.8 202.3 208.5 216.5 222.8 228.0 7 Government and government enterprises., 175.4 187.6 200.8 198.1 201.7 208.1 211.4 213.9 216.7 8 Other labor income 65.1 77.0 90.4 88.5 92.2 96.1 100.0 104.0 107.9 9 Proprietors' income1 87.0 88.6 99.8 98.9 97.2 107.3 105.0 110.1 113.2 10 Business and professional1. 63.5 70.2 79.5 78.9 80.8 82.3 83.1 86.1 89.7 11 Farm1 23.5 18.4 20.3 20.0 16.5 25.1 21.9 24.0 23.5 12 Rental income of persons 2. 22.4 22.5 22.5 22.4 22.4 22.7 22.8 22.2 24.4 13 Dividends 31.9 37.9 43.7 42.7 44.1 46.3 47.0 48.1 50.1 14 Personal interest income... 115.5 126.3 141.2 139.1 143.6 146.0 151.4 156.3 160.9 15 Transfer payments 178.2 193.9 208.8 204.0 211.9 215.9 219.2 220.6 230.2 16 Old-age survivors, disability, and health insurance benefits 81.4 92.9; 105.0 101.8 108.5 110.1 112.1 113.7 120.9 17 LESS: Personal contributions for social insurance 50.5 55.5 61.0 60.5 61.4 62.6 67.2 69.2 70.4 18 EQUALS: Personal income 1,255.5 1,380.9 1,529.0 1,508.6 1,543.7 1,593.0 1,628.9 1,682.4 1,727.2 19 LESS: Personal tax and nontax payments.... 168.8 196.5 226.0 223.3 224.6 233.3 237.3 249.1 262.5 20 EQUALS: Disposable personal income... 1,086.7 1,184.4 1,303.0 1,285.3 1,319.1 1,359.6 1,391.6 1,433.3 1,464.7 21 LESS: Personal outlays 1,003.0 1,116.3 1,236.1 1,217.8 1,244.8 1,285.9 1,309.2 1,357.0 1,390.2 22 EQUALS: Personal saving 83.6 68.0 66.9 67.5 74.3 73.7 82.4 76.3 74.4 MEMO ITEMS : Per capita (1972 dollars): 23 Gross national product 5,629 5,906 6,144 6,120 6,191 6,226 6,215 6,333 6,375 24 Personal consumption expenditures.... 3,626 3,808 3,954 3,922 3,953 4,030 4,009 4,060 4,086 25 Disposable personal income 4,025 4,136 4,271 4,241 4,293 4,365 4,370 4,399 4,418 26 Saving rate (per cent) 7.7 5.7 5.1 5.3 5.6 5.4 5.9 5.3 5.1 Gross saving 27 Gross private saving. 225599..88 227700..77 229900..88 228888..66 331100..77 330044..33 305.4 319.9 28 Personal saving 8833..66 6688..00 6666..99 6677..55 7744..33 7733..77 82.4 76.3 74.4 29 Undistributed corporate profits1 1144..22 2244..88 2288..77 2288..77 3388..00 2288..00 15.6 30.3 30 Corporate inventory valuation adjustment... --1122..44 --1144..55 --1144..88 --1166..66 --77..77 --1144..88 -23.5 -24.9 •-26:9' Capital consumption allowances: 31 Corporate 101.3 111.5 120.9 119.8 122.6 124.6 127.4 130.5 134.7 32 Noncorporate 60.7 66.3 74.3 72.6 75.9 77.9 79.9 82.8 86.1 33 Wage accruals less disbursements 34 Government surplus, or deficit (—), national income and product accounts ----66664444....4444 ----33333333....2222 ----11118888....6666 ----11111111....8888 ----22225555....2222 ----22229999....6666 —21.1 6.2 35 Federal ----77770000....6666 ----55553333....8888 ----44448888....1111 ----44440000....3333 ----55556666....4444 ----55558888....6666 ---555222...666 -23.6 36 State and local 6666....2222 22220000....7777 cccc22229999....6666 22228888....5555 33331111....2222 22229999....0000 333111...555 2299..88 37 Capital grants received by the United States, net 38 Investment 202.8 241.7 276.9 280.4 292.6 279.5 286.4 326.6 331.5 39 Gross private domestic. 190.9 243.0 297.8 295.6 309.7 313.5 322.7 345.4 351.7 40 Net foreign 11.9 -1.2 -20.9 -15.2 -17.1 -34.1 -36.3 -18.9 -20.3 41 Statistical discrepancy. 77..44 44..22 44..77 33..77 77..11 44..88 22..22 ..55 1 With inventory valuation and capital consumption adjustments. SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). 2 With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • November 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 Q2 Q3 Q4 Qlr Q2 1 Merchandise exports 107,088 114,694 120,555 '30,630 r31,012 r29,434 30,664 35,067 98,041 124,047 r151,658 r37,258 r38,265 r39,639 41,865 42,869 3 Merchandise trade balance2 9,047 -9,353 r —31,103 r—6,628 r—7,253 r —10,205 -11,201 -7,802 4 Military transactions, net -876 312 1,334 295 467 5 210 575 5 Investment income, net3 12,795 15,933 17,507 4,487 r4,609 r3,813 4,877 4,620 6 Other service transactions, net 2,095 2,469 1,705 412 583 482 538 699 7 Balance on goods and services3,4 23,060 9,361 r —10,558 r —1,434 r —1,594 r—5,905 -5,576 -1,908 8 Remittances, pensions, and other transfers -1,721 -1,878 -1,932 -480 -490 -473 -504 -549 9 U.S. Government grants (excluding military) -2,894 -3,145 -2,776 -763 -787 -591 -778 -804 10 Balance on current account3 1188,,444455 4,339 r —15,265 r—2,677 r —2,871 r—6,969 -6,858 -3,261 rr--22,,550000 rr--55,,118822 rr--55,,224477 --66,,338822 --22,,881111 12 Change in U.S. Government assets, other than official reserve assets, net (increase, —) -3,470 -4,213 -3,679 -795 -1,098 -838 -896 -1,151 --660077 --22,,553300 -231 6 115511 224466 332299 14 Gold -118 -60 15 Special Drawing Rights (SDR's) -66 -78 -121 -83 -9 -29 -16 -104 16 Reserve position in International Monetary Fund (IMF).. -466 -2,212 -294 -80 133 42 324 437 -75 -240 302 169 27 47 -62 -4 18 Change in U.S. private assets abroad (increase, — )3 -35,368 -43,865 -30,740 -11,214 -5,668 -13,862 -14,386 -4,144 19 Bank-reported claims -13,532 -21,368 -11,427 -4,582 -1,779 -8,750 -6,270 1,422 20 Nonbank-reported claims -1,357 -2,030 -1,700 -1,137 1,389 -1,184 -2,222 -284 21 Long-term -366 5 25 66 205 -279 -57 -268 22 Short-term -991 -2,035 -1,725 -1,203 1,184 -905 -2,165 -16 23 U.S. purchase of foreign securities, net -6,235 -8,852 -5,398 -1,766 -2,165 -731 -949 -1,116 24 U.S. direct investments abroad, net3 -14,244 -11,614 -12,215 -3,729 -3,113 -3,197 -4,945 -4,166 25 Change in foreign official assets in the United States (increase, -f) 6,907 18,073 37,124 7,884 8,246 15,543 15,760 -4,924 26 U.S. Treasury securities 4,408 9,333 30,294 5,123 6,948 12,900 12,965 -5,095 27 Other U.S. Government obligations 905 573 2,308 610 627 973 117 211 28 Other U.S. Government liabilities 5 1,647 4,993 1,644 417 332 390 804 -310 29 Other U.S. liabilities reported by U.S. banks -2,158 969 773 752 -163 909 1,456 -367 30 Other foreign official assets6 2,104 2,205 2,105 982 502 371 418 637 31 Change in foreign private assets in the United States (increase, +)3 8,643 18,897 13,746 6,180 6,005 4,522 2,336 5,152 32 U.S. bank-reported liabilities 628 10,990 6,719 6,240 2,640 3,143 -314 1,679 33 U.S. nonbank-reported liabilities 319 -507 257 -412 590 425 495 10 406 -958 -620 -176 18 -242 38 -19 -87 451 877 -236 572 667 457 29 36 Foreign private purchases of U.S. Treasury securities, 2,590 2,783 563 -1,370 1,251 --229999 888811 880033 37 Foreign purchases of other U.S. securities, net 2,503 1,284 2,869 725 513 803 462 1,314 38 Foreign direct investments in the United States, net3 2,603 4,347 3,338 996 1,012 450 812 1,347 39 Allocation of SDR's 5,449 99,,330000 r —954 r616 r-4,766 r1,604 3,798 7,998 41 Owing to seasonal adjustments rr ——117788 --22,,223300 22,,227766 160 12 42 Statistical discrepancy in recorded data before seasonal 5,449 9,300 r—954 r794 r—2,536 r —612 3,638 7,986 MEMO ITEMS: Changes in official assets: 43 U S official reserve assets (increase, —) -607 -2,530 -231 6 151 224466 332299 44 Foreign official assets in the United States (increase, +).. 5,259 13,080 35,480 7,467 7,914 15,153 14,956 -4,614 45 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part of line 25 above) 7,092 9,581 6,733 1,344 1,438 1,024 1,963 --22,,773377 46 Transfers under military grant programs (excluded from lines 1, 4, and 9 above) 2,207 337733 119944 5533 3311 7711 7755 5577 1 Seasonal factors are no longer calculated for lines 13 through 46. 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 imoorts. 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 rr 11997766 '' 11997777 Mar. Apr. May June July Aug. Sept. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 107,589 115,156 121,151 10,912 11,635 11,754 12,126 11,793 12,469 13,429 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 96,573 121,009 147,685 13,699 14,496 13,992 13,723 14,779 14,090 15,120 3 Trade balance 11,016 -5,853 -26,534 -2,787 -2,861 -2,238 -1,597 -2,987 -1,621 -1,691 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 Apr. May June July Aug. Sept. Oct. 1 Total 16,226 18,747 19,312 18,842 18,966 18,864 18,832 18,783 18,850 3 18,935 2 Gold stock, including Exchange Stabilization Fund1 11,599 11,598 11,719 11,718 11,718 11,706 11,693 11,679 11,668 11,655 3 Special Drawing Rights2 2,335 2,395 2,629 2,669 2,760 2,804 2,860 2,885 2,942 3 3,097 4 Reserve position in International Monetary Fund 2,212 4,434 4,946 4,388 4,347 4,270 4,177 4,196 4,214 34,147 5 Convertible foreign currencies 80 320 18 67 141 84 102 23 26 36 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 Oct. amounted to $18,010; SDR holdings, $2,770; and reserve 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's. position in IMF $3,549. 3 Beginning July 1974, the IMF adopted a technique for valuing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • November 1978 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1978 Asset account 1975 1976 1977 Feb. Apr. May Juner July All foreign countries 1 Total, all currencies 176,493 219,420 258,897 256,779 263,468 260,558 259,452 271,706 269,552 275,065 2 Claims on United States 6,743 7,889 11,623 9,361 11,013 13,754 8,727 10,866 9,254 10,348 3 Parent bank 3,665 4,323 7,806 5,410 6,708 9,348 4.863 6,750 5,096 6,142 4 Other 3,078 3,566 3,817 3,951 4,305 4,406 3.864 4,116 4,158 4,206 5 Claims on foreigners 163,391 204,486 238,848 238,658 243,316 237,447 241,784 251,818 250,710 254,586 6 Other branches of parent bank 34,508 45,955 55,772 54,201 55,554 51,817 52,719 55,363 55,243 58,746 7 Banks 69,206 83,765 91,883 92,341 95,348 92,370 91,912 96,663 94,641 92,854 8 Public borrowers1 5,792 10,613 14,634 15,093 15,284 15,207 21,139 22,495 23,382 23,292 9 Nonbank foreigners 53,886 64,153 76,560 77,023 77,130 78,053 76,014 77,297 77,444 79,694 10 Other assets 6,359 7,045 8,425 8,761 9,139 9,357 8,941 9,022 9,588 10,131 11 Total payable in U.S. dollars 132,901 167,695 193,764 189,372 194,855 194,168 192,466 202,792 198,205 200,982 12 Claims on United States 6,408 7,595 11,049 8,629 10,320 12,952 8,035 10,082 8,473 9,364 13 Parent bank 3,628 4,264 7,692 5,162 6,611 9,158 4,712 6,580 4,906 5,773 14 Other 2,780 3,332 3,357 3,467 3,709 3,795 3,323 3,502 3,567 3,591 15 Claims on foreigners 123,496 156,896 178,896 176,737 180,341 176,877 180,331 188,615 185,425 187,090 16 Other branches of parent bank 28,478 37,909 44,256 42,664 43,502 40,628 41,209 43,544 43,447 46,325 17 Banks 55,319 66,331 70,786 69,721 71,934 70,504 70,124 74,867 71,574 69,601 18 Public borrowers1 4,864 9,022 12,632 13,087 13,276 13,232 18,275 19,515 20,397 20,202 19 Nonbank foreigners 34,835 43,634 51,222 51,267 51,628 52,513 50,723 50,689 50,007 50,962 20 Other assets 2,997 3,204 3,820 4,005 4,195 4,339 4,100 4,095 4,307 4,528 United Kingdom 21 Total, all currencies 74,883 81,466 90,933 89,626 90,162 87,100 89,645 93,538 92,989 93,341 22 Claims on United States 2,392 3,354 4,341 2,547 3,075 2,506 2,333 3,142 2,615 2,820 23 Parent bank 1,449 2,376 3,518 1,775 2,274 1,548 1,476 2,279 1,515 1,791 24 Other 943 978 823 111 802 958 857 863 1,100 1,029 25 Claims on foreigners 70,331 75,859 84.016 84,423 84,648 81,871 84,700 87,808 87,479 87,575 26 Other branches of parent bank 17,557 19,753 22.017 21,114 21,092 19,514 19,550 19,944 20,438 21,661 27 Banks 35,904 38,089 39,899 40,996 41,612 40,436 40,807 43,044 42,462 40,401 28 Public borrowers1 881 1,274 2,206 2,100 2,192 2,020 4,150 4,400 4,750 4,532 29 Nonbank foreigners 15,990 16,743 19,895 20,213 19,753 19,901 20,193 20,420 19,829 20,981 30 Other assets 2,159 2,253 2,576 2,656 2,439 2,724 2,612 2,588 2,895 2,946 31 Total payable in U.S. dollars 57,361 61,587 66,635 63,870 64,565 62,330 63,565 67,016 65,452 64,456 32 Claims on United States 2,273 3,275 4,100 2,186 2,850 2,312 2,163 2,870 2,321 2,337 33 Parent bank 1,445 2,374 3,431 1,558 2,236 1,520 1,452 2,178 1,386 1,483 34 Other 828 902 669 628 614 793 711 692 935 854 35 Claims on foreigners 54,121 57,488 61,408 60,521 60,610 58,845 60,277 63,043 61,938 60,906 36 Other branches of parent bank 15,645 17,249 18,947 17,782 17,603 16,531 16,406 17,025 17,438 18,304 37 Banks 28,224 28,983 28,530 28,641 28,947 28,177 28,324 30,686 29,455 27,310 38 Public borrowers1 648 846 1,669 1,640 1,710 1,631 3,254 3,366 3,785 3,502 39 Nonbank foreigners 9,604 10,410 12,263 12,457 12,349 12,507 12,293 11,966 11,260 11,790 40 Other assets 967 824 1,126 1,163 1,104 1,173 1,125 1,103 1,193 1,213 Bahamas and Caymans 41 Total, all currencies 45,203 66,774 79,052 79,711 82,947 84,409 82,083 84,692 82,145 85,654 42 Claims on United States 3,229 3,508 5,782 5,837 6,761 9,908 5,237 6,416 5,132 5,620 43 Parent bank 1,477 1,141 3,051 2.918 3,585 6,710 2,502 3,449 2,381 2,751 44 Other 1,752 2,367 2,731 2.919 3,176 3,198 2,735 2,967 2,751 2,869 45 Claims on foreigners 41,040 62,048 71,671 72,272 74,397 72,720 74,846 76,307 74,988 77,950 46 Other branches of parent bank, 5,411 8,144 11,120 11,025 11,367 9,565 10,580 10,803 10,292 12,134 47 Banks 16,298 25,354 27,939 28,179 29,602 28,712 29,045 30,332 29,284 29,749 48 Public borrowers1 3,576 7,105 9,109 9,486 9,438 9,362 11,424 12,394 12,580 12,442 49 Nonbank foreigners 15,756 21,445 23,503 23,583 23,990 25,082 23,797 22,778 22,832 23,625 50 Other assets 933 1,217 1,599 1,602 1,789 1,781 2,000 1,969 2,025 2,084 51 Total payable in U.S. dollars 41,887 62,705 73,987 74,283 77,521 79,324 76,660 79,277 4 76,494 79,724 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 Feb. Mar. Apr. May 2 June' July Aug.P All foreign countries 52 Total, all currencies 176,493 219,420 258,897 256,779 263,468 260,558 259,452 271,706 269,552 275,065 53 To United States 20,221 32,719 44,154 45.810 50,860 49,088 49,907 50,441 51,442 52,258 54 Parent bank 12,165 19,773 24,542 26,999 27,650 26,643 '28,422 25,199 27,714 29,050 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 18.811 23,209 22,445 X ( '1 ' 2 9 , , 4 0 8 0 2 3 1 1 4 0 , , 8 3 6 8 1 1 1 8 5 , , 6 1 0 2 8 0 1 7 5 , , 6 5 4 6 8 0 57 To foreigners 149,815 179,954 206,579 203,041 204,629 202,946 202,241 213,772 209,960 214,284 58 Other branches of parent bank.. 34,111 44,370 53,244 50,896 52,090 48,850 50,368 53,547 53,796 56,955 59 Banks 72,259 83,880 94,140 90,904 90,557 91,699 87,567 93,497 88,481 89,241 60 Official institutions 22,773 25,829 28,110 28,850 28,018 28,568 29,776 31,320 31,714 31,452 61 Nonbank foreigners 20,672 25,877 31,085 32,390 33,963 33,830 34,530 35,408 35,969 36,636 62 Other liabilities 6,456 6,747 8,163 7,929 7,980 8,524 7,304 7,493 8,150 8,523 63 Total payable in U.S. dollars 135,907 173,071 198,572 194,537 199,879 197,575 196,746 207,117 202,407 205,074 64 To United States 19,503 31,932 42,881 44,472 49,248 47,811 48,278 48,727 49,527 50,150 65 Parent bank 11,939 19,559 24,213 26,688 27,321 26,348 '27,787 24,477 26,943 28,158 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 17,784 21,927 21,463 1 / '1 ' 1 8 , , 7 7 8 0 7 4 1 1 0 4 , , 0 1 8 6 8 2 1 8 4 , , 2 2 8 9 6 8 1 7 4 , , 2 7 7 1 5 7 68 To foreigners 112,879 137,612 151,363 145,958 146,406 145,350 144,758 154,606 148,771 150,780 69 Other branches of parent bank.. 28,217 37,098 43,268 40,720 41,636 39,214 40,099 42,682 42,860 45,620 70 Banks 51,583 60,619 64,872 60,815 60,353 61,665 57,871 62,518 56,390 55,292 71 Official institutions 19,982 22,878 23,972 24,453 23,593 23,865 25,124 26,493 26,726 26,175 72 Nonbank foreigners 13,097 17,017 19,251 19,970 20,824 20,606 21,664 22,913 22,795 23,693 73 Other liabilities 3,526 3,527 4,328 4,107 4,224 4,414 3,710 3,784 4,109 4,144 United Kingdom 74 Total, all currencies 74,883 81,466 90,933 89,626 90,162 87,100 89,645 93,538 92,989 93,341 75 To United States 5,646 5,997 7,753 6,785 7,609 7,266 6,758 8,174 8,003 6,978 76 Parent bank 2,122 1,198 1,451 1,550 1,646 1,983 1,636 1,822 1,951 1,905 7 7 7 8 N O o th n e b r a b n a k n s k s in United States.. } 3,523 4,798 6,302 5,236 5,962 5,283 X ( 2 2 , , 7 3 7 4 6 6 3 3 , , 0 2 7 7 9 3 2 3 , , 9 0 8 6 7 5 2 2, , 7 2 8 9 3 0 79 To foreigners 67,240 73,228 80,736 80,331 80,036 77,169 80,108 82,703 81,855 82,991 80 Other branches of parent bank. 6,494 7,092 9,376 9,037 8,674 8,014 9,009 9,700 10,106 11,708 81 Banks 32,964 36,259 37,893 36,764 36,250 34,940 35,980 36,950 34,779 35,293 82 Official institutions 16,553 17,273 18,318 19,580 19,262 18,817 19,087 19,980 20,746 19,863 83 Nonbank foreigners 11,229 12,605 15,149 14,950 15,850 15,399 16,032 16,073 16,224 16,127 84 Other liabilities 1,997 2,241 2,445 2,509 2,518 2,665 2,779 2,661 3,131 3,372 85 Total payable in U.S. dollars 57,820 63,174 67,573 65,021 65,477 62,662 64,025 67,936 65,671 64,926 86 To United States 5,415 5,849 7,480 6,479 7,250 6,938 6,446 7,852 7,644 6,606 87 Parent bank 2,083 1,182 1,416 1,524 1,598 1,953 1,609 1,794 1,918 1,852 8 8 8 9 N O o th n e b r a b n a k n s k .. s in United States.. | 3,332 4,667 6,064 4,955 5,652 4,985 X f 2 2 , , 2 5 8 5 1 6 2 3 , , 8 17 8 6 2 2 2 , , 8 9 2 0 2 4 2 2, , 5 2 4 0 5 9 90 To foreigners 51,447 56,372 58,977 57,386 57,045 54,498 56,274 58,856 56,644 57,015 91 Other branches of parent bank. 5,442 5,874 7,505 7,211 6,747 6,202 6,696 7,259 7,704 9,163 92 Banks 23,330 25,527 25,608 23,352 23,075 22,115 22,554 23,566 20,644 20,601 93 Official institutions 14,498 15,423 15,482 16,541 16,213 15,672 15,908 16,772 17,280 16,113 94 Nonbank foreigners 8,176 9,547 10,382 10,282 11,009 10,509 11,116 11,259 11,016 11,138 95 Other liabilities 959 953 1,116 1,156 1,182 1,227 1,305 1,228 1,383 1,305 Bahamas and Caymans 96 Total, all currencies 45,203 66,11A 79,052 79,711 82,947 84,409 82,083 84,692 82,145 85,654 97 To United States 11,147 22,721 32,176 35,082 38,380 37,256 37,350 35,092 36,908 39,225 98 Parent bank 7,628 16,161 20,956 23,374 23,854 22,289 '23,255 19,078 21,755 23,186 99 Other banks in United States ( '5,625 5,524 4,587 4,498 100 Nonbanks } 3,520 6,560 11,220 11,708 14,526 14,967 X '8,470 10,490 10,566 11,541 101 To foreigners 32,949 42,899 45,292 43,272 43,153 45,610 43,394 48,181 43,782 44,903 102 Other branches of parent bank. 10,569 13,801 12,816 11,598 10,839 10,288 11,250 11,657 11,165 11,436 103 Banks 16,825 21,760 24,717 22,840 23,374 25,847 21,452 25,742 21,951 21,888 104 Official institutions 3,308 3,573 3,000 3,207 3,060 3,489 4,419 4,583 4,221 4,598 105 Nonbank foreigners 2,248 3,765 4,759 5,628 5,880 5,986 6,273 6,199 6,445 6,981 106 Other liabilities 1,106 1,154 1,584 1,358 1,414 1,543 1,339 1,419 1,455 1,526 107 Total payable in U.S. dollars 42,197 63,417 74,463 75,253 78,467 80,243 78,254 80,650 78,131 81,314 i In May 1978 a broader category of claims on foreign public borrowers, 2 jn 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 • November 1978 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1978 IItteemm 11997755 11997766 11997777 Mar. Apr. May June July Aug.f Sept.f A A. By type 1111 TTTToooottttaaaallll iiii 82,572 95,634 131,049 145,998 142,625 140,918 140,625 144,167 146,103 145,175 2222 LLLLiiiiaaaabbbbiiiilllliiiittttiiiieeeessss rrrreeeeppppoooorrrrtttteeeedddd bbbbyyyy bbbbaaaannnnkkkkssss iiiinnnn tttthhhheeee UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss2222 16,262 17,231 18,003 19,459 19,450 19,057 18,821 19,445 20,040 16,689 3333 UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy bbbbiiiillllllllssss aaaannnndddd cccceeeerrrrttttiiiiffffiiiiccccaaaatttteeeessss 3333 34,199 37,725 47,820 59,302 57,613 56,449 55,606 56,842 56,299 55,014 UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy bbbboooonnnnddddssss aaaannnndddd nnnnooootttteeeessss:::: 4444 MMMMaaaarrrrkkkkeeeettttaaaabbbblllleeee 6,671 11,788 32,116 34,528 32,838 32,272 32,865 34,178 34,888 35,592 5555 NNNNoooonnnnmmmmaaaarrrrkkkkeeeettttaaaabbbblllleeee4444 19,976 20,648 20,443 19,513 19,444 19,355 19,284 19,214 20,375 20,304 6666 UUUU....SSSS.... sssseeeeccccuuuurrrriiiittttiiiieeeessss ooootttthhhheeeerrrr tttthhhhaaaannnn UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss5555 5,464 8,242 12,667 13,196 13,280 13,785 14,049 14,488 14,501 14,576 B. By area 7777 TTTToooottttaaaallll 82,572 95,634 131,049 145,998 142,625 140,918 140,625 144,167 146,103 145,175 8888 WWWWeeeesssstttteeeerrrrnnnn EEEEuuuurrrrooooppppeeee1111 45,701 45,882 70,707 76,238 73,666 72,735 74,493 75,768 79,751 80,075 9999 CCCCaaaannnnaaaaddddaaaa 3,132 3,406 2,334 1,633 2,493 2,702 2,609 2,490 2,071 1,497 11110000 LLLLaaaattttiiiinnnn AAAAmmmmeeeerrrriiiiccccaaaa aaaannnndddd CCCCaaaarrrriiiibbbbbbbbeeeeaaaannnn 4,461 4,926 4,649 5,773 5,554 5,426 4,665 4,629 4,611 3,895 11111111 AAAAssssiiiiaaaa 24,411 37,767 50,693 59,587 57,945 57,203 56,199 58,081 56,847 56,807 11112222 AAAAffffrrrriiiiccccaaaa 2,983 1,893 1,742 1,756 1,872 1,945 1,689 2,220 2,037 2,006 11113333 OOOOtttthhhheeeerrrr ccccoooouuuunnnnttttrrrriiiieeeessss6666 1,884 1,760 924 1,011 1,095 907 970 979 786 895 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 A 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 Item 1975 1976 1977 Mar. Apr. A May June July Aug.^ Sept.** A. By holder and type of liability All foreigners. 95,590 110,657 126,168 139,414 141,652 137,307 135,743 137,294 140,532 143,849 2 Banks' own liabilities.. 65,364 61,604 60,547 61,429 63,928 68,403 3 Demand deposits.... 13,564 16,803 18,996 17,163 17,863 17,828 17,189 17,953 16,101 17,208 4 Time deposits1 10,267 11,347 11,521 11,274 11,665 11,810 11,638 11,921 12,627 12,525 5 Other 2 7,343 7,239 6,495 6,876 7,246 6,904 6 Own foreign offices3. 28,493 24,727 25,225 24,679 27,955 31,766 7 Banks' custody liabilities4 76,288 75,704 75,196 75,865 76,604 75,446 8 U.S. Treasury bills and certificates5 37,414 40,744 48,906 61,071 59,104 58,262 57,138 57,629 57,264 56,665 9 Other negotiable and readily transferable instruments6 14,176 14,796 15,358 15,513 16,693 15,627 10 Other 3,008 2,646 2,700 2,722 2,647 3,155 11 Nonmonetary international and regional organizations7 5,699 5,714 3,274 3,618 2,998 3,120 2,942 2,678 2,823 3,386 12 Banks' own liabilities. 831 499 480 1,017 808 767 13 Demand deposits... 139 290 231 245 272 286 265 257 142 144 14 Time deposits1 148 205 139 109 143 59 119 116 97 99 15 Other2 416 154 97 644 569 523 16 Banks' custody liabilities4 2,166 2,621 2,462 1,662 2,014 2,619 17 U.S. Treasury bills and certificates 2,554 2,701 706 1,317 892 1,153 922 228 368 1,036 18 Other negotiable and readily transferable instruments6 1,274 1,467 1,537 1,432 1,645 1,582 19 Other 1 3 1 20 Official institutions8 50,461 54,956 65,822 78,761 77,063 75,506 74,427 76,286 76,338 74,702 21 Banks' own liabilities. 9,586 9,017 8,453 9,422 9,075 9,462 22 Demand deposits... 2,644 3,394 3,528 2,804 3,703 3,092 2,611 3,473 2,639 3,312 23 Time deposits1 3,423 2,321 1,797 1,777 1,884 1,982 1,981 2,277 2,588 2,593 24 Other2 3,999 3,943 3,862 3,673 3,848 3,557 25 Banks' custody liabilities4 67,477 66,489 65,974 66,864 67,263 65,240 26 U.S. Treasury bills and certificates5 34,199 37,725 47,820 59,302 57,613 56,449 55,606 56,842 56,299 55,014 27 Other negotiable and readily transferable instruments6 9,375 9,457 9,870 9,498 10,326 9,281 28 Other 489 583 498 524 638 946 29 Banks9 29,330 37,174 42,335 42,115 47,283 43,531 43,132 42,922 45,552 50,327 30 Banks' own liabilities 42,841 39,251 38,697 38,358 41,034 45,540 31 Unaffiliated foreign banks. 14,348 14,524 13,472 13,680 13,079 13,773 32 Demand deposits 7,534 9,104 10,933 10,113 10,195 10,343 10,164 10,240 9,229 9,711 33 Time deposits1 1,873 2,297 2,040 1,734 1,643 1,595 1,255 1,321 1,390 1,606 34 Other2 2,511 2,585 2,053 2,119 2,461 2,456 Own foreign offices3. 28,493 24,727 25,225 24,679 27,955 31,766 36 Banks' custody liabilities4 4,442 4,280 4,435 4,564 4,518 4,787 37 U.S. Treasury bills and certificates 335 119 141 161 314 363 300 269 296 307 38 Other negotiable and readily transferable instruments6 1,991 2,174 2,260 2,417 2,393 2,546 39 Other 2,137 1,744 1,875 1,877 1,829 1,934 40 Other foreigners. 10,100 12,814 14,736 14,919 14,309 15,150 15,242 15,407 15,819 15,434 41 Banks' own liabilities. 12,106 12,836 12,917 12,631 13,010 12,634 42 Demand deposits... 3,248 4,015 4,304 4,000 3,693 4,106 4,149 3,983 4,091 4,041 43 Time deposits1 4,823 6,524 7,546 7,654 7,995 8,173 8,284 8,208 8,552 8,226 44 Other2 418 557 484 441 368 367 45 Banks' custody liabilities4 2,203 2,314 2,325 2,776 2,809 2,800 46 U.S. Treasury bills and certificates 325 198 240 291 286 297 310 290 301 308 47 Other negotiable and readily transferable instruments6 1,536 1,699 1,691 2,165 2,329 2,218 48 Other 381 319 323 320 179 274 49 MEMO: Negotiable time certificates of deposit held in custody for foreigners 8,666 9,135 9,260 9,385 10,001 9,844 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. • 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 • November 1978 3.15 Continued 1978 Item 1975 1976 1977 Mar. Apr. A May June July Aug.*> Sept.** B. By area and country 1 Total 95,590 110,657 126,168 139,414 141,652 137,307 135,743 137,294 140,532 142,128 2 Foreign countries. 89,891 104,943 122,893 135,795 138,654 134,187 132,801 134,616 137,710 3 Europe 44,072 47,076 60,295 63,994 63,067 62,972 64,302 64,663 67,338 4 Austria 759 346 318 419 322 350 349 372 424 Belgium-Luxembourg... 2,893 2,187 2,531 2,992 3,109 2,893 2,756 2,277 2,174 Denmark 329 356 770 1,044 1,063 1,110 1.335 1,542 1,593 Finland 391 416 323 357 430 393 352 407 417 France 7,726 4.876 5,269 5,033 5,499 6,278 6,562 7,353 7,987 Germany 4,543 6,241 7,239 11,530 11,013 9,537 10,029 9,727 10,766 Greece 284 403 603 571 588 563 597 646 826 Italy 1,059 3,182 6,857 5,626 5,987 6,365 6,870 7,037 8,055 Netherlands 3,407 3,003 2,869 3,132 3,011 2,993 3,118 3,078 3,240 Norway 994 782 944 1,211 1,465 1.643 1,869 1,737 1,516 Portugal 193 239 273 174 164 288 191 227 324 Spain 423 559 619 111 659 717 688 709 752 Sweden 2,277 1,692 2,712 2,816 3,177 3,302 3,385 3,340 3,355 Switzerland 8,476 9,460 12,343 13,549 13,090 12,534 12,415 12,102 Turkey 118 166 130 115 249 200 110 147 137 United Kingdom 6,867 10,018 14,125 12,274 11,021 11,609 11,471 11,770 10,955 Yugoslavia 126 189 232 138 192 168 229 192 149 Other Western Europe1. 2,970 2,673 1,804 2,030 1,757 1,721 1,655 1,935 2,311 U.S.S.R 40 51 98 72 62 96 66 55 46 Other Eastern Europe2. 197 236 236 193 206 211 255 222 210 24 Canada. 2,919 4,659 4,607 4,564 5,923 6,600 5,816 5,623 5,890 25 Latin America and Caribbean 15,028 19,132 23,670 25,338 28,764 24,995 25,367 24,831 27,259 26 Argentina 1,146 1,534 1,416 1,801 1,861 2,260 1,692 1,550 1,454 27 Bahamas 1,874 2,770 3,596 4,199 7,259 3,327 3,981 3,629 4,625 28 Bermuda 184 218 321 322 364 340 399 383 348 29 Brazil 1,219 1,438 1,396 1,327 1,414 1,298 1,220 1,295 1,382 30 British West Indies 1,311 1.877 3,998 4,097 4,814 3,949 4,742 4,009 5,474 31 Chile 319 337 360 415 394 361 376 380 346 32 Colombia 417 1,021 1,221 1,290 1,350 1,300 1,424 1,429 1,486 3 3 3 3 5 6 4 3 J E C G a c u u m u b a a a a t d e ic o m a r a 3 la3 12 6 0 320 6 33 6 0 438 8 4 3 4 4 6 7 1 0 6 3 5 4 1 5 6 8 2 7 4 3 4 2 6 8 5 6 7 4 3 1 7 7 5 5 8 9 4 3 1 4 5 1 9 7 9 0 3 3 7 8 N M e e t x h i e c r o l ands Antilles4 2,0 1 7 2 0 9 2,8 1 7 5 0 8 2,8 1 7 9 6 6 2,7 2 9 1 3 2 2,6 2 7 1 7 2 2,9 2 6 8 5 9 2,7 3 7 2 4 0 2,9 4 2 3 1 5 3,1 2 6 8 9 8 39 Panama 1,115 1,167 2,331 2,132 2,176 2,559 2.336 2,639 2,628 40 Peru 243 257 287 262 309 274 282 309 311 41 Uruguay 172 245 243 226 221 208 220 218 185 42 Venezuela 3,309 3,118 2,929 3,438 3,225 3,298 3,147 3,229 3,208 43 Other Latin America and Caribbean., 1,393 1,797 2,167 2,380 1,636 1.644 1,608 1,530 1,519 44 Asia 22,384 29,766 30,488 37,995 36,625 35,712 33,665 35,171 33,464 45 China, People's Republic of (Mainland)., 123 48 53 56 50 47 53 Al 44 4 4 4 6 8 7 I C H n h o d i n i n a g a , K R o e n p g u blic of (Taiwan). 1,0 6 1 2 0 1 5 5 5 6 9 8 3 9 9 8 0 4 1 1 , , 0 0 9 1 9 6 3 4 1 1 1 , , 0 1 9 1 7 4 4 4 7 1 1 , , 1 2 9 1 0 3 8 7 8 1 1 , , 0 4 9 4 8 6 3 9 2 1 1, , 0 0 8 8 5 9 5 3 9 1, , ,1 1 7 9 9 9 1 5 8 1 1 , ,2 2 7 1 6 6 1 2 2 49 Indonesia 369 340 410 492 649 451 330 597 309 50 Israel 387 392 559 485 486 568 476 519 440 51 Japan 10,207 14,363 14,616 21,725 20,392 19,998 19,020 20,374 19,756 52 Korea 390 438 602 682 753 817 748 714 736 53 Philippines 700 628 687 647 601 688 595 640 566 54 Thailand 252 277 264 317 258 304 297 320 296 55 Middle East oil-exporting countries5. 7,355 9,360 8,979 9,165 8,866 8,058 7,894 7,267 6,719 56 Other Asia 856 1,398 1,250 1,291 1,307 1,289 1,215 1,510 1,364 57 Africa 3,369 2,298 2,535 2,469 2,699 2,641 2,360 3,013 2,578 58 Egypt 342 333 404 341 455 461 402 594 463 59 Morocco 68 87 66 51 31 29 28 28 67 60 South Africa 166 141 174 183 167 185 226 175 161 6 6 2 1 O Za il i - r e e x porting countries6. 2,25 6 0 2 1,13 3 3 6 1,15 3 5 9 1,22 45 6 1,39 4 3 6 1,24 4 4 9 98 4 1 4 1,36 7 5 3 1,19 5 8 2 63 Other Africa 481 568 698 623 607 673 679 778 638 64 Other countries. 2,119 2,012 1,297 1,434 1,575 1,267 1,288 1,315 1,180 65 Australia 2,006 1,905 1,140 1,229 1,275 1,129 1,085 1,158 1,051 66 All other 113 107 158 205 300 138 203 157 130 67 Nonmonetary international and regional organizations 5,699 5,714 3,274 3,618 2,998 3,120 2,942 2,678 2,823 68 International 5,415 5,157 2,752 3,094 2,591 2,430 2,311 2,027 2,157 69 Latin American regional. 188 267 278 261 117 430 395 411 437 70 Other regional? 96 290 245 262 290 260 236 241 228 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 197 4 8 I . n cludes Surinam through December 1975. tab A le s F , o s r e e a J u d ly es c 1 r 9 i 7 p 8 t i B on U LL of E T t I h N e , p c . h 6 a 1 n 2 g . e s in the International Statistics 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. A May June July Aug.p Sept.f 1 58,308 79,301 90,206 96,449 88,387 87,876 87,349 87,347 91,799 94,237 2 Foreign countries 58,275 79,261 90,163 96,406 88,339 87,842 87,317 87,311 91,761 94,198 11,109 14,776 18,114 18,690 15,318 15,825 16,366 15,762 16,823 18,523 4 Austria 35 63 65 83 76 94 105 116 107 95 5 Belgium-Luxembourg 286 482 561 596 586 793 731 634 823 947 6 104 133 173 166 146 186 145 129 145 147 7 180 199 172 189 180 184 182 190 216 221 8 France 1,565 1,549 2,082 2,265 1,646 1,679 1,891 1,813 2,524 2,793 9 380 509 644 783 698 752 787 689 625 752 10 290 279 206 211 200 279 204 190 125 127 11 Italy 443 993 1,334 1,155 907 1,194 965 1,078 1,027 1,007 1? 305 315 338 470 419 468 383 436 405 381 13 131 136 162 184 192 209 217 210 163 264 14 30 88 175 155 131 132 126 140 105 100 15 424 745 722 741 597 700 706 669 714 757 16 198 206 218 171 206 185 219 244 283 328 17 199 379 564 696 699 391 685 631 1,013 840 18 164 249 360 315 308 306 309 313 311 313 19 United Kingdom 5,170 7,033 8,964 9,204 6,823 6,951 7,387 6,961 6,937 8,074 ?0 Yugoslavia 210 234 311 307 280 285 320 300 280 306 ?1 Other Western Europe1 76 85 86 49 268 137 153 165 125 129 ??, U.S.S.R 406 485 413 370 337 362 319 305 343 370 23 Other Eastern Europe2 513 613 566 580 621 536 534 548 553 572 24 2,834 3,319 3,355 4,084 2,779 2,434 2,516 3,116 3,346 3,445 25 Latin America and Caribbean 23,863 38,879 45,850 49,866 48,991 46,947 45,991 46,974 49,461 49,965 26 Argentina 1,377 1,192 1,478 1,642 1,533 1,595 1,554 1,572 1,566 1,695 27 7,583 15,464 19,858 22,801 22,015 21,043 18,725 19,643 22,166 19,929 28 104 150 232 195 176 345 145 145 194 140 29 Brazil 3,385 4,901 4,629 4,832 4,412 4,443 4,661 4,599 4,860 5,276 30 British West Indies 1,464 5,082 6,481 6,851 7,823 6,271 7,412 6,872 6,885 8,037 31 Chile 494 597 675 710 722 717 745 745 809 742 32 Colombia 751 675 671 592 551 578 615 648 690 727 33 Cuba 14 13 10 3 1 1 1 1 1 1 34 252 375 517 544 525 530 562 546 560 646 35 Guatemala3 55 79 90 83 115 78 36 Jamaica3 19 42 53 49 44 46 37 3,745 4,822 4,909 4,836 4,379 4,506 4,864 5,068 5,001 4,982 38 Netherlands Antilles4 72 140 224 215 202 206 212 206 198 230 39 1,138 1,372 1,410 1,699 2,196 2,147 1,902 2,278 1,625 2,280 40 805 933 962 920 885 920 930 918 929 967 41 Uruguay 57 42 80 65 51 58 53 52 56 52 42 1,319 1,828 2,318 2,367 2,146 2,233 2,242 2,337 2,515 2,764 43 Other Latin America and Caribbean 1,302 1,293 1,394 1,593 1,302 rl,233 1,225 1,212 1,250 1,375 17,706 19,204 19,236 20,039 18,064 19,453 19,313 18,324 18,884 19,041 45 China, People's Republic of (Mainland) 22 3 10 1111 15 22 13 5 31 8 46 China, Republic of (Taiwan) 1,053 1,344 1,719 11,,665566 1,422 1,456 1,343 1,193 1,176 1,242 47 Hong Kong 289 316 543 609 826 755 769 698 664 692 48 India 57 69 53 97 53 70 80 46 73 76 49 246 218 232 202 165 137 146 139 125 151 50 721 755 584 491 434 494 468 445 504 545 51 10,944 11,040 9,839 10,266 9,532 9,745 10,023 9,779 9,842 10,251 52 Korea 1,791 1,978 2,336 2,090 1,850 1,800 2,327 1,936 1,925 1,923 53 534 719 594 660 615 751 679 640 743 733 54 520 442 633 656 686 730 711 725 693 634 55 Middle East oil-exporting countries5 744 1,459 1,746 2,219 1,488 2,522 1,572 1,551 1,951 1,674 56 Other Asia 785 862 947 1,082 978 r971 1,182 1,167 1,157 1,113 1,933 2,311 2,518 2,632 2,235 2,219 2,137 2,133 2,267 2,164 58 123 126 119 107 79 72 70 79 62 67 59 8 27 43 39 35 37 38 36 42 38 60 South Africa 657 957 1,066 1,169 1,052 1,055 1,054 1,036 1,058 1,025 61 181 112 98 101 77 80 79 79 79 83 62 Oil-exporting countries6 382 524 510 493 416 441 383 340 459 408 63 Other 581 565 682 723 575 r534 513 563 566 543 64 830 772 1,090 1,095 953 964 995 1,002 980 1,060 65 700 597 905 879 785 798 828 836 835 892 66 All other 130 175 186 216 168 166 167 167 145 168 67 Nonmonetary International and Regional Organizations7 33 4400 4433 4433 48 3344 3311 3366 3388 3399 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 A 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 • November 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 Mar. Apr. A May June July Aug.f Sept.* 1 Total 5588,,330088 7799,,330011 9900,,220066 9966,,444499 888888888777777777,,,,,,,,,222222222777777777666666666 999999999111111111,,,,,,,,,888888888222222222000000000 111111111000000000333333333,,,,,,,,,333333333333333333222222222 2 Banks' own claims on foreigners 8888888888888888,,,,,,,,333333338888888877777777 8888888877777777,,,,,,,,888888887777777766666666 8888888877777777,,,,,,,,333333334444444499999999 888888888777777777,,,,,,,,,222222222777777777666666666 999999999111111111,,,,,,,,,888888888222222222000000000 999999999444444444,,,,,,,,,222222222333333333777777777 3 Foreign public borrowers 44444444,,,,,,,,555555558888888844444444 55555555,,,,,,,,222222228888888833333333 55555555,,,,,,,,888888885555555511111111 666666666,,,,,,,,,888888888555555555666666666 777777777,,,,,,,,,222222222888888888222222222 777777777,,,,,,,,,666666666333333333333333333 4 Own foreign offices * 3333333355555555,,,,,,,,555555551111111133333333 3333333355555555,,,,,,,,777777771111111144444444 3333333311111111,,,,,,,,777777770000000077777777 333333333333333333,,,,,,,,,888888888111111111000000000 333333333777777777,,,,,,,,,333333333444444444111111111 333333333444444444,,,,,,,,,555555555444444444777777777 5 Unaffiliated foreign banks 2222222288888888,,,,,,,,666666666666666600000000 2222222277777777,,,,,,,,888888880000000055555555 3333333300000000,,,,,,,,111111115555555544444444 222222222777777777,,,,,,,,,444444444666666666666666666 222222222777777777,,,,,,,,,333333333888888888333333333 333333333111111111,,,,,,,,,444444444111111111777777777 6 Deposits 44444444,,,,,,,,888888886666666699999999 44444444,,,,,,,,666666665555555588888888 55555555,,,,,,,,111111111111111166666666 444444444,,,,,,,,,666666666222222222333333333 444444444,,,,,,,,,333333333555555555222222222 444444444,,,,,,,,,444444444333333333000000000 7 Other 2222222233333333,,,,,,,,777777779999999911111111 2222222233333333,,,,,,,,111111114444444477777777 2222222255555555,,,,,,,,000000003333333399999999 222222222222222222,,,,,,,,,888888888444444444333333333 222222222333333333,,,,,,,,,000000000333333333222222222 222222222666666666,,,,,,,,,999999999888888888666666666 8 All other foreigners 1111111199999999,,,,,,,,666666662222222299999999 1111111199999999,,,,,,,,000000007777777744444444 1111111199999999,,,,,,,,666666663333333377777777 111111111999999999,,,,,,,,,111111111444444444444444444 111111111999999999,,,,,,,,,888888888111111111444444444 222222222000000000,,,,,,,,,666666666444444444000000000 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,,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 1978 A 1979 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11997788 11997799 Junef Sept.p Dec. Mar. June Sept. 1 Total 5555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222288888888888888888888 5555555555555555555577777777777777777777,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666688888888888888888888 By borrower: 4444444444444444444433333333333333333333,,,,,,,,,,,,,,,,,,,,666666666666666666668888888888888888888822222222222222222222 4444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,777777777777777777771111111111111111111155555555555555555555 3 Foreign public borrowers 22222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999991111111111111111111199999999999999999999 33333333333333333333,,,,,,,,,,,,,,,,,,,,555555555555555555558888888888888888888899999999999999999999 4 All other foreigners.... 4444444444444444444400000000000000000000,,,,,,,,,,,,,,,,,,,,777777777777777777776666666666666666666633333333333333333333 4444444444444444444411111111111111111111,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222266666666666666666666 5 Maturity of over 1 year1 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444455555555555555555555 1111111111111111111122222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999995555555555555555555533333333333333333333 6 Foreign public borrowers. . . 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111116666666666666666666622222222222222222222 33333333333333333333,,,,,,,,,,,,,,,,,,,,999999999999999999995555555555555555555500000000000000000000 7 All other foreigners... . 88888888888888888888,,,,,,,,,,,,,,,,,,,,222222222222222222228888888888888888888833333333333333333333 99999999999999999999,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000033333333333333333333 By area: Maturity of 1 year or less1 8 Europe 99999999999999999999,,,,,,,,,,,,,,,,,,,,555555555555555555553333333333333333333322222222222222222222 99999999999999999999,,,,,,,,,,,,,,,,,,,,888888888888888888883333333333333333333311111111111111111111 9 Canada 11111111111111111111,,,,,,,,,,,,,,,,,,,,666666666666666666661111111111111111111155555555555555555555 11111111111111111111,,,,,,,,,,,,,,,,,,,,999999999999999999992222222222222222222200000000000000000000 10 Latin America and Caribbean 1111111111111111111177777777777777777777,,,,,,,,,,,,,,,,,,,,000000000000000000003333333333333333333366666666666666666666 1111111111111111111188888888888888888888,,,,,,,,,,,,,,,,,,,,444444444444444444442222222222222222222288888888888888888888 11 Asia 1111111111111111111133333333333333333333,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111155555555555555555555 1111111111111111111122222222222222222222,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111199999999999999999999 12 Africa 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444446666666666666666666611111111111111111111 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444449999999999999999999922222222222222222222 13 All other2 555555555555555555552222222222222222222233333333333333333333 555555555555555555552222222222222222222255555555555555555555 Maturity of over 1 year1 14 Europe 22222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999997777777777777777777799999999999999999999 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222244444444444444444444 15 Canada 333333333333333333333333333333333333333300000000000000000000 777777777777777777778888888888888888888877777777777777777777 16 Latin America and Caribbean 55555555555555555555,,,,,,,,,,,,,,,,,,,,999999999999999999997777777777777777777799999999999999999999 66666666666666666666,,,,,,,,,,,,,,,,,,,,999999999999999999993333333333333333333311111111111111111111 17 Asia 11111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222228888888888888888888822222222222222222222 11111111111111111111,,,,,,,,,,,,,,,,,,,,333333333333333333331111111111111111111122222222222222222222 18 Africa 666666666666666666662222222222222222222299999999999999999999 555555555555555555557777777777777777777788888888888888888888 19 All other2 222222222222222222224444444444444444444477777777777777777777 222222222222222222222222222222222222222200000000000000000000 1 Remaining time to maturity. A The first available data are for June 1978. For a description of the 2 Includes nonmonetary international and regional organizations. changes in the International Statistics 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 45 ClOaimthesr cr»lafi mhsa nks' dnmestir rn«tnm<>rs2 607 802 731 1,245 1,415 1,432 1,422 1,435 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 • November 1978 3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1978 1978 Country or area 1976 1977 S J e a p n t . . - f Mar. Apr. May June July Aug.P Sept.f Holdings (end of period) • 1 Estimated total... 15,799 38,620 41,230 39,662 39,367 40,707 41,198 41,623 42,262 2 Foreign countries. 12,765 33,874 36,475 34,813 34,345 35,014 36,356 37,169 37,875 Europe 2,330 13,916 15,206 13,607 12,946 13,156 14,276 14,204 14,739 Belgium-Luxembourg.. 14 19 19 19 19 19 19 19 19 Germany 764 3,168 3,816 3,820 4,031 4,361 5,531 5,761 6,157 Netherlands 288 911 1,029 1,079 1,070 1,113 1,113 1,278 1,306 Sweden 191 100 155 175 175 185 200 210 211 Switzerland 261 All 400 443 447 509 569 615 674 9 United Kingdom 485 8,888 9,418 7,737 6,856 6,597 6,473 5,932 5,979 10 Other Western Europe. 323 349 363 r333 r348 >-371 370 338877 339933 11 Eastern Europe 4 4 4 r r r 12 Canada. 256 288 251 253 261 264 275 276 276 13 Latin America and Caribbean 313 551 551 535 503 494 485 545 445 14 Venezuela 149 199 200 189 174 174 174 244 144 15 Other Latin American and Caribbean. 47 183 189 184 167 158 149 139 139 16 Netherlands Antilles 118 170 162 162 162 162 162 162 162 17 Asia 9,323 18,745 20,120 20,070 20,137 20,605 20,831 21,647 21,919 18 Japan 2,687 6,860 8,313 8,332 8,964 9,616 9,927 10,791 11,096 19 Africa 543 362 341 341 491 491 491 491 491 20 All other. * 11 6 6 8 4 -3 7 5 21 Nonmonetary international and regional organizations 3,034 4,746 4,755 4,849 5,022 5,694 4,842 4,453 4,387 22 International 2,906 4,646 4,640 4,740 4,931 5,633 4,809 4,421 4,387 23 Latin American regional. 128 100 115 110 90 61 33 33 0 Transactions (net purchases, or sales (—), during period) 24 Total 8,096 22,823 3,641 851 -1,569 -295 1,341 490 425 639 25 Foreign countries 5,393 21,110 4,000 996 -1,664 -467 669 1,342 813 706 26 Official institutions r5,119 20,328 3,476 975 -1,690 r —566 592 1,313 710 704 27 Other foreign r274 782 525 22 26 '98 77 29 103 3 28 Nonmonetary international and regional organizations 2,704 1,713 -359 -145 95 171 671 -852 -387 -67 MEMO: Oil-exporting countries 29 Middle East * 3,887 4,451 -1,020 72 -72 -563 -185 -85 -31 -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 Assets 1975 1976 1977 Apr. May June July Aug. Sept. Oct.P 1 Deposits 353 352 424 481 453 288 347 309 325 305 Assets held in custody: 2 U.S. Treasury securities1 60,019 66,532 91,962 102,044 100,146 99,465 101,696 102,902 102,699 107,934 3 Earmarked gold2 16,745 16,414 15,988 15,686 15,667 15,620 15,594 15,572 15,553 15,548 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 S J e a p n t . . - p Mar. Apr. May June July Aug.p Sept.2' U.S. corporate securities Stocks 1 18,227 14,155 15,558 1,413 1,864 2,391 2,035 11,,330055 2,444 2,257 2 Foreign sales 15,475 11,479 13,721 921 1,151 1,963 1,925 1,296 2,678 2,115 3 Net purchases, or sales (—) 2,753 2,676 1,836 492 713 427 110 9 -235 141 4 Foreign countries 2,740 2,661 1,884 510 720 427 131 9 -235 144 5 Europe 336 1,006 1,063 319 508 323 31 -6 -152 -33 6 256 40 89 68 79 -2 -39 -15 9 2 7 Germany 68 291 375 52 125 52 80 17 -54 25 8 Netherlands -199 22 -26 -9 16 9 -18 9 -22 7 9 Switzerland -100 152 -358 7 103 31 -78 -52 -184 -115 10 United Kingdom 340 613 1,018 187 173 229 98 50 110 54 11 Canada 324 65 -91 -3 44 -58 -12 -16 -18 17 12 Latin America and Caribbean 155 127 123 17 37 36 33 -35 48 1 13 Middle East1 1,803 1,390 626 170 97 90 59 69 -134 120 14 Other Asia 119 59 175 5 35 39 23 -5 35 35 15 Africa 7 5 -11 1 -1 -4 -3 1 -12 5 16 -4 8 * * * * * * -1 17 Nonmonetary international and regional organizations 13 15 -48 -19 -7 1 -21 * * -3 Bonds2 18 Foreign purchases 5,529 7,739 5,916 600 312 780 678 1,029 872 611 19 Foreign sales 4,322 3,404 3,949 621 343 333 301 595 490 542 20 Net purchases, or sales (—) 1,207 4,335 1,967 -21 -31 447 377 434 383 69 21 Foreign countries 1,248 4,239 1,820 * -29 449 306 412 330 72 22 Europe 91 2,006 723 -163 -93 41 159 388 137 89 23 39 -34 20 5 -4 8 -3 13 6 -2 24 -49 59 131 19 10 21 14 18 38 3 25 -29 72 29 -20 3 -3 -7 11 18 19 26 Switzerland 158 157 -157 -37 -33 -36 5 -74 -20 43 27 United Kingdom 23 1,705 705 -122 -54 75 154 416 89 1 28 Canada 96 141 101 5 13 9 6 14 24 16 29 Latin America and Caribbean 94 64 62 n 1 12 2 -8 17 11 30 Middle East1 1,179 1,695 859 137 33 370 91 135 99 -73 31 Other Asia -165 338 74 9 16 15 48 -116 52 29 32 Africa -25 -6 -1 * * * * * * * 33 Other countries -21 * 3 * 1 1 * * 1 * 34 Nonmonetary international and regional organizations -41 96 147 -20 -2 -1 72 22 53 -3 Foreign securities 35 Stocks, net purchases, or sales (—) -323 -410 389 114 143 -13 -59 10 50 -73 1,937 2,255 2,762 337 404 271 244 333 381 257 37 Foreign sales 2,259 2,665 2,373 223 261 284 303 323 331 330 38 Bonds, net purchases, or sales (—) -8,774 -5,115 -2,921 -526 -501 -39 -648 -291 -196 33 39 Foreign purchases 4,932 8,052 7,869 797 1,169 1,017 1,012 921 982 759 40 Foreign sales 13,706 13,167 10,790 1,322 1,670 1,056 1,659 1,212 1,178 726 41 Net purchases, or sales (—) of stocks and bonds.. -9,097 -5,524 -2,532 -412 -358 -51 -707 -281 -146 -40 42 Foreign countries -7,199 -3,967 -2,483 -263 -428 -67 -752 -283 -150 -74 43 Europe -850 -1,145 -179 116 106 -194 -236 -171 94 -86 44 Canada -5,245 -2,404 -2,282 -177 -807 -80 -420 -146 -161 -41 45 Latin America and Caribbean -3 -80 198 69 120 72 -70 8 -17 -15 46 Asia -733 -73 107 -277 143 131 178 44 54 69 47 Africa 48 2 -165 * 7 * -22 -25 -123 -1 48 Other countries -416 -267 -161 6 2 4 -182 7 3 1 49 Nonmonetary international and regional organizations -1,898 -1,557 -49 -148 70 16 45 2 5 3344 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 • November 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 June Sept. Dec. Mar. June*? June Sept. Dec. Mar. June^ Liabilities to foreigners Claims on foreigners 1 '6,624 '7,315 '7,971 8,448 8,817 '16,352 '15,249 '16,293 18,481 18,293 By type: 2 Payable in dollars '5,909 r6,459 '7,/77 7,564 7,992 '15,192 '14,132 '14,863 16,762 16,711 3 Payable in foreign currencies r715 r857 r801 884 825 ''11,,116600 rrll ,,111177 r1,430 11,,771188 1,582 4 Deposits with banks abroad in reporter's 448 414 620 724 676 5 Other ''771133 ''770033 ''880099 999955 990077 By area or country: 6 Foreign countries '6,454 '7,161 '7,756 8,301 8,685 '16,351 '15,248 '16,291 18,479 18,291 7 Europe '2,253 r2,335 '2,512 2,854 3,028 r5,799 '5,077 '5,797 5,626 5,326 8 Austria '23 '19 21 26 26 26 24 24 21 28 9 Belgium-Luxembourg '151 '126 '116 171 167 '212 226 211 187 155 10 14 16 14 23 22 40 44 56 47 40 11 Finland 10 11 9 12 9 90 59 13 13 53 12 France '156 '170 '238 273 323 413 430 513 545 543 13 Germany 163 226 284 335 355 377 393 453 411 419 14 Greece 73 78 85 108 82 86 52 41 42 40 15 Italy 138 107 128 104 156 440 352 387 382 459 16 Netherlands '212 '180 '232 253 221 182 161 166 184 187 17 Norway '12 '12 7 9 13 42 38 42 42 47 18 Portugal 20 12 11 7 25 30 34 69 27 54 19 Spain 68 74 77 94 105 322 307 387 408 376 20 Sweden 36 41 28 37 38 92 91 117 117 78 21 Switzerland 236 257 263 229 282 179 146 220 238 296 22 Turkey 21 97 108 93 92 37 32 39 35 29 23 United Kingdom '780 '784 '756 954 976 '3,012 '2,495 '2,825 2,706 2,374 24 Yugoslavia 110 92 90 82 84 28 20 20 24 27 25 Other Western Europe 6 9 10 8 18 15 15 25 33 29 26 U.S.S.R 16 11 24 15 19 76 62 55 44 37 27 Other Eastern Europe 10 14 12 23 18 102 96 135 121 56 28 Canada 448 451 504 530 524 '2,709 r2,649 '2,682 3,429 3,486 29 Latin America ' 1,028 '1,035 ' 1,186 1,352 1,419 r5,000 r4,619 r4,491 5,895 6,067 30 Argentina 50 50 40 53 74 51 53 53 53 61 31 Bahamas '223 '229 '308 310 307 '2,309 '1,963 '2,028 3,108 3,108 32 Brazil 37 76 49 62 78 457 414 517 499 494 33 Chile 24 13 17 14 23 28 40 45 40 37 34 Colombia 22 24 42 26 27 72 85 84 80 79 35 Cuba * * * * * * * * * * 36 Mexico 120 103 114 169 185 301 302 314 312 331 37 Panama 11 12 22 12 71 121 222 91 175 97 38 Peru 21 13 15 22 17 28 30 32 30 30 39 Uruguay 3 4 3 5 9 5 5 5 6 4 40 Venezuela 208 225 222 280 197 >"237 '251 '269 306 311 41 Other Latin American republics 141 122 118 107 101 237 257 281 268 235 42 17 9 25 41 30 8 8 12 24 19 43 Other Latin America 151 154 209 250 299 1,146 989 '759 994 1,261 44 r2,017 ''22,,664400 rr22,,887711 2,850 3,000 r2,323 2,403 '2,782 2,976 2,836 45 China, People's Republic of (Mainland).... 2 11 88 1 11 7 12 9 22 21 46 China, Republic of (Taiwan) 138 152 156 167 117700 131 139 157 144 173 47 Hong Kong 27 25 40 32 29 93 73 98 85 93 48 India 41 44 37 26 11 51 42 38 85 93 49 Indonesia 80 60 56 57 59 184 185 375 185 153 50 Israel 45 58 63 68 59 70 46 38 47 43 51 Japan 183 604 695 761 799 927 1,026 1,068 1,379 1,157 52 Korea '88 '75 '103 99 107 158 153 171 133 170 53 Philippines 73 78 74 95 107 90 111 99 94 94 54 Thailand 11 17 17 11 27 22 24 23 32 30 55 Other Asia '1,329 '1,526 '1,623 1,535 1,631 '591 590 '708 770 808 56 Africa '509 r588 '597 612 603 370 346 393 408 433 57 Egypt 33 45 13 19 25 24 22 38 33 38 58 Morocco 72 105 112 130 148 11 10 21 22 16 59 South Africa 27 29 20 30 39 69 75 75 71 85 60 Zaire 39 48 46 55 57 17 19 15 11 16 61 Other Africa '438 '361 '400 378 335 248 221 245 271 279 62 Other countries 98 111 93 104 777 149 153 146 145 144 63 Australia 78 93 75 89 97 no 113 111 111 109 64 All other 20 18 18 14 14 40 41 35 34 34 65 Nonmonetary international and regional organizations 117700 115544 221155 114477 113322 1 1 11 11 2 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 TTyyppee aanndd ccoouunnttrryy 11997744 11997755 11997766rr 11997777 rr Mar.' Apr.' May ' June July Aug.f 1 3,357 3,799 5,720 7,179 9,234 9,306 9,679 8,912 8,924 10,092 By type: 2 Payable in dollars 2,660 3,042 4,984 66,,115588 8,002 8,090 8,534 7,771 7,639 8,804 3 Deposits 2,591 2,710 4,505 5,740 7,367 7,367 7,897 7,218 7,156 8,243 4 Short-term investments 1 69 332 479 418 635 723 637 553 483 561 5 Payable in foreign currencies 697 757 735 1,021 1,233 1,216 1,145 1,142 1,285 1,289 6 Deposits 429 511 404 553 663 645 544 599 669 669 7 Short-term investments 1 268 246 331 468 570 571 601 543 616 620 By country: 8 United Kingdom 1,350 1,306 11,,883388 22,,114444 1,978 1,817 1,660 1,683 1,861 1,839 9 967 1,156 1,698 1,777 2,536 2,810 2,866 2,547 2,513 3,008 10 391 546 1,355 1,904 2,990 3,025 3,612 2,975 3,222 3,541 11 Japan 398 343 133 153 416 318 266 273 286 292 12 All other 252 446 716 1,201 1,314 1,336 1,275 1,435 1,042 8,680 i Negotiable and other readily transferable foreign obligations payable NOTE.—Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 3.26. 3.25 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 June Sept. Dec. Mar. June? June Sept. Dec. Mar. June? Liabilities to foreigners Claims on foreigners 1 Total r3,358 '3,388 '3,259 '3,234 3,158 '4,914 '4,715 '5,073 '5,140 5,060 2 Europe '2,504 '2,602 '2,499 '2,571 2,494 '901 '829 '860 '935 936 3 Germany 370 407 255 295 282 76 76 70 73 65 4 Netherlands 262 272 '287 '292 266 147 81 82 81 76 5 Switzerland 177 224 241 241 236 43 42 49 48 55 6 United Kingdom 1,277 '1,295 '1,276 '1,284 1,270 283 282 310 332 363 7 Canada 79 76 71 67 66 1,486 1,462 1,776 1,792 1,811 8 Latin America r297 '289 '284 '250 250 '1,452 '1,367 '1,402 1,387 1,298 9 Bahamas r160 '151 '148 '142 141 34 36 40 42 2 10 Brazil 7 7 7 6 7 125 134 144 154 143 11 Chile 1 1 1 1 1 208 201 203 194 190 12 Mexico 26 30 30 30 28 178 187 177 183 188 13 Asia 408 358 342 284 286 '851 '829 '817 '810 803 14 Japan 386 319 305 250 251 111 94 66 83 78 3 3 2 2 2 158 165 161 156 154 16 All other1 67 59 60 60 60 67 63 59 60 59 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • November 1978 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on Oct. 31, 1978 Rate on Oct. 31, 1978 Rate on Oct. 31, 1978 Country Country Country Per Month Per Month Per Month cent effective cent effective cent effective Argentina 18.0 Feb. 1972 France 9.5 Aug. 1977 7.0 Feb. 1978 Austria... 4.5 June 1978 Germany, Fed. Rep. of. 3.0 Dec. 1977 6.5 July 1978 Belgium. . 6.0 July 1978 Italy 10.5 Sept. 1978 1.0 Feb. 1978 Brazil 33.6 July 1978 Japan 3.5 Mar. 1978 United Kingdom 10.0 June 1978 Canada.. 10.25 Oct. 1978 Mexico 4.5 June 1942 5.0 Oct. 1970 Denmark. 8.0 July 1977 Netherlands 6.5 Oct. 1978 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 May June July Aug. Sept. Oct. 1 Euro-dollars 7.02 5.58 6.03 7.82 8.33 8.52 8.48 9.12 10.12 2 United Kingdom 10.63 11.35 8.07 9.17 10.02 10.13 9.42 9.29 10.44 3 Canada 8.00 9.39 7.47 8.01 8.12 8.23 8.77 9.08 9.68 4 Germany 4.87 4.19 4.30 3.60 3.61 3.71 3.64 3.67 3.90 5 Switzerland 3.01 1.45 2.56 1.18 1.38 1.74 0.67 0.58 0.24 6 Netherlands 5.17 7.02 4.73 4.48 4.60 5.61 6.27 6.91 11.23 7 France 7.91 8.65 9.20 8.21 7.94 7.61 7.39 7.40 7.37 8 Italy 10.37 16.32 14.26 11.80 11.75 11.75 11.75 10.94 10.99 6.63 10.25 6.95 5.71 5.61 5.84 7.09 7.24 8.55 10 Japan 11.64 7.70 6.22 4.50 4.75 4.75 4.64 4.51 4.44 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 May June July Aug. Sept. Oct. 1 Australia/dollar 130.77 122.15 110.82 112.76 113.83 114.94 115.41 115.29 116.87 2 Austria/shilling 5.7467 5.5744 6.0494 6.6031 6.6718 6.7547 6.9490 7.0102 7.4526 3 Belgium/franc 2.7253 2.5921 2.7911 3.0463 3.0590 3.0864 3.1834 3.2207 3.4503 4 Canada/dollar 98.30 101.41 94.112 89.397 89.143 88.921 87.690 85.739 84.546 5 Denmark/krone 17.437 16.546 16.658 17.535 17.723 17.846 18.171 18.411 19.584 6 Finland/markka 27.285 25.938 24.913 23.430 23.390 23.809 24.381 24.586 25.454 7 France/franc 23.354 20.942 20.344 21.513 21.841 22.531 22.998 22.909 23.767 8 Germany/deutsche mark... 40.729 39.737 43.079 47.497 47.984 48.647 50.084 50.778 54.430 9 India/rupee 11.926 11.148 11.406 11.653 11.900 12.245 12.483 12.445 12.643 10 Ireland/pound 222.16 180.48 174.49 181.81 183.72 189.49 194.06 195.95 200.75 11 Italy/lira .15328 .12044 .11328 .11488 .11634 .11804 .11952 .12050 .12317 12 Japan/yen .33705 .33741 .37342 .44215 .46744 .50101 .53002 .52656 .54478 13 Malaysia/ringgit 41.753 39.340 40.620 41.462 41.964 42.447 43.433 43.603 45.627 14 Mexico/peso 8.0000 6.9161 4.4239 4.3973 4.3840 4.3756 4.3758 4.3907 4.3904 15 Netherlands/guilder 39.632 37.846 40.752 44.407 44.716 45.076 46.203 46.733 50.017 16 New Zealand/dollar 121.16 99.115 96.893 100.69 101.90 103.85 105.42 105.58 107.37 17 Norway/krone 19.180 18.327 18.789 18.360 18.450 18.524 19.018 19.189 20.325 18 Portugal/escudo 3.9286 3.3159 2.6234 2.2208 2.1857 2.1939 2.2042 2.1948 2.2342 19 South Africa/rand 136.47 114.85 114.99 115.01 114.93 115.00 115.00 115.00 115.00 20 Spain/peseta 1.7424 1.4958 1.3287 1.2317 1.2587 1.2885 1.3344 1.3605 1.4317 21 Sri Lanka/rupee 14.385 11.908 11.964 6.2945 6.2859 6.3245 6.3926 6.3855 6.3757 22 Sweden/krona 24.141 22.957 22.383 21.491 21.690 22.012 22.523 22.592 23.349 23 Switzerland/franc 38.743 40.013 41.714 50.892 53.046 55.443 60.013 63.765 65.117 24 United Kingdom/pound... 222.16 180.48 174.49 181.81 183.72 189.49 194.06 195.95 200.75 MEMO: 25 United States/dollar* '98.34 '105.57 '103.31 '96.31 '94.74 92.44 89.99 89.51 86.04 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

69 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 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 expressed in percentages). IPC's Individuals, partnerships, and corporations GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) as well as direct obligations of the Treasury. "State a negative figure, or (3) an outflow. and local government" also includes municipalities, "U.S. Government securities" may include guaran- special districts, and other political subdivisions. teed issues of U.S. Government agencies (the flow of In some of the tables details do not add to totals funds figures also include not fully guaranteed issues) 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

70 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 NORM AND 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 FREDERICK M. STRUBLE, Assistant Research Division NATHANIEL E. BUTLER, Associate Director Officer JERAULD C. KLUCKMAN, Associate Director 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 -{-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. GEMMILL, 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

71 and Official Staff J. CHARLES PARTEE NANCY H. TEETERS OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES JOHN M. DENKLER, Staff Director WILLIAM H. WALLACE, Staff Director ROBERT J. LAWRENCE, Deputy Staff Director DONALD E. ANDERSON, Assistant Director for DIVISION OF FEDERAL RESERVE Construction Management BANK EXAMINATIONS AND BUDGETS JOSEPH W. DANIELS, SR., Assistant Director and 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 DIVISION OF ROBERT J. ZEMEL, Assistant Director 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

72 Federal Reserve Bulletin • November 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 J. CHARLES PARTEE MARK H. WILLES DAVID P. EASTBURN NANCY H. TEETERS WILLIS J. WINN 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. STERN LIGHT, 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 Albert 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 Thomas E. Gainor 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 Fed- to one address, $.40 each. PART 1. 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. OPEN MARKET POLICIES AND OPERATING PROCE- FEDERAL RESERVE MONTHLY CHART BOOK. Subscrip- DURES—STAFF STUDIES. 1971. 218 pp. $2.00 tion includes one issue of Historical Chart Book. each; 10 or more to one address, $1.75 each. $12.00 per year or $1.25 each in the United States, REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT its possessions, Canada, and Mexico; 10 or more MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. of same issue to one address, $1.00 each. Else- 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; where, $15.00 per year or $1.50 each. 10 or more to one address, $2.50 each. HISTORICAL CHART BOOK. Issued annually in Sept. THE ECONOMETRICS OF PRICE DETERMINATION CON- Subscription to Monthly Chart Book includes one FERENCE, October 30-31, 1970, Washington, D.C. issue. $1.25 each in the United States, its posses- 1972. 397 pp. Cloth ed. $5.00 each; 10 or more sions, Canada, and Mexico; 10 or more to one to one address, $4.50 each. Paper ed. $4.00 each; address, $1.00 each. Elsewhere, $1.50 each. 10 or more to one address, $3.60 each. CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE year or $.40 each in the United States, its posses- FLUCTUATIONS IN HOUSING CONSTRUCTION . sions, Canada, and Mexico; 10 or more of same 1972. 487 pp. $4.00 each; 10 or more to one issue to one address, $13.50 per year or $.35 each. address, $3.60 each. Elsewhere, $20.00 per year or $.50 each. LENDING FUNCTIONS OF THE FEDERAL RESERVE SELECTED INTEREST AND EXCHANGE RATES—WEEKLY BANKS. 1973. 271 pp. $3.50 each; 10 or more SERIES OF CHARTS. Weekly. $15.00 per year or to one address, $3.00 each. $.40 each in the United States, its possessions, IMPROVING THE MONETARY AGGREGATES (Report of the Canada, and Mexico; 10 or more of same issue Advisory Committee on Monetary Statistics). to one address, $13.50 per year or $.35 each. 1976. 43 pp. $1.00 each; 10 or more to one Elsewhere, $20.00 per year or $.50 each. address, $.85 each. THE FEDERAL RESERVE ACT, as amended through De- ANNUAL PERCENTAGE RATE TABLES (Truth in Lendcember 1976, with an appendix containing provi- ing—Regulation Z) Vol. I (Regular Transactions). sions of certain other statutes affecting the Federal 1969. 100 pp. Vol. II (Irregular Transactions). Reserve System. 307 pp. $2.50. 1969. 116 pp. Each volume $1.00, 10 or more REGULATIONS OF THE BOARD OF GOVERNORS OF THE of same volume to one address, $.85 each. FEDERAL RESERVE SYSTEM FEDERAL RESERVE MEASURES OF CAPACITY AND CA- PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- PACITY UTILIZATION. 44 pp. $1.75 each, 10 or ERNORS, as of June 30, 1977. $7.50. more to one address, $1.50 each. INDUSTRIAL PRODUCTION—1976 EDITION. 1977. 304 THE BANK HOLDING COMPANY MOVEMENT TO 1978: pp. $4.50 each; 10 or more to one address, $4.00 A COMPENDIUM. 289 pp. $2.50 each, 10 or more each. to one address, $2.25 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 (Short pamphlets 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. RECENT DEVELOPMENTS IN U.S. INTERNATIONAL INTEREST RATE CEILINGS AND DISINTERMEDIATION, by TRANSACTIONS. 4/78. Edward F. McKelvey. Sept. 1978. 105 pp. THE FEDERAL BUDGET IN THE 1970'S. 9/78. SUMMARY MEASURES OF THE DOLLAR'S FOREIGN EX- CHANGE VALUE. 10/78. PRINTED IN FULL IN THE BULLETIN SURVEY OF TIME AND SAVINGS DEPOSITS AT ALL COM- Staff Economic Studies shown under "Reprints MERCIAL BANKS, JULY 1978. 11/78. 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-68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 Turnover, 13 BANKERS balances, 16, 18, 20, 21, 22 Discount rates at F.R. Banks (See Interest rates) (See also Foreigners) Discounts and advances by F.R. Banks (See Loans) Banks for cooperatives, 35 Dividends, corporate, 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

177 Federal Reserve Bulletin • November 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 l^LakTaTy Omaha' Kansas City t. Louis Louisvii •tfckgff 5harlotte. \Oklahoma City. [OilmphijJashvilU }sA"gel es iLittle Rock gjrmingIhA ®atlai nta > Dallas® Houston i San Antonio January 1978 * <3 •iilBIIIBil ft ALASKA HAWAII a ^ H HK (-v j 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